Why it matters
Climate change is a global issue and not one that can be tackled by just one person, one organization or one government. If greenhouse gas (GHG) emissions are to be stabilized, let alone reduced, it is going to take everyone working together to combat damaging practices. Following the redefinition of the ‘safe’ limit of climate change from 2°C to 1.5°C by the Intergovernmental Panel on Climate Change, policy changes and climate initiatives need to be more ambitious than ever before. As a global company, Nestlé is well positioned to advocate for, and promote, long-term engagement in climate policy, both within and outside of our organization.
What we are doing
In 2019, we worked with the Task Force on Climate-related Financial Disclosures (TCFD) to better understand our business resiliency under different climate change scenarios. We also engaged with stakeholders to better understand what disclosures are important to them. Read more about it in our 2019 progress report.
Demonstrating our commitment
Assessing our resilience in various climate change scenarios
Nestlé has responded to a call to action made by the TCFD for more corporations to disclose information on business strategy resilience in various climate change scenarios. Collaborating with the Pentland Centre for Sustainability in Business at Lancaster University, UK, we undertook a project to assess the physical and transitional risks of climate change scenarios for three of our key commodities: coffee, wheat and dairy. This science-led initiative was designed to explore the impact of climate change on Nestlé’s business, rather than the impact of our operations on the environment.
The assessment explored the impacts of two scenarios: Worse Case (with an associated warming of 4–5°C) and Paris Agreement (1.5–2°C warming). Preliminary findings indicated that physical risks will become more prevalent over the long term and will be more significant under an outcome that reaches 4–5°C of warming. Transitional risks will occur over a shorter period if a move is made from business-as-usual to a low-carbon economy, and these are most likely to manifest themselves in terms of financial, market and reputational changes. Our first in-depth disclosure on the results of this project will be made in 2020, aligning with the reporting requirements of the TCFD.