PepsiCo Launches First-of-Its-Kind Program to Accelerate Adoption of Renewable Energy
PURCHASE, N.Y. — PepsiCo is adding another facet to its PepsiCo Positive (pep+) strategic end-to-end transformation, which aims to put sustainability at the center of how the company creates value and growth, and inspire positive change for the planet and people.
PepsiCo is teaming up with Schneider Electric, a leading global consultant on corporate renewable energy purchasing, to launch pep+ REnew, a new program designed to accelerate adoption of renewable electricity among PepsiCo’s value chain partners.
As part of the company's goal to achieve net-zero emissions by 2040, pep+ REnew is the first value chain partner initiative of its kind in the food and beverage industry.
"The creation of pep+ REnew directly supports our ambitious goal to achieve net-zero emissions across our value chain by 2040," said Jim Andrew, chief sustainability officer at PepsiCo. "Net-zero cannot happen without our value chain partners taking bold climate action. Through pep+ REnew, we will encourage our partners to reduce their Scope 2 emissions through renewable electricity procurement, helping us meet our own Scope 3 goals."
Fifteen of PepsiCo’s markets have already transitioned to renewable electricity — including the United States and Mexico, its first and second largest markets. The company seeks to achieve 100 percent renewable electricity in its direct operations by 2030.
The pep+ REnew program is designed around two chief goals:
- Educate PepsiCo's value chain partners about their renewable electricity choices; and
- Quicken the transition to renewable electricity through aggregate power purchase agreements (PPAs) and other renewable electricity procurement options.
Many small and medium-sized businesses face challenges when trying to participate in the renewable electricity market. Some organizations may not be large enough to participate on their own and may need education on the specific mechanics of renewable electricity transactions or guidance to navigate through the complexities of a PPA. Through pep+ REnew, PepsiCo and Schneider Electric seek to remove these barriers.
PepsiCo is now inviting a broad array of value chain partners to be a part of its first pep+ REnew cohort. Its goal is to finalize the first cohort for an aggregate PPA by the end of 2022.
Schneider Electric's team of renewable electricity experts will facilitate a multi-phase education and project selection process. The program will be powered by Schneider's NEO Network, a global collaboration platform and community designed to accelerate renewable electricity decision-making and decarbonization.
"By creating greater access to large-scale renewable electricity, our partnership with PepsiCo aspires to add more renewable electricity capacity to power grids around the world," said Steve Wilhite, president of Schneider Electric Sustainability Business. "This is a much-needed step as we work toward a net-zero economy and a more sustainable future for all."
Overall, pep+ REnew seeks to accelerate the adoption of renewable electricity and create a more resilient and carbon-efficient food system as part of PepsiCo's pep+ transformation.
Last month, as part of its pep+ journey, the company announced an effort to be Net Water Positive by 2030, aiming to replenish more water than it uses. To date, more than a dozen new programs have been created to advance the company’s water-use efficiency, replenishment and safe water access efforts.
Earlier this year, PepsiCo also announced the creation of a new North American organization dedicated to accelerating efforts both inside and outside the company to address inequalities for historically excluded people and underserved businesses and communities. The company labeled this a critical next step in its Racial Equality Journey and a key pillar of its pep+ transformation.
PepsiCo generated more than $79 billion in net revenue in 2021. Its product portfolio includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, and Quaker.