Accelerate,Transform,Regenerate:Nestlé’sNetRoadmapMarch20231Nestlé’sNetZeroRoadmapcontents3Wecommittonetzeroby205029Usingrenewableenergytomanufacture4Nestlé’sNetZeroRoadmapourproducts5Measuringourcarbonfootprint6OurtotalemissionsbyScope33Drivingtowardcleanerlogistics7Emissionscoveredbyourpledge38Removingcarbonfromtheatmosphere8Ourkeyactionsataglance41Usingthepowerofourbrands9Ourjourneyto2030–keyfigures10Sourcingouringredientssustainablyandproducts42Usingourvoicetogalvanizeaction–Dairyandlivestock46Glossary15Sourcingouringredientssustainably–Soilandforests20Transformingourproductportfolio24Evolvingourpackaging2Nestlé’sNetZeroRoadmapWECOMMITClimatechangeisoneofsociety’sgreatestPeoplewillbeattheheartofourclimateactions.TONetchallenges.ItisalsooneofthegreatestrisksWestrivetoensurethatourinitiativespromoteBY2050tothefutureofourbusiness.ajusttransitiontowardaregenerativefoodsystemforall.3Nestlé’sNetZeroRoadmapSolvingitrequiresallofustoactwithgreaturgency.Astheworld’sbiggestfoodandbeverageTheworkbehindallofthisisdetailed,rigorouscompany,wehavethesize,scaleandreachtoandintense.Itrequiresustoexaminenotonlyinfluenceothersandtoinspirecollectiveaction.ouroperationsbutalsoeachofourproductstoseehowwecanmakethembetterfortheplanet.Nowwearegoingbeyondourcommitments:AndasmostofouremissionsoccuroutsidewearespecifyingourplantohalveNestlé’sofourownfourwalls,wemustgoonthegroundgreenhousegas(GHG)emissionsby2030tocollaboratewithoursuppliersandhelpthemandtoachievenetzeroby2050–evenasimprovetheirproductionprocesses.ourbusinesscontinuestogrow.WearemakingourfootprinttransparentandwillmakeourAttheotherendofthevaluechain,welookprogressclear.forwardtoworkingwithourcustomerstoshapetheirofferingandwithourconsumerstoencouragemoresustainablepurchasingandconsumption.Weneedactionfromgovernmentsandregulatorstocreateclearandfairrulesforcompaniestomakeprogress.ButNestlémustfirstleadbyexample.Itisonlybytakingtangibleactionsthatwecanconvinceotherstodothesame.Anditisonlytogetherthatwecanmakeapositivedifference.Nestlé’sNetRoadmapOurpathtoMovingfasterScalingupDeliveringourpromiseregenerationforfutureWe’reexcitedtohitthesoilrunning.We’reacceleratingourworkinmanufacturing,Furtherdownthegreenerpath,wewillAdvancedagriculturaltechniqueswilldelivergenerationspackagingandcarbon-neutralbrands.We’realsoinvestingCHF1.2billiontohelpinvestinnewtechnologiesandfundamentalaregenerativefoodsystematscale,supportedbysparkregenerativeagricultureacrossoursupplychain,aspartofatotalinvestmentchangestoourproductsandbusinesseszeroemissionlogisticsandcompanyoperations.SolvingtheproblemmeansofCHF3.2billionby2025.aroundtheglobe.Wewillbalanceanyremainingemissionsthroughidentifyingtheproblem.Wefoundhigh-qualitynaturalclimatesolutionsthatbenefitNestléemitted92milliontonnesofpeopleandtheplanet.greenhousegasemissionsin2018.Nowweknowtheextent,weknowOurmilestonesSwitchour100%certified100%sourcedUsemoreSource50%oftheroadahead.globalcarsustainablerenewablerenewablekeyingredients100%fleettolowerpalmoilbyendelectricityinthermalthroughTotalGHGemissionswere113milliondeforestationemissionoptionsof2023alloursitesenergyinourregenerativetonnes(CO2equivalent)in2018,freeforprimaryby2022by2025manufacturingagricultural92ofwhichareinscopeofourUNsupplychainsSourcemethods1.5°Cpledge.by2022100%certified20%ofkeyCutvirginPlant200by2030sustainableingredientsplasticinourmilliontreesCompaniesandtheiremissions100%ofourcocoaandthroughpackagingbyby2030growovertime.That’swhywe’repackagingcoffeeby2025regenerativeathirdby2025promisingtobenetzerobasedonrecyclableoragriculturalour2018baseline,nomatterhowreusablebymethodsmuchourcompanygrows.2025by2025Pathtozeroemissionsby2050Plant20milliontreesayearBusinessasusualnzeertoBy2050,wewillreachEmissionsbyoperationBy2025,weBy2030,we(milliontonnesofCO2e,2018)willreduceourwillreduceouremissionsby20%emissionsby50%65.6Sourcingouringredients7.0ManufacturingourproductsScope:Directsuppliesofpalmoil,pulpandpaper,soya,meatandsugar.11.0Packagingourproducts7.5Managinglogistics0.8Travelandemployeecommuting4Nestlé’sNetZeroRoadmap20212025203020502018measuringourcarbonfootprintWetakeawholelifecycleapproachtodeterminingfarmers,logisticsprovidersandconsumers.thecarbonfootprintofourproducts.ItisaprocessToachievenetzeroGHGemissionsby2050,thatinvolvesworkingwithmanyothers,suchasweneedtoactthroughoutourvaluechain.ProductemissionsfromfarmtoforkNestléoperationsDOWNSTREAMUPSTREAMCustomers,consumersandendoflifeSupplierstoNestléAgricultureRawmaterialManufacturingPackagingLogisticsRetailConsumersEndoflifesuppliersandbusinessSourcinghigh-qualityMakingproducts.PackagingourStoringanddeliveringOurconsumersForproductsingredientsSourcingmaterialsmanufacturedourproductsaroundchannelsenjoyingNestlé’sandpackaging.andingredientsandproductswhereverfromsuppliers,transportingthemproducts.theworld.Offeringandsellingco-operativesandproductstoshopperstheyare.directfromfarmers.toNestlé.instores.5Nestlé’sNetZeroRoadmapOURTOTALEMISSIONSNestlé’stotalGHGemissionsbyScopeBYSCOPEmilliontonnesofCO2e,in2018Emissionsfromourdirectoperations,knownScope1asScope1andScope2,accountedforjust5%ofourGHGemissions.ThevastmajorityofEmitteddirectly3.33.0%3.3ourGHGemissions(95%)comefromactivities2.5inoursupplychain.Asaresult,thatiswherefromsourcesweownorcontrolsuchason-sitewefocusmostofourefforts.combustion(coal,naturalgas,fuelforcompany’sTotalvehiclefleet).113milliontonnesScope2ofCO2eEmittedindirectly2.52.2%107.3fromthegenerationofpurchasedenergylikeelectricityandheating/coolingnetwork.Scope3Allotherindirectemissions107.394.8%inourvaluechain,bothupstreamanddownstream,suchassourcinganduseofsoldproducts.Figureshavebeenrounded.6Nestlé’sNetZeroRoadmapEmissionscoveredNestlé’sin-scopeGHGemissionsbyoperation(92outof113)byourpledgemilliontonnesofCO2e,in2018ProgresstowardnetzerowillbemeasuredScope365.671.4%65.6againstour2018GHGemissions.We7.07.7%calculatedthisbaselineanddefinedourSourcing11.011.9%Dairyandlivestock34.2footprintinpartnershipwithSouthPole,ouringredients7.58.2%Soilandforests25.0anexternalconsultant.0.80.8%Other6.4Scope1,2&3Insettingourtargets,wehavefollowedTotal7.0theScienceBasedTargetsinitiative’s(SBTi)Manufacturing11.0criteria.Theyprovideaclearlydefinedpathwayourproducts92milliontonnesforcouplingfuture-proofgrowthwithreductionsinGHGemissions.AsourScope3emissionsScope3ofCO2emakeup95%ofourfootprint,weareaddressingmorethan80%ofthese.TheSBTiapprovedPackaging7.5ourtargetsinNovember2020.ourproductsThisdataisourstartingpoint.AsweenhanceScope3ourabilitytoidentifyandmeasureemissions,andbetterusethedatathathasbeendisclosedManagingbyoursuppliersandothers,ourmonitoringlogisticswillimprove.Weintendtoalsoshareourscience-basedmethodologyforcalculatingScope3GHGemissionstohelppushnewfrontiersinclimatedatatransparencyforthefoodandTravelandemployeebeverageindustry.commuting7Nestlé’sNetZeroRoadmapFigureshavebeenrounded.0.8What’snotincludedScope3Scope3Asacompanyatthestartofitsnetzerojourney,followingSBTiguidelinesfornowweConsumerusePurchasedservices,haveexcludedthefollowingemissionsfromourofsoldproductsleasedassets,capitalnetzerocommitment:12.7milliontonnesgoods,investmentsofCO2e8.6milliontonnesofCO2eWesupportambitiousactionacrosseconomiestotackleclimatechangeandwillcontinueworkingwithothersonwaystoaddressemissionsnotcoveredbyournetzerocommitment.OURKEYACTIONSATAGLANCESourcingourEvolvingDrivingtowardUsingthepowerofouringredientssustainablyourpackagingcleanerlogisticsbrandsandproductsWorkingwithfarmers,suppliersPackaginghelpskeepourfoodsafeOptimizingroutes,fillingvehiclesAsconsumersdemandincreasinglyandcommunitiestosourcewaysbutcauseswaste.Investmentsinmoreefficiently,switchingtotransparentandsustainablethatprotectecosystems,reducepackaginginnovationsandnewlow-emissionfuelsandrenewableproducts,ourbrandswillcontinueemissionsandenhancelivelihoods.businessmodelshelpkeepwasteelectricityandusingmoretoadapt,embracingsustainability.outoflandfill.railtransport.DairyandlivestockPage41Page10Page24Page33SoilandforestsPage15TransformingUsingrenewableenergyRemovingcarbonUsingourvoiceourproductportfoliotomanufactureourproductsfromtheatmospheretogalvanizeactionCreatingnew,low-carbonproducts,MakingproductsmoresustainablyUsingnature’sownsolutionssuchForgingdeepengagementandreformulatingexistingonesbyswitchingtorenewableasagroforestry,soilmanagement,onclimateissueswithfarmers,usingingredientsandprocesseselectricity,usingmorerenewableandrestoringpeatlandsandforestsindustry,governments,NGOsthataregoodforbothconsumersfuelsandinvestingtolockGHGsintheground.andcommunities.andplanet.inenergyefficiency.Page38Page43Page20Page298Nestlé’sNetZeroRoadmapOurjourneyto2030–keyfiguresInmilliontonnesofCO2eBaseline(2018)PlannedGHGEstimatedgrowthofEstimatedGHGinBy2030,wewillreduce(a)emissionsby2030GHG(2018–2030)2030accordingouremissionsby50%Sourcingouringredientstobusiness-as-Dairyandlivestock65.6(b)withoutreductionsusualscenarioOurnetzerocommitmentby2050includesSoilandforests34.2andScope3(d)=(a)+(c)SBTi-approvednear-termtargetsof50%Others25.044.3removalsreductionofourannualnetGHGemissionsbyManufacturingourproducts29.3(c)97.12030comparedtothe2018baseline.Packagingourproducts6.414.050.6Managinglogistics7.031.537.0Itmeansthatourkeyactions(seepage8)willTravelandemployeecommuting11.01.0helpdecreaseourannualnetemissionsfrom7.53.816.49.591.9to46.2milliontonnesofCO2ebetweenPortfoliotransformation0.810.19.72018and2030.Scope3removals6.512.016.2Total91.90.510.0Wecommittoachievethistargetby2030even3.10.8aswegrowourbusiness.2.7133.8Growingourbusinesswouldnormallybeafactorforadditionalemissions.Toreflectthis,wetake5.2intoaccounta‘business-as-usual’scenariobasedonatheoreticalaverageannualGHGemissions2.5growthrateof3.3%between2018and2030(basedonhistoricaltrends).Ithelpsprovide0.0perspectiveontheimportanceofourkeyclimateactions.-6.0-13.046.241.9Originalbaseline–UpdatedfiguresareavailableinthelatestNestléCSVandSustainabilityreport9Nestlé’sNetZeroRoadmapSourcingour34.2ingredientssustainablySourcingouringredientsDairyandlivestockOurdairyandlivestocksupplychainsaccountedDairyandlivestockingredientsareAswedoso,weaimtocontinueimprovingfor34.2milliontonnesofCO2ein2018–moreourlargestsinglesourceofemissions.livelihoods,investinginclimateandnaturewiththanhalfoftheemissionscreatedinsourcingChartingacoursetonetzeromeansuniversity-ledresearchthatwillhelpdevelopouringredients.drivingamajorshiftinthewayweclimate‑resilientandmoreequitablefarmingsourceandproducethesenutritiouscommunities.Continuouslyimprovinganimalingredients,investingininnovationswelfarewillremainaprimaryfocusthroughoutandnewbusinessmodels.ourwork.Someofthemostexcitingagriculturalinnovationsareindairyandlivestockfarming,makingthemavitalpartoftheoverallsolutiontoachievenetzeroagriculture.Bystrengtheningourprogramswithlivestockfarmerstorestoreland,forinstance,wecanscaleupinitiativestoabsorbmorecarbonfromtheatmosphere.10Nestlé’sNetZeroRoadmapSourcingouringredientssustainablyDairyandlivestockOurkeyactionsFeedinglivestockwithmoresustainablefeedWeneedtoworkwithourfarmerstoensureTofindthemosteffectivewaysofreducingthefeedusedcomesfromregenerativeemissions,inpartnershipwiththeSustainabilityagriculturalpractices.ThiswillhelpavoidinBusinessLabatETHZurich,wedevelopeddeforestationandreducethecarbonimpactasimulationtooltoevaluateactionsandoffeedinglivestock.costsfordairy,whichrepresentsmostofourlivestockemissions.MakingfarmsmoreproductivethroughbetterherdmanagementCuttingthemethaneproducedbyanimalsSupportingagripreneurshipwillhelpincreaseMethaneproducedduringdigestion,knowntheproductivityandlivelihoodsoffarmers,asentericfermentation,isthemostchallengingbydevelopingsustainablebusinessmodelssourceofemissionstomitigateincattle.Weandhelpingthemadoptsuccessfulbusinesswillsupportinnovationinrumenmodificationpractices.Theuseoftraining,investments,thatreducesemissions,mainlythroughbettertechnologiesandprofessionalherdtheinclusionoffeedadditivesanddietarymanagementallplayasignificantroleinsupplements,withthehelpofdedicateddrivingcontinuousimprovement.researchanddevelopment(R&D)supportfortheAgricultureteam.11Nestlé’sNetZeroRoadmapSourcingouringredientssustainablyDairyandlivestockOurkeyactions(continued)Measuresinclude:Grasslandmanagementand•Improvingmanuremanagement,increasingcarbonstorageinthesoilincludingtheuseofbiogasdigesters.Soilisanexcellentcarbonsink.Byintroducingregenerativeagriculturalpracticessuchas•CreatinganR&Dacceleratortodrivebetterpaddockmanagementandsilvopasture–innovationindairy.thepracticeofintegratingtreesintoareaswherelivestockforage–andswitchingto•InChina,expandingourDairyFarmingInstituteorganicfertilizers,wecanimprovetheandlaunchingaGrainCompetenceCenterabilityoffarmlandtostorecarbon.tocoordinateresearchandencourageknowledgesharing.HelpingsuppliersbecomemoreinnovativeOursupportforR&Dintonewtechnologies•Pilotingnetzerofarms,includingpartneringwillhelpincreasetheefficiencyofdairyfarms,withtheUSdairyindustryandacademiatomaximizingoutputwhileusingminimumenergyimplementnewtechnologiesandeconomicallyandimprovinganimalwelfare.viablepractices.Workingwithoursuppliers,wewillfocusoncollectingandvalidatingemissionsdata,helpingimproveaccuracyandenablingustoworkmoreeffectivelytogetherindifferentcountries.12Nestlé’sNetZeroRoadmapSourcingouringredientssustainablyDairyandlivestockDairyandlivestocksupplychainemissionsActionstoreachour2030emissionsgoal1andreductions,2018to2030-8.4Makingfarms-2.7FeedinglivestockwithmilliontonnesofCO2emoreproductivemoresustainablefeed-3.2throughtrainingandBy2030,-3.2betterherdmanagementreduceemissionstoCaringforgrasslandProjected2030tostoremorecarbon-2.3Otherlivestockbusiness-as-usualbyusingregenerativeactionsagricultureandemissions29.3milliontonnesorganicfertilizers-1.0Helpingsuppliersbecomemore50.6milliontonnesofCO2eCuttingthemethaneenergyefficientproducedbyanimalsofCO2eduringdigestionthroughnutritionchangesMakingthemost2018emissionsbaseline-0.5ofmanureandusingplusourforecastcompanybiogasdigestersgrowth(16.4milliontonnes1TheseactionshavebeendefinedbasedonresearchanddataasatDecember2020.ofCO2e)to2030Thecontributionstoemissionsreductionsmaybesubjecttochangeovertime.13Nestlé’sNetZeroRoadmapSourcingouringredientssustainablyDairyandlivestockOurprojectedreductionsby2030Lookingto2050OuractionswillreducetheemissionsfromWewillcontinuetosupportfamily-operatedsourcingourdairyandlivestockingredientsbyfarmingsystemsthroughregenerative21milliontonnesby2030.Thisrepresents23%agriculturalpracticesthathelpreducetheofourin-scope2018carbonfootprint.carbonfootprintofdairyfarming.ActivitieswillalsoincludeinvestinginpartnershipsForfreshmilk,reductionsinemissionintensitytodeveloptechnologiestohelptakefarmingwilllargelybemadethroughimprovementstothenextlevelofsustainability.inproductivityinlessadvancedeconomies.Formilkderivatives,someofoursuppliersarealreadydevelopingingredientswithalowercarbonfootprintandwewillcontinueworkingcloselywiththeminthiscomplexarea.14Nestlé’sNetZeroRoadmapSourcingouringredientssustainably25.0SoilandforestsGoodfooddependsondiverseandAkeystepinthisjourneywillbetoworkSourcingouringredientsqualityingredients,soprotectingthewithoursuppliersandfarmerstoimproveecosystemswheretheygrowisvitaltransparencyaroundwhereouringredientscome25milliontonnesofCO2eemissionsin2018toourlong-termsuccess.fromandhowtheyareproduced,aspartofanweregeneratedthroughthesourcingofouroverallcommitmenttodriveupstandards.Thisagriculturalingredients.Asignificantquantityoftheingredientswewillincludeworkingwithotherstostrengthenpurchasecomefromnaturalecosystems,whichlandrightsforlocalcommunitiesandtheconceptareunderpressurefromagriculture:27%ofourofFree,PriorandInformedConsent(FPIC).in-scope2018footprintcanbelinkedbacktotheseagriculturalingredients.Peopleremainattheheartofourclimateactions,whatevertheinitiativeorscheme.WearegoingtoaccelerateoureffortstoprotectWeaimtodeliverneweconomicopportunitiesandrestoretheseareas,workingwithfarmersforyoungpeopleandwomeninruralcommunities,andsupplierstoenhancebiodiversityandlimitandprotectfoodandnutritionsecurity.WewillGHGemissions.Thisincludesavoiding/eliminatingsupportyoungagripreneurstoimplementdeforestationandnaturalhabitatconservationregenerativeagriculturalpractices.aswellasplantinghundredsofmillionsoftreestounlockthepowerofagroforestryandreforestationinareasconnectedtooursourcingactivities.15Nestlé’sNetZeroRoadmapSourcingouringredientssustainablySoilandforestsOurkeyactionsAgroforestryandshademanagementSomecrops,suchascocoaandcoffee,growWiththesupportofSouthPole,wehavebetterintheshade.WeareencouragingfarmersdevelopedamodeltocalculatetheGHGtoplantmoreshadetreestoprotectthesecropsmitigationpotentialofagriculturallandthatfromheatstressandotherthreatssuchasassessesvariousactionsandtheircosts.excessiverainfall.Shadetreesalsoimprovewatermanagementandbiodiversity,andabsorbcarbonDeliveringagainstourzerodeforestationfromtheatmospheretodrivedownemissions.commitmentandremovingcarbonthroughagroforestryandregenerativeagricultureareWealsosupportalleycropping,orplantingkeytoreachingnetzero.Aspartofastrategybetweenhedgerows,whichcanbringsimilarofmoreambitiousengagementwithourbenefitswhengrowingcropssuchascereals,suppliers,wearenowbroadeningthesefruitsandvegetables.programstoaccelerateprogress.16Nestlé’sNetZeroRoadmapSourcingouringredientssustainablySoilandforestsOurkeyactions(continued)PreventingandremediatinglandusechangeThisisthestartofabroaderandmuchlargerTheconversionofnaturallandscapesforglobalconservationandrestorationstrategyImprovingsoilhealthingredientsinoursupplychainisestimatedtoremovemorecarbonanddeliverimportantImprovingsoilhealthmakeslandmoretoaccountforbetween25and35%ofourtotalecosystemservicesinthelandscapeswesourceproductive.Wewillhelpimproveagriculturalingredientemissions.Forkeycropsupplychains,from.Ourambitionistomakeconservationpracticessuchasnotillage,covercropping,suchascocoa,coffee,palmoilandsoybean,andrestorationstandardpracticethroughoutmultiplecroprotationandswitchingtoorganictheproportioncanbeevenhigher.oursupplychains.fertilizersformostofoursoil-growningredients.Thesepracticeswillsupportnutrientuptake,Ourzerodeforestationcommitmentformswaterretentionandfertility,andrestoretheacriticalelementofourjourneytonetzero.soil’scarboncontent.Alongsidenewpartnershipsandinitiatives,farm‑levelassessments,sustainabilityCompostingofagriculturalwaste,suchascertificationsandsatellitemonitoringsystemsemptyfruitbunchesfrompalmoilplantations,willcontinuouslyscrutinizeandpreventforestisanotherinexpensivewayofenrichingthesoil.coverandlandusechange.AgroforestryinborderareasWhereforestdegradationhashappened,Fieldmarginsandfarmbordersofferimportantwehaveambitiousreforestationplansandareopportunitiestosupportourclimategoals.settoplantatleast3milliontreesinkeysourcingForestandpeatlandscanberestored,orlocationsby2021,andafurther3millionby2023.specificprojectssuchaswindbreaksintroduced,WehavealsoinvestedCHF2.5millioninhelpingtoenhanceecosystemresilience.criticalforestconservationandrestorationinCôted’Ivoire.17Nestlé’sNetZeroRoadmapSourcingouringredientssustainablySoilandforestsSoilandforestssupplychainemissionsActionstoreachour2030emissionsgoal2andreductions,2018to2030-8.0Preventing-2.0Agroforestryoff-farmmilliontonnesofCO2edeforestationinoursupplychainBy2030,reduceemissionstoProjected203014milliontonnes-5.0On-farmagroforestry–-2.0Restoringdegradedbusiness-as-usual-5.0plantingtreesand-1.0forestsandpeatlandsofCO2eotherplantsaroundemissionsandamongcropsInstallingpalmoilmilleffluentmethane37milliontonnesImprovedagriculturalcapturesystemspracticeslikecoverofCO2ecropping,usingorganicfertilizersandmultiple2018emissionsbaselinecroprotationplusourforecastcompanygrowth(12milliontonnes2TheseactionshavebeendefinedbasedonresearchanddataasatDecember2020.Thecontributionstoemissionsreductionsmaybesubjecttochangeovertime.ofCO2e)to203018Nestlé’sNetZeroRoadmapSourcingouringredientssustainablySoilandforestsOurprojectedreductionsby2030Lookingto2050By2030,weforecasta44%reductioninWewantourworktosupportresilientlandscapesGHGemissionsfrominvestinginsoilhealthandcommunities.Inthecomingyears,weaimandforestscomparedtoour2018in-scopetotransformourrelationshipwithsuppliersandbaseline.Upto80%ofthetargetcanbemovetoacollectivelevelofengagement,addressedthroughcarbonScope3removalsinvestingincollaborativeactionsthatimpactdeliveredbyagroforestry,improvedagriculturalwiderregions.practicesandtacklingdeforestation.WemustworktoensurenofurtherlossofForestconservationandtherestorationofnaturalhigh‑carbonstockorhigh-conservationvaluelandscapesaresomeofthemostcost-effectiveland,andimplementpoliciesandinitiativesthatandimpactfulwayswecanmitigateGHGrestoretheseecosystems.Thisispartofouremissions.Othermeasures,suchaschangingambitiontodeliversustainablelandscapeswhereagriculturalpractices,maybemoreexpensiveproduction,sustainablelivelihoodsandprotectionintheshorttermbutarebettersuitedtolocalgotogether.conditions.Animportantpartofwhatweneedtodonextistohelpfindtherightactionsfordifferentlocalcontexts.19Nestlé’sNetZeroRoadmapTransformingourOurcorestrategyisinlinewiththisshiftandproductportfoliothatmeansengagingtheonebillionconsumersadaywhobuyourproductsbyofferingUsingourR&Dexperienceandmorefoodsandbeveragesthataregoodforresources,weareacceleratingthemandgoodfortheplanet.innovationandmakingourportfoliofitforthefuture.Trendsshowgrowingconsumerdemandforlow-carbonproductssuchasplant-basedfoodsanddrinks.20Nestlé’sNetZeroRoadmapTransformingourproductportfolioOurkeyactionsWewillimprovehowwemeasureandmanageemissionsWewilllowertheenvironmentalWewillestablishclearkeyperformanceimpactofourrecipesindicators(KPIs)andrefineourcentraldataOurprocessofconstantimprovementistrackingsystemstobettermeasureprogressourcompetitiveadvantage,reducingourandimprovetheallocationofemissionsandenvironmentalfootprintwhilecontinuingreductionstospecificbusinesses.tocontributetohealthyandnutritiousdiets.Morebroadly,weexpecttoalignGHGItiscrucialthatweeducateouremployeesaccountingmethodologiesacrossourbrandsaboutclimatechangeandprovidethemwiththesothatitiseasiertomakecomparisonsandknowledge,skillsandtoolstheyneedtomakeconsultwithbrandmanagersaroundtranslatinginformeddecisionsaroundproductdevelopment.corporatetargetsintobusiness-specificones.WewillhelpourportfolioandproductmanagersincorporateGHGemissionsinformationmoreeffectivelyintotheirdecision-making,includingselectingwhichingredientstouseandcontinuouslyimprovingourecodesigntoolsusedinR&D.Tosupportthis,wewillmakemoreenvironmentalimpactdataaboutingredientsupplychainsavailableattheproductlevel.21Nestlé’sNetZeroRoadmapTransformingourproductportfolioReducingfutureemissionsActionstoreachour2030emissionsgoalgrowth:our2030goals3-4.2Evolvingproduct-0.2ImplementingmoremilliontonnesofCO2eofferingtowardmoresustainable,circular-1.4sustainableoptionsbusinessmodelsBy2030,reduceemissionsbyShiftingtowardmore-0.2Improvingthesustainablealternativeefficiencyofour-6milliontonnesingredientslikemachinesplant‑basedfoodsofCO2e3TheseactionshavebeendefinedbasedonresearchanddataasatDecember2020.Thecontributionstoemissionsreductionsmaybesubjecttochangeovertime.22Nestlé’sNetZeroRoadmapTransformingourproductportfolioOurprojectedreductionsby2030Lookingto2050•Theforecastedgrowthof41.9milliontonnesofDietaryshifts–particularlytowardplant-basedCO2ereferstothetotalforecastcompanydiets–arethemostimportantthingthatwe,growthby2030.asaglobalcommunity,candotokeepourfoodsystemwithinenvironmentallimits.•Asproductportfolioactionsencompassthefullscopeofaproductlifecycle,includingsourcing,Wewillstrivetocontinuouslyreducethepackaging,manufacturingandlogistics,environmentalimpactofouringredientsandwehavechosentoshowcasetheminrecipesandinvestigatewaystotransparentlyaseparatewaytoavoiddoublecounting.communicatetheseimpacts.Byengagingwithconsumers,wecanincreasedemandforthese•Theleversalreadyidentifiedbyourbusinessesproducts,whichinturnwillhelpustowardourwillmitigate14%oftheGHGemissionsnetzeropledge.associatedwithourforecasted41.9milliontonnesofCO2eby2030.Theyinclude:•Evolvingourproductofferingtoincludemoresustainableoptions.•Switchingtoplant-basedingredients–specificallyinourfrozenmealsandpizzasanddairycategories.•Implementingmoresustainable,circularbusinessmodels.