Consumers Aren't Yet Paying the Green Premium, But Companies Must Keep Investing: Nestlé South Asia ESG Head

Net zero is a commitment, but making a commitment is the easy part. The real work lies in execution. Rather than simply announcing a target for 2050, we have broken our journey into measurable milestones. By 2025, we aimed to complete 20% of our emissions-reduction roadmap, and we successfully achieved that milestone.

Our next target is to complete more than 50% of the roadmap by 2030, and we remain well on track. The final objective is to achieve net-zero emissions by 2050.

To make this credible, every milestone is supported by detailed action plans, specific targets, implementation timelines and independent third-party validation. This is how we ensure that our net-zero commitment is not just a slogan but an operational plan backed by measurable progress.

A good example is our Moga factory in Punjab, established in 1961. As part of our dairy operations, we began procuring milk from nearby farmers. Today, that network spans nearly 60,000 square kilometres and includes around 80,000 dairy farmers across Punjab, Haryana and parts of Rajasthan.

This ecosystem functioned on the principles of sustainability and long-term partnerships well before ESG became a formal business priority. Because these values were already deeply

embedded across our manufacturing, supply chain, human resources and operations, adapting to modern sustainability frameworks was much easier.

Even in developed markets, consumers talk a great deal about sustainability. But when it comes to paying a higher price for products made through sustainable practices, the answer is more complicated. It has not been an easy transition.

The conversation has begun. A growing section of consumers is becoming more conscious. Personally, I know people who consciously minimise plastic use, prefer recycled clothing, avoid fast fashion and make lifestyle choices based on environmental considerations. There is certainly a segment that is deeply committed to climate-conscious living.

Not yet. Even in Europe, the picture varies from country to country. Take the Netherlands, for example, where environmental issues have become part of mainstream political discourse. Green political parties have emerged as significant players, which reflects the importance voters attach to sustainability.

India may not yet have a similar political ecosystem, but public awareness is steadily increasing. It is becoming impossible to ignore the visible effects of climate change.

I come from a water-stressed region myself, so I understand the value of water. Take our Moga factory, for example. It is located in a district where groundwater levels have been declining over the years. As one of the world's largest food and beverage companies, we have a responsibility to bring together all our scientific expertise, research-and-development capabilities, sustainability knowledge and agricultural best practices to address this challenge.

Around the Moga plant alone, we work with nearly 80,000 dairy farmers. We have launched an internal initiative called Project Zero, which focuses on improving water stewardship and reducing water consumption across our operations. Will Nestlé alone solve the water challenges of the entire Moga district? The honest answer is no. But our objective is to create a model that others can replicate. We want to become a lighthouse for other companies.

The results are already visible. Our water consumption per tonne of production has consistently declined over the years. That has been achieved through better science, improved technology and continuous investment in sustainable manufacturing practices.

Our ingredients come from farmers, so we cannot simply say that water management is their responsibility. We work closely with them to promote better water stewardship, improve irrigation practices, conserve water and reduce the overall water footprint of agricultural production.

When it comes to energy, we have clear targets and performance indicators for reducing our carbon footprint. We are steadily transitioning away from conventional thermal energy towards cleaner and renewable sources.

Wherever possible, we are increasing the use of renewable electricity and alternative fuels. We have also invested in biomass-based energy systems, with boilers operating on biomass instead of conventional fossil fuels.

Interestingly, this transition often makes economic sense as well. While the initial investment may be higher, the long-term benefits – in terms of both sustainability and operating costs – are significant.

We work with specialist partners and technology providers to implement these solutions. For example, companies such as Thermax support biomass-based energy systems. We also collaborate with vendors, renewable energy providers and government-backed programmes to source cleaner energy for our operation

Technology is perhaps the single biggest enabler of the sustainability transition. Long before sustainability reporting became mandatory, we were already working with a strong sense of responsibility. Technology has helped us take that commitment to another level.

Today, digital platforms, analytics, dashboards, predictive tools and increasingly artificial intelligence allow us to monitor sustainability performance almost in real time. We can immediately identify where a metric is improving, where performance is slipping and where corrective action is required.

That level of visibility simply wasn't possible earlier.

Technology has also transformed agriculture. Farmers today increasingly rely on scientific data rather than intuition alone. Many are able to monitor soil health, understand weather forecasts, analyse rainfall predictions and make more informed decisions about irrigation, crop management and resource use.

Compared with a decade ago, technology adoption in agriculture has increased significantly, and it has become a powerful driver of sustainable farming practices.