HomeNewsNestlé targets 70% emission reduction: Strikes green transition deal with shipping giants

Nestlé targets 70% emission reduction: Strikes green transition deal with shipping giants

Teaming up with three of the “largest companies globally” in the shipping industry, Nestlé is swiftly transitioning half of its worldwide shipping requirements to alternative, more environmentally friendly fuels.

The food giant is aiming to reduce its annual greenhouse gas (GHG) emissions from shipping by approximately 200,000 metric tons of CO2 equivalent. This ambitious objective involves a strategic shift to cargo ships powered by fuels derived from waste, such as recycled cooking oil. Nestlé asserts that this transition not only contributes to environmental sustainability but also has the potential to save around 500,000 barrels of crude oil.

Stephanie Hart, EVP and head of operations at Nestlé, said, “Reaching net zero requires changing many aspects of how we source, make, and distribute our products. The agreements we’ve signed with our shipping partners will help us cut emissions and immediately reduce our carbon footprint. We know this is an interim solution and continue to encourage the development of longer-term decarbonisation solutions in shipping and distribution.”

According to Nestlé, fuels derived from waste provide a minimum emission reduction of 70% compared to conventional alternatives.

Nestlé has entered into agreements with container shipping giants Hapag-Lloyd, Maersk, and CMA CGM. These agreements, covering 50% of Nestlé’s shipping volumes in 2023, come with an option to extend the partnership into 2024 and beyond. Consequently, these shipping companies will employ alternative fuels to transport an equivalent tonnage in their operations throughout the current year.

Thorben Nibbe, country manager Hapag-Lloyd Switzerland, commented, “Nestlé is a key customer of Hapag-Lloyd, and through this collaboration, we are significantly reducing CO2e emissions.”

Johan Sigsgaard, EVP and chief product officer ocean of AP Moller – Maersk, added, “This is a very decisive step by Nestlé to use our very low GHG emission solution for 100% of their ocean cargo with Maersk.”

Christine CABAU, EVP group assets and operations at CMA CGM, said, “We are very proud and happy to have set this agreement with Nestlé, one of the first of its kind, whereby shippers and beneficial cargo owners commit to decarbonise the globality of the scope 3 shipping emissions.”

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