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    Supermarket food could soon carry eco-labels, says study

    The “Inflation Reduction Act” marks a new chapter for America’s climate policy. Pic: PA

    New US act encourages low-carbon purchases

    Economist chart: Sources: UN Comtrade; UN joint coordination centre; Ukrainian

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    General Assembly Meets on Peacebuilding and Human Rights. Photo by UN

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    New US act encourages low-carbon purchases

    Economist chart: Sources: UN Comtrade; UN joint coordination centre; Ukrainian

    Nine cargo ships have left Ukraine

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Home Topics Environment

Nestlé commits to £1 billion in regenerative agriculture

Will source 14 million tons of “green” ingredients to support the supply chain

by May Davies
December 4, 2020
in Business, Agriculture
Reading Time: 2 mins read
0
Nestlé redoubles efforts to combat climate change

Magdi Batato, Nestlé Executive Vice President and Head of Operations

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Nestlé will spend more than £1 billion on regenerative agriculture across the company’s supply chain, as part of a £2.8 billion investment to combat climate change.

It plans to support the sector by sourcing more than 14 million tons of ingredients through regenerative agriculture by 2030. The focus is a response to the estimate that two thirds of the company’s greenhouse gas emissions are from agriculture.

Primary supply chain commodities like palm oil and soy will be deforestation-free by 2022, it says. Through efforts like these, Nestlé is building longer term partnerships and providing farming communities with greater certainty and higher incomes.

It will scale up reforestation in the areas where it sources ingredients. More trees provide crop shade and remove carbon from the atmosphere, delivering higher yields and improved biodiversity and soil health.

Magdi Batato, Executive Vice President and Head of Operations, said, “With nearly two-thirds of our emissions coming from agriculture, regenerative agriculture and reforestation are the focal points of our path to net zero.

“These efforts will reduce emissions and improve biodiversity at scale. We will also continue to eliminate emissions from our operations and make improvements in our product portfolio.”

The company currently works with 500,000 farmers and 150,000 suppliers to implement regenerative agriculture practices, improving soil health and restoring diverse ecosystems.

“Nearly two-thirds of our emissions come from agriculture”

Nestlé purchases their goods at a premium, buying bigger quantities and co-investing in necessary capital expenditures.

The company says it is expanding its carbon neutral brands. Garden Gourmet plant-based food and Garden of Life supplements will achieve carbon neutrality by 2022. Sweet Earth plant-based food will do the same by 2025.

The company emitted 92 million tonnes of greenhouse gas emissions in 2018, which will serve as the baseline for measuring progress.

“Tackling climate change can’t wait and neither can we. It is imperative to the long-term success of our business,” said Mark Schneider, Nestlé CEO.

“We have a unique opportunity to address climate change, as we operate in nearly every country in the world and have the size, scale and reach to make a difference. We will work together with farmers, industry partners, governments, non-governmental organizations and our consumers to reduce our environmental footprint.”

Quota has published Nestlé’s announcement in full in Comms unit.

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May Davies

May Davies is a founding contributor to Quota. She is a freelance writer specialising in food systems delivered by the business and policy sectors. Contact MayDavies@quota.media.

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