AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, announced its signing of a Virtual Power Purchase Agreement (VPPA) in partnership with BRUC, one of the largest renewable energy groups in Spain. The agreement marks a significant milestone in AGCO's renewable energy strategy and helps reduce its Scope 2 greenhouse gas emissions relating to its indirect onsite purchased electricity.
"This agreement reflects AGCO's long-term commitment to responsible energy procurement," said Roger Batkin, Senior Vice President, General Counsel, Chief Sustainability Officer and Corporate Secretary. "It is a tangible step toward achieving our renewable energy targets and driving sustainable outcomes for farmers and the earth."
A VPPA is a strategic partnership that allows organizations to support the development of renewable energy projects – such as wind and solar plants – without taking direct delivery of the electricity generated, helping companies like AGCO advance achievement of its sustainability goals, reduce carbon footprints and support the growth of renewable energy infrastructure.
"This VPPA is a strategic enabler for our supply chain and sustainability goals," said Tim Millwood, Senior Vice President, Chief Supply Chain Officer. "It affords us clean electricity at stable, long-term rates, strengthens our supply chain resilience and demonstrates how sustainability and operational excellence go hand-in-hand."