Resources Why Achieving Carbon Neutrality is so critical for FMCG
By embracing carbon neutrality, FMCG companies not only fulfil their environmental responsibilities but also position themselves as leaders in sustainability, shaping a more sustainable future for all.
Given the current state of climate change, it is now critical for the FMCG industry to take concrete steps towards carbon neutrality. By reducing and offsetting carbon emissions and prioritising sustainable practices throughout their value chain, FMCG brands can make a significant environmental difference and have a substantial impact in the fight for net zero.
What is carbon neutrality?
Carbon neutrality means having a balance between the amount of carbon emitted and what is absorbed from the atmosphere. Companies and their products become carbon neutral when they can accurately report on the carbon emissions they have produced and reduce this via carbon offsetting projects.
Unsurprisingly, the FMCG industry contributes to a significant amount of carbon emissions because we use these products as part of our everyday lives. The World Economic Forum states that food and FMCG industries together produce more than one-third of global emissions, which mainly come from their upstream supply chains.
This is a complex industry to track emissions and environmental impact for because each product will vary, for instance, textile production contributes more than 1 billion tonnes of CO2e per year. On top of this, each region will also produce different amounts of CO2 and have their own regulations and goals, which you can see in the graph below. None-the-less, it is important for all areas of the FMCG industry to get on board with net zero goals and make a positive change.
Source: https://ourworldindata.org/co2-and-greenhouse-gas-emissions
How can FMCG companies achieve carbon neutrality?
Carbon neutrality is a critical goal for FMCG companies to address as we try to reduce our impact on the planet. Every brand and supplier within the value chain should be taking proactive measures to reduce their energy consumption, choose more environmentally friendly materials, rethink their current processes and implement sustainability strategies such as investing in renewable energy. All of this will help companies work towards carbon neutrality. Let’s take a closer look at some of the most effective strategies, just remember that the best approach may vary depending on your specific context and the goals of the organization and government.
“Energy production and use is currently responsible for 75% of EU greenhouse gas emissions. It is a part of every aspect of our lives”. Source: World Economic Forum
“The oceans and soil both absorb carbon dioxide from the atmosphere, but forests represent the most effective way to make a difference. EU forests absorb the equivalent of nearly 10% of all EU greenhouse gas emissions each year.” Source: World Economic Forum
Source: https://ourworldindata.org/co2-and-greenhouse-gas-emissions
By embracing carbon neutrality, FMCG companies not only fulfil their environmental responsibilities but also position themselves as leaders in sustainability, shaping a more sustainable future for all.
Get in touch: cleanchaininfo@adec-innovations.com
Flemming Laursen, Head of Sales for CleanChain, is an expert in the maximization of profit for companies through the use of ESG tools, data technology and impact sourcing. He was an entrepreneur and worked as director of sales for multiple businesses prior to joining ADEC Innovations.
Sign up to receive the latest on issues that matter.
Stay up to date with our latest thinking on transforming data into impact.
A purpose-driven provider of Global Business Services solutions that advances sustainable business and operational practices by transforming risk into positive impact and value.
Error: Contact form not found.
Do you have a solution that would make a good addition to the ADEC Enterprise Marketplace? Fill out the form below and we will be in touch within the next 1-2 business days.
Do you have a solution that would make a good addition to the ADEC Enterprise Marketplace? Fill out the form below and we will be in touch within the next 1-2 business days.