PepsiCo Targets 100% Renewable Electricity Globally

Rhea-AI Summary

PepsiCo (NASDAQ:PEP) has announced its commitment to source 100% renewable electricity globally by 2030 for its operations and by 2040 for its franchise and third-party operations. This initiative aims to cut approximately 2.5 million metric tons of greenhouse gas emissions by 2040. Currently, PepsiCo sources renewable electricity in 18 countries, with plans to reach 56% by the end of 2020. The company is part of the RE100 initiative, emphasizing its sustainability efforts while aligning with the Business Ambition for 1.5°C pledge to achieve net-zero emissions by 2050.

Positive

• Target to achieve 100% renewable electricity by 2030 globally and by 2040 for franchises, enhancing sustainability efforts.
• Projected reduction of 2.5 million metric tons of greenhouse gas emissions by 2040.
• Currently sourcing renewable electricity in 18 countries, on track to reach 56% by end of 2020.

Negative

• None.

PURCHASE, N.Y., Sept. 21, 2020 /PRNewswire/ -- PepsiCo Inc. (NASDAQ:PEP) today announced a new target to source 100% renewable electricity across all of its company owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040. With PepsiCo's scale, the transition has the potential to reduce approximately 2.5 million metric tons of greenhouse gas (GHG) emissions by 2040, the equivalent of taking more than half a million cars off the road for a full year. This announcement builds upon the company's global efforts to increase its use of renewable energy sources and its transition to renewable electricity in the U.S., its largest market, announced earlier this year.

"With the devastating effects of climate change being felt around the world, and the global food system under significant strain, accelerated action is needed," said Jim Andrew, Chief Sustainability Officer, PepsiCo. "We know the responsibility that comes with our size and scale, so transitioning PepsiCo's global business operations to 100% renewable electricity is the right step forward to deliver meaningful impact as we continue to advance our sustainability agenda."

Early this year, PepsiCo signed the Business Ambition for 1.5°C pledge, joining other leading companies in committing to set science-based emissions reduction targets in line with limiting global warming to 1.5°C, while also developing a long-term strategy for achieving net-zero emissions by 2050. The company has made significant progress in reducing GHG emissions throughout its value chain - from working with farmers to implement carbon-efficient practices through its global Sustainable Farming Program to operating one of the largest electric fleets in North America.

PepsiCo currently procures renewable electricity in 18 countries, nine of which already meet 100% of their electricity demand from renewable sources. With the shift to renewable electricity in the U.S. underway this year, PepsiCo is currently on track to source 56% of its electricity through renewable sources globally by the end of 2020.

With this announcement, PepsiCo joins RE100, an initiative led by the Climate Group in partnership with CDP, to bring together the world's most influential companies committed to 100% renewable electricity.

"By transforming their global business operations to renewable electricity, PepsiCo is demonstrating a strong commitment to combat climate change, whilst underlining the business case for renewables," said Sam Kimmins, Head of RE100 at the Climate Group. "By investing in development of new solar and wind farms around the world to meet their target, PepsiCo is making a really tangible contribution to accelerating the clean energy transition."

To achieve 100% renewable electricity globally, PepsiCo will employ a diversified portfolio of solutions, including Power Purchase Agreements (PPAs) that will support the development of new projects such as solar and wind farms around the world, as well as through purchased energy certificates that will enable the near-term transition to renewable sources in many geographies. The company will also continue to expand its growing list of onsite wind and solar projects at its facilities around the world. PepsiCo's global headquarters in Purchase, NY installed rooftop solar energy panels earlier this year.

About PepsiCo

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business. For more information, visit www.pepsico.com.

Cautionary Statement

This release contains statements reflecting our views about our future performance that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as "aim," "anticipate," "believe," "drive," "estimate," "expect," "goal," "intend," "may," "plan," "project," "strategy," "target" and "will" or similar statements or variations of such terms and other similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such statements, including the impact of the spread of COVID-19; future changes in demand for PepsiCo's products, as a result of changes in consumer preferences or otherwise; changes in laws related to the use or disposal of plastics or other packaging of PepsiCo's products; changes in, or failure to comply with, applicable laws and regulations; imposition or proposed imposition of new or increased taxes aimed at PepsiCo's products; imposition of labeling or warning requirements on PepsiCo's products; PepsiCo's ability to compete effectively; political conditions, civil unrest or other developments and risks in the markets where PepsiCo's products are made, manufactured, distributed or sold; the ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption; increased costs, disruption of supply or shortages of raw materials and other supplies; water scarcity; business disruptions; damage to PepsiCo's reputation or brand image; loss of, or a significant reduction in sales to, any key customer; disruption to the retail landscape, including rapid growth in the e-commerce channel and hard discounters; climate change, or legal, regulatory or market measures to address climate change; and other factors that may adversely affect the price of PepsiCo's publicly traded securities and financial performance. For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Press Contact: pepsicomediarelations@pepsico.com

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/pepsico-targets-100-renewable-electricity-globally-301134109.html

SOURCE PepsiCo, Inc.

FAQ

What is PepsiCo's renewable electricity target?

PepsiCo aims to source 100% renewable electricity for all its operations by 2030 and for franchise operations by 2040.

How much greenhouse gas emissions will PepsiCo's initiative reduce?

PepsiCo's initiative could reduce approximately 2.5 million metric tons of greenhouse gas emissions by 2040.

In how many countries does PepsiCo currently source renewable electricity?

PepsiCo currently sources renewable electricity in 18 countries.

What percentage of renewable electricity will PepsiCo reach by the end of 2020?

PepsiCo is on track to source 56% of its electricity from renewable sources globally by the end of 2020.

What is the Business Ambition for 1.5°C pledge that PepsiCo signed?

The pledge commits PepsiCo to set science-based emissions reduction targets aligned with limiting global warming to 1.5°C.