PepsiCo (NASDAQ: PEP), Givaudan, Smurfit WestRock (NYSE: SW) and Statkraft announced a 10-year Virtual Power Purchase Agreement for a wind asset in Spain that is undergoing repowering, according to a press release statement.

The agreement was structured under PepsiCo's pep+ REnew program, with assistance from SE Advisory Services, Schneider Electric's consulting practice. PepsiCo served as the lead buyer, aggregating renewable electricity demand with suppliers Givaudan and Smurfit WestRock.

The renewable electricity generated through the agreement is expected to contribute to an estimated 32,000 metric tons of CO₂ emissions reductions per year. The wind asset will be repowered with more efficient turbines, increasing renewable electricity output while reusing existing grid infrastructure.

This represents the second completed cohort under the pep+ REnew program and the first renewable electricity cohort in Europe. The program, launched in 2022, now supports over 250 companies across North America, Latin America, Europe, and Asia-Pacific.

"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," said Archana Jagannathan, Chief Sustainability Officer, PepsiCo Europe, Middle East and Africa.

PepsiCo has set 2030 climate targets using a 2022 baseline, aiming for a 42% reduction in Scope 3 Energy & Industry emissions and a 30% reduction in Scope 3 Forest, Land & Agriculture emissions. The company targets net zero emissions by 2050 or sooner under its Science Based Targets initiative pathway.

This marks PepsiCo's second power purchase agreement in Spain, following the first agreement that went live in 2023.