Nestlé plans to reduce greenhouse gases across its supply chain
Nestle has pledged to reach zero net greenhouse gas emissions by 2050, a goal that requires many changes from the worlds biggest food producer and the farmers it works with. By helping protect its supply chain from extreme weather, Nestle aims to protect its bottom line. It also signals to consumers who are increasingly concerned about the environment and may see Nestle as part of the problem that the company is trying to help. Global warming poses a huge threat to a business like Nestle, which relies heavily on agricultural products and water. Scientific evidence shows that the food and agricultural sectors will be among those most affected by climate change, said Magdi Batato, the companys head of operations, during a call with reporters. This is why it matters to Nestle. Climate change is one of the greatest risks to the future of our business, Mark Schneider, the companys CEO, said in a statement Thursday. The company has already made several steps toward reducing emissions, but with the new target Nestle is speeding up its work, Schneider said. That means switching over to more sustainable ingredients in Nestle (NSRGY) products, selling more plant-based foods and using greener packaging. It also means helping capture carbon by replanting trees, working with suppliers to use more sustainable farming practices, and using renewable energy in more Nestle (NSRGY) factories, warehouses and offices. The company will set more specific targets over the next two years. The task is huge, Batato said in a statement. But we are determined to make it happen. The changes are designed to play a role in keeping the planet from warming more than 1.5 degrees Celsius above pre-industrial levels, Nestle explained. The companys earlier efforts were aligned with a two-degree goal, a commonly used threshold. Nestle has already made a number of investments that could help it achieve the 2050 commitment. Nestle is participating in Loop, a service that lets consumers buy products in reusable packages. It plans to expand its plant-based offerings through Sweet Earth, a vegetarian meal company it acquired a few years ago. And it has made a number of recycling commitments. These efforts could help temper environmental criticism against the company. Activists have called Nestle a contributor to plastic pollution. And the dairy industry, which Nestle relies on for its chocolate, ice cream and creamers, is a producer of greenhouse gases (Nestles commitments include helping make its dairy suppliers more sustainable). Other big food companies are also trying to make their supply chains more sustainable. Mondelez International, which makes Toblerone, Cadbury and Milka, is planning to switch to sustainable cocoa for its chocolate brands by 2025.