February 26, 2024

Nestle continues to grow despite billions of dollars spent improving the company’s environmental footprint, CEO Mark Schneider told CNBC on Thursday.

“Today’s consumer demands sustainability even more than before. They want to know that we treat the planet well, they want to know that we take care of the next generation,” he said in an interview with Jim Cramer about “Mad Money” . “

“I think there is a good business case emerging, and that is exactly what we are pursuing,” said Schneider, whose interview landed on Earth Day.

As stated in its sustainability strategy, Nestle plans to reduce emissions in its business and supply chains and reduce its carbon footprint by 2050.

In the short term, the Switzerland-based food and beverage manufacturer, whose portfolio includes Gerber, KitKat and Nespresso, announced that it would end its dependency on deforestation by next year and switch operations entirely to renewable electricity by 2025 in 187 countries.

Meanwhile, according to its website, Nestle is committed to regenerative agriculture and is committed to planting 20 million trees each year for this decade. KitKat also promised on Thursday that the chocolate brand will achieve carbon neutrality by 2025: a balance between the emission and absorption of carbon in the atmosphere.

“The younger, better educated and the richer the consumers are, the more interested they are in environmentally friendly products and practices,” said Schneider. “Digital these days means your supply chain is completely transparent so that people understand what you are doing for the planet and reward the companies that are leading this trend.”

The comments come after the consumer goods company reported first quarter results that far exceeded Wall Street expectations. Switzerland-based Nestle posted organic growth of 7.7% year-on-year, more than double the expected growth rate of 3.3%.

Compared to pre-pandemic sales, Nestle’s total sales for the first three months were nearly $ 23 billion in the first three months, up 5% on 2019.

Nestle’s shares rose 2.38% on Thursday to end the session at $ 119.71.