At the Inspiring Hungary investor conference held this October, organised by the Hungarian Investment Promotion Agency, Mr Péter Noszek, CEO of Nestlé Hungary Ltd., told our magazine, among other things, the following word: “It is not about making money anymore, but it is about sustainability.” He knew what he was talking about as his company was setting an example to the world. Nestlé knows that someone has to start somehow.
Climate change is becoming a critical business risk
Nestlé, the world’s largest food and beverage producer, committed to achieving zero net greenhouse gas emissions by 2050. “Climate change belongs to the greatest threats we face as a society. It is also one of the greatest risks to the future of our business. We are running out of time to avoid the worst impacts of global warming. That is why we set our grant ambitions to achieve a sustainable future. Due to diversification of Nestlé’s global resources and industrial know-how, we are well aware that we can significantly change our business. Our journey towards a better future has already begun, and we are now accelerating our efforts,” said Nestlé CEO Mark Schneider.
The trillion markets are taking on the fight to save the planet
Nearly 90 major global companies with total market value excessing $ 2.3 trillion promised to reduce greenhouse gas emissions. In the We Mean Business campaign, companies such as L’Oréal, Danone and Nokia have committed themselves to this goal, in addition to Nestlé. However, some companies have not taken on carbon neutrality but promise to gradually adapt their operations to the intent of keeping the world average temperature rise to 1.5 degrees Celsius by 2030 compared to the pre-industrial revolution period as it was set out in the Paris climate agreement of 2015.
Nestlé is leading by example, and the company wants to achieve sustainable development by marketing more plant foods and beverages. It will also improve the management of its dairy supply chain.
The company has intensified its efforts to protect forests by replanting trees and increasing biodiversity. Besides, it has already committed itself to zero deforestation by 2020. Currently, a third of Nestlé’s factories all around the world use 100% renewable electricity, and the ratio of renewable energy use shall continue to increase. Such an approach will allow suppliers to invest in new infrastructures such as wind and solar farms.
The company is already streamlining its distribution networks and warehouses by optimising routes to reduce fuel consumption and carbon emissions. The company has already managed in its 100 largest distribution centres to reduce greenhouse gas emissions by nearly 40 per cent over the past four years. Since 2014, the reduction of greenhouse gas emissions within the entire value chain has been equivalent to excluding 1.2 million cars from transport.
The Institute for Sustainable Packaging 2025 was established
Nestlé is committed to 100 per cent of its packaging to be recyclable and reusable by 2025. In less than a year, the company has developed a new recyclable paper packaging for Nesquik All Natural cocoa powder and YES bars! So far, only plastic or composite materials have been used in the manufacture of long-life bar wrappings. Nestlé’s technological innovation means that these materials can be replaced by paper.
“Our vision is a world where none of our packagings ends up in a landfill. To achieve this, we opened the Packaging Development Institute, the first of its kind in the world. The Institute will enable us to create a sustainable packaging solution for Nestlé products across businesses and markets,” said Schneider.
The Institute focuses on the development of reusable packaging, simplified or recyclable packaging materials, but also of biological, compostable and biodegradable packaging.