Some of America, and the world’s favourite snacks and beverages – from Lay’s and SunChips to bubly, Gatorade and Pepsi – will soon be made using electricity from renewable sources, such as wind and solar. PepsiCo, Inc. has announced plans to achieve 100% renewable electricity for its US direct operations this year.
The US is the food and beverage company’s largest market and accounts for nearly half of its total global electricity consumption.
PepsiCo’s shift to renewable electricity in the US this year is expected to deliver a 20% reduction in company-wide direct operations (Scopes 1 and 2) greenhouse gas (GHG) emissions relative to a 2015 baseline. This represents a significant contribution to the company’s goal of reducing absolute GHG emissions across its global value chain by 20% by 2030 against a 2015 baseline.
PepsiCo plans to target a diversified portfolio of solutions including Power Purchase Agreements (PPAs) and Virtual Power Purchase Agreements (VPPAs), which finance the development of new renewable electricity projects such as solar and wind farms, as well as renewable energy certificates (RECs), which are credits certified by independent third parties that support existing green electricity generation from renewable sources.
In 2020, PepsiCo’s portfolio will feature more RECs, then will gradually move toward PPAs and VPPAs by 2025.
PepsiCo will continue to expand its onsite renewable electricity. The company recently installed new solar panels at its global headquarters in New York.
PepsiCo’s efforts in the US build upon its global progress in switching to renewable electricity around the world. For example, nine countries in PepsiCo’s European direct operations already met 100% of their electricity demand from renewable sources. Additionally, 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, the CEO of PepsiCo. “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.”
“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, Chief Sustainability Officer, PepsiCo.
The US energy transition is a key focus at DISTRIBUTECH 2021 on March 30 – April 1, 2021 | Orlando, Florida.
Click here to register your attendance and find out how you can contribute to North America’s smart energy future.