Global soft drink company PepsiCo has announced a $1 billion green bond to fund a series of key sustainability initiatives. The announcement of the green bond is also said to have prompted Pepsi appoint its first chief sustainability officer (CSO), current company president Simon Lowden as the incumbent for the role.
The CSO will lead the firm’s Global Sustainable Plastics and Operations teams.
The $1 billion green bond will be directed towards six priority areas which have been identified in the company’s 2018 Sustainability Report.
The areas include agriculture, water, packaging, products, climate and people – along with eight ambitious and measurable goals.
The strategic areas are aligned with the UN Sustainable Development Goals.
The funding will be directed towards:
- Sustainable plastics and packaging of which Pepsi has a new target to reduce 35% of virgin plastic content across its beverage portfolio by 2025.
- Decarbonisation of operations and supply chain of which Pepsi has set a goal of reducing greenhouse gas emissions across its value chain by 20% by 2030, from a 2015 baseline. The green bond will fund energy efficiency, cleaner transportation and clean energy projects.
- Water Sustainability will include water efficiency and water recycling initiatives.
Ramon Laguarta, CEO of PepsiCo, 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. As Chief Sustainability Officer, Simon will play a critical role in this effort, and I am thrilled he has agreed to take on such an important responsibility."