Nestlé CEO on plans to address sustainability concerns of young consumers

Consumer goods giant Nestlé told CNBC Thursday that concerns about the sustainability of young customers were “off the charts” and had a major impact on purchasing decisions.

“If you win their hearts, that is, this is the future growth of your business,” said Mark Schneider, a founding member of the CNBCESG Council. “The No. 1 basic rule of consumer goods marketing and food and beverage marketing never loses the younger generation.”

Schneider, who was talking to CNBC’s Jeff Cutmore in the suburbs of Lausanne, Switzerland, cited two reasons for this. “They are not only the years of highest income and consumption, but also the role model of other generations on what to do.”

Nestlé, the largest food and beverage company on the planet, has a large environmental footprint. In 2018, its total emissions reached 113 million metric tons of carbon dioxide, of which just under 95% came from the supply chain, which is part of “Scope 3” emissions.

By 2030, Nestlé wants to reduce greenhouse gas emissions by 50%. We are aiming for net-zero emissions by 2050 “at the latest”.

This goal includes most Scope 3 emissions, such as raw material procurement and logistics management, but there are some exclusions from this category.

Schneider further emphasized that he felt that it would be an important focus of future business. “If last year was all about Covid, safety, and keeping shelves in stock, this year is obviously all about the supply chain,” he said.