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.
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 all other indirect GHG emissions in companies’ entire value chain.
Nestle, ABInBev, Associated British Foods, Essity, and Danone were major European companies with significant Scope 1 GHG emissions in 2021.
Nestle SA (Nestle) is a manufacturer and marketer of food products and beverages and one of the major Scope 1 GHG emitters. Nestle’s Scope 1 emissions were 3,370 thousand tonnes of CO2 equivalent in 2021, an increase of 3.4% from the previous year.
Anheuser-Busch InBev (AB InBev) is a Belgium-based alcoholic beverage company. Scope 1 emissions by AB InBev were 2,990 thousand tonnes of CO2 equivalent in 2021. The company has set a goal to reduce its carbon emissions by 25% across its value chain by 2025.
Associated British Foods Plc is a UK-based diversified food processing and retail group and one of the leading Scope 1 GHG emitters. The food company’s Scope 1 emissions were 2,450 thousand tonnes of CO2 equivalent in 2021, a decline of 12.4% over 2020.
Essity and Danone were among the leading emitters of Scope 1 emissions with emissions of 1,410 thousand tonnes of CO2 equivalents and 683 thousand tonnes of CO2 equivalents in 2021, respectively.
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