PURCHASE, NY. — PepsiCo, Inc. has closed on a new $1.25 billion 10-year green bond, proceeds from which will be used to deliver key environmental sustainability initiatives under two pillars of its pep+ agenda: Positive Agriculture and Positive Value Chain.

The new green bond is the Purchase-based company’s second since 2019. PepsiCo said it has allocated $858 million in equivalent proceeds from its first $1 billion green bond to eligible projects across six continents in categories of sustainable plastics and packaging, decarbonization of 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,” said James P. Andrew, chief sustainability officer at 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.”

Among the ways PepsiCo plans to use funds from the new green bond is regenerative agriculture. The company said investments from the new green bond may be used toward farmer training, practices to reduce fertilizer and watershed enhancement and improvement projects.

PepsiCo said it also plans to use proceeds to improve on-site sustainable energy generation, including solar installations, investments in greener buildings that receive third-party verified certifications, energy efficiency and/or reducing greenhouse gas emissions at facilities, and upgrading of vending and cooling equipment. The funding also may be used to expand the company’s line of cleaner transportation, such as electric vehicles.

Other potential uses for the green bond include development of more sustainable packaging and implementation of water recycling and reuse projects, PepsiCo said.