Nestle's 2024 ESG Report: a Critical Review and Paving the Way Forward through a New Model ESG Framework

Chandra Mogan, Prema (2026) Nestle's 2024 ESG Report: a Critical Review and Paving the Way Forward through a New Model ESG Framework. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Environmental, Social, and Governance (ESG) reporting has emerged as a critical mechanism for enhancing corporate transparency, accountability, and long-term value creation amid growing regulatory pressures and stakeholder expectations. This study examines the ESG reporting practices of Nestlé Malaysia within the evolving global and Malaysian sustainability reporting landscape, with the aim of assessing the quality, structure, and comprehensiveness of its disclosures and proposing an enhanced ESG reporting framework aligned with internationally recognised standards. Drawing on the evolution of ESG from early corporate social responsibility initiatives to contemporary frameworks such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), the study situates Nestlé Malaysia’s reporting practices within relevant theoretical perspectives, including Stakeholder Theory, Legitimacy Theory, the Triple Bottom Line, and Institutional Theory. A mixed-methods research design was adopted under a pragmatist paradigm, combining quantitative and qualitative content analysis. Quantitative analysis examined key ESG performance indicators, including environmental, social, and governance metrics, extracted from Nestlé’s ESG and sustainability reports from 2021 to 2024 and benchmarked against comparable disclosures from Unilever and Danone. Qualitative analysis focused on narrative disclosures from the companies’ most recent ESG reports, analysing governance structures, materiality assessments, sustainability strategies, and stakeholder engagement practices. A single embedded case study approach was employed to provide in-depth insights into Nestlé Malaysia, supported by cross-company benchmarking. Quantitative data were analysed using SPSS, while qualitative data were thematically analysed using NVivo, with validity and reliability ensured through triangulation and audit trails. The findings indicate that while Nestlé Malaysia demonstrates relatively strong environmental and governance disclosures aligned with GRI standards, gaps remain in outcome-based social reporting, forward-looking targets, and explicit SASB alignment. Benchmarking against Unilever and Danone highlights best practices in integrating quantitative metrics with qualitative narratives, independent assurance, and double materiality perspectives. In response, the study proposes a structured ESG reporting framework that enhances transparency, comparability, credibility, and stakeholder relevance by integrating GRI and SASB standards, strengthening social performance metrics and incorporating forward-looking targets. The study contributes theoretically by extending ESG reporting literature within the Malaysian context and practically by offering a robust, standardised framework that supports improved ESG disclosure quality, stakeholder trust, and long-term sustainability performance for Nestlé Malaysia and similar organisations in the food and beverage industry