Nestlé moves to lower carbon alternatives for shipping

Nestlé will work with three of the world’s largest shipping companies to move the equivalent of half of its global shipping needs to alternative, lower-emission fuels with immediate effect.

By switching to cargo ships that use fuels made from waste, such as used cooking oil, the company aims to reduce its annual greenhouse gas emissions from shipping by around 200 000 metric tons of CO2 equivalent. This could help avoid the use of around 500 000 barrels of crude oil for ocean transportation.

“Reaching net zero requires changing many aspects of how we source, make, and distribute our products,” Nestlé executive vice president and head of operations Stephanie Hart said. “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.”

Although shipping makes up a small proportion of Nestlé’s overall carbon footprint, the company is committed to reducing the impact of its logistics services as part of its path to net zero.

According to the information provided by the shipping companies, fuels made from waste offer a reduction of at least 70 per cent in equivalent emissions compared with standard options.

The agreements signed with Hapag-Lloyd, Maersk and CMA CGM cover half of Nestlé’s shipping volumes moved in 2023, with an option to extend this agreement into 2024 and beyond. It means that the shipping companies will use alternative fuels to move an equivalent amount of tonnage in their operations this year.

Nestlé’s partners expressed their thoughts on the agreement:

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

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

CMA CGM EVP Group assets and operations Christine Cabau 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 (BCO) commit to decarbonise the globality of the scope 3 shipping emissions. This initiative proves that there are some existing solutions to decarbonize scope 3 of BCOs. These constructive solutions are already available with CMA CGM to accelerate on this path.”

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