PepsiCo, Givaudan, Smurfit Westrock and Statkraft Sign 10‑Year Renewable Energy Agreement to Advance Value Chain Decarbonization Across Europe

Rhea-AI Summary

PepsiCo (SW), Givaudan, Smurfit Westrock and Statkraft signed a 10-year Virtual Power Purchase Agreement (VPPA) for a repowering wind asset in Spain under the pep+ REnew program, creating the program's first European renewable electricity cohort.

The VPPA is expected to avoid an estimated 32,000 metric tons of CO₂ per year. PepsiCo updated its 2030 climate goals from a 2022 baseline: -42% Scope 3 Energy & Industry and -30% Scope 3 FLAG, aligned with an SBTi-validated pathway to net zero by 2050 or sooner.

Positive

• 10-year VPPA signed to secure long-term renewable electricity
• 32,000 metric tons CO₂/year estimated emissions reductions
• Repowering in Spain to increase output using existing grid infrastructure
• First European renewable cohort under pep+ REnew, expanding program reach
• Aggregated demand across buyers delivered more favorable commercial terms
• PepsiCo 2030 targets: -42% Scope 3 Energy & Industry; -30% Scope 3 FLAG (2022 baseline)

Negative

• None.

News Market Reaction – SW

+1.30%

1 alert

+1.30% Session close to close

$21.26B Market Cap

0.0x Rel. Volume

In the Apr 28 session, SW gained 1.30%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights a 10‑year virtual power purchase agreement in Spain that is expected to...

Analysis

This announcement highlights a 10‑year virtual power purchase agreement in Spain that is expected to cut about 32,000 metric tons of CO₂ emissions annually, aligning Smurfit Westrock with large customers’ decarbonization goals. It follows recent earnings, investor targets for 2026–2030, and capacity rationalization steps. Investors may watch how such collaborations affect long-term procurement costs, customer relationships in Europe, and how they complement existing capital plans under the active Form S-3ASR shelf registration.

Key Figures

VPPA term: 10 years CO₂ reduction: 32,000 metric tons per year Program participants: over 250 companies +3 more

6 metrics

VPPA term 10 years Duration of virtual power purchase agreement in Spain

CO₂ reduction 32,000 metric tons per year Estimated emissions reductions from renewable electricity agreement

Program participants over 250 companies Companies supported globally by pep+ REnew platform since 2022

Scope 3 Energy & Industry goal 42% reduction by 2030 PepsiCo target vs 2022 baseline under pep+ strategy

Scope 3 FLAG goal 30% reduction by 2030 PepsiCo Forestry, Land & Agriculture emissions target vs 2022 baseline

Net zero target year 2050 or sooner SBTi-validated pathway for PepsiCo’s net zero emissions goal

Historical Context

5 past events · Latest: Apr 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 15	Earnings date notice	Neutral	-1.7%	Announced timing and webcast details for Q1 2026 earnings release.
Feb 11	Investor day update	Positive	+9.9%	Outlined 2026–2030 financial targets and capital allocation priorities.
Feb 11	Earnings results	Positive	+9.9%	Reported Q4 and FY 2025 results with EBITDA and 2026 guidance.
Feb 09	Capacity rationalization	Neutral	+3.9%	Announced permanent closure of a La Tuque paper machine and extrusion site.
Feb 03	Dividend declaration	Neutral	-2.5%	Declared quarterly dividend of $0.4523 per ordinary share with March payment.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent fundamental and strategic updates (earnings, investor day) have generally seen positive price alignment, while routine items like dividends and event notices showed mild negative or muted reactions.

Recent Company History

Over the last few months, Smurfit Westrock has focused on fundamentals and portfolio shaping. The Feb 11, 2026 investor update and FY 2025 results both saw strong positive reactions, as the company outlined targets including adjusted EBITDA and margin expansion. Earlier in February, it announced closure of a Quebec paper machine to address scale and cost. A quarterly dividend of $0.4523 per share and the upcoming Q1 2026 earnings date also featured. Today’s Europe-focused renewable energy agreement fits alongside this broader efficiency and sustainability trajectory.

