Modelling better business: Nestlé trials natural capital premium with UK dairy farmers

February 2018 – In the first in a series of ‘Modelling better business’ case studies, the Natural Capital Impact Group (NCIG) showcase its work with Nestlé to protect natural capital through an innovative scheme which provides dairy farmers with a price premium for taking practical measures to enhance the natural environment.

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About

In 2017, leading global food company Nestlé launched a UK trial with 99 farmers in Cumbria and Ayrshire in response to growing pressures on the natural capital which underpins its business.

Each farmer chooses from a range of practical interventions, which Nestlé identified with the Game & Wildlife Conservation Trust and benchmarked against a ‘top ten’ list of sustainable dairy practices from the University of Cambridge Institute for Sustainability Leadership’s (CISL) Natural Capital Impact Group (NCIG).

This case study outlines the business case for investing in natural capital, provides an overview on Nestlé’s innovative trial, and identifies further steps that can be taken to scale up investments in natural capital across the dairy industry.  

About 'Modelling better business'

The ‘Modelling better business’ case studies, underpinned by sound research, provide examples of how large multinational companies are protecting natural capital on the ground, and the business and societal benefits this delivers. The NCIG's goal is to create compelling commercial cases for action, in sectors reliant on natural capital, which companies may learn from and potentially replicate.

About the Natural Capital Impact Group

The Natural Capital Impact Group (NCIG) is a global network of companies, working collaboratively to determine how business can sustain the natural world and its resources through their strategies and operating practices.

Authors

The lead authors of this case study were Dr Gemma Cranston (CISL) and Polly Ghazi. Expert contributors included Andy Griffiths (Nestlé UK), Robin Sundaram (Nestlé UK) and Paul Barrow.

Citation

University of Cambridge Institute for Sustainability Leadership (CISL). (2018, February). Modelling better business: Nestlé trials natural capital premium with UK dairy farmers. Cambridge, UK: the Cambridge Institute for Sustainability Leadership. Cambridge, UK: the Cambridge Institute for Sustainability Leadership.