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 />
G4-EN1; G4-EN28<br />
competition for supplies, yet many still do not have the<br />
appropriate performance criteria for <strong>our</strong> needs. Currently, over<br />
a third of <strong>our</strong> packag<strong>in</strong>g materials are made from renewable<br />
materials (see Us<strong>in</strong>g recycled materials), <strong>and</strong> most of these are<br />
fibre-based materials such as paper <strong>and</strong> board.<br />
Renewable packag<strong>in</strong>g materials (% of materials for<br />
packag<strong>in</strong>g purposes)<br />
<strong>2015</strong> 38.3<br />
2014 39.6<br />
2013 38.9<br />
We cont<strong>in</strong>ue to participate <strong>in</strong> the development of new<br />
materials produced from susta<strong>in</strong>ably managed renewable<br />
res<strong>our</strong>ces, such as biobased 7 plastics <strong>and</strong> fibre-based<br />
materials, <strong>and</strong> assess their potential environmental benefits,<br />
functional performance, availability <strong>and</strong> cost so that we can<br />
select the most appropriate applications for <strong>Nestlé</strong>.<br />
Currently, the applications us<strong>in</strong>g biobased plastics present <strong>in</strong><br />
the market <strong>in</strong>clude:<br />
• <strong>Nestlé</strong> Brazil uses bio-PE <strong>in</strong> caps <strong>and</strong> the <strong>in</strong>ner l<strong>in</strong>er of<br />
beverage cartons;<br />
• <strong>Nestlé</strong> Waters Italy uses bio-PET <strong>in</strong> Levissima bottles; <strong>and</strong><br />
• In the UK, Quality Street cont<strong>in</strong>ues to use Natureflex<br />
cellophane for its twist wraps. We also use the same<br />
material <strong>in</strong> w<strong>in</strong>dow cartons for Smarties <strong>and</strong> approximately<br />
20 other projects are currently under evaluation.<br />
Over the long term, <strong>our</strong> focus will be on third-generation<br />
bioplastics (see table below) <strong>and</strong> fibre-based materials<br />
typically s<strong>our</strong>ced from plant matter such as wood, grass <strong>and</strong><br />
reeds, algae <strong>and</strong> agricultural by-products (e.g. cereal husks),<br />
all of which don’t compete with food for l<strong>and</strong>. Each will be<br />
assessed on a case-by-case basis with respect to<br />
environmental credentials, regional <strong>and</strong> local impacts,<br />
consumer expectations <strong>and</strong> effects on food security.<br />
Recover<strong>in</strong>g used packag<strong>in</strong>g<br />
In several regions, <strong>in</strong>clud<strong>in</strong>g Europe, Lat<strong>in</strong> America <strong>and</strong> Asia,<br />
authorities have imposed, or are consider<strong>in</strong>g impos<strong>in</strong>g, bans<br />
on plastic carrier bags to combat the problem of litter<strong>in</strong>g. In<br />
some countries, these proposals also extend to food<br />
packag<strong>in</strong>g <strong>and</strong> the m<strong>and</strong>atory use of degradable plastics.<br />
While <strong>Nestlé</strong> welcomes government <strong>in</strong>itiatives to combat<br />
the problem of plastic litter from discarded food packag<strong>in</strong>g,<br />
we believe that neither material bans nor the enforced use of<br />
degradable materials is the answer. We fav<strong>our</strong> the<br />
development of comprehensive collection <strong>and</strong> recovery<br />
<strong>in</strong>frastructure, underp<strong>in</strong>ned by effective public education<br />
programmes. Therefore, we rema<strong>in</strong> committed to work<strong>in</strong>g with<br />
relevant authorities <strong>and</strong> <strong>in</strong>dustry associations to ensure suitable<br />
<strong>in</strong>frastructure <strong>and</strong> awareness-rais<strong>in</strong>g activities are <strong>in</strong> place.<br />
At a corporate level, <strong>Nestlé</strong> is a member of EUROPEN, the<br />
