Renewable energy

Why it matters

Approach

Governance

Because renewable energy adoption is an important aspect of our climate change approach, it is governed by the same processes and structures that underpin those efforts. See climate change for more details.

For more information about our governance practices, see Sustainability governance.

Risk management

The use of renewable energy in our operations can be an important part of risk management for PepsiCo. On-site renewable energy, while small relative to our energy usage, can help reduce our reliance on the local electric infrastructure and help support business continuity.

Renewable energy also supports PepsiCo’s decarbonization efforts, which can help us reduce our exposure to climate transition risks. For more information on our climate risk management and decarbonization efforts, see Climate change.

Strategy

Renewable energy is an important mechanism for reducing our GHG emissions and progressing toward our pep+ (PepsiCo Positive) climate goals.

Our guiding set of principles for our operations, called Sustainable Operations from the Start, provides a framework for manufacturing and distribution sites to be funded, scoped and activated with net-zero emissions in mind. Practices from Sustainable Operations from the Start include designing new sites with renewable electricity and fuel in mind.

Renewable electricity

We rely on a diversified portfolio of solutions to achieve progress towards our renewable electricity ambition, including:

• Building on-site solar and wind installations at our plants and distribution centers,
• Executing Power Purchase Agreements (PPAs), which finance the development of new renewable electricity projects such as solar and wind farms;
• Purchasing unbundled Energy Attribute Certificates (EACs), including renewable energy credits (RECs). EACs from existing wind or solar farms are certified by independent third parties that support existing electricity generation from renewable sources before being included in our portfolio of renewable electricity. Unbundled EACs enable companies to support the renewable energy market and renewable energy generation, and their use is a common first step in the renewable electricity journey.

We anticipate transitioning increasingly to longer-term renewable electricity solutions such as PPAs and on-site generation over time.

Renewable fuel

Renewable fuel (both physically-delivered and EACs) also helps to drive progress toward our climate ambitions. Physically-delivered renewable fuel powers portions of our fleet and helps us to meet our thermal requirements, such as the heating and cooling needed for our production and facilities. As a convenient foods and drinks company, we’re in the unique position to be able to power areas of our operations with some of the organic waste produced during the manufacturing process. We’re piloting converting byproducts like potato peels to renewable fuel via the use of biodigesters. Pilot programs like these help us explore new ways to use innovative technologies that repurpose what would have been waste, into fuel that can help power our plants and reduce our use of natural gas.

Policy advocacy

We believe industry and governments should take science-based action to keep global temperature increases to well-below 2°C or 1.5°C above pre-industrial levels, as described by the Special Report on Global Warming of 1.5°C of the Intergovernmental Panel on Climate Change.

As part of our broader climate change advocacy, we supported renewable energy policy focused on the expansion of biomethane and access to renewable electricity. We joined 32 other European organizations to sign the Biomethane Offtakers Declaration in 2025 which outlines a long‑term production vision for Europe supported by EU regulations, financial incentives to enable new projects and long‑term agreements, and market‑driven solutions including guarantees of origin and corporate purchasing agreements. In APAC we participated in policy dialogue through the Asia Clean Energy Coalition (ACEC), focused on reforming electricity market rules to enable corporate renewable energy procurement.

See Climate change policy advocacy for more detail on our policy efforts.

Progress

Metrics and targets

PepsiCo measures progress against its renewable electricity strategy through the following goal, which was embedded into the company’s pep+ agenda in 2025.

In addition, the following metrics provide further insight into the nature of our energy and electricity consumption.

Actions

Renewable electricity

The EPA Green Power Partnership ranked us as a top-ten corporate buyer of clean power in North America in its 2022 Top 100 list, and we remain in that position as of 2024.

In 2025, PepsiCo’s South Africa business signed key commercial terms with NOA Group, a large independent power producer. This agreement aims to secure approximately 70% renewable electricity for 12 major manufacturing sites in South Africa.

We also added on-site solar in our snacks manufacturing plant in Shandong, China which has the potential to generate approximately 1.7 MW of electricity, which would cover nearly 20% of the plant’s electricity usage and help us reduce our Scope 2 emissions. In 2025, we installed solar panels and an electric boiler to phase out natural gas at our plant in Álava, Spain.

Renewable fuel

We continue to explore options for renewable fuel sources for our factories, fleet, and other operations. In 2025, we added new infrastructure in facilities across the globe to help us reduce our reliance on fossil fuels in our operations.

