Nestlé Creating Shared Value and Sustainability Report 2023 PDF

Creating Shared Value and Sustainability Report 2023 Advancing regenerative food systems at scale Welcome to the Nestlé Creating Shared Value and Investing in Sustainability Report...

Creating Shared Value and Sustainability Report 2023 Advancing regenerative food systems at scale Welcome to the Nestlé Creating Shared Value and Investing in Sustainability Report 2023. Expert voices, case studies and data support detail on our approach and performance, covering the topics most material to our business and stakeholders. resilience for Read more about independent assurance of this report on page 71. sustainable Affor ored d Tail ition nutri able utr tion n Su ed n b lif a o PEOPLE, pp lanc yles tri v nu pro or ed ti growth FAMILIES tf es Im or t & PETS ers & cir Pack larity Youth & partn cu aging Nestlé CEO Mark Schneider (left) and Chairman Paul Bulcke (right) in Vevey, Switzerland. Divers lusion PEOPLE & inc PEOPLE IN ate & PLANET A message from our Chairman and CEO. demands of consumers for more sustainable fundamental to our success, and by the end of ity, e Clim COMMUNITIES qui products. These initiatives are also benefiting 2023, we had embedded the Nestlé Roadmap ty In a year of continued turbulence, our focus on communities, through increased productivity, for Employee Health across all of our markets. m H i gh an addressing societal challenges and generating as well as helping to improve livelihoods We also launched our Salient Issue Action Plans, u r a te r ts W Res po value for all our stakeholders only increased. for growers. which will support human rights, both within re sou nsible Natu sity rcing & biodiver Consumers and customers, as well as those Nestlé and across our value chain for the years throughout our supply chain, depend on us and In cocoa, the income accelerator program will to come. our products. To ensure that we can continue now be expanded from Côte d’Ivoire to Ghana, allowing us to help close the living income gap As a global food and beverage company, we Contents to deliver in the long term, we are helping make the production of food more regenerative and for a total of 30 000 cocoa-farming families. are committed to safety and quality. Last year, 2 Chairman and CEO message 46 Supporting balanced We aim to reach an estimated 160 000 cocoa- we further enhanced the safety controls in and sustainable diets are supporting farmers and their communities. 3 Our business model and progress farming families in our global cocoa supply our factories, and are deploying new digital against commitments 51 Food safety and quality chain by 2030 to create impact at scale. technologies that help us to anticipate and Regenerative agriculture is at the heart of our 4 Governance 53 Our diverse and inclusive culture Net Zero Roadmap and we remain focused prevent issues before they arise. 5 Our material topics 57 Opportunities for young people on progressing toward our 2025 and 2030 2023 has been a significant year for nutrition at 6 Stakeholder engagement 60 An employer of choice greenhouse gas emissions targets. We are Nestlé. We announced our intention to boost the We do business in a way that creates value for encouraged by the collaborative work with sales of our more nutritious products by CHF 20 all of our stakeholders. Our goal is to remain the 7 On the road to net zero 65 The foundations of ethical business farmers and suppliers to reduce our supply to 25 billion by 2030, and have stepped up our Good food, Good life company that people can 15 Restoring nature, 70 Community giving protecting biodiversity chain emissions, particularly from dairy. Helping work to help guide people towards a balanced depend on. 71 About this report growers and their families as they transition diet. This includes strengthening our responsible 18 Looking at the whole landscape 72 Statutory Non-Financial Matter marketing practices, making the nutritional 22 More regenerative practices on farms Report Index (article 964b CO) to regenerative agricultural practices is vital in this task. value of our portfolio more transparent and 26 Water stewardship 76 Child labor reporting Index providing more information about balanced 31 Responsible sourcing 77 TCFD Index Our work in coffee through the Nescafé Plan diets via digital tools. 35 Advancing human rights 79 Nestlé's 2023 Creating Shared Value and 2030 and the Nespresso AAA Sustainable 41 Packaging and circularity Sustainability key performance indicators Quality™ Program continues to meet the People are at the heart of our business. Our Paul Bulcke U. Mark Schneider employees’ health and well-being remain Chairman Chief Executive Officer Table of contents Leadership message Creating Shared Value and Sustainability Report 2023 2 Our business model and progress against commitments 2023 data for Key Performance Indicators (KPIs) on this page are EY assured. The EY limited assurance report and conclusion can be found at www.nestle.com/ Nestlé’s business model is to deliver About COMMITMENT KEY PERFORMANCE INDICATOR 2021 2022 2023 assurance-statement. exceptional products to our customers Nestlé We aim to reduce our greenhouse gas (GHG) emissions by 20% by 2025 and Net reduction of GHG emissions vs. 2018 Our Reporting Scope and – – 13.58% 50% by 2030 from 2018 levels, on the road to net zero by 2050 at the latest baseline1 (%) Methodology for ESG Key while delivering sustainability and value. 