MEXICO – Berry Global Group has signed a five-year Power Purchase Agreement (PPA) with ACCIONA Energia to power its four facilities in Mexico with 100,000 MWh of wind and solar energy.
The PPA will also help avoid 40,000 metric tonnes of CO2 equivalent annually, which is equivalent to removing 15,000 gas-powered cars from the road.
Rodgers Greenawalt, Executive Vice President of Operations at Berry Global, said, “We are firmly committed to expanding the number of renewable energy projects across our business each year to help reduce greenhouse gas emissions and accelerate progress toward a net-zero future.
“In addition to being the most cost-effective option, this agreement naturally decreases our operational impacts and our customers’ supply-chain emissions, while also minimizing the cost and price fluctuations associated with fossil fuels.”
Under the deal, Berry’s San Luis Potosi, Cuautitlan Izcalli, Atlacomulco, and Tlanepantla sites across Mexico will consume 100% renewable energy, consisting of approximately 70% wind and 30% solar.
The San Luis Potosi site, powered by the agreement, accounts for approximately two-thirds of Berry’s total energy consumption in the country.
The agreement further strengthens Berry’s existing portfolio of renewable energy in Latin America, bringing the total estimated renewable energy consumption to over 120,000 MWh.
It also helps the company increase its usage of renewable energy in the future and improve its Science Based Targets initiative-validated climate goals. These goals aim to reduce absolute Scope 1+2 (operational) emissions and Scope 3 (supply chain) emissions by 25% by 2025, compared to 2019.
“The PPA with Berry is a further demonstration of ACCIONA Energia’s commitment to supporting decarbonization at an industrial level and the transition towards a sustainable, competitive, and efficient energy system,” stated Javier Montes, Commercial Director at ACCIONA Energia.
Berry Upgraded to “A” Rating from MSCI for Effective ESG Management
Elsewhere, the company has earned an “A” environmental, social, and governance (ESG) rating from the international rating agency MSCI for its progress in managing ESG risks and opportunities. This includes improvements in carbon emissions, labor management, and packaging material and waste.
“We are honored to receive such high recognition from MSCI for our continued efforts to increase transparency and prioritize key environmental and social issues across our global business, while strengthening Berry’s resilience to long-term ESG risks,” said Tom Salmon, CEO of Berry Global.
“This improved ‘A’ rating reflects our ongoing investments in our workforce, as well as our commitment to reducing the environmental impact of packaging and achieving net-zero emissions by 2050.”
Berry’s greatest year-over-year improvement was in the “Carbon Emissions” category. This improvement can be attributed to its long-term trend of reducing emissions, external assurance of value chain (Scope 3) emissions, and its recent commitment to achieving net-zero emissions by 2050.
The packaging firm also gained recognition for its efforts in “Labor Management” by measuring and enhancing employee engagement, as well as implementing a wide range of variable incentive (bonus) programs.
In addition, the company earned the highest rating among its peers in the plastic packaging industry in the “Chemical Safety” category. This recognition acknowledges Berry’s strong commitment to ensuring that its products meet rigorous standards for consumer safety. Berry achieves this through its Restricted Substances List and its Product Safety and Quality Management Policy.
MSCI ESG Ratings aim to measure a company’s management of financially relevant ESG risks and opportunities.
MSCI utilizes a rules-based methodology to identify industry leaders and laggards based on their exposure to ESG risks and their ability to effectively manage those risks compared to their peers.
The top-level assessment is the overall company ESG Rating, which is measured on a seven-point letter rating scale from AAA to CCC, relative to the industry.