Kellogg Company to Achieve Over 50% Renewable Electricity Globally by the End of 2022

Rhea-AI Summary

Kellogg announced a significant step towards sustainability, achieving over 50% renewable energy for its global manufacturing by the end of 2022. This is facilitated by a virtual power purchase agreement (VPPA) with Enel Green Power for 360 GWh of wind electricity annually. The initiative aligns with Kellogg's goal to reduce greenhouse gas emissions by 65% and achieve 100% renewable electricity by 2050. The VPPA is expected to avoid 250,000 metric tons of CO2 emissions annually, supporting Kellogg's robust commitment to corporate sustainability and addressing climate change.

Positive

• Achieving over 50% renewable energy for global manufacturing by the end of 2022.
• Signed a VPPA with Enel Green Power for approximately 360 GWh of wind electricity annually.
• Expected annual CO2 emissions reduction of 250,000 metric tons, equivalent to removing approximately 55,000 vehicles from roads.
• Alignment with long-term sustainability goals, aiming for 100% renewable electricity by 2050.

Negative

• None.

BATTLE CREEK, Mich., March 3, 2021 /PRNewswire/ -- Kellogg announced today that the company will achieve over 50% renewable energy to address the electricity needs of its owned manufacturing globally by the end of 2022. The company signed a long-term wind energy virtual power purchase agreement (VPPA) in North America with Enel Green Power for approximately 360 gigawatt hours (GWh) of wind electricity annually, which is equal to 50% of the volume of electricity used across Kellogg's North American manufacturing facilities.

Kellogg's VPPA portion of the renewable energy generated by the wind farm is equivalent to the amount of electricity it takes to power more than 43,000 homes each year.¹ 

This VPPA progresses Kellogg towards its global Better Days commitments to reduce Scope 1 & 2 greenhouse gas emissions by 65% and to achieve 100% renewable electricity by 2050. Kellogg announced the milestone to investors at the Consumer Analyst Group of New York (CAGNY) conference, underpinning the company's commitment to address corporate responsibility. Kellogg measures greenhouse gas emissions and renewable electricity in accordance with the GHG Protocol.

"Kellogg has been working to reduce its carbon footprint across our value chain for more than a decade," said Amy Senter, Chief Sustainability Officer, Kellogg Company. "Our latest VPPA further demonstrates to investors, stakeholders and our consumers that we are taking action to address climate change."

Kellogg has several renewable energy projects already in place around the world.

• Kellogg's facilities across Western Europe have achieved 100% renewable electricity to address its operations through the purchase of Renewable Energy Certificates (RECs).
• Kellogg Australia operations also achieved 100% renewable electricity through a long-term Power Purchase Agreement.
• Kellogg's LEED® certified Pringles plant in Enstek, Malaysia and its cereal plant in Taloja, India utilize renewable electricity directly from on-site solar panels.
• In North America, Kellogg has purchased Renewable Energy Certificates (RECs) for multiple facilities and offices in several states.
• The company's Kashi office in Solana Beach, California utilizes on-site solar panels for portions of its electricity use.

With the support of Kellogg's VPPA, Enel has started construction of Azure Sky wind in north central Texas, its first wind + storage project globally, that combines a 350 MW wind facility paired with approximately 120 MW of battery storage – one of the largest battery storage facilities in the world. The Azure Sky wind farm will add clean energy resources to the community's local grid and is expected to be operational in 2022.

Kellogg's portion of renewable electricity generated by the wind farm is estimated to avoid 250,000 metric tons of CO2 emissions each year, equivalent to the carbon reduction of removing approximately 55,000 passenger vehicles off of the road annually.²  Kellogg was advised on the VPPA agreement by Schneider Electric Energy & Sustainability Services, who assisted the company in its project selection and negotiations. 

"As our first project to pair wind and storage, and our largest hybrid plant globally, Azure demonstrates Enel's continued commitment to leading the energy transition towards a 100% renewable powered electric grid," said Salvatore Bernabei, CEO of Enel Green Power. "This transition is supported and accelerated by customers, like Kellogg Company, who are placing sustainability at the core of their business."

As the demand for sustainable investing continues to grow, investors more than ever want to know that companies are actively addressing (ESG) issues. S&P Global recently ranked Kellogg's sustainability performance within the top 15% of the food industry, making Kellogg among the highest performing sustainable companies in the world.

To learn more about Kellogg's sustainability efforts, visit KelloggCompany.com.

About Kellogg Company
At Kellogg Company (NYSE: K), our vision is a good and just world where people are not just fed but fulfilled. We are creating better days and a place at the table for everyone through our trusted food brands. Our beloved brands include Pringles®, Cheez-It®, Special K®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®, MorningStar Farms® and more. Net sales in 2020 were approximately $13.8 billion, comprised principally of snacks and convenience foods like cereal, frozen foods, and noodles. As part of our Kellogg's® Better Days purpose platform, we're helping to end hunger and are committed to creating Better Days for 3 billion people by the end of 2030. Visit www.KelloggCompany.com or www.OpenforBreakfast.com.

Forward-Looking Statements
This news release contains "forward-looking statements" about sustainability performance and projects. These statements are made on the basis of the Company's views and assumptions at this time and the Company undertakes no obligation to update these statements unless required by law. This statement is not a guarantee of future performance; and actual events or results may differ materially from this statement. Investors should consult the Company's filings with the Securities and Exchange Commission (including the information set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2019 and the Company's Quarterly Report on Form 10-Q for the quarter ended September 26, 2020) for information about certain factors that could cause such differences. Copies of these filings may be obtained upon request from the Company's Investor Relations department or on the Company's web site at http://www.kelloggcompany.com.

¹ Source: Emissions equivalencies calculated by using The U.S. EPA Greenhouse Gas Equivalencies Calculator, based on national averages. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

² Source: Emissions equivalencies calculated by using The U.S. EPA Greenhouse Gas Equivalencies Calculator, based on national averages. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

View original content to download multimedia:http://www.prnewswire.com/news-releases/kellogg-company-to-achieve-over-50-renewable-electricity-globally-by-the-end-of-2022-301239171.html

SOURCE Kellogg Company

FAQ

What is Kellogg's renewable energy goal for 2022?

Kellogg aims to achieve over 50% renewable energy for its global manufacturing by the end of 2022.

What agreement did Kellogg sign for renewable energy?

Kellogg signed a virtual power purchase agreement (VPPA) with Enel Green Power for 360 GWh of wind electricity annually.

How much CO2 emissions reduction is expected from Kellogg's renewable energy initiatives?

The initiatives are expected to avoid 250,000 metric tons of CO2 emissions each year.

What are Kellogg's long-term sustainability goals?

Kellogg aims to reduce greenhouse gas emissions by 65% and achieve 100% renewable electricity by 2050.

When was the announcement made regarding Kellogg's renewable energy plans?

The announcement was made on March 3, 2021.