270 000 Performance Indicators document Primary supply chains for meat, palm oil, Our diverse portfolio encompasses well- Employees across pulp and paper, soy and sugar assessed as 97.2% 99.1% 97.9% provides details and definitions. It can be found here. all our operations We aim to achieve and maintain 100% assessed deforestation-free primary known brands and innovative offerings, supply chains (for meat, palm oil, pulp and paper, soy and sugar) by 2022 deforestation-free (%) Primary supply chains for cocoa and coffee allowing us to meet the ever-changing 188 and 2025 for cocoa and coffee + meat, palm oil, pulp and paper, soy and – – 93.4%2 sugar assessed as deforestation-free (%) demands of consumers. Countries we sell in 93.0 By 2025, we aim for 20% of our key ingredients to be sourced from farmers Key ingredients sourced from farmers adopting n/a 6.8% 15.2% As a global company, we are unwavering adopting regenerative agricultural practices, and 50% by 2030 regenerative agricultural practices3 (%) Billion 1. Covers emissions related to our net zero commitment. in our dedication to growing our business, Net reductions (%) of GHG emissions vs. 2018 baseline. Group sales in CHF We aim to reduce water use in our factories by 6 million m3 between Includes removals from inside our value chains and while focusing on environmental and social 2021 and 2023 Water use reduction in factories (million m3) 2.30 2.38 3.00 sourcing landscapes. Previously absolute amount of reductions and removals vs. Business As Usual was responsibility. Nestlé’s resilient and flexible used as the indicator. Therefore data are not comparable business model empowers us to navigate By 2030, we aim for 100% of key ingredient4 volumes to be between years. Key ingredients Responsibly Sourced (%) 16.3% 22%6 36.2% 2. Cocoa and coffee only included in 2023. market challenges, seize opportunities and Responsibly Sourced 5 3. In 2023, the following ingredients are included in the achieve sustainable growth. Please refer to numerator: dairy (fresh milk and dairy derivatives), coffee Number of servings of affordable nutrition (excluding blended green coffee and blue bottle), cocoa, the 'Our business' section of this year’s Nestlé 128.47 129.2 127.6 cereals and grains, soy and vegetables. The denominator with micronutrient fortification (MNF) (billions) includes all raw materials in scope: coffee, cocoa, dairy, Annual Review for more detail on this topic. sugar, cereals and grains, meat, poultry and eggs, palm oil, soy, vegetables, fish and seafood. By 2025, we aim to design above 95% of our plastic packaging for recycling Plastic packaging designed for recycling (%) 74.9% 81.9% 83.5% 4. 'Key ingredients' refers to 14 key agricultural raw materials and continue to work toward 100% being recyclable or reusable that cover 95% of our annual sourcing by volume: cereals Categories and markets and grains; cocoa; coconut; coffee; dairy; fish and seafood; hazelnuts; meat, poultry and eggs; palm oil; pulp We make and sell products in: Powdered and By 2025, we aim to reduce virgin plastics by one third, versus our Virgin plastic reduction versus 2018 and paper; soy; spices; sugar; and vegetables. 8.1% 10.5% 14.9% 2018 baseline baseline (%) 5. Name of commitment has changed in 2023. Please refer Liquid Beverages, PetCare, Nutrition and Health to page 32 for more information. Science, Prepared dishes and cooking aids, By 2030, our ambition is to help 10 million young people around the world Millions of young people around the world 6. Change in definition means only 2022 year-on-year data are comparable with 2023 performance. Milk products and ice cream, Confectionery with access to economic opportunities 3.8 5.6 7.78 have access to economic opportunities 7. Number corrected to adjust for some products that since 2017 and Water. were reclassified. 8. KPI methodology was updated in 2023 to account for YOUth Entrepreneurship Platform data. Management positions held by women (%) – – 46.4%9 Our business operates in five zones: North 9. The definition of this KPI changed in the current year from 'women in the top 200+ senior executive positions (%)'. America (NA), Europe (EUR), Asia, Oceania Informed by the materiality assessment conducted for our business model (see page 5), the table above summarizes the strategies for the identified material and Africa including Middle East (AOA), Latin topics and the leading key performance indicators that show the effectiveness of the measures behind those strategies. America (LATAM) and Greater China (GC). The full set of sustainability key performance indicators is listed on pages 79–89. Table of contents Our business model and progress against commitments Creating Shared Value and Sustainability Report 