Deforestation-free supply chains

The planet needs thriving forest landscapes. Working toward deforestation-free supply chains is a key component of our net-zero commitment.

Population growth and increasing demand for food mean natural ecosystems can be converted into farmland, even though trees and forests play a critical role in protecting biodiversity and limiting the effects of climate change. 

But the past decade has shown us that seeking to address deforestation after it has occurred is not enough. It is essential that we continue to adopt responsible sourcing practices and promote the social benefits to farming communities located in and around forests. In that way, we can prevent additional habitat loss and make a positive impact on forests.

Aiming for deforestation-free by 2025

As part of our commitment to achieving deforestation-free supply chains, we avoid sourcing raw materials from:

• Areas converted from High Carbon Stock forests
• Areas converted from natural ecosystems such as wetlands or savannas
• Conversion of peatlands of any depth, except where farming practices protect peat
• International Union for Conservation of Nature protected areas categories I-IV
• UNESCO World Heritage Sites and wetlands on the Ramsar List

By the end of 2023, 93.4% of our primary supply chains for coffee, cocoa, meat, palm oil, pulp and paper, soy and sugar were assessed as deforestation-free, according to Nestlé’s standards. The decrease from 99.1% in 2022 is due to the new inclusion of coffee and cocoa in this indicator, where we have been assessing deforestation risks for less time. We remain committed to working towards achieving and maintaining 100% assessed deforestation-free in our primary supply chains for meat, palm oil, pulp and paper, soy and sugar, and for cocoa and coffee by 2025.

Working to assess risks and tackle their root causes

We take a risk-based approach to implementing the actions on which our commitment is based. 

We start by mapping our supply chains to identify the origins of our raw materials. We then take steps to assess that our sourcing is preventing the risk of deforestation. Raw materials are confirmed as deforestation-free when either they can be traced to low-risk origins or have been assessed as deforestation-free either from the sky or from the ground.

Today, we can trace the majority of our supplies to origin and thanks to better data and monitoring, we are equipped to respond more effectively to deforestation alerts in our supply chains. 

We are using the following tools to continue our work towards 100% deforestation-free supply chains:

Our progress toward deforestation-free primary supply chains

We assess the deforestation-free status of key ingredients in the following ways:

Traceable to low-risk origin = Volumes are traced back to regions classified as at low risk of deforestation, using tools such as Maplecroft. The traceability exercise is carried out in collaboration with our partners (e.g., Earthworm Foundation and Proforest) or using technology.

Assessed on the ground = Volumes are assessed through on-the-ground assessments, including by High Carbon Stock Approach and High Conservation Value assessments, by our partners (e.g., Earthworm Foundation, Proforest and SGS) and/or through certification such as Roundtable on Responsible Soy and Proterra (soy), Forestry and Stewardship Council and PEFC (paper) and Roundtable on Sustainable Palm Oil. Only segregated volumes are accepted as deforestation-free.

Assessed from the sky = Volumes are assessed through satellite monitoring of production sites (farms, mills or supply areas) in our supply chain identified through a traceability exercise.

Unknown = Not traced or being traced, but not yet deforestation-free.