European Organization for Packag<strong>in</strong>g <strong>and</strong> the Environment,<br />
<strong>and</strong> was elected <strong>in</strong>to its executive committee <strong>in</strong> <strong>2015</strong>. We also<br />
co-chair the EUROPEN Life Cycle Assessment (LCA) Taskforce<br />
<strong>and</strong> we represent EUROPEN with<strong>in</strong> the Packag<strong>in</strong>g Work<strong>in</strong>g<br />
Group of Product Environmental Footpr<strong>in</strong>t pilot of the<br />
European Commission. In addition, we actively worked with<strong>in</strong><br />
the European Chamber of Commerce to create a jo<strong>in</strong>t <strong>in</strong>dustry<br />
position on the subject of packag<strong>in</strong>g bans <strong>and</strong> the enforced<br />
use of degradable packag<strong>in</strong>g.<br />
<strong>Nestlé</strong> also holds membership with AMERIPEN (the<br />
American Institute for Packag<strong>in</strong>g <strong>and</strong> the Environment) <strong>and</strong><br />
the Susta<strong>in</strong>able Packag<strong>in</strong>g Coalition (SPC), hav<strong>in</strong>g jo<strong>in</strong>ed <strong>in</strong><br />
November <strong>2015</strong>. AMERIPEN advocates for packag<strong>in</strong>g policy<br />
advancement <strong>in</strong> North America <strong>and</strong> takes a science-based,<br />
material-neutral approach to enc<strong>our</strong>age <strong>in</strong>formed decisionmak<strong>in</strong>g<br />
on packag<strong>in</strong>g <strong>and</strong> the environment by policy-makers<br />
<strong>and</strong> thought leaders.<br />
Several markets are also engaged <strong>in</strong> activities to educate<br />
consumers <strong>and</strong> establish collection <strong>and</strong> recovery <strong>in</strong>frastructure<br />
for used packag<strong>in</strong>g <strong>in</strong> emerg<strong>in</strong>g <strong>and</strong> developed countries, as<br />
outl<strong>in</strong>ed overleaf.<br />
<strong>Nestlé</strong> applications for bioplastics<br />
Generation Materials Possible applications Issues for <strong>Nestlé</strong> Timeframe<br />
Generation 1 Polylactic acid <strong>and</strong> starch<br />
blends derived from food<br />
crops such as corn.<br />
Twistwraps, yoghurt<br />
pots.<br />
Limited potential due to lack of moisture<br />
barrier, moisture <strong>and</strong> temperature<br />
sensitivity, process<strong>in</strong>g challenges <strong>and</strong> cost.<br />
Now<br />
Generation 2<br />
Generation 3<br />
Conventional plastics, e.g.<br />
PE, PET <strong>and</strong> PP, derived from<br />
renewable res<strong>our</strong>ces such as<br />
sugar cane.<br />
New bioplastics derived from<br />
s<strong>our</strong>ces not compet<strong>in</strong>g with<br />
food <strong>and</strong> animal feed<br />
(cellulose, wood, agricultural<br />
by-products, algae).<br />
Caps <strong>and</strong> <strong>in</strong>terior layer<br />
for beverage cartons,<br />
water bottles <strong>and</strong><br />
cereal boxes.<br />
Full <strong>Nestlé</strong> portfolio.<br />
Identical properties to materials currently<br />
used. Use limited by cost <strong>and</strong> supply (e.g.<br />
only one supplier of bio-PE <strong>in</strong> Brazil). Need<br />
careful assessment of environmental<br />
impacts <strong>and</strong> food security issues.<br />
Actively participat<strong>in</strong>g <strong>in</strong> research,<br />
development <strong>and</strong> validation. L<strong>and</strong> use<br />
must still be carefully scrut<strong>in</strong>ised.<br />
Now to 2016<br />
2016–2020<br />
7 A renewable or biobased res<strong>our</strong>ce is def<strong>in</strong>ed as ‘a material or res<strong>our</strong>ce that is<br />
composed of biomass from a liv<strong>in</strong>g s<strong>our</strong>ce <strong>and</strong> that can be cont<strong>in</strong>ually replenished’.<br />
Examples <strong>in</strong>clude trees, crops, grasses, algae or waste of biological orig<strong>in</strong>.<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> 187