Climate Change Data

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SIX Swiss Exchange Directive on Information Relating to Corporate Governance, Swiss Code of Best Practice for Corporate Governance

Environmental Metrics

ESG Focus Areas

• Nutrition
• Water
• Rural Development
• Environmental Sustainability
• Compliance

Environmental Achievements

• Reduced greenhouse gas emissions by 17% since 2001
• Reduced energy consumption by 42% per tonne of product since 2001
• Reduced water withdrawals by 58% per tonne of product since 2001
• Reduced total water withdrawals by 28% since 2001
• 54% of palm oil purchases came from sustainable sources in 2011

Social Achievements

• Provided access to water and sanitation for over 100,000 people (since 2007)
• Trained 200,000 farmers through our Nestlé Cocoa Plan
• Invested CHF 2.25 million in water and sanitation, food security and emergency relief initiatives in Côte d’Ivoire
• Expanded global Healthy Kids Programme, reaching 4 million children
• Became the first food and beverage company to pledge commitment to the UN Every Woman Every Child programme

Governance Achievements

• Audited 110 sites through CARE programme in 2011, with no critical non-compliances identified
• Became the first infant formula manufacturer to be included in the FTSE4Good Index
• Rolled out a global online human rights training tool

Climate Goals & Targets

Environmental Challenges

• Water scarcity
• Climate change
• Child labor
• Deforestation
• Maintaining progress in water efficiency while delivering business growth
• Implementing good water management practices across complex supply chains
• Growing number of product recalls
• Affordability and accessibility of healthful foods
• Supplier human rights
• General resource availability

Mitigation Strategies

• Water-saving projects in factories
• Water Resources Review programme at 100 Nestlé sites
• CHF 28 million invested in water-saving and cleaning programmes
• Developed a new Traceability programme to cover 12 major raw materials by 2012
• Partnered with the Fair Labor Association to address child labor in cocoa and hazelnut supply chains
• Partnership with The Forest Trust to eliminate deforestation from supply chain
• Investing in water-saving technologies
• Sharing sustainable water use best practice and guidelines
• Promoting sustainable development through SAIN
• Improving supply chain traceability
• Implementing Responsible Sourcing Guidelines

Supply Chain Management

Supplier Audits: 1910 audits in 2011

Responsible Procurement

• Nestlé Supplier Code
• Responsible Sourcing Audit Programme
• Responsible Sourcing Traceability Programme

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Climate change impacts on agriculture

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 3.1

Certifications: ISO 14001

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2011 Stockholm Industry Water Award
• 27th World Environment Center Gold Medal award
• United Nations Development Programme award for Best Practices in the Application of Solar Water Heating
• Food and Drink Federation Gold Award for Community Partnership

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SIX Swiss Exchange Directive on Information relating to Corporate Governance, Swiss Code of Best Practice for Corporate Governance

Third-party Assurance: KPMG

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SIX Swiss Exchange Directive on Information relating to Corporate Governance, Swiss Code of Best Practice for Corporate Governance

Third-party Assurance: KPMG

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SIX Swiss Exchange Directive on Information relating to Corporate Governance, Swiss Code of Best Practice for Corporate Governance

Environmental Metrics

ESG Focus Areas

• environmental, social and governance performance
• climate change
• sustainability

Governance Achievements

• expanded the role of our Nomination and Sustainability Committee to oversee all aspects of our environmental, social and governance performance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SIX Swiss Exchange Directive on Information relating to Corporate Governance, Swiss Code of Best Practice for Corporate Governance

Third-party Assurance: KPMG

Environmental Metrics

ESG Focus Areas

• Deforestation
• Peat development
• Exploitation
• Smallholder inclusion
• Labor rights
• Community rights
• Land rights

Environmental Achievements

• Achieved 70% traceability to plantation and 96% traceability to mill.
• Verified that 70% of palm oil sourced came from lands not deforested after December 31, 2015.
• Planted one million trees in Sabah, Malaysia under Project RiLeaf.
• Completed planting of 15 hectares of mangrove forests in Mexico.

Social Achievements

• Supported the expansion of a worker helpline in Malaysia, reaching nearly 3,000 new workers.
• Supported the development and rollout of guidance and tools covering fair targets and payments, children in plantations, ethical recruitment, and conflict management.
• Supported seven palm oil smallholder projects in Indonesia, Malaysia, Côte d’Ivoire, Brazil, Peru, Ecuador, and Mexico.
• Ended suspension of Olmeca (REPSA) due to progress made in addressing past issues.

