Meghan Hodges
Nestlé is the world's largest food and beverage company, with a presence in 188 countries and $103 billion in revenue (2023). The company has been named one of the top plastic polluters for several years, with Nestlé-branded plastic waste collected from across the world. The company has been accused of zero progress on reducing plastic waste and has been called out by Greenpeace for greenwashing. Nestlé has acknowledged the impact of its plastic waste but has been criticized for not acting with sufficient urgency. The company has also been criticized for its water usage, with over 36% of its water withdrawal coming from high water-stressed areas, as well as for its GHG emissions, which exceed 87.5 million metric tons of CO2e annually.
| Characteristics | Values |
|---|---|
| Plastic pollution | Ranked 4th in the Global Brand Audit Report with 4,149 plastics collected across 30 countries. |
| Ranked as one of the top three plastic polluters in 239 cleanups and brand audits in 42 countries. | |
| Ranked as the worst plastic polluter in 2017 and 2019 waste and brand audits in the Philippines. | |
| Produces over 1.5 million metric tons of single-use plastic annually. | |
| Sells non-recyclable sachets throughout Southeast Asia that end up polluting waterways and oceans. | |
| Accused of "zero progress" on reducing plastic waste. | |
| GHG emissions | Annual GHG emissions exceed 87.5 million metric tons of CO2e. |
| Water usage | Withdraws a considerable amount of water from high-water-stressed areas. |
| Withdraws 95.6 million m3 of water in 2023, with over 36% sourced from high water-stressed areas. | |
| Child labor | Involved in child labor, with thousands of children working indirectly in its cocoa supply chain in Africa and South America. |
| Human rights violations | Involved in human rights violations through its suppliers, affecting thousands of people. |
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What You'll Learn
Single-use plastic packaging
Nestlé has been identified as one of the top plastic polluters in global Brand Audits, with single-use plastic packaging being a significant contributor to this issue. The company has faced criticism for its continued use of single-use plastics and its approach to waste management.
In recent years, Nestlé has made commitments and taken some actions to address the environmental impact of its single-use plastic packaging. They have expressed intentions to reduce their use of virgin plastics and transition to food-grade recycled plastics, with a target of making 100% of their packaging recyclable or reusable by 2025. The company has also established the Nestlé Institute of Packaging Sciences to develop sustainable packaging solutions and is collaborating with various partners to improve recycling rates and infrastructure globally.
However, despite these efforts, Nestlé has been accused of greenwashing and "zero progress" in reducing plastic waste. Critics argue that the company's focus on ""plastic neutrality" programs and burning plastic waste does not address the core issue of reducing plastic production. Instead, it shifts the burden of pollution onto communities in the global south and developing nations.
To truly mitigate the environmental impact of single-use plastic packaging, Nestlé needs to go beyond recycling and target the root cause of plastic pollution. This involves a substantial reduction in the use of single-use plastics across their product lines and the implementation of reuse systems. By phasing out single-use plastics and promoting reusable alternatives, Nestlé can contribute more effectively to the global effort to curb plastic pollution and protect ecosystems and the food chain.
Additionally, Nestlé can further enhance its efforts by expanding its reuse models for packaging and products. The company has piloted reuse models in various markets across the world, and scaling up these successful pilots can significantly reduce plastic packaging waste. Moreover, by incentivizing consumers to return and recycle their packaging, such as through the Nestlé Pure Life Eco Mission in partnership with the Zeloop mobile phone app, Nestlé can promote behavioral changes that align with its sustainability goals.
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Child labour and human rights violations
Nestle, the world's largest food and beverage company, has been accused of human rights violations and child labour. With a presence in 188 countries and $103 billion in revenue (2023), the company's business model centres on providing affordable and nutritive products to billions. While this may seem positive, Nestle has come under fire for its negative impact on society and communities, particularly in the Global South.
Nestle has been unable to eliminate child and forced labour from its supply chain, with thousands of children working indirectly in its cocoa supply chain in Africa and South America. The company's vast network of suppliers and farmers, while providing jobs and support, has also been implicated in human rights abuses. For instance, some of its suppliers in Indonesia were linked to land grabbing and the prosecution of environmental and human rights defenders.
Nestle's response to these serious allegations has been deemed insufficient by activists. While the company has recognised the impact of its throwaway plastics and stated it is making meaningful progress in sustainable packaging, critics argue that this progress is too slow and lacks the urgency required to address its role in the global plastic pollution crisis.
Nestle's heavy reliance on single-use plastic packaging, especially in developing countries, has been criticised as shifting the burden of unmanageable waste onto those nations. Activists have called for an end to single-use plastics and the implementation of reuse systems, with Nestle urged to take responsibility for the over 1.5 million metric tons of such plastic it produces annually.
The company's large environmental footprint also includes the consumption and extraction of significant amounts of water from high-stress water areas, contributing to climate change. Nestle's annual GHG emissions exceed 87.5 million metric tons of CO2e, equivalent to the emissions of 22.5 coal-fired power plants in one year.
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Greenhouse gas emissions
As one of the largest food and beverage companies in the world, Nestlé's operations have a significant impact on the environment. The company has acknowledged its role in contributing to climate change and has outlined plans to reduce its greenhouse gas (GHG) emissions.
