Standard Bank partners with PepsiCo South Africa on key initiatives with a sustainability-linked working capital facility

PepsiCo is one of the world’s leading food and beverage companies, with a global footprint that spans across over 200 countries around the world and a product portfolio that includes a wide range of foods and beverages. In South Africa, the company’s brands include Weet-Bix, Simba, Lay’s, Doritos, Liqui Fruit, SASKO, White Star and Spekko amongst others.

Standard Bank acted in its capacity as lender and sustainability coordinator in the transaction. The sustainability-linked working capital facility aligns with PepsiCo South Africa’s funding needs and the company’s commitment to sustainability through its PepsiCo Positive agenda, which has the adaptation of energy efficient manufacturing processes through the greater use of renewable electricity as a key focus. 

Transitioning to renewable energy for PepsiCo is an important part of achieving greenhouse gas reduction goals by 2030. PepsiCo strives to reach net-zero emissions by 2040 with 100% renewable electricity in its own operations by 2030 and in all their franchise and third-party operations by 2040.

To achieve 100% renewable electricity consumption in its manufacturing operations. PepsiCo has targeted a range of solutions to meet this commitment. In addition to its on-site renewable energy capacity generation, PepsiCo is also partnering with Independent Power Producers to wheel electricity through various renewable sources such as wind and/or solar plants with the additional use of renewable energy certificates to offset its non-renewable consumption.  

Apart from these initiatives, PepsiCo South Africa has 15 sites generating onsite solar capacity amounting to 11.5MW. It’s in the process of constructing an anaerobic digester plant at their Isando manufacturing facility. This plant will consume organic solid waste generated at the site, via a biological process, to release biogas that will be used to produce electricity for use at the facility.

Alongside reducing energy use and transitioning to renewable energy to create a low-carbon value chain, PepsiCo South Africa works to advance equity and inclusion in its business partnerships and in communities. Standard Bank’s partnership with PepsiCo South Africa supports its broad ambitions to invest in the South African economy through its procurement spend and drive the localisation of their value chain.  A sub-set of its preferential procurement spend is targeted towards the participation of local SMMEs, black owned and women owned suppliers that drive the development of socio-economic growth of marginalised groups and support job creation in the country.

“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.