2023 3 Governance Our governance and implementation structure Sound governance is essential micronutrients, the reduction of During 2023, the Council met BOARD OF DIRECTORS BOARD COMMITTEES greenhouse gas (GHG) emissions, 12 times. There was a particular to create shared value, meet plastic packaging designed for focus on how the Nestlé brands were The Board is responsible for the Company’s strategy and Sustainability Audit organization and provides oversight over its financial Committee (SC) Committee (AC) our environmental and recycling, the reduction of water delivering on the ESG & Sustainability and non-financial performance and reporting. The Board The SC has oversight over The AC has oversight use in factories, and management Strategy and valorizing it through social commitments and positions held by women. Also in brand communication. The Council approves the Company's ESG & Sustainability Strategy and approves its CSV and Sustainability Report for the structure and content of the Company’s ESG & over the accuracy of the Company’s financial and fulfill our due diligence and 2023, an ESG-related KPI was added also oversaw the implementation submission to the Annual General Meeting. Sustainability reporting and ESG & Sustainability as a fourth performance metric in of the new reporting obligations, validates that the overall reporting. reporting obligations. the Long-Term Incentive Plan for including Swiss Non-Financial approach is in line with the Company’s strategy. Nestlé’s ESG & Sustainability Strategy 20% of its grant value. It relates to Reporting Obligations (articles 964a is key to our decision-making. To the reduction of GHG emissions. Full to 964c and articles 964j to 964l of ensure we meet our aim of long- details of Board-level remuneration the Swiss Code of Obligations) which term, sustainable value creation, the and bonuses are available in our require specific disclosures on ESG EXECUTIVE BOARD strategy is developed and delivered Compensation Report. risks, policies, mitigation measures and outcomes, summarized in the The Company’s Executive Board is responsible for CREATING SHARED VALUE (CSV) COUNCIL by our Executive Board and is the execution of the Company’s ESG & Sustainability The ESG & Sustainability Council appendix of this report. The CSV Council is an external advisory body approved and regularly reviewed Strategy, which includes ensuring compliance with provides strategic leadership and mandatory reporting obligations. that advises senior management on a range of by the Board of Directors and its drives the implementation of Nestlé’s We monitor our ESG & Sustainability sustainability issues. Sustainability Committee. The ESG & Sustainability Strategy. The Strategy performance KPIs using an Sustainability Committee Charter can Council is chaired by our Executive internal dashboard. For the full list be viewed here. Vice President (EVP), Head of Strategic of KPIs, see pages 79 to 89 in the Business Units and Marketing and appendix of this report. ESG & SUSTAINABILITY COUNCIL The Board of Directors approved the 2023 Nestlé Creating Shared Sales. The Council addresses the The ESG & Sustainability Council provides strategic following topics: 2050 net zero, Performance data are generated leadership and execution support, and drives the Value and Sustainability Report to be Sustainable Packaging, Water, every quarter and progress is implementation of Nestlé’s ESG & Sustainability issued on February 22, 2024, subject Strategy, including our 2050 Net Zero Roadmap, Responsible Sourcing, Upstream reviewed by the ESG & Sustainability to approval at the Annual General ensuring focus and alignment. Human Rights, Communications, Council. For full details of our Meeting on April 18, 2024. Advocacy, and Systems and Reporting. governance structure, see our latest Scope: Executive Board remuneration is The Council meets every month and Corporate Governance Report. – 2050 net zero linked to ESG indicators. In 2021, regularly reports to the full Executive – Sustainable Packaging – Water we introduced ESG-related key Board. The structure helps to – Responsible Sourcing Key: performance indicators (KPIs) to accelerate and standardize decision- – Upstream Human Rights the Short-Term Incentive Plan for making on a global level. – Communications Approves 15% of its grant value. In 2023, they – Advocacy Reports relate to affordable nutrition with – Systems and Reporting Advises Table of contents Governance Creating Shared Value and Sustainability Report 2023 4 Our material topics Evaluating our material topics Report chapters covering topics 10 Health & nutrition 5 Water management Environmental & social Governance Major 6 1 4 Ecological impacts impacts of ingredient 3 GHG emissions supply chain Stakeholder engagement 9 13 Product quality & safety On the road to net zero 2 3 Nestlé employs a comprehensive Our approach Managing risks Restoring nature, protecting biodiversity and systematic approach to 2 3 4 Overseen by the ESG & Sustainability In addition to the materiality 14 Circular economy 17 Employee health Looking at the Council, we update our materiality assessment, a risk assessment at identify its most material topics & safety 8 Human rights & whole landscape 2 3 4 Significant labor practices assessment every two years. The last Group level is conducted annually. 