In September Nestlé officially inaugurated the Institute of Packaging Sciences, the first-of-its-kind in the food industry. The new Institute enables Nestlé to accelerate its efforts to bring functional, safe and environmentally friendly packaging solutions to the market and to address the global challenge of plastic packaging waste.   

Speaking at the inauguration, Mark Schneider, Nestlé CEO, said, “Our vision is a world in which none of our packaging ends up in landfill or as litter. To achieve this we introduce reusable packaging solutions and pioneer environmentally friendly packaging materials. Furthermore, we support the development of local recycling infrastructure and deposit schemes to help shape a waste-free world. The Nestlé Institute of Packaging Sciences enables us to create a strong pipeline of sustainable packaging solutions for Nestlé products across businesses and markets.”

The Nestlé Institute of Packaging Sciences focuses on a number of science and technology areas, such as refillable or reusable packaging, simplified packaging materials, recycled packaging materials, high-performance barrier papers as well as bio-based, compostable and biodegradable materials.

Stefan Palzer, Nestlé CTO said, “Reducing plastic waste and mitigating climate change effects through cutting-edge technology and product design are a priority for us. Nestlé experts are co-developing and testing new environmentally friendly packaging materials and systems together with our development centers, suppliers, research institutions and start-ups. Located at our Nestlé Research facilities in Lausanne, Switzerland, the Institute also leverages our existing research capabilities in food safety, analytics and food science.”

Commenting on the inauguration, Sander Defruyt, New Plastics Economy Lead at the Ellen MacArthur Foundation, said: “Nestlé was one of the first companies to sign the  New Plastics Economy Global Commitment, setting concrete targets to eliminate plastic waste and pollution at the source. It is great to see the world’s largest consumer goods company now increasing its research focus and capacity to deliver on these ambitions.”

Nestlé is already making progress towards its  2025 packaging commitments, and has launched novel packaging solutions. For example, Nestlé packaging experts and suppliers developed products in recyclable paper packaging such as the  Nesquik All Natural cocoa powder and the YES! snack bars in under 12 months.

In September Nestlé announced its ambition to achieve zero net greenhouse gas emissions by 2050. It embraces the most ambitious aim of the Paris Agreement, to limit global temperature rise to 1.5°C. Ahead of the U.N. Secretary-General’s Climate Action Summit this month, Nestlé will sign the ‘Business Ambition for 1.5°C’ pledge.

With this announcement Nestlé is accelerating its climate change efforts. This builds on a decade of work to reduce greenhouse gas emissions. Over the past four years, Nestlé has aligned its objectives with science-based targets to keep the temperature increase below 2°C. The company is determined to play a leading role in tackling climate change. Over the next two years, it will lay out a time-bound plan including interim targets consistent with the 1.5°C path. Nestlé will review its progress annually to ensure it is on track.

“Climate change is one of the biggest threats we face as a society. It is also one of the greatest risks to the future of our business,” said Mark Schneider, Nestlé CEO. “We are running out of time to avoid the worst effects of global warming. That is why we are setting a bolder ambition to reach a net-zero future. Deploying Nestlé’s global resources and industry know-how, we know we can make a difference at significant scale. Our journey to net zero has already started. Now, we are accelerating our efforts,” he added.

To achieve its 2050 ambition, some of the company’s specific actions include:

• Speeding up the transformation of its products in line with consumer trends and choices. Nestlé will launch more products that have a better environmental footprint and contribute to a balanced diet. This includes more plant-based food and beverage options. Nestlé will also look to reformulate its products using more climate-friendly ingredients. Consumer demand for such products is rapidly increasing, and Nestlé’s core strategy is in line with this shift. The company is also moving to alternative packaging materials.

• Scaling up initiatives in agriculture to absorb more carbon. Nestlé will strengthen its programs with farmers to restore land and limit greenhouse gas emissions. This includes improved management of its dairy supply chain. Nestlé will step up efforts to protect forests by replanting trees and enhancing biodiversity. All of these initiatives will help build resilient agricultural communities.

• Using 100% renewable electricity in Nestlé factories, warehouses, logistics and offices. A third of Nestlé factories (143) are already using 100% renewable electricity. Nestlé will continue to increase the use of energy from renewable sources. This will enable suppliers to invest in new infrastructure such as wind and solar farms.

Limiting global warming to 1.5°C requires transformational change across industries, governments and society as a whole. Nestlé will continue its advocacy for government policies to ensure all sectors move faster towards 1.5°C. Supportive legislation could help to reduce barriers to expanding renewable energy markets, incentivize innovation in the agriculture and forestry sectors to capture more carbon, and help to establish carbon pricing.

Magdi Batato, Executive Vice President, Head of Operations at Nestlé said: “To align our goals to the 1.5°C pathway, we are transforming our operations. This will lead to a major shift in the way our ingredients are produced and sourced. We will need our suppliers to embark on this journey with us. The task is huge but we are determined to make it happen.” 

Nestlé’s 2050 ambition adds to its ongoing work to reduce greenhouse gas emissions across its value chain. The company is making its distribution networks and warehouses more efficient by optimizing routes to reduce fuel consumption and to lower carbon emissions. In the company’s top 100 distribution centers, greenhouse gas emissions have decreased by close to 40% over the past four years. Nestlé has intensified its activities to ensure the responsible sourcing of its raw materials and it has made significant progress toward its zero deforestation goal. Since 2014, the reduction of greenhouse gas emissions across its entire value chain is equivalent to taking 1.2 million cars off the road.

The Tisza and the Tisza Lake have astonishing natural assets beloved by many Hungarian and foreign tourists as a holiday resort and fishing spot. However, a large amount of driftwood, organic material and communal waste are washed down here most of them originating from Ukraine and Romania. The Kisköre Dam is the first facility in the Hungarian section of the river which can stop the flood of waste thus protecting the lower sections.

This problem needs joint efforts to be tackled effectively. Water management authorities, civilian and industry players – the National Directorate General for Water Management, Plastic Cup and Coca‑Cola Hungary – announced jointly in the summer of 2019 that they were prepared to manage the challenge collectively.

Plastic Cup has held waste collecting activities on the Upper Tisza for years, which the Coca‑Cola joined so that they could help manage the situation with a financial support of HUF 73 million provided by the global foundation of the company and its employees’ volunteer work. Therefore, the program Zero Waste Tisza was launched this summer aimed at providing a constant protection, waste collection and recycling – namely cleaning up the river in an increasing proportion.

The outcome of the second action surpassed that of the first one: this time 170 bags of waste corresponding to 1.8 tonnes had been removed from the Tisza. Among the waste collected communal waste, glasses, metals and objects made of PET could be found. Most of them had been sorted out based on their type at the spot.

The construction work was completed at ALTEO’s solar power plants on the outskirts of Nagykőrös and in Balatonberény, so following the handover, two more power plants were included in the energy portfolio of the listed company. ALTEO has four self-constructed solar power plants, including the self-constructed power plants in Monor and Domaszék. The company’s solar power projects are now rated at 20 megawatts and the full portfolio of renewable energy sources reaches 55 megawatts.

Our first integrated report has been published which includes our sustainability report in addition to the financial results of 2018. The aim of the integrated report is to provide a comprehensive picture of our operation by presenting the most important results of our environmental and social activity beyond the key financial indicators.

As one of the representatives of impact investment in Hungary, we aim from the beginning to operate as an environmentally and socially sustainable and responsible company in addition to financial success.  Hence, we have decided to – based on international trends – publish our financial results and efforts made in terms of sustainability in an integrated report this year.