PepsiCo releases US$1B net proceeds update in its 2020 Green Bond Report

Image Courtesy: The Insider Story

USA – PepsiCo Inc. recently released its 2020 Green Bond Report, which provides an update on the allocation of the use of net proceeds from its first ever Green Bond, issued in October 2019 for US$1 billion.

The Green Bond’s net proceeds are to be allocated to investments where PepsiCo believes it can make a lasting impact on priorities within its sustainability agenda, including packaging, decarbonization and water, while advancing several of the UN’s Sustainable Development Goals.

The company will spend US$9 million to ensure the efficient use of water in its factories, with a particular focus on its PepsiCo snack plant in Vallejo, Mexico, a high-water-risk location, which implemented new water treatment technologies resulting in 70% water reuse rates.

“We are focused on accelerating our momentum to further align business and purpose and are proud of the progress we’ve made towards building and investing in a more sustainable future,” said Jim Andrew, Chief Sustainability Officer, PepsiCo.

“The Green Bond is one of the many tools we’re using to advance critical steps in our sustainability journey, and it is a significant catalyst for continued progress. Ultimately, that’s what PepsiCo’s Green Bond is all about: action.”

Jim Andrew – Chief Sustainability Officer, PepsiCo

“The Green Bond is one of the many tools we’re using to advance critical steps in our sustainability journey, and it is a significant catalyst for continued progress. Ultimately, that’s what PepsiCo’s Green Bond is all about: action.”

PepsiCo has announced that it has allocated US$447 million from its US$1 billion Green Bond towards making its food system more sustainable.

In the US$447 million, the cola giant will use US$200 million from this amount to procure recycled polyethylene terephthalate (rPET) plastic for its North American beverage packaging unit. The move will help in reducing greenhouse gas emissions by approximately 210,000 metric tonnes.

It will also invest more than US$110 million in facilitating the transition of the company-owned fleet to lower-carbon models.

PepsiCo plans to build a green R&D facility in Valhalla, New York, featuring 681 solar panels among other innovations, which will see an investment of US$98 million.

The proceeds from the bond support projects are aimed at advancing the company’s sustainability targets, of which several are in line with the UN’s Sustainable Development Goals.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.