Emissions Reduction

To reach Net Zero by 2040, we will reduce our direct emissions to an absolute minimum, and we will work in partnership with our suppliers and other partners in the value chain to eliminate the 90% of our carbon footprint that results from indirect scope 3 emissions. Wherever we can’t eliminate emissions entirely, we will mitigate or remove those by investing in other climate protection measures. But our primary goal continues to be the systematic reduction of emissions. Through an existing, approved science-based target, by 2030 we will reduce our value chain emissions in scopes 1, 2 and 3 by 25%, with a further 50% reduction in the following decade. This commitment is the ultimate destination of a journey that we started many years ago, including Mission 2025. 

Mission 2025 sustainability commitments

• Reduce direct carbon emissions ratio by 30% compared with 2017.

• 50% of our refrigerators in customer outlets will be energy efficient.

• 50% of total energy used in our plants will be from renewable and clean* sources.

• 100% of the total electricity used in our plants in EU and Switzerland will be from renewable and clean sources.

  *Clean source means Combined Heat and Power (CHP). 

Climate change is impacting our direct operations and our value chain through, for example the increased cost of energy, water and raw materials; carbon taxation; water stress; disruption in raw materials and business operations due to severe weather conditions.

Climate change – caused by greenhouse gas (GHG) emissions, emitted from every business and activity – is leading to global temperature increase and extreme weather conditions around the world. Global warming impacts environment and society across our entire value chain: from suppliers to customers and consumers. The UN’s Intergovernmental Panel on Climate Change (IPCC) has highlighted that urgent climate action is needed if we are to limit global temperature increase to 1.5°C. 

We consider emissions reduction a strategic priority, committing to our ongoing investment along the value chain in energy efficiency, renewable and low carbon technologies, while working in collaboration with our suppliers and other partners. We are committed to reduce emissions to net zero across the whole of our value chain by 2040. Read more about the ultimate destination of a journey that we have already started many years ago.

We set our first carbon reduction commitments in 2006 and since then we have been playing our part in global efforts to tackle climate change. At the beginning of 2016, we were among the first twelve companies globally with approved science-based carbon reduction targets and, since then, our strategy has been in line with the 2015 Paris Climate Change Agreement and the UN Sustainable Development Goals 7 and 13 on Clean Energy and Climate Action.

Towards net zero emissions

In 2021, we committed to achieve net zero emissions across our entire value chain by 2040. This is our most ambitious, complex and forward-looking commitment. We were among the first companies to adopt science-based reduction targets by the Science Based Targets initiative (SBTi). In our net zero roadmap, our starting point is 2017, which is the baseline for our science-based targets.

We have halved direct emissions and reduced our absolute total value chain emissions in scopes 1, 2 and 3 by a third1 from 2010 to the end of 2023, despite a global increase in emissions 2. These results come from our sustained investment and focus, and highlight our consistent approach to decarbonisation.

Scopes 1 and 2

We have taken action on two of the main contributors of scope 1 and 2 emissions:

• Focusing on being more energy efficient by reducing the amount of energy we use.
• Switching to low carbon and sourcing our energy from renewable sources such as solar and hydro power. We delivered several projects that helped to progress reductions in scope 1 and 2 emissions of CO2.

Scope 3: Reducing indirect emissions from our value chain

Over 90% of our emissions are in scope 3. We prioritise three main areas in collaboration with our suppliers: packaging, ingredients and coolers.

• Packaging accounts for 36% of our scope 1,2 and 3 emissions. We are reducing packaging related emissions through a range of actions, including rolling out new packaging collection systems, increasing recycled content, expanding reuse and eliminating unnecessary packaging.
• In 2023, we exceeded our target of having 50% of energy-efficient coolers in shops and outlets by five percentage points, bringing the total to 55%. As a result, we reduced emissions by 127,461 tonnes compared with our 2017 baseline.

We collaborate with our suppliers and partners to encourage them to reduce their own emissions. In 2021, fewer than ten suppliers were in CDP to disclose their emissions, so we set up our emissions supplier programme. By the end of 2023:

• 189 of our significant suppliers disclose their emissions through CDP.
• 117 have already set, or have committed to set, science-based targets.
• These 189 suppliers buy – on average – 26% of their energy from renewable sources.

Engaging suppliers to reduce energy and use renewable energy is key to meeting our NetZeroby40 commitments. In 2023, our Supplier Conference focused on ‘opening up a more sustainable future together’. We were joined by about 200 supply partners. At the conference, we gave them inspiration and tools to start or continue their own sustainability journey and celebrated those who are already on the path to reducing emissions. The event was supported by expert insight from CDP and the World Economic Forum.

Looking ahead

In 2023, we updated our net zero roadmap with two important changes. We integrated our Egyptian operations into our 2030 and NetZeroby2040 climate targets and, in January 2024, we submitted them to the SBTi for validation and approval. We also added new Forest, Land and Agriculture (FLAG) targets.

After SBTi validation, these changes will be reflected in our net zero roadmap:

• In scopes 1 and 2, we integrated Egypt and follow the already established pathway (1.5°C pathway) for 2030 and 2040.
• In scope 3, we integrated Egypt and split our targets into two categories: energy and FLAG.
• In scope 3, our energy-related targets will follow the newly established pathway Well-Below-2-Degrees (WB2D) until 2030 and then the 1.5°C pathway until 2040, our net zero year.

The SBTi introduced the new targets for FLAG in 2023. This new standard guides businesses to split greenhouse gas emissions (GHG) into non-FLAG and FLAG-related categories. Non-FLAG emissions are commonly known as energy-related GHG emissions. FLAG-related emissions apply to commodities from forestry, land and agricultural sectors. For us, this means scope 3 packaging, wood and paper pulp, and sugar and fruit juices. We do not have any FLAG related business or activity under our own operational control. However, we have them in our upstream value chain in forestry and agricultural commodities (scope 3).

We will now update our climate transition plans to reflect all our main decarbonisation strategies, quantify our main strategic resources and milestones, and convert these to a clear set of actions.

Read more about our energy management programmes and energy efficiency activities.

Read more about how we manage climate change risks and opportunities here.