Fuel volatility pushes sustainability to core business strategy

Rising fuel price volatility and persistent global disruptions are forcing companies to treat sustainability not as advocacy, but as a central business strategy, according to Nestlé Philippines CEO Mauricio Alarcon.

Speaking at “The Pivot: The Road to Net Zero,” Alarcon said heavy reliance on fossil fuels exposes businesses to cascading risks across energy, logistics, and supply chains. “Relying on volatile, fossil-fueled systems is a risk,” he said. 

“Shifting to renewable electricity, sustainable logistics, and regenerative agriculture is not just an environmental choice—it is a hedge against instability, a driver of efficiency, and a safeguard for long-term growth,” he added.

He pointed to recent geopolitical tensions and supply chain disruptions as amplifying cost pressures and uncertainty, particularly for energy-dependent industries. These conditions, he said, are accelerating the case for sustainability investments that strengthen resilience while improving operational predictability.

For Nestlé Philippines, sustainability has become a cornerstone of its risk management approach. 

Alarcon noted that all of the company’s factories, offices, and distribution centers nationwide now operate on 100 percent renewable electricity—reducing exposure to fuel price swings and enhancing long-term cost stability.

He added that the transition to Net Zero should be viewed as a strategic opportunity rather than a compliance burden. “It is our generation’s greatest opportunity—to innovate, to lead, and to leave the world better than we found it,” he said, urging companies to embed sustainability into long-term planning.

Nestlé launched its global Net Zero Roadmap in 2020, targeting net-zero emissions by 2050. Its Philippine unit aligned with the initiative in 2021, focusing on operational transformation, regenerative agriculture, plastic reduction, and responsible sourcing—efforts aimed at strengthening supply chains while supporting local communities.

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