Today, we are announcing our company-wide commitment to secure 100% of purchased electricity from renewable sources across our global operations by 2025.
In total, this will shift 6 terawatt-hours of electricity annually to renewable sources in the markets where we operate and will help transform the energy industry. This increased renewable electricity generation – which is the amount of energy produced in one year by solar panels covering the area of more than 400 soccer pitches – will support efforts to achieve climate targets under the 2015 Paris Climate Conference (COP21) agreements.
As part of this initiative, we expect to secure 75-85% of electricity through direct power purchasing agreements. The final 15-25% will mainly come from on-site technologies such as solar panels.
This commitment will make us the largest corporate direct purchaser of renewable electricity in the consumer goods sector globally and will reduce our operational carbon footprint by 30%. This will have the same positive effect as removing nearly 500,000 cars from the road. The renewable energy target also demonstrates our continued commitment to following a low carbon pathway, in line with the United Nations Sustainable Development Goals.
We have also joined RE100, a global initiative of influential businesses that are all committed to using 100% renewable electricity. RE100 is led by The Climate Group in partnership with Carbon Disclosure Project.
Our renewable electricity transformation will begin in Mexico, which is home to our largest brewery, in Zacatecas. We have signed a Power Purchase Agreement with Iberdrola for 490 gigawatt-hours per year. With this new partnership, we will be able to meet all of its purchased electricity needs for production sites in the country.
We plan to enter into similar agreements in other markets in the near future. By launching this new partnership in Mexico, we hope to demonstrate that by switching to renewable electricity, businesses across the world can contribute to a 100% renewable electricity future.