Climate Advocacy Disclosure 2022 - Priorities & External Engagement - Nestlé
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Climate Advocacy Priorities Regenerative Agriculture Natural Climate Solutions (Insetting) Environmental Footprint Advocating for clear Macro- Policy to transform Energy Claims and fair Rules Engagement Industries Packaging Carbon Pricing & (covered separately) Markets and Offsetting Disclosure & Logistics Reporting 2 Climate Advocacy report 2022
Natural Climate Solutions (Insetting) Advocacy objectives Be recognized as a leading company in Influencing the standards and guidance to the implementation of our Natural Climate ensure our insetting projects: Solutions (NCS) strategy, through building credibility and confidence in our insetting • Can be counted towards our science- approach. We expect to: based targets (SBT); • Bring the voice from companies from the • Have standardized and credible land-use sector into NCS discussions; accounting methods; • Raise awareness of the specificities of • Operate within a level playing field which land-use sector companies in relation to incentivizes and enables all relevant NCS (insetting vs. offsetting); actors, in particular the private sector, to act and invest at scale. • Advocate for the right incentives that will promote NCS investments by land-use sector companies. 4 Climate Advocacy report 2022
Natural Climate Solutions (Insetting) Engagement Advocacy Green House Gas Science-Based Targets SBTi rules working International Insetting Natural Climate 1t.org platform Protocol Initiative group Platform Solutions Alliance (taskforce/ Forest, Land & coalition) Agriculture Committee Host(s) / WBCSD World Resources World Cocoa Corporate Partners World Economic World Economic Founders Institute Foundation (L’oreal, Nespresso, Forum Forum CDP Kering…) WWF Solutions Providers WBCSD UN Global Compact (PUR, South Pole…) Partners (B4N) Mission Develops standards, SBTi show The WCF and Business-led NCS Alliance Gathers companies alignment with tools and online organizations how its members are organization which engagement with playing a leadership training that helps much and how quickly committed to ending advocates for climate policymakers role in the space of Paris Agreement countries, cities and they need to reduce cocoa-related action at the source delivers the business forest conservation companies track their GHG emissions deforestation and of global value perspective on natural and restoration – progress towards their to prevent the worst taking climate action chains. These nature- climate solutions at whether they are climate goals. effects of climate through actions based solutions can global events and key already implementing change. aligned with the Paris provide more than a moments. their commitments and Climate Agreement. third of the emissions are ready to scale, or reductions required to have yet to formulate meet the 1.5°C goal. and develop a pledge. Advocacy Yes Yes Yes Yes Yes Yes activities align with the Paris Agreement? 5 Climate Advocacy report 2022
Environmental Footprint Claims Advocacy objectives Picture of success: Short term objectives: • Implementation of internationally • Promote legislation that establishes recognized standards (regionally a clear set of requirements based on harmonized scheme for Europe) that standards. allow companies and brands to make environmental footprint related claims in • Support a legislative framework in Europe a clear and credible way. on environmental footprint methodology and labeling, under upcoming EU ‘green • Promote fair competition, increase claims’ legislation. consumer trust, empowerment and drive real change aligned with local aspirations • Upcoming new ISO 14068 on Carbon and F&B industry commitments to Neutral. reducing environmental footprint. 6 Climate Advocacy report 2022
Environmental Footprint Claims Engagement Advocacy Environmental Environmental Environmental ISO-WD 14068 Environmental platform Information and PEF Information Working Information Working ‘Carbon Neutrality’ footprint methodology Task Force Group Group Committee and labelling (taskforce/ coalition) Host(s) / Food Drink Europe EUROPEN AIM ISO Foundation Earth Founders European Brands Association Mission The EU food and drink EUROPEN members AIM’s stated The International Foundation Earth is alignment with industry is committed are committed to the mission is tackling Standard’s an independent, non- to the EU’s target for a climate neutrality the accelerating Organization develops profit organization Paris