Nestlé to reduce greenhouse gases across supply chain
Nestlé is striving to achieve zero net greenhouse gas emissions by 2050, and limit the global temperature rise to 1.5°C, as per the Paris Agreement. Nestlé will sign the ‘Business Ambition for 1.5°C’ pledge before the U.N. Secretary-General’s Climate Action Summit.
Over the last four years, Nestlé has utilised science-based targets to keep the temperature increase below 2°C. Over the next two years, the company intends to lay out a time-bound plan with interim targets consistent with the 1.5°C path, reviewing its progress annually to ensure progress.
“Climate change is one of the biggest threats we face as a society. It is also one of the greatest risks to the future of our business,” said Mark Schneider, Nestlé CEO. “We are running out of time to avoid the worst effects of global warming. That is why we are setting a bolder ambition to reach a net-zero future. Deploying Nestlé’s global resources and industry know-how, we know we can make a difference at significant scale. Our journey to net zero has already started. Now, we are accelerating our efforts,” Schneider said.
To achieve its 2050 ambition, Nestlé will launch products that have a better environmental footprint and contribute to a balanced diet. As consumer demand for environmentally friendly and healthy products increases, Nestlé will reformulate its products using climate-friendly ingredients and move to alternative packaging materials.
Nestlé will also scale up initiatives in agriculture to absorb more carbon, strengthening its programs with farmers to restore land and reduce greenhouse gas emissions. The company will protect forests by replanting trees, to help build resilient agricultural communities.
The company also intends to use 100% renewable electricity in factories, warehouses, logistics and offices. Nestlé will also continue to advocate for government policies to ensure all sectors move towards the 1.5°C goal.
“To align our goals to the 1.5°C pathway, we are transforming our operations. This will lead to a major shift in the way our ingredients are produced and sourced. We will need our suppliers to embark on this journey with us. The task is huge but we are determined to make it happen,” said Magdi Batato, Executive Vice President and Head of Operations at Nestlé.
Alongside its 2050 ambition, Nestlé is making its distribution networks and warehouses more efficient by optimising to reduce fuel consumption and lower carbon emissions. Greenhouse gas emissions have decreased by 40% in the company’s top 100 distribution centres, with the total reduction of emissions since 2014 across its entire value chain equating to taking 1.2 million cars off the road.
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