Accelerate, Transform, Regenerate: Nestlé’s Net Roadmap
Accelerate, Transform, Regenerate:Nestlé’s NetRoadmapFebruary 20211Nestlé’s Net Zero Roadmap
contents3We commit to net zero by 20504The Nestlé Net Zero Roadmap5Measuring our carbon footprint6Our total emissions by Scope7Emissions covered by our pledge8Our key actions at a glance9 Sourcing our ingredients sustainably– Dairy and livestock14 Sourcing our ingredients sustainably– Soil and forests19 Transforming our product portfolio23 Evolving our packaging2Nestlé’s Net Zero Roadmap28 Using renewable energy to manufactureour products32 Driving toward cleaner logistics37 Removing carbon from the atmosphere40 Moving toward carbon-neutral brands44 Using our voice to galvanize action48 Glossary
WE COMMITTO NetBY 2050Climate change is one of society’s greatestchallenges. It is also one of the greatest risksto the future of our business.Solving it requires all of us to act with greaturgency. As the world’s biggest food and beveragecompany, we have the size, scale and reach toinfluence others and to inspire collective action.Now we are going beyond our commitments:we are specifying our plan to halve Nestlé’sgreenhouse gas (GHG) emissions by 2030and to achieve net zero by 2050 – even asour business continues to grow. We are makingour footprint transparent and will make ourprogress clear.People will be at the heart of our climate actions.We strive to ensure that our initiatives promotea just transition toward a regenerative food systemfor all.The work behind all of this is detailed, rigorousand intense. It requires us to examine not onlyour operations but also each of our products tosee how we can make them better for the planet.And as most of our emissions occur outsideof our own four walls, we must go on the groundto collaborate with our suppliers and help themimprove their production processes.At the other end of the value chain, we lookforward to working with our customers to shapetheir offering and with our consumers to encouragemore sustainable purchasing and consumption.We need action from governments and regulatorsto create clear and fair rules for companies tomake progress.But Nestlé must first lead by example. It is only bytaking tangible actions that we can convince othersto do the same. And it is only together that we canmake a positive difference.3Nestlé’s Net Zero Roadmap
Nestlé’s NetRoadmapOur path toregenerationfor futuregenerationsMoving fasterScaling upDelivering our promiseWe’re excited to hit the soil running. We’re accelerating our work in manufacturing,packaging and carbon-neutral brands. We’re also investing CHF 1.2 billion to helpspark regenerative agriculture across our supply chain, as part of a total investmentof CHF 3.2 billion by 2025.Further down the greener path, we willinvest in new technologies and fundamentalchanges to our products and businessesaround the globe.Advanced agricultural techniques will delivera regenerative food system at scale, supported byzero emission logistics and company operations.We will balance any remaining emissions throughhigh-quality natural climate solutions that benefitpeople and the planet.Solving the problem meansidentifying the problem. We foundNestlé emitted 92 million tonnes ofgreenhouse gas emissions in 2018*.Now we know the extent, we knowthe road ahead.Our milestones*Total GHG emissions were 113 milliontonnes (CO2 equivalent) in 2018,92 of which are in scope of our UN1.5 C pledge.Companies and their emissionsgrow over time. That’s why we’repromising to be net zero based onour 2018 baseline, no matter howmuch our company grows.100%deforestationfree for primarysupply chainby 2022Switch ourglobal carfleet to loweremission optionsby 2022100% of ourpackagingrecyclable orreusable by2025100% certifiedsustainablecocoa andcoffee by 2025Plant 20 milliontrees a yearNestlé Watersbecomescarbon neutralby 2025100% certifiedsustainablepalm oil by2023Source20% of ds by2025100%renewableelectricity inall our sitesby 2025Use morerenewablethermalenergy in ourmanufacturingCut virginplastic in ourpackaging bya third by 2025Plant 200million treesby 2030Source 50% ofkey ingredientsthroughregenerativeagriculturalmethods by2030Path to zero emissions by 2050Business as usualBy 2025, wewill reduce ouremissions by 20%Emissions by operation(million tonnes of CO2e, 2018)65.6 Sourcing our ingredients7.0Manufacturing our products11.0Packaging our products7.5Managing logistics0.8 Travel4and employee commutingNestlé’s Net Zero Roadmap2018netzeroBy 2050, we will reach20212025By 2030, wewill reduce ouremissions by 50%20302050
measuring ourcarbon footprintWe take a whole life cycle approach to determiningthe carbon footprint of our products. It is a processthat involves working with many others, such asfarmers, logistics providers and consumers.To achieve net zero GHG emissions by 2050,we need to act throughout our value chain.Product emissions from farm to forkUPSTREAMDOWNSTREAMSuppliers to NestléAgricultureSourcing high-qualityingredientsfrom suppliers,co-operatives anddirect from farmers.5Raw materialsuppliersSourcing materialsand ingredients andtransporting themto Nestlé.Nestlé’s Net Zero RoadmapNestlé operationsCustomers, consumers and end of lifeManufacturingPackagingLogisticsMaking products.Packaging ourmanufacturedproducts.Storing and deliveringour products aroundthe world.Retailand businesschannelsOffering and sellingproducts to shoppersin stores.ConsumersEnd of lifeOur consumersenjoying Nestlé’sproducts whereverthey are.For productsand packaging.
