PURCHASE, N.Y., Oct. 7, 2019 /PRNewswire/ -- PepsiCo Inc.
(NASDAQ:PEP) today announced that it has priced the company's first
ever Green Bond. The net proceeds from the US$1 billion Green Bond offering will fund a
series of key initiatives to advance PepsiCo's sustainability
agenda. The company also announced that it has named PepsiCo leader
Simon Lowden as its first Chief
Sustainability Officer. In this new role, effective immediately,
Lowden will be responsible for leading PepsiCo's Sustainability
Office, including the Global Sustainable Plastics team and Global
Sustainable Operations team.
"PepsiCo is deeply committed to using our scale for good and
advancing the purpose behind our sustainability agenda: to help
build a more sustainable food system," said Ramon Laguarta, PepsiCo Chairman and CEO.
"Issuing a bond focused on environmental sustainability reflects
our deep commitment to the priorities laid out in our recent
Sustainability Report and represents another step in our plan to
become a faster, stronger, better company. As Chief Sustainability
Officer, Simon will play a critical role in this effort, and I am
thrilled he has agreed to take on such an important
responsibility."
In September, PepsiCo released its 2018 Sustainability Report,
which outlined six priority areas where the company believes it can
make the best contribution – agriculture, water, packaging,
products, climate and people – along with eight ambitious and
measurable goals. The following eligible categories for the use of
the Green Bonds net proceeds are aligned with these priorities and
the U.N. Sustainable Development Goals (SDGs):
- Sustainable Plastics and Packaging: PepsiCo has a
new target to reduce 35% of virgin plastic content across its
beverage portfolio by 2025. Green Bond proceeds will help reach
this target by funding projects that purchase compostable,
biodegradable and/or recyclable material for use in product
packaging, and by investing in the development of packaging that
includes bio-based PET bottles and compostable and biodegradable
snacks flex films. (SDG 9 – Industry, Innovation and
Infrastructure, and SDG 12 - Responsible Consumption and
Production)
- Decarbonization of Operations and Supply Chain: PepsiCo
has set a goal of reducing absolute greenhouse gas emissions across
its value chain by 20% by 2030, from a 2015 baseline. Green Bond
proceeds will advance this goal by funding projects that improve
energy efficiency, utilize cleaner transportation that replaces
fossil fuel-powered cars with electric vehicles, and train farmers
on ways to improve soil health. (SDG 7 – Affordable and Clean
Energy, and SDG 11 Sustainable Cities and Communities)
- Water Sustainability: By 2025, in high water-risk
areas, PepsiCo aims to replenish 100% of the water it consumes in
its manufacturing operations and improve its operational water-use
efficiency. Green Bond proceeds will support this goal by funding
projects focused on water recycling and reuse, alternative crop
rotation / tree planting, and providing smallholder farmers with
access to drip irrigation and other water-saving technologies.
(SDG 6 - Clean Water and Sanitation, SDG 12 – Responsible
Consumption and Production, and SDG 15 – Life on Land)
"I am proud PepsiCo has issued its first Green Bond to address
global challenges like carbon emissions, access to clean water, and
plastic waste, and that the company continues to be a leader in
tackling critical sustainability issues," said Lowden. "This
offering reflects our commitment to Winning with Purpose and being
part of global solutions by further integrating sustainability into
our business and our brands. I look forward to working with our
many stakeholders around the world—including communities,
consumers, customers, governments and NGOs—to advance this vital
agenda."
Lowden brings a wealth of critical experience and passion to his
new position. In addition to leading PepsiCo's Plastics Council and
spearheading the company's Global Sustainable Plastics agenda for
the past year, he has held numerous leadership positions across
both Foods and Beverages, in North
America and globally, throughout his 23-year career with
PepsiCo. He most recently served as President of the Global Foods
Group, where he oversaw a period of impressive growth. Before
leading the Global Foods Group, Lowden had roles as Chief Marketing
Officer (CMO) of North America Beverages and CMO of PepsiCo
International.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion
times a day in more than 200 countries and territories around the
world. PepsiCo generated more than $64
billion in net revenue in 2018, driven by a complementary
food and beverage portfolio that includes Frito-Lay, Gatorade,
Pepsi-Cola, Quaker, and Tropicana. PepsiCo's product portfolio
includes a wide range of enjoyable foods and beverages, including
22 brands that generate more than $1
billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in
Convenient Foods and Beverages by Winning with Purpose. "Winning
with Purpose" reflects our ambition to win sustainably in the
marketplace and embed purpose into all aspects of the business. For
more information, visit www.pepsico.com.
Cautionary Statement
This release contains statements reflecting our views about our
future performance that constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are generally identified
through the inclusion of words such as "aim," "anticipate,"
"believe," "drive," "estimate," "expect," "goal," "intend," "may,"
"plan," "project," "strategy," "target" and "will" or similar
statements or variations of such terms and other similar
expressions. Forward-looking statements inherently involve risks
and uncertainties that could cause actual results to differ
materially from those predicted in such statements, including
changes in demand for PepsiCo's products, as a result of changes in
consumer preferences or otherwise; changes in laws related to the
use or disposal of plastics or other packaging of PepsiCo's
products; changes in, or failure to comply with, applicable laws
and regulations; imposition or proposed imposition of new or
increased taxes aimed at PepsiCo's products; imposition of labeling
or warning requirements on PepsiCo's products; PepsiCo's ability to
compete effectively; political conditions, civil unrest or other
developments and risks in the markets where PepsiCo's products are
made, manufactured, distributed or sold; the ability to protect
information systems against, or effectively respond to, a
cybersecurity incident or other disruption; increased costs,
disruption of supply or shortages of raw materials and other
supplies; business disruptions; damage to PepsiCo's reputation or
brand image; loss of, or a significant reduction in sales to, any
key customer; disruption to the retail landscape, including rapid
growth in hard discounters and the e-commerce channel; climate
change or water scarcity, or legal, regulatory or market measures
to address climate change or water scarcity; and other factors that
may adversely affect the price of PepsiCo's publicly traded
securities and financial performance. For additional information on
these and other factors that could cause PepsiCo's actual results
to materially differ from those set forth herein, please see
PepsiCo's filings with the Securities and Exchange Commission,
including its most recent annual report on Form 10-K and subsequent
reports on Forms 10-Q and 8-K. Investors are cautioned not to place
undue reliance on any such forward-looking statements, which speak
only as of the date they are made. PepsiCo undertakes no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise.
Contact:
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Carrie
Ratner
|
|
Corporate
Communications
|
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carrie.ratner@pepsico.com
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SOURCE PepsiCo, Inc.