4th January 2021 -IAM, News
Daniel Pfund, Senior Financial Analyst
At the beginning of the month, Nestlé’s CEO announced that the company will invest 3.2 billion francs over the next 5 years for the good of the climate. The ultimate goal will be to be CO2 neutral by 2050.
The company has also given interim targets: CO2 emission reductions of 20% within 5 years, and 50% within 10 years. As these objectives are relatively far away, Nestlé wanted to specify more concrete short-term objectives: no deforestation in its suppliers by 2022, 100% sustainable palm oil by 2023, 100% renewable electricity on Nestlé sites by 2025, plantation of 20 million trees per year starting today…
These massive investments scared investors, pushing the stock down when the market as a whole was on the rise. To reassure investors, the CEO recently stated that the company had identified cost savings opportunities to offset these additional charges and that he was confident that profits should not be impacted in 2021. In addition, CEO and top management bonuses will be linked to the announced sustainability measures.
