Haleon Expands Renewable Electricity for Supply Chain Decarbonization
Haleon Expands Renewable Electricity Strategy to Advance Supply Chain Decarbonization in Europe and the United States
Haleon, a multinational consumer health company, is advancing its global supply chain decarbonization strategy through new renewable electricity transactions in Europe and the United States. Designed to address electricity-related emissions across its value chain, the transactions include virtual power purchase agreements (VPPAs) supporting new solar generation in Spain, a Production Tax Credit Transfer Agreement, and a renewable energy certificate (REC) Purchase and Sale Agreement associated with a solar project in the United States.
Haleon’s Renewable Electricity in the Value Chain (REV) strategy combines supplier engagement with long-term renewable electricity procurement as part of its broader supply chain decarbonization plan. The transactions complement its sponsorship of Energize, a collaborative initiative that brings together pharmaceutical and healthcare companies to help suppliers access renewable electricity. Through Energize, Haleon encourages suppliers to adopt renewable electricity directly.
“There is no single solution to decarbonising a global supply chain,” said Chris Low, Head of Procurement, Haleon. “Our REV strategy combines supplier engagement, renewable electricity procurement and innovative commercial structures to focus action where it can have the greatest impact. These agreements demonstrate how climate action can be integrated into long-term business and procurement decisions.”
SE Advisory Services served as Haleon’s commercial advisor, supporting the evaluation and execution of these transactions as part of the company’s broader supply chain decarbonization strategy. With the SBTi’s new Corporate Net Zero Guidance (V2.0) allowing more flexible use of energy attribute certificates (EACs) to address Scope 3 emissions, Haleon’s approach is expected to inform similar efforts by other companies.
Advancing Supply Chain Decarbonization in Europe
In Europe, Haleon has entered into two VPPAs with Lightsource bp for two solar photovoltaic (PV) projects in Valladolid, Castilla y León, Spain. Once operational, the projects are expected to generate approximately 430 GWh of renewable electricity annually, with Haleon contracted to receive approximately 84% of the associated renewable energy attributes to support its strategy for addressing suppliers’ electricity-related emissions. The projects are expected to reach commercial operation by December 2027 and December 2028, respectively, and are among the first assets contracted under VPPAs to address Haleon’s Scope 3 emissions in Europe.
Expanding Renewable Electricity Action in the United States
In the United States, Haleon has executed two 10-year agreements with Greenalia Solar Power associated with the Misae III Solar Project in Childress County, Texas.
Under the tax credit transfer agreement, Haleon will provide capital to the project in exchange for eligible federal tax credits. Under the REC agreement, Haleon will purchase the project’s renewable energy certificates representing 100 GWh of electricity annually, primarily to address Scope 3 emissions associated with its North American supply chain. Together, the agreements are designed to support renewable energy development while advancing Haleon’s value-chain decarbonization strategy.
The 169 MWac solar project is expected to be operational in 2027. The combination of REC procurement and a tax credit transfer structure provides an additional pathway for Haleon to support renewable energy development and address value-chain emissions.
Building on Collaboration to Accelerate Progress
Through Energize, Haleon has previously participated in collaborative renewable electricity procurement, including a solar VPPA in Spain. The new transactions build on that work, expanding the company’s approach to value-chain decarbonization through supplier engagement, collaborative procurement, and long-term renewable electricity transactions in Europe and the United States.
“Supply chain emissions remain one of the most complex challenges companies face on the path to decarbonization,” said Lena Henry, Global Head of Advisory Services, Schneider Electric. “Haleon is demonstrating how companies can pursue multiple pathways, bringing together supplier engagement, collaborative procurement and innovative renewable energy transactions across markets. This approach can help turn long-term climate ambitions into meaningful action across the value chain.”
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