Nestle SA has abandoned pledges to make major brands, including KitKat and Perrier, carbon neutral, joining a nascent corporate pushback against programs that let polluters compensate for their own greenhouse gas emissions by investing in efforts to reduce them elsewhere.
The world’s biggest food company joins airline EasyJet PLC and Gucci owner Kering SA in backing away from so-called carbon offsetting as a way to meet net zero emissions targets.
Consumer groups have said the practice is misleading for shoppers and does not always mean emissions are falling.
Photo: Reuters
Nestle is shifting toward in-house programs to reduce greenhouse gas emissions in its operations and supply chain, a spokesperson said.
The Swiss food company also dropped plans to make plant-based meal lines Sweet Earth Foods and Garden Gourmet carbon neutral.
Carbon-offset programs do not really reduce businesses’ impact on the climate, critics say, even though the label does have appeal for well-meaning consumers.
“If you’re a consumer in the supermarket, you have no way to know how much of a carbon neutral claim is from actual emissions reductions and how much is from these dubious carbon-offsetting projects,” said Emma Calvert, a food policy officer at European consumer rights organization BEUC, which wants to ban “carbon neutral” claims on food.
Multinationals are under pressure to help prevent the planet from heating up more than 1.5oC.
The net-zero standard requires companies to set long-term science-based targets to cut all possible emissions before 2050.
While Nestle is abandoning carbon offsets, it still aims to achieve net zero in 2050, planning to reach that through measures often known as “insets.” That includes actions like helping farmers shift to regenerative agriculture, restoring wetlands, protecting habitats for pollinators and planting hedgerows to prevent soil erosion.
However, insets are also problematic. It is hard to check the methodologies that companies use and there are no global verification standards, the NewClimate Institute said.
Those measures could give consumers a false impression of a company’s impact on climate, the group said.
Carbon neutrality claims can play well with consumers as they can assume it means fewer greenhouse gas emissions. A study conducted by a German consumer organization concluded that carbon neutrality claims improve a product’s image even when there is no guarantee that an environmental benefit actually exists.
Greenwashing claims can backfire for companies, too. Danone SA is the target of a US lawsuit over the carbon neutral label on its Evian waters. A Swedish court fined and banned European dairy group Arla Foods from using the term “net zero climate footprint” in the marketing of its products sold in the country. Nestle is facing a legal challenge from a French consumer group over its claim that Nespresso is carbon neutral.
Despite the change in approach, some of Nestle’s brands are still touting their carbon neutral successes. The Web site of vitamin business Garden of Life says it reached that status six months ahead of schedule in 2021.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
WARNING SHOT: The US president has threatened to impose 25 percent tariffs on all imported vehicles, and similar or higher duties on pharmaceuticals and semiconductors US President Donald Trump on Wednesday suggested that a trade deal with China was “possible” — a key target in the US leader’s tariffs policy. The US in 2020 had already agreed to “a great trade deal with China” and a new deal was “possible,” Trump said. Trump said he expected Chinese President Xi Jinping (習近平) to visit the US, without giving a timeline for his trip. Trump also said that he was talking to China about TikTok, as the US seeks to broker a sale of the popular app owned by Chinese firm ByteDance Ltd (字節跳動). Trump last week said that he had
STRUGGLING TO SURVIVE: The group is proposing a consortium of investors, with Tesla as the largest backer, and possibly a minority investment by Hon Hai Precision Nissan Motor Co shares jumped after the Financial Times reported that a high-level Japanese group has drawn up plans to seek investment from Elon Musk’s Tesla Inc to aid the struggling automaker. The group believes the electric vehicle (EV) maker is interested in acquiring Nissan’s plants in the US, the newspaper reported, citing people it did not identify. The proposal envisions a consortium of investors, with Tesla as the largest backer, but also includes the possibility of a minority investment by Hon Hai Precision Industry Co (鴻海精密) to prevent a full takeover by the Apple supplier, the report said. The group is