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Nestlé in society Creating Shared Value and meeting our commitments 2015

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<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />

Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />

Nutrition, health<br />

<strong>and</strong> wellness<br />

Rural development<br />

Water<br />

Environmental<br />

susta<strong>in</strong>ability<br />

Human rights<br />

<strong>and</strong> compliance<br />

238 000 m 3<br />

Our<br />

people<br />

Water G4-DMA<br />

Water stewardship programme <strong>in</strong> California<br />

98 000 m 3<br />

3. Recycl<strong>in</strong>g water<br />

208 000 m 3<br />

4. Implement<strong>in</strong>g robust st<strong>and</strong>ards<br />

The Alliance for Water Stewardship (AWS) International Water<br />

238 000 m 3<br />

Technology that we have already deployed<br />

successfully elsewhere <strong>in</strong> the world to help address<br />

the challenges of water scarcity will improve <strong>our</strong><br />

98 000 m 3<br />

water use efficiency, reliev<strong>in</strong>g pressure on<br />

help address local <strong>and</strong> global water issues through 238 public 000 policy m 3<br />

California’s water res<strong>our</strong>ces.”<br />

José Lopez, former Executive Vice-President<br />

of Operations, <strong>Nestlé</strong><br />

208 000 m 3<br />

98 000 m 3<br />

238 000 m 3<br />

238 000 m 3 Together, these efforts will add up to a total sav<strong>in</strong>g 208 of more 000 than m 3<br />

545000 m 3 .<br />

98 000 m 3<br />

The summer of <strong>2015</strong> saw the US state of California experience a<br />

f<strong>our</strong>th consecutive year of extreme drought. This prompted the<br />

Governor of California to order m<strong>and</strong>atory water use reductions<br />

for the first time <strong>in</strong> the state’s history, while the US federal<br />

government announced a grant of USD 110 million (CHF 108.9<br />

million) to provide relief for farmers <strong>and</strong> rural communities with<br />

depleted supplies of dr<strong>in</strong>k<strong>in</strong>g water.<br />

Many people have expressed concern about the impact of <strong>our</strong><br />

operations <strong>in</strong> California, <strong>and</strong> posed questions about <strong>our</strong> bottled<br />

water plants <strong>in</strong> Cabazon <strong>and</strong> Sacramento <strong>in</strong> particular, even<br />

though the water we use is less than 0.008% of the total<br />

withdrawn across the state 3 . We underst<strong>and</strong> these concerns <strong>and</strong><br />

are <strong>in</strong>tensify<strong>in</strong>g <strong>our</strong> efforts to reduce the amount of water we use,<br />

to use it as efficiently as possible – not just <strong>in</strong> California but across<br />

all of <strong>our</strong> manufactur<strong>in</strong>g operations – <strong>and</strong> to share <strong>our</strong> progress<br />

with <strong>in</strong>terested parties.<br />

Together, the five elements of <strong>our</strong> comprehensive water<br />

stewardship programme <strong>in</strong> California are expected to save more<br />

than half a million cubic metres of water a year, as shown below.<br />

1. Zero water factory<br />

We are transform<strong>in</strong>g <strong>our</strong> dairy factory <strong>in</strong> Modesto <strong>in</strong>to a zero<br />

water factory, which will be able to extract water from milk <strong>and</strong><br />

recycle it, reduc<strong>in</strong>g the need for groundwater or freshwater<br />

supplies. By 2016, this USD 7 million (CHF 6.93 million)<br />

<strong>in</strong>vestment should save more than 238 000 m 3 of water a year,<br />

equivalent to 71% of absolute withdrawals <strong>in</strong> 2014.<br />

2. Reduc<strong>in</strong>g water use<br />

At <strong>our</strong> ice cream factories <strong>in</strong> Bakersfield <strong>and</strong> Tulare, we’re<br />

improv<strong>in</strong>g <strong>our</strong> clean<strong>in</strong>g processes to reduce water use <strong>in</strong> <strong>our</strong><br />

operations, <strong>and</strong> <strong>in</strong>troduc<strong>in</strong>g advanced technology to treat water<br />

for use <strong>in</strong> <strong>our</strong> refrigeration systems. This will save more than<br />

98000 m 3 of water a year.<br />

Treat<strong>in</strong>g <strong>and</strong> recycl<strong>in</strong>g wastewater for use <strong>in</strong> clean<strong>in</strong>g, r<strong>in</strong>s<strong>in</strong>g <strong>and</strong><br />

cool<strong>in</strong>g processes <strong>in</strong> <strong>our</strong> factories help save dr<strong>in</strong>kable water. By<br />

upgrad<strong>in</strong>g cool<strong>in</strong>g tower technology <strong>in</strong> <strong>our</strong> water bottl<strong>in</strong>g factories<br />

<strong>in</strong> California, so that they use treated <strong>in</strong>stead of dr<strong>in</strong>kable water,<br />

we expect to save 208 000 m 3 a year.<br />

Stewardship St<strong>and</strong>ard sets strict criteria for manag<strong>in</strong>g water <strong>in</strong> an<br />

environmentally, socially <strong>and</strong> economically beneficial way. We will<br />

implement the AWS St<strong>and</strong>ard <strong>in</strong> all n<strong>in</strong>e of <strong>our</strong> factories <strong>in</strong><br />

California with<strong>in</strong> two years.<br />

5. Work<strong>in</strong>g <strong>in</strong> partnership<br />

We work with governments, UN bodies <strong>and</strong> other stakeholders to<br />

debate <strong>and</strong> collective action:<br />

• We are a found<strong>in</strong>g signatory of the UNGC’s CEO Water<br />

M<strong>and</strong>ate, which helps companies develop, implement <strong>and</strong><br />

disclose their water susta<strong>in</strong>ability policies <strong>and</strong> practices;<br />

• We are also start<strong>in</strong>g work with the World Res<strong>our</strong>ces Institute<br />

(WRI) to help us better underst<strong>and</strong> the water risks we face <strong>in</strong><br />

California <strong>and</strong> identify water stewardship opportunities; <strong>and</strong><br />

• To develop a way to scale corporate water stewardship <strong>in</strong><br />

California, we are also members of the California Water Action<br />

Collaborative (CWAC). This group aims to create a platform for<br />

collaboration that helps improve water security <strong>in</strong> California for<br />

people, bus<strong>in</strong>esses, agriculture <strong>and</strong> nature.<br />

98 000 m 3 208 000 m 3<br />

3 This calculation is based on USGS data for California water withdrawals <strong>in</strong> 2010 (the latest available data).<br />

<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 142

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