USA – PepsiCo has unveiled plans of using 100% renewable energy for its US direct operations this year as part of the company’s progress towards switching to renewable electricity across its global operations.
According to PepsiCo, US is the food and beverage company’s largest market and accounts for nearly half of its total global electricity consumption.
PepsiCo’s noted that shifting to renewable electricity in the US this year is expected to deliver a 20% reduction in company-wide direct operations (Scopes 1 and 2) greenhouse gas (GHG) emissions relative to a 2015 baseline.
This will represent a significant contribution to the company’s goal of reducing absolute GHG 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,” said Ramon Laguarta, Chairman and Chief Executive Officer, PepsiCo.
“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.”
To achieve 100% renewable electricity, the company plans to target a diversified portfolio of solutions.
These include Power Purchase Agreements (PPAs) and Virtual Power Purchase Agreements (VPPAs), which finance the development of new renewable electricity projects such as solar and wind farms.
The company also intends to pursue use of renewable energy certificates (RECs), which are credits certified by independent third parties that support existing green electricity generation from renewable sources.
PepsiCo said that its portfolio will feature more RECs by the close of the year and then will gradually move toward PPAs and VPPAs by 2025.
Alongside these measures, the Lay’s, SunChips, bubly, Gatorade and Pepsi brands owner said that it will continue to expand its onsite renewable electricity.
The company recently installed new solar panels at its global headquarters in Purchase, New York complementing other solar energy installations throughout the country.
These include Frito-Lay facilities in Modesto, California and Casa Grande, Arizona, as well as PepsiCo beverage facilities in Fresno, California and Tolleson, Arizona, among others.
“As an industry leader, we have a responsibility to help spur the use of renewable energy in the U.S., while encouraging the kind of systemic change that can build a more sustainable food system. This is another step forward in that journey,” said Simon Lowden, Chief Sustainability Officer, PepsiCo.
The green power pledge builds upon actions in Europe and Mexico. Currently, nine countries in PepsiCo’s European direct operations already meet 100% of their electricity demand from renewable
The PepsiCo Mexico Foods business delivered 76% of its electricity requirements via wind energy in 2018.