•Improvingtheenergyefficiencyofequipmentsuchasmachines.23Nestlé’sNetZeroRoadmapEVOLVINGOURPackaging11.0PackaginghelpstokeepourfoodsafeKeytooureffortsisourInstituteofPackagingPackagingourproductsandfreshandisessentialfortheSciencesinLausanne,Switzerland.TheInstitutedistributionandstorageofourproducts.isthefirstofitskindinthefoodindustryandWeemitted11milliontonnesofCO2eisworkingonresearchtoaccelerateeffortstoin2018throughourproductpackagingAlthoughitreducesfoodwasteandassociatedbringsafepackagingsolutionstothemarketreadyforsale.emissions,packagingitselfcanbeasignificantthathavealowenvironmentalfootprint.sourceofGHGemissions.Itaccountsforaround12%ofourin-scope2018carbonfootprint.ThisworkrequirescollaborationandinnovationTheissueofplasticwasteendingupintheonaglobalscale.Byworkingwithpartnersfromenvironmentisalsooneofthemostpressingmaterialsscientistsandpackagingspecialiststoglobalchallengestheworldfaces.communitygroups,NGOs,governments,suppliersandothercompanies,wewanttocreatelastingBuildingonadecadeofaction,wehavecommittedandimpactfulchange.tomake100%ofourpackagingrecyclableorreusableby2025andtoreduceouruseofvirginplasticsbyone-thirdinthesameperiod.Sofar,87%ofourtotalpackagingand66%ofourplasticpackagingisrecyclableorreusable.Tacklingthischallengerequiresawiderangeofactionsandweknowweneedtogofurther.24Nestlé’sNetZeroRoadmapevolvingourPackagingOurkeyactions•Increasingtheamountoflow-carbonenergyusedfortheproductionandTransforminghowwemake,use,reuseandrecyclerecyclingofpackaging.ourpackagingcanplayanimportantroleinourjourneytonetzero.For2030,thatmeans:•Collectingandco-processingpost-consumerwaste(intheabsenceofawell-functioning•Improvingpackagingdesign,includingwastemanagementsystem)topreventtheswitchingfromcompositestosinglematerials,furtherflowofplasticintotheenvironmentandintroducingreusableandrefillableoptions.andtoprovideavaluableresourceforenergyandothernewproducts.•Leadingtheshiftfromvirginplasticstofood‑graderecycledplasticsbydevelopingamarketforthesematerials.•Helpingtoincreaseend-of-liferecyclingratestotacklepackagingwasteandreducetheamountofrawmaterialsweuse.25Nestlé’sNetZeroRoadmapevolvingourPackagingOurkeyactions(continued)ScalingupreusableandrefillableWhileweimplementtheseactivities,wewilloptionsforconsumerscontinuetosupporttherespectandpromotionExpandingthemarketforfood-gradeWecontinuetoofferconsumersashoppingofhumanrightsinthedownstreamrecyclingwasterecycledplasticsexperiencefreeofsingle-usepackagingthroughsupplychainofPost-ConsumerResin(PCR)Atthetimeofwriting,morethan3%ofthecollaborationwithcompanieslikeLoop,MIWAmaterialthroughaccountabilityandengagementpackagingweusecontainsrecycledplastics–andAlgramo.ofthemostrelevantactors–thekeywastethiswillincreasesignificantly.Wehavemadestreamsuppliers.asignificantcommitmenttoleadtheshiftfromImprovingwastemanagementinfrastructurevirginplasticstofood-graderecycledplasticsWesupportthedesignandimplementationandtoacceleratethedevelopmentofinnovativeofeffective,mandatoryExtendedProducersustainablepackagingsolutionsundertheResponsibilityschemes.Wearealsoworkingprinciplesofthecirculareconomy.Lessusetoimproverecyclingratesandinfrastructureofvirginplasticsmeanslessuseoffossil-basedin20countries,whichaccountformorethanderivativesandassociatedemissions.50%ofourplasticusage.In12countries,weaimtocollectandrecycleorrecoverasmuchplasticasweuse,addressingover10%ofourtotalplasticusage.26Nestlé’sNetZeroRoadmapevolvingourPackagingPackagingandproductssupplychainemissionsActionstoreachour2030emissionsgoal4andreductions,2018to2030-1.8RecyclingmoreSwitchingfrommilliontonnesofCO2epackagingatendoflifecomposite/mixedmaterialstomono-materialsBy2030,reduceemissionsto-0.5Projected203010.1milliontonnes-1.7SwitchingtoIncreasingtherecycledbusiness-as-usuallow-carbonenergycontentofotherplasticsofCO2eforplasticproduction-0.4emissions-0.4Otheractions,including-0.7Reducingpackagingmovingfromplastic16.2milliontonnesandscalingupreusetopaperpackagingandrefillofCO2e-0.6IncreasingPETplasticrecycledcontent2018emissionsbaseline4TheseactionshavebeendefinedbasedonresearchanddataasatDecember2020.plusourforecastcompanyThecontributionstoemissionsreductionsmaybesubjecttochangeovertime.growth(5.2milliontonnesofCO2e)to203027Nestlé’sNetZeroRoadmapevolvingourPackagingOurprojectedreductionsby2030Lookingto2050WeexpectthatsignificantreductionsinemissionFrom2030,thereishugepotentialtoincreaseintensitywillbeachievedfrom2025onwardbyourambitionsaroundreusablepackagingandfurtherincreasingtherecycledcontentinourbio‑basedplastics.Thiswillbedrivenbynewpackaging,theuseoflow-carbonenergyinourtechnologiesthatenablefurtheremissionssupplychain,andthebroadeningofrecyclingandreductions,suchasnetzerosyntheticplasticsco-processinginfrastructureswhereweoperate.madefromCO2convertedtohydrocarbons,usingrenewableelectricity.28Nestlé’sNetZeroRoadmapUsingrenewableenergytomanufactureourproducts7.0Wearetheworld’slargestfoodandCuttingemissionsbeginswithenergyefficiencyManufacturingourproductsbeveragecompany.Thatmeansourandcontinueswiththemovetowardlessmanufacturinghasasignificantenergy‑intensiveprocesses.Atthesametime,Makingourproductsaccountedforfootprint,andaccountsforaroundwewillcontinuetorampupouruseofrenewable7milliontonnesofourCO2eemissionsin2018.7%ofourin-scope2018emissions.electricitytoreach100%by2025.In2018,34.5%ofourelectricitycamefromBuildingonourexistingtrackrecord,wearerenewablesources.makingfundamentalchangestoreducethisevenfurther.Asweincreasetheuseofelectricityfromrenewablesources,wealsoincreasemarketdemand,incentivizingproviderstoinvestinnewinfrastructuresuchaswindandsolarfarms.29Nestlé’sNetZeroRoadmapUsingrenewableenergytomanufactureourproductsOurkeyactionsWewillphaseoutrefrigerantswithahighglobalwarmingpotentialWewillpowerourmanufacturingrenewablyWewillcontinuetophaseoutrefrigerantsWewillincreasetheproportionofrenewablewithhighglobalwarmingpotential(GWP),electricitythatweusethroughpowerpurchasesuchashydrofluorocarbons,inourindustrialagreements,greentariffs,renewableenergyrefrigerationsystems.Wewillreplacethesecertificatesandon-siteproductiontoachievewithnew,naturalrefrigerantswithzeroorlow100%renewableelectricityby2025.GWP,suchasammonia,CO2andhydrocarbons.Alongsideestablishedformsofrenewableelectricity,suchaswindandsolar,wewillalsoworkwithsupplierstoincreasetheavailabilityofrenewablethermalenergygeneratedfromsources,suchasbiogasandbiomass,by2030.WewillimproveefficiencytoloweremissionsFurtheremissionsreductionswillbedeliveredbyincreasingtheefficiencyofouroperations.Manyenergyefficiencyprojectsarealreadyplannedforsitesacrosstheglobe,rangingfromLEDlightingsystemstooptimizingenergyconsumptionduringnon-productiontimesandrecoveringheatenergy.30Nestlé’sNetZeroRoadmapUsingrenewableenergytomanufactureourproductsManufacturingsupplychainemissionsActionstoreachour2030emissionsgoal5andreductions,2018to2030-2.7Increasingthe-0.7ImprovingenergymilliontonnesofCO2eshareofrenewableefficiencyatourplants-1.8electricityBy2030,reduceemissionstoProjected20303.8milliontonnes-0.7ReducingFERA(fuelbusiness-as-usualandenergyrelatedofCO2eIncreasingtheactivities)emissionsemissionsshareofrenewablethermalenergy9.7milliontonnes-0.04ReducingwasteofCO2e2018emissionsbaseline5TheseactionshavebeendefinedbasedonresearchanddataasatDecember2020.plusourforecastcompanyThecontributionstoemissionsreductionsmaybesubjecttochangeovertime.growth(2.7milliontonnesofCO2e)to203031Nestlé’sNetZeroRoadmapUsingrenewableenergytomanufactureourproductsOurprojectedreductionsby2030Lookingto2050WeareworkinghardtoimprovetheefficiencyBy2050,wewillreduceourdirectemissionsofouroperations,andtheprojectionsinourrelatedtoenergytozerobyusing100%roadmaparetheminimumweexpecttoachieve.renewableenergy.Weexpecttomaximizegainsinefficiencyfirst,supplyingourremainingenergyneedsthroughBasedontoday’stechnology,weexpectthatrenewablesources.asmallfraction(around1%)ofdirectemissionslinkedtorefrigerantswillremain.TheremayWewillreduceemissionsby20%by2025alsostillbesomeScope3emissionsrelatedand50%by2030,drivenbyenergyefficiencytofuelandwaste,whichweexpecttoaddressmeasuresandincreasingtheamountofthroughclosecollaborationwithoursuppliers.renewableelectricityweusetoachieve100%by2025.Theamountofrenewablethermalenergyweusewillincreaseby2030.32Nestlé’sNetZeroRoadmapDrivingtowardInourtop100distributioncenters,GHGs7.5cleanerlogisticsdecreasedbycloseto40%between2016and2020.ManaginglogisticsLimitingglobalwarmingto1.5°CwillrequiremajorchangestothewayweTechnologyplaysacrucialroleinhelpingusTransportinganddistributingouringredientsandmovegoodsaroundtheworld.meetourobjectives.Wearealreadyadigitallyproductsaccountedfor7.5milliontonnesofourenabled,data-poweredbusiness,andweCO2eemissionsin2018.Our2050ambitionwillberealizedthroughareexploringnewwaysinwhichwecanuseOurprimarysourcesoflogisticsemissionsacleaner,leanerlogisticsnetworkthatdeliversanalytics,automation,artificialintelligenceandin2018(milliontonnesCO2e):ingredientsfromthefarmtoourfactories,machinelearningtomakeouroperations•Inboundtransportation:3.2andourproductstodistributioncentersevenmoreefficient.•Outboundtransportation:3.6aroundtheworld.•Energy:0.4•Waste:0.02Wewillcontinuetoreduceemissionsacrosstransportationbymaximizingtheuseofspaceinourvehicles,reducingfuelconsumptionandswitchingtoloweremissionfuels.Inourdistributioncenters,wewillcutenergyuse,switchtorenewableelectricity,phaseinnaturalrefrigerantsandreplacefossilfuel-basedmachinehandlingequipment.Wearealsoreducingwastefordisposal,andwillcutwastecausedbyproductsthathavegonebadorreachedtheirendoflifeby5%yearonyear.33Nestlé’sNetZeroRoadmapDrivingtowardcleanerlogisticsOurkeyactionsMaintainingandimprovingoperationalefficiencyBymodelingemissionsreductionsacrossInvestmentsinITwillallowustofillvehicleseightgeographicalclusters,wehaveidentifiedandplanjourneysmoreefficiently.Thishelps11importantareaswherewecanmakeavoidemptymilesbyconnectinginboundandsignificantcutstoemissions.Theseincludeoutboundtransport,furtherreducingemissions.improvingexistingtransportmodesandshiftingtolesscarbon-intensiveones,implementingWeneedtousetransportmodesinasmartway,leanlogisticsanddevelopingroadmapstailoredsuchasshiftingtoloweremissionintermodaltospecificregionsandbusinesses.transportrouteslikerailandshipping.Thisalsomeansminimizingairfreightasmuchaspossible.Ourlean-logisticstransportationhub(T-Hub)programwillplayanimportantroleintheshortandmediumterm.Theprogramwillcreate19officesatregionalandlocallevels,andcentralizethemanagementandcoordinationoftransport,usingreal-timevisibilitytoolsandadvancedanalyticstoenabletheproactivemanagementofgoodsmovementsandvehicleoptimization.By2022,T-Hubswillberesponsiblefor80%ofourtotaltransportspend.34Nestlé’sNetZeroRoadmapDrivingtowardcleanerlogisticsOurkeyactions(continued)Wecanenablethistransformationthrough:Shiftingtothelowestemissionoptions•HelpingdeveloptherightregulatoryInourownoperations,wewillswitchourglobalenvironment,specificallypoliciesandfleetofvehiclestoloweremissionoptionspublicinvestmentsupportingintermodalby2022andoffsetanyremainingemissions.transportandrailcorridors.WewillinitiallyreduceemissionsbyshiftingtovehiclesadheringtotheEUROVandVI•Supportingtechnologicaldevelopment,emissionsstandards.commercializationandpublicinvestment,forelectric,hydrogenandbiogasinfrastructure,Inpartnershipwithourlogisticssuppliers,includingchargingstations.wewillshiftawayfromfossilfuel-poweredtransporttofuelswithlowerorzerotailpipe•Engaginglogisticsproviders(especiallytruckemissions.Theseincludehydrogen,electricityandoceanfreight,andtruckmanufacturers)toandbiofuelpoweredvehicles,wherethesefuelsacceleratetheprovisionoflow-carbonsolutions.havenotbeenproducedincompetitionwithfoodcrops.Becausenocompanycanachievethisalone,weareactivelyconnectingwithgreenlogisticsprograms,thelogisticsindustry,governmentorganizationsandNGOs,aswellasbenchmarkingandauditingorganizations.35Nestlé’sNetZeroRoadmapDrivingtowardcleanerlogisticsLogisticstransportationemissionsActionstoreachour2030emissionsgoal6andreductions,2018to2030IntroducingmilliontonnesofCO2eelectrictrucksforshort-haultripsBy2030,-1.4-0.1RemovalofEURO4reduceemissionstoIntroducingandbelowdieseltrucks-0.6electrictrucksProjected2030forlong-haultrips-0.07Launchingtrucksbusiness-as-usual-0.5poweredbybiogasIncreasedemissions6.5milliontonnesintermodaltransport-0.05Improvingthesustainabilityofoceanfreight10milliontonnesofCO2eSwitchingmorejourneysofCO2e-0.04torail-0.4Makingsurewefill-0.002Avoidingairfreight-0.3vehiclesefficiently2018emissionsbaselineplusourforecastcompanyIntroducinggrowth(2.5milliontonneshydrogen-poweredtruckstoourfleetofCO2e)to20306TheseactionshavebeendefinedbasedonresearchanddataasatDecember2020.36Nestlé’sNetZeroRoadmapThecontributionstoemissionsreductionsmaybesubjecttochangeovertime.DrivingtowardcleanerlogisticsTransportation:Transportation:Projectedreductionsby2030Lookingto2050WewillreduceabsoluteemissionsbyThenewinfrastructureandtechnologiesneeded3.5milliontonnesofCO2efrominboundandtotransformtransportandhelptheswitchtooutboundtransportation,ora4%reductionfromalternativeformsoffuelaredevelopingrapidly.ourin-scope2018baseline.By2050,hydrogenandlong-haulelectricpoweredvehicles,withtheirzerotailpipeemissions7,willUntil2025,theoperationalefficienciesofplayakeyroleinourtransportationmixacrossvehiclefill,reductionofemptybackhaul,alldistances.Biofuelswillalsoplayanimportantrouteoptimizationandswitchingtointermodalroleinthedecarbonizationofoceanfreight.transportwillmakethebiggestcontributiontoemissionsreduction.Electricvehiclesforshorthaulwillmakeasignificantcontributiontowardour2030emissionsreductionobjectives.7Realemissions(distinctfromtailpipeemissions)fromhydrogenandelectrictrucksdependontheirsource.Ifelectricityforatruckisgeneratedthroughcoal,emissionsarestillhigh.37Nestlé’sNetZeroRoadmapRemovingcarbonfromtheatmosphereThroughactivitieslinkedtoourScope3RemovingGHGsusingnaturalsolutionsinouremissions,weseeenormouspotentialforsupplychangedoesnotcompromiseGHGtheremovalofGHGfromtheatmosphere.reductioneffortsandwillplayanessentialroleinhelpingusreachournetzerogoal.ByinvestinginMorethantwo-thirdsofouremissionscomethesesolutionsnow,wecanhelpensuretheyarefromsourcingingredients,sothisiswhereweseereadytodeliveratscalebefore2050.thebiggestopportunities.By2030,weplantoremove13milliontonnesofCO2eemissionsfromtheatmospherebyprioritizingactionswecantakenow,whilewedevelopprojectsthatwillpayoffinthefuture.38Nestlé’sNetZeroRoadmapRemovingcarbonfromtheatmosphereHarnessingnature’sownsolutionsAswellason-farmactions,westrivetoworkinlocalpartnershipstopreventthelossNaturalclimatesolutions(NCS),suchasofhigh-carbonstockandhigh-conservationagroforestry,silvopastureandtherestorationvalueland,andinvestintherestorationofforestsandpeatland,areactionsthatphysicallyofdegradedforestsandpeatlandacrossremoveCO2fromtheatmosphere.Theyaretheoursourcingregions.Throughout,ouractionsmostimportantmethodswecurrentlyhavewillsupportrobustlivelihoodsintheareasforScope3removal.Theyallowustomaximizewherewesourceouringredients.carbonstorageanddeliverawiderangeofco-benefits.Thisincludessupportingatransitionawayfromintensivemonoculturefarmingtowardmorediverseagriculturethatbenefitsbiodiversityandsupportscommunityresiliencetoclimatechange.39Nestlé’sNetZeroRoadmapRemovingcarbonfromtheatmosphereHowwewillremove13milliontonnesofCO2efromtheatmosphereby2030PlantvegetationaroundwatersourcesSwitchtoorganicfertilizerswhereverpossibleShademanagementagroforestryandwildlifecorridorsOrganicfertilizersalsoimprovethestructureShadetreesprotectcropssuchascoffeefromRiparianbuffersareuncultivatedgreenareasofthesoilanditsabilitytoholdwaterandexcessiveheat.Theyalsoincreaseorganicmatterthatprotectwatersourcesfrompollutantsandnutrientswhileavoidingthedamaginginthesoil,increasingitscapacitytoretainwatererosiontypicallycausedbynearbylanduse.runoffcausedbysyntheticalternatives.andstorecarbon.TreesplantedforshadealsoTheyactasfiltrationsystemsbetweensequestercarbonthemselves.agriculturalandurbanlandandbodiesofAdoptmoresustainableagriculturepracticeswater,improvingwaterqualitywhilealsoFarmingtechniqueslikenotillage,croprotationRestoringforestsandpeatlandscapturingcarbon.andcovercropsreducesoildisruption.ThisHealthyecosystemsstoresignificantamountsofhelpstoavoidnitrogendepletion,reducecarbon.ForestrestorationcreatescarbonsinksIntegratetreesintograzinglandinsoilerosionandcontrolpestsandweeds.andprotectswaterways,wildlifeandbiodiversity.asynergisticwayPeatlandrestorationinareasthatwesourceTreesongrazinglandcansupportgrassyieldsorPlanttreesandshrubstoingredientsfrom,inadditiontocapturinglargeenhanceproduction,providingadditionalfodder.createnaturalprotectionamountsofcarbon,maintainswatertablesandNaturalbarrierscreatedthroughintercroppingreducesfirerisks.UselocalcompostandalleycroppingprotectcropsagainstsevereUsingcompostmadefromorganicwasteweatheranderosion.Thisimprovesyieldssuchascoffeepulpcanenrichthesoil,buildingandhelpscapturecarbon.uporganicmatterandimprovingbothsoilstructureanditspotentialtostorecarbon.40Nestlé’sNetZeroRoadmapUsingthepowerofourbrandsandproductsEngagingconsumersonournetzeroSomebrandteamsmayalsodecidetoinvestinOurbrandteamswillcontinuetodecideonthejourneyiscrucialtoitssuccess,andadditionalactionsandcommunicatethesetoapproachbestsuitedtotheirportfolioandoncommunicatingthemanyactionsconsumers.Theseactionsinclude:anycomplementaryactivitiestheywishtoundertakenbyourbrandsisourmostundertakebasedontheirspecificcarboneffectiveconsumertouchpoint.•Investinginhigh-qualitycarboncreditsoutsidefootprintandconsumerengagementstrategy,oftheirvaluechainasasupplementaryeffortwhilstalwaysensuringcompliancywithlocalOurbrandteamsdriveemissionsreductionsandinaddition–notasareplacement–toregulatoryrequirements.Scope3removalsinsupportofourcompany’semissionsreductionsandremovalsassociatedprogresstowardsachievingnetzeroGHGwithNestlé’sownvaluechains.Suchcarbonemissionsby2050.credits,alsoknownasoffsets,arenotasubstituteforsustainedandrapidreductionsIndividualbrandscanalsogoastepfurtherandinNestlé’sGHGemissions.deliveradditionalimpact.Theycanbeginwithsimplesteps,suchasinformingconsumersabout•SupportinginnovationsorprogramsthatthecarbonfootprintofaproducttohelpguidecontributetoGHGemissionsreductionstheirpurchasingdecisions.Theycangofurtherbeyondtheirimmediatevaluechain.byobtaininganindependenthigh-qualityandhigh-integritycertificationoftheirGHGemissionsreductionsorScope3removalsacrosstheirvaluechain,tounderpintheircommunicationstoconsumers.41Nestlé’sNetZeroRoadmapUsingourvoicetogalvanizeactionNestlécannotachievenetzeroemissionsAllourclimatechangelobbyingactivitiesalignalone.Alongsideextensivevaluechainwiththegoalofrestrictingglobaltemperaturecollaborations,weneedtohelpcreateaincreasesto1.5⁰Cabovepre-industriallevelsandbroaderenablingenvironmenttodeliverthistranslatesintospecificadvocacyeffortsatchangeatpaceandscale.global,regionalandcountrylevels.WepromotethesameapproachintheactivitiesoftradeWesupportprogressiveclimateactionandpublicassociationsandothertypesofprivatesector-policiesthatalignwiththeParisAgreementandledcoalitionswhereNestléisamemberatthe1.5⁰Cpathway.Nestléwillcontinuetoglobal,regionalandlocallevels.InourNestlébeapositivechangeagentandhelpcountriesClimateAdvocacyIndustryAssociationsReview,setandmeetambitiousclimatetargets.wetransparentlypublishanassessmentofourmainindustryassociations’positionsandadvocacyactivitiesonclimatemattersandtakeactionincaseofmisalignments,aspertheGlobalStandardonResponsibleClimateLobbying.42Nestlé’sNetZeroRoadmapUsingourvoicetogalvanizeactionWeengageinclimate-relatedadvocacyImprovedcorporateaccountabilitytoencouragegovernmentpoliciesTobuildtrustincorporateactionsonclimate,weandprivatesectorleadershipthatsupportthedevelopmentofambitiousandclearenablerapidandsustainedreductionsvoluntaryandregulatoryrequirementsfornetzeroinGHGemissionsaroundkeyareas,commitmentsanddisclosures.AlevelplayingfieldalignedwiththeoperationalfocusofwithwidelyagreedstandardswouldhelpraiseourNetZeroRoadmap.ambitionlevelsacrosstheprivatesectorandimplementationofourownplan.Thesekeyareasare:AdvocatingforhigherglobalambitionDespitesignificantprogresstodate,theworldhasstillnotraiseditscollectiveambitionlevelenoughtolimitglobaltemperatureincreasesto1.5degrees.Weadvocateforfurtherambitionfromcountriesandcompanies–andtheachievementofexistingNationallyDeterminedContributions.Thisincludessupportingaregenerativefoodsystematscaleapproachtoreachingnetzero.43Nestlé’sNetZeroRoadmapUsingourvoicetogalvanizeactionEncouragingmoreregenerativeformsSupportforcarbonScope3removalsviaWeadvocateforNCStobeanallowedandofagriculturalproductionnaturalclimatesolutionsrecommendedtooltofightclimatechange,WesupportandencouragepolicymeasuresThereisanurgentneedforclearer,widelyregulatedundertheGHGProtocol,SBTiandothertoincentivizethetransitiontoregenerativeacceptedinternationalstandardsonthevalueofrecognizedstandards.Governmentsshouldagriculture.high-qualitycarbonScope3removalswithinvaluerecognizetheNCScontribution–thatgoesfarchains,andrecognitionthattheseformanessentialbeyondcarbon–throughinclusioninNationallyTocomplementandscalevoluntaryaction,wepartofreachingnetzerointhelandusesector.DeterminedContributionsandNationalBiodiversityencouragecertificationschemestoincorporateStrategiesandActionPlans.regenerativeagriculturalpracticesintostandardsCarbonScope3removals–intheformofnaturalandregulation.climatesolutions(NCS)–offermultiplepotentialco-benefitsintheformofsafeguardingbiodiversityWealsoneedabroadersocietalunderstandingofandwaterresourcesandpositivesocialimpacts.Forthecurrentstateofsoilsandbiodiversity,ourNestlé,theyalsoreflectalong-termcommitmenttocollectivedependencyonnaturalecosystemsandoursourcingregionsandcommunitiesonthethevalueofregenerativeagriculture.ground.Reflectingthis,NCSshouldbepromotedbygovernments,policymakersandcompanieswithWesupportincreasedpublicandprivateR&Dsignificantland-basedfootprint,e.g.agricultureandinvestmentintoregenerativeagriculture,includingfoodcompanies,supportedbyrobuststandardsseeds,low-carbonfertilizers,solutionsfortheincludingclearaccounting,monitoring,reportingtraceabilityofrawmaterials,soilhealthmonitoringandverificationsrules.andbiocontrolsolutions.44Nestlé’sNetZeroRoadmapUsingourvoicetogalvanizeactionEnablingmoresustainablelogisticsSupportingaccesstorenewableelectricityImprovingconsumercommunicationsandclaimsPublicpolicyhasabigroletoplayinsupportingandenergyNetzero,carbonneutral,climatepositiveandtherolloutofintermodaltransportandrailcorridors,Moreinfrastructurethatincreasestheavailabilitycarbonnegativeareamongmanytermsnowbeingandthedevelopmentandcommercializationofofrenewableenergyisneededinmanypartsofusedbycompaniestocommunicatehowcorporatelowercarbontransportoptions.theworld,asareenergyefficiencyinitiativesandroadmapsandproductsarehelpingthemreducetheadoptionofnewtechnologies,supportedbytheirenvironmentalfootprint.Asaresult,theseDeliveringradicalreductionsinemissionsalsopublicandprivateinvestment.claimscanbevaluableforcompaniesandbrands,reliesonlogisticsproviders,especiallyoftruckandbuttheylackclearandwidelyaccepteddefinitions.oceanfreightservices,toacceleratedeliveryofPledgesandpoliciesthatpromotetheuptakeoflowercarbonoptionsforshipperslikeNestlé.cleanenergyareimportant,andweneedclearThiscausesconfusionandmistrustamongstandardsonmethodologyforcalculatingtheconsumersandstakeholders.WewanttoseeclearScope3impactsofrenewableenergyandinternationalstandardssocompaniescanmakealternativefuels.Wewouldliketoseealignedcredibleclaimsbasedonlifecycleassessmentsfordefinitionsonacceptedmechanismsforclaimingproducts,toallowconsumerstoengageintherenewableenergyconsumption.decarbonizationeffortsofcompanies.45Nestlé’sNetZeroRoadmapGlossaryExplainingsomeimportanttermsCarbondioxideequivalent(CO2e)Carbondioxideequivalentisasimpleway46NNeesstltélé’s’sNNeettZZeeroroRRooaaddmmaappTheParisAgreementofcomparingthewarmingpotentialofarangeIn2015,torespondtothethreatofclimatechange,ofGHGs(includingcarbondioxideandmethane)countriesaroundtheworldconvenedinParisbyconvertingtheiramountstotheequivalentundertheUnitedNationsFrameworkConventionamountofcarbondioxide.onClimateChange.Theyagreedtokeepglobaltemperaturerisesbelow2degreesCelsius(°C)Carbonneutralattheproductlevelabovepre-industriallevels,andtoworktoward(basedonISO14021,2016)a1.5°Climit.AlltheGHG(orCO2e)emissionsfromallstagesoftheproductlifecycle,andwithinthespecifiedGreenhousegases(GHGs)processes,havebeenreduced,removedor,Gasesthattrapheatintotheatmosphere,asalastresort,accountedforthroughasystemthereforecontributingtothewarmingoftheplanet.ofoffsetsresultinginaproductthathasacarbonTheyareoftenexpressedasCO2e(carbondioxidefootprintofzero.equivalent)intermsoftheirGHGimpactlevelsovertimeusingCO2asareference.Netzeroatthecorporatelevel(basedontheScienceBasedTargetsinitiative)NetzeroemissionsareachievedwhenanthropogenicemissionsofGHGstotheatmospherearebalancedbyanthropogenicScope3removalsoveraspecifiedperiod.TheclimatemetricusedhereisCO2equivalent(CO2e),andallGHGemissionsareinscope.47Nestlé’sNetZeroRoadmapnestle.comOfficialversion(English).Translationsinotherlanguagesmayvary.
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