Food and beverage giant Nestlé has signed agreements with Hapag-Lloyd, Maersk and CMA CGM to ship 100% of its cargo on biofuel, which reduces CO2 emissions by 80%.

According to an update from CMA CGM on LinkedIn, biofuel generates 84% fewer carbon emissions, resulting in 70Kt CO2 avoided every year.

Working 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 agreements signed with 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.

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

Nestlé 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 Nestlé. “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.”

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, executive vice president and chief product officer Ocean of A.P. Moller – Maersk, said: “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 Woehrel, CMA CGM EVP Group assets and operations, 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 decarbonize the globality of the scope 3 shipping emissions. This initiative proves that there are some existing solutions to decarbonize scope 3 of BCOs. These constructive solutions are already available with CMA CGM to accelerate on this path.”