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 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.
Associated British Foods, British American Tobacco, Imperial Brands, Unilever, and Diageo were UK-based major FMCG companies with significant Scope 2 emissions in 2021.
Associated British Foods Plc is a UK-based diversified food processing and retail group and a leading Scope 2 GHG emitter. The food company’s Scope 2 emissions were 710 thousand tonnes of CO2 equivalent in 2021, a decline of 6.2% over 2020.
British American Tobacco (BAT) produces, markets, and sells cigarettes, tobacco and nicotine products, vapor and tobacco-heating products, and other tobacco-related products. Scope 2 emissions by British American Tobacco were 170 thousand tonnes of CO2 equivalent in 2021, a decrease of 14.6% over 2020.
Imperial Brands Plc (Imperial Brands) is a manufacturer, marketer, distributor, and seller of a wide range of tobacco and related products. Imperial Brands’ Scope 2 emissions were 144 thousand tonnes of CO2 equivalent in 2021. The company’s target is to reduce Scope 1 & 2 emissions by 25% by 2030.
Unilever and Diageo were among the leading emitters of Scope 2 emissions with emissions of 140 thousand tonnes of CO2 equivalents and 38 thousand tonnes of CO2 equivalents in 2021, respectively.
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