PepsiCo South Africa secures sustainability-linked capital for renewable energy commitments

SOUTH AFRICA – PepsiCo South Africa has secured a sustainability-linked working capital facility from Standard Bank to support its renewable energy commitments and broader localization aspirations regarding procurement spending in South Africa.

PepsiCo, one of the world’s leading food and beverage companies, operates in over 200 countries with a diverse product portfolio, including Weet-Bix, Simba, Lay’s, Doritos, Liqui Fruit, SASKO, White Star, and Spekko in South Africa.

Acting as the lender and sustainability coordinator, Standard Bank facilitated the sustainability-linked working capital facility.

This aligns with PepsiCo South Africa’s funding needs and commitment to sustainability through the PepsiCo Positive agenda, which focuses on energy-efficient manufacturing processes and increased use of renewable electricity.

Transitioning to renewable energy is crucial for PepsiCo’s achievement of its greenhouse gas reduction goals by 2030 and net-zero emissions by 2040.

The company aims to use 100% renewable electricity in its operations by 2030 and extend this to all franchise and third-party operations by 2040.

To meet these commitments, PepsiCo is employing various solutions, including on-site renewable energy generation and partnerships with independent power producers to source renewable energy from wind and solar plants, using renewable energy certificates to offset non-renewable consumption.

In South Africa, PepsiCo has 15 sites generating an onsite solar capacity of 11.5MW and is constructing an anaerobic digester plant at its Isando manufacturing facility.

This plant will convert organic solid waste into biogas, producing electricity for the facility.

Beyond energy use reduction and renewable energy transition, PepsiCo South Africa is committed to advancing equity and inclusion in its business partnerships and communities.

Standard Bank’s partnership supports PepsiCo’s ambitions to invest in the South African economy through procurement spending and localize its value chain.

This includes targeting local SMMEs and black-owned and women-owned suppliers to drive socio-economic growth and job creation in marginalized groups.

“Creating a sustainable value chain is not easy, but with the right approach, it is a powerful means to meet our sustainability goals, create a more resilient organization, and fuel improved business performance,” says Riaan Heyl, Chief Executive Officer for PepsiCo South Africa.

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