Beverage majors team up to drive suppliers’ use of renewable energy

A group dubbed the REfresh Alliance, which also features Pernod Ricard and Heineken, wants to help suppliers “remove barriers” they may face in using renewable energy and to share best practice.

The new organisation is working with more than 300 suppliers “to discuss their involvement in the programme”, a statement said.

“We aim to bring together suppliers, companies and providers through a tailored scheme for the beverage industry,” a spokesperson for the REfresh Alliance told Just Drinks.

The spokesperson pointed to the use of “power purchase agreements” and “energy attribute certificates”.

“The solutions are tailored to the needs and circumstances of beverage companies and acknowledge their distinct operational requirements and geographical footprint,” the spokesperson added.

A number of the world’s largest drinks companies have set targets for the use of renewable energy in their operations. However, the bulk of the emissions generated by multinationals tends to be defined as Scope 3 and emanate from their supply chains.

Hervé Le Faou, Heineken’s chief procurement officer, 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.”

The REfresh Alliance spokesperson said the companies want to “make cost-effective projects more accessible” to overcome “three main barriers”.

Suppliers, the spokesperson said, can “lack expertise” in switching to renewable energy. The consortium, they added, could also help suppliers “negotiate better terms and access economically-viable renewable energy solutions”.

The consortium is also aiming to help suppliers “with insufficient load capacity access renewable energy solutions, such as virtual power purchase agreements”.

Jane Liang, the chief procurement officer at Diageo, said: “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. We are calling on all companies and suppliers within the industry to join us and support the industry in its transition to net zero.”

Just Drinks