The commitment will make AB InBev the largest corporate direct purchaser of renewable electricity in the consumer goods sector globally, and the 30% carbon footprint reduction is the equivalent of removing 500,000 cars from the road.
The ‘renewable electricity transformation’ will start in Mexico, helping power AB InBev’s largest brewery in Zacatecas. An agreement with renewable energy company Iberdrola will increase Mexico’s wind and solar energy capacity by more than 5%.
AB InBev plans to roll out its model to other markets and highlights the impact it can have on the energy industry in Argentina, Brazil, India and Africa.
AB InBev says its commitments will support efforts to achieve climate targets under the 2015 COP21 (Paris Climate Conference) agreements.
‘Lead battle against climate change’
AB InBev has signed a Power Purchase Agreement with renewable energy company Iberdrola for 490 gigawatt-hours per year. The deal will allow AB InBev to meet all of its purchased electricity needs for production sites in the country.
The agreement with Iberdrola is also predicted to increase Mexico’s wind and solar energy capacity by more than 5%.
Iberdrola will build and install 220 MW of wind energy capacity onshore in the state of Puebla, with energy generation due to start in 2019.
In total, AB InBev’s pledge will shift 6 terawatt-hours of electricity annually to renewable sources.
AB InBev expects to secure 75-85% of electricity through direct power purchasing agreements. The other 15-25% will come primarily from on-site technologies such as solar panels.
The increased renewable electricity generation is the amount of energy produced in one year by solar panels covering the area of more than 400 soccer pitches.
Carlos Brito, CEO, AB InBev, said, “Climate change has profound implications for our company and for the communities where we live and work.
“Cutting back on fossil fuels is good for the environment and good for business, and we are committed to helping drive positive change. We have the opportunity to play a leading role in the battle against climate change by purchasing energy in a more sustainable way.”