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.
Unilever, Reckitt Benckiser, Associated British Foods, and British American Tobacco were UK-based major FMCG companies with significant Scope 3 emissions in 2021.
Unilever is a manufacturer and supplier of fast-moving consumer goods and a leading Scope 3 GHG emitter. The FMCG company’s Scope 3 emissions were 61,010 thousand tonnes of CO2 equivalent in 2021, accounting for around 98.2% of the total GHG emissions.
Reckitt Benckiser is a manufacturer and distributor of personal care, household, specialty products, nutrition, toiletry, and health care products. Scope 3 emissions by the company were 13,182 thousand tonnes of CO2 equivalent in 2021. Reckitt Benckiser aims to reduce absolute Scope 3 GHG emissions by 50% by 2030 from a 2015 base year.
Associated British Foods, a subsidiary of Wittington Investments Ltd, is a diversified food processing and retail group. In 2021, Scope 3 emissions form the major portion of Associated British Foods’ total GHG emissions, accounting for 4,210 million tonnes of CO2 equivalent (57.1% of total GHG emissions).
British American Tobacco was among the leading emitters of Scope 3 emissions with emissions of 390 thousand tonnes of CO2 equivalents in 2021.
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