Nestlé to invest $3.58bn to achieve net zero target

Nestlé has announced that it plans to invest CHF 3.2 billion ($3.58 billion) over the next five years, in order to halve its carbon emissions by 2030 and achieve net zero by 2050.

As a signatory of the UN ‘Business Ambition for 1.5°C’ pledge, Nestlé says it is one of the first companies to share its net zero roadmap.

With the aim to accelerate its efforts to reduce its climate impact, the Swiss giant will focus on three areas: regenerative agriculture, its operations and product portfolio.

Nestlé will allocate around CHF 1.2 billion ($1.34 billion) to advance regenerative agriculture in its supply chain. It is currently working with farmers and suppliers to implement such practices to improve soil health and maintain and protect diverse ecosystems.

As part of its commitment, Nestlé will plant 20 million trees every year over the next decade in areas where it sources ingredients. In addition, the company’s primary supply chains of key commodities such as palm oil and soy will be deforestation-free by 2022.

Magdi Batato, executive VP and head of operations, said: “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.”

In its operations, the maker of KitKat plans to complete its transition to 100% renewable electricity by 2025 at its 800 sites in 187 countries. This also includes tackling food waste and lowering emissions through vehicle and transport options.

Finally, Nestlé plans to expand its plant-based food and beverage offerings, as well as reformulate products to make them more environmentally friendly. The firm is also increasing the number of ‘carbon neutral’ brands, targeting 2022 for Garden Gourmet and 2025 for Sweet Earth. These come on top of Nespresso, S.Pellegrino and Perrier’s commitment to carbon neutrality by 2022 and the rest of Nestlé Waters category by 2025.

“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.

He added: “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 organisations and our consumers to reduce our environmental footprint.”