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.
Colgate-Palmolive, Mondelez, Kimberly-Clark, General Mills, and Nike were major US companies with significant total greenhouse gas emissions in 2021
Colgate-Palmolive Co (Colgate-Palmolive), manufacturer and seller of oral care, personal care, home care, and pet nutrition products, is one of the major contributors to GHG emissions in the US. Total GHG emissions of the company in 2021 were 41,025 thousand tonnes of CO2 equivalents, a decrease of 11% from 2020. Colgate-Palmolive has set a target to achieve net zero emissions across its value chain by 2040.
Mondelez is one of the leading GHG emitters in the US in 2021 with total GHG emissions of 25,440 thousand tonnes of CO2 equivalents which increased by 3.4% from 2020. The FMCG company aims at 10% end-to-end CO2eq emissions reduction by 2025 in comparison to the 2018 level.
Kimberly-Clark is a manufacturer and marketer of paper-based consumer products. In 2021, the total GHG emissions of the company were 15,540 thousand tonnes of CO2 equivalents, a decrease of 5.9% from 2020.
General Mills and Nike were also among the leading GHG emitters with emissions of 13,860 thousand tonnes of CO2 equivalents and 10,943 thousand tonnes of CO2 equivalents, respectively.
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