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Nestlé raises eyebrows after backing out of major agreement with other food companies: 'We have decided to discontinue'

"Nestlé regularly reviews its memberships of external organizations."

Nestlé revealed it pulled out of a global pact aimed at reducing methane emissions from dairy production.

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Nestlé has revealed it pulled out of a global pact aimed at reducing methane pollution from dairy production, a move that could weaken international efforts to tackle one of the most potent planet-warming gases, reported Reuters.

What happened?

Nestlé said it has quit the Dairy Methane Action Alliance, launched in December 2023 with companies including Danone, Kraft Heinz, and Starbucks pledging to measure and publish methane pollution from their dairy supply chains and outline plans for reduction. 

"Nestlé regularly reviews its memberships of external organizations. As part of this process, we have decided to discontinue our membership of the Dairy Methane Action Alliance," the company said, per Reuters.

Nestlé did not provide a reason for its exit. It said it is committed to cutting pollution in its supply chains and achieving net zero by 2050. By the end of 2024, Nestlé said it had reduced methane pollution by almost 21% compared to 2018 levels.

The Environmental Defense Fund, which helped create the alliance, confirmed the withdrawal. 

"We appreciate Nestlé's ongoing commitment to acting on dairy emissions through its Dairy Climate Plan and Net Zero Roadmap," said Katie Anderson, senior director at EDF.

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Why is this concerning?

Methane is nearly 30 times more powerful than carbon dioxide in trapping heat in the atmosphere, according to the U.S. Environmental Protection Agency. Agriculture is responsible for about 40% of human-caused methane, mostly from livestock. Cutting this pollution is considered one of the fastest ways to slow global temperature rise.

Nestlé's decision adds to setbacks for voluntary corporate climate coalitions. Similar alliances have recently lost support from banks and other companies, raising questions about whether businesses are retreating from their public sustainability pledges. 

Critics warn that such withdrawals could amount to greenwashing, where corporations highlight limited environmental progress while backing away from more binding commitments.

What's being done about it?

Nestlé announced a new partnership with the World Farmers' Organisation to support resilience in food systems and said it will continue with its Dairy Climate Plan. Other alliance members, such as Danone and Starbucks, remain committed to the methane reduction initiative.

Supporting companies that stay engaged in meaningful pollution reduction is one way to encourage accountability. Experts also stress the importance of government regulations that require measurement and disclosure of pollution, rather than relying only on voluntary industry pledges.

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