Food and Beverage Business

Nestlé to Use “Lower-Emission Fuels” for 50% of Shipping Operations

Nestlé to Use “Lower-Emission Fuels” for 50% of Shipping Operations Baby food, Bakery and Cereal, confectionery, Dairy & Soy Food, Environmental Sustainability, Frozen, meat alternatives, Refrigerated, Shelf-stable, Vegetarian and Vegan Food and Beverage Business

Nestlé is planning to use more sustainable shipping options, with the intention to adopt “lower carbon alternatives” for half of its “global shipping needs.” We have partnered with Hapag-Lloyd, Maersk, and CMA CGM to shift to cargo ships that run off fuels made from ingredients that would otherwise be discarded, like cooking oil. With this transition, we aim to reduce our shipping-related greenhouse gas emissions by 200,000 metric tonnes of carbon dioxide equivalent and avoid using some 500,000 barrels of crude oil for our shipping.

Stephanie Hart, executive vice president and head of operations at Nestlé, mentioned, “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 decarbonization solutions in shipping and distribution.”

Lead by example in promoting global sustainability

We are proud to lead by example and continuously aim to promote global sustainability. Our agreements with shipping partners will cover half of Nestlé’s shipping volume moved for 2023, meaning that the shipping companies will use alternative fuels to move an equivalent amount of tonnage in their operations this year. Furthermore, this initiative has the potential to be extended through 2024 and beyond.

Johan Sigsgaard, executive vice president and chief product officer, Ocean of A.P. Moller at Maersk, stated, “Nestlé would be using the very low GHG emission solution for 100% of [its] ocean cargo with Maersk.”

Christine Cabau Woehrel, executive vice president of group assets and operations at CMA CGM, added, “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 decarbonize the globality of the scope 3 shipping emissions.”

Results and future goals

We have been focused on sustainability, as evident in our 2022 annual review where we reduced our carbon emissions by 6.4 million tonnes to 93.3mt. With our net-zero strategy launched in 2020 and a commitment to eliminating carbon emissions by 2050, we also aim to invest CHF3.2bn ($3.66bn) over the next five years in various areas, including the acceleration of regenerative agriculture within our supply base and adopting 100% renewable electricity by 2025.

Continuing toward our goals

As of now, our commitment stands at a 20% reduction in emissions by 2025 and a 50% reduction by 2030. We will be focusing our investments to ensure that we achieve the projected milestones.

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