Governance Achievements

• Published third annual list of Nestlé palm oil Tier 1 suppliers and mills.
• Continued to update palm oil Transparency Dashboard.
• Logged and investigated 44 grievances, suspending five companies from supply chains.

Climate Goals & Targets

Environmental Challenges

• Challenges remain to gather evidence needed for 100% deforestation-free verification, particularly with small and medium mills sourcing from independent smallholder farmers.
• Covid-19 limited ability to conduct ground verification.
• Deforestation is still occurring in palm oil producing regions.
• Deforestation increasingly occurs in small-scale patches and outside of concessions.
• Balancing no-deforestation verification and support for smallholder livelihoods.

Mitigation Strategies

• Scaled up resources for data collection, analysis, and supplier engagement to act more rapidly on Starling alerts.
• Moving towards a Forest Positive strategy.
• Undertook a Forest Footprint pilot exercise in Aceh, Indonesia.
• Scaled up conservation and reforestation work.
• Increased collaboration with industry partners and multi-stakeholder platforms.

Supply Chain Management

Responsible Procurement

• Nestlé Responsible Sourcing Standard
• High Carbon Stock Approach (HCSA)
• RSPO certification

Climate-Related Risks & Opportunities

Physical Risks

• Deforestation
• Peatland degradation

Opportunities

• Forest conservation and restoration
• GHG emissions reduction

Reporting Standards

Frameworks Used: Nestlé Responsible Sourcing (RS) Standard, High Carbon Stock Approach (HCSA), Roundtable on Sustainable Palm Oil (RSPO)

UN Sustainable Development Goals

• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through deforestation prevention, sustainable livelihoods for smallholders, and forest conservation and restoration.

Environmental Metrics

ESG Focus Areas

• Advancing regenerative food systems at scale
• Contributing to nutritious and sustainable diets
• Helping to protect, renew and restore natural resources
• Strengthening communities
• Operating responsibly

Environmental Achievements

• Reduced absolute GHG emissions by 4.0 million tonnes of CO2e
• Increased renewable electricity sourced to 63.7% (from 50.5% in 2020)
• 97.2% of primary supply chains assessed as deforestation-free (meat, palm oil, pulp & paper, soya, sugar)
• Reduced virgin plastic use by 8.1% since 2018
• 85.4% of total packaging recyclable or reusable
• Reduced water use in factories by 2.3 million m3

Social Achievements

• Launched new plant-based products (Vuna, Wunda, Vrimp, vEGGie)
• Increased proportion of women in top 200+ senior executive positions to 27.2% (from 25.6% in 2020)
• 1.44 million young people with access to economic opportunities through Nestlé needs YOUth
• 76.3% cage-free eggs globally
• Launched first prediabetes program in Malaysia
• Launched SimpLink, a solution to simplify tube feeding

Governance Achievements

• Launched new ESG and Sustainability Council and Sustainability Committee
• Published Human Rights Framework and Roadmap
• Launched single global reporting channel for non-compliance concerns ('Speak Up')

Climate Goals & Targets

Environmental Challenges

• Climate change impacting farmers and communities
• Degradation of forests, land, soil, and waterways
• COVID-19 pandemic challenges
• Supply chain disruptions
• Water stress
• Inadequate waste management infrastructure

Mitigation Strategies

• Investing CHF 1.2 billion by 2025 in regenerative agriculture
• Committing to source 50% of key ingredients through regenerative methods by 2030
• Implementing Net Zero Roadmap
• Developing alternative sourcing strategies
• Implementing more than 100 projects to regenerate water cycles by 2025
• Investing in sustainable logistics, packaging, and manufacturing
• Supporting development of recycling infrastructure
• Working with suppliers to adopt GFSI-recognized food safety programs

Supply Chain Management

Supplier Audits: 247 CARE audits in 2021

Responsible Procurement

• Responsible Sourcing Standard
• Nestlé Cocoa Plan
• Nescafé Plan
• Nespresso AAA Sustainable Quality™ Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Regenerative agriculture

Reporting Standards

Frameworks Used: GRI Standards (Core), SASB Standard for Processed Foods, World Economic Forum Stakeholder Capitalism metrics

Certifications: FSSC 22000 (97% of manufacturing and R&D sites), B Corp (Nuun)

Third-party Assurance: Bureau Veritas (AA1000AS v3 Type 2); EY (ISAE 3000 limited assurance on selected KPIs)