Agreement carbon-neutral Europe goals of Europe’s new pace of climate powerful tools to help established to by 2050. sustainable growth change requires contribute to net-zero issue front-of-pack Areas of action: strategy, the European transformational emissions and create a environmental scores reduce greenhouse gas Green Deal, and fully changes to the system sustainable future. on food products, emissions and support the new EU in which brands enabling consumers to support farmers Circular Economy operate. We need make more sustainable to adopt more Action Plan government policies buying choices. sustainable farming that create the right practices to combat context for change climate change. and business action to advance the goal of the Paris Agreement to limit global temperature rises to 1.5 degrees by the end of the century. Advocacy Yes Yes Yes Yes Yes activities align with the Paris Agreement? 7 Climate Advocacy report 2022
Carbon Pricing / Markets & Offsetting Advocacy objectives Carbon Pricing Carbon Offsets Promote the recognition of an internal Help the development of a high-integrity carbon pricing methodology that will voluntary carbon market that will allow the help achieve Nestlé’s Net-Zero Roadmap legitimate use of high-quality carbon credits objectives. (for offsets and claims) representing real decarbonization outputs aligned with the Paris Agreement. 8 Climate Advocacy report 2022
Carbon Pricing / Markets & Offsetting Engagement Advocacy The Integrity Council Climate Impact X * The LEAF Coalition VCMI * platform for the Voluntary Carbon Market * (taskforce/ coalition) Host(s) / The Institute of DBS NICFI Multi-stakeholder Founders International Finance SGX UK Government platform Standard Chartered US Government Temasek Mission The ICVCM works Helps businesses LEAF’s goal is to VCMI drives credible, alignment with to accelerate the understand and halt deforestation net-zero aligned development of a navigate the complex by financing large participation in Paris Agreement carbon market through world of voluntary scale tropical forest voluntary carbon a just transition aligned carbon credits. protection. markets. It coalesces with the 1.5 degree Its vision is to drive stakeholders pathway environmental impact around a shared It sets and enforces at scale and foster vision for voluntary definitive global ecosystems that carbon markets to threshold standards, help companies take make a meaningful so high-quality carbon practical climate contribution to climate credits channel finance mitigation action action and limit global towards greenhouse through trusted carbon temperatures from gas reductions and credits. rising more than 1.5 removals, contributing degrees. to climate resilient development. Advocacy Yes Yes Yes Yes activities align with the Paris Agreement? * Nestlé is not currently an official member of these organizations but is closely tracking developments and takes a close interest in their work. 9 Climate Advocacy report 2022
Disclosure and Reporting Advocacy objectives Define and develop advocacy positions Areas being considered: based on a deeper understanding of the regulatory requirements, evolution and the • Seeking harmonization of reporting proliferation of investor/stakeholder indices. and disclosure requirements: avoiding duplications and overlapping standards, country breakdowns vs global reporting. • Better adaptation of the standards to industry-specific realities to foster the most accurate illustration of food and beverage company efforts . • In addition, stronger alignment on the use of materiality to select what companies report, rather than standards and frameworks that take a one-size-fits- all approach. • Priority geographic focus: EU, as detailed reporting requirements are progressing fast, with countries acting as frontrunners (e.g. GRI – EU Sustainability Standards development). 10 Climate Advocacy report 2022
Disclosure and Reporting Engagement with coalitions & standard setters Advocacy TNFD SOS 1.5°C GRI Standards platform • Enhancing global standards (taskforce/ and metrics coalition) • Value chain carbon transparency Host(s) / GFI WBCSD Founders We Mean Business Coalition Mission Mission: to develop SOS 1.5 is a cross- GRI exists to help alignment with and deliver a risk sectorial framework organizations be management and to help companies transparent and take Paris Agreement disclosure framework transform their responsibility for their for organizations operations and align impacts so that we can to report and act with 1.5°C. create a sustainable on evolving nature- future. related risks, with the ultimate aim of supporting a shift in global financial flows away from nature- negative outcomes and toward nature-positive outcomes. Advocacy Yes Yes Yes activities align with the Paris Agreement? 11 Climate Advocacy report 2022
