PepsiCo targets 100% renewable electricity for U.S. operations in 2020

PepsiCo,Inc., a multinational corporation, is giving a major push towards sourcing 100% renewable electricity for its direct operations in the U.S. The U.S. is known for being the largest market for food and beverage company, PepsiCo, and accounts for approximately half of its electricity consumption, globally.
The shift to 100% renewable power for PepsiCo's U.S. operations is projected to result in 20% reduction of company-wide direct operations (Scope 1 and 2), GHG (greenhouse gas) emissions in relation to 2015 baseline. This will significantly contribute to the targeted 20% reduction of absolute greenhouse gas emissions by 2030, as compared to 2015 baseline, across the entire value chain.
To reach this goal, the company targets a diversified portfolio of solutions, which include Virtual Power Purchase Agreements (VPPAs) and Power Purchase Agreements (PPAs). These solutions give financial support for taking up new renewable power projects such as wind and solar farms. Other solutions also include renewable energy certificates (RECs), which are credits certified by independent 3rd parties supporting the generation of eco-friendly electricity from renewable sources. In 2020, the company's portfolio of solutions will include more renewable energy certificates. However, by 2025, it will gradually shift towards power purchase agreements and virtual PPAs.
Additionally, PepsiCo focuses on continuously expanding its onsite renewable electricity. According to PepsiCo's chief sustainability officer, Simon Lowden, the company is committed to increasing usage of renewable energy to build a more sustainable food system and encourage systematic change in the United States. In 2018, 76% of electricity required for running PepsiCo Mexico Foods business were generated via wind energy.
PepsiCo recently installed new solar panels in its global headquarters, Purchase, New York, which complements installations of other solar energy throughout the U.S. These include PepsiCo beverage facilities in Fresno, California and Tolleson, Arizona as well as Frito-Lay facilities in Modesto, California and Casa Grande, Arizona, among others.
PepsiCo has expanded its renewable power facility outside the U.S. In 9 European countries where PepsiCo is directly operating, renewable sources are already being used to provide 100% electricity supply.
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