Nestlé to move shipping needs to sustainable fuels

Thursday, 07 December, 2023

Nestlé to move shipping needs to sustainable fuels

Nestlé, working with three large shipping companies, will move the equivalent of half 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 is aiming to reduce its annual greenhouse gas emissions from shipping by around 200,000 metric tonnes of CO2 equivalent. This could help avoid the use of around 500,000 barrels of crude oil for ocean transportation.

Stephanie Hart, Executive Vice President and Head of Operations at Nestlé, 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.

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

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 into 2024 and beyond. It means that shipping companies will use alternative fuels to move an equivalent amount of tonnage in their operations this year.

Christine CABAU - EVP Group Assets and Operations - 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 (BCO) commit to decarbonise the globality of the Scope 3 shipping emissions. This initiative proves that there are some existing solutions to decarbonise Scope 3 of BCOs. These constructive solutions are already available with CMA CGM to accelerate on this path.”

Image credit: Wager

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