FMCG'S ECO TURNS

WITH THE IMPACT OF CLIMATE CHANGE ALREADY AFFECTING SUPPLY CHAINS AND MARKETS, INDIA'S LEADING FMCG COMPANIES ARE ADOPTING SUSTAINABLE PRACTICES. BUT CHALLENGES PERSIST

- ARNAB DUTTA

SUSTAINABILITY is increasingly becoming the only viable option for leading consumer goods companies in India. Climate change is affecting agricultural yield, impacting supply chains of the country's top fastmoving consumer goods (FMCG) majors, prompting major players like ITC, Hindustan Unilever Limited (HUL), Nestlé India and Dabur to focus on adopting suitable practices as well as innovate new processes to go green.

Growing awareness among governments and companies is already changing how these businesses use fuels that harm the environment. According to global standards, the most direct sources of pollution fall under Scope 1 and Scope 2 emissions. These include greenhouse gases released from burning fuel on-site, refrigerant leaks and electricity used by the company.

Scope 3 emissions, however, are much broader. They cover the whole supply chain, from the goods a company buys to the waste it produces and how its products are transported. Tackling Scope 3 emissions is more complex but essential for achieving net zero, where a company balances the emissions it creates, with actions that remove or offset the same amount from the environment.

Take the case of homegrown ayurvedic products maker Dabur India. It has set an ambitious goal to become a net-zero emissions enterprise by 2045 and as part of the endeavour, it is eliminating coal from operations and aiming for 60% reliance on renewable energy sources for its Scope 1 and Scope 2 energy requirements.