Greif Partners with Endesa for Solar Power in Spain

• Greif Inc. partners with Endesa in a landmark VPPA, paving the way for solar innovation in Spain while aiming for a 28% reduction in greenhouse gas emissions by 2030.

Greif Inc, a U.S. industrial packaging company, has signed a virtual power purchase agreement (VPPA) with Endesa’s renewable energy division in Spain. The 12-year contract, managed by Enel Green Power Espana, will facilitate the construction of two solar parks in the Soria Province of Castilla y León, supplying approximately 100 GWh of clean electricity annually, which accounts for about 70% of the expected output.

This agreement supports Greif's goal to reduce its Scope 1 and 2 greenhouse gas emissions by 28% by 2030, with the renewable energy sourced under the contract expected to cover about 65% of the company’s Scope 2 emissions in Europe and around 3% of its global emissions.

How will Greif's VPPA impact its greenhouse gas reduction goals and renewable energy sourcing?

• Alignment with Corporate Sustainability Goals: Greif's VPPA aligns with its formal commitment to sustainability, specifically its goal to reduce Scope 1 and 2 greenhouse gas emissions by 28% by 2030. This contract directly supports efforts to decrease reliance on fossil fuels in their operations.
• Significant Scope 2 Emission Reduction: By sourcing approximately 65% of its Scope 2 emissions in Europe through the renewable energy generated from the new solar parks, Greif significantly advances its decarbonization strategy, enhancing its overall emissions profile.
• Global Impact: The renewable energy generated from this VPPA will also contribute to reducing about 3% of Greif’s total global emissions, showcasing the influence of localized renewable energy initiatives on global corporate sustainability practices.
• Investment in Local Renewable Energy Projects: The construction of solar parks in Soria Province not only aids Greif in meeting its emission targets but also represents an investment in local renewable energy infrastructure, potentially stimulating economic growth and creating jobs in the region.
• Long-term Energy Security: The 12-year term of the VPPA provides Greif with a stable and predictable energy cost structure, reducing exposure to volatile energy markets and enhancing energy security for its operations in Europe.
• Support for Renewable Energy Market: By entering into a VPPA, Greif reinforces the financial viability of renewable energy projects, encouraging further investment in green technologies and expansion of the renewable energy market, which is essential for meeting global climate targets.
• Enhanced Brand Image and Market Positioning: Committing to renewable energy sourcing through a VPPA enhances Greif's reputation as a sustainability leader within the packaging industry. This could improve customer relations with environmentally conscious clients and consumers.
• Compliance and Risk Mitigation: As regulatory frameworks around carbon emissions tighten globally, Greif's proactive stance in reducing its carbon footprint through renewable energy sourcing helps mitigate the risk of non-compliance with future environmental regulations.
• Contribution to the Energy Transition: Greif’s VPPA serves as a model for other companies looking to transition to renewable energy sources, demonstrating corporate responsibility and the role of private sector engagement in contributing to broader climate goals.
• Potential for Future Expansion: The success of this VPPA could pave the way for additional agreements and investments in renewable energy, allowing Greif to explore further sustainability initiatives and potentially exceed its current greenhouse gas reduction targets.