Climate woes: Nestle plans $3.6bn spend

Mumbai:

Nestle

plans to invest 3.2 billion Swiss francs, or $3.6 billion, over the next five years to combat

climate change

. In a global conference held virtually, the world’s largest food company said the investment includes 1.2 billion

Swiss francs

in regenerative agriculture across its supply chain.

The announcement is a road map in line with the company’s plan to halve its emissions by 2030, and achieve net zero emissions by 2050. These investments will be financed primarily through operational and structural efficiencies to keep this initiative earnings-neutral. On how this would impact profitability, Nestle CEO Mark Schneider said: “In 2021, we are fully covered. While we have said we fully intend to make this earnings-neutral, the degree to which it is possible may vary from year to year.”

The move would see Nestle planting hundreds of millions of trees within the next 10 years, completing the company’s transition to 100% renewable electricity by 2025 and focusing on regenerative agriculture. To achieve the target, Nestle would not only purchase certified carbon credits but also reduce its business travel significantly.

On its part,

Nestle India

is expected to accelerate its actions towards reducing greenhouse gas emissions across its manufacturing locations and transport of goods, said

CMD Suresh Narayanan

. “Our ambition is to achieve 100% recyclable or reusable packaging by 2025. We are working towards shaping a waste-free future and driving new behaviour,” said Narayanan.

Nestle executive VP & head (operations) Magdi Batato said, “With nearly two-thirds of our emissions coming from agriculture, it is clear that regenerative agriculture and reforestation are the focal points of our path to net zero. These efforts will reduce emissions and improve biodiversity at scale. We will also continue to eliminate emissions from our operations and make improvements in our product portfolio. We have our work cut out for us and we are committed to delivering.”