PURCHASE, New York, US, May 9, 2007.
One of the world's largest producers of soft drinks and snacks will buy green power for all its facilities in the United States.
PepsiCo will purchase 1 billion kWh a year for three years of renewable energy certificates. The purchase is the largest REC purchase to date and will cover the electricity used by all PepsiCo manufacturing facilities, headquarters, distribution centres and regional offices in the U.S.
“The purchase of these RECs is not only in line with our progress to date, but further advances our commitment to sustainability and helps make a positive impact in the communities we serve across the country,” explains John Compton of PepsiCo North America. “Energy is a key focus for PepsiCo within its environmental sustainability agenda.”
With the purchase, PepsiCo tops the list of green power purchasers under the ‘Green Power Partnership’ of the Environmental Protection Agency, as well as becoming the top Fortune 500 purchaser of RECs. The EPA partnership involves companies which voluntarily purchase green power to reduce the environmental impacts associated with use of conventional electricity.
Green power is generated from solar, wind, geothermal, biogas, biomass and low-impact hydro facilities which have a superior environmental profile than conventional sources. Purchasing RECs drives the development of additional green power capacity and, based on national average emissions rates, the EPA estimates PepsiCo's purchase would power 90,000 homes each year.
“America is shifting to a ‘green culture’ with more and more businesses understanding that environmental responsibility is everyone's responsibility,” says Stephen Johnson of EPA. “By switching to alternative, renewable power sources, PepsiCo is proving that going green can be the choice of every generation.”
PepsiCo is partnering with Sterling Planet to purchase the RECs, and that company will source RECs to model PepsiCo's purchased electricity use geographically.
“We are pleased to join with PepsiCo to make history with this largest-ever purchase of clean, renewable energy certificates,” says Mel Jones of Sterling Planet. “This approach should help the local communities where PepsiCo has a presence to grow local renewable energy sources.”
The Green-e program is administered by the Center for Resource Solutions to certify that RECs meet environmental guidelines and to verify that the purchased credits are retired on PepsiCo's behalf.
"PepsiCo is demonstrating environmental leadership and innovation while inspiring other U.S. corporations to take action,” says Dan Lieberman of CRS. “This type of commitment from PepsiCo makes tremendous strides toward a clean, renewable energy future for all Americans.”
PepsiCo is one of the world's largest food and beverage companies, with annual revenues of US$35 billion. Its principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods, and its portfolio includes 17 brands which generate at least $1 billion each in annual retail sales.
