PepsiCo has signed a 10-year virtual power purchase agreement (VPPA) to accelerate emissions reduction across its European operations and wider value chain, deepening its push to tackle Scope 3 emissions through supplier collaboration.
The agreement brings together Statkraft, Givaudan and Smurfit Westrock, and is tied to a repowered onshore wind farm in Spain. The project will upgrade existing turbines with newer, more efficient technology, enabling higher renewable output while reusing grid infrastructure, reducing both environmental impact and development timelines.
The deal is expected to avoid approximately 32,000 metric tonnes of CO₂ emissions annually, with benefits extending beyond PepsiCo’s own operations to include emissions across manufacturing, packaging and logistics within its European supply chain.
The structure has been enabled through PepsiCo’s pep+ (PepsiCo Positive) REnew programme, which aggregates electricity demand across suppliers and partners. By pooling demand, the programme allows companies of varying sizes to access long-term renewable energy contracts that are typically difficult to secure independently. The initiative was developed with advisory support from Schneider Electric, which helped structure and aggregate the multi-buyer agreement.
“This agreement demonstrates how we can accelerate value chain decarbonisation by working collaboratively with our suppliers and partners,” said Archana Jagannathan, Chief Sustainability Officer, Europe at PepsiCo. “By aggregating demand across our value chain, we can help unlock renewable electricity at scale and support our pep+ ambition.”
The VPPA model allows participating companies to financially support renewable energy generation without directly taking physical delivery of electricity, instead receiving environmental attributes and price hedging benefits. This mechanism has become increasingly popular among global corporations seeking to decarbonise operations while supporting new clean energy capacity.
“Corporate power purchase agreements like this play a critical role in enabling new renewable energy capacity and supporting the energy transition in Europe,” said Anders Egelrud, Executive Vice President for Europe at Statkraft.
The collaboration also highlights a growing shift toward multi-company procurement models, where large corporates work alongside suppliers to address emissions across the full value chain, particularly Scope 3, which often accounts for the majority of total emissions.
“This collaboration is an important step in reducing Scope 3 emissions and advancing shared climate goals,” said Gilles Andrier, CEO of Givaudan.
The renewable energy generated from the Spanish wind project will contribute to PepsiCo’s European electricity needs, supporting its broader goal of increasing renewable energy usage and lowering carbon intensity across key markets in the region.
The agreement aligns with PepsiCo’s wider pep+ sustainability strategy, which focuses on climate action, sustainable sourcing and circular packaging. The company has committed to achieving net-zero emissions by 2040, with interim science-based targets that include reducing absolute greenhouse gas emissions across its value chain.
The deal also reflects accelerating momentum in Europe’s corporate renewable energy market, where regulatory support, grid modernisation and maturing PPA structures are enabling more complex, cross-company agreements aimed at scaling clean energy adoption.
