Nestlé

The company has conducted TCFD-aligned climate scenario analysis to assess transition and physical risks under three IPCC-aligned climate scenarios: low (1.5°C), medium (2- 3°C), and high (4- 5°C). This analysis includes animal agricultural supply chains, such as the impact of heatwaves on key dairy and meat commodities, and shifts in consumer demand towards lower-emission products such as plant-based foods and drinks. The company is responding to these risks by incorporating regenerative agriculture into its net-zero strategy, aiming to source 50% of key ingredients, including meat and dairy, from regenerative sources by 2030. Additionally, the company is expanding its portfolio of diverse protein sources and modifying recipes with lower-emission ingredients.

Nestlé reports that dairy and livestock ingredients are its single largest source of Scope 3 emissions, contributing 30% (22.41 million metric tonnes CO₂-e), while 95% of the company's total emissions are Scope 3. However, the company does not provide a detailed breakdown by protein type (e.g. beef, poultry, pork, dairy).

In 2023, Nestlé set a 1.5°C SBTi-approved Scope 3 target including animal agriculture supply chains under FLAG guidance. The company aims to reduce absolute Scope 3 FLAG GHG emissions by 50% by 2030 and 75% by 2050, using a 2018 baseline year.

The company has quantified the emissions mitigation potential of protein diversification in its climate disclosure. As part of its Net Zero Roadmap, Nestlé plans to reduce GHG emissions by 0.74 million tonnes CO₂-e by 2030 through substituting animal-based ingredients in products with plant-based alternatives. As of 2023, Nestlé reports product reformulation, including with plant-based ingredients, as contributing to 6% of the company's overall emissions reduction.

The company discloses evidence of strategically integrating protein diversification into its climate transition plan, but has not set a public protein diversification target. Nestlé plans to invest CHF 3.2 billion by 2025 into supporting efforts related to its Net Zero Roadmap, which includes increasing plant-based alternatives in products by substituting animal ingredients to achieve an anticipated emissions reduction of 0.74 million tonnes CO₂-e by 2030.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target and does not report on metrics related to alternative protein sources.

The company has not yet set a public protein diversification target and does not report on metrics related to alternative protein sources.

Nestle has linked both long-term and short-term incentivisation to Environmental, Social, and Governance (ESG) objectives, including a reduction of greenhouse gas emissions, however, it is unclear which emission Scopes the company has linked to its board remuneration.

The company discloses that 43% of its board members have experience in sustainability.

The company discloses that one of its board members has technical expertise in nutrition.

Nestlé provides a comprehensive list of its lobbying activities, including government agencies it engages with, and its policy positions as related to its food business. The company engages with several UN agencies and advocates for climate change policies that encourage broader decarbonisation of the food and agriculture sector, as well as incorporation of greater nutrition disclosure and regenerative agriculture principles into public policy. The company has provided a clear statement on its position on climate, nutrition, human rights, and packaging and circularity.

Nestlé discloses that its direct lobbying activities are aligned with positive climate and nutrition outcomes. The company states that it advocates for fair and ambitious climate-change policies that encourage the broader decarbonisation of the food and agriculture sector, and also to bring tasty and balanced diets within reach for billions of people. The company has assessed its advocacy efforts at COP28 and on policies such as the EU Nature Restoration Law, Soil Monitoring and Resilience Law, Directive on Corporate Sustainability Due Diligence and US Farm Bill as aligned with the Paris Agreement.

The company provides a comprehensive list of its affiliations with industry organisations and think tanks at the local, regional, and global levels across all geographies. Notably, the company joined the European Alliance for Plant-based Foods to put plant-based foods at the heart of the transition towards more sustainable and healthy food systems.

