In addition to joining the Initiative, Nestlé also will become one of a select group of multinational “1.5°C Supply Chain Leaders.” These companies will work to drive change across global supply chains and support small- and medium-sized enterprises (SMEs) through the SME Climate Hub. The leaders will encourage and assist suppliers to halve emissions before 2030 and achieve net zero greehouse gas (GHG) emissions by 2050 at the latest.
The move comes shortly after the publication of Nestlé’s Net Zero Roadmap, detailing the actions and investments the company will prioritize on climate change. Nestlé will work with its 150,000 suppliers to reach net zero emissions, with a particular focus on the 30,000 companies that supply it with raw and packaging materials around the world. "Tackling climate change can't wait and neither can we. It is imperative to the long-term success of our business," said Mark Schneider, Nestlé CEO. "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."
Nestlé's work to get to net zero spans three main areas:
- The company is already working with over 500 000 farmers and 150 000 suppliers to support them in implementing regenerative agriculture practices. Such practices improve soil health and maintain and restore diverse ecosystems. In return, Nestlé is offering to reward farmers by purchasing their goods at a premium, buying bigger quantities and co-investing in necessary capital expenditures. Nestlé expects to source over 14 million tons of its ingredients through regenerative agriculture by 2030, boosting demand for such goods.
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.
- 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.
- 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.
“Nestlé is proud to join the Exponential Roadmap Initiative as a supply chain leader,” said Magdi Batato, Nestlé’s Global Head of Operations. “More than 90% of our carbon emissions come from our supply chain, so working with suppliers is critical for achieving net zero emissions by 2050. We look forward to collaborating with others on this journey.”