Nestlé Cuts 2023 GHGs by 13.5% as it Targets Supply Chain

More than two-thirds of Nestlé’s emissions come from sourcing ingredients, meaning that its procurement and sourcing strategy is vital to its sustainability efforts.
Nestlé's latest sustainability report shows it has cut greenhouse gas emissions at a time of growth, using greener sourcing strategies around ingredients

Nestlé has reported a 13.5% reduction in greenhouse gas (GHG) emissions for 2023.

Its 2023 Key Performance Indicators in its latest sustainability report, also show the company has cut methane emissions by 15.3% in the same period. Both figures are net numbers compared to Nestlé’s 2018 baseline emissions.

The company said the results show that it has “decoupled” its growth from its emissions, and added it is on track to reach a 20% absolute reduction of GHG emissions by 2025.

Nearly all (94%) of the reduction in GHG emissions originate from sustainability initiatives in the company’s operations and supply chain.

Nestlé sourcing greener ingredients 

More than two-thirds of Nestlé’s emissions come from sourcing ingredients, meaning that its procurement and sourcing strategy is vital to its sustainability efforts.  

On this front, Nestlé continues to work across its procurement network to meet sustainability targets. For example, to tackle emissions at farm level, it is working both with suppliers and the farmers from whom it sources on transitioning to regenerative agriculture practices.

At the end of 2023, 15.2% of Nestle's raw materials were sourced from farmers adopting regenerative agriculture practices, and it is aiming to reach 20% by 2025.

The company is also becoming more energy efficient, increasing use of renewable electricity across its operations. As of the end of 2023, 92% of electricity sourced for its manufacturing sites worldwide were from renewable sources.

"Our progress on emissions reductions is proof of our unwavering commitment to our net zero roadmap,” said Antonia Wanner, Group Head of ESG Strategy and Deployment at Nestlé. 

“We are working closely with our partners to help make food production more sustainable, while aiming at enhancing livelihoods across our value chain at the same time. A just transition is crucial to accelerate our efforts.”

Nestlé has worked closely with leading climate solutions provider South Pole, to create its net zero roadmap. South Pole helped it align emission reduction targets and opportunities with the best available science.

It also helped the company roll-out a net zero roadmap that engages not just corporate stakeholders but all of its individual brands, markets and key business units.

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