REfresh Alliance Targets Net Zero in Beverage Industry

Ten of the world's leading beverage companies are now unified under the REfresh Alliance, an ambitious initiative aimed at accelerating the adoption of renewable energy within their global supply chains.

This consortium features prominent players such as Coca-Cola and Heineken, who are taking proactive steps to address the urgent need for decarbonisation in the beverage industry.

Their goal? To create a unified approach that optimises resources, boosts educational opportunities and minimises barriers to renewable energy – paving a robust path towards achieving net zero emissions globally.

Managed by Enel X, a leader in energy solutions, the REfresh Alliance provides participating companies access to renewable energy sources, best practices in the industry and expert advisory services.  This support is crucial in simplifying their journey towards sustainable operations.

Additionally, the alliance has established an educational platform specifically designed to empower companies with the knowledge and skills to launch their own renewable energy initiatives.

This pooling of resources and shared learning can potentially lead to substantial cost savings and significant reductions in energy footprints, which might be challenging for companies to achieve on their own.

Through this collective effort, these beverage companies aim to expedite the transition to renewable energy throughout their supply chains.

This strategic collaboration is unprecedented and signals a broader move within the industry towards joint action in combating climate issues.

Addressing the complex challenge of Scope 3 emissions

The main challenge these companies face in reducing their carbon emissions lies in tackling their Scope 3 emissions.

These emissions are indirect and originate from activities across the supply chain rather than from the companies directly.

They can represent about 90% of a beverage company’s total carbon footprint, thus becoming a crucial aspect of achieving their net zero goals.

Scope 3 emissions are tricky: they stem from the practices of suppliers and partners, often beyond the direct control of the brands themselves.

Many suppliers face hurdles in adopting greener solutions, largely due to limitations in capability, resource availability or lack of information on cost-effective options.

The REfresh Alliance is committed to dismantling these barriers by providing suppliers with the necessary tools to make a successful shift to renewable energy.

So far, the Alliance has brought more than 300 suppliers into its fold, engaging them in detailed discussions about renewable options available.

Ralf Peters, Coca-Cola Europacific Partners’ Chief Procurement Officer, says: “We have long 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.”

Chief Procurement Officer of Heineken Hervé Le Faou adds: “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.”

Aiming for global impact in the beverages industry

Initially focusing on Europe and North America, the REfresh Alliance plans to leverage the developed renewable energy infrastructures of these regions for quicker results.

However, the ultimate goal is to roll out the initiative globally, inviting more companies and suppliers from emerging markets to join and benefit from accessible renewable resources.

This programme goes beyond just connections; it spearheads a proactive learning environment that delivers essential educational resources, enabling companies to implement new green solutions effectively.

“The climate crisis is the most pressing issue of our time and the transition to Net Zero is becoming increasingly important," says Jane Liang, Chief Procurement Officer of Diageo.

"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.”

With a clear focus on the pervasive Scope 3 emissions common throughout the industry, the REfresh Alliance aims to make a significant impact on the global race to net zero.

This collaborative endeavour strengthens the foundation for beverage companies to tackle sustainability challenges, ensuring they are part of a comprehensive, industry-wide strategy to reduce emissions worldwide.

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