03 Dec 2020
Posted in Consumer
Nestlé’s €3.58bn plan to halve carbon emissions by 2030 suggests overall industry shift
Following today’s news that Nestlé has set out a €3.58bn (US$4.34bn) plan to halve carbon emissions by 2030, and to be net zero by 2050;
Ryan Whittaker, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view:
“Nestlé’s ambitious plans reveal how pervasive environmental issues have become in the corporate and consumer world. In fact, GlobalData’s most recent surveys suggest that the COVID-19 pandemic has actually increased the priority of sustainability and ethics in global attitudes, meaning that Nestlé’s announcements are going to resonate with an extremely large number of international consumers.
“It is interesting to see that attitudes have most strikingly shifted towards ethics and sustainability in the global south. The pandemic has encouraged consumers everywhere to consider what they are buying and its associated environmental cost.
“Nestlé’s statements that its global reach provides it with a unique opportunity to address climate change is true. The company is prepared to pay a US$4.34bn price tag to support regenerative agriculture, reforestation, making more brands carbon-neutral and transitioning to 100% renewable electricity globally by 2025, which is extremely impressive. There’s no doubt that this will resonate well with consumers and regulators all over the world.
“Nestlé’s approach, which also focuses on making its soy and palm oil sourcing deforestation-free by 2022, is engaging and educational, and it has annual updates built-in to provide transparency and trust.
“As with Unilever’s recent announcements, Nestlé is really showing us a glimpse of how future business is going to be approached — companies are going to have to become greener, more transparent and ultimately more sustainable. Other companies should take note; their plans for the future should prioritize energy from renewable sources, reduce business travel, and tackle waste as key pillars of business practice. In the wake of COVID-19, consumers will demand businesses that help to make the world better.”
*GlobalData’s COVID-19 Recovery Tracker – Published November 10th
**Combined responses: “Significantly more important”, “Slightly more important” and “Now my top priority”