Nestle
Nestlé is the world’s biggest food and beverage company and is committed to using its global scale, resources and expertise to contribute to a healthier future for people and the planet. Nestle launched its Net Zero Roadmap in December 2020, announcing the intention to halve absolute emissions by 2030 and bring them to net zero by 2050. Nestlé’s Science Based Targets covers the full value chain. In addition, Nestlé also has carbon neutrality commitments for some of its brands such as Garden Gourmet, Nespresso and San Pellegrino.
Nestlé’s full value chain science-based target footprint (2018) is 92 million tonnes. At 7.5 million tonnes, distribution activities constitute 8.2% of the overall footprint.
Nestlé has measured both inbound and outbound distribution. Most emissions are from road transport.
“What you measure, you can improve. For Nestlé, the starting point in emission reduction is to evolve the recording and reporting transportation emissions, following the GLEC Framework and using EcoTransIT World (a GLEC accredited provider) as calculation engine. Having a clear view of where emissions are coming from, Nestlé can then follow a focused strategy for reduction. This strategy consists of avoiding unnecessary transport, shifting to the lowest emissions modes possible and improving by moving to lower and zero emissions fuels and vehicles. Collaborating with industry is key in making this shift happen. Smart Freight Centre provides a crucial forum where we can collaborate with other stakeholders to reduce emissions from distribution activities.”
Andrew Davenport
Nestlé Head of Zone EMENA Transport
Since 2014 Nestlé has reduced emissions from its outbound distribution activities by 10%, mainly by leveraging increased operational efficiency.
Based on its 2018 baseline footprint, Nestlé have developed a robust model to help set its roadmap. By modeling emissions reductions across eight geographical clusters, a set of interventions were identified to cut emissions. These interventions are built into market level roadmaps which are reviewed regularly. The localized roadmaps consist of an appropriate and feasible mix of interventions which can be summarized as follow:
Until 2025, Nestlé’s the main contributor to emissions reduction in distribution will be operational efficiency. In shifting to lower emission fuels, Nestlé prioritize decarbonization of road freight through zero emission tailpipe technology and is piloting Zero Emissions Vehicles together with their logistics partners such as a hydrogen truck in Switzerland and an electric truck in Sweden.
To meet specific commitments and in carefully considered contexts, we do use sustainable biofuels as a bridge-fuel to reduce emissions in the interim until zero emission tailpipe technologies are available.
To drive the required mindset shift, Nestlé built competence in Sustainable Distribution across its distribution community to enable each person to contribute to the reduction of emissions in distribution activities.
Report and set targets
- Nestlé has been a member of GLEC and Clean Cargo since 2020. The GLEC Framework was applied in the reporting and target setting for its 2018 baseline in distribution.
- In distribution, Nestlé sets internal targets for 2025 and 2030 which contributes to its Net Zero Roadmap.
Reduce
Nestlé follows a strategy of Avoid – Shift – Improve to reduce emissions from distribution activities.
Avoid unnecessary transport - Maintaining and improving operational efficiency
- Investments in IT allows filling vehicles and planning journeys more efficiently. This helps avoid empty miles by connecting inbound and outbound transport, further reducing emissions.
- Nestlé’s lean-logistics transportation hub (T-Hub) program will play an important role in the short and medium term. The program will create 19 offices at regional and local levels, and centralize the management and coordination of transport, using real-time visibility tools and advanced analytics to enable the proactive management of goods movements and vehicle optimization.
Shift
Switching to lower emissions modes are also a key part of Nestlé’s strategy. For example, for its brand San Pellegrino, Nestlé chooses transport by train and boat wherever possible, optimizing transfer of loads and, at the other end, using innovative means of transport fueled by Liquified Natural Gas. In this scope, Nestlé has reduced carbon dioxide emissions by up to 15% in recent years.
Improve technologies of fuels and assets used
Nestlé plans to initially reduce emissions by shifting to vehicles adhering to the EURO V and VI emissions standards. In partnership with logistics suppliers, it will shift away from fossil fuel-powered transport to fuels with lower or zero tailpipe emissions. These include hydrogen, electricity and biofuel powered vehicles, where these fuels have not been produced in competition with food crops.
Collaborate
No company can achieve emission reduction in distribution by acting on their own therefore, Nestlé is actively connecting with green logistics programs, such as SFC, the logistics industry, government organizations and NGOs such as WBCSD, the WEF and the European Clean Trucking Alliance, as well as benchmarking and auditing organizations.
Nestlé collaborates to enable the transformation to Zero Emissions Distribution through:
- Helping develop the right regulatory environment, specifically policies and public investment supporting intermodal transport and rail corridors.
- Supporting technological development, commercialization, and public investment, for electric, hydrogen and biogas infrastructure, including charging stations.
- Engaging logistics providers (especially truck and ocean freight, and truck manufacturers) to accelerate the provision of low-carbon solutions.
About Nestlé
Nestlé is the world's largest food & beverage company, unlocking the power of food to enhance quality of life for more than 150 years. It has more than 2’000 brands ranging from global icons to local favorites, which are sold in 186 countries and we have 376 factories in 81 countries. Nestlé has around 270’000 employees and generated sales of CHF84.3 billion in 2020.
Find out more on www.nestle.com
References
San Pellegrino: protecting the source of taste