NESTLE

NESTLE
Environment:
 Reduced greenhouse gas emissions below 2018 baseline, on track for net-
zero by 2050.
 Reduced water use by 3.4 million m3 in 2022, aiming for 6 million m3
reduction by 2023.
 Achieved 99.5% deforestation-free sourcing for key commodities.
 Investing in regenerative agriculture practices.
Social:
 Delivered 130 billion servings of affordable, fortified food in 2022.

 Supported discussions on UN treaties for plastic pollution, climate
change, biodiversity, and water.
 Benchmarked global product portfolio against Health Star Rating system, with
60% of sales (excluding pet care) coming from HSR 3.5+ products or
specialized nutrition.
Governance:
 Strong corporate governance practices, including board diversity and

commitment to transparency.
 Linked executive compensation to ESG performance.
 Continued to invest in research and development for sustainable solutions.
DRAWBACKS
Limited scope and methodology:
 The report focuses on Nestle's own operations and sourcing, but doesn't
comprehensively address the broader environmental and social impacts of its
products throughout their lifecycle, including consumer waste and packaging.
 The methodology for certain metrics, like water usage or deforestation-free
sourcing, might not be sufficiently robust or independently verified, raising
questions about their accuracy and comparability.
Overemphasis on self-reported progress:

 The report heavily relies on Nestle's own data and targets, without
incorporating much independent evaluation or critical analysis of its claims
and achievements.
 This raises concerns about potential greenwashing and a lack of transparency
in certain areas.
Ambitious goals versus concrete action plans:
 Nestle sets ambitious goals for reducing emissions, water use, and
deforestation, but the report often lacks clear details about specific action
plans and milestones for achieving them.
 This makes it difficult to assess the feasibility and credibility of these goals
and hold Nestle accountable for progress.
Addressing complex challenges requires deeper engagement:
 Issues like regenerative agriculture and farmer support are complex and
require collaboration with diverse stakeholders. The report doesn't delve deep
into Nestle's engagement with these stakeholders or potential challenges
faced in implementing these initiatives.
 This raises questions about the effectiveness and scalability of Nestle's
approach.
Social impact beyond just nutrition:
 While Nestle highlights its efforts in providing affordable, fortified food, the
report doesn't adequately address other social impacts of its products, such
as labor practices in its supply chain or marketing tactics targeting unhealthy
foods to children.
 This suggests a potentially limited understanding of its broader social
responsibility.
BRSR Recommendations for Nestle
 Expand scope beyond own operations: Conduct comprehensive human rights

due diligence across the entire value chain, including
sourcing, processing, distribution, and end-of-life stages.
 Strengthen independent verification: Partner with credible third-party
organizations to verify key metrics and ensure transparency in reporting
progress.
 Move beyond self-reporting: Engage with independent human rights experts
and affected communities to assess the effectiveness of Nestle's human
rights due diligence efforts.
 Develop concrete action plans: Translate ambitious goals into actionable
steps with clear timelines and measurable milestones for achieving human
rights improvements.
 Deepen stakeholder engagement: Proactively engage with diverse
stakeholders, including human rights defenders, NGOs, and affected
communities, to address concerns and collaborate on solutions.
 Broaden social impact focus: Acknowledge and address the full spectrum of
social impacts beyond just nutrition, including labor practices, marketing
ethics, and product responsibility.
Advantages
Positive progress:
 Environmental: Significant reductions in greenhouse gas emissions and water

usage, with ambitious goals to achieve net-zero emissions and deforestation-
free supply chains.
 Social: Providing affordable, fortified food to billions, supporting environmental
and social initiatives, and improving product nutrition profiles.
 Governance: Strong corporate governance practices, board diversity, and
commitment to transparency with ESG-linked executive compensation.
Transparency and communication:
 Detailed reporting on key ESG metrics and initiatives, allowing stakeholders to

understand Nestle's efforts and hold them accountable.
 Openness to stakeholder engagement, demonstrating willingness to learn and
improve.
Collaborative approach:
 Investing in regenerative agriculture practices and working with farmers to

improve agricultural practices and sustainability.
 Engaging with diverse stakeholders on critical issues like plastic pollution and
climate change.
Long-term vision:
 Commitment to creating shared value for all stakeholders, not just
shareholders, demonstrating a focus on sustainability beyond short-term
profits.
 Setting ambitious goals and investing in research and development for long-
term solutions.
Disadvantages
Limited scope and methodology:
 Focus on own operations while neglecting broader environmental and social

impacts like consumer waste and packaging.
 Potential lack of robustness and independent verification in some
metrics, raising questions about accuracy and comparability.
Overemphasis on self-reported progress:
 Reliance on own data and targets without much independent

evaluation, raising concerns about greenwashing and potential lack of
transparency.
 Not adequately addressing complex challenges like farmer support and labor
practices throughout the supply chain.
Ambitious goals versus concrete action plans:
 Lack of clear details on specific actions and milestones for achieving

ambitious goals, making it difficult to assess feasibility and credibility.
 Not addressing social impacts beyond just nutrition, such as marketing tactics
targeting unhealthy foods to children.
Lack of critical self-reflection:
 Not acknowledging potential shortcomings or areas for

improvement, hindering continuous progress and engagement with
stakeholders.
 Not addressing BHRRC concerns about human rights due diligence across
the entire value chain.

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NESTLE

 Delivered 130 billion servings of affordable, fortified food in 2022.

 Strong corporate governance practices, including board diversity and

Limited scope and methodology:

Overemphasis on self-reported progress:

Ambitious goals versus concrete action plans:

Addressing complex challenges requires deeper engagement:

Social impact beyond just nutrition:

BRSR Recommendations for Nestle

 Expand scope beyond own operations: Conduct comprehensive human rights

 Environmental: Significant reductions in greenhouse gas emissions and water

Transparency and communication:

 Detailed reporting on key ESG metrics and initiatives, allowing stakeholders to

 Investing in regenerative agriculture practices and working with farmers to

 Focus on own operations while neglecting broader environmental and social

Overemphasis on self-reported progress:

 Reliance on own data and targets without much independent

Ambitious goals versus concrete action plans:

 Lack of clear details on specific actions and milestones for achieving

Lack of critical self-reflection:

 Not acknowledging potential shortcomings or areas for

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