Nestlé today announced its ambition to achieve zero net greenhouse gas emissions by 2050. It embraces the most ambitious aim of the Paris Agreement, to limit global temperature rise to 1.5°C. Ahead of the U.N. Secretary-General’s Climate Action Summit this month, Nestlé will sign the ‘Business Ambition for 1.5°C’ pledge.
With this announcement Nestlé is accelerating its climate change efforts. This builds on a decade of work to reduce greenhouse gas emissions. Over the past four years, Nestlé has aligned its objectives with science-based targets to keep the temperature increase below 2°C. The company is determined to play a leading role in tackling climate change. Over the next two years, it will lay out a time-bound plan including interim targets consistent with the 1.5°C path. Nestlé will review its progress annually to ensure it is on track.
Nestlé Chairman Paul Bulcke said:
“The Board recognizes the strategic importance of taking decisive measures to address climate change. 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.”
To achieve its 2050 ambition, some of the company’s specific actions include:
- Speeding up the transformation of its products in line with consumer trends and choices. Nestlé will launch more products that have a better environmental footprint and contribute to a balanced diet. This includes more plant-based food and beverage options. Nestlé will also look to reformulate its products using more climate-friendly ingredients. Consumer demand for such products is rapidly increasing, and Nestlé’s core strategy is in line with this shift. The company is also moving to alternative packaging materials.
- Scaling up initiatives in agriculture to absorb more carbon. Nestlé will strengthen its programs with farmers to restore land and limit greenhouse gas emissions. This includes improved management of its dairy supply chain. Nestlé will step up efforts to protect forests by replanting trees and enhancing biodiversity. All of these initiatives will help build resilient agricultural communities.
- Using 100% renewable electricity in Nestlé factories, warehouses, logistics and offices. A third of Nestlé factories (143) are already using 100% renewable electricity. Nestlé will continue to increase the use of energy from renewable sources. This will enable suppliers to invest in new infrastructure such as wind and solar farms.
Mark Schneider, Nestlé CEO, said:
“Tackling climate change can’t wait and neither can we. It is imperative to the long-term success of our business. 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.”
Magdi Batato, Executive Vice President and Head of Operations, added:
”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. 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.”
Nestlé stated that it expects to invest a total of CHF 3.2 billion over the next five years to accelerate its climate work, including CHF 1.2 billion to spark regenerative agriculture across the company’s supply chain.
The company also stated that it has had its emissions reduction targets approved by the Science Based Targets initiative (SBTi), as consistent with levels required to meet the goals of the Paris Agreement. Nestlé is also a signatory of the UN ‘Business Ambition for 1.5°C’ pledge, a global coalition of UN agencies, business and industry leaders committed to setting ambitious science-based emissions reduction targets.
