Generated Summary
This report, produced by the Changing Markets Foundation, critically examines Nestlé’s net-zero plan, assessing its alignment with the UN’s Integrity Matters report and broader scientific consensus on climate action. The study focuses on Nestlé’s greenhouse gas (GHG) emissions, particularly those stemming from its dairy and livestock supply chains, and evaluates the company’s strategies for reducing these emissions. The research employs a detailed analysis of Nestlé’s targets, actions, and reporting practices, highlighting discrepancies and potential greenwashing within its net-zero commitments. The report emphasizes the importance of credible and ambitious climate plans from large companies to mitigate climate change and provides recommendations for Nestlé to enhance its climate strategy.
Key Findings & Statistics
- Nestlé’s 2022 emissions exceeded 112.9 million tonnes of CO2 equivalent (CO2e), with 96.4% from scope 3 emissions.
- The estimated methane emissions from Nestlé’s dairy supply chains are approximately 8.7 million tonnes of CO2e, which is twice the methane emissions of Switzerland’s entire livestock sector.
- Nestlé’s plan to reduce emissions targets dairy and livestock ingredients, accounting for approximately 37% of emissions (34.2 million tonnes of CO2e) by 2050.
- Nestlé’s dairy and livestock emissions are forecast to grow under a business-as-usual scenario by 16.4 million tonnes to 50.6 million tonnes.
- Nestlé states it will reduce these emissions by 42%, but this translates to only a 14% reduction from the 2018 baseline.
- From 2018 to 2022, the company’s GHG emissions targeted by the net-zero plan have only dropped by 1%.
- The Corporate Climate Responsibility Monitor 2023 calculated that the plan will only deliver 16-21% reductions by 2030.
- Planet Tracker calculates that for Nestlé to align its upstream activities with a 1.5°C pathway, it would need to invest US$3.2 billion instead of the current US$1.3 billion.
- In 2021, Nestlé considered 94.3 million tonnes of in-scope emissions (82% of total emissions).
- Current trends demonstrate Nestlé’s lack of ambition: from 2018 (when this plan was launched) to 2022, the company’s GHG emissions targeted by the net-zero plan have only dropped by 1%.
- In spite of its large footprint, not all of Nestlé’s emissions are included in its pledge to reduce emissions and ultimately be a net-zero company. For the base year of 2018, Nestlé considered 92 million of the 113 million tonnes of emitted CO₂e to be in scope for its pledge (82% of total emissions)
- The French dairy group Danone announced in January 2023 a plan to cut its absolute methane emissions from its fresh milk supply chains by 30% by 2030 (compared to a 2020 baseline).
- The Corporate Climate Responsibility Monitor calculates that excluding offsetting of emissions, which Nestlé categorises as insetting, ‘they will reduce emissions from dairy, livestock, soil and forests… by just 6% between 2018 and 2030’.
Other Important Findings
- Nestlé’s net-zero plan is assessed against the UN guidance on net-zero commitments (Integrity Matters report). The analysis reveals that Nestlé falls short of meeting the relevant recommendations.
- The report highlights that Nestlé is falling short of meeting any of the nine relevant recommendations from the UN Integrity Matters report. It has partially met five and completely failed four.
- The reliance on regenerative agriculture practices is a key aspect of Nestlé’s strategy, but the report notes that these practices may not ensure significant and permanent cuts in livestock-associated greenhouse gas emissions.
- The report indicates that Nestlé is not prioritizing actions recommended by science, such as targeted methane mitigation measures.
- Nestlé’s accounting methods are criticized for using a business-as-usual scenario, which masks the lack of substantial emission reductions.
- The report points out that the company’s focus on offsetting and insetting, rather than direct emission reductions, is a major concern, given that emissions cuts from these strategies are difficult to measure and verify, and are thus unreliable.
- The report references that Nestlé’s net-zero plan lacks teeth and is at risk of being cast as a greenwashing exercise.
- Nestlé’s intention to grow its dairy portfolio contradicts scientific evidence that reductions in production of high methane products such as beef and dairy are key to meeting climate targets.
- The document says: In a crucial decade for climate action, 13 Nestlé is not prioritising actions recommended by the science, such as targeted methane mitigation measures from its supply chains.
Limitations Noted in the Document
- The analysis is based on publicly available information.
- The report focuses on the dairy sector and emissions, but does not include emissions of other ingredients in Nestlé’s supply chains, such as meat and palm oil, which also lead to large methane emissions, meaning that it is likely a very conservative estimate of Nestlé’s methane emissions.
- The study acknowledges the challenges in verifying the projected emissions savings of mitigation measures.
- The study notes the difficulty in assessing the long-term impacts of methane reduction measures, as only small trials have been carried out.
- The document does not provide a detailed breakdown of the additionality criteria of its emissions insets (offsets of emissions within its supply chain).
- The report acknowledges that there is no information on working with governments or development institutions in transitions in developing countries.
Conclusion
The Changing Markets Foundation report underscores significant shortcomings in Nestlé’s approach to achieving net-zero emissions, particularly in its dairy operations. The analysis reveals a misalignment with the UN’s Integrity Matters standards, casting doubt on the credibility of Nestlé’s net-zero plan. The report emphasizes that Nestlé’s reliance on offsetting and insetting, without prioritizing direct emission reductions, undermines its commitment to climate action. The report suggests a lack of ambition and transparency in Nestlé’s climate strategy. The report highlights a disconnect between Nestlé’s public commitments and its actual progress. The report underscores the need for a more comprehensive and ambitious strategy focused on reducing emissions from dairy and livestock, as well as shifting to plant-based alternatives. The report concludes with a call for greater transparency, improved reporting, and a commitment to align its actions with the UN’s Integrity Matters guidelines. The report recommends that Nestlé should adopt a specific methane reduction target, and that it should diversify by including the transition toward plant-based products as part of its climate strategy. Moreover, the report emphasizes the need for increased transparency and robust verification of its climate efforts to ensure accountability and credibility.