Key Terms

virtual power purchase agreement, scope 3, science based targets initiative, sbtI, +2 more

6 terms

virtual power purchase agreement financial

"announced a 10‑year Virtual Power Purchase Agreement (VPPA) with an underlying"

A virtual power purchase agreement is a financial contract where a buyer agrees to pay a fixed price for electricity generated by a specific renewable project while the actual power stays on the local grid. It’s like locking in the price for apples from a distant farm while still shopping at your neighborhood market; investors watch these deals because they can stabilize future energy costs, create predictable cash flows or liabilities, and support a company’s environmental claims, all of which affect valuation and risk.

scope 3 technical

"targeting a 42% reduction in Scope 3 Energy & Industry emissions and a 30%"

Scope 3 describes all greenhouse gas emissions that occur upstream and downstream of a company’s direct operations—things like emissions from suppliers, transportation, product use, and disposal. Think of it as the hidden carbon footprint tied to everything a business buys, sells, or enables; it matters to investors because these indirect emissions can drive regulatory costs, supply-chain disruption, consumer preference shifts, and long-term valuation risk that aren’t visible on a company’s factory floor or utility bill.

science based targets initiative regulatory

"These ambitions form part of PepsiCo's broader, Science Based Targets initiative (SBTi)"

A global nonprofit program that helps companies set and verify greenhouse gas reduction targets that match what climate science says is needed to avoid dangerous warming. Think of it like a certified road map and stamp of approval showing a company has a credible plan to cut emissions; investors use it as a shorthand for firms likely to manage climate risks, regulatory changes, and future costs better than peers without such verified plans.

sbtI regulatory

"Science Based Targets initiative (SBTi) validated pathway to achieve net zero"

An independent initiative that reviews and approves corporate plans to cut greenhouse gas emissions so they align with science-based limits on global warming. For investors, an SBTi-approved target is like a certified roadmap: it signals a company is measuring its climate risks, setting credible reduction goals, and may be better positioned to avoid future regulatory, physical, or reputational costs tied to climate change.

net zero technical

"validated pathway to achieve net zero emissions by 2050 or sooner, underscoring"

Net zero means balancing the greenhouse gases a company releases with the gases it removes or offsets so its overall contribution to warming is zero. Investors watch net zero commitments because they shape future costs, regulatory and legal risk, and public reputation—like a household balancing its budget to avoid debt—so a company's progress (or failure) can affect profits, asset values and long‑term financial stability.

repowering technical

"with an underlying wind asset in Spain which is undergoing repowering. The agreement"

Repowering is upgrading an existing power facility—such as a wind farm, solar plant or thermal station—by replacing or improving major equipment to increase output, efficiency or lifespan. Think of it as renovating a house to add modern systems and more usable space: it can boost future revenue and lower operating costs, but requires upfront investment, permits and carries construction and regulatory risks that affect an asset’s value for investors.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PepsiCo, Givaudan, Statkraft and Smurfit Westrock announce a renewable energy initiative enabled by the pep+ REnew program, supported by Statkraft, to reduce emissions across Europe.

PURCHASE, N.Y., April 28, 2026 /PRNewswire/ -- PepsiCo (NASDAQ: PEP), Givaudan, Smurfit WestRock and Statkraft have announced a 10‑year Virtual Power Purchase Agreement (VPPA) with an underlying wind asset in Spain which is undergoing repowering. The agreement strengthens progress toward shared sustainability goals

Under the pep+ REnew program, PepsiCo worked with SE Advisory Services, Schneider Electric's global consulting practice, to structure and deliver its second supply‑chain VPPA cohort under the pep+ REnew program. SE Advisory Services helped aggregate load across PepsiCo, Givaudan, and Smurfit WestRock, opening access to long‑term renewable electricity opportunities and advancing progress toward net‑zero targets.