Policies to transform industries 12 Climate Advocacy report 2022
Regenerative Agriculture Advocacy objectives Convey Nestlé thought leadership Short term success: anchored in our extensive experience of promoting sustainable agriculture • Foster the development of an industry- wide regenerative agriculture framework • Harmonize definitions, practices and KPIs defining common practices and KPIs. of regenerative agriculture across the food and beverage industry. • Launch of the Nestlé Soil Initiative: Communicate on pilots contributing to • Contribute to political processes, carbon improvements; Emphasize the link fostering support for regenerative between healthy soils and biodiversity. agriculture and the adoption of aligned definitions. Focus on EU and US is a • Formalize advocacy positions and share priority. them across the Group (Zones & Markets). • Help build farmer-led coalitions and • Convention on Biological Diversity support their participation in industry negotiations: participate in the dialogue platforms, to foster an inclusive dialogue. and use Nestlé voice to position regenerative agriculture as a solution to protect biodiversity. 13 Climate Advocacy report 2022
Regenerative Agriculture Engagement Advocacy Regenerative OP2B Soils Investment hub Scaling Positive Global Coffee Food Initiative IMAGINE platform Agriculture Agriculture Platform Programme – (taskforce/ Agriculture for 1.5 coalition) Host(s) / SAI Platform WBCSD Multi- stakeholder Ellen Mac Arthur Founders Foundation Mission SAI Platform is The coalition drives Resource for Maximizing Common vision Supports a circular Vision to help alignment committed to transformational knowledge the potential of to work towards a economy for food leaders use their helping to create a systemic change and connecting business agriculture as a thriving, sustainable to help people powers for good with Paris future where people, catalyzes action to to existing platforms solution for climate, coffee sector for and nature thrive, across business Agreement the planet and protect and restore that can mobilize nature and farmers. generations to to tackle climate and civil society sustainable business cultivated and finance, engage with come. change and to help address solutions come natural biodiversity farmers for value biodiversity loss. climate change together to ensure a within value chains. chain collaboration. and inequality viable and resilient OP2B develops and within value chains. agricultural sector. promotes policy OP2B develops and recommendations promotes policy for the COP 15 CBD recommendations framework. for the COP 15 CBD framework. Advocacy Yes Yes Yes Yes Yes Yes Yes activities align with the Paris Agreement? 14 Climate Advocacy report 2022
Logistics Advocacy objectives As a significant shipper, Nestlé supports Focusing on road and ocean transport, we: legislative and regulatory frameworks that help create the ecosystem necessary for • Work to improve access to alternative, the decarbonization of freight transport at lower carbon fuels for short term scale. emissions reductions • Support efforts to build out electric charging infrastructure for commercial vehicles • Advocate for strong regulatory frameworks that encourage vehicle manufacturers to bring medium and heavy electric goods vehicles to market at scale as soon as possible • Join forces with other shippers to explore ways of radically reducing the emissions from ocean transportation over the medium to long term 15 Climate Advocacy report 2022
Logistics Engagement Advocacy Global Logistics Clean Cargo Sustainable Freight COZEV platform Emissions Council Buyers Alliance * Cargo Owners For Zero Emissions (taskforce/ Vessels * coalition) Host(s) / Smart Freight Centre ASPEN Institute Founders Advocacy The mission of GLEC Collaborative The main goal of Cargo owner- activities align as an industry-led partnership between SFBA is to empower led platform for partnership is to drive ocean container companies to reach collaboration that with the Paris emission reduction carriers, freight net-zero freight enables maritime Agreement? and enhance forwarders, and cargo logistics carbon freight customers efficiency across owners that is focused emissions by no later to come together global logistics supply on tracking and than 2050 in line with and use their chains. reducing greenhouse a 1.5°C maximum brand power and gas emissions from global temperature economies of scale to container shipping. increase. accelerate maritime decarbonization. Aligned with Paris Agreement climate goals: GHG emissions are virtually eliminated for the entire sector by 2050. Advocacy Yes Yes Yes Yes activities align with the Paris Agreement? * Nestlé is not currently an official member of these organizations but is closely tracking developments and takes a close interest in their work 16 Climate Advocacy report 2022
