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.
Greenhouse gas (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, upstream transport and distribution, and employee commute.
Nestle, JBS, Unilever, Henkel, and Colgate-Palmolive were major FMCG companies with significant total GHG emissions in 2021.
Nestle SA (Nestle) is a manufacturer and marketer of food products and beverages and a leading total GHG emitter. In 2021, Nestle’s total GHG emissions were 118,680 thousand tonnes of CO2 equivalents, a decrease of 0.4% from the previous year. The company aims to achieve net zero greenhouse gas emissions by 2050.
JBS is a food processing company that processes beef, pork, poultry and lamb, chicken, and other convenience food products. The company’s total GHG emissions were 71,108 thousand tonnes of CO2 equivalents which decreased by 88.5% on an annual basis.
Unilever is a manufacturer and supplier of fast-moving FMCG. Total GHG emissions of Unilever in 2021 were 61,720 thousand tonnes of CO2 equivalents, an increase of 1% from 2020. GHG emissions of the company have declined continuously in recent years. The FMCG company aims to halve the GHG impact of its products by 2030.
Henkel and Colgate-Palmolive were among the leading GHG emitters in 2021 with emissions of 44,050 thousand tonnes of CO2 equivalents and 41,025 thousand tonnes of CO2 equivalents, respectively.
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