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PepsiCo Pledges 100 Percent Renewable Energy for US Operations in 2020

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PepsiCo, Inc. has announced plans to achieve 100 percent renewable electricity for its U.S. direct operations this year. The U.S. is the food and beverage company's largest market and accounts for nearly half of its total global electricity consumption.
PepsiCo Pledges 100 Percent Renewable Energy for US Operations in 2020
Courtesy of PepsiCo

PepsiCo's efforts in the U.S. build upon its global progress in switching to renewable electricity around the world. For example, nine countries in PepsiCo's European direct operations already meet 100 percent of their electricity demand from renewable sources. Additionally, in 2018, 76 percent 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, chairman and chief executive officer, PepsiCo. "PepsiCo is pursuing 100 percent renewable electricity in the U.S. because the severe threat that climate change poses to the world demands faster and bolder action from all of us."

PepsiCo's shift to renewable electricity in the U.S. this year is expected to deliver a 20 percent 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 percent by 2030 against a 2015 baseline.

"As an industry leader, we have a responsibility to help spur the use of renewable energy in the U.S., 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.

PepsiCo plans to target a diversified portfolio of solutions to reach its 100 percent goal. These include Power Purchase Agreements and Virtual Power Purchase Agreements, 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.

Additionally, the company recently installed solar panels at its global headquarters in Purchase, New York., complementing other solar energy installations throughout the country. These include 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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