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Nestlé moves to lower carbon alternatives for shipping
FoodBev Media

FoodBev Media

8 December 2023

Nestlé moves to lower carbon alternatives for shipping

In partnership with three of the “world’s largest” shipping companies, Nestlé will move the equivalent of half of its global shipping needs to alternative, lower-emission fuels with immediate effect. The food giant aims to reduce its annual GHG emissions from shipping by around 200,000 metric tons of CO2 equivalent by switching to cargo ships that use fuels made from waste, such as used cooking oil. Nestlé says that the move could help 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." Nestlé says that fuels made from waste offer a reduction of at least 70% in equivalent emissions compared with standard options. The agreements, signed with container shipping companies 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. This means that the shipping companies will use alternative fuels to move an equivalent amount of tonnage in their operations this 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, finished: "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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