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-EC2, Energy G4-DMA, Emissions G4-DMA, G4-EN15, G4-EN16, G4-EN17, G4-EN19, G4-EN20<br />
Indirect GHG emissions<br />
GHG emissions arise from the generation of electricity, hot<br />
water <strong>and</strong> steam purchased by <strong>Nestlé</strong> or otherwise brought<br />
with<strong>in</strong> <strong>our</strong> organisational boundaries. They physically occur at<br />
the facility where the electricity, hot water or steam is<br />
generated. Typically, publicly available country-specific default<br />
factors are used to calculate this, from the purchased energy<br />
quantities. This <strong>in</strong>dicator corresponds to Scope 2 of the WRI/<br />
WBCSD GHG Protocol.<br />
In <strong>2015</strong>, <strong>our</strong> <strong>in</strong>direct GHG emissions, derived from<br />
purchased energy, was 3.7 million tonnes of CO 2 eq. Despite a<br />
4% <strong>in</strong>crease <strong>in</strong> <strong>our</strong> use of renewable electricity, the <strong>in</strong>direct<br />
GHG emission rate per tonne of product decreased by 3.3% to<br />
68 kg of CO 2 eq. This is ma<strong>in</strong>ly due to <strong>our</strong> growth <strong>in</strong> Ch<strong>in</strong>a<br />
where coal is commonly used to produce electricity.<br />
Indirect GHG emissions (million tonnes of CO 2 eq)<br />
<strong>2015</strong> 3.7<br />
2014 3.8<br />
2013 3.8<br />
Indirect GHG emissions per tonne of product<br />
(kg of CO 2 eq)<br />
<strong>2015</strong> 68<br />
2014 71<br />
2013 73<br />
Switch<strong>in</strong>g to renewable energy<br />
We cont<strong>in</strong>ue to develop ways of us<strong>in</strong>g a range of by-products,<br />
such as wood chips <strong>and</strong> spent coffee grounds, as well as<br />
w<strong>in</strong>d, solar, hydroelectric <strong>and</strong> geothermal power as renewable<br />
energy s<strong>our</strong>ces.<br />
Wood represents 29.1% of <strong>our</strong> renewable energy mix,<br />
compared with 21.4% for spent coffee grounds. We also<br />
purchased a quarter (25.1%) of <strong>our</strong> electricity (6.9 petajoules)<br />
from renewable s<strong>our</strong>ces, compared to 20.6 petajoules from<br />
non-renewable s<strong>our</strong>ces.<br />
We have committed to hav<strong>in</strong>g a strategy to procure 100%<br />
of <strong>our</strong> electricity from renewable s<strong>our</strong>ces with<strong>in</strong> the shortest<br />
practical timescale. Renewable energy currently accounts for<br />
15.4% of the total on-site energy consumed by <strong>our</strong> factories.<br />
We have actively participated <strong>in</strong> the UN Global Compact<br />
<strong>and</strong> jo<strong>in</strong>ed the RE100 <strong>in</strong>itiative, launched <strong>in</strong> 2014 to engage,<br />
support <strong>and</strong> showcase <strong>in</strong>fluential companies committed to<br />
us<strong>in</strong>g 100% renewable power. Led by The Climate Group <strong>in</strong><br />
partnership with CDP, RE100 works to address barriers to the<br />
widescale adoption of renewables <strong>and</strong> to develop transparent<br />
report<strong>in</strong>g mechanisms. Dur<strong>in</strong>g <strong>2015</strong>, <strong>Nestlé</strong> participated <strong>in</strong><br />
workshops <strong>in</strong> India <strong>and</strong> Ch<strong>in</strong>a.<br />
Further <strong>in</strong>formation about <strong>our</strong> efforts to reduce GHG<br />
emissions can be found <strong>in</strong> Provid<strong>in</strong>g climate change<br />
leadership <strong>and</strong> Transport <strong>and</strong> distribution.<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 have been restated due to more complete data.<br />
Total on-site energy consumption from renewable s<strong>our</strong>ces<br />
(%)<br />
<strong>2015</strong> 15.4<br />
2014 14.7<br />
2013 13.6*<br />
*<br />
The 2013 figure has been restated due to more complete data.<br />
Renewable energy s<strong>our</strong>ces<br />
Identify<strong>in</strong>g alternate, renewable s<strong>our</strong>ces of energy has become<br />
an important aspect of improv<strong>in</strong>g <strong>our</strong> environmental<br />
performance, avoid<strong>in</strong>g the use of fossil fuels <strong>and</strong> provid<strong>in</strong>g a<br />
reliable s<strong>our</strong>ce of power <strong>in</strong> locations where access to other<br />
s<strong>our</strong>ces of energy are limited or <strong>in</strong>secure, such as Pakistan.<br />
In <strong>our</strong> dairy hub collection centres, the un<strong>in</strong>terrupted<br />
operation of milk chillers is vital for ensur<strong>in</strong>g the consistent<br />
quality of fresh milk. These are usually run on electricity from<br />
the national grid, with diesel generators as a back-up, but with<br />
the energy crisis <strong>in</strong> the country affect<strong>in</strong>g supplies from the<br />
grid, <strong>Nestlé</strong> Pakistan explored the option of solar panels for<br />
operational reliability. In a country like Pakistan, where there is<br />
an abundance of sunlight throughout the year, switch<strong>in</strong>g to<br />
solar energy has a range of benefits; these <strong>in</strong>clude reduc<strong>in</strong>g<br />
the cost of runn<strong>in</strong>g back-up generators <strong>and</strong> need<strong>in</strong>g fewer<br />
mechanical spare parts. As a pilot for <strong>in</strong>troduc<strong>in</strong>g a solar<br />
energy system, two milk collection centres with 1000-litre<br />
chillers were <strong>in</strong>itially selected <strong>in</strong> 2013. Eight more solar energy<br />
systems were <strong>in</strong>stalled at milk collection centres <strong>in</strong> 2014 <strong>and</strong> a<br />
further 23 solar units were added <strong>in</strong> <strong>2015</strong>.<br />
Meanwhile, at <strong>Nestlé</strong> Waters, we have worked with a Swiss<br />
company specialis<strong>in</strong>g <strong>in</strong> renewable energy systems, on a<br />
project that uses geothermal heat from the local ‘s<strong>our</strong>ce aux<br />
croix’. The natural heat created by the s<strong>our</strong>ce of the m<strong>in</strong>eral<br />
water br<strong>and</strong> Cristalp, which emerges from the ground at 25°C,<br />
is used to heat <strong>our</strong> bottled water factory <strong>and</strong> some of the local<br />
municipal build<strong>in</strong>gs. This has enabled the factory to run on<br />
100% renewable energy s<strong>in</strong>ce October 2014, a first for <strong>Nestlé</strong><br />
Waters. The project currently produces 0.8 GWh of energy per<br />
year <strong>and</strong> <strong>in</strong> the near future, the site is expected to produce<br />
more energy than it will use.<br />
Additionally:<br />
• In Spa<strong>in</strong>, we s<strong>our</strong>ced 123.7 MWh of electricity from<br />
renewable power s<strong>our</strong>ces, supported by Green Energy<br />
Certificates. This enabled us to avoid more than 20 000<br />
tonnes of CO 2 eq emissions compared with electricity<br />
produced from fossil fuels;<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> 210