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-EN20<br />
• In <strong>2015</strong>, <strong>Nestlé</strong> Italy (food) purchased about 110 000 GJ of<br />
green electricity. This cost an extra CHF 23 200, but about<br />
11 000 tonnes of CO 2 eq emissions were avoided as a result;<br />
<strong>and</strong><br />
• <strong>Nestlé</strong> Brazil also started to procure renewable electricity<br />
for 14 of its sites <strong>in</strong> <strong>2015</strong> through power purchase<br />
agreements, cover<strong>in</strong>g almost 50% of their electricity<br />
consumption <strong>and</strong> cutt<strong>in</strong>g emissions by more than 20 000<br />
tonnes of CO 2 eq. The electricity comes from a variety of<br />
s<strong>our</strong>ces <strong>in</strong>clud<strong>in</strong>g small hydropower plants, solar, biomass<br />
<strong>and</strong> w<strong>in</strong>d farms. More sites will switch to renewable<br />
electricity dur<strong>in</strong>g 2016.<br />
Pur<strong>in</strong>a moves towards<br />
renewables <strong>in</strong> the United States<br />
At <strong>Nestlé</strong> Pur<strong>in</strong>a, we use renewable energy at <strong>our</strong><br />
manufactur<strong>in</strong>g facilities to help improve <strong>our</strong> performance. In<br />
the United States, more than 20% of the total electricity used<br />
by <strong>our</strong> PetCare plants came from renewable res<strong>our</strong>ces, such as<br />
solar, w<strong>in</strong>d <strong>and</strong> hydroelectricity, <strong>and</strong> we aim to procure at least<br />
35% renewable electricity at all production plants by 2020.<br />
To help us achieve <strong>our</strong> aims:<br />
• The solar arrays we have <strong>in</strong>stalled at five locations generate<br />
more than 1 MW of solar power a year, some of which is<br />
returned to local utility companies;<br />
• Our Dunkirk, New York, factory derives about 70% of its<br />
total electricity from renewable s<strong>our</strong>ces, mostly as<br />
hydroelectric power from Niagara Falls;<br />
• Each month, <strong>our</strong> Flagstaff, Arizona, pet food factory<br />
purchases ‘green blocks’ of electricity from its local utility<br />
to support the generation of renewable energy <strong>in</strong> the region;<br />
<strong>and</strong><br />
• We use cogeneration – the production of two types of<br />
energy – to provide a portion of the electricity needed by<br />
<strong>our</strong> factory <strong>in</strong> Maricopa, California.<br />
We are also mak<strong>in</strong>g improvements to <strong>our</strong> factories <strong>and</strong><br />
adm<strong>in</strong>istrative build<strong>in</strong>gs, such as migrat<strong>in</strong>g to more energyefficient<br />
LED light<strong>in</strong>g, optimis<strong>in</strong>g HVAC (heat<strong>in</strong>g, ventilation<br />
<strong>and</strong> air condition<strong>in</strong>g) systems <strong>and</strong> <strong>in</strong>stall<strong>in</strong>g low-water-use<br />
fixtures.<br />
Such efforts have seen <strong>Nestlé</strong> Pur<strong>in</strong>a ga<strong>in</strong> LEED (Leadership<br />
<strong>in</strong> Energy <strong>and</strong> Environmental Design) certifications at St Louis,<br />
Miss<strong>our</strong>i (Gold), Gray Summit, Miss<strong>our</strong>i <strong>and</strong> Oklahoma City,<br />
Oklahoma (both Silver), <strong>and</strong> receive the US EPA’s ENERGY<br />
STAR Certification for one of the build<strong>in</strong>gs at its St Louis<br />
headquarters.<br />
electricity to power more than 1000 households. This<br />
electricity will be fed <strong>in</strong>to the Swiss national grid, while the<br />
heat will be piped to the bottl<strong>in</strong>g plant.<br />
Meanwhile, <strong>our</strong> Toluca coffee plant near Mexico City was<br />
the first <strong>in</strong> the country to create steam from biomass. The<br />
