Nestlé has announced it is investing CHF 1.2 billion over the next five years to spark regenerative agriculture across the company’s supply chain.

The company will be leveraging on three primary levers to help farmers adopt regenerative practices including the application of state-of-the-art science and technology, investment support and the provision of technical assistance and the payment of premiums for regenerative agriculture goods.

In a press release to announce the move, Nestlé indicated that it will also offer agricultural training and help farmers exchange information and best practices that can be adapted locally as well as through its R&D experts and agronomists develop higher-yielding coffee and cocoa varieties with lower environmental impact and assessing novel solutions to reduce emissions in the dairy supply chain.

Taking into consideration that the transition to regenerative agriculture comes with initial risks and new costs, Nestlé indicated that it will support farmers by co-investing with them, facilitating lending or helping them obtain loans for specific equipment. The company also stated that it will work with partners to fund pilot projects to test and learn how best to advance regenerative agriculture,” it said.

The announcement was made in the lead up to the UN Food Systems Summit in New York, as part of Nestlé’s contribution to help achieve the Sustainable Development Goals (SDGs) by 2030. It also follows the recent report from the United Nations’ Intergovernmental Panel on Climate Change that shows the climate crisis is intensifying.

“We know that regenerative agriculture plays a critical role in improving soil health, restoring water cycles and increasing biodiversity for the long term,” said Paul Bulcke, Chairman of Nestlé. “These outcomes form the foundation of sustainable food production and, crucially, also contribute to achieving our ambitious climate targets.”

Nestlé is a signatory of the UN Business Ambition for 1.5°C pledge and was one of the first companies to share its detailed, time-bound climate plan in December 2020. The company is taking measures to halve its emissions by 2030 and achieve net zero by 2050.

“With our long-standing partnerships with farming communities globally, we want to increase our support for farming practices that are good for the environment and good for people,” said Mark Schneider, Nestlé CEO. “In the spirit of enabling a just transition it is vital that we support farmers around the world that take on the risks and costs associated with the move towards regenerative agriculture.”

In Central and West Africa, Nestlé’s focus is to ensure supply of local agricultural materials, create inclusive livelihoods for small holder farmers (SHFs), women and youth while protecting environmental resources.