PepsiCo Inc., Purchase, N.Y., released its 2020 Green Bond Report, which provides an update on the allocation of the use of net proceeds from its first ever Green Bond, issued in October 2019 for $1 billion. As disclosed at issuance, the Green Bond's net proceeds are to be allocated to investments where PepsiCo believes it can make a lasting impact on priorities within its sustainability agenda, including packaging, decarbonization and water, while advancing several of the UN's Sustainable Development Goals.
"We are focused on accelerating our momentum to further align business and purpose, and are proud of the progress we've made towards building and investing in a more sustainable future," said Jim Andrew, chief sustainability officer at PepsiCo, in a statement. "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."
As of Dec. 31, 2019, $447 million of the net proceeds from the Green Bond have been allocated, the following are highlights from these allocations:
- Approximately $200 million to procure recycled PET (rPET) plastic for the company's North American beverage packaging, avoiding approximately 210,000 metric tons 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, New York, 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 percent water reuse rates.