Nestle’s sustainability efforts are not top-notch. This is because the company’s sustainability report does not provide adequate information on its progress in its sustainability efforts against its goals. Nestle’s environmental sustainability report only includes information on selected companies’ sustainability initiatives. This action makes it hard to assess the company’s overall performance on sustainability. In a rating total of 10, Nestle company would get a 4 out of 10.
What I like and dislike about the company’s sustainability efforts
What I like about Nestle’s environmental sustainability efforts:
- Nestle’s environmental sustainability efforts are concise and clear towards the company’s sustainability plans, that is, clear goals and objectives which are time bound.
- The company’s sustainability efforts are committed to reducing its environmental impacts.
- Nestle reports its environmental sustainability yearly.
- Nestle has a robust environmental management system.
- They have a comprehensive environmental sustainability approach, including climate change, water stewardship, responsible packaging, and zero waste.
What I like least about Nestle’s environmental efforts includes:
- The company does not have an adequate ecological record.
- Since the company is large with a worldwide footprint, I feel that its sustainability efforts are not enough to offset its overall impact.
- Nestle has been criticized for pollution and misuse of water in the past.
- Some of Nestle’s environmental sustainability initiatives, like responsible packaging, are voluntary and not yet mandatory.
- The company has been slow to take action on environmental issues like palm oil sourcing.
Executive summary of the assessment of Nestle’s sustainability efforts
Nestle is a food manufacturing company formed in 1866 by Henry Nestle in Vevey, Switzerland, where its headquarters are up to date. The company enjoys a top position in the food and beverage production industry. The mission statement of the company, “Good Food, Good Life,” aims at providing customers with the best products in terms of great taste and nutritional value. The company’s slogan is associated with minimizing hazardous waste released into the environment and the misuse of water.
The company has an environmental protection strategy aiming to improve the quality of products offered to customers. Also, the environmental sustainability program is a tool of government compliance with manufacturing companies; hence it enhances the company’s image to the government. Nestle’s ecological sustainability efforts aim at; promoting nutrition and health in society, climate action, protecting nature, water stewardship, protecting human rights, using sustainably sourced raw materials, taking care of people and communities, practicing ethical business practices, and performing and reporting.
Nestle’s most significant initiative is its commitment to water stewardship. The company had set a target to improve water efficiency to 40% by 2030, and has achieved a 20% improvement since 2020. Additionally, the company has been working towards improving water quality in communities neighboring the company’s factories. Improvement of water quality in communities has been achieved through launching several programs to mitigate the scarcity of water and water pollution.
The company’s climate change sustainability initiative has failed. The company has concentrated too much on its water stewardship program and neglected its impacts on climate change which is vital to its operations. The company’s greenhouse emissions are very high. In the climate change environmental efforts outlined in the company’s charter, Nestle targeted the emission of greenhouse gases by the company to drop by 20% by 2020. Still, it has only achieved a 5% reduction rate.
Additionally, the company has been criticized for its palm oil sourcing practices. This is because palm oil farming is a significant player in deforestation in the tropical region of Africa. In the environmental sustainability report, Nestle had committed to sourcing only certified sustainable palm oil by 2020, but it has not made a positive effort towards the achievement of the goal. The issue of palm oil sourcing is both a climate change sustainability issue and using sustainably sourced raw materials.
The supply chain in the company needs to be improved because it’s mixed up. In the company’s environmental sustainability objectives, Nestle aimed to reduce child labor associated with cocoa supply in West Africa. The company has made some commendable efforts to reduce child labor in its supply chain, but there are some traces of the same in the cocoa supply. Additionally, the company faces criticisms for sourcing its seafood because it does not prohibit the use of forced labor in the seafood supply chain.
Nestle has achieved its aim of providing healthy and nutritious products to customers. Various studies have rated the company among the leading companies in providing nutritious and healthy products. However, there is still room for improvement in the quality of its products. In addition to providing healthy and nutritional products, the Nestle food company has also achieved a solid ethical base in its operations. The company’s operations are built on integrity and ethics to inspire the industry, collaborate with peers, and encourage consumers to make changes that help generate fair operation practices in the company.
Generally, the company has well laid out environmental sustainability efforts which have not been achieved to the maximum. Only water stewardship has been completed fully among the actions highlighted in the company’s sustainability charter. Nestle company should work on the remaining sustainability efforts like supply chain, improvement of human rights within the company’s working environment, reduction of greenhouse emissions, performance and reporting, taking care of people and communities, and protection of nature.