• Biodigesters: PepsiCo launched a new biodigester at the snack manufacturing facility in Santo Domingo, Dominican Republic. Each month, the biodigester processes organic waste from snack production to generate biogas.
• Electric ovens: At our Leicester, U.K. snack plant, we added two new electric ovens and converted a third from gas to electric.
• Biomass boilers: We also installed three biomass boilers (a system that uses organic materials to generate heat) in Vietnam, Indonesia, and China which help us reduce our use of non-renewable energy in our manufacturing operations.

Beyond our factory walls, we continue working to reduce the greenhouse gas footprint of our fleet, including by installing charging infrastructure for electric vehicles and exploring alternative fuels. For more information on these efforts, see Fleet decarbonization.

Challenges

Cost-effective renewable thermal solutions, including biofuels, remain difficult to source in many markets. Additionally, scaling up renewable projects remains challenging in some markets around the globe, given local market and/or regulatory environments. Amidst these challenges, we are leveraging credible market instruments as we seek to advance our decarbonization ambitions. Discussions are underway with standards bodies to develop guidance on their use in emissions accounting and towards achieving targets. In the interim, we have established robust internal quality criteria that we use to guide procurement.

Strategic collaborations

As we strive towards our renewable energy goal, we are proud to work with leading energy experts, including:

• CEBA (Clean Energy Buyers Association): A membership association for large-scale energy buyers seeking to procure renewable energy across the U.S.
• Corporate Renewable Energy Buyers Principles: An initiative facilitated by the World Resources Institute and the World Wildlife Fund.
• Renewable Thermal Collaborative: A coalition for organizations that are working to scale up renewable heating and cooling at their facilities and cut carbon emissions.

In addition to our collaborations with external energy experts, we work with other companies, both within and outside our value chain, to expand access to renewable electricity solutions. These programs include the following:

• pep+ REnew: In 2025 we continued our work providing education to our supply chain participants and supporting their transition to renewable electricity via our REnew program. This program was originally launched in North America in 2022 and has since expanded into Europe, Latin America, Southeast Asia and India. It has two ambitions: to educate PepsiCo's supply chain participants about their renewable electricity choices and to accelerate their transition to renewable electricity through aggregate power PPAs and other renewable electricity procurement options. In 2024, PepsiCo and the Donaldson Company joined a virtual power purchase agreement to develop a solar energy project in Texas, which began producing new, renewable electricity for the grid in 2025.
• The Clean Heat Community of Practice: In 2025, PepsiCo Europe and PepsiCo North America advanced supplier decarbonization efforts through the launch of the Clean Heat Community of Practice. Working in collaboration with three leading co‑funding knowledge partners, the Clean Heat Community of Practice aims to share learning and provide suppliers with access to advanced thermal technology insights, a vetted network of solution providers, expert policy and funding guidance, innovative business‑case models and opportunities for cross‑supplier collaboration.

What's next?

Working towards our pep+ (PepsiCo Positive) climate ambitions will require continued efforts to transition to renewable energy, including in our own facilities, by stakeholders in our value chain and through piloting innovative technologies.

• PepsiCo facilities: We plan to continue using our Sustainable Operations from the Start principles to guide future growth while expanding renewable electricity sourcing in markets where it is available and increasing biofuel options for our operations through both on‑site production and sourcing via distribution networks.
• Value Chain: Through pep+ REnew, we plan to continue encouraging our value chain to adopt renewable electricity through education, advisory support and opportunities for group purchasing. Additionally, our Clean Heat Program supports our value chain to learn about and decarbonize their thermal processes.
• Technology: We continue to explore and pilot new innovations and technologies to accelerate adoption of low carbon solutions across our value chain.

¹See Calculation Methodology for detail on how we measure progress on this metric. Metric published August 13, 2026

²See archived 2023-2024 Calculation Methodology for detail on how we measured progress on this metric

³Includes purchase of unbundled EACs

⁴EACs are also known as renewable energy certificates (RECs) in the U.S.

Calculation methodology

Target metric

Achieve 100% renewable electricity in company-owned operations by 2030

How we measure

Assurance: 2025 inventories subjected to limited assurance

Boundary: PepsiCo-owned operations

Exclusions: None

Baseline: None

Restatement from prior year(s): None

Progress for this metric accounts for the proportion of renewable electricity consumption against total electricity consumption in company-owned operations. This includes all purchased electricity as well as self-generated electricity from solar, wind, renewable and non-renewable fuels. Purchase of energy attribute certificates (EACs⁴) from a diversified portfolio of solutions including Power Purchase Agreements (PPAs) and EACs from existing electricity generation from renewable sources are used to meet this target metric, following the GHGP Scope 2 guidance and RE100 technical criteria