Nestle moves to lower carbon alternatives for shipping

Working with three of the world’s largest shipping companies, Nestle will 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.

“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 Nestle. “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.”

Although shipping makes up a small proportion of Nestle’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 Nestle’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.