Beverage CPOs Unite in Renewable Energy Push
10 major beverage companies, including Coca-Cola and Heineken, have joined forces under the REfresh Alliance, a new initiative focused on ramping up the adoption of renewable energy across the industry's supply chains.
The collaboration aims to accelerate progress towards Net Zero by tackling the substantial emissions produced by supply chain activities, known as Scope 3 emissions.
Reducing carbon emissions is a complex task for global beverage companies, particularly due to the challenge of Scope 3 emissions.
These emissions, which include all indirect emissions produced across a company's supply chain, often represent up to 90% of a beverage company’s total carbon footprint.
Unlike direct emissions from company operations, Scope 3 emissions come from sources that are more difficult to manage, such as suppliers’ practices and logistics.
The REfresh Alliance seeks to address this significant challenge by pooling resources and expertise. Managed by Enel X, a provider of energy solutions, the initiative provides its members access to renewable energy suppliers, best practices and strategic advisory support.
By working together, members of the alliance can educate and assist suppliers to transition to renewable energy, facilitating decarbonisation across entire supply chains.
- Bacardi
- Carlsberg Group
- Constellation Brands
- Diageo
- HEINEKEN
- Molson Coors Beverage Company
- Pernod Ricard
- The Coca-Cola Company
- Whyte & Mackay
Chief Procurement Officer of Coca-Cola Europacific Partners, Ralf Peters, emphasises the need for collective action: “We have long recognised the need for industry collaboration to deliver the most impact and to accelerate the transition across our supply chains.
"Supporting our supply partners in their transition to renewables is one of the most impactful ways to decarbonise their businesses and ours.”
Pooling resources to drive change
An important feature of the REfresh Alliance is its educational platform, which equips industry players with the knowledge to implement renewable energy strategies effectively.
By making this information widely accessible, the alliance lowers the barriers that individual companies or suppliers may face, such as limited resources or unfamiliarity with affordable renewable energy options.
The programme has already engaged more than 300 suppliers, sparking discussions and outlining clear pathways for adopting renewable solutions.
This structured support encourages suppliers to integrate renewable energy into their operations, a shift that would be more difficult without the backing of an industry-wide initiative.
Heineken’s Chief Procurement Officer, Hervé Le Faou, points out the shared challenge and potential of collaboration: “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.”
This approach allows the beverage industry to tackle large-scale emissions that an individual company might struggle to address alone. By working collectively, the alliance creates a unified approach that benefits all parties involved, from multinational corporations to smaller suppliers looking to improve their environmental footprint.
CPOs driving global climate growth
Initially, the REfresh Alliance plans to focus its efforts on Europe and North America, regions with existing renewable energy infrastructure that can facilitate faster results.
However, the alliance intends to expand its scope over time, bringing in more beverage companies and enabling suppliers in regions with developing renewable energy markets to access the necessary resources.
The initiative does not stop at connecting companies with green energy sources. It also promotes a proactive learning environment that prepares businesses to implement renewable practices effectively. This blend of action and education underlines the alliance’s comprehensive approach to sustainability.
Jane Liang, Chief Procurement Officer at Diageo, stresses the importance of this collective mission: “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. The REfresh Alliance will drive collective action within the industry to accelerate the adoption of renewable energy.”
The formation of the REfresh Alliance reflects a growing trend within industries to collaborate on sustainability challenges. By joining this effort, beverage companies demonstrate their commitment to meaningful action, reinforcing that achieving Net Zero requires a unified, industry-wide approach.
The partnership paves the way for a shared path toward decarbonisation, setting an example for how industries can pool efforts to tackle global sustainability challenges.
Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain.
Procurement Magazine is a BizClik brand.