The company’s US operations account for nearly half of its global electricity consumption.
PepsiCo – which counts Pepsi, Gatorade, Tropicana and bubly among its brands – expects to see a 20% reduction in US greenhouse gas emissions relative to a 2015 baseline.
It will create a portfolio of 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. These will be alongside renewable energy certificates (RECs), which are independently certified credits that support existing green electricity generation from renewable sources.
In 2020, PepsiCo’s portfolio will use a number of RECs; then gradually shift towards PPAs and VPPAs by 2025.
PepsiCo also continues to expand its onsite renewable electricity: with solar panels recently installed at its global headquarters in Purchase, N.Y. Other solar installations in the US include Frito-Lay facilities in Modesto, CA and Casa Grande, AZ, as well as PepsiCo beverage facilities in Fresno, CA and Tolleson, AZ.
PepsiCo says its efforts in the US build upon commitments elsewhere. Its direct operations in nine European countries already source 100% of their electricity from renewable sources; while 76% of electricity needs in its Mexico Foods business are sourced from 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% 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.”
Across its global business, it has set targets to reduce absolute GHG emissions across its value chain by 20% by 2030.