Provide climate change leadership
Climate change leadership
We have an opportunity to address climate change not only by making our company more sustainable, but by helping others in our supply chain do the same.
Why it matters
Climate change is affecting farmers across the globe, including those who supply us. Reducing GHG emissions, switching to renewable energy sources and taking other actions to mitigate the effects of climate change are necessary to help ensure the ongoing success of our own business and those in our supply chain, as well as protecting the world around us.
As a major global business, it’s crucial that we provide leadership on climate change. To take the lead on this urgent issue, we’re transforming our business to reduce GHG emissions, end deforestation, reduce food loss and waste, improve soil health and move toward offering more plant-based proteins.
What we are doing
We have taken a holistic, science-based target approach to tackling climate change, reducing GHG emissions and increasing our use of renewable energy and cleaner fuels.
As a member of RE100, aim to procure 100% of our electricity from renewable sources within the shortest practical timescale.
Our result: 34% electricity purchased from renewable sources.
Reduce GHG emissions (Scope 1 and 2) per tonne of product in every product category to achieve an overall reduction of 35% in our manufacturing operations versus 2010.
Our result: 32% reduction in GHG emissions (Scope 1 and 2) by product category since 2010.
Reduce GHG emissions per tonne of product by 10% in our distribution operations versus 2014.
Our result: 7.6% reduction of GHG emissions per tonne of product, covered in our distribution operations versus 2014.
Reduce GHG emissions by 10% in the 100 major warehouses we use versus 2014.
Our result: 38.7% reduction of GHG emissions per tonne of product in the 100 major warehouses we use versus 2014.
Expand the use of natural refrigerants, which do not harm the ozone layer and have a negligible impact on climate change, in our industrial refrigeration systems.
Our result: 10 new refrigeration systems using natural refrigerants installed.
We remain on track to achieve our objectives, as we have reduced our overall Scope 1 and 2 GHG emissions in our manufacturing operations versus 2010 by 32%, and reduced emissions per tonne of product in every product category (see below).
Direct GHG emissions:
3.3 million tonnes of CO2eq (5.2% reduction)
62 kg of CO2eq per tonne of product (38.2% reduction)
Indirect GHG emissions:
2.5 million tonnes of CO2eq (4.9% reduction)
47 kg of CO2eq per tonne of product (2.6% reduction)
GHG emissions rate (Scope 1 and 2) by product category
(kg CO2eq per tonne)
|Powdered and liquid beverages||798||391||51%|
|Milk products and ice cream||348||238||32%|
|Nutrition and healthcare||580||478||11%|
|Prepared dishes and cooking aids||286||208||28%|
|Overall GHG emissions rate||162||109||32%|
Environmental Target Setting (ETS) program, details of 2018 factory savings
Our ETS programme is designed to help our factory teams improve water and energy efficiency and reduce GHG emissions. For example, in 2018, our Toluca coffee factory – our biggest water user and energy consumer in Nestlé Mexico – sought to explore energy- and water-saving opportunities. We identified possible annual energy savings of 305 000 GJ, 116 000 m3 of water withdrawal reductions and a fall of 14 000 tonnes of CO2 emissions through the recovery and reuse of water and heat. The 29 projects built into the action plan are expected to save the factory CHF 3.3 million annually when all initiatives are implemented.
Transportation is an area where we can make a big dent in our emissions. In Côte d’Ivoire, for example, our logistics team significantly improved vehicle capacity use to 96% in 2018. And Herta – now part of the FRET 21 initiative in France – has committed to reduce the CO2 emissions from its transportation by 10% by 2020. It will use four main approaches: load optimization, ‘green’ trucks, route planning and responsible purchasing from carriers.
How a delivery pallet redesign reduced damaged goods
When cartons of our protein supplement BOOST reached retail sites damaged, the supply chain team at Nestlé Health Science wondered how to reconfigure the pallets. The original pallet design had an open space in its center to allow for movement during shipping. The team eliminated this by adding an extra case of BOOST per layer, meaning the pallets had more capacity and better structural integrity.
As a result, payload per truck increased, the need for storage at our distribution centers reduced and fewer damaged goods meant less waste. In the year to March 2018, the new configuration – now standard practice – meant we used 104 fewer trucks, reduced CO2 emissions by 108 tonnes and saved USD 443 000 (CHF 449 202).
Using natural refrigerants
We are investing CHF 310 million in replacing synthetic refrigerants in industrial refrigeration with natural alternatives. In 2018, we installed 10 new refrigeration systems using natural refrigerants.
For example, we have installed Nestlé’s first hydrocarbon chiller in Lae, Papua New Guinea. The chiller uses 55 kg of propane as refrigerant (a gas that has an extremely low global warming potential) and consumes less energy than similar systems using synthetic refrigerants.
Full steam ahead – our plant in Turku switches to clean energy
In October 2018, our baby-food factory in Turku, Finland became our second zero emission plant in Europe by purchasing steam and heat from a new wood plant and renewable electricity from wind and hydro source to power its operations. Because the plant also sends no waste to landfill, it is now a proud double zero factory – Nestlé’s second, with another in Sweden.
The steam-generating plant was developed by several businesses in the locality, and we’re proud to play a part in such an exciting climate leadership project.