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Supply Chain

Nestlé Opts For Lower Carbon Alternatives For Shipping

By Dayeeta Das
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Nestlé Opts For Lower Carbon Alternatives For Shipping

Food giant Nestlé plans to move the equivalent of half of its global shipping needs to alternative, lower-emission fuels with immediate effect.

Nestlé has signed agreements with Hapag-Lloyd, Maersk and CMA CGM to cover half of its shipping volumes using alternative fuels in 2023, with an option to extend this agreement into 2024 and beyond.

By switching to cargo ships that use fuels made from waste, such as used cooking oil, the food giant aims to reduce its annual greenhouse gas emissions from shipping by around 200,000 metric tonnes of CO2 equivalent.

The move will help cut the use of around 500,000 barrels of crude oil for ocean transportation.

'Shipping Partners'

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

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"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."

Shipping comprises a small proportion of Nestlé's overall carbon footprint.

However, the company has pledged to reduce the impact of its logistics services as part of its path to net zero.

Fuels made from waste offer a reduction of at least 70% in equivalent emissions compared with standard options, Nestlé noted, citing information provided by the shipping companies.

In October of this year, Nestlé said it reduced the use of virgin plastic packaging by 10.5% since 2018 and is on track to cut the use of the material by a third by the end of 2025.

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