Report criticizes Nestlé, Pepsico and others for climate strategy gaps

A recent thorough analysis by two prominent European non-profits has scrutinized the fundamental components of the climate strategies of five major food system companies. The companies in focus – Danone, JBS, Mars, Nestlé, and PepsiCo – were examined by the NewClimate Institute and Carbon Market Watch. The researchers from these organizations, who presented their findings as part of their annual Corporate Climate Responsibility Monitor (CCRM) this week, concluded that the companies’ strategies concerning carbon removal, deforestation, animal protein, and other crucial issues “are unlikely to result in substantial, profound emission reductions within the sector.”

The significance of these findings is heightened by the fact that while JBS is often criticized for its failure to address deforestation in its beef supply chain, the other four companies are frequently lauded as sustainability frontrunners. All five companies have had their near-term and net zero emissions targets endorsed by the Science Based Targets initiative and have made significant investments in regenerative agriculture.

Despite these efforts, the CCRM team emphasized that more needs to be done to address the sector-wide changes necessary for decarbonizing food and agriculture. This includes addressing emissions from livestock, which the team highlighted as contributing to 15 percent of global anthropogenic emissions and 80 percent of methane emissions from agriculture.

While Danone has committed to reducing methane emissions from its milk supply by 30 percent by 2030, the report points out that the other companies have not set similar targets, although they acknowledge the importance of plant-based protein.

The report also critiques the role of carbon removals in the companies’ strategies. For instance, Nestlé’s approach of subtracting carbon dioxide removed by initiatives like agroforestry from its Scope 3 inventory was questioned for potentially creating a misleading sense of progress towards emission reductions. The CCRM team recommended that the SBTi require companies to establish separate goals for emissions reductions and removals to address this issue.

While the companies mentioned in the report did not provide comments, the report also touches on deforestation efforts by companies like PepsiCo and Nestlé, noting progress but cautioning against reliance on environmental attribute certificates to claim credit for avoiding deforestation without ensuring transparency in the supply chain.

Despite the criticisms, the report acknowledges progress made over the years and the shift towards more transparent practices in achieving net zero targets.