PepsiCo has announced that it has allocated $447 million (€380.5 million) from its $1 billion (€850 million) Green Bond towards making its food system more sustainable.
The cola giant will use $200 million from this amount to procure recycled polyethylene terephthalate (rPET) plastic for its North American beverage packaging unit.
The move will help in reducing greenhouse gas emissions by approximately 210,000 metric tonnes.
It will also invest more than $110 million in facilitating the transition of the company-owned fleet to lower-carbon models.
A 'Sustainable Future'
Jim Andrew, chief sustainability officer at PepsiCo, said, "We are focused on accelerating our momentum to further align business and purpose, and are proud of the progress we have made towards building and investing in a more sustainable future.
“The Green Bond is one of the many tools we are 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."
PepsiCo plans to build a green R&D facility in Valhalla, New York, featuring 681 solar panels, which will see an investment of $98 million.
Efficient Use Of Water
In addition, the company will spend $9 million to ensure the efficient use of water in its factories, with a particular focus on its PepsiCo snack plant in Vallejo, Mexico.
The site is a high-water-risk location, which implemented new water treatment technologies resulting in a 70% water reuse rates, the company added.
In October 2019, PepsiCo issued its first Green Bond, worth $1 billion.
The proceeds from the bond support projects are aimed at advancing the company’s sustainability targets, of which several are in line with the UN's Sustainable Development Goals.