PURCHASE (dpa-AFX) - PepsiCo said its plans to meet the entire electricity demand for its U.S. direct operations through renewable energy this year. The move is part of the company's efforts to reduce greenhouse gas emissions across its global value chain by 20 percent by 2030.
The company will use electricity from renewable sources, such as wind and solar.
The U.S. is the food and beverage company's largest market and accounts for almost half of its total global electricity consumption.
'PepsiCo is pursuing 100% renewable electricity in the U.S. because the severe threat that climate change poses to the world demands faster and bolder action from all of us,' said Ramon Laguarta, Chairman and Chief Executive Officer of PepsiCo.
PepsiCo expects the shift to renewable energy in the U.S. this year to deliver a 20 percent reduction in company-wide direct operations greenhouse gas or GHG emissions compared to a 2015 baseline.
This will represent a significant contribution to the company's goal of reducing absolute GHG emissions across its global value chain by 20 percent by 2030 against a 2015 baseline, PepsiCo noted.
PepsiCo also said it is progressing in its shift to renewable electricity in its operations around the world. Nine countries in the company's European direct operations already meet their entire electricity demand from renewable sources.
In addition, 76 percent of the electricity needs of the PepsiCo Mexico Foods business in 2018 were met through wind energy.
To achieve 100 percent renewable electricity, PepsiCo plans to enter into power purchase agreements or PPAs and virtual power purchase agreements or VPPAs. These will finance the development of new renewable electricity projects such as solar and wind farms.
PepsiCo will also target renewable energy certificates or RECs. The RECs are credits certified by independent third parties that support existing green electricity generation from renewable sources.
According to PepsiCo, its portfolio in 2020 will feature more RECs, and then gradually move toward PPAs and VPPAs by 2025.
PepsiCo is also continuing to expand its on-site renewable electricity. The company recently installed new solar panels at its global headquarters in Purchase, New York.
The company's other solar energy installations in the U.S. include the Frito-Lay facilities in Modesto, California, and Casa Grande, Arizona, as well as its beverage facilities in Fresno, California and Tolleson, Arizona.
Copyright RTT News/dpa-AFX
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