Ethos will make a statement at today’s annual general meeting of Nestlé in the context of the initiative “Climate Action 100+” urging the board to take additional measures in terms of the risks related to climate change. Ethos is also asking for the board to take the necessary steps to reduce current tensions with certain stakeholders of the company.
Nestlé is part of the 100 companies which contribute the most to greenhouse gas emissions on a global level and is therefore in the scope of the initiative “Climate Action 100+”. This initiative regroups more than 260 institutional investors with assets exceeding USD 28’000 billion. Ethos, in collaboration with the Dutch pension fund APG, is responsible for engaging Nestlé on this subject. Ethos welcome the efforts that Nestlé has already undertaken in this context such as the setting of greenhouse gas reduction targets which are compatible with limiting global warming to 2 degrees as well as its target to source 100% renewable energy. In light of the risks posed by climate change for Nestlé’s business model, Ethos asks that the board take the following additional measures:
- Reinforce the governance and expertise of the board regarding climate change and environmental and social responsibility;
- Implement the recommendations of the Task Force on climate related financial disclosures (TCFD), which are already supported by many companies, including competitors of Nestlé;
- Enhance transparency on measures taken to reduce emissions from the supply chain which represent 90% of the group’s greenhouse gas emissions, in the context of the 50% total emissions reduction target set for 2050. In this context, Nestlé should set intermediate targets that allow to confirm the effectiveness of the measures.