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Plant-based products (Vuna, Wunda, Vrimp, vEGGie)
• Incoa (cocoa-pulp sweetened chocolate)
• Paper straws
• Recyclable paper packaging for Smarties

Awards & Recognition

• Bloomberg Gender Equality Index
• European Round Table’s D&I Toolkit

Environmental Metrics

ESG Focus Areas

• Regenerative food systems
• Net Zero emissions
• Deforestation-free supply chains
• Water stewardship
• Human rights
• Biodiversity
• Sustainable packaging
• Youth employment
• Diversity and inclusion
• Ethical business practices

Environmental Achievements

• Greenhouse gas emissions fell below 2018 baseline despite company growth, reducing by 6.4 million tonnes compared to a business-as-usual scenario.
• 99.1% of primary supply chains for meat, palm oil, pulp and paper, soy, and sugar assessed as deforestation-free.
• 6.8% of key ingredients sourced through regenerative agriculture methods.
• Reduced water use in factories by 2.38 million m3.
• 81.9% of plastic packaging designed for recycling.
• 10.5% reduction in virgin plastics versus 2018 baseline.
• Secured 4.3 million tonnes of CO2e removals through nature-based solutions.

Social Achievements

• Delivered approximately 130 billion servings of affordable nutrition fortified with micronutrients.
• Helped 5.62 million young people gain access to economic opportunities.
• Increased proportion of women in top 200+ senior executive positions to 30.2%.
• Launched income accelerator program in cocoa to address child labor risks, supporting over 10,000 farming households.
• Launched Nescafé Plan 2030 to support regenerative agriculture and improve farmer livelihoods.

Governance Achievements

• Executive Board remuneration linked to ESG indicators.
• Ranked first among 25 food and beverage companies in ATNI’s Spotlight on Lobbying scorecard.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions, inflation, energy shortages, and the invasion of Ukraine.
• Transitioning hundreds of thousands of smallholder farmers to deforestation-free and regenerative practices.
• Rising food insecurity.
• High emissions from some commodities like dairy.
• Lack of accurate farm-level emissions data in some regions.
• Pre-agreed volume commitments with suppliers.
• Variations in crop taste across regions.

Mitigation Strategies

• Supporting farmers through initiatives like the Nescafé Plan 2030 and income accelerator programs.
• Focusing on reducing Scope 1 and 2 emissions and scaling up regenerative agriculture.
• Implementing a Forest Positive strategy.
• Exploring and deploying tools to reduce methane emissions from dairy.
• Shifting sourcing to suppliers with existing regenerative agriculture practices.
• Providing technical and financial support to farmers.
• Investing in low-carbon logistics and renewable electricity.
• Developing climate-smart sourcing strategies.
• Implementing nature-based solutions for carbon removal.

Supply Chain Management

Supplier Audits: CARE audits conducted on 264 locations in 2022.

Responsible Procurement

• Nestlé Responsible Sourcing Standard
• Supplier sustainability requirements
• Code of conduct
• Child Risk Assessment Framework toolkit

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts, wildfires)

Transition Risks

• Regulatory changes
• Market shifts towards sustainable products

Opportunities

• Development of energy-efficient products and processes
• Scaling up regenerative agriculture

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Standard for Processed Foods, World Economic Forum Stakeholder Capitalism metrics

Certifications: FSSC 22000 (98% of manufacturing and R&D sites)

Third-party Assurance: Bureau Veritas (AA1000AS v3 Type 2); EY (ISAE 3000)

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Nestlé's initiatives contribute to these goals through various programs and strategies related to water stewardship, renewable energy, youth employment, sustainable sourcing, climate action, biodiversity conservation, and stakeholder partnerships.

Sustainable Products & Innovation

• Plant-based products (Garden Gourmet, Milo, Nestlé Veggie, etc.)
• Regenerative agriculture practices
• Recyclable packaging
• Micronutrient-fortified products

Awards & Recognition

• Bloomberg Gender-Equality Index
• Disability Equality Index (Nestlé USA and Nestlé Purina PetCare)
• Human Rights Campaign Foundation’s Corporate Equality Index (Nestlé USA, Nestlé Health Science, Nestlé Purina PetCare)
• Solar Impulse Efficient Solution Label (Garden Gourmet)

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Added an ESG-related KPI as a fourth performance metric in the Long-Term Incentive Plan for 20% of its grant value and increased the disclosure on the target achievements under short- and long-term incentive plans.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Ernst & Young Ltd

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed