SWIZTERLAND – Swiss multinational food and drink processing conglomerate Nestlé has redoubled its efforts to combat climate change, announcing plans to halve its emissions by 2030 and achieve net zero by 2050 – even as the company grows.
The ambitious sustainability plan is inline with UN ‘Business Ambition for 1.5°C’ pledge which it is a signatory to.
Supporting farmers to advance regenerative agriculture
As part of its efforts to achieve carbon neutrality by 2050, Nestlé has committed to supporting farmers and suppliers to advance regenerative agriculture.
The company is already working with over 500 000 farmers and 150 000 suppliers to support them in implementing regenerative agriculture practice that result in improved soil health and maintain and restore diverse ecosystems.
In return for their efforts, Nestlé is offering to reward farmers by purchasing their goods at a premium, buying bigger quantities and co-investing in necessary capital expenditures.
“With nearly two-thirds of our emissions coming from agriculture, it is clear that regenerative agriculture and reforestation are the focal points of our path to net zero. These efforts will reduce emissions and improve biodiversity at scale,” Magdi Batato, Executive Vice President and Head of Operations, said.
Nestlé expects to source over 14 million tons of its ingredients through regenerative agriculture by 2030, boosting demand for such goods.
Planting hundreds of millions of trees within the next 10 years
Nestlé is also scaling up its reforestation program to plant 20 million trees every year for the next 10 years in the areas where it sources ingredients.
More trees mean more shade for crops, more carbon removed from the atmosphere, higher yields and improved biodiversity and soil health.
The company’s primary supply chains of key commodities, like palm oil and soy, will be deforestation-free by 2022.
Through efforts like these, Nestlé is building longer term partnerships and providing farming communities with greater certainty and higher incomes.
Transitioning to renewable energy
The swiss food manufacturing giant is also planning to complete its transition to 100 percent renewable electricity by 2025.
In its operations, Nestlé expects to complete the transition of its 800 sites in the 187 countries where it operates to 100% renewable electricity within the next five years.
The company is switching its global fleet of vehicles to lower emission options and will reduce and offset business travel by 2022.
It is also implementing water protection and regeneration measures and tackling food waste in its operations.
Increasing number of ‘carbon neutral’ brands
Within its product portfolio, Nestlé is continuously expanding its offering of plant-based food and beverages and is reformulating products to make them more environmentally friendly.
It is increasing the number of ‘carbon neutral’ brands it offers to give consumers the opportunity to contribute to the fight against climate change.
Garden Gourmet plant-based food as well as Garden of Life supplements will achieve carbon neutrality by 2022; Sweet Earth plant-based food, among other brands, will do the same by 2025.
These come on top of Nespresso, S.Pellegrino, Perrier and Acqua Panna’s commitment to carbon neutrality by 2022, with the rest of the Nestlé Waters category achieving the same by 2025.
A US$3.58 billion investment
The company expects to invest a total of CHF 3.2 billion (about US$3.58 billion) over the next five years to accelerate our work, including CHF 1.2 billion (about US$1.34 billion) to spark regenerative agriculture across the company’s supply chain.
These investments will be financed primarily through operational and structural efficiencies to keep this initiative earnings neutral.
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