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.
Associated British Foods, Unilever, British American Tobacco, Diageo, and Imperial Brands were UK-based major FMCG companies with significant total greenhouse gas emissions in 2021. Here, total GHG emissions include Scope 1 and Scope 2 emissions only.
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.
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 (Scope 1 & 2) were 710 thousand tonnes of CO2 equivalent in 2021. Unilever’s Scope 1 emissions have decreased by about 7% and Scope 2 emissions decreased by around 33% in 2021.
British American Tobacco produces, markets, and sells cigarettes, tobacco and nicotine products, vapor and tobacco-heating products, and other tobacco-related products. Total GHG emissions (Scope 1 & 2) by the company were 500 thousand tonnes of CO2 equivalent in 2021. The company aims to achieve carbon-neutral operations (Scope 1 and 2 CO2eq emissions) by 2030 and net zero emissions across its value chain by 2050.
Diageo and Imperial Brands were among the leading GHG emitters, with 472 thousand tonnes of CO2 equivalents and 240 thousand tonnes of CO2 equivalents in 2021, respectively.
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