Nestlé

Nestlé discloses that it has conducted a climate scenario analysis that considers physical and transition risks in alignment with TCFD recommendations. It considers 1.5-degree and 2-degree scenarios and provides a mitigation strategy for its key ingredients, notably animal agriculture products like dairy and meat. The company identified growing consumer demand for plant-based products as an opportunity.

Nestlé discloses that dairy ingredients are its largest single source of emissions, accounting for 24% of total emissions. The company does not provide disclosure for other animal proteins such as beef, poultry, fish and seafood.

Nestlé disclosed a 1.5C SBTi validated target for Scope 3 emissions. The company aims to reduce absolute Scope 3 FLAG GHG emissions by 50% by 2030 and 75% by 2050 from a 2018 baseline year.

Nestlé recognises the climate mitigation potential posed by protein diversification; by 2030 through ingredient substitution, plant-based proteins are anticipated to contribute 1.4 million tons of CO2eq to its GHG reduction target. In 2023, replacing animal proteins with plant-based sources led to a 0.74 million tonnes emissions reduction.

Nestlé is strategically integrating protein diversification into its climate transition plans. The company plans to invest CHF 3.2 billion by 2025 into supporting efforts relating to its Net Zero Roadmap. One of the initiatives included is switching to plant-based ingredients in product categories such as frozen meals, pizzas and dairy. However, the company has not formalised this ambition into a protein diversification target.

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The Nestlé Board oversees climate-related matters and strategy, including oversight over the company's Net Zero roadmap, which encompasses its strategy for diversifying protein sources. However, it is unclear whether progress on protein diversification is reported to the board.

Multiple members of the company's board have expertise in sustainability, with one board member serving on the EAT-Lancet Commission on healthy sustainable diets.

One board member has previously served on the EAT-Lancet Commission on healthy sustainable diets, and has a background in nutrition.

The company has released its climate advocacy report outlining its climate and biodiversity advocacy efforts. The company has additionally disclosed a list of lobbying efforts in its CDP reporting.

The company discloses in its CDP Climate Change 2023 report that its lobbying related to its food business is aligned with positive climate outcomes. For example, the company has disclosed that it is lobbying the EU regulation on deforestation-free products and the EU Product Environmental Footprint Proposal.

The company discloses a list of the main industry associations it comprises and provides this breakdown by geography.

Nestlé has disclosed that none of its major affiliations display significant misalignment, or differing perspectives, from Nestlé's own position, which is in line with the Paris Agreement's 1.5C trajectory. When the company's industry associations do not conform to the Paris Agreement, Nestlé proactively engages with them, such as with Food Drink Europe to secure a specific commitment aimed at fulfilling the objectives of the Paris Agreement.

In 2021, Nestlé committed to a just and equitable transition towards a regenerative food system. The company has set targets to source 20% by 2025 and 50% by 2030 of key ingredients from farmers transitioning to regenerative agriculture methods. This commitment to a Just Transition in regenerative agriculture covers its farmers producing key ingredients, including dairy, meat, poultry and eggs.

The company provided extensive disclosure relating to its commitments to supporting farmers in its supply chain in the transition to regenerative agricultural practices. However, no evidence was found relating to the company supporting its own workers in the Just Transition.

Nestlé has been supporting dairy farmers in transitioning towards regenerative practices. In Brazil, its 'Nature por NINHO' certification programme now includes regenerative agricultural practices, rewarding farmers for adopting them. In the UK, all of Nestlé’s fresh milk suppliers have been working on a regenerative agriculture plan since December 2021; the average greenhouse gas emissions of farms have been reduced by 19% in the first two years.

The company offers a high-level overview of its approach to a Just Transition concerning regenerative agriculture. It plans to provide farmers with technical and financial assistance to promote sustainability in their practices. However, the company does not provide a timeline or specific milestones for achieving its strategy, and it is unclear how the company will specifically support suppliers and operations in animal agriculture.

Nestlé states its Human Rights Framework is the foundation of its Just Transition strategy. The company discloses that its Framework was developed in consultation with stakeholders, including business and human rights experts. However, there is no evidence that the company has developed a Just Transition strategy in consultation with all relevant social actors, including farmers and workers in the company's value chain.

Nestlé's Just Transition strategy is related to its transition to regenerative farming. The company aims to source 20% of its key ingredients from farmers adopting regenerative agricultural practices by 2025, and 50% by 2030. While these metrics are a positive first step, FAIRR encourages the company to disclose metrics related to other areas of the transition such as protein diversification (e.g % of farmers transitioning away from animal agriculture towards plant-based protein production).

As of 2023, 15.2% of Nestlé's fresh milk, dairy derivatives, cocoa, green coffee, cereals, soy, and vegetables came from such farmers, a significant increase from 6.8% in 2022.

Nestlé is expanding the availability of alternative protein sources to its consumers across key markets through several initiatives: the launch of plant-based products; the acquisition of Orgain (along with the recent introduction of the company's first precision fermentation protein powder; and the employment of over 300 dedicated personnel working on its plant-based portfolio.

The company disclosed that 300 employees work on its plant-based portfolio.

Nestlé is adding whole grains, fibers, and micronutrients while cutting sugars, salt, and saturated fats. It's expanding its offering of ambient plant-based proteins, which are affordable. It is unclear to what extent the company is focusing on improving the nutrition of these products. It's also experimenting with hybrid products like NIDO in Nigeria, combining milk and locally sourced soy catering to the demand for lower carbon footprint proteins.

At the brand level, Garden Gourmet discloses that most of its products score A or B on Nutri-score, with recent launches under this brand being scored A*. At the company level, Nestlé is reformulating products to their veggie and wholegrain content.

Garden Gourmet aims to enhance product sustainability by sourcing 50% of its soy protein from regenerative farms by the end of 2023, with plans for further increases annually. It also seeks to boost its European soy sourcing to further reduce emissions. Similarly, Sweet Earth, another brand under the company, is focusing on sustainability through regenerative farming, zero waste, and eco-friendly packaging for its plant-based products.

Nestlé commits to engaging consumers to increase demand for lower carbon footprint products. The company does not explicitly mention plant-based products in this commitment.

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Nestle is working to promote the nutritional attributes of some of its plant-based products. The brand Garden Gourmet ensures that all its products have positive scores on front-of-pack nutritional labelling schemes, such as the UK traffic light system and Nutri-score. It is unclear from the evidence provided whether the company is promoting these attributes across its largest markets and brands.

Nestle's UK and Ireland operations supported Veganuary's 2022 campaign to support vegan and plant-based products. It promotes its brand Wunda as a Carbon Neutral brand certified by the UK Carbon Trust, and Garden Gourmet as a Nutri score 'A', high in protein plant-based line. The company also has other plant-brands like Carnation Vegan.

The company mentions that growing trends show an increase in consumer demand for alternative proteins. However, there is no evidence of it conducting its consumer research itself or through a third-party.

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