Nestle Germany collaborating with AgriTech company Klim to reduce GHG emissions by sourcing 20% of key raw materials sustainably by 2025 and investing 1.2B Swiss francs in regenerative agriculture

FRANKFURT , April 23, 2024 (press release) –

Nestlé, in partnership with Klim, aims to reduce greenhouse gas emissions by sourcing 20% of key raw materials sustainably by 2025 and investing CHF 1.2 billion in regenerative agriculture.

Key Highlights:

* Nestlé aims to source 20% of key raw materials from renewable agriculture by 2025 and half by 2030

* Two-thirds of Nestlés greenhouse gas emissions come from raw material sourcing

* Nestlé is investing approximately CHF 1.2 billion in transitioning to regenerative agriculture by 2025

Original Press Release:

Frankfurt , April 22 -- Nestle issued the following news release:

Climate change is advancing and requires urgent action. Also by companies. Nestlé Germany is collaborating with the AgriTech company Klim to reduce greenhouse gas emissions and make agriculture future-proof.

Sustainable solutions are needed

When it comes to limiting the consequences of climate change, food companies play a crucial role. Nestlé is aware of this responsibility. On the way to Green Zero, the company has set itself the goal of sourcing 20 percent of its most important raw materials from regenerative agriculture by 2025 and half by 2030. Around two thirds of Nestlé's greenhouse gas emissions come from the procurement of raw materials.

Nestlé will invest around 1.2 billion Swiss francs by 2025 in the shift towards more regenerative agriculture. “Together with our partners, we want to make agriculture future-proof by helping farmers adapt to climate change,” says Philip Werkmann , Sustainability Manager at Nestlé Germany . Initial progress has already been made: Last year, the company was able to reduce its greenhouse gas emissions by more than 13 percent compared to the baseline year of 2018 and sourced more than 15 percent of its most important raw materials [1] from farmers who use regenerative farming practices.

Regenerative measures aim to make agriculture and its ecosystems more resilient to environmental changes and to secure the livelihoods of farmers and future generations. In particular, the methods are intended to protect and improve soil, promote biodiversity, reconnect livestock and land, protect the water cycle and promote the well-being of communities.

Digital platform facilitates documentation in the field

In order to reduce emissions in its own value chain together with suppliers and their farmers, Nestlé Germany has started a multi-year project to promote regenerative agriculture together with the AgriTech company Klim . Regenerative measures help secure harvests in times of extreme weather events such as droughts, heavy rain and erosion, while at the same time promoting biodiversity and storing CO 2 from the atmosphere in the soil. “By varying what we grow on a given area of ​​land over time, we can, for example, improve soil quality and soil fertility. This means the soil stores more carbon in the long term,” explains Lutz Wildermann , VP Agriculture at Klim.

As part of its own digital management program “Boden+”, Klim has developed a digital platform with which agricultural businesses can easily document regenerative measures that are eligible for remuneration. Dr. Thomas Gäbert from the Trebbin agricultural cooperative has been taking part in the Boden+ program for several years. “In the beginning we tested many different measures. “I can now partially refinance this and further expand regenerative practices on my farm,” says the farmer. When farmers are new to the program, the initial scenario is first recorded by documenting the management practices of the last three years. If necessary, soil samples are also taken and analyzed. The data is then entered into a calculation model. This allows a prediction to be made about how much carbon can be stored in the soil. The soil samples are taken in collaboration with the company Agricarbon . Accurately measuring soil carbon requires precision and consistency across different soil types, farming systems and geographical settings. “The process is complex. “But only by adhering to recognized scientific principles can the quality of carbon build-up in the soil be guaranteed,” explains Dr. Harry Kamilaris , Senior Business Development Consultant at Agricarbon.

For Nestlé, one thing is certain: there is no single solution to the fight against the effects of climate change. Nevertheless, investing in sustainable innovation, supporting local communities and empowering future generations of farmers remains an important step towards a more resilient future.

Footnote:

[1] In 2023, the following raw materials were included in the numerator: dairy products (fresh milk and milk derivatives), coffee (excluding blends of green coffee and Blue Bottle), cocoa, cereals and grains, soy and vegetables. The denominator includes all raw materials in the scope: coffee, cocoa, dairy products, sugar, cereals and grains, meat, poultry and eggs, palm oil, soy, vegetables, fish and seafood.

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[Category: Food, Oil & Gas Refining & Marketing, Partnerships and Alliances, ESG]

Source: Nestle

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