PURCHASE, NY. — PepsiCo, Inc. has put nearly $450 million of its $1 billion Green Bond to use in support of packaging, decarbonization and water, the company announced on Oct. 13. Funds also have been allocated toward advancing several of the UN’s Sustainable Development Goals, PepsiCo said.
The company’s first-ever Green Bond was issued in October 2019. At that time, PepsiCo said net proceeds of the $1 billion fund would be allocated to investments where the company believes it can make a lasting impact on priorities within its sustainability agenda.
“We are focused on accelerating our momentum to further align business and purpose, and are proud of the progress we’ve made toward building and investing in a more sustainable future,” said James P. Andrew, chief sustainability officer at PepsiCo. “The Green Bond is one of the many tools we’re using to advance critical steps in our sustainability journey, and it is a significant catalyst for continued progress. Ultimately, that’s what PepsiCo’s Green Bond is all about: action.”
PepsiCo said that as of Dec. 31, 2019, $447 million of the net proceeds from the Green Bond have been allocated, highlights from these allocations include:
- Approximately $200 million to procure recycled polyethylene terephthalate (rPET) plastic for the company’s North American beverage packaging, avoiding approximately 210,000 tonnes of greenhouse gas emissions;
- More than $110 million to help transition the company-owned fleet to lower-carbon models;
- $98 million to build a green R&D facility in Valhalla, NY, featuring 681 solar panels, among other innovations; and
- $9 million to improve water-use efficiency in the company’s plants, including a project at a PepsiCo snack plant in Vallejo, Mexico, a high-water-risk location, which implemented new water treatment technologies resulting in 70% water reuse rates.
“We are incredibly proud that we’re among the first corporations in the food and beverage industry to issue a green bond, and we’re excited about accelerating our momentum to further align business and purpose,” Mr. Andrew said. “This alignment has taken on new importance over the past year, as society has endured challenges that were previously unthinkable.
“Through it all, we have continued advancing the important work to help make PepsiCo a better company by integrating sustainability even more deeply into our business. This includes everything from implementing new agricultural techniques, to using water more efficiently, reducing plastic waste, improving choices across our portfolio, cutting greenhouse gas emissions, and lifting up people and communities. We are making investments in each of these areas, with the recognition that many of the sustainability issues we face are interconnected and need to be addressed holistically.”
More details on the Green Bond are available here.