USA – American beverage and snack giant PepsiCo has partnered energy solutions company Schneider Electric to help accelerate adoption of renewable energy across its entire value chain.
The two companies have launched the pep+ REnew initiative which they plan to use to achieve net-zero emissions by 2040
By collaborating, the companies will advance the adoption of renewable electricity to ensure a carbon-efficient food system.
pep+ REnew is designed to educate PepsiCo’s value chain partners about their renewable electricity choices, the maker of Lays snacks said.
It also speeds up the transition through aggregate power purchase agreements (PPA) and other renewable electricity procurement options.
According to Schneider Electric, some organizations are not large enough to participate independently and may need education on the mechanics of renewable electricity transactions or guidance to navigate the complexities of a PPA.
“By creating greater access to large-scale renewable electricity, our partnership aspires to add more renewable electricity capacity to power grids worldwide. This is a much-needed step as we work toward a net-zero economy,” says Steve Wilhite, president, Schneider Electric sustainability business.
For the first pep+ REnew cohort, PepsiCo is inviting a broad array of value chain partners to apply to participate in the program, with the goal to finalize a first buyer’s cohort for an aggregate PPA by the end of 2022.
Schneider Electric will facilitate a multi-phase education and project selection process to advance supplier progress toward aggregated renewable electricity purchases.
“Net-zero cannot happen without our value chain partners taking bold climate action,” says Jim Andrew, Chief Sustainability Officer, PepsiCo.
“Through pep+ REnew, we will encourage our partners to reduce their Scope 2 emissions through renewable electricity procurement, helping us meet our own Scope 3 goals.”
As part of its sustainability initiative, PepsiCo Europe recently revealed plans to eliminate virgin fossil-based plastic in all of its chip bags by 2030.
The company proposes using 100% recycled or renewable plastic instead. The transition will apply to brands including Walkers, Doritos and Lay’s.
Schneider Electric has advised companies, including PepsiCo, on over 150 utility-scale PPA purchases across North America, Europe, India, Australia and Latin America for more than 11,000 megawatts of wind and solar power.
Fifteen of the company’s markets have transitioned to renewable electricity, including the US and Mexico.
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