Nestlé aims for 100% deforestation-free primary supply chains

Could you please summarize the company's overall ESG strategy?

In 2022, Nestlé was rated AA by the MSCI ESG Research for its performance on environmental, social, and governance (ESG) issues. The company focuses on achieving and maintaining 100% deforestation-free primary supply chains for meat, palm oil, pulp and paper, soy, and sugar, and aims to do so by 2025 for coffee and cocoa.

The concept for the ESG at Nestlé is Creating Shared Value (CSV), a set of principles aiming to unlock the power of food to enhance the quality of life for everyone, today and for generations to come. We have sought to build our business by taking decisions that are not just good for us and our shareholders, but for society and the planet as well.

Our approach to sustainability is wide-ranging, underpinned by commitments to strive for net-zero emissions and deforestation-free supply chains and to advance regenerative agriculture at scale. Alongside this, we are committed to improving water stewardship, developing better packaging with improved circularity, creating opportunities for young people, and building a diverse and inclusive workforce.

The company has already announced last year that in 2023 it will count investments in the development of the portfolio with sustainable products. Which are these? What is the amount of investment in sustainability?

In 2020, we launched our Net Zero Roadmap, a Science Based Targets initiative (SBTi)-aligned plan to reduce Nestlé's emissions. It has enabled us to put peak carbon emissions behind us and make progress toward our greenhouse gas (GHG) emissions reduction targets for 2025 (20% reduction) and 2030 (50% reduction). Because climate intersects every part of our company, it forms one of the five workstreams of our ESG Strategy and Deployment Unit.

We also continued our work to lower carbon emissions associated with our logistics, according to our 2022 CSV Report. Nestlé is investing over CHF 100 million by 2030 in low-carbon logistics for our three international water brands: S. Pellegrino, Acqua Panna, and Perrier. In Germany, work on a new distribution centre is underway. The aim is for the centre to achieve platinum certification from the German Sustainable Building Council. The plan is to reduce both our freight mileage and CO2 footprint from logistics by around 30% per year.

What educational programs does the company run?

Nestlé, the world's largest food and beverage company, is supporting as a main partner the international "Traista cu sănătate" program which promotes the optional course "Education for a healthy lifestyle" in 70 primary schools and kindergartens in five counties from Romania. The program was initiated in Iasi in 2012 and is coordinated by the Healthy Traditions Foundation. This year, for the first time, the program has been extended and partnerships have been concluded for the implementation of projects in the country, in Botoșani and Neamț, as well as abroad, in the Republic of Moldova, in Chișinău. For the last 12 years, we have been the main partner and founding member of the national movement “I eat healthy too – SET!”, coordinated by PRAIS Foundation, and within this educational program, we managed to reach only this year's edition 60,000 primary school pupils from 179 cities and local communities in 15 countries. 402 schools and over 3,400 teachers and 120,000 family members were able to access SETS information.

We have developed also NutriPlate, a nutritional method that guides you to the right proportions from each food group for the main meals of the day. The plate is divided into 3 parts that guide in a way that half of the plate is filled with vegetables and greens, a quarter with protein-rich foods, and a quarter with grains/pasta/rice and other carbohydrate sources.

Another path is the professional development of young people. For example, Junior Achievement Romania, in partnership with Nestlé Romania, have finished another stage in their professional development program "Your Professional Success", through which they offer pupils and students suggestions and inspirational models for preparation and career progress. In April alone, 1,607 high school students and 283 students from technical, economic, and food industry profiles, from 36 cities in total, participated in three online meetings with five Nestlé Romania volunteers where they discussed what choices are necessary to foreshadow a successful professional career. Also, starting July 3rd, 50 students and graduates from Romania, Bulgaria, Serbia, and Croatia to this year's Summer's Cool paid internship program at Nestlé subsidiaries in these countries. During the three weeks, students will participate in a practical development program supported by specialists from the fields of Logistics, Finance, Sales, Marketing, Digital, Public Relations, E-Commerce, Nutrition, Sustainability, and more.

What are the role of projects and the ESG field for a company of the calibre of Nestlé Romania?

The objective of CSV projects is to educate consumers in all countries on responsible and healthy consumption and to unveil to them the efforts paid by the company to achieve the most possible environmental production and logistics. Take NutriPorția for example it promotes health by balancing dietary principles, and it also opens the way to environment-friendly products such as Garden Gourmet brand.

How much has the company reduced its absolute greenhouse gas emissions and what is the plan for the next years in this regard?

In brief, we reduced by 6.4 million tonnes of CO2 emissions, compared with a business-as-usual scenario. We use 2.38 million m3 less water in our factories. 81.9 % of our plastic packaging is designed for recycling. All these, and others, spare enormous quantities of emissions.

In recent years the company has launched several plant-based food and drink products with lower carbon dioxide emissions. What other such products and drinks do you prepare?

Indeed, the star line of these products is the Garden Gourmet, plant-based products. For vegetarians and vegans, as well as those who try to take care of the environment by starting with what they put on their plate, Nestlé Romania launched in March GARDEN GOURMET® Sensational Burger and GARDEN GOURMET® Nuggets, products based on plant-based ingredients and, above all, plant-based proteins, available for starters in Kaufland, Mega Image and Carrefour stores. We are trying to support all consumers, whether they are used to a plant-based diet or just want to make the transition to a more balanced diet in which animal foods and especially meat have a smaller share, all of this while keeping in mind that 29% of Romanians say that they do not consume plant-based food at all. From our studies, about 4 out of 10 consumers expressed a strong intention to eat plant-based products in the future and more than a third, mostly women, expressed a desire to increase their consumption of plant-based foods.

At what stage are the actions to transform the packaging of Nestlé products into 100% recyclable or reusable packaging? What about the plan to reduce the use of new plastics?

At the end of 2022, 81.9 % of our plastic packaging was designed for recycling. We also reduced by 10.5 % the volume of virgin plastic (versus 2018 baseline) used for packaging.

Are you planning a new tree-planting campaign this year?

We will continue to grow the Honey Forest from Giurgiu. Last year we planted there 20,000 acacia trees and this year we plan to plant another 10,000 acacia trees, as we support biodiversity and the beekeepers' community.