Given the size and scale of the beverage and snacks giant – which counts Pepsi-Cola, Tropicana, Gatorade, Frito-Lay and Quaker among its brands – the goal could eliminate around 2.5 million metric tons of greenhouse gas (GHG) emissions by 2040.
This is the equivalent of taking more than half a million cars off the road for a year.
‘Responsibility comes with our size and scale’
Jim Andrew, Chief Sustainability Officer, PepsiCo, 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."
PepsiCo currently procures renewable electricity in 18 countries. Nine of these already meet 100% of electricity demand from renewable sources (Greece, Poland, Belgium, Germany, Italy, the Netherlands, Portugal, Spain and the UK). The company is also aiming to achieve 100% renewable energy for US direct operations this year.
By the end of 2020, PepsiCo will source 56% of its electricity around the world through renewable sources.
To boost the use of renewable energy PepsiCo is using a range of solutions, including Power Purchase Agreements (PPAs) that support development of new projects such as solar and wind farms around the world. It will also use purchased energy certificates for near-term transitions to renewable sources in many geographies.
PepsiCo also has onsite wind and solar projects at its facilities around the world (its global headquarters in Purchase, NY installed rooftop solar energy panels earlier this year).
In announcing its ambitions for 100% renewable energy, PepsiCo joins RE100, an initiative which currently has 255 members committed to the same goal. Other members include Anheuser-Busch InBev (target date 2025), General Mills (target date 2030), Kellogg (target date 2050), Keurig Dr Pepper (100% renewable power by 2025), Mars (target date 2040), Diageo (target date 2030), Carlsberg Group (carbon neutral by 2030) and Coca-Cola European Partners (target date 2020).
Early this year, PepsiCo signed the Business Ambition for 1.5°C pledge, joining other leading companies in committing to set science-based emissions reduction targets in line with limiting global warming to 1.5°C, while also developing a long-term strategy for achieving net-zero emissions by 2050.
The company says it has made ‘significant progress’ in reducing GHG emissions throughout its value chain - from working with farmers to implement carbon-efficient practices through its global Sustainable Farming Program to operating one of the largest electric fleets in North America.