Beverage brands collaborate to boost adoption of renewable energy
Ten multinational beverage companies have teamed up to form the REfresh Alliance, a new industry-wide consortium aimed at accelerating the supply chain’s adoption of renewable energy.
The new initiative invites additional companies from across the beverage industry to pool and scale their resources to remove barriers to renewable energy adoption in the supply chain, provide education on best market practices and support the industry’s transition to net zero.
The companies part of the partnership include Bacardi, Carlsberg Group, Constellation Brands, Diageo, Heineken, Molson Coors Beverage Company, Pernod Ricard, The Coca-Cola Company and Whyte & Mackay.
The programme is managed by energy solution provider, Enel X. Through its Advisory Services division, Enel X connects the participants with renewable energy providers and supports renewable energy transactions, aiming to accelerate renewable energy adoption. The programme also features a dedicated educational platform to help programme participants prepare for renewable energy adoption. These features, along with aggregating demand for renewable energy, will help the Alliance to provide cost effective and targeted solutions across the industry in a way that can’t be achieved through individual action.
Scope 3 emissions, which are not directly produced by a company but from its supply chain, often account for approximately 90% of a beverage company’s carbon footprint. Suppliers continue to face a number of barriers to decarbonisation. For example, lack of capabilities, access to information and availability of economically viable projects. REfresh has already engaged with more than 300 suppliers to discuss their involvement in the program as it aims to support their adoption of renewable energy solutions.
Ralf Peters, chief procurement officer of Coca-Cola Europacific Partners (CCEP), and chairman, Coca-Cola Cross Enterprise Procurement Group (CEPG), said the companies recognised the need for industry collaboration to deliver the most impact and to accelerate the transition across our supply chains.
“I know from my experience across the Coca-Cola system that supporting our supply partners is a key part of our sustainability action – and that encouraging them to transition to renewables is one of the most impactful things we can do to help decarbonise their businesses, and to do the same in ours,” Peters stated.
Hervé Le Faou, chief procurement officer of Heineken, said: “Scope 3 emissions are one of the biggest challenges that the industry faces in delivering on our net zero ambitions. We must work together to identify areas of our supply chains where we can pool our resources to accelerate this transition for our suppliers. We look forward to working with other beverage companies to achieve this and accelerate the decarbonisation of our industry.”
Jane Liang, chief procurement officer of Diageo, noted the climate crisis is the most pressing issue of our time and the transition to net zero is becoming increasingly important.
“However, there is only so much we can do as individual businesses,” he said. “The REfresh Alliance will drive collective action within the industry to accelerate the adoption of renewable energy. We are calling on all companies and suppliers within the industry to join us and support the industry in its transition to net zero.”
REfresh intends to initially launch in the mature renewable energy markets of Europe and North America, where it will be able to use existing networks to accelerate impact in support of the industry’s decarbonisation efforts. As it continues to grow, the consortium will look to expand to other markets and welcome businesses from across the beverage industry to join it in supporting suppliers in their decarbonisation journeys.
