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. A significant portion of the greenhouse gases released from fossil fuels like gas and oil includes CO2, methane, and NOx gases. Due to rising GHG emissions from companies, it became important among major contributing sectors to report gas emissions during their operations.
Companies in the FMCG industry are coming under pressure to reduce their carbon footprint. Consumers are becoming more conscious of the harmful environmental effects of excessive carbon dioxide emissions. As a result, their consumption habits become dynamic, 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.
Nestle, ABInBev, Associated British Foods, Essity, and Danone were major European companies with significant GHG emissions in 2021. Here, total GHG emissions include Scope 1 and Scope 2 emissions only.
Nestle SA (Nestle) is a manufacturer and marketer of food products and beverages. the company’s total GHG emissions (Scope 1 & 2) were 4,980 thousand tonnes of CO2 equivalent in 2021. The FMCG company aims to achieve net zero greenhouse gas emissions by 2050.
ABInBev is a producer, distributor, and marketer of beer, alcoholic beverages, and soft drinks. In 2021, the total GHG emissions (Scope 1 & 2) were 4,410 thousand tonnes. The company has set a goal to reduce its carbon emissions by 25% across its value chain and to have 100% of its purchased electricity from renewable sources by 2025.
Associated British Foods, a subsidiary of Wittington Investments Ltd, is a diversified food processing and retail group. In 2021, the total GHG emissions (Scope 1 & 2) of the company were 3,160 thousand tonnes of CO2 equivalent. The company's Scope 2 emissions decreased by 6.2% and Scope 1 emissions decreased by 12.4% annually.
Essity and Danone were among the leading European GHG emitters in 2021 with emissions of 2,929 thousand tonnes of CO2 equivalents and 978 thousand tonnes of CO2 equivalents, respectively.
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