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Acting on Climate Change
Our road to net zero
Tackling climate change can’t wait and neither can we.
Global climate change is one of the most pressing issues faced by humanity today. Left unchecked, climate change will accelerate environmental degradation, disrupt global economies and claim untold lives and livelihoods. In fact, it is already apparent in changing weather patterns, more extreme climate events and changes in resource availability.
Nestlé is using its size, scale and reach to tackle climate change and make a big difference. We are transforming our business and using our resources to inspire change.
Building on a decade of action, we will halve our greenhouse gas emissions by 2030 and reach net zero by 2050.
We are playing a leading role by tackling emissions across our business and supply chain. We will use ingredients for our foods and beverages grown through regenerative methods and protect trees and landscapes that help absorb carbon.
Why it matters
Climate change impacts are already apparent in shifting weather patterns, extreme weather events and reduced resource availability. Everyone, globally, will feel the effect of these changes, from the farmers who supply Nestlé to the consumers who enjoy our products.
Under current forecasts, global temperatures could rise by 3–4°C, an increase that would drastically impact people and the planet alike. Interventions and business initiatives must be developed with increased urgency to deliver global reductions in greenhouse gas (GHG) emissions and higher levels of resilience throughout the value chain.
Our path to net zero addresses three main areas:
We work closely with farmers, suppliers and communities where we operate to source our ingredients in a way that generates positive environmental and social impacts.
• Working with farmers to adopt practices that tackle climate change and enhance livelihoods.
• Motivating our suppliers around the world to join us on our journey to net zero.
• Planting 20 million trees every year for the next 10 years.
• Ensuring our suppliers of key commodities are completely deforestation-free by 2022.
Achieving net zero emissions will involve big changes to the way we make our products.
• Moving to 100% renewable electricity for all 800 Nestlé sites.
• Switching global fleet of owned or contracted vehicles to lower emission options by 2022 and to offset any remaining emissions.
Using our know-how and resources, we will transform our portfolio with products that are ‘good for you and good for the planet’.
• Lowering the impact of our recipes
• Improving how we measure and manage emissions
• Moving toward carbon neutral brands
Our ongoing efforts
In Malaysia, we have progressively worked across our supply chain since 2014 to reduce emissions and promote transparency as well as proactive engagement in climate policy. The bulk of our GHG emission are generated during the manufacturing and distribution of finished goods. Our target is to consistently reduce specific GHG emissions in our operations.
In 2020, we achieved a 3.2% reduction in our GHG emissions compared to the year before, and a net reduction in our total carbon footprint recording total direct and indirect GHG emissions of 139,642 tonnes of CO2, equivalent to a reduction of 2.8%.
On top of this, we rolled out the Transportation Hubs Programme (THUB) in October 2020, a digital platform to further optimise transportation planning, carbon emissions and costs. THUB uses state-of-the-art analytics to further optimise the usage of trucks and containers, resulting in fewer trucks on the road moving the same number of products compared to before.
With the implementation of THUB, we have recorded approximately 12% better utilisation of vehicles, equating to an approximate reduction of 10% in transportation-related emissions, or 60 tonnes of CO2 per annum.
With numerous initiatives in place to minimise GHG emissions, we are optimistic that this figure will continue to improve in the coming years.
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