PepsiCo Inc. on Oct. 7 priced its $1 billion green bond to help fund its sustainability initiatives and appointed Simon Lowden as its first chief sustainability officer, effective immediately.
The U.S. food and beverage giant said the bond will help the company build a more sustainable food system by addressing challenges such as carbon emissions, access to clean water and plastic waste.
The company said it aims to reduce 35% of virgin plastic content across its beverage portfolio by 2025, reduce absolute greenhouse gas emissions across its value chain by 20% by 2030, compared with 2015, and replenish 100% of the water it consumes in its manufacturing operations by 2025. The targets were outlined in its 2018 Sustainability Report released in September.
The proceeds from the green bond will fund projects that purchase and develop biodegradable or recyclable alternatives to plastic packaging, replace fossil fuel-powered cars with electric vehicles in its supply chain, train farmers to improve soil health and give them access to water-saving technologies like drip irrigation, and support water recycling and reuse.
"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," Chairman and CEO Ramon Laguarta said.
Lowden will lead PepsiCo's Sustainability Office, including the Global Sustainable Plastics team and Global Sustainable Operations team.
