PURCHASE, N.Y., July 20,
2022 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ:
PEP) PepsiCo announced the closing of a new $1.25 billion 10-year Green Bond. The
Company will use an amount equivalent to the net proceeds from the
offering to fund Eligible Green Projects which will focus
on its pep+ (PepsiCo Positive) agenda – the Company's
strategic, end-to-end transformation that places sustainability and
human capital at the center of how it will create growth and value.
Investments under PepsiCo's new Green Bond will focus on
investments to deliver key environmental sustainability initiatives
under two pillars of its pep+ agenda: Positive Agriculture and
Positive Value Chain. This will help the company deliver on its aim
to operate within planetary boundaries and inspire positive change
for the planet and people.
The new Green Bond is PepsiCo's second since 2019, with
$858 million in equivalent proceeds
from the $1 billion first Green Bond
already allocated to Eligible Green Projects across six continents
in categories of sustainable plastics and packaging,
decarbonization of our operations and supply chain, and water
sustainability.
"We were one of the first food and beverage corporations to
issue a Green Bond and that initial funding has played a critical
role in our sustainable transformation so far," stated Jim Andrew, Chief Sustainability Officer,
PepsiCo. "While tackling the climate crisis requires a
collaborative effort, it is clear that the private sector must play
a leadership role. Our new Green Bond will be pivotal to
channeling investment into the critical areas required to build a
more sustainable and resilient food system."
PepsiCo's new Green Bond Framework outlines the categories where
funding can be directed, each one aligning with the UN Sustainable
Development Goals (SDGs), which include:
- Regenerative agriculture: PepsiCo's business starts with
agriculture, sourcing more than 25 crops and ingredients from more
than 30 countries. As part of its Positive Agriculture pillar of
pep+, PepsiCo is working to source key ingredient crops such as
potatoes, whole corn and oats in a way that accelerates
regenerative agriculture. Investments from the new Green Bond can
be used to adopt regenerative agriculture practices across
PepsiCo's supply chain, including towards farmer training,
practices to reduce fertilizer and watershed enhancement and
improvement projects.
UN SDG Alignment: SDG 2 – Zero hunger and SDG 8 – Decent
work and economic growth
- Decarbonization and climate resilience within our operations
and value chain: By 2030, the Company aims to reduce its
absolute greenhouse gas (GHG) emissions by more than 40% against a
2015 baseline, more than doubling its previous climate goal.
Equivalent net proceeds from the Green Bond may be used for
initiatives to further these goals including on-site sustainable
energy generation such as solar installations, investments in
greener buildings that receive third-party verified certifications,
energy efficiency and/or reducing GHG emissions at facilities, and
upgrading of vending and cooling equipment. The funding may also be
used towards the expansion of cleaner transportation, such as
electric vehicles.
UN SDG Alignment: SDG 7 – Affordable and Clean Energy,
and SDG 11 Sustainable Cities and Communities
- Circular economy and virgin plastic waste reduction: One
of PepsiCo's key pep+ goals is to strive to use 50 percent recycled
plastic content in its packaging by 2030. The Company is already
one of the largest users of food-grade rPET (recycled PET plastic)
in the world, and the new Green Bond will enable PepsiCo to
continue its work to increase the use of more sustainable product
packaging including recycled, compostable and reusable materials.
In addition, PepsiCo's new Green Bond Framework enables the Company
to direct funding to projects that strengthen recycling
infrastructure and increase recycling rates in key markets.
UN SDG Alignment: SDG 9 – Industry, Innovation and
Infrastructure, and SDG 12 - Responsible Consumption and
Production
- Pursuing net positive water impact in owned operations
and throughout PepsiCo's value chain, including those projects
positively contributing to communities. Water stewardship has long
been one of PepsiCo's top priorities and PepsiCo has a vision to
become Net Water Positive in its operations by 2030 through
reducing absolute water use and replenishing back into the local
watershed more than 100% of the water used. The new Green Bond
equivalent proceeds may be allocated to water recycling and reuse
projects, including water efficiency improvements, as well as to
investments to replenish watersheds in high water-risk areas
through initiatives such as tree plantings, rainwater harvesting
and wetlands rehabilitation. PepsiCo is also looking to fund the
scaling of drip irrigation or other water savings technologies for
the farmers who supply the Company with key crops and
ingredients.
UN SDG Alignment: SDG 6 - Clean Water and Sanitation, SDG
12 – Responsible Consumption and Production, and SDG 15 – Life on
Land
As part of its Green Bond governance, PepsiCo plans to publish
an annual update of the allocation of the proceeds, throughout the
term of the Green Bond and until all proceeds have been
allocated. The full framework can be viewed here and the
annual update will be reported publicly on PepsiCo's website.
PepsiCo recently published its first Environmental, Social, and
Governance (ESG) Summary since the launch of pep+, laying out
progress against each of its key pillars. The summary can be
viewed here.
For more information, please contact
pepsicomediarelations@pepsico.com
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 $79 billion in net
revenue in 2021, driven by a complementary beverage and convenient
foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade,
Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages,
including many iconic brands that generate more than $1
billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in
Beverages and Convenient Foods by Winning with PepsiCo Positive
(pep+). pep+ is our strategic end-to-end transformation that puts
sustainability and human capital at the center of how we will
create value and growth by operating within planetary boundaries
and inspiring positive change for planet and people. 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 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 the risks associated with the deadly
conflict in Ukraine; the impact of
COVID-19; future demand for PepsiCo's products; damage to PepsiCo's
reputation or brand image; issues or concerns with respect to
product quality and safety; PepsiCo's ability to compete
effectively; water scarcity; changes in the retail landscape or in
sales to any key customer; disruption of PepsiCo's manufacturing
operations or supply chain, including increased commodity,
packaging, transportation, labor and other input costs; political
or social conditions in the markets where PepsiCo's products are
made, manufactured, distributed or sold; future cyber incidents and
other disruptions of our information systems; failure to
successfully complete or manage strategic transactions; climate
change or measures to address climate change; imposition or
proposed imposition of new or increased taxes aimed at PepsiCo's
products; imposition of limitations on the marketing or sale of
PepsiCo's products; changes in laws and regulations related to the
use or disposal of plastics or other packaging materials; failure
to comply with applicable laws and regulations; and potential
liabilities and costs from litigation, claims, legal or regulatory
proceedings, inquiries or investigations. 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.
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SOURCE PepsiCo, Inc.