The company discloses an alignment assessment of its membership associations with positive climate outcomes and plans to address misalignment where applicable. The company assesses that none of its 36 most significant organisations have material misalignment or diverging views with its climate position and the Paris Agreement. However, 47% do not have a clear position on the Paris Agreement, so Nestlé seeks opportunities to highlight the importance of clearly stating alignment of advocacy activities. The company states that where conflict arises in an industry association, it advocates for the highest common denominator to try to ensure solutions bring the maximum benefit possible. In circumstances when the company does not agree with an agenda or a position of an industry association, industry alliance, or other member companies, it communicates transparently its position, and reserves the right to act as an individual company and engage independently with public authorities or other stakeholders. The company also discloses justification factors for leaving an industry association if necessary. The company does not assess alignment of its associations with positive nutrition outcomes.

The company has made a public commitment to Just Transition principles, with a key focus on supporting regenerative agriculture practices. It has targets to source 20% by 2025 and 50% by 2030 of key ingredients, including key animal agricultural ingredients such as dairy, meat, poultry and eggs, from farmers adopting regenerative methods. In 2024, the company surpassed its 2025 target, sourcing 21.3% of its key ingredients from regenerative agriculture.

The company has not made a public commitment to retain, reskill, redeploy or compensate its workers affected by its emissions reduction efforts.

Nestlé is supporting farmers to transition to sustainable agriculture practices in line with its regenerative sourcing targets by investing CHF 1.2 billion by 2025, particularly in dairy production. The company provides financial support, training and incentives for its animal agricultural suppliers through programmes like the Nature por NINHO® certification in Brazil and Sustainable Agriculture Initiative (SAIN). Through its Institute of Agricultural Sciences, and partnerships with stakeholders, the company is developing science-based solutions to improve farm resilience, yield, and environmental impact across its supply chains, with a focus on sustainable animal protein production.

The company discusses the need for a just transition towards regenerative agriculture practices, mentioning financial support, training, and human rights promotion for farming communities. The company's targets to source 20% of key ingredients from farmers using regenerative methods by 2025 and 50% by 2030 include key animal agricultural commodities. However, the company does not specify milestones or a timeline in a strategy to support a just transition in its supply chain for stakeholders affected by its emissions reduction efforts.

There is no evidence that the company has developed a Just Transition strategy in consultation with social actors, including farmers and workers, within its value chain. The company's Human Rights Framework, which serves as the foundation of its Just Transition strategy was developed with input from stakeholders, including business and human rights experts. The company also engages with more than 200 suppliers across 27 different countries in its Dairy Climate Plan, given that this commodity is its largest source of emissions. The company recognises that a farm-centric approach is required as no single solution will apply across the entire dairy industry.

Nestlé's just transition commitment is focused on the shift to regenerative agriculture practices, for which the company has public KPIs. The company aims to source 20% of its key ingredients from farmers adopting regenerative practices by 2025 and 50% by 2030. In 2024, Nestlé exceeded its 2025 target, sourcing 21.3% of its key ingredients from regenerative agriculture.

The company annually reports progress towards its regenerative agriculture ingredient sourcing targets in line with its just transition commitment. In 2024, the company exceeded its interim target of 20% by 2025 by sourcing 21.3% of its key ingredients from regenerative agriculture, including dairy, coffee, cocoa, cereals, grains, soy, and vegetables. This is up from 15.2% in 2023 and 6.8% in 2022, marking progress towards the goal of 50% by 2030.

Nestlé launched own brand plant-based products in its largest US and European markets in the past year. These include various products in the UK restaurant market, such as Garden Gourmet Vegan Pulled Fillet in a wrap at Starbuck's cafes, vegan tacos, flatbreads and salads at Harvester, kebabs at GBK and Chinese Noodle Soup at Butlin's. Additionally, the Nespresso brand partnered with external plant-based brand Oatly to launch coffee machine pods for use with oat milk in more than 15 countries, including the US, UK, China, and Australia. Maggi Rindecarne, a blend of meat and plant proteins to double servings without compromising nutrition, also launched in Chile, and Maggi Soya Chunks, an affordable, soy-based meat alternative, in Central and West Africa.

