Case Study: Tetra Pak Reduces Climate Impact by Sourcing 100% Renewable Electricity in China
Tetra Pak is working to minimise the environmental impact across its entire value chain, from sourcing to production, to the use and disposal of its products, in partnership with customers and suppliers. Tetra Pak's goal is to cap its climate impact by 2020 at 2010 levels, despite anticipated business growth during this period. It has also joined RE100, committing to increase its use of renewable electricity to 100% across all global operations by 2030.
China is one of the countries where Tetra Pak uses the most electricity. It is also a market that is still only developing robust renewable energy infrastructure, making it a challenge for companies to source electricity from renewable resources and minimise carbon emissions. It was nonetheless important for Tetra Pak to find a solution that would allow it to source renewable energy locally from the same regional electricity grid as its plants.
The International REC Standard (I-REC) is an international standard for issuing, tracking and redeeming renewable energy certificates (RECs) in countries where tracking systems for RECs do not yet exist. Established and governed by the International REC Standard, a nonprofit, the I-REC Standard offers a robust means through which energy products from renewable sources can be certified through the electricity supply chain.
The key benefits for Tetra Pak
By making sure that renewable energy is sourced locally from the same regional electricity grid as its plants, Tetra Pak is supporting the development of much needed renewable energy infrastructure in the local communities within which it operates:
Reduced GHG emissions: The investment in I-RECs in China represents an increase of 13% in Tetra Pak's purchase of renewable electricity, bringing the total use of renewable electricity across the company's global operations to 35% of the total electricity consumed.
Progress towards Tetra Pak's climate goal and public commitments: Sourcing I-RECs delivers on Tetra Pak's RE100 commitment of 100% renewable electricity by 2030. It also supports the company's commitment to the Science Based Targets initiative through which it pledges to work towards keeping the global temperature increase below 2 degrees Celsius. Both these commitments fall under Tetra Pak's climate goal of capping its value chain emissions at 2010 levels by 2020.
Thinking global, acting local - demonstration of leadership in the area of renewable electricity: In China, a market that is looking to establish a national renewable electricity tracking scheme, Tetra Pak is showing true market leadership with the use of I-RECs as a part of a global renewable sourcing strategy.