Energy Advocacy objectives Help create an enabling environment that increases the availability of purchased renewable energies: support government initiatives aimed at developing the legal framework and infrastructures required. • Focus efforts on Tier 2 countries, where the infrastructures needs to be developed and where the market doesn’t currently offer suitable solutions for energy from renewable sources. • In Tier 1 countries, i.e. in countries where energy is regulated and supplied via the public grid: advocate for investment in renewable energy infrastructure or flexibilization of regulation to allow private agreements. 17 Climate Advocacy report 2022
Energy Engagement Advocacy RE100 Global Alliance for platform Sustainable Energy (taskforce/ coalition) Host(s) / The Climate Group Multi stakeholder Founders CDP platform Mission Global corporate Goal is a just transition alignment with renewable energy to net-zero and initiative bringing socially responsible Paris Agreement together hundreds of energy production, large and ambitious achieving the businesses committed ambition of The Paris to 100% renewable Agreement to avoid electricity. Mission is the harshest impacts to accelerate change of climate change on towards zero carbon people and the Planet. grids at scale. Advocacy Yes Yes activities align with the Paris Agreement? 18 Climate Advocacy report 2022
Macro Engagement 19 Climate Advocacy report 2022
Macro-Engagement Advocacy objectives Create the right framework conditions to In the short term: encourage rapid decarbonization across economies and geographies, carried out in a • Support momentum post-COP 26 for just and fair way. We advocate through: greater collective action on climate. • Involvement in impactful, collective calls • Advocate for regenerative food systems to action on climate. at scale to form a core focus for COP27 negotiations. • Open and objective debate on corporate climate change plans and what kind of • Engage in discussions on corporate regulatory system we need. climate target setting and disclosures. • Ramping up the ambition and identifying • Assess and act on other opportunities e.g. conditions required to achieve progress. Stockholm +50. 20 Climate Advocacy report 2022
Macro-Engagement Advocacy Energy Transition Exponential Global Future WEF Alliance We Mean Policy Advocacy Just Transition International platform & Climate Change Roadmap Initiative Council on Net- of CEO climate Business Coalition and Member Think Lab Chamber of WG Zero Transition leaders Mobilization Commerce (taskforce/ coalition) Host(s) / European Round World Economic World Economic Coalition of WBCSD UN Global Founders Table Forum Forum coalitions Compact Mission Addresses the This platform Focuses on Founded to Catalyzes We actively call Will shape Recognises the alignment triggers for takes action delivering a support an business and for policies that thought urgent need to a transition in line with framework for ambitious Paris policy action to are consistent leadership keep the global with Paris towards a low 1.5°C, with the business leaders Agreement and halve emissions with ambitious on critical temperature Agreement carbon economy mission to halve to deliver net zero; bold corporate by 2030 and action on climate sustainability increase below and achieve emissions before it will also work climate action accelerate and enable issues to prepare 1.5° Celsius and the goals of the 2030 through on a common set by setting an inclusive business-led for a net-zero, achieve net-zero Paris Climate exponential of metrics on net ambitious targets, transition to a net- solutions to scale resilient future emissions by Agreement. climate action and zero. reducing our own zero economy implementation and a more equal 2050. solutions. emissions. of the Paris society. Agreement. Advocacy Yes Yes Yes Yes Yes Yes Yes Yes activities align with the Paris Agreement? 21 Climate Advocacy report 2022
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