PepsiCo and sustainability-focused energy and automation digital solutions provider Schneider Electric announced today the launch of pep+ REnew, a new collaboration aimed at addressing the climate impact of the food and beverage giant’s supply chain by helping its suppliers, particularly small businesses, access renewable energy.
The new collaboration aims to bolster the adoption of renewable electricity and create a more carbon-efficient food system. The initiative is designed with the goals to educate PepsiCo’s value chain partners about their renewable electricity choices, and accelerating the transition to renewable electricity through power purchase agreements (PPAs) and other renewable electricity procurement options.
Steve Wilhite, President, Schneider Electric Sustainability Business, said:
“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. This is a much-needed step as we work towards a net-zero economy and a more sustainable future for all.”
Emissions created in companies’ value chains typically constitute the major proportion of their climate impact, yet as they are created in areas outside of companies’ direct control, they are often the most difficult to address.
Together, the two companies aim to solve barriers faced by many small and medium businesses when trying to participate in the renewables market, such as the need for education on the specific mechanics of renewable electricity transactions, among others. Schneider Electric’s team of renewable electricity experts will facilitate an education and project selection process to advance supplier progress towards aggregated renewable electricity purchases.
PepsiCo stated that under the program, it aims to finalize a first buyer’s cohort for an aggregate PPA by the end of 2022.
The initiative forms part of PepsiCo’s of pep+ sustainability framework, launched in September 2021. The program encompasses a broad range of Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. initiatives across agriculture practices, climate, water and packaging sustainability, and consumer health. PepsiCo stated that the new initiative also supports the company’s target to achieve net zero emissions by 2040, announced in January last year.
Jim Andrew, Chief Sustainability Officer, PepsiCo, said:
“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. 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.”
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