PepsiCo plans to source 100% 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.
To achieve the target, PepsiCo 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, as well as through purchased energy certificates.
The company will also continue to expand its growing list of onsite wind and solar projects at its facilities around the world.
For example, PepsiCo’s global headquarters in Purchase, New York, installed rooftop solar energy panels earlier this year.
The drinks giant said the 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.
It said that the transition has the potential to reduce approximately 2.5 million tonnes of greenhouse gas emissions by 2040, the equivalent of taking more than half a million cars off the road for a full year.
PepsiCo currently procures renewable electricity in 18 countries, nine of which already meet 100% of their electricity demand from clean power sources.
With the shift to renewable electricity in the US underway this year, the company is currently on track to source 56% of its electricity through renewable sources globally by the end of 2020.
PepsiCo chief sustainability officer Jim Andrew said: “With the devastating effects of climate change being felt around the world, and the global food system under significant strain, accelerated action is needed.
“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.”
The announcement also means PepsiCo will join the RE100, an initiative led by the Climate Group in partnership with CDP, to bring together the world’s most influential companies committed to 100% renewable electricity.
RE100 head at the Climate Group Sam Kimmins said: “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.
“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.”