OUR TOTAL EMISSIONSBY SCOPEEmissions from our direct operations, knownas Scope 1 and Scope 2, accounted for just 5%of our GHG emissions. The vast majority ofour GHG emissions (95%) come from activitiesin our supply chain. As a result, that is wherewe focus most of our efforts.Nestlé’s total GHG emissions by Scopemillion tonnes of CO2e, in 2018Scope 1Emitted directly 3.33.0%from sources we own or control such as on-sitecombustion (coal, natural gas, fuel for company’svehicle fleet).2.2%Scope 3All other indirect emissions 107.394.8%in our value chain, both upstream and downstream,such as sourcing and use of sold products.Figures have been rounded.6Nestlé’s Net Zero Roadmap2.5113TotalScope 2Emitted indirectly 2.5from the generation of purchased energylike electricity and heating/cooling network.3.3million tonnesof CO2e107.3
Emissions coveredby our pledgeProgress toward net zero will be measuredagainst our 2018 GHG emissions. Wecalculated this baseline and defined ourfootprint in partnership with South Pole,an external consultant.In setting our targets, we have followedthe Science Based Targets initiative’s (SBTi)criteria. They provide a clearly defined pathwayfor coupling future-proof growth with reductionsin GHG emissions. As our Scope 3 emissionsmake up 95% of our footprint, we are addressingmore than 80% of these. The SBTi approvedour targets in November 2020.This data is our starting point. As we enhanceour ability to identify and measure emissions,and better use the data that has been disclosedby our suppliers and others, our monitoringwill improve. We intend to also share ourscience-based methodology for calculatingGHG emissions to help push new frontiersin climate data transparency for the food andbeverage industry.7Nestlé’s Net Zero RoadmapNestlé’s in-scope GHG emissions by operation (92 out of 113)million tonnes of CO2e, in 2018Scope 3Sourcingour ingredients65.671.4%7.07.7%11.011.9%65.6Dairy and livestock 34.2Soil and forests 25.0Other 6.4Scope 1, 2 & 3Manufacturingour products92TotalScope 3Packagingour productsmillion tonnesof CO2eScope 3Managinglogistics7.58.2%11.0Scope 3Travel and employeecommuting0.87.50.8%Figures have been rounded.What’s not includedAs a company at the start of its net zerojourney, following SBTi guidelines for now wehave excluded the following emissions from ournet zero pledge:7.00.8Scope 3Scope 3Consumer useof sold products12.7 million tonnesof CO2ePurchased services,leased assets, capitalgoods, investments8.6 million tonnes of CO2e
OUR KEY ACTIONSAT A GLANCESourcing ouringredients sustainablyEvolvingour packagingDriving towardcleaner logisticsMoving towardcarbon-neutral brandsWorking with farmers, suppliersand communities to source waysthat protect ecosystems, reduceemissions and enhance livelihoods.Packaging helps keep our food safebut causes waste. Investments inpackaging innovations and newbusiness models help keep wasteout of landfill.Optimizing routes, filling vehiclesmore efficiently, switching tolow-emission fuels and renewableelectricity and using morerail transport.As consumers demand increasinglytransparent and sustainableproducts, our brands will continueto adapt, embracing sustainability. airy and livestockDPage 9Page 23Page 40Page 32 Soil and forestsPage 14Transformingour product portfolioUsing renewable energyto manufacture our productsRemoving carbonfrom the atmosphereUsing our voiceto galvanize actionCreating new, low-carbon products,and reformulating existing onesusing ingredients and processesthat are good for both consumersand planet.Making products more sustainablyby switching to renewableelectricity, using more renewablefuels and investingin energy efficiency.Using nature’s own solutions suchas agroforestry, soil management,and restoring peatlands and foreststo lock GHGs in the ground.Forging deep engagementon climate issues with farmers,industry, governments, NGOsand communities.Page 198Nestlé’s Net Zero RoadmapPage 28Page 37Page 44
Sourcing ouringredients sustainably34.2Dairy and livestockDairy and livestock ingredients areour largest single source of emissions.Charting a course to net zero meansdriving a major shift in the way wesource and produce these nutritiousingredients, investing in innovationsand new business models.Some of the most exciting agricultural innovationsare in dairy and livestock farming, making thema vital part of the overall solution to achieve netzero agriculture. By strengthening our programswith livestock farmers to restore land, for instance,we can scale up initiatives to absorb morecarbon from the atmosphere.9Nestlé’s Net Zero RoadmapAs we do so, we aim to continue improvinglivelihoods, investing in climate and nature withuniversity-led research that will help developclimate‑resilient and more equitable farmingcommunities. Continuously improving animalwelfare will remain a primary focus throughoutour work.Sourcing our ingredientsOur dairy and livestock supply chains accountedfor 34.2 million tonnes of CO2e in 2018 – morethan half of the emissions created in sourcingour ingredients.
