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Renewable Energy

Renewable Energy Why It Matters


In early 2020, PepsiCo announced plans to achieve 100 percent renewable electricity for our U.S. direct operations from that year forward. The U.S. is our largest market and accounts for nearly half of our total global electricity consumption. PepsiCo's 2020 shift to renewable electricity in the U.S. is expected to deliver a 20 percent reduction in company-wide direct operations (Scopes 1 and 2) greenhouse gas (GHG) emissions relative to a 2015 baseline. This represents a significant contribution to the company's goal of cutting GHG emissions by more than 40 percent by 2030 (against a 2015 baseline) — while pledging to achieve net-zero emissions by 2040. 

Renewable Energy Energy Consumed 2020

Building on this ambition, we made a further commitment in late 2020 to transition to 100 percent renewable electricity globally, first across our company-owned operations by 2030 and then by expanding to our franchise and third-party operations by 2040. With PepsiCo's scale, the transition has the potential to reduce approximately 2.5 million metric tons of GHG emissions by 2040, the equivalent of taking more than half a million cars off the road for a full year. 

Progress towards our goal is achieved in part by building new wind and solar installations at our plants and distribution centers, coordinated by local and sector teams. Additional renewable electricity is purchased through the grid where our facilities operate, an effort that combines global and sector sustainability teams, partnered with our global procurement function. To achieve 100 percent renewable electricity, PepsiCo has targeted a diversified portfolio of solutions. These include Power Purchase Agreements (PPAs), which finance the development of new renewable electricity projects such as solar and wind farms, as well as renewable energy certificates (RECs) from existing wind or solar farms, which are credits certified by independent third parties that support existing green electricity generation from renewable sources. In 2020, PepsiCo's portfolio featured more RECs from existing wind and solar farms, then, by contracting PPAs, will gradually move toward more RECs from new wind and solar farms by 2025.


By the end of 2020, PepsiCo achieved its goal to source 100 percent renewable electricity for its operations in the U.S. This milestone, paired with a further 30 countries in which we have on-site renewable generation or have contracted for renewable electricity, means that PepsiCo’s total renewable energy was approximately 2,195 GWh in its operations in 2020, or 55 percent of its global operational energy requirements. To date, we have achieved 100 percent renewable electricity[1] in 18 markets, including the United States.

Renewable Energy Progress and Challenges

More than 400 solar panels help power the Quaker plant in Rotterdam, Netherlands. Installation of a single windmill at the Tropicana plant in Zeebrugge, Belgium will generate approximately 40 percent of that site’s total electricity consumption.

Strategic Partnerships

In order to meet our renewable energy commitment, we are proud to partner with leading energy experts, including:

  • RE100: An initiative led by the Climate Group in partnership with CDP (formerly the Carbon Disclosure Project), to bring together the world's most influential companies committed to 100 percent renewable electricity.
  • REBA (Renewable Energy Buyers Alliance):  A membership association for large-scale energy buyers seeking to procure renewable energy across the U.S. This partnership will assist in achieving our Renewable goals.
  • Corporate Renewable Energy Buyers Principles: An initiative facilitated by the World Resources Institute and the World Wildlife Fund.

What’s Next

In the United States, renewable projects in Texas and Nebraska are expected to break ground in 2021, and by the end of the year, 15 countries in PepsiCo’s direct operations will be powered by 100 percent renewable electricity. This means that more than 60 percent of all of the company’s direct global electricity needs will be met through renewable sources. Twelve countries in PepsiCo's Europe sector already source 100 percent renewable electricity.

PepsiCo is also expected to achieve 100 percent renewable electricity in Mexico and Australia in 2021.

1100% renewable electricity data refers to manufacturing locations only.