PepsiCo Announces Target for 100% Renewable Electricity by 2030

PepsiCo has announced a new target to source 100 percent renewable electricity across all of its company-owned and controlled operations globally by 2030

PepsiCo has announced a new target to source 100 percent renewable electricity across all of its company owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040. With PepsiCo’s scale, the transition has the potential to reduce approximately 2.5 million metric tons of greenhouse gas (GHG) emissions by 2040, the equivalent of taking more than half a million cars off the road for a full year. This announcement builds upon the company’s global efforts to increase its use of renewable energy sources and its transition to renewable electricity in the US, its largest market, announced earlier this year.

“With the devastating effects of climate change being felt around the world, and the global food system under significant strain, accelerated action is needed,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. “We know the responsibility that comes with our size and scale, so transitioning PepsiCo’s global business operations to 100 percent renewable electricity is the right step forward to deliver meaningful impact as we continue to advance our sustainability agenda.”

Early this year, the firm had signed the Business Ambition for 1.5°C pledge, joining other leading companies in committing to set science-based emissions reduction targets in line with limiting global warming to 1.5°C, while also developing a long-term strategy for achieving net-zero emissions by 2050. The company has made significant progress in reducing GHG emissions throughout its value chain – from working with farmers to implement carbon-efficient practices through its global Sustainable Farming Program to operating one of the largest electric fleets in North America.

The conglomerate currently procures renewable electricity in 18 countries, nine of which already meet 100 percent of their electricity demand from renewable sources. With the shift to renewable electricity in the US underway this year, PepsiCo is currently on track to source 56 percent of its electricity through renewable sources globally by the end of 2020.

To achieve 100 percent renewable electricity globally, the firm will employ a diversified portfolio of solutions, including Power Purchase Agreements (PPAs) that will support the development of new projects such as solar and wind farms around the world, as well as through purchased energy certificates that will enable the near-term transition to renewable sources in many geographies. The company will also continue to expand its growing list of onsite wind and solar projects at its facilities around the world.

Recently, global tech giant Google had announced that it has committed to becoming the first company in the world to operate on 24/7 carbon-free energy in all of its data centres and campuses worldwide. A challenge it considers far greater than the traditional approach of matching energy usage with renewable energy, but it is working on getting it done by 2030. The firm is already the largest global corporate buyer of renewable energy, something it was doing to match its electricity consumption since 2016. Now, it is moving to make every hour of consumption powered by renewable energy.