Coca-Cola and Heineken Address Scope 3 in Manufacturing

Leading global beverage manufacturers are coming together through a new initiative known as the REfresh Alliance, aiming to significantly accelerate the adoption of renewable energy within their supply chains.

Coca-Cola and Heineken are part of this impressive alliance, highlighting the urgency to decarbonise the sector amidst growing environmental concerns.

The aim of the alliance is to collate resources, enhance educational opportunities and mitigate challenges related to the adoption of renewable energy, in order to forge a united path towards achieving Net Zero emissions across manufacturing. 

Managed by Enel X, a known provider of energy solutions, the REfresh Alliance encourages global beverage manufacturers to invest in their sustainability.

Members have the advantage of connecting with renewable energy vendors, accessing industry-best practices, and receiving advisory support to navigate the complexities of sustainable transformations.

To alliance also offers a specialised educational platform designed for industry stakeholders.

This tool is geared towards equipping participants with the essential skills and knowledge necessary to confidently undertake renewable energy projects.

This collaborative effort provides a substantial opportunity to lower both costs and the ecological impacts of production, which would pose a greater challenge were each company to attempt it independently.

Addressing Scope 3 emissions in food & beverage manufacturing

For food and drink manufacturers, a major hurdle in lowering carbon emissions is mitigating Scope 3 emissions.

These indirect emissions stem from various points within the supply chain rather than from the companies' direct operations.

They typically represent about 90% of a company's total carbon footprint, and are therefore a focal point in the pursuit of Net Zero.

The management of these emissions is complex as it relies on the practices and transformations of numerous suppliers and partners who may lack the resources or knowledge to adopt renewable energy solutions.

Through its collaborative framework, the REfresh Alliance aims to eliminate these barriers, offering suppliers practical tools to make the switch to renewable energy systems.

Already, the alliance has roped in over 300 suppliers, facilitating comprehensive dialogues to explore renewable options comprehensively. 

"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," says Ralf Peters, Chief Procurement Officer of Coca-Cola Europacific Partners. 

“We have long recognised the need for industry collaboration to deliver the most impact and to accelerate the transition across our supply chains." 

Hervé Le Faou, Chief Procurement Officer of Heineken agrees, adding: “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

The REfresh Alliance focuses primarily on moulding strategies to Scope 3 in Europe and North America.

These regions already have a robust renewable energy infrastructure, which is expected to yield quicker positive outcomes from the alliance's efforts.

The partnership however, is already poised to broaden its geographical scope, facilitating access to renewable resources for suppliers in developing markets.

Apart from linking brands with more sustainable energy sources, the alliance also promotes active learning through its educational platform, preparing companies with the necessary acumen for implementing eco-friendly solutions. 

This proactive and collaborative strategy ensures a more comprehensive approach to reducing global emissions.

Manufacturers must exhibit solidarity and collective action to be effective in the fight against climate change, as recognised by Jane Liang, Chief Procurement Officer of Diageo.

“The climate crisis is the most pressing issue of our time and the transition to Net Zero is becoming increasingly important," she says.

"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.”

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