Nestlé Achieves Notable Greenhouse Gas Reductions In 2023, Progressing Towards Net Zero

In a significant stride towards environmental sustainability, Nestlé has reported a notable reduction in its greenhouse gas (GHG) emissions for the year 2023. Achieving a 13.5% net decrease compared to its 2018 figures, the company has also seen a reduction of over 15.3% in methane emissions. This progress is particularly noteworthy as it has been accomplished alongside business growth, demonstrating Nestlé's ability to separate its operational expansion from its environmental impact.

Antonia Wanner, Group Head of ESG Strategy and Deployment at Nestlé, highlighted the company's dedication to its net-zero objectives. "Our progress on emissions reductions is proof of our unwavering commitment to our net zero roadmap," she stated. The company's efforts are focused on making food production more sustainable and enhancing livelihoods within its value chain, emphasizing the importance of a just transition in accelerating these initiatives.

Nestlé's approach encompasses all three scopes of activities, with 94% of its GHG emission reductions in 2023 stemming from its operations and supply chain. A significant portion of Nestlé's GHG emissions originates from sourcing ingredients, with dairy identified as the primary contributor. To address this, Nestlé is collaborating with suppliers and farmers to promote regenerative agriculture practices. These practices are based on five key pillars: diverse cropping systems and livestock integration, biodiversity, collective and landscape actions, soil health, and water security and quality.

The company's commitment extends to providing support for farmers transitioning to these sustainable practices through technical, collaborative, or financial assistance. Notable projects contributing to emission reductions include initiatives under the Ninho brand in Brazil within the dairy and livestock sectors. By the end of 2023, 15.2% of Nestlé's raw materials were sourced from farmers employing regenerative agriculture practices, with a goal to reach 20% by 2025.

Enhancing energy efficiency within its operations and increasing the use of renewable electricity are also key components of Nestlé's strategy. By the end of 2023, 91.9% of the electricity sourced for its global manufacturing sites was renewable. The company is actively working on further reducing emissions through agroforestry, deforestation prevention, new farming practices, and boosting innovation in products and agri-tech through research and development and external partnerships.

Nestlé has set near and long-term science-based emissions reduction targets approved by the Science Based Targets initiative (SBTi). The SBTi has validated Nestlé’s net-zero science-based target for 2050, including specific Forest, Land and Agriculture (FLAG) sector objectives for 2030 and 2050. The company emphasizes that it does not rely on offsets or voluntary market credits to meet its SBTi-validated targets.

The company's commitment to transparency is evident in its 2023 Key Performance Indicators (KPIs), which are EY assured and detailed in Nestlé’s Creating Shared Value and Sustainability Report 2023.

Nestlé's achievements in reducing GHG emissions while continuing to grow its business underscore the potential for large corporations to contribute positively to environmental sustainability. Through strategic initiatives across its operations and supply chain, Nestlé is setting an example for how companies can work towards a more sustainable future without compromising on growth.