Greenhouse gas (GHG) emissions are one of the major causes of rising global warming, and the Companies from the FMCG, retail, packaging, and food service sectors 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 consumer 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.
Nestle SA (Nestle) is a manufacturer and marketer of food products and beverages. The company's product portfolio comprises baby foods, bottled water, cereals, chocolates and confectionery, coffee, culinary products, chilled and frozen foods, dairy products, nutritional products, ice cream, and pet products. Its major brands include Aero, Alpo, Milkybar, Nestle Ice Cream, Cerelac, Nescafe, Nespresso, Nestea, Milo, Maggi, Buitoni, Cailler, Movenpick, Freshly, Purina, Boost, Gerber, and Kit Kat.
Total GHG emissions of Nestle in 2021 were 118.68 million tonnes of CO2 equivalents (MtCO2eq), a decrease of 0.4% from 2020. The FMCG company aims to achieve net zero greenhouse gas emissions by 2050. It also commits to sourcing 100% renewable electricity across its sites globally by 2025.
GHG emissions are generally classified into Scope 1, 2, and 3 emissions. Scope 1 includes direct GHG emissions from sources we own or control such as on-site combustion (coal, natural gas, fuel for the company’s vehicle fleet). Scope 2 encompasses indirect GHG emissions from the generation of purchased energy like electricity and heating/cooling network. Scope 3 involves indirect GHG emissions in Nestle’s value chain, both upstream and downstream activities, such as sourcing and use of sold products.
Scope 3 emissions form the major portion of Nestle’s total GHG emissions, accounting for around 95.8% (113.7 MtCO2eq) of total GHG emissions in 2021. Nestle’s Scope 1 emissions have increased by about 3.4% to 3.37 MtCO2eq, whereas Scope 2 emissions decreased by around 15.7% to 1.61 MtCO2eq in 2021.
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