PepsiCo and supply chain partners sign 10-year wind power agreement in Spain to cut emissions and expand renewable electricity use.
PepsiCo has signed a 10-year Virtual Power Purchase Agreement (VPPA) with suppliers Givaudan and Smurfit WestRock to secure renewable wind power from a repowered asset in Spain, strengthening efforts to cut supply chain emissions.
Developed with renewable energy company Statkraft, the agreement is expected to generate clean electricity contributing to an estimated 32,000 metric tonnes of CO₂ emissions reductions per year.
PepsiCo developed the deal through its pep+ REnew programme, which helps suppliers, manufacturers and bottlers transition to renewable electricity. Launched in 2022, the initiative now supports more than 250 companies across North America, Latin America, Europe and Asia-Pacific.
The VPPA marks the programme’s second completed cohort and its first renewable electricity cohort in Europe.
PepsiCo acted as the lead buyer, aggregating electricity demand with strategic suppliers Givaudan and Smurfit WestRock. By combining purchasing power, the companies secured favourable long-term renewable electricity contracts typically available only to larger energy buyers.
The agreement forms part of PepsiCo’s broader PepsiCo Positive (pep+) sustainability strategy, aimed at reducing emissions across its global value chain.
As part of pep+, PepsiCo has updated its 2030 climate goals using a 2022 baseline, targeting a 42 percent reduction in Scope 3 Energy and Industry emissions and a 30 per cent reduction in Scope 3 Forest, Land and Agriculture (FLAG) emissions. These targets form part of the company’s Science Based Targets initiative-validated pathway to reach net zero emissions by 2050 or sooner.
This agreement with Statkraft is a further step forward in our journey to reduce emissions not only within our own operations but across our entire value chain.
By collaborating with PepsiCo’s value chain, we aim to expand access to renewable energy solutions, support the transition to cleaner power, and accelerate progress towards our climate goals.
Collaborations like this demonstrate how action with stakeholders across the value chain and long term ambitions can help drive meaningful change for our business, members of our value chain, and the planet.”
Archana Jagannathan, Chief Sustainability Officer, PepsiCo Europe, Middle East and Africa
Collaboration drives renewable energy access across supply chains
SE Advisory Services, Schneider Electric’s global consulting practice, helped structure the agreement and aggregate electricity demand across the participating companies.
By pooling electricity demand across multiple companies, the partners were able to secure long-term renewable energy contracts typically available only to larger buyers.
This agreement is a compelling example of how we are bringing to life sustainable growth with customers.
By joining forces on renewable electricity in this way, we are translating shared ambitions into tangible climate action, helping power our progress towards a low carbon future.
Collaboration of this kind lies at the heart of Givaudan’s 2030 strategy, demonstrating how working hand in hand with customers and partners can accelerate change that delivers benefits throughout the value chain.”
Willem Mutsaerts, Head of Global Procurement and Sustainability, Givaudan.
The wind facility in Spain will be repowered with more efficient turbines, increasing renewable electricity output while reusing existing grid infrastructure such as substations and interconnection points.
We are proud to collaborate with PepsiCo, Givaudan, and Smurfit WestRock to expand renewable energy capacity in Spain.
This agreement shows how companies of varied sizes can work together to help drive meaningful climate impact.
Statkraft is delighted to support a coalition that brings additional renewable capacity online while enabling businesses across Europe to decarbonise.”
Hallvard Grandheim, EVP Markets, Statkraft.
The project marks PepsiCo’s second power purchase agreement in Spain, following a renewable energy deal that became operational in 2023.
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