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    Home»Industry News»Supply Chain»Nestlé: CHF 3.2 billion investment to combat climate change
    Supply Chain

    Nestlé: CHF 3.2 billion investment to combat climate change

    By Kloepfel22. November 2020Updated:15. December 20202 Mins Read
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    Promoting sustainable supply chains

    Food company Nestlé announces that it is stepping up its commitment to combating climate change. According to the corresponding press release, the focus is on regenerative agriculture. Likewise, electricity is to be switched to renewable energy.

    Reducing CO2 emissions to net zero

    Last week, Nestlé presented a detailed action plan. According to the company, measures will be taken to halve the Group’s emissions by 2030 and reduce them to net zero by 2050. This will be done while factoring in expected growth, the company stresses.

    Regenerative agriculture

    One of Nestlé’s priorities is to support farmers and suppliers in implementing regenerative agriculture. In this regard, the group says it is already working with 500,000 farmers and 150,000 suppliers. They receive support in the use of regenerative cultivation methods. In return, Nestlé increases the quantities purchased, pays a surcharge on the products and contributes to the necessary investments.

    Renewable energy

    By 2025, 100 percent of the electricity used in operations is to come from renewable energy sources – at all 800 sites in 187 countries. Similarly, Nestlé is converting its global fleet to lower-emission vehicles by 2022. In the process, there are also plans to reduce and offset business travel.

    Investments in the billions

    As Nestlé outlines in its press release, the company expects to invest a total of 3.2 billion Swiss francs over the next few years to accelerate this process against climate change. This includes 1.2 billion Swiss francs for the introduction of regenerative agriculture along the company’s entire supply chain. Nestlé aims to make its initiative earnings neutral. To achieve this, the corresponding investments are to be financed primarily through operational and structural efficiency improvements.

    Source: www.kloepfel-consulting.com

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