Sourcing our ingredientssustainably Dairy and livestockOur key actionsTo find the most effective ways of reducingemissions, in partnership with the Sustainabilityin Business Lab at ETH Zurich, we developeda simulation tool to evaluate actions andcosts for dairy, which represents most ofour livestock emissions.Feeding livestock with more sustainable feedWe need to work with our farmers to ensurethe feed used comes from regenerativeagricultural practices. This will help avoiddeforestation and reduce the carbon impactof feeding livestock. utting the methane produced by animalsCMethane produced during digestion, knownas enteric fermentation, is the most challengingsource of emissions to mitigate in cattle. Wewill support innovation in rumen modificationthat reduces emissions, mainly throughthe inclusion of feed additives and dietarysupplements, with the help of dedicatedresearch and development (R&D) supportfor the Agriculture team.Making farms more productivethrough better herd managementSupporting agripreneurship will help increasethe productivity and livelihoods of farmers,by developing sustainable business modelsand helping them adopt successful businesspractices. The use of training, investments,better technologies and professional herdmanagement all play a significant role indriving continuous improvement.10Nestlé’s Net Zero Roadmap
Sourcing our ingredientssustainably Dairy and livestockOur key actions (continued)Grassland management andincreasing carbon storage in the soilSoil is an excellent carbon sink. By introducingregenerative agricultural practices such asbetter paddock management and silvopasture –the practice of integrating trees into areaswhere livestock forage – and switching toorganic fertilizers, we can improve theability of farmland to store carbon.Helping suppliers become more innovativeOur support for R&D into new technologieswill help increase the efficiency of dairy farms,maximizing output while using minimum energyand improving animal welfare.11Nestlé’s Net Zero RoadmapMeasures include: Improving manure management,including the use of biogas digesters. Creating an R&D accelerator to driveinnovation in dairy. In China, expanding our Dairy Farming Instituteand launching a Grain Competence Centerto coordinate research and encourageknowledge sharing. Piloting net zero farms, including partneringwith the US dairy industry and academia toimplement new technologies and economicallyviable practices.Working with our suppliers, we will focuson collecting and validating emissions data,helping improve accuracy and enabling usto work more effectively together indifferent countries.
Sourcing our ingredientssustainably Dairy and livestockDairy and livestock supply chain emissionsand reductions, 2018 to 2030Actions to reach our 2030 emissions goal1million tonnes of CO2eBy 2030,reduce emissions toProjected 2030business-as-usualemissions50.6million tonnesof CO2e2018 emissions baselineplus our forecast companygrowth (16.4 million tonnesof CO2e) to 203029.3-8.4-3.2million tonnesof CO2e-3.2 aking farmsMmore productivethrough training andbetter herd managementCaring for grasslandto store more carbonby using regenerativeagriculture andorganic fertilizersCutting the methaneproduced by animalsduring digestion throughnutrition changes-2.7Feeding livestock withmore sustainable feed-2.3Other livestockactions-1.0-0.51 These actions have been defined based on research and data as at December 2020.The contributions to emissions reductions may be subject to change over time.12Nestlé’s Net Zero RoadmapHelping suppliersbecome moreenergy efficientMaking the mostof manure and usingbiogas digesters
Sourcing our ingredientssustainably Dairy and livestockOur projected reductions by 2030Looking to 2050Our actions will reduce the emissions fromsourcing our dairy and livestock ingredients by21 million tonnes by 2030. This represents 23%of our in-scope 2018 carbon footprint.We will continue to support family-operatedfarming systems through regenerativeagricultural practices that help reduce thecarbon footprint of dairy farming. Activitieswill also include investing in partnershipsto develop technologies to help take farmingto the next level of sustainability.For fresh milk, reductions in emission intensitywill largely be made through improvementsin productivity in less advanced economies.For milk derivatives, some of our suppliersare already developing ingredients with a lowercarbon footprint and we will continue workingclosely with them in this complex area.13Nestlé’s Net Zero Roadmap
Sourcing ouringredients sustainably25.0Soil and forestsGood food depends on diverse andquality ingredients, so protecting theecosystems where they grow is vitalto our long-term success.A significant quantity of the ingredients wepurchase come from natural ecosystems, whichare under pressure from agriculture: 27% of ourin-scope 2018 footprint can be linked back tothese agricultural ingredients.We are going to accelerate our efforts to protectand restore these areas, working with farmersand suppliers to enhance biodiversity and limitGHG emissions. This includes avoiding/eliminatingdeforestation and natural habitat conservationas well as planting hundreds of millions of treesto unlock the power of agroforestry andreforestation in tackling emissions.14Nestlé’s Net Zero RoadmapA key step in this journey will be to workwith our suppliers and farmers to improvetransparency around where our ingredients comefrom and how they are produced, as part of anoverall commitment to drive up standards. Thiswill include working with others to strengthenland rights for local communities and the conceptof Free, Prior and Informed Consent (FPIC).People remain at the heart of our climateactions, whatever the initiative or scheme.We aim to deliver new economic opportunitiesfor young people and women in rural communities,and protect food and nutrition security. We willsupport young agripreneurs to implementregenerative agricultural practices.Sourcing our ingredients25 million tonnes of CO2e emissions in 2018were generated through the sourcing of ouragricultural ingredients.
