Greenhouse gas (GHG) emissions are one of the major causes of rising global warming, and companies from the FMCG sector account for a significant amount of the global emissions. CO2, Methane & NOx gases form a major part of greenhouse gases released from Fossil Fuels such as gas and oil. Due to rising GHG emissions from companies, it became important among major contributing sectors to report gas emissions during their operations.
Companies from the FMCG sector are under increasing pressure to reduce their carbon footprint. Consumers are becoming more aware of excess carbon dioxide emissions' detrimental environmental effects. Their consumption behavior changes due to this, and they take an active interest in sustainability issues.
Greenhouse gas (GHG) emissions are generally classified into Scope 1, 2, & 3 emissions. Scope 1 includes direct GHG emissions from stationary fuel combustion and refrigerant gases. Scope 2 encompasses indirect GHG emissions from the on-site generation and purchase of electricity. Scope 3 involves indirect GHG emissions in the company’s entire value chain such as the purchase of goods and services, waste generated in operations, upstream transport, and distribution.
Nestle, Unilever, Henkel, ABInBev, and Danone were major European companies with significant Scope 2 GHG emissions in 2021.
Nestle SA (Nestle) is a manufacturer and marketer of food products and beverages and one of the major Scope 3 GHG emitters. Nestle’s total GHG emissions were 118,680 thousand tonnes of CO2 equivalent in 2021, a decrease of 0.4% from 2020. The FMCG company aims to achieve net zero greenhouse gas emissions by 2050.
Unilever is a manufacturer and supplier of fast-moving consumer goods. Total GHG emissions by the company were 61,720 thousand tonnes of CO2 equivalent in 2021. The FMCG company aims to halve the GHG impact of its products by 2030.
Henkel is a Germany-based manufacturer and marketer of consumer and industrial products. The company’s greenhouse gas emissions were 44,050 thousand tonnes of CO2 equivalent in 2021, a decrease of 3.6% from 2020. By 2030, the company has set a goal to reduce CO2 from raw materials and packaging per tonne of product by 30% and to source 100% of electricity from renewable sources.
ABInBev and Danone were among the leading GHG emitters, with 30,940 thousand tonnes of CO2 equivalents and 24,711 thousand tonnes of CO2 equivalents in 2021, respectively.
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