Nestle’s sustainability report 2025 highlights progress across climate action, sourcing, packaging, and social impact, while also revealing gaps in areas such as plastics and deforestation. The company continues to align business growth with environmental and social priorities under its “Creating Shared Value” strategy.
Climate and emissions targets achieved with strong overdelivery
Nestle, as part of its sustainability goals, had set a 2025 target of around 20 percent reduction in greenhouse gas emissions compared to its 2018 baseline, as part of its pathway toward a 50 percent reduction by 2030 and net zero by 2050.
In 2025, Nestle achieved a 20.38 percent reduction in GHG emissions versus 2018, while also reporting a 24.52 percent absolute reduction in net emissions compared to the same baseline. This indicates that the company not only met but exceeded its interim climate target.
This progress was supported by a rapid transition toward clean energy, with renewable electricity reaching 98.6 percent across its global manufacturing footprint and owned distribution centers. Nestle expects to achieve 100 percent renewable electricity by 2026. Financially, the company maintained momentum with 3.5 percent organic sales growth, 0.8 percent real internal growth, and a trading operating profit margin of 16.1 percent, demonstrating that emissions reduction is being achieved alongside business expansion.
Industrial decarbonization driving operational efficiency
Nestle’s climate strategy is supported by deep operational changes, including electrification of industrial processes, expansion of power purchase agreements, and the use of internal carbon pricing to guide investment decisions. In 2025, 60.3 percent of its global vehicle fleet had transitioned to lower-emission alternatives such as electric and hybrid vehicles.
At the same time, 92 percent of its manufacturing sites achieved zero waste to landfill status, contributing to an 18 percent reduction in manufacturing waste. Water stewardship also improved, with total water withdrawal reduced by 2.9 million cubic meters, including 2.0 million cubic meters saved in high water-stress regions. These operational improvements reinforce the company’s broader decarbonization roadmap.
Deforestation-free supply chains nearing completion
Nestle had targeted 100 percent deforestation-free sourcing across key commodities including palm oil, soy, cocoa, coffee, sugar, and meat by 2025. The company reported that 93.5 percent of its supply chains are deforestation-free under its core KPI framework, while advanced monitoring systems show 96.7 percent compliance.
Efforts to strengthen ecosystem resilience included planting 15 million trees and restoring 120,000 hectares of degraded land. While progress is significant, the company has not yet reached its full 100 percent target, indicating the need for continued supply chain engagement and verification.
Regenerative agriculture scaling but still developing
Nestle is advancing regenerative agriculture as a core lever to reduce Scope 3 emissions. In 2025, 20.38 percent of key ingredients were sourced through regenerative practices based on core KPI reporting, while broader disclosures indicate that 27.6 percent of sourcing involved farmers adopting these methods.
The impact of these initiatives is visible in commodity-level emissions reductions, with cocoa-related emissions declining by 46.5 percent and fresh milk emissions falling by 37.8 percent compared to 2018. Despite this progress, regenerative agriculture remains an evolving area that will be critical for achieving 2030 targets.
Plastic reduction and packaging circularity show mixed progress
Nestle aimed to reduce virgin plastic use by about one-third, or roughly 33 percent, compared to its 2018 baseline by 2025. The company reported a 21.3 percent reduction under its core KPI framework, while broader disclosures suggest a 28 percent reduction. Although this indicates progress, the company remains behind its stated target.
To accelerate change, Nestle has committed 1.5 billion CHF to support the development of food-grade recycled plastics. At the same time, 87.5 percent of its plastic packaging is now designed for recycling, reflecting ongoing improvements in material innovation and circular design.
Gender diversity approaches parity in leadership
Nestle has made significant progress in advancing gender diversity within its leadership structure. In 2025, women held 47.4 percent of management roles under core KPI reporting, while extended disclosures indicate a slightly higher figure of 48.2 percent. This places the company close to gender parity and highlights strong performance in diversity and inclusion.
Social impact and youth employment exceed targets
Nestle has already exceeded its long-term target of supporting 10 million young people globally by 2030, reaching 10.2 million since 2017. The company has also expanded its Income Accelerator Program to 160,000 farming households, with 45 percent of its assessed supply base moving toward living income standards. These achievements demonstrate significant progress in social sustainability and value chain equity.
Nutrition impact continues at global scale
Nestle continues to expand access to affordable nutrition, delivering 132 billion servings of fortified food based on core KPI reporting, while extended disclosures indicate a total of 135.4 billion servings in 2025. This underscores the scale of the company’s contribution to global nutrition and health.
Overall sustainability performance shows strong climate delivery but remaining gaps
Nestle’s 2025 sustainability performance reflects strong execution in climate action and social impact, particularly with emissions reductions of 20.38 percent and 24.52 percent and renewable energy adoption reaching 98.6 percent. At the same time, progress in areas such as virgin plastic reduction at 21.3 percent and deforestation-free sourcing at 93.5 percent shows that further acceleration is required.
FASNA SHABEER
