PepsiCo has announced the closing of a new $1.25 billion (€1.23 billion) 10-year Green Bond as it seeks to accelerate sustainability efforts.
The group aims to use an amount equivalent to the net proceeds from the offering to fund Eligible Green Projects, focusing on its pep+ (PepsiCo Positive) agenda.
PepsiCo Green Bond
The new bond is PepsiCo's second since 2019, with $858 million in equivalent proceeds from the $1 billion (€980 million) first Green Bond already allocated to Eligible Green Projects across six continents in categories of sustainable plastics and packaging, decarbonisation of the group's operations and supply chain, and water sustainability, the company noted.
Investments under PepsiCo's new Green Bond will focus on investments to deliver key environmental sustainability initiatives under two pillars of its pep+ agenda: Positive Agriculture and Positive Value Chain.
"We were one of the first food and beverage corporations to issue a Green Bond and that initial funding has played a critical role in our sustainable transformation so far," said Jim Andrew, chief sustainability officer of PepsiCo.
"While tackling the climate crisis requires a collaborative effort, it is clear that the private sector must play a leadership role. Our new Green Bond will be pivotal to channeling investment into the critical areas required to build a more sustainable and resilient food system."
Read More: PepsiCo's pep+ Strategy Should Put It 'Ahead Of The Curve' On Sustainability: Analyst
Green Bond Framework
PepsiCo's new Green Bond Framework outlines the categories where funding can be directed, with each category aligning with the UN Sustainable Development Goals.
These include projects around regenerative agriculture, implementing climate resilience across the value chain, developing the circular economy, and pursuing net positive water impact.
As part of its Green Bond governance, PepsiCo plans to publish an annual update of the allocation of the proceeds, throughout the term of the Green Bond and until all proceeds have been allocated.
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Conor Farrelly. Click subscribe to sign up to ESM: European Supermarket Magazine.
