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.
Nestle, JBS, Unilever, Henkel, and Colgate-Palmolive were major FMCG companies with significant Scope 3 emissions.
Nestle SA (Nestle), manufacturer and marketer of food products and beverages, is a leading Scope 3 greenhouse gas emitter. In 2021, Nestle’s Scope 3 emissions were 113,700 thousand tonnes of CO2 equivalents, accounting for around 95.8% of total GHG emissions. The FMCG company aims to achieve net zero greenhouse gas emissions by 2050.
JBS SA (JBS) is one of the major contributors to Scope 3 emissions. Scope 3 emissions accounted for 91.4% of JBS’ total GHG emissions with emissions of 65,033 thousand tonnes of CO2 equivalents in 2021. By 2030, JBS commits to reducing absolute GHG emissions by 30% (from a 2019 baseline).
Unilever Plc (Unilever) is a manufacturer and supplier of fast-moving consumer goods. In 2021, Scope 3 emissions accounted for 61,010 thousand tonnes of CO2 equivalent, forming major portion of the company’s total GHG emissions.
Henkel and Colgate-Palmolive were among the leading emitters of Scope 3 emissions with emissions of 43,580 thousand tonnes of CO2 equivalents and 40,539 thousand tonnes of CO2 equivalents, respectively.
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