Key Impact Points:
- Nestlé hit its 2025 goal of reducing emissions by 20%—a year early—through supply chain efforts and methane cuts.
- 95% of Nestlé’s emissions come from its value chain, making Scope 3 reductions critical to reaching 2030 targets.
- Experts question Nestlé’s heavy reliance on carbon removals, which are expected to rise eightfold by 2030.
Nestlé Hits 2025 Climate Target Early
Nestlé has reduced its greenhouse gas emissions by 20% compared to 2018 levels—hitting its 2025 target one year early, according to its 2024 Non-Financial Statement. The $90B food giant achieved the reduction through supply chain initiatives like training farmers, cutting methane, and avoiding deforestation.
“This is not a permanent emissions removal,” said Sybrig Smit, policy analyst at the NewClimate Institute, cautioning against relying on land-based removals that can be reversed if land is mismanaged.
Sector Leader, But Still Under Pressure
Nestlé stands out among food and beverage peers, with its net-zero target validated by the Science Based Targets initiative (SBTi) back in 2020. Just 44% of its peers have net zero targets, and fewer still target methane emissions—something Nestlé does, alongside Campbell Soup and Danone.
Ceres’ Carolyn Ching praised the company’s methane reduction strategy: “We think Nestlé is demonstrating that they’re putting plans and steps in place in order to make progress.”
Chief Sustainability Officer Antonia Wanner, who recently joined Nestlé’s C-suite, oversees this progress. CEO Laurent Freixe, who took over in 2023, has said sustainability investments may slow post-2025.
Scope 3 Emissions Are the Crux
In 2024, 95% of Nestlé’s 75 million tCO2e emissions came from Scope 3 sources, mainly livestock and dairy. Its methane emissions alone totaled 13 million tCO2e. Nestlé has begun tackling this through feed additives and participation in the Dairy Methane Action Alliance.
PwC’s David Linich called livestock decarbonization one of the “toughest tasks” in the sector. Nestlé appears ahead, while PwC data shows over half its competitors are off track on Scope 3 goals.
The Controversy Over Carbon Removals
Nestlé deducted 1.6 million tCO2e in 2024 via removals like agroforestry and regenerative agriculture. By 2030, that number is projected to increase to 13 million tCO2e—a nearly eightfold jump.
SBTi permits these removals, but many experts challenge their permanence and transparency. Nestlé said it gathers on-farm data, uses satellite monitoring, and places 20% of credits in a buffer pool to reduce reversal risk.
Still, the company’s “Portfolio transformation” strategy—expected to deliver 6 million tCO2e in cuts by 2030—is vague. When asked, Nestlé pointed to examples like its Nescafé Alta Rica brand, where emissions per jar dropped 11–14% since 2018.
Investor Messaging: Sustainability on Mute?
Despite presenting a robust climate roadmap publicly, Nestlé’s investor-facing messaging has shifted. CEO Freixe recently said, “We have done the heavy lifting” and that future sustainability investments would come “at a lower pace.”
This contrasts with the broader sector: According to PwC, food companies expect climate spending to rise to 20% of total capital expenditure by 2030.
Looking Ahead: A Fork in the Road
Nestlé has built one of the most credible emissions reduction strategies in its sector. But its reliance on nature-based removals and ambiguous investment commitments raise questions about the integrity of its path to net zero.
The company’s challenge is emblematic of the food sector’s broader dilemma: facing massive Scope 3 footprints and consumer behavior that’s slow to shift, companies like Nestlé must balance investor pressures with climate commitments—while contending with a carbon accounting system still under debate.
Related Article: Nestlé and UNESCO Launch Global Initiative to Empower Youth in Climate Resilience
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