Commercial, Finance, Solar, Sourcing Renewables, Wind - January 15, 2020
PepsiCo plans for 100% renewable energy in 2020
PepsiCo announced Jan. 15 its plan to achieve 100% renewable energy for its U.S. direct operations in 2020 by targeting a portfolio of PPAs, VPPAs, RECs and onsite solar.
The company expects the shift to deliver a 20% reduction in company-wide Scope 1 and 2 emissions, relative to a 2015 baseline, as the U.S. accounts for nearly half of PepsiCo’s total global electricity consumption. It previously set a goal of reducing absolute greenhouse gas emissions across its global value chain by 20% by 2030, against a 2015 baseline.
"We have entered a decade that will be critical for the future of our planet's health," Ramon Laguarta, Chairman and Chief Executive Officer of PepsiCo, said in a statement. "PepsiCo is pursuing 100% renewable electricity in the U.S. because the severe threat that climate change poses to the world demands faster and bolder action from all of us."
The first phase of the project will focus on acquiring RECs in 2020, followed by more PPAs and VPPAs by 2025.
Nine companies in PepsiCo’s European direct operations already meet 100% of their electricity demand from renewable sources. In 2018, 76% of the electricity needs of the PepsiCo Mexico Foods business came from wind energy.
The beverage and snack manufacturer recently installed solar panels at its global headquarters in Purchase, N.Y., in addition to the project already completed at Frito-Lay facilities in Modesto, Calif., and Casa Grande, Ariz.,, and PepsiCo beverage facilities in Fresno, Calif., and Tolleson, Ariz., among others.
In October, PepsiCo announced its first-ever Green Bond, a $1 billion initiative that will fund a series of sustainability projects.