PepsiCo has given itself until 2030 to complete a goal of transitioning to 100% renewable electricity across all of its company owned and controlled operations.
The move is an accelerated action, according to Jim Andrew, PepsiCo’s chief sustainability officer, because there are “devastating effects of climate change being felt around the world and the global food system is under significant strain.”
The goal of sourcing 100% renewable electricity by 2030 applies to company owned and controlled operations while a similar goal has been set for 2040 across PepsiCo’s entire franchise and third-party operations. The $67 billion company currently procures renewable electricity in 18 countries, nine of which already meet 100% of their electricity demand from renewable sources. With the shift to renewable electricity in the U.S. underway this year, PepsiCo is currently on track to source 56% of its electricity through renewable sources globally by the end of 2020.
"We know the responsibility that comes with our size and scale, so transitioning PepsiCo's global business operations to 100% renewable electricity is the right step forward to deliver meaningful impact as we continue to advance our sustainability agenda,” Andrew said.
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. The new goals follow the company’s announcement earlier this year to increase its use of renewable energy sources and its transition to renewable electricity in the U.S.
To achieve 100% renewable electricity globally, PepsiCo plans to 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 onsite wind and solar projects at its facilities around the world, such as the installation of solar panels on the roof of its global headquarters in Purchase, NY earlier this year.
Also earlier this year, PepsiCo signed the Business Ambition for 1.5°C pledge, joining other 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.
"By transforming their global business operations to renewable electricity, PepsiCo is demonstrating a strong commitment to combat climate change, whilst underlining the business case for renewables," said Sam Kimmins, Head of RE100 at the Climate Group. "By investing in development of new solar and wind farms around the world to meet their target, PepsiCo is making a really tangible contribution to accelerating the clean energy transition."