NESTLÉ Philippines is marking 115 years in the country with a renewed focus on sustainability, as the food and beverage giant faces increasing pressure to address climate risks, supply chain vulnerabilities, and shifting consumer expectations.
For a company deeply embedded in Philippine agriculture, particularly coffee, the challenge is not just to maintain supply, but to ensure that farming systems can withstand rising temperatures, erratic weather, and declining soil quality.
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Nestlé’s global Net Zero roadmap, introduced in 2020, set a 20 percent emissions reduction target by 2025. According to company data released early this year, it exceeded that goal, cutting emissions by 24.5 percent across its operations and value chain.
The company also reported that 98.6 percent of its electricity now comes from renewable sources, while 27.6 percent of its key ingredients are sourced from farms using regenerative agriculture practices.
Progress on packaging has been slower but still notable, with a 28 percent reduction in virgin plastic use, approaching its original target of one-third.
Nestlé assistant vice president and sustainability head for Asia, Oceania, and Africa, Kasia Grzybowska, said the figures suggest that long-term targets are within reach -but only if agriculture is addressed.
“Around 70 percent of our emissions come from agriculture. Without transforming how we farm and how we work with farmers, net zero will not be possible,” she said.
Regenerative agriculture
The company’s response has been to scale up regenerative agriculture, which it frames as a step beyond conventional sustainability.
While sustainable farming generally focuses on limiting damage – reducing chemical inputs or preventing deforestation —regenerative agriculture aims to restore soil health, improve biodiversity, and rebuild ecosystems over time.
In practical terms, this includes intercropping, composting, and more precise fertilization – methods that are not new, but are being reintroduced and systematized.
“These are not concepts that didn’t exist before. The challenge is putting them together consistently and making them work within existing systems,” Grzybowska said, adding that the approach is less about new technology and more about applying proven practices at scale.
In the Philippines, the approach is being tested through the Nescafé Plan, which focuses on coffee farmers, many of whom are aging and working with low yields.
Nestlé Philippines head of sustainability, Meg Anne Santos, said more than 13,000 farmers have been trained under the program over the past five years. The results, she said, have been measurable.
From a baseline of about 300 kilos per hectare, some farms have reached 900 kilos or more, with higher outputs in certain areas. The gains are not uniform, but they point to a potential path for improving both productivity and resilience. Coffee, Santos noted, is particularly sensitive to climate shifts, making soil health and crop diversity increasingly important.
“This is not just about increasing yield. It’s about making farms more resilient so farmers can continue producing despite climate pressures,” she said.
Progress, constraints
Nestlé Philippines has also moved faster than some markets in shifting to renewable energy and reducing waste, partly due to early investments and partnerships.
The company has been cited internally as one of the first in its region to achieve plastic neutrality and transition most of its operations to renewable electricity.
Still, Grzybowska acknowledged that progress depends heavily on external factors, particularly infrastructure. Recycling systems, material availability, and energy access vary widely across markets, limiting how quickly companies can move.
“You can redesign packaging, but if collection and recycling systems are not there, the impact is limited,” she said.
Both executives pointed to the role of government agencies, local governments, and farmer groups in scaling sustainability programs.
Santos said collaboration has been critical in expanding farmer training and aligning efforts with national agriculture priorities, and across sectors.
Nestlé’s targets remain long-term. The company aims to cut emissions by half by 2030 and reach net zero by 2050, while increasing the share of ingredients sourced from regenerative farms to 50 percent over the same period.
Whether those targets are met will depend largely on how quickly regenerative practices can be adopted across supply chains—and whether they can deliver consistent results for farmers.
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