Nestlé has signed the UN's 1.5°C enterprise effort pledge, so the company is one of the first to publish a detailed schedule with deadlines (PDF, 10 MB) ahead of schedule. The company is taking steps to halve emissions by 2030 and achieve climate neutrality by 2050, even as the company grows.
The main directions of action are supporting farmers and suppliers in the introduction of regenerative agriculture, planting hundreds of millions of trees over the next 10 years and completing the company's transition to 100% renewable electricity by 2025. In addition, Nestlé is steadily increasing the number of carbon neutral brands.
Paul Bulcke, Chairman of nestlé's board, said: "The Board recognises the strategic importance of taking decisive steps to tackle climate change. It supports the acceleration and expansion of action to ensure the company's long-term success and contribute to a sustainable tomorrow for future generations."
This action plan is the result of a complete review of Nestlé's businesses and production in order to understand the depth of the problem and identify the measures needed to solve it. In 2018, the company's greenhouse gas emissions amounted to 92 million tons. This will be a point of reference for measuring achievements.
"Tackling climate change cannot wait, nor can we. This is necessary for the long-term success of our company," said Mark Schneider, ceo ofNestlé. "We have a unique opportunity to tackle climate change, as we work in almost every country in the world, and our size, scale and reach make it possible to make a positive difference. We will work with farmers, industry partners, governments, non-governmental organisations and consumers to reduce our environmental impact."
Nestlé's work to achieve climate neutrality covers three main areas.
The company is already working with more than 500,000 farmers and 150,000 suppliers to support the introduction of regenerative farming methods. Such methods improve soil health, as well as preserve and restore diverse ecosystems. In return, Nestlé offers to reward farmers by purchasing their goods at a higher price, buying larger quantities and co-investing the necessary capital costs. Nestlé plans to acquire more than 14 million tonnes of ingredients through regenerative agriculture by 2030, increasing demand for such goods.
Nestlé is also expanding its reforestation programme to plant 20 million trees each year over the next 10 years in areas where the company acquires components. More trees means more shade for crops, more carbon dioxide is attracted from the atmosphere, more harvests, as well as improved biodiversity and soil health. By 2022, the company's core supply chains of raw materials such as palm oil and soy will end deforestation. With such measures, Nestlé builds long-term cooperation and provides farmers' communities with greater certainty and higher incomes.
Nestlé plans to complete the transition to 100% renewable electricity in the 187 countries in which it operates over the next five years. By 2022, the company will change its fleet worldwide to variants with lower emissions and reduce and compensate for business trips. The company also implements water protection and restoration measures in production and prevents food waste.
In the range of goods Nestlé is constantly expanding the supply of plant-sourced food and drink and changing the composition of products to make them more environmentally friendly. The company is increasing the number of carbon neutral brands it offers so that consumers can contribute to the fight against climate change. Plant food "Garden Gourmet", as well as food supplements "Garden of Life", will achieve neutrality in terms of carbon dioxide by 2022; by 2025, plant-based food "Sweet Earth" will also achieve this among other brands. This complements the existing commitments of Nespresso, S. Pellegrino, Perrier and Acqua Panna to ensure carbon neutrality by 2022, and the rest of Nestlé's water category will achieve the same by 2025.
Magdi Batato, Vice-Chairman of nestlé's board and head of production, said: "With almost two thirds of our emissions from agriculture, it is clear that regenerative agriculture and reforestation are nodes on the road to climate neutrality. These efforts will significantly reduce emissions and improve biodiversity. In addition, we will continue to eliminate emissions from production and improve the range of goods. We have a work plan in place and we are committed to it."
Over the next five years, the company plans to invest a total of CHP 3.2 billion to speed up work, including CHP 1.2 billion, to stimulate regenerative agriculture along the company's supply chain. In order for this initiative not to have an impact on revenues, these investments will mainly be financed by increased production and structural efficiency.
The Scientific Objectives Initiative (SBTi) has recognised that Nestlé's emission reduction targets are in line with the levels necessary to achieve the objectives set out in the Paris Agreement. SBTi is the result of cooperation between non-profit organisations, which is considered the international gold standard for assessing climate neutrality commitments. In order to ensure transparency of progress, Nestlé will keep it up to year.