PepsiCo, Inc. (NASDAQ: PEP) announced Wednesday that it plans to achieve 100% renewable energy use for all of its direct operations in the U.S this year. The U.S is the largest market for the popular food and beverage company, as it accounts for almost half of its total global electricity consumption.
The company explains that its efforts in the U.S are based on progress made on the international arena, as Pepsi has been gradually transitioning to renewable energy around the world. For example, nine countries in PepsiCo's European direct operations already meet 100% of their electricity demand from renewable sources. Additionally, in 2018, 76% of the electricity needs of the PepsiCo Mexico Foods business were delivered via wind energy.
"We have entered a decade that will be critical for the future of our planet's health," said Ramon Laguarta, Chairman and Chief Executive Officer, PepsiCo. "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."
Pepsi provided some data to illustrate what effect the transition to renewable energy in the U.S will have on the Company’s total direct operation. A shift in the U.S this year is projected to result in a 20% reduction in company-wide direct operations greenhouse gas emissions relative to a 2015 baseline. Overall, this will be 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.
"As an industry leader, we have a responsibility to help spur the use of renewable energy in the U.S., while encouraging the kind of systemic change that can build a more sustainable food system. This is another step forward in that journey," said Simon Lowden, Chief Sustainability Officer, PepsiCo.