PepsiCo unveils new goal to supply 100% renewable electrical energy globally
PepsiCo will deploy a diversified portfolio of solutions, including Power Purchase Agreements (PPAs) that support the development of new projects such as solar and wind parks around the world
PepsiCo Inc. has announced a new goal of purchasing 100% renewable electricity by 2030 in all company-owned and controlled operations worldwide as well as in all franchise and third-party operations by 2040.
Using the PepsiCo scale, the transition has the potential to reduce around 2.5 million tons of greenhouse gas (GHG) emissions by 2040, which is the equivalent of more than half a million cars for a full year. This announcement builds on the company's global efforts to expand the use of renewable energy sources and the transition to renewable electricity in the US, its largest market, announced earlier this year.
"With the devastating effects of climate change around the world and the significant strain on the global food system, accelerated action is needed," said Jim Andrew, PepsiCo's chief sustainability officer. "We understand the responsibility that comes with our size and scale, so transforming PepsiCo's global operations to 100% renewable electricity is the right step forward to have a meaningful impact as we continue to advance our sustainability agenda."
Earlier this year, PepsiCo signed the Business Ambition for 1.5 ° C and, along with other leading companies, pledged to set science-based emission reduction targets to keep global warming below 1.5 ° C, while developing a long-term strategy to achieve them Targets for net zero emissions by 2050.
The company has made significant strides in reducing greenhouse gas emissions across its value chain – from working with farmers to implement carbon efficient practices as part of its global sustainable agriculture program to operating one of the largest electric fleets in North America.
PepsiCo currently sources renewable electricity in 18 countries, nine of which already meet 100% of their electricity needs from renewable sources. With the move to renewable power in the US this year, PepsiCo is currently well on its way to getting 56% of its electricity globally from renewable sources by the end of 2020.
With this announcement, PepsiCo joins RE100, an initiative by the Climate Group in partnership with CDP to bring together the world's most influential companies that are 100% committed to renewable electricity.
"By moving its global business to renewable electricity, PepsiCo shows a strong commitment to fighting climate change while underlining its business model for renewable energy," said Sam Kimmins, head of RE100 at The Climate Group. "By investing in the development of new solar and wind farms around the world to achieve their goal, PepsiCo is making a tangible contribution to accelerating the clean energy transition."
To achieve 100% renewable electricity globally, PepsiCo will deploy a diversified portfolio of solutions, including Power Purchase Agreements (PPAs) that support the development of new projects such as solar and wind parks around the world, as well as energy certificates acquired to facilitate the short-term transition to enable renewable sources in many regions.
The company will also continue to expand its growing list of on-site wind and solar projects at its facilities around the world. PepsiCo's global headquarters in Purchase, NY, installed solar panels on the roof earlier this year.