PepsiCo is issuing around $1 billion worth of ‘Green Bonds’ to investors, claiming that it will use the proceeds of the bond sale to fund sustainability initiatives in areas such as packaging and transport.
This is the first green bond that the company has issued, and PepsiCo has announced that it plans to invest the proceeds to “advance its sustainability agenda”, in line with sustainability commitments already announced by the company.
According to a statement from the company, this will include an increase in funding to aid the development of packaging such as bio-based PET bottles and compostable and biodegradable snack films.
The company claims that the funding will also enhance its efforts to make its supply chain more sustainable, increasing its ability to fund projects that improve energy efficiency, allow it to replace fossil fuel-powered cars with electric vehicles and train farmers on ways to improve soil health.
Proceeds from the green bond will also be used to fund projects focused on water recycling and reuse and agriculture, to reduce water waste.
In a further sustainability commitment, the company appointed PepsiCo executive Simon Lowden as its new chief sustainability officer. In this role, he will be responsible for the PepsiCo Sustainability Office.
Ramon Laguarta, PepsiCo chairman and CEO said: “PepsiCo is deeply committed to using our scale for good and advancing the purpose behind our sustainability agenda: to help build a more sustainable food system.
“Issuing a bond focused on environmental sustainability reflects our deep commitment to the priorities laid out in our recent Sustainability Report and represents another step in our plan to become a faster, stronger, better company.
Newly-appointed sustainability officer Lowden added: “I am proud PepsiCo has issued its first Green Bond to address global challenges like carbon emissions, access to clean water, and plastic waste, and that the company continues to be a leader in tackling critical sustainability issues.
“I look forward to working with our many stakeholders around the world—including communities, consumers, customers, governments and NGOs—to advance this vital agenda.”
© FoodBev Media Ltd 2019