Sourcing our ingredientssustainably Soil and forestsOur key actionsWith the support of South Pole, we havedeveloped a model to calculate the GHGmitigation potential of agricultural land thatassesses various actions and their costs.Delivering against our zero deforestationcommitment and removing carbon throughagroforestry and regenerative agriculture arekey to reaching net zero. As part of a strategyof more ambitious engagement with oursuppliers, we are now broadening theseprograms to accelerate progress.15Nestlé’s Net Zero RoadmapAgroforestry and shade managementSome crops, such as cocoa and coffee, growbetter in the shade. We are encouraging farmersto plant more shade trees to protect these cropsfrom heat stress and other threats such asexcessive rainfall. Shade trees also improve watermanagement and biodiversity, and absorb carbonfrom the atmosphere to drive down emissions.We also support alley cropping, or plantingbetween hedgerows, which can bring similarbenefits when growing crops such as cereals,fruits and vegetables.
Sourcing our ingredientssustainably Soil and forestsOur key actions (continued)Improving soil healthImproving soil health makes land moreproductive. We will help improve agriculturalpractices such as no tillage, cover cropping,multiple crop rotation and switching to organicfertilizers for most of our soil-grown ingredients.These practices will support nutrient uptake,water retention and fertility, and restore thesoil’s carbon content.Composting of agricultural waste, such asempty fruit bunches from palm oil plantations,is another inexpensive way of enriching the soil.Agroforestry in border areasField margins and farm borders offer importantopportunities to support our climate goals.Forest and peatlands can be restored, orspecific projects such as windbreaks introduced,helping to enhance ecosystem resilience.16Nestlé’s Net Zero RoadmapPreventing and remediating land use changeThe conversion of natural landscapes foringredients in our supply chain is estimatedto account for between 25 and 35% of our totalingredient emissions. For key crop supply chains,such as cocoa, coffee, palm oil and soybean,the proportion can be even higher.Our zero deforestation commitment formsa critical element of our journey to net zero.Alongside new partnerships and initiatives,farm‑level assessments, sustainabilitycertifications and satellite monitoring systemswill continuously scrutinize and prevent forestcover and land use change.Where forest degradation has happened,we have ambitious reforestation plans and areset to plant at least 3 million trees in key sourcinglocations by 2021, and a further 3 million by 2023.We have also invested CHF 2.5 million incritical forest conservation and restorationin Côte d’Ivoire.This is the start of a broader and much largerglobal conservation and restoration strategyto remove more carbon and deliver importantecosystem services in the landscapes we sourcefrom. Our ambition is to make conservationand restoration standard practice throughoutour supply chains.
Sourcing our ingredientssustainably Soil and forestsSoil and forests supply chain emissionsand reductions, 2018 to 2030Actions to reach our 20
2 Nestlé’s Net Zero Roadmap contents 3 We commit to net zero by 2050 4 The Nestlé Net Zero Roadmap 5 Measuring our carbon footprint 6 Our total emissions by Scope 7 Emissions covered by our pledge 8 Our key actions at a glance 9 Sourcing our ingredients sustainably – Dairy and livestock 14 Sourcing our ingredients sustainably – Soil and forests 19 Transforming our product portfolio
FT Fourier Transform DFT Discrete Fourier Transform FFT Fast Fourier Transform WT Wavelet Transform . CDDWT Complex Double Density Wavelet Transform PCWT Projection based Complex Wavelet Transform viii. . Appendix B 150 Appendix C 152 References 153 xiii.
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