Nestlé's Net Zero Roadmap, published in 2020, outlines the company's commitment to reducing emissions across its operations, supply chains, and product portfolio. The company aims to achieve net-zero emissions by 2050, a target in line with the scientific community's recommendations to limit global warming to 1.5°C and avoid a major breakdown of the climate system.
To achieve this goal, Nestlé has identified three scopes of activities that contribute to its GHG emissions. Scope 1 emissions refer to direct emissions from the company's business operations, while Scope 2 emissions are associated with the energy purchased and used by Nestlé. Scope 3 emissions, which account for almost 95% of the company's GHG emissions, include those from dairy and livestock ingredients, representing about 37% of total emissions.
Nestlé's Dairy Climate Plan, part of its Net Zero Roadmap, aims to reduce dairy-related emissions. The company is working with suppliers and farmers to transition to regenerative agriculture practices, improve soil health, and increase carbon absorption. Nestlé also intends to grow its plant-based portfolio, which has a lower carbon footprint, and has set targets to source a larger proportion of its ingredients through regenerative agriculture.
Despite these efforts, Nestlé has been criticized for its failure to specifically target methane emissions, which account for a significant proportion of its total emissions. From 2018 to 2022, the company's GHG emissions targeted by the net-zero plan only dropped by 1%. This slow progress, combined with Nestlé's intention to grow its dairy portfolio, puts its net-zero goals at risk.
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Water extraction from high-stress areas
As the world's largest food and beverage company, Nestlé's operations have a significant environmental impact. One of the key concerns is the company's water extraction practices, particularly in high-water-stressed areas.
Nestlé's water extraction practices have come under scrutiny due to the company's significant water usage. In 2023, the company withdrew 95.6 million cubic meters of water, with over 36% sourced from high water-stressed areas. This means that Nestlé is contributing to water scarcity and potentially impacting local communities and ecosystems that rely on these water sources.
High water-stressed areas are regions where water resources are scarce and face significant pressure from human activities such as agriculture, industry, and domestic use. Extracting water from these areas can have severe environmental and social consequences. It can lead to the depletion of water sources, such as rivers, lakes, and aquifers, causing ecological damage and disrupting local communities' access to water for drinking, irrigation, and other essential needs.
Nestlé's presence in 188 countries gives it a vast global reach, and its water extraction practices have been a cause for concern in multiple regions. The company has been accused of exacerbating water scarcity and negatively impacting local ecosystems and communities that depend on sustainable water sources.
To address these concerns, Nestlé should implement more sustainable water sourcing practices. This could include investing in water treatment and recycling technologies to reduce their reliance on freshwater sources, as well as engaging in more transparent and collaborative practices with local communities and water management authorities to ensure that their water extraction practices are responsible and do not contribute to water stress in vulnerable areas.
Nestlé's commitment to providing affordable and nutritious products to billions of people should be balanced with sustainable practices that protect the environment and respect the rights of local communities, especially in high-water-stressed areas.
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Greenwashing
Nestle, one of the largest food and beverage companies in the world, has been accused of greenwashing. The company has made public commitments to reduce its environmental footprint and claims to be making progress in sustainable packaging. For instance, Nestle has set goals to reach net-zero greenhouse gas emissions by 2050, reduce plastic waste, and sustainably source ingredients like cocoa and palm oil. However, the company has been ranked as one of the worst plastic polluters in waste and brand audits.
In 2021, an annual audit identified 8,633 pieces of plastic waste with Nestle branding across 30 countries, making it the fourth-highest polluting company. Nestle has also been criticized for its questionable "plastic neutrality" agreements, where it offloads the responsibility of plastic waste management to other countries without actually reducing its plastic production. Instead of focusing on reducing plastic waste, Nestle has been accused of burning plastic waste, creating toxins harmful to people and wildlife.
Nestle has also been accused of making misleading claims about their plastic water bottles being "100% recycled" or "100% recyclable". Consumer bodies and environmental groups have issued legal complaints, arguing that the bottles are not made wholly of recycled materials and that the company is engaging in greenwashing by branding its products as more eco-friendly than they truly are.
While Nestle has made some strides in sustainable sourcing and packaging innovation, its continued environmental impact, especially in plastics, water usage, and unethical sourcing, suggests that its sustainability efforts may be more about appearing green to consumers rather than genuine environmental prioritization. Nestle's actions, such as burning plastic waste and making misleading eco-claims, indicate a form of greenwashing where marketing and optimistic future targets outpace meaningful action and immediate change.
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Frequently asked questions
Nestle has been named one of the worst plastic polluters for several years. The company has been accused of producing a lot of plastic waste, particularly single-use plastic packaging, and not doing enough to reduce it.
Nestle has been accused of producing and relying heavily on single-use plastics and non-recyclable sachets, which frequently end up in waterways and oceans, polluting the environment. The company has also been criticised for its involvement in questionable "plastic neutrality" agreements with other companies, which are seen as false solutions to the plastic waste problem.
Nestle has a significant environmental impact through its sourcing of raw materials and its consumption of water from high-stress water areas. The company also emits a large amount of GHG emissions, contributing to climate change. Additionally, Nestle has been unable to eliminate child labor and has been implicated in human rights violations through its suppliers.