atmospheric fluid bed boiler, operational s<strong>in</strong>ce 2012, provides<br />
a susta<strong>in</strong>ably managed use for around 54 000 tonnes of spent<br />
coffee grounds each year. It has reduced GHG emissions by<br />
23% <strong>and</strong> means that over half of the factory’s steam<br />
requirements come from a renewable energy s<strong>our</strong>ce.<br />
Similarly, at <strong>our</strong> Araras plant <strong>in</strong> São Paulo, we use the coffee<br />
grounds from the production of Nescafé as biomass to<br />
produce energy for the factory. The material is pressed to<br />
reduce moisture, mixed with small pieces of wood <strong>and</strong> burned<br />
<strong>in</strong> a boiler, generat<strong>in</strong>g steam for the factory. What rema<strong>in</strong>s<br />
(about 3%) is composted <strong>and</strong> turned <strong>in</strong>to organic fertiliser. This<br />
process saves electricity, reduces the disposal of solid waste<br />
<strong>and</strong> avoids more than 20 000 tonnes of CO 2 emissions.<br />
Us<strong>in</strong>g natural refrigerants<br />
Refrigeration fluids based on hydrofluorocarbons (HFCs) are<br />
widely used throughout <strong>in</strong>dustry but are known to contribute<br />
to climate change. However, non-HFC refrigerants – natural<br />
alternatives, <strong>in</strong>clud<strong>in</strong>g CO 2 , ammonia, water <strong>and</strong> air, <strong>and</strong><br />
hydrocarbons (HCs), such as propane <strong>and</strong> iso-butane – do not<br />
harm the ozone layer <strong>and</strong> have negligible or no global warm<strong>in</strong>g<br />
effects.<br />
We have committed to use safe natural refrigerant alternatives<br />
for <strong>in</strong>dustrial refrigeration <strong>in</strong>stallations <strong>and</strong> implement new<br />
solutions to improve their performance. This has <strong>in</strong>cluded<br />
assess<strong>in</strong>g the safety risk of HC refrigerants, the results of which<br />
were published <strong>in</strong> the International J<strong>our</strong>nal of Refrigeration.<br />
Investigations such as these have enabled us to commit to phase<br />
out some HFC refrigerants <strong>and</strong> <strong>in</strong>troduce natural refrigeration<br />
ahead of the timescales imposed by regulation.<br />
Our objectives<br />
By 2016 – Exp<strong>and</strong> the use of natural refrigerants, which<br />
do not harm the ozone layer <strong>and</strong> have a negligible impact<br />
on climate change, <strong>in</strong> <strong>our</strong> <strong>in</strong>dustrial refrigeration systems.<br />
Industrial refrigeration systems us<strong>in</strong>g natural refrigerants<br />
(%)<br />
<strong>2015</strong> 91<br />
2014 92<br />
2013 93<br />
Us<strong>in</strong>g by-products as energy s<strong>our</strong>ces<br />
In Switzerl<strong>and</strong>, <strong>Nestlé</strong> Waters has been collaborat<strong>in</strong>g with a<br />
Swiss company specialis<strong>in</strong>g <strong>in</strong> renewable energy systems to<br />
construct an agricultural biogas facility at Vaud to provide<br />
renewable energy for <strong>our</strong> Henniez bottl<strong>in</strong>g plant. The plant,<br />
due to open at the beg<strong>in</strong>n<strong>in</strong>g of 2016, will process almost<br />
25 000 tonnes of manure a year from 26 local farms, as well as<br />
coffee grounds from Nescafé <strong>and</strong> Nespresso production <strong>and</strong><br />
recycl<strong>in</strong>g sites across Switzerl<strong>and</strong>, <strong>and</strong> generate enough<br />
By 2017 – All <strong>our</strong> new refrigerated trucks will use natural<br />
refrigerants.<br />
By 2020 – All new proprietary cold beverages dispensers<br />
of <strong>Nestlé</strong> Professional will use natural refrigerants.<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> 211