PepsiCo & Smurfit WestRock: Boosting Renewable Supply Chains

Four companies have secured access to renewable electricity through a coordinated purchasing agreement that targets emissions across their supply networks.

PepsiCo, Givaudan, Smurfit WestRock and Statkraft signed a ten-year Virtual Power Purchase Agreement to repower a wind asset in Spain.

The agreement could accelerate decarbonisation for suppliers and manufacturing partners within PepsiCo's value chain.

According to the agreement, the renewable energy is projected to contribute approximately 32,000 tonnes of CO₂ emissions reductions annually. The VPPA structure allows participating companies to claim renewable energy certificates while supporting new clean energy capacity on the grid.

Value chain decarbonisation model

PepsiCo worked with SE Advisory Services, Schneider Electric's global consulting practice, under the pep+ REnew programme to structure the company's second supply chain VPPA cohort. The advisory aided in load accumulation across PepsiCo, Givaudan and Smurfit WestRock to open long-term renewable energy opportunities.

The aggregation model enables smaller suppliers to access renewable energy markets that would typically require larger purchase volumes. By pooling demand across multiple organisations, the cohort structure reduces barriers to entry for companies seeking to decarbonise their operations through renewable electricity procurement.

"By pairing our market expertise with PepsiCo's supplier engagement model, we're accelerating decarbonisation across global value chains," says John Powers, Vice President of Strategic Renewables at Schneider Electric.

The VPPA was developed under PepsiCo's pep+ REnew programme which aims to help suppliers, manufacturers and bottlers transition to renewable energy. The company served as the lead buyer for the agreement with aggregation of renewable energy demand carried out by Givaudan and Smurfit WestRock.

"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," says Archana Jagannathan, Chief Sustainability Officer, PepsiCo Europe, Middle East and Africa:

Supplier engagement across regions

Launched in 2022, pep+ REnew has grown into a global platform supporting more than 250 companies across North America, Latin America, Europe and APAC. The VPPA represents the programme's second completed cohort and the first renewable electricity cohort in Europe.

The programme provides participating suppliers with technical support and market access to navigate renewable energy procurement. Through the platform, companies can connect with energy developers, financial advisers and other supply chain partners pursuing similar decarbonisation objectives.

"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," says Archana.

"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."

As part of pep+, PepsiCo has updated its 2030 climate targets using a baseline from 2022. The company is targeting a 42% reduction in Scope 3 energy and industry emissions, as well as a 30% reduction in forest, land and agriculture Scope 3 emissions.

Packaging supplier participation

Edwin Goffard, President of Corrugated and Consumer Packaging Europe at Smurfit WestRock, confirmed the packaging supplier's involvement in the electricity purchasing coalition. "As a global leader in paper-based packaging, we are working towards a net zero future," he says.

"This agreement shows how our commitment to clean energy is helping power real and tangible progress. By adding renewable electricity to the power grid and supporting local economic development, this is another step forward on our sustainability journey."

Willem Mutsaerts, Head of Global Procurement and Sustainability at Givaudan, says: "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 toward 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."

The fragrance and flavour manufacturer's participation demonstrates how specialised suppliers within consumer goods value chains can leverage collaborative procurement models to access renewable energy markets while maintaining focus on core business operations.

Infrastructure repowering in Spain

The wind energy asset in Spain is set to be repowered with more efficient turbines. The VPPA is set to take over an underlying wind asset in Spain that is currently undergoing repowering.

The aim of repowering is to increase renewable energy output while reusing grid infrastructure like substations and interconnection points. This circular approach could minimise additional environmental impact while accelerating renewable energy delivery to the grid.

"We are proud to collaborate with PepsiCo, Givaudan and Smurfit WestRock to expand renewable energy capacity in Spain," says Hallvard Granheim, EVP Markets, Statkraft.

This is PepsiCo's second PPA in Spain. These goals form part of PepsiCo's broader Science Based Targets initiative-validated pathway to achieve net zero emissions no later than 2050.