As sustainability becomes more interconnected across industries, companies are placing greater focus on addressing Scope 3 emissions—indirect greenhouse gas emissions generated across supply chains that often account for the largest portion of corporate carbon footprints. For the beauty and packaging industries, this means sustainability efforts are moving beyond internal operations and toward collaboration.
Recently, PepsiCo, Givaudan, Smurfit WestRock, and Statkraft signed a 10-year renewable energy agreement through a Virtual Power Purchase Agreement (VPPA) tied to a wind asset in Spain.
The initiative was created under PepsiCo’s pep+ REnew program, which is designed to reduce emissions across Europe and reflects a broader industry shift toward collaborative decarbonization efforts and long-term climate goals. The program supports more than 250 companies, marking its first renewable electricity cohort in Europe. The VPPA was specifically developed for suppliers, manufacturers, and bottlers to help accelerate their transition to renewable energy.
“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 toward our climate goals,” said Archana Jagannathan, Chief Sustainability Officer at PepsiCo Europe, Middle East, and Africa, in a press release. “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.”
The project centers on a Spain-based wind asset that will be repowered, replacing older turbines with newer, more efficient infrastructure, such as substations and interconnection points, to reduce environmental impact and increase energy output. PepsiCo served as the lead buyer in the deal, aggregating renewable electricity demand from suppliers Givaudan and Smurfit WestRock. In turn, the participating companies gained access to long-term renewable energy without directly purchasing from the wind farm.
“This agreement is a compelling example of how we are bringing sustainable growth to life 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,” said Willem Mutsaerts, Head of Global Procurement and Sustainability at Givaudan, in a statement.
The VPPA is expected to reduce CO₂ emissions by 32,000 metric tons annually and aligns with PepsiCo’s updated climate targets, which include reducing its Scope 3 Energy & Industry emissions by 42% and its Scope 3 Forest, Land & Agriculture emissions by 30% by 2030. These goals are part of the company’s broader commitment to achieving net-zero emissions by 2050 or sooner, while also supporting the sustainability goals of its collaborators.
“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,” continued Mutsaerts.
The supplier engagement model, combined with PepsiCo’s market expertise, is intended to accelerate decarbonization across key markets and build on the company’s first purchase agreement in Spain in 2023.
“This agreement shows how companies of varied sizes can work together to help drive meaningful climate impact,” said Hallvard Grandheim, Executive Vice President of Markets at Statkraft, in a press release. “Statkraft is delighted to support a coalition that brings additional renewable capacity online while enabling businesses across Europe to decarbonize.”
As companies across industries face increasing pressure to deliver measurable and scalable emission reductions, models like this may become increasingly common.