PepsiCo has announced plans to achieve 100% renewable electricity for its US direct operations this year.
The US is the company’s largest market and accounts for nearly half of its total global electricity consumption.
PepsiCo’s efforts in the US build on its progress in switching to renewable electricity around the world. Nine countries in PepsiCo’s European direct operations already meet 100% of their electricity demand from renewable sources. In 2018, 76% of the electricity needs of the PepsiCo Mexico foods business were delivered via wind energy.
“We have entered a decade that will be critical for the future of our planet’s health,” said Ramon Laguarta, PepsiCo CEO.
“PepsiCo is pursuing 100% renewable electricity in the US because the severe threat that climate change poses to the world demands faster and bolder action from all of us.”
The company’s shift to renewable electricity in the US this year is expected to deliver a 20% reduction in company-wide direct operations greenhouse gas emissions (GHG) relative to a 2015 baseline. The business said this represents “a significant contribution” to its goal of reducing absolute GHG emissions across its global value chain by 20% by 2030 against a 2015 baseline.
“As an industry leader, we have a responsibility to help spur the use of renewable energy in the US, 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, PepsiCo chief sustainability officer.
To achieve 100% renewable electricity, PepsiCo plans to secure a range of power purchase agreements and virtual power purchase agreements, which will finance the development of new renewable electricity projects such as solar and wind farms.
PepsiCo recently installed new solar panels at its global headquarters in Purchase, New York, complementing other solar energy installations throughout the country, including Frito-Lay facilities in Modesto, California, and Casa Grande, Arizona, as well as PepsiCo beverage facilities in Fresno, California, and Tolleson, Arizona, among others.
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