PepsiCo moves to 100 per cent renewable electricity in the US

PepsiCo is to use 100 per cent renewable electricity for its US direct operations this year. Renewable sources including wind and solar power will be used to make the company’s snacks and beverages – from Lay’s and SunChips to Bubly, Gatorade and Pepsi.

“We have entered a decade that will be critical for the future of our planet’s health,” said Ramon Laguarta, chairman and chief executive of PepsiCo. “PepsiCo is pursuing 100 per cent 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.”

Nine countries in PepsiCo’s European direct operations already meet 100 per cent of their electricity demand from renewable sources. In addition, in 2018, 76 per cent of the electricity needs of the PepsiCo Mexico Foods business were delivered via wind energy.

The move is a significant step towards the company’s goal of reducing absolute greenhouse gas emissions across its global value chain by 20 per cent by 2030 against a 2015 baseline. The US is PepsiCo’s largest market and accounts for nearly half of its total global electricity consumption.

To achieve 100 per cent renewable electricity, PepsiCo plans to target a diversified portfolio of solutions. These include 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.

Alongside these measures, PepsiCo will continue to expand its onsite renewable electricity. For example, the company recently installed new solar panels at its global headquarters in Purchase, New York.