PepsiCo plans to source all its electricity in the US from renewable energy by the end of this year.
The food and beverage company said the US is its largest market and accounts for nearly half of its total global electricity consumption.
The company will target a diversified portfolio of solutions, including power purchase agreements (PPAs), virtual PPAs and renewable energy certificates (RECs).
PepsiCo said PPAs will finance the development of new wind and solar farms.
In 2020, PepsiCo’s portfolio will feature more RECs, then will gradually move to PPAs and VPPAs by 2025.
PepsiCo chief executive Ramon Laguarta said: “We have entered a decade that will be critical for the future of our planet’s health.
“PepsiCo is pursuing 100% renewable electricity in the US because the severe threat that climate change poses to the world demands faster and bolder action from all of us.”
The shift to renewable electricity is expected to deliver a 20% reduction in company-wide greenhouse gas emissions from direct operations relative to a 2015 baseline.
PepsiCo chief sustainability officer Simon Lowden said: “As an industry leader, we have a responsibility to help spur the use of renewable energy in the US, while encouraging the kind of systemic change that can build a more sustainable food system. This is another step forward in that journey.”
The company is also expanding its onsite renewable electricity, recently installing new solar panels at its global headquarters in Purchase, New York.
The panels complement other solar energy installations throughout the country, including Frito-Lay facilities in Modesto and Fresno in California, and Casa Grande and Tolleson in Arizona.
PepsiCo’s efforts in the US will build on its global progress in switching to renewable electricity around the world.
For example, nine countries in PepsiCo’s European direct operations already meet 100% of their electricity demand from clean power sources.
In 2018, 76% of the electricity needs of the PepsiCo Mexico Foods business were delivered via wind energy.