2 Physical impacts of More regenerative in ESG & Sustainability. climate change 18 Employee acquisition, 15 Packaging lifecycle assessment was conducted in 2022. ESG & Sustainability topics are built talent management management practices on farms 2 3 4 Impact of Nestlé on people and the environment 11 Access & affordability & retention Our due diligence approach included into our Enterprise Risk Management 12 Product labeling & Water stewardship 4 5 16 Employee engagement, working with an independent third process. This helps to ensure that marketing diversity & inclusion Responsible sourcing 6 7 Materiality’s value party to conduct desk research the full range of material topics Advancing human rights 6 8 We regularly conduct a materiality and interviews with 55 internal is incorporated into the risks and Packaging and circularity 14 15 assessment to identify where and external stakeholders. The opportunities that are considered Supporting balanced Moderate Nestlé's business model has the results, published in last year’s across the Company. Risks relating 7 Animal welfare 19 Business ethics and sustainable diets 10 11 12 9 Community relations greatest impact on society and the Nestlé Creating Shared Value and to the environmental and social Food safety and quality 13 environment, and which impacts Sustainability Report, informed how impacts of the supply chain, including Our diverse and we managed the business in 2023. exposure to human rights risks, are inclusive culture 16 are most important to our business reviewed at Group management level. Opportunities success. The assessment helps to for young people 18 prioritize actions that maximize value In 2023, we updated our materiality matrix to focus on ESG topics only, in There is also a detailed supplier An employer of choice 16 17 18 Negligible creation for shareholders and cultivate 1 Governance structures 20 Data privacy line with the contents of this report. risk and due diligence program, & mechanisms management The foundations positive societal and environmental of ethical business 19 20 impacts. Although our priorities may We summarize the related risks and conducted by the Global Procurement Community giving 9 not change greatly from year to year, opportunities for stakeholders and function. If required, cases relating Negligible Moderate Significant Major we evaluate each topic to inform the environment. to our risk assessment processes are escalated to the Executive Board Importance and impact on Nestlé’s business success strategic decision-making. Other non-ESG related topics of and related findings are reflected particular stakeholder interest are in decision-making processes at an addressed in the Nestlé Annual operational and strategic level. Review. These include customer Our materiality process satisfaction, systematic and Further information on business critical risk management of the risks related to our different material Material Establish Stakeholder Materiality Review Publish in legal and regulatory environment, topics is included in the 2023 Nestlé topics selection external context engagement assessment​ strategies CSV and changing consumption patterns, Annual Review, under Principal Risks Sustainability business models and innovation and Uncertainties. Report and technology, cybersecurity Sustainability AI software analysis and 55 interviews conducted Quantitative Identify risks and Share results internally and information security, and Accounting Standards analysis of environment and surveys collected and qualitative opportunities in and externally organizational set-up and efficiency. Board (SASB) aligned input assessed results and adjust material topics selected priorities accordingly Table of contents Our material topics Creating Shared Value and Sustainability Report 2023 5 Stakeholder 2023 stakeholders and activity examples engagement In a fast-evolving global context, 2023 engagements included: Global partnerships: – Refocused our partnership with IFRC, with Climate: we exchange relevant ESG – Published the Nestlé Climate Advocacy a five-year strategic partnership for the Disaster Response Emergency Fund. information and communicate Industry Associations Review. – Provided ongoing support to the – Renewed our annual partnership with World announcements with a broad International Chamber of Commerce, Business for Nature and the World Business Central Kitchen. – Established a new UNESCO partnership range of stakeholders, across a Council for Sustainable Development in to support young people to contribute to Regular interactions with our many wide range of channels: calling for strong action by policymakers to their communities. safeguard natural resources. – Nestlé and The Global FoodBanking Network stakeholders help us perform better as – Supported efforts to place food systems signed a Memorandum of Understanding to