Together with Schneider Electric, the leading global consultant on corporate renewable purchasing, PepsiCo (NASDAQ:PEP) announces pep+ REnew – one of the first collaborations of its kind, and first in the food and beverage industry – to increase value chain partner access to renewable electricity as part of the company’s goal to achieve net-zero emissions by 2040.
The collaboration aims to accelerate the adoption of renewable electricity and create a more resilient and carbon-efficient food system as part of PepsiCo’s pep+ (PepsiCo Positive) transformation. Specifically, pep+ REnew is designed with two goals: to educate PepsiCo’s value chain partners about their renewable electricity choices, and to quicken the transition to renewable electricity through aggregate power purchase agreements (PPAs) and other renewable electricity procurement options.
“The creation of pep+ REnew directly supports our ambitious goal to achieve net-zero emissions across our value chain by 2040 – one decade earlier than called for in the Paris Agreement,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. “Net-zero cannot happen without our value chain partners taking bold climate action. 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.”
This program was launched to help overcome the challenges many small and medium businesses face when trying to participate in the renewable electricity market. Some organizations may not be large enough to participate on their own and may need education on the specific mechanics of renewable electricity transactions or guidance to navigate through the complexities of a PPA. PepsiCo and Schneider Electric aim to solve for these barriers through pep+ REnew.
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.
“By creating greater access to large-scale renewable electricity, our partnership with PepsiCo aspires to add more renewable electricity capacity to power grids around the world,” said Steve Wilhite, President, Schneider Electric Sustainability Business. “This is a much-needed step as we work towards a net-zero economy and a more sustainable future for all.”
Schneider Electric has advised companies, including PepsiCo, on over 150 utility-scale PPA purchases across North America, Europe, India, Australia and Latin America for a total of more than 11,000 megawatts of wind and solar power. Schneider Electric’s team of leading renewable electricity experts will facilitate a multi-phase education and project selection process to advance supplier progress towards aggregated renewable electricity purchases. The program will be powered by Schneider’s NEO Network™, a global collaboration platform and community designed to accelerate renewable electricity decision-making and decarbonization.
pep+ is the company’s strategic end-to-end transformation with sustainability and human capital at the center of how it will create growth and value by operating within planetary boundaries and inspiring positive change for the planet and people. Fifteen of the company’s markets have already transitioned to renewable electricity – including the US and Mexico, the company’s first and second-largest markets – progress toward its goal of 100% renewable electricity in its direct operations by 2030.