Addressing deforestation risks in our primary supply chains

Working to address deforestation risks is a key component of our net-zero target.

Population growth and increasing demand for food mean natural ecosystems can be converted into farmland, even though trees and forests play a critical role in protecting biodiversity and limiting the effects of climate change. 

But the past decade has shown us that seeking to address deforestation after it has occurred is not enough. It is essential that we continue to adopt responsible sourcing practices and engage farming communities located in and around forests. In that way, we can prevent additional habitat loss and make a positive impact on forests.

Deforestation-free means that commodities in scope were assessed as produced on land that has not been subject to deforestation or conversion after a specific cut-off date that varies by commodity, but no later than December 31, 2020. 

As part of our long-standing commitment to addressing deforestation, we have been reporting on our progress towards achieving and maintaining, by the end of 2025, 100% assessed deforestation-free primary supply chains for meat, palm oil, pulp and paper, soy, sugar, cocoa, and coffee.

Our performance by the end of 2025, at 96.7%, reflects over a decade of investment in traceability, supplier engagement and landscape-level interventions, while being challenged by operational complexities, particularly in extended supply chains and geographies with limited verification infrastructure. In cocoa, based on the learnings of previous years, we have focused our deforestation-free efforts on “first-mile traceability” (i.e. tracking beans from their origin to the supplier’s first point of aggregation). This approach aligns our assessment with emerging industry practices, and reinforces the integrity of our traceability systems at the start of the supply chain.

The gap between our performance and meeting our commitment in full is due to traceability and infrastructure challenges in global commodity supply chains. We are developing our plans for the coming years by incorporating the lessons learned and considering the challenges outlined above.

Our Responsible Sourcing Core Requirements (pdf, 2Mb) establish that all materials and ingredients supplied to Nestlé must comply with no deforestation and no conversion requirements, which means that there is no expansion or production on areas converted from natural forests and other natural ecosystems, including primary forests, protected areas (e.g. IUCN protected areas categories I-IV, UNESCO World Heritage Sites, wetlands on the Ramsar List), High Conservation Values (HCV) lands in and around the producer territory, high carbon stock (HCS) forests, wetlands, savannas, and peatlands regardless of depth (except where farming practices protect peat), and riparian buffers adjacent to aquatic eco systems (except where it complies with applicable law). 

Working to assess risks and tackle their root causes

We take a risk-based approach to implementing actions.

We start by mapping our primary supply chains (meat, palm oil, pulp and paper, soy, sugar, cocoa and coffee) in scope to identify the origins of our raw materials. We then take steps to assess that our sourcing is preventing the risk of deforestation, as defined in our Responsible Sourcing Core Requirements. Raw materials are confirmed as deforestation-free when either they can be traced to low-risk origins or have been assessed as deforestation-free either from the sky or from the ground. 

We are using the following tools in our deforestation risk assessment and mitigation:

We assess the deforestation-free status of key ingredients in the following ways:

Traceable to low-risk origin = Volumes are traced back to regions classified as at low risk of deforestation, using tools such as Maplecroft. The traceability exercise is carried out in collaboration with our partners (e.g., Earthworm Foundation and Proforest) or using technology.

Assessed on the ground = Volumes are assessed through on-the-ground assessments, including by High Carbon Stock Approach and High Conservation Value assessments, by our partners (e.g., Earthworm Foundation, Proforest and SGS) and/or through certification such as Roundtable on Responsible Soy and Proterra (soy), Forestry and Stewardship Council and PEFC (paper) and Roundtable on Sustainable Palm Oil. Only segregated volumes are accepted as deforestation-free.

Assessed from the sky = Volumes are assessed through satellite monitoring of production sites (farms, mills or supply areas) in our supply chain identified through a traceability exercise.

Unknown = Not traced or being traced, but not yet assessed as deforestation-free.