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Rethinking our operations

Solar panels on the field with yellow flowers

 

Achieving net zero emissions will involve big changes to the way we make our products.

We will switch to 100% renewable electricity in our facilities by 2025, invest in energy efficiency measures to reduce the overall amount of energy we use and switch to renewable fuels for thermal heating or other processes.

A key part of our 2050 ambition depends on creating a cleaner, leaner logistics network. We are optimizing routes, filling vehicles more efficiently and working with logistics providers to switch to low emission fuels. These include green electricity, green hydrogen and biofuels made from waste rather than virgin crops.

We will also use more rail and intermodal transport options, and our warehouses are minimizing energy consumption, switching to renewable electricity and reducing waste.

We will increase the proportion of renewable electricity that we use through power purchase agreements, green tariffs, renewable energy certificates and on-site production to achieve 100% renewable electricity by 2025.

Alongside established forms of renewable electricity, such as wind and solar, we will also work with suppliers to increase the availability of renewable thermal energy generated from sources, such as biogas and biomass, by 2030.

In our own operations, we will switch our global fleet of vehicles to lower emission options by 2022 and to offset any remaining emissions. We will initially reduce emissions by shifting to vehicles adhering to the EURO V and VI emissions standards.

In partnership with our logistics suppliers, we will shift away from fossil fuel-powered transport to fuels with lower or zero tailpipe emissions. These include hydrogen, electricity and biofuel powered vehicles, where these fuels have not been produced in competition with food crops.

Investments in IT will allow us to fill vehicles and plan journeys more efficiently. This helps avoid empty miles by connecting inbound and outbound transport, further reducing emissions.

We need to use transport modes in a smart way, such as shifting to lower emission intermodal transport routes like rail and shipping. This also means minimizing air freight as much as possible.

Our lean-logistics transportation hub (T-Hub) program will play an important role in the short and medium term.

The program will create 19 offices at regional and local levels, and centralize the management and coordination of transport, using real-time visibility tools and advanced analytics to enable the proactive management of goods movements and vehicle optimization. By 2022, T-Hubs will be responsible for 80% of our total transport spend.

Explore Nestlé’s Net Zero Roadmap in detail

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Creating Shared Value Progress Report