Change the Game.
The PepsiCo slogan from years ago takes on a new meaning as the American-based global food and beverage conglomerate partners with energy technology firm Schneider Electric on an initiative to increase value chain access to utility-scale renewable energy.
The pep+Renew collaboration will engage PepsiCo and Schneider in common goal to acceleate the adoption of renewable electricity and a more carbon-efficient food system. PepsiCo has announced plans to achieve net-zero emissions by 2040.
The pep+Renew program will seek to educate PepsiCo supply chain partners on renewable energy choices, while also stepping up the pace of power purchase agreements (PPA) and other clean energy procurement options. In other words, PepsiCo aims to help its suppliers and join in brokering of renewable PPAs.
“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.”
The U.S. Environmental Protection Agency defines scopes as elements of reporting on emissions sources. For example, Scope 2 are indirect greenhouse gas emissions associated with a customer’s purchase of electricity, such as coming from a utility-owned gas or coal-fired power plant, etc.
Scope 3 includes emissions from activities not owned by the reporting company, but impacted within the value chain. Scope 1 are direct GHG emissions sourced within a company’s operations, such as a manufacturing plant to produce soft drinks or chips, in PepsiCo’s case.
The move, the two companies say, will help overcome challenges to renewable PPAs faced by many small and medium businesses struggling to find a means of participation in clean energy electricity markets. The pep+REnew will include value chain partners or suppliers in efforts to finalize an aggregate PPA by the end of the year.
"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, in addition to its work on microgrids and other means of energy efficiency and on-site clean energy delivery, has advised more than 150 utility-scale PPAs globally. This includes more than 11,000 MW of wind and solar deals.
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(Rod Walton, senior editor for EnergyTech, is a 14-year veteran of covering the energy industry both as a newspaper and trade journalist. He can be reached at [email protected]).
