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    Breaking News

    Nestlé Announces Time-Bound Plan to Address Climate Change

    The company aims to achieve net zero emissions by 2050.

    Nestlé Announces Time-Bound Plan to Address Climate Change
    Regenerative agriculture, operations, and eco-friendly product offerings are the company's three main areas of focus.
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    12.03.20
    Nestlé, a signatory of the U.N.’s Business Ambition for 1.5°C Pledge, recently became one of the first companies involved to share its detailed, time-bound plan to adhere to the pledge ahead of schedule.
     
    The company reports that it is taking measures to halve its greenhouse gas emissions by 2030 and achieve net zero emissions by 2050, while growing. Staples of the plan include supporting farmers and suppliers in the expansion of regenerative agriculture, planting hundreds of trees within the next 10 years, and completing the company’s transition to 100% renewable electricity by the year 2025. Additionally, the company is increasing its number of ‘carbon-neutral’ brands.
     
    Within the next five years, the company anticipates spending a total of 3.2 billion Swiss Francs (about $3.58 billion) in its emissions reduction plan, over a third of which will specifically be used for regenerative agriculture.
     
    “The Board recognizes the strategic importance of taking decisive measures to address climate change,” Paul Bulcke, Nestlé Chairman, said. “It supports accelerating and scaling up our work to ensure the long-term success of the company and to contribute to a sustainable future for generations to come.”
     
    Nestlé reports that, after a review of its businesses and operations, the company emitted 92 million tons of greenhouse gas emissions in 2018 – this number will serve as a baseline for measuring progress. The company reports that its emission reduction targets were approved by the Science Based Targets Initiative, a collaboration of nonprofits dedicated to assessing net zero commitments.
     
    “Tackling climate change can’t wait and neither can we,” Mark Schneider, Nestlé CEO, said. “We have a unique opportunity to address climate change, as we operate in nearly every country in the world and have the size, scale, and reach to make a difference. We will work together with farmers, industry partners, governments, non-governmental organizations, and our consumers to reduce our environmental footprint.”
     
    Path to Net Zero
    There are three primary areas in Nestlé’s plan to achieve net zero emissions by 2050.  The first is regenerative agriculture. The company announced that it is already working with over 500,000 farmers and 150,000 suppliers to support their implementation of regenerative agriculture practices, known to improve soil health and maintain/restore diverse ecosystems. The expansion will be rewarded by purchasing goods at a premium, buying bigger quantities, and co-investing in capital expenditures. The company anticipates sourcing 14 million tons of ingredients through regenerative agriculture by 2030. Additionally, the company plans to plant 20 million trees every year for the next ten years in areas where it sources ingredients. The company has also committed to making its primary supply chains of key commodities like palm oil and soy deforestation-free within two years.
     
    The company will also focus on operations, and transition its 800 sites across the globe so that they rely upon 100% renewable electricity within five years. The company will also switch its fleet of commercial vehicles to lower emission options, and reduce/offset business travel by 2022. It is also implementing water protection and regeneration measures, and tackling food waste, in its operations.
     
    Thirdly, the company is focusing on its portfolio of products, promising to offer more plant-based foods and beverages, and reformulating products to make them more environmentally friendly. Brands such as Garden Gourmet, Garden of Life Supplements, Sweet Earth, Nespresso, S. Pellegrino, Perrier, and Acqua Panna have all committed to carbon neutrality within the next 2-5 years.
     
    “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,” Magdi Batato, executive vice president and head of operations, said. “These efforts will reduce emissions and improve biodiversity at scale. We will also continue to eliminate emissions from our operations and make improvements in our product portfolio. We have our work cut out for us and we are committed to delivering.”
     
     
     
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