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, waste generated in operations, upstream transport, and distribution.
Unilever, Reckitt Benckiser, Associated British Foods, British American Tobacco, and Diageo were UK-based major FMCG companies with significant total greenhouse gas emissions in 2021.
Unilever is a manufacturer and supplier of fast-moving consumer goods and one of the leading greenhouse gas emitters. The FMCG company’s total GHG emissions were 61,720 thousand tonnes of CO2 equivalent in 2021, an increase of 1% from 2020. The FMCG company aims to halve the GHG impact of its products by 2030.
Reckitt Benckiser is a manufacturer and distributor of personal care, household, specialty products, nutrition, toiletry, and health care products. Total GHG emissions by the company were 13,316 thousand tonnes of CO2 equivalent in 2021. Reckitt Benckiser aims to reduce absolute Scope 1 and Scope 2 GHG emissions by 65% and absolute Scope 3 GHG emissions by 50% by 2030 from a 2015 base year. The company also has a goal to use 100% renewable electricity by 2030.
Associated British Foods, a subsidiary of Wittington Investments Ltd, is a diversified food processing and retail group. In 2021, the total GHG emissions of the company were 7,370 thousand tonnes of CO2 equivalent, a decrease of 3% from 2020.
British American Tobacco and Diageo were among the leading GHG emitters, with 890 thousand tonnes of CO2 equivalents and 472 thousand tonnes of CO2 equivalents in 2021, respectively.
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