Consumers: social media, brand a company. at the heart of climate action, backing the COP28 Action Agenda on Regenerative work on the goal of reducing global food loss and waste while working to eliminate hunger campaigns, transparent information. Landscapes and the Emirates Declaration in communities around the world. To assess our impacts on the identified on Resilient Food Systems, Sustainable Customers: regular meetings, ESG material topics, we engage with our Agriculture and Climate Action. Nutrition: communications, topical events. stakeholders at a local, regional, national – Partnered with key suppliers to commit to – Publication of Good for You, our new climate change mitigation. Nutrition Strategy. and international level. We apply the Nestlé Investors and analysts: meetings, – Shared guidance on regenerative agriculture – Committee on World Food Security: Corporate Business Principle of ‘transparent investor days, analyst calls. techniques such as improved grazing Three presentations as well as discussions interaction and communication’ in every patterns and tree planting. with governments and key stakeholders to engagement. This approach encourages Industry associations: regular advance our advocacy priorities. collaboration, knowledge sharing, open Social: – Participated in the UN Food Systems engagements across ESG topics. Summit+2 Stocktaking Moment. discussion and deep dialogue. We run projects, – Established a new UNESCO partnership for youth projects. release publications and host campaigns and Governments, international Farmers, local – Grew the Nestlé Cocoa Plan income Packaging: events that we believe will help address any communities and young people are organizations, NGOs: discussions, accelerator program to reach 10 000 cocoa – Co-chaired the Business Coalition for a risks related to the material topics and advance among our key events, conferences. farming families. Global Plastics Treaty. stakeholders. regenerative food systems at scale. – Launched Salient Issue Action Plans for – Developed the Fair Circularity Initiative with Global partnerships: joint initiatives Human Rights. the private sector and non-governmental – Nestlé Youth delegation attended the organizations, ensuring regulatory compliance Throughout the year, we consult regularly on key topics, hosting of events. During 2023, we also engaged with our World Food Forum to showcase work and topical thought leadership on human with our Creating Shared Value (CSV) Council, on innovation. rights issues across the full packaging stakeholders to demonstrate progress on key an advisory group established in 2009. The Suppliers: programs, guidance, – Implemented the Nescafé Plan 2030, lifecycle, mitigating reputational risk. items related to: CSV Council’s agenda is defined by Nestlé’s collaborative roadmaps, support. continued to offer farmers close agronomy – Hosted '3 Horizons' facilitator training with support and worked directly with them on 50 key stakeholders and Nestlé employees commitments and activities to advance – Coffee: Nescafé Plan 2030 Progress Report, regenerative food systems. This includes, but is Academia and science: symposia, various pilot projects. to advance collective thinking on waste Nespresso The 2030 Positive Cup Strategy management and packaging system futures. not limited to, issues that impact the business collaboration with institutions. and Nespresso The Positive Cup 2022 Transparency: – Continued partnerships with customers and related to climate, nature (forests, land and Progress Report. – Engaged with the investment community startups such as Circulation in Germany to Farmers, youth, communities: build new scalable systems across reuse agriculture), packaging, circular economy, water, – Cocoa: Nestlé Cocoa Plan Income Accelerator through our Annual General Meeting and grower programs for commodities. regular investor meetings and analyst calls. and refill. human rights, nutrition and social matters. Progress Report, Towards Forest Positive – Held five in-person Chairman’s roundtables The topics in 2023 included progress on our Cocoa Annual Progress Report 2023, Nestlé Ratings: and engaged with investors throughout approach to nutrition, the implementation of our Cocoa Plan Annual Progress Report 2022. – #1 on Nature, World the year. climate roadmap and water management. – Nutrition: Good for You strategy. Benchmarking Alliance. – Published the 2022 CSV and Sustainability Report. – #2 on Food and Agriculture, World Benchmarking Alliance. – FTSE4Good: 4.4. Table of contents Stakeholder engagement Creating Shared Value and Sustainability Report 2023 6 On the road To track our progress, we put in place the following KPIs: Nestlé GHG emissions*, GHG removals and % net reduction vs. 2018 baseline to net zero (million tonnes of CO2e) 100 Peak carbon 90 91.17** 13.58% 2018 baseline 79.55 Net GHG emissions GHG emissions* vs. 2018 baseline*** 80 0.76 78.79 GHG removals Net GHG 70 emissions** 60 Net Zero Roadmap launched 50 2018 2019 2020 2021 2022 2023 * Includes Scopes 1, 2 and 3 covered by the Net Zero Roadmap. ** Restated baseline due to acquisitions, divestitures and methodological enhancements. *** Net reduction (in %) includes GHG reductions and GHG removals from projects within our value chain and our sourcing landscapes. 