PepsiCo, Givaudan & More: A 10-Year Renewable Energy Treaty

PepsiCo, Givaudan, Smurfit WestRock and Statkraft have announced a 10-year Virtual Power Purchase Agreement (VPPA).

The VPPA is set to take over an underlying wind asset in Spain that is currently undergoing repowering.

The agreement aims to strengthen renewable electrification, progress to net zero goals and decarbonisation across all companies.

A 10 year energy agreement

PepsiCo worked with SE Advisory Services, Schneider Electric’s global consulting practice, under the pep+ REnew programme to structure and deliver the company’s second supply chain VPPA cohort.

The advisory aided in load accumulation across PepsiCo, Givaudan and Smurfit WestRock to open long-term renewable energy opportunities and advance the progress made towards net zero goals.

“By pairing our market expertise with PepsiCo’s supplier engagement model, we’re accelerating decarbonisation across global value chains,” says John Powers, Vice President of Strategic Renewables at Schneider Electric. 

Collectively, the renewable energy from this agreement is projected to contribute approximately 32,000 tonnes of CO₂ emissions reductions annually.

The treaty actively accelerates PepsiCo’s aim to reduce value chain emissions.

The VPPA was developed under PepsiCo’s pep+ REnew programme which aims to help suppliers, manufacturers and bottlers transition to renewable energy.

“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,” says 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.” 

By signing the treaty, PepsiCo marks its second successfully signed VPPA under its programme.

The company served as the lead buyer for the agreement which is why aggregation of renewable energy demand will be carried out by Givaudan and Smurfit WestRock. 

“As a global leader in paper-based packaging, we are working towards a net zero future," says Edwin Goffard, President of Corrugated and Consumer Packaging Europe, at Smurfit WestRock.​​​​​​​

"This agreement shows how our commitment to clean energy is helping power real and tangible progress.

"By adding renewable electricity to the power grid and supporting local economic development, this is another step forward on our sustainability journey."

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A pep+ European Cohort

Launched in 2022, pep+ REnew has grown into a global platform supporting more than 250 companies across North America, Latin America, Europe, and APAC. 

The VPPA not only represents the programme's second completed cohort, but the first renewable electricity cohort in Europe.

As part of pep+, PepsiCo has updated its 2030 climate targets using a baseline from 2022.

The company is targeting a 42% reduction in Scope 3 energy and industry emissions, as well as a 30% reduction in forest, land and agriculture Scope 3 emissions.

These goals form part of PepsiCo’s broader, Sciences Based Targets initiative validated pathway to achieve net zero emissions by the latest date of 2050.

“This agreement is a compelling example of how we are bringing to life sustainable growth with customers,” says Willem Mutsaerts, Head of Global Procurement and Sustainability, Givaudan.

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.

“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.” 

Repowering for efficiency 

The wind energy asset in Spain is set to be repowered with more efficient turbines.

The aim of repowering is to increase renewable energy output while reusing grid infrastructure like substations and interconnection points, building upon the company’s circular economy goals.

“We are proud to collaborate with PepsiCo, Givaudan, and Smurfit WestRockto expand renewable energy capacity in Spain,” says Hallvard Granheim, 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 decarbonise.” 

This circular approach is set to be taken due to it minimising additional environmental impact while accelerating renewable energy delivery to the grid.

To date, this project is PepsiCo’s second PPA in Spain, underscoring the company’s aim to accelerate clean energy deployment.