PepsiCo Leads Cross-Industry Renewable Energy Partnership to Accelerate European Decarbonisation

PepsiCo, Givaudan, Smurfit Westrock and Statkraft have signed a 10-year Virtual Power Purchase Agreement (VPPA) aimed at advancing renewable energy adoption and reducing value chain emissions across Europe. The agreement is linked to a wind energy asset in Spain that is currently undergoing repowering with more efficient turbines, enabling greater renewable electricity generation while utilising existing infrastructure.

The initiative forms part of PepsiCo’s broader PepsiCo Positive (pep+) sustainability strategy and specifically its pep+ REnew programme, which supports collaborative renewable electricity procurement across supply chains. Under the arrangement, PepsiCo acted as the lead buyer and aggregated energy demand from strategic partners Givaudan and Smurfit Westrock, helping smaller participants secure access to long-term renewable power agreements typically reserved for larger corporations.

Schneider Electric’s SE Advisory Services supported the structuring and delivery of the agreement. The renewable electricity generated through the project is expected to contribute to approximately 32,000 metric tonnes of annual carbon dioxide emissions reductions, supporting the participating companies’ net-zero and science-based climate targets. PepsiCo noted that the initiative aligns with its updated 2030 sustainability goals, including a 42% reduction in Scope 3 Energy and Industry emissions and a 30% reduction in Forest, Land and Agriculture emissions from a 2022 baseline.

The collaboration highlights the increasing role of cross-industry partnerships and aggregated renewable energy procurement in helping multinational companies decarbonise complex supply chains while expanding access to clean electricity solutions across Europe.

Source: PepsiCo