International. The food and beverage specialist announced the launch of its renewable electricity program called pep+ REnew, which will work in collaboration with Schneider Electric, all as part of the company's goal of achieving net-zero emissions by 2040.
The collaboration aims to accelerate the uptake of renewable electricity and create a more resilient and carbon-efficient food system as part of PepsiCo's pep+ (PepsiCo Positive) transformation. Pep+ REnew is designed with two goals: to educate PepsiCo's value chain partners about their renewable electricity options, and to accelerate the transition to renewable electricity through aggregate power purchase agreements (PPAs) and other renewable electricity procurement options.
"The creation of pep+ REnew directly supports our ambitious goal of achieving net-zero emissions across our value chain by 2040, a decade earlier than envisioned in the Paris Agreement," said Jim Andrew, PepsiCo's Chief Sustainability Officer. "The zero-emission target cannot be achieved without our value chain partners taking bold climate action. Through pep+ REnew, we will encourage our partners to reduce their Scope 2 emissions by procuring renewable electricity, helping us meet our own Scope 3 targets."
This program was launched to help overcome the challenges faced by many small and medium-sized enterprises when trying to participate in the renewable electricity market. Some organizations may not be large enough to participate on their own and may require training on the specific mechanics of renewable electricity transactions or assistance in navigating the complexities of a PPA. PepsiCo and Schneider Electric aim to solve these obstacles through pep+ REnew.
For the first phase of pep+ REnew, PepsiCo invited a wide range of value chain partners to apply to participate in the program, with the aim of finalizing a first cohort of buyers for an added PPA by the end of 2022.
"By creating greater access to large-scale renewable electricity, our partnership with PepsiCo aims to add more renewable electricity capacity to power grids around the world," said Steve Wilhite, President of Schneider Electric Sustainability Business. "This is a much-needed step in the work towards a net-zero economy and a more sustainable future for all."
Schneider Electric has advised several companies, including PepsiCo, on more than 150 utility-scale PPA purchases in North America, Europe, India, Australia and Latin America totaling more than 11,000 megawatts of wind and solar.
Schneider Electric's team of renewable electricity experts will facilitate a multi-phase project selection and training process to advance suppliers' progress toward aggregate renewable electricity purchases. The program will be powered by Schneider's NEO Network™, a global collaboration platform and community designed to accelerate decision-making on renewable electricity and decarbonization.
Fifteen of the company's markets have already transitioned to renewable electricity, including the United States and Mexico, the company's first and second largest markets, and are moving toward their goal of achieving 100% renewable electricity in their direct operations by 2030.
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