Launched in 2022, pep+ REnew has grown into a global platform supporting over 250 companies across North America, Latin America, Europe, and APAC. This VPPA represents the program's second completed cohort and the first renewable electricity cohort in Europe.

The renewable electricity generated through this agreement is expected to contribute to an estimated 32,000 metric tons of CO₂ emissions reductions per year. This initiative further accelerates PepsiCo's efforts to reduce value chain emissions as part of PepsiCo Positive (pep+), the company's end-to-end transformation strategy. As part of pep+, PepsiCo has updated its 2030 climate goals using a 2022 baseline, targeting a 42% reduction in Scope 3 Energy & Industry emissions and a 30% reduction in Scope 3 Forest, Land & Agriculture (FLAG) emissions. These ambitions form part of PepsiCo's broader, Science Based Targets initiative (SBTi) validated pathway to achieve net zero emissions by 2050 or sooner, underscoring the company's aim to drive meaningful climate action across its global value chain.

"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. By collaborating with PepsiCo's value chain, we aim to expand access to renewable energy solutions, support the transition to cleaner power, and accelerate progress toward our climate goals. Collaborations like this demonstrate how action with stakeholders across the value chain and long‑term ambitions can help drive meaningful change for our business, members of our value chain, and the planet."

A First-of-its-Kind European Cohort Under pep+ REnew‑‑‑

The VPPA was developed under PepsiCo's pep+ REnew program, which helps suppliers, manufacturers, and bottlers transition to renewable electricity, and marks the second successful signing of a cohort VPPA under the pep+ REnew Program. As part of this cohort, PepsiCo served as the lead buyer, aggregating renewable electricity demand with two strategic suppliers: Givaudan and Smurfit Westrock.

By aggregating demand, the parties were able to secure favorable commercial terms and gain access to long-term renewable energy opportunities typically available only to large buyers.

"This agreement is a compelling example of how we are bringing to life sustainable growth with customers. By joining forces on renewable electricity in this way, we are translating shared ambitions into tangible climate action, helping power our progress toward a low‑carbon future," Willem Mutsaerts, Head of Global Procurement and Sustainability, Givaudan said. "Collaboration of this kind lies at the heart of Givaudan's 2030 strategy, demonstrating how working hand‑in‑hand with customers and partners can accelerate change that delivers benefits throughout the value chain."

"By pairing our market expertise with PepsiCo's supplier engagement model, we're accelerating decarbonization across global value chains." said John Powers, Vice President of Strategic Renewables at Schneider Electric.

Repowering for Greater Efficiency and Lower Impact

The wind asset in Spain will be repowered with more efficient turbines, increasing renewable electricity output while reusing existing grid infrastructure such as substations and interconnection points. This approach minimizes additional environmental impact and accelerates the delivery of new renewable energy to the grid.

"We are proud to collaborate with PepsiCo, Givaudan, and Smurfit WestRockto expand renewable energy capacity in Spain," Hallvard Grandheim, EVP Markets, Statkraft. "This agreement shows how companies of varied sizes can work together to help drive meaningful climate impact. Statkraft is delighted to support a coalition that brings additional renewable capacity online while enabling businesses across Europe to decarbonize."

This project is PepsiCo's second power purchase agreement in Spain; the first went live in 2023, further underscoring the company's aim to accelerate clean energy deployment across key markets.

About Statkraft
Statkraft is an international leader in hydropower and Europe's largest producer of renewable energy. The group generates electricity from water, wind, solar, and gas, and is a major player in energy trading worldwide. Statkraft employs 6,500 people in 20 countries. The company is an industry-leading provider of PPAs, enabling the green transition of Corporates and Industrials across Europe. Through its origination business, Statkraft enables liquid and well-functioning energy markets and is helping both energy producers and consumers manage market risks through tailored hedging solutions. The company is continuously adapting its offering to evolving customer needs and new market entrants.

