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PepsiCo to Achieve its First Net Zero Plant by 2025

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Food and beverage giant PepsiCo announced today that its beverage plant in Northern Spain aims to become the company’s first plant globally to reach net-zero emissions by 2025.

According to PepsiCo, the new achievement follows investments of €27 million (USD$29 million) dedicated to innovation and sustainability projects in the plant over the past five years, in addition to a €5 million decarbonization-focused electrification project.

The plant, in Álava Basque Country, produces Pepsi, as well as local brands KAS and Bitter KAS.  The plant has used electricity from renewable sources since 2015, and the new electrification project, which follows a pilot program will now replace its remaining natural gas with electric energy, enabling 100% electrification of the facility.

According to PepsiCo, the electrification of the plant’s operations will eliminate 1,849 tons of CO2 per year.

Pol Codina, General Manager of PepsiCo in Southwestern Europe, said:

“I am tremendously proud that our beverage plant in Álava aims to become the first in our company worldwide to have net-zero emissions next year. This brilliant news coincides with a very special date for us, our 50th anniversary. We are aware that we still have a long way to go to decarbonize our entire value chain and, to do so, we hope to be able to count on the maximum collaboration of all our partners.”

The new achievement follows the launch in 2021 by PepsiCo of its comprehensive sustainability framework, pep+, encompassing a broad range of ESG initiatives across agriculture practices, climate, water and packaging sustainability, and consumer health. The company has set sustainability goals including achieving net zero emissions by 2040 and become water positive by 2030.

In Spain, the company launched 100% recycled plastic bottles across its entire Pepsi range in 2021, in addition to a new cardboard solution for grouping cans. In 2022, PepsiCo also announced a deal with Iberdola to source renewable energy to power 100% of its Spain and Portugal sites.

In 2023, PepsiCo’s opened a €300 million plant in Poland, described by the company as its greenest factory in Europe, incorporating renewable energy for operations and a series of circular economy measures to reduce water waste and help address global food system challenges.. The Środa Śląska plant is set to be climate neutral by 2035.

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