Nestlé evidences several types of resource allocation to improve the perfomance of alternative protein products in the past year. These include a global team of 300 food experts and chefs working on its plant-based portfolio; external collaborations to launch new products, such as in UK restaurant settings and coffee pods designed for use with oat milk; and investment in a Singapore R&D Centre in partnership with the Singapore Economic Development Board to drive innovation in plant-based and hybrid plant/dairy protein. Additionally, Singapore-based cultivated seafood company UMAMI Bioworks was selected by Nestlé's Purina pet food brand to join its Unleashed by Purina startup accelerator program in 2025. The company also states it is focused on acquiring companies that align with high-growth, high-margin categories, particularly those in the plant-based nutrition sector, although the disclosed examples of Orgain and Puravida are from 2022 rather than the current reporting year.

Nestlé does not have a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system. Although, the company reports on the healthiness of its portfolio through the Health Star Rating (HSR) system and its 'Good For You' strategy aims to grow portfolio segments that qualify as ''healthier'' (≥ 3.5) through increased transparency, responsible marketing and reduced sodium. In 2024, 59% of the company's food (excluding pet food) and beverage sales had a HSR ≥ 3.5, and the company incorporates Nutri-Score labels on its meat-free range to communicate product health to consumers, however, there is no evidence that it has set a minimum health and nutrition threshold for products.

Nestlé provides a high-level statement that it is reformulating products to improve nutrition, which includes alternative protein products. The company commits to drive innovation and competitive advantage across its business segments, including plant-based foods to address health challenges, and uses nutrient profiling systems to guide new product development and reformulation, aiming to enhance nutrient density by reducing sugar, sodium, and saturated fat, while increasing protein, fibre and beneficial food groups such as legumes and vegetables. NIDO milk and soy powder containing protein, fibre, and iron and calcium vitamin fortification is disclosed as an example from 2023, however, there is no new evidence of alternative protein products reformulated with improved nutritional attributes in the past year.

Nestlé provides a high-level statement that it is reformulating products to improve sustainability, which includes alternative protein products. The company states that recipe reformulations can improve sustainability outcomes and that it is launching products with a lower carbon footprint, such as NIDO milk and locally grown soy powder in 2023, however, there is no new evidence of alternative protein products reformulated with improved sustainability attributes in the past year.

There is no evidence that Nestlé has committed to marketing and merchandising strategies related to alternative proteins in its largest markets.

Nestlé is marketing and merchandising alternative protein products in its largest US and European markets. The company promotes its plant-based products and educates on the health impacts of plant-based diets, including the use of non-dairy baby formulas, on its website and social media channels, and promotes Maggi Soya Chunks as a convenient and affordable meat alternative through its "Cooking with Nestlé Chefs" initiative. Additionally, the company's Garden Gourmet brand packaging was redesigned with a new, more prominent logo, imagery for cooking inspiration and colours for consumers to more readily identify which type of meat product the plant-based alternatives are intended to substitute.

Nestlé is working to ensure its alternative protein source products are accessible and affordable in select African and Latin American markets, however these are not the company’s largest US and European markets. The company has introduced Maggi Soya Chunks in Central and West Africa and a Maggi Rindecarne meat extender in Chile to address local dietary cultures, limited storage conditions, affordability, and nutritional value.

Nestlé has conducted consumer research relating to demand for alternative protein sources, however, there is no evidence of research relating to consumer trends in the sector. The company leverages third-party consumer research to identify demand for alternative proteins, finding growing consumer demand for low-carbon products, with up to 40% of consumers already moving to a diet with less or even no animal products.

Nestlé has used consumer research relating to healthy diets to inform its marketing and merchandising strategy, however, it is unclear if this includes alternative protein sources. The company's Tibay Calculator in collaboration with the Food and Nutrition Research Institute (FNRI) in the Philippines and the Iron Calculator in Pakistan inform related marketing and merchandising campaigns, such as the Live Strong with Iron campaign. Although, it is unclear if these findings informed the company's marketing of alternative protein sources.