- 10-year virtual power purchase agreement tied to a repowered wind asset in Spain
- Expected to reduce emissions by 32,000 metric tons of CO₂ per year
- Expands supplier-led decarbonization across Europe under a multi-company procurement model
PepsiCo, Givaudan, Smurfit WestRock and Statkraft have signed a 10-year virtual power purchase agreement anchored in a repowered wind project in Spain. The deal reflects a shift in how global companies are tackling Scope 3 emissions across complex supply chains.
The agreement sits within PepsiCo’s pep+ REnew program, which aggregates renewable energy demand across suppliers and partners. By pooling electricity needs, the companies secured long-term access to renewable power that is typically out of reach for smaller buyers acting alone.
The electricity generated is expected to cut emissions by an estimated 32,000 metric tons of CO₂ annually. The impact extends beyond direct operations, targeting emissions embedded in production, packaging and logistics.
Structured Finance Model Expands Access to Clean Power
The deal was structured with support from SE Advisory Services, part of Schneider Electric’s consulting practice. The model combines procurement expertise with supply chain coordination, enabling multiple companies to participate in a single contract.
PepsiCo acted as the lead buyer, bringing together demand from Givaudan and Smurfit WestRock. This cohort-based approach lowers barriers to entry and improves pricing through scale.
“By pairing our market expertise with PepsiCo’s supplier engagement model, we’re accelerating decarbonization across global value chains,” said John Powers, Vice President of Strategic Renewables at Schneider Electric.
The approach aligns with broader market trends where corporate buyers are using virtual PPAs to hedge energy costs while advancing climate targets. For investors, this signals growing sophistication in how corporates manage both carbon and energy price risk.
Corporate Climate Targets Drive Demand for Scalable Solutions
The agreement feeds directly into PepsiCo’s updated climate strategy under its PepsiCo Positive framework. Using a 2022 baseline, the company is targeting a 42% reduction in Scope 3 Energy and Industry emissions and a 30% cut in Scope 3 Forest, Land and Agriculture emissions by 2030.
These targets are part of a Science Based Targets initiative validated pathway to reach net zero emissions by 2050 or earlier.
“This agreement with Statkraft is a further step forward in our journey to reduce emissions not only within our own operations but across our entire value chain,” said Archana Jagannathan, Chief Sustainability Officer, PepsiCo Europe, Middle East and Africa. “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. 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.”
For suppliers, participation offers a pathway to align with major buyers’ decarbonization requirements. For corporates, it strengthens resilience against tightening regulatory scrutiny on Scope 3 disclosures.
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Repowered Wind Asset Boosts Efficiency Without New Land Use
The underlying wind project in Spain is undergoing repowering, replacing older turbines with more efficient technology. This increases electricity output while using existing grid connections, substations and interconnection points.
The strategy reduces environmental impact compared to building new infrastructure from scratch. It also shortens development timelines, enabling faster deployment of clean energy.
“We are proud to collaborate with PepsiCo, Givaudan, and Smurfit WestRockto expand renewable energy capacity in Spain,” said Hallvard Grandheim, EVP Markets, Statkraft. “This agreement shows how companies of varied sizes can work together to help drive meaningful climate impact. Statkraft is delighted to support a coalition that brings additional renewable capacity online while enabling businesses across Europe to decarbonize.”
Repowering is gaining traction across Europe as governments and developers look to maximize output from existing sites. It offers a pragmatic route to scale renewable capacity within constrained permitting environments.
Collaboration Becomes Core to Corporate Decarbonization
The agreement marks the second completed cohort under the pep+ REnew program and its first renewable electricity cohort in Europe. Since launching in 2022, the platform has expanded to support more than 250 companies across multiple regions.
“This agreement is a compelling example of how we are bringing to life sustainable growth 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, Givaudan. “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.”
For executives and investors, the takeaway is clear. Decarbonization is moving beyond individual corporate action toward coordinated, value chain-wide strategies. As regulatory pressure builds and capital shifts toward low-carbon assets, collaborative procurement models like this are likely to become a defining feature of corporate climate action across Europe and beyond.
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