PepsiCo To Fund Sustainable Initiative From Green Bond’s Net Processing
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Dailycsr.com – 17 October 2019 – On October 10, 2019, PepsiCo Inc. made an announcement to reveal that it has put a price on its first ever Green Bond. The Green Bond offering stand at “US$1 billion” while its net proceeds will be used to fund multiple “key initiatives” for taking forward the sustainability agenda of the company.
Furthermore, it also informed that Simon Lowden, the PepsiCo leader, has been also made its “first Chief Sustainability Officer”, whereby Lowden will take charge of “PepsiCo's Sustainability Office”, along with the “Global Sustainable Plastics team and Global Sustainable Operations team”. In the words of PepsiCo’s Chairman as well as C.E.O, Ramon Laguarta:
“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. 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.”
PepsiCo published its 2018 Sustainability Report in September, wherein it defined “six priority areas” that it has chosen for making the “best contribution” possible. These areas are namely “agriculture, water, packaging, products, climate and people”. Additionally, it has also mentioned “eight ambitious and measurable goals”. Here are the “eligible categories” which align “the use of the Green Bonds net proceeds” with the SDGs of the U.N. and the above mentioned priority areas, as mentioned by PepsiCo’s press release:
Furthermore, it also informed that Simon Lowden, the PepsiCo leader, has been also made its “first Chief Sustainability Officer”, whereby Lowden will take charge of “PepsiCo's Sustainability Office”, along with the “Global Sustainable Plastics team and Global Sustainable Operations team”. In the words of PepsiCo’s Chairman as well as C.E.O, Ramon Laguarta:
“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. 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.”
PepsiCo published its 2018 Sustainability Report in September, wherein it defined “six priority areas” that it has chosen for making the “best contribution” possible. These areas are namely “agriculture, water, packaging, products, climate and people”. Additionally, it has also mentioned “eight ambitious and measurable goals”. Here are the “eligible categories” which align “the use of the Green Bonds net proceeds” with the SDGs of the U.N. and the above mentioned priority areas, as mentioned by PepsiCo’s press release:
- “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)”
In the words of Lowden:
“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. 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.”
References:
3blmedia.com
“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. 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.”
References:
3blmedia.com
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