Pepsico issues new $1.25 billion 10-year Green Bond as company accelerates pep+ transformation
PepsiCo announced the closing of a new $1.25 billion 10-year Green Bond. The company will use an amount equivalent to the net proceeds from the offering to fund Eligible Green Projects, which will focus on its pep+ (PepsiCo Positive) agenda – the company's strategic, end-to-end transformation that places sustainability and human capital at the center of how it will create growth and value.
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. This will help the company deliver on its aim to operate within planetary boundaries and inspire positive change for the planet and people.
The new Green Bond is PepsiCo's second since 2019, with $858 million in equivalent proceeds from the $1 billion first Green Bond already allocated to Eligible Green Projects across six continents in categories of sustainable plastics and packaging, decarbonization of our operations and supply chain, and water sustainability.
"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," Jim Andrew, chief sustainability officer, PepsiCo, said in the announcement. "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."
PepsiCo's new Green Bond Framework outlines the categories where funding can be directed, each one aligning with the UN Sustainable Development Goals (SDGs), which include:
- Egenerative agriculture
- Decarbonization and climate resilience within operations and value chain
- Circular economy and virgin plastic waste reduction
- 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. The full framework can be viewed here.
