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 are often converted into farmland, even though trees and forests play a critical role in protecting biodiversity and limiting 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 sustainable sourcing practices and promote the benefits to farming communities located in and around forests. In that way, we can aim to prevent additional habitat loss and make a positive impact on our shared futures.
Over a decade of progress tackling deforestation
2010
99.1
%
Aiming for deforestation-free by 2025
In 2022, we reached the significant milestone of achieving over 99% assessed deforestation-free status on average across all in-scope materials and for each of our meat, pulp and paper, soy and sugar primary supply chains.
Our palm oil supply chain presents the greatest opportunity to improve, with 95.6% assessed as deforestation-free. From experience, we know that the last percentage points are the hardest to reach due to the volume sourced from thousands of smallholders who require customized technical assistance at a local level.
We are also aiming to achieve deforestation-free status for our coffee and cocoa supply chains by 2025.
≥
50
%
30
%
37
million
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:
1. Supply chain mapping
2. Desktop-based risk assessment
3. On-the-ground assessment
4. Satellite monitoring
2. Desktop-based risk assessment
3. On-the-ground assessment
4. Satellite monitoring
1. Supplier engagement
2. Landscape projects
3. Smallholder farmer initiatives
4. Industry collaboration
2. Landscape projects
3. Smallholder farmer initiatives
4. Industry collaboration
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 (such as SupplyShift).
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 (soya), 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.
Deforestation-free status
1%
Unknown
21.5%
Assessed from the sky
15.1%
Assessed on the ground
63.4%
Traceable to non-very-high-risk origins
99.1%
assessed deforestation-free across our primary supply chains*
4.1 million tonnes
(2022)
* For meat, palm oil, pulp and paper, soy and sugar
Palm oil deforestation-free status
4%
Unknown
89%
Assessed from the sky
6%
Assessed on the ground
1%
Traceable to non-very-high-risk origins
95.6%
of palm oil assessed as deforestation-free
445 kilotonnes
(2022)
Pulp and paper deforestation-free status
0.1%
Unknown
0.3%
Assessed on the ground
99.6%
Traceable to non-very-high-risk origins
99.9%
of pulp and paper assessed as deforestation-free
1165 kilotonnes
(2022)
Meat deforestation-free status
0.1%
Unknown
99.9%
Traceable to non-very-high-risk origins
99.9%
of meat assessed as deforestation-free
157 kilotonnes
(2022)
Soy deforestation-free status
1%
Unknown
12%
Assessed on the ground
87%
Traceable to non-very-high-risk origins
99.3%
of soy assessed as deforestation-free
509 kilotonnes
(2022)
Sugar deforestation-free status
1%
Unknown
26%
Assessed from the sky
29%
Assessed on the ground
44%
Traceable to non-very-high-risk origins
99.3%
of sugar assessed as deforestation-free
1804 kilotonnes
(2022)
Nestlé was one of the first companies to make a commitment to deforestation-free supply chains. At the time we knew it would be challenging, but we felt it was a moral imperative - for our environment, for the people, and for our planet at large.
