Climate Advocacy Disclosure 2022 - Priorities & External Engagement - Nestlé

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Climate Advocacy Disclosure 2022 - Priorities & External Engagement - Nestlé
Climate Advocacy
Disclosure 2022
Priorities & External Engagement
Climate Advocacy Disclosure 2022 - Priorities & External Engagement - Nestlé
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

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Climate Advocacy Disclosure 2022 - Priorities & External Engagement - Nestlé
Advocating for clear and fair rules

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Climate Advocacy Disclosure 2022 - Priorities & External Engagement - Nestlé
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.

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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?

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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.

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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?

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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.

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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.

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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).

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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?

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Policies to transform industries

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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.

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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?

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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

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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

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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.

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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?

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Macro Engagement

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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.

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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?

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