Nestlé has partnered with three of the world's largest shipping companies, Hapag-Lloyd, Maersk, and CMA CGM, to immediately transition half of its global shipping needs to alternative, lower-emission fuels. The company aims to reduce its annual greenhouse gas emissions from shipping by approximately 200,000 metric tons of CO2 equivalent by utilising cargo ships fueled by waste-derived fuels like used cooking oil. This initiative could prevent using around 500,000 barrels of crude oil for ocean transportation.
While shipping constitutes a small portion of Nestlé's overall carbon footprint, the company is committed to reducing the impact of its logistics services as part of its journey to achieve net-zero emissions. As specified by the shipping companies, fuels made from waste reduce at least 70 percent in equivalent emissions compared to standard options.
The agreements signed with Hapag-Lloyd, Maersk, and CMA CGM cover half of Nestlé's shipping volumes in 2023, with an option to extend the agreement into 2024 and beyond. This means shipping companies will use alternative fuels to transport equivalent cargo throughout the year.
Stephanie Hart, Executive Vice President and Head of Operations at Nestlé said that while this was an interim solution, it would significantly reduce Nestlé's carbon footprint. Nestlé continues to encourage the development of long-term decarbonisation solutions in shipping and distribution.
The shipping partners, including Hapag-Lloyd, Maersk, and CMA CGM, shared their commitment to reducing CO2 emissions and praised Nestlé for taking decisive steps towards sustainable shipping practices. The collaboration is poised as a positive move towards decarbonising global shipping emissions within the scope of Nestlé's supply chain.
