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 Rural development Water<br />
Environmental<br />
susta<strong>in</strong>ability<br />
Human rights<br />
<strong>and</strong> compliance<br />
Our<br />
people<br />
Energy G4-DMA, G4-EN3, G4-EN4, G4-EN5, G4-EN6, G4-EN7, G4-EN19, G4-EN21, Overall G4-DMA<br />
Reduc<strong>in</strong>g <strong>our</strong> energy consumption<br />
Our objective<br />
By <strong>2015</strong> – Reduce energy consumption per tonne of<br />
product <strong>in</strong> every product category to achieve an overall<br />
reduction of 25% versus 2005.<br />
S<strong>in</strong>ce 2005, <strong>our</strong> total on-site energy consumption has<br />
<strong>in</strong>creased by 6.6% while the total production volume <strong>in</strong>creased<br />
by 50.2% over the same period. Our objective was to achieve<br />
an overall reduction of 25% per tonne of product by <strong>2015</strong>,<br />
compared with a 2005 basel<strong>in</strong>e <strong>and</strong>, globally, we’ve exceeded<br />
<strong>our</strong> target by reduc<strong>in</strong>g total energy consumption, per tonne of<br />
product, by 29% s<strong>in</strong>ce 2005. This is the result of efforts by <strong>our</strong><br />
eng<strong>in</strong>eers <strong>and</strong> environmental susta<strong>in</strong>ability managers, work<strong>in</strong>g<br />
together to reduce <strong>and</strong> recover energy <strong>in</strong> l<strong>in</strong>e with the NCE<br />
<strong>in</strong>itiative. Changes <strong>in</strong> <strong>our</strong> product mix, <strong>and</strong> acquisitions <strong>and</strong><br />
divestments have also contributed.<br />
Total on-site energy consumption (petajoules)<br />
<strong>2015</strong> 93.8<br />
2014 96.8*<br />
2013 98.6*<br />
*<br />
The 2013 <strong>and</strong> 2014 figures were restated due to more complete data.<br />
Total direct energy consumption (petajoules)<br />
<strong>2015</strong> 63.8<br />
2014 66.5*<br />
2013 68.0*<br />
*<br />
The 2013 <strong>and</strong> 2014 figures were restated due to more complete data.<br />
Total <strong>in</strong>direct energy consumption (petajoules)<br />
<strong>2015</strong> 80.7<br />
2014 81.1<br />
2013 81.5<br />
We’ve conducted improvements <strong>in</strong> all <strong>our</strong> product categories<br />
except petcare; this is due to significant changes <strong>in</strong> <strong>our</strong> pet<br />
litter bus<strong>in</strong>ess, <strong>in</strong>clud<strong>in</strong>g the recent <strong>in</strong>ternalisation of certa<strong>in</strong><br />
manufactur<strong>in</strong>g processes that were previously conducted<br />
externally. However, despite the <strong>in</strong>crease <strong>in</strong> energy<br />
consumption observed dur<strong>in</strong>g manufactur<strong>in</strong>g, these same<br />
changes have led to substantial environmental benefits when<br />
evaluated across the life cycle, as revealed by the LCAs we<br />
conducted. Further reduc<strong>in</strong>g <strong>our</strong> energy consumption is a<br />
challenge, largely due to the evolution of <strong>our</strong> product portfolio<br />
over time towards more value-added products, which <strong>in</strong> turn<br />
allows <strong>our</strong> consumers to save energy.<br />
Energy consumption per product category (GJ/tonne)<br />
2005 <strong>2015</strong> Variation<br />
Powdered <strong>and</strong> liquid beverages 17.08 7.2 -58%<br />
Water 0.39 0.2 -44%<br />
Milk products <strong>and</strong> ice cream 4.93 3.3 -33%<br />
Nutrition <strong>and</strong> healthcare 10.70 7.2 -32%<br />
Prepared dishes <strong>and</strong> cook<strong>in</strong>g aids 3.93 3.3 -16%<br />
Confectionery 5.89 4.6 -23%<br />
Petcare 1.81 1.9 +3.1%<br />
Group average 2.42 1.7 -29%<br />
Environmental Target Sett<strong>in</strong>g programme<br />
Our Environmental Target Sett<strong>in</strong>g (ETS) programme aims to<br />
improve the environmental performance of <strong>our</strong> factories,<br />
based on a thorough assessment of basel<strong>in</strong>e energy <strong>and</strong><br />
water consumption.<br />
To help <strong>our</strong> factory teams improve their own environmental<br />
performance <strong>and</strong> meet <strong>our</strong> <strong>commitments</strong>, we have developed<br />
a web-based tool, Do It Y<strong>our</strong>self. This enables each factory to<br />
identify energy- <strong>and</strong> water-sav<strong>in</strong>g opportunities from<br />
successful solutions already adopted around the Group.<br />
In l<strong>in</strong>e with <strong>our</strong> commitment to improve res<strong>our</strong>ce efficiency,<br />
<strong>our</strong> projects prioritise the <strong>in</strong>troduction of new, energy-efficient<br />
technologies.<br />
• Our Canlubang factory <strong>in</strong> the Philipp<strong>in</strong>es ran an ETS <strong>in</strong> June<br />
<strong>2015</strong>, identify<strong>in</strong>g 29 projects that would generate annual<br />
sav<strong>in</strong>gs exceed<strong>in</strong>g 70 000 GJ of energy (17% reduction) <strong>and</strong><br />
152 827 m 3 of water (23% reduction), avoid 6415 tonnes of<br />
CO 2 <strong>and</strong> save CHF 1.6 million per year. The factory will<br />
prioritise seven schemes that will pay for themselves with<strong>in</strong><br />
a year, such as recover<strong>in</strong>g heat from boilers, <strong>and</strong> another<br />
f<strong>our</strong> that require no capital expenditure;<br />
• Similarly, <strong>our</strong> Pur<strong>in</strong>a factory <strong>in</strong> Portogruaro, Italy, conducted<br />
an ETS <strong>in</strong> February <strong>2015</strong>, develop<strong>in</strong>g an action plan to save<br />
22 155 GJ of energy <strong>and</strong> 4349 m 3 of water (roughly a 10%<br />
reduction <strong>in</strong> both), avoid 1402 tonnes of CO 2 <strong>and</strong> save CHF<br />
528 000 a year. The 17 agreed projects <strong>in</strong>clude replac<strong>in</strong>g<br />
leak<strong>in</strong>g steam traps, <strong>and</strong> <strong>in</strong>stall<strong>in</strong>g <strong>in</strong>sulation <strong>and</strong> heat<br />
recovery systems;<br />
• The Nespresso Production Centre <strong>in</strong> Orbe uses water from<br />
the local river for cool<strong>in</strong>g dur<strong>in</strong>g some production<br />
processes. A more efficient management system was put <strong>in</strong><br />
place, result<strong>in</strong>g <strong>in</strong> a 150 000 m 3 reduction <strong>in</strong> <strong>our</strong> yearly<br />
consumption of river water – the equivalent of 50 Olympic<br />
swimm<strong>in</strong>g pools; <strong>and</strong><br />
• The optimisation of operational parameters at the Nespresso<br />
Production Centre <strong>in</strong> Avenches allowed us to reduce the<br />
site’s electricity consumption by 1400 000 kWh, which is<br />
equivalent to the yearly electricity consumption of about<br />
200 families.<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> 183