Nestle set out a detailed plan, announced investments and said it is already moving towards halving its emissions by 2030
Nestle said it is already working with over 5,000,00 farmers and 1,50,000 suppliers to support them in implementing regenerative agriculture practices
New Delhi: Swiss packaged food and beverages company Nestle S.A on Thursday said it is committing 3.2 billion Swiss francs over a period of five years to combat climate change and achieve net zero emissions by 2050.
In September 2019 Nestle had publicly announced its plans to achieve zero net emissions by 2050.
On Thursday, Nestle set out a detailed plan, announced investments and said it is already moving towards halving its emissions by 2030.
In India, the company plans to use recyclable packaging by 2025, said Suresh Narayanan, chairman and managing director, Nestlé India.
“At Nestlé India, we have been accelerating our actions towards reducing greenhouse gas emissions across our manufacturing locations and transport of goods. Our ambition is to achieve 100% recyclable or reusable packaging by 2025.We are working towards shaping a waste-free future and driving new behaviour," he said.
Globally, the company has laid out three main areas within the organization as well as its sourcing operations and its brands where it will take steps to limit its carbon footprint.
These include regenerative agriculture practices, a transition to 100% renewable electricity by 2025, apart from reformulating its products to make them more sustainable.
The investment includes 1.2 billion Swiss francs to spark regenerative agriculture across the company's supply chain, the company said in a statement to the press.
The company that sells Nescafe coffee, Purina pet food and Maggi noodles said that it is continuously expanding its offering of plant-based food and beverages and is reformulating products to make them more environmentally-friendly.
Its Nespresso, S.Pellegrino, Perrier and Acqua Panna's brands will turn carbon neutral by 2022.
On making its sourcing sustainable, Nestle said it is already working with over 5,000,00 farmers and 1,50,000 suppliers to support them in implementing regenerative agriculture practices.
Nestlé is also purchasing goods from farmers at a premium, buying bigger quantities and co-investing in necessary capital expenditures, it said.
Across its operations including 800 sites globally—Nestle plans to switch to 100% renewable energy over five years. This will be applicable to the 187 countries where it is present.
These investments will be financed primarily through operational and structural efficiencies and will be earnings neutral, the company said.
“Clearly, this comes with major investments, but it's also important that we're not seeing sustainability and the carbon neutral road as a cost item only; to us it's about future proofing the company, it's about a moral obligation, a moral commitment here to make good on preserving the planet we all live on," Mark Schneider, Nestlé CEO told reporters while addressing a virtual event.
Schneider said consumer relevance is key to how brands function today.
“And we've seen in more and more categories that consumers are willing to pay a premium for products that have a favourable environmental footprint," he said.