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, Unilever, Henkel, ABInBev, and Danone were major European companies with significant Scope 2 GHG emissions in 2021.
Nestle SA (Nestle) is a manufacturer and marketer of food products and beverages and one of the major Scope 3 GHG emitters. Nestle’s Scope 3 emissions were 113,700 thousand tonnes of CO2 equivalent in 2021, accounting for around 95.8% of total GHG emissions.
Unilever is a manufacturer and supplier of fast-moving consumer goods. Scope 3 emissions by the company were 61,010 thousand tonnes of CO2 equivalent in 2021. The FMCG company aims to halve the GHG impact of its products by 2030.
Henkel is a Germany-based manufacturer and marketer of consumer and industrial products. The company’s Scope 3 emissions were 43,580 thousand tonnes of CO2 equivalent in 2021, accounting for the major portion of the company’s total GHG emissions.
ABInBev and Danone were among the leading emitters of Scope 3 emissions, with 26,530 thousand tonnes of CO2 equivalents and 23,733 thousand tonnes of CO2 equivalents in 2021, respectively.
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