CASE STUDY 6 Nestlé and the Innovation Center for U.S. Dairy supporting dairy suppliers’ net-zero journey Challenge The United Nations’ Food and Agriculture Organization (FAO) estimates that the dairy sector globally contributes to roughly 4% of total GHG emissions.17 As a key player of the dairy value chain, Nestlé has already committed to achieving zero net GHG emissions by 2050. But it will likely need to be a collective effort, as a report found the vast majority of large meat and dairy companies “have yet to meaningfully address even the most basic sustainability risks.”18 Solution Nestlé supports the Net Zero Initiative, an industry-wide effort that will help US dairy farms of all sizes and geographies implement new technologies and adopt economically viable practices. The initiative is endorsed by dairy industry leaders and farmers to help eliminate the cost barriers and create incentives for farmers to achieve carbon neutrality, optimized water usage and improved water quality by 2050. With the entire dairy community at the table – from farmers and cooperatives to processors, household brands and retailers – the consortium is harnessing the US dairy industry’s innovation, diversity and scale to drive continued environmental progress. The Innovation Center for U.S. Dairy also announced a key milestone on its journey toward carbon neutrality: an investment of up to $10 million and a multi-year partnership with Nestlé to support the Net Zero Initiative and expand access to environmental practices and resources on farms across the country. Impact Nestlé was the first company to join the Net Zero Initiative, bringing funding and expertise to help propel its value chain progress toward a more sustainable future. The US dairy community hopes many partners will follow. By using modern management practices and improving cow feed and genetics, the environmental impact of making a gallon of milk has dropped: from 2007 to 2017, it required 30% less water, 21% less land and a 19% smaller carbon footprint, according to the Innovation Center for U.S. Dairy. Deploying these measures broadly across the dairy supply chain would enable the achievement of more significant sustainability improvements. Sources: The United Nations’ Food and Agriculture Organization (FAO); Nestlé. (2020). Nestlé joins US dairy industry to reach net zero carbon emissions by 2050; Devenyns, J. (2019). Report: Meat and dairy companies have not addressed basic sustainability risks. Food Dive; Byington, L. (2020). Nestlé will support farmers to achieve net-zero carbon by 2050, supply chain chief says. Supply Chain Dive. United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization 19

United for Net Zero Public Private Collaboration to Accelerate Industry Decarbonization 2025