Nestlé in society Creating Shared Value and meeting our commitments 2015

Nestlé in society:
Creating Shared Value
Nutrition, health
and wellness Rural development Water
Environmental
sustainability
Human rights
and compliance
Our
people
G4-EN19, Transport G4-DMA, G4-EN30
The latest route launched under the Marco Polo scheme is
the Green Alpes project, which has demonstrated the benefits
of distributing products between Italy and France by train. By
working with local rail companies, Nestlé Waters France, CPW
Italy and NPPIT have been able to exploit internal synergies by
providing only Nestlé goods for distribution on ‘company’ trains.
This should take 2800 trucks off the road, avoiding 2.3 million
kg of CO 2 emissions and saving EUR 750 000 (CHF 900 000).
In particular, Nestlé Waters relies heavily on the rail network
for efficient long-distance transportation. In 2014, around 30%
of its European distribution was by rail, including 43% (by
volume) of all water products in Italy and 33% in the UK.
Nestlé Waters constantly reviews opportunities to shift to rail
transport, and achieved a 10% improvement in the carbon
efficiency of its transport since 2010.
And in Japan, Nestlé has been partnering with shippers and
logistics providers to shift from road to rail transport and
shipping. Outbound logistics began using rail transport in 2010
and we have promoted a full-scale modal shift since 2011,
earning the Deputy Vice-Minister for Logistics Policy Award
under the Excellent Green Logistics Commendation
Programme in 2015.
Sea freight: a winning formula
in Thailand
For Nestlé Waters in Thailand, distribution to the country’s
southern region had previously involved 18-wheeler trucks and
trailers driving from the Ayutthaya factory to Surat Thani
province. But the costly 1000 km journeys took three days and
sometimes, in the rainy season, flooded roads prevented trips
altogether.
To increase market competitiveness and improve customer
service, we opened a Regional Distribution Centre (RDC) in
Surat Thani, the final destination of our traditional overland
deliveries. Wary of the weather-related delays we had previously
suffered, we also replaced road transportation with sea freight,
reducing our carbon footprint. This approach also cut overall
costs by more than 15% – approximately CHF 1 million.
Most importantly, with stock readily available in our RDC,
this sustainable distribution approach has cut typical transit
times to customers from days to hours. This gives us a crucial
edge when it comes to sales and enables Nestlé to continue
growing in the region.
Cumulative GHG savings by modal shift from road to rail/
short sea, global estimates (tonnes of CO 2 eq saved)
2014 225 000 *
2013 151 000
2012 157 000
*
The 2014 figures are the latest available at the time of publication.
Cumulative GHG savings per tonne of product by modal
shift from road to rail/short sea, global estimates (%)
2014
2013
2012
5
5
7 *
*
The 2014 figures are the latest available at the time of publication.
Fleet vehicles
We currently run a fleet of around 2000 trucks for ice cream
and pizza deliveries. A variety of technology is used for the
freezer cabinets, while our newer trucks now use eutectic
freezer plates, which are cooled down overnight while the
vehicle is stationed at the distribution centre.
The roll-out of telematics, such as GPS systems, on our
vehicles is ongoing. In the United States, the telematics idle
programme in our ice cream business was intended to cut our
trucks’ idling time by 25%, but it has actually reduced idling by
31% over two years, saving 200 000 gallons of fuel.
We are also continuing to expand driver training from both a
safety and environmental efficiency perspective. Read more
about driver training.
Using alternative fuels
As part of our efforts to reduce GHG emissions, we continue
to explore the viability for using cleaner fuels. For instance:
• Nestlé Waters North America now uses 28 trucks powered
by propane gas and plans to increase that number
significantly in 2016 to more than 200;
• In Italy, Nestlé Waters made an agreement with its carrier to
buy 10 liquified natural gas (LNG) trucks to transport Nestlé
Waters’ goods; and
• Nestlé Waters Thailand has a programme to increase its
fleet of four natural gas powered trucks.
In this extremely price-sensitive and competitive
commodity market, especially in traditional trade in
the south of Thailand, the difference between
making and losing a sale is often decided by how
quickly our distribution network can reach the food
courts and ‘mom and pop’ neighbourhood stores
before our competitors.”
Yimin Wu, Operations Manager, Nestlé Waters
Thailand
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