2023 absolute CO2e reductions and removals from our interventions Sustainable (million tonnes) Development Goals (SDG) contributions Removals 6% Responsible Sourcing 28% Recipe reformulation 6% Logistics 4% Packaging 7% 13.29 Our science-based approach At the end of 2023, we: – Achieved a reduction in emissions of 12.75% vs. 2018 baseline. With million tonnes to net zero is designed to removals, a 13.58% net reduction vs. 2018. Manufacturing 15% – Are more than halfway to our 2025 Net Zero Roadmap target of 20% mitigate emissions across our absolute emissions reductions against a 2018 baseline. value chain and help address – Identified over 80% of the supply chain initiatives needed to hit this objective. Sourcing – Soil & Forest 9% Sourcing – Dairy & Livestock 25% impacts on natural ecosystems, – Are planning further GHG emissions reductions to reach a 50% cut in absolute terms across our net zero scope by 2030. communities and food systems. Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions and can be found here. Table of contents On the road to net zero Creating Shared Value and Sustainability Report 2023 7 Total Scope 1, 2 and 3 GHG emissions Approach (million tonnes of CO₂e) In 2020, we published the Nestlé Net Zero 103.58* 2018 baseline: Roadmap (see the latest report here) to set out 97.80* In scope for Net 98.75 how we plan to meet our net zero commitment 93.79 Zero Roadmap 87.54 by 2050. Guided by the Roadmap, we have been 84.08 transforming our business to deliver reductions in GHG emissions across all three Scopes of our 79.55** activities, according to the criteria approved by million tonnes the Science Based Targets initiative (SBTi). 93.29** 88.42** A detailed analysis of our GHG emissions, carried out when setting our 2018 baseline, showed that nearly 95% of our footprint was 1.44 0.74 0.31 made up of Scope 3 emissions in our supply 3.38 3.27 3.16 chain, such as from farming and land use. Dairy 2021 2022 2023 67% Sourcing our ingredients ingredients are our largest single source of and finished goods Scope 1 (emitted directly) emissions, accounting for 24% of our total. 5% Manufacturing our products Scope 2 (emitted indirectly market-based) 12% Packaging our products To tackle our Scope 3 emissions we have Scope 3 (in scope for Net Zero Roadmap) developed the Nestlé Forest Positive Strategy 7% Managing logistics Scope 3 (not in scope for Net Zero Roadmap) and the Nestlé Agriculture Framework. We also 9% Overheads and others reduce the carbon emissions associated with our * Restated due to acquisitions, divestitures, emissions factor restatements and adjusted scope. logistics activities and continue to collaborate Context ** Footprint in scope for Net Zero. Nestlé initiatives, such as the Nescafé Plan, with suppliers, farmers and communities to Renewable electricity at our manufacturing place farmers In 2023, the impacts of climate change increase the use of regenerative agricultural As indicated in the graphs above, 90% of sites at year end (%), with a target of 100% by 2025 at the center, continued to affect more people and ecosystems Nestlé total emissions (87.54 million tonnes) providing practices. We are delivering Nestlé’s Net Zero technical support. are in scope of Net Zero (79.55 million tonnes). around the world, notably through extreme Roadmap through emissions reductions and 91.9% in 2023 We are following SBTi guidelines, restating weather events. Each business has to play its in-value chain removals. We do not use offsets/ 78.4% in 2022 our 2018 baseline and excluding the part to mitigate risks for people and the planet. voluntary market credits to deliver against our following Scope 3 emissions from our net 63.7% in 2021 zero commitment: direct use-phase of sold Nestlé accelerated performance during 2023, SBTi-approved targets. products, purchased services, leased assets, achieving a 13.58% GHG emissions reduction capital goods and investments, totaling relative to the 2018 baseline**. Climate change Just 5% of our baseline emissions were Scopes 7.99 million tonnes CO2e. is considered to bring material risks and 1 and 2, from our own operations. For these, our As per GHG Protocol guidance, the reporting opportunities for Nestlé. We use the Task Force primary strategy is to reduce GHG emissions of the emissions related to the indirect use- by increasing energy efficiency and also by 91.9% phase of our sold products is optional and on Climate-Related Financial Disclosures (TCFD) methodology to assess and disclose our climate transitioning to renewable energy sources. in 2023 should be disclosed separately from Scopes 1, 2 and 3 reporting. For Nestlé this represented risks and opportunities. These are covered in 8.8 million tonnes CO2e in 2023. this chapter and summarized in the appendix of Nestlé has approved near- and long-term this report. For more on business risks, please science-based emissions reduction targets