About Givaudan
Givaudan is a global leader in Fragrance & Beauty and Taste & Wellbeing. We celebrate the beauty of human experience by creating happier, healthier lives with love for nature. Together with our customers we deliver food experiences, craft inspired fragrances and develop beauty and wellbeing solutions that make people look and feel good. In 2025, Givaudan employed over 17,500 people worldwide and achieved CHF 7.5 billion in sales with a free cash flow of 14.1%. With a heritage that stretches back over 250 years, we are committed to driving long-term, purpose-led growth by improving people's health and happiness and increasing our positive impact on nature. This is Givaudan. Human by nature. Discover more at www.givaudan.com.

About Smurfit Westrock
Smurfit Westrock (NYSE: SW, LSE: SWR) is a leading provider of paper-based packaging solutions in the world, with approximately 97,000 employees across 40 countries. More information about the company, its businesses and solutions can be found at smurfitwestrock.com. Investors can access information included in the Investor Relations section of the website at investors.smurfitwestrock.com.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and drinks, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that places sustainability at the center of our business strategy, seeking to drive growth and build a stronger, more resilient future for PepsiCo and the communities where we operate. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

About SE Advisory Services
SE Advisory Services, Schneider Electric's global consulting practice, helps organizations turn bold energy, sustainability and digitalization ambitions into measurable impact. As part of the world's most sustainable company we combine deep expertise, intelligent software and global implementation, and to drive transformation across energy management, risk management and resilience, efficiency and electrification, decarbonization and nature-based solutions, cybersecurity, and asset performance management. Operating in over 100 countries, we turn complex challenges into competitive advantage.

To learn more about our solutions, visit SEadvisoryservices.com.

Media Contact:

Rachel Kent
Rachel.kent@pepsico.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/pepsico-givaudan-smurfit-westrock-and-statkraft-sign-10year-renewable-energy-agreement-to-advance-value-chain-decarbonization-across-europe-302755397.html

SOURCE PepsiCo, Inc.

FAQ

What is the length and nature of the PepsiCo (SW) renewable energy agreement announced April 28, 2026?

It is a 10-year Virtual Power Purchase Agreement (VPPA) secured by multiple buyers. According to the company, the VPPA covers a repowered wind asset in Spain and forms the first European renewable electricity cohort under pep+ REnew.

How much CO₂ reduction does the VPPA with Statkraft for PepsiCo (SW) and partners expect to achieve annually?

About 32,000 metric tons of CO₂ per year are estimated to be avoided. According to the company, this estimate reflects the renewable electricity generated by the repowered Spanish wind asset under the agreement.

Which companies joined PepsiCo (SW) in the pep+ REnew European cohort VPPA announced April 28, 2026?

PepsiCo joined with Givaudan, Smurfit Westrock, and Statkraft in the cohort. According to the company, PepsiCo acted as lead buyer and aggregated demand with Givaudan and Smurfit Westrock to secure the VPPA.

How does the Spain wind asset repowering affect renewable output for the PepsiCo (SW) VPPA?

Repowering will use more efficient turbines to increase renewable electricity output while reusing existing grid infrastructure. According to the company, this minimizes additional environmental impact and speeds delivery of clean power to the grid.

How does this VPPA under pep+ REnew relate to PepsiCo (SW)'s 2030 climate targets?

The VPPA supports PepsiCo's updated 2030 aims: -42% Scope 3 Energy & Industry and -30% Scope 3 FLAG from a 2022 baseline. According to the company, these targets align with an SBTi-validated pathway to net zero by 2050 or sooner.

Will the pep+ REnew VPPA expand access to long-term renewable energy for smaller suppliers to benefit PepsiCo (SW)?

Yes — aggregating load enabled smaller suppliers to access long-term renewables typically reserved for large buyers. According to the company, SE Advisory Services helped aggregate demand across participants to secure favorable commercial terms.