AB InBev taps South Pole for supply chain decarbonization

AB InBev, a multinational drinks and brewing company, is partnering with South Pole in a project to further decarbonize its supply chain in Europe, specifically targeting scope 2 and 3 emissions.

South Pole, a global sustainability solutions provider, is helping AV InBev with cutting greenhouse gas emissions by setting up a group buying initiative to enable its customers and suppliers across Europe better access to renewable electricity. That enables AB InBev to power its operations with renewables at a lower cost.

In 2022, the scope 3 emissions in AB InBev’s supply chain, which spans a wide array of distributors around the world, accounted for a remarkable 85% of the company’s total emissions.

Scope 3 emissions – the emissions linked to a company derived from the outer edges of its supply chain, which it does not directly own or control – are notoriously difficult to target.

“South Pole is excited to launch this initiative with AB InBev, which is designed to help the members of the group buying program to take part in the clean energy transition and further their green ambitions without requiring them to develop and operate their own renewable energy projects,” said Patrick Horka, global director of Renewable Energy Solutions at South Pole.

“We are looking forward to the challenging but exciting journey to source European power purchase agreements (PPA) and thereby join AB InBev in their leadership in driving value-chain decarbonization.”

PPAs are contracts between sellers and buyers for renewably-generated electricity, and are usually long-term arrangements that buyers usually pay a specific price for throughout the agreed period.

The primary objective of the group buying program designed by South Pole is to help AB InBev suppliers and customers afford renewable energy, which can be pricey. It is also slated to offer customized training on PPA sourcing.

AB InBev, a colossal company that is the result of a merger between InBev and the American company Anheuser-Busch, is considered the largest brewer in the world and owner of a wide range of incredibly popular beers enjoyed around the world, like Budweiser, Stella Artois, and Corona.

The brewing giant has already made significant inroads towards sustainability. Since 2022, all beers that the brewer produces in Europe are brewed with 100% renewable energy, mostly wind and solar. This achievement, which is supported by a large solar energy plant in Spain, was 10 years in the making.

South Pole is involved in numerous decarbonization programs around the world. Other partnerships include developing recycling facilities for chemicals company Sika, and designing a major carbon removal project with Japanese multinational Mitsubishi.