Climate action in our operations

 

Achieving net zero emissions will involve big changes – including, of course, reducing greenhouse gas emissions in our operations.

Although most of our emissions come from our supply chain, our operational carbon-reduction efforts are also critical for reaching net zero.

Reducing our factory emissions

Our renewable energy strategy

We use a range of different options to purchase renewable electricity for our manufacturing sites, including:

• Energy Attribute Certificates (including Renewable Energy Certificates (RECs), Guarantee of Origin (GoO) and International RECs (IRECs), depending on location)
• Green tariffs
• Power Purchase Agreements (both on-site and off-site)

Regarding thermal energies, which account for around two-thirds of our manufacturing energy consumption, a dedicated internal working group evaluates and explores alternative low- or zero-carbon technologies and fuel sources – such as using biofuels rather than fossil fuels. This is allowing the company to define more precisely its thermal renewable energy roadmap and advocacy strategy.

We will continue building on existing actions, such as the rollout of biomass boilers at several Nestlé factories and the implementation of energy-saving measures such as the installation of LED lighting and phasing out the use of harmful gases used in refrigeration.

100% renewable electricity in all our sites by 2025

We are continuing to ramp up our purchases of renewable electricity, including wind and solar, to reach 100% across our sites globally by 2025. The majority of the renewable electricity we source is generated offsite by third-party suppliers, and Nestlé buys the certificates. In addition to the 78.4% of renewable electricity sourced, we currently have onsite generation at nine factories in Europe and the Middle East, and this may expand in the future. In North America, Nestlé completed its second large-scale solar energy farm investment. Combined, the solar energy farms will represent nearly 50% of Nestlé’s electricity in the U.S. , thereby halving its Scope 2 greenhouse gas emissions.

Introducing sustainable transport

We are introducing sustainable transport options for delivering our products. For example, in France Nestlé Waters launched new rail routes for Perrier, saving an estimated 12 000 tonnes of CO₂e per year. The business is also working with partners to roll out a hydrogen-powered train route in France by 2025. That route will help reduce CO₂e by an estimated 10 000 tonnes per year – a reduction of 90% of current emissions, and the equivalent of more than 30 000 round trips from Paris to Nice by car each year.

Using more renewable thermal energy

Our operations are introducing renewable thermal energy as well as electricity. For example, in Indonesia, one factory has switched from fossil fuels to using locally supplied rice husk as a biofuel. A second factory is expected to complete the switch in 2023.

We have introduced industrial heat pumps, replacing the use of fossil fuels, in La Penilla, Spain, saving 2000 tonnes of CO₂e , and in Konolfingen and Orbe in Switzerland, saving 1000 tonnes of CO₂e each per year.

Improving our emissions data

We are establishing clear key performance indicators (KPIs) and refining our central data tracking systems to better measure progress. This is improving the allocation of emissions and reductions to specific businesses. We are also aligning greenhouse gas accounting methodologies across our brands so that it is easier to make comparisons and create targets. 

Combating climate change with the Cool Food Pledge 

We feed our global workforce roughly 50 million meals every year through our on-site restaurants. Having signed up to the Cool Food Pledge in October 2020, more of those restaurants already include lower-carbon options. This will help us achieve our Pledge commitment to cut a quarter of emissions related to the food served in our restaurants by 2030.

Our restaurants have promoted lower environmental impact choices for many years, offering a range of plant-based and locally sourced options, along with information on the impact of the ingredients. This initiative makes it easier for our employees to choose low-emission foods.