PepsiCo has announced that its US direct operations will be entirely powered by renewable electricity this year.
The US is the company’s largest market, accounting for half of its total global electricity consumption. It will soon be powered by electricity from renewable sources such as wind and solar.
Efforts in the US follow the company’s progress in switching to renewable electricity around the globe. For example, nine countries in its European direct operations already meet 100% of their electricity demand from renewable sources.
“We have entered a decade that will be critical for the future of our planet’s health,” said Ramon Laguarta, Chairman and CEO of PepsiCo.
“PepsiCo is pursuing 100% 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.”
This year’s shift to renewable electricity is expected to deliver a 20% reduction in company-wide direct operations 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% by 2030 against a 2015 baseline.
To achieve this target in the US, 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.
It will also utilise enewable energy certificates (RECs), which are credits certified by independent third parties that support existing green electricity generation from renewable sources.