final Nestle CSR
- 1. “Good Food Good Life” The Nestlé approach to Sustainability Creating Shared Value
- 2. • Founded 1866 in Switzerland • “think globally and act locally” • Nutrition, Health and Wellness Company • Strong portfolio of brands and innovations driving growth • 480 factories; about half in developing countries ,276 050 employees • Fortune global 500 listing , World's most profitable corporation • Dow Jones sustainability rankings, Top performer food organisation Facts about Nestlé: World’s Largest Food & Beverage Company
- 3. Nestle Controversies • Aggressive promotion of Infant milk Formula Caused replacement of breast milk • Coco Pops Advertisement on children's channels Promotion of An unhealthy breakfast • Unethical Procedures in developing countries Unfair trade practices e.g. COCOA , Maggie India Raw Material, Labour Issues, Misleading Advertising
- 4. Child Labour/ Low wages to the workers Palm Oil Animal Abuse
- 5. Creating Shared Value - 3 Focus areas Value for Society: rural development; reduced impact on energy/water availability/waste/packaging Value for Nestlé: sustainable profitable growth by meeting increasing demand, risk and cost reduction
- 6. Environmental Sustainability Water Usage • Water usage reduced by 58%, 1999-2008 • 68% Production increased • Value for Society – Reduced impact on water availability/ waste / packaging/vocal advocacy • Value for Nestle - risk and cost reduction Energy Emissions • Energy consumption down 47% per tonne • GHG emissions down 52% per tonne of product 1998 – 2007 • Value for Society – Reduced Carbon Footprint • Value for Nestle - risk and cost reduction
- 7. Environmental Sustainability - Packaging Value for Society: reduced impact on waste/packaging Value for Nestlé: risk and cost reduction
- 8. Rural Development :- agriculture/sourcing and training Regional Development Centres • Value for Society: knowledge sharing, improved agricultural & water management practices • Value for Nestlé: quality supplies from motivated, enabled farmers Creating Shared Value with coffee farmers • Direct purchasing • AAA Sustainable Quality™ Programme • Value for Society: coffee farmers grow income, farm more sustainably • Value for Nestlé: quality supplies from motivated, enabled farmers
- 9. Rural Development : Opening Milk Districts
- 10. Nestlé's various Industries Providing Shared value and Nutrition • Product innovation/renovation • Health benefits: Branded Active Benefits • Micronutrients: vitamins, minerals and trace elements • Reducing: Trans fatty acids, Salt, Sugar Content removed Value for Society: improved access to quality, scientifically enhanced nutrition products Value for Nestlé: income growth opportunity Wellness and health for School Children Nutrition education to children Reaching out to community and kids (ROCKS) - Nestles 2005 Initiative
- 11. Increasing suppliers income and bringing micronutrient fortification • Micro- entrepreneurs • Affordable fortified milks, nutritional sachets Value for Society: income creation, Skills transfer, microfinance, micronutrient fortification Value for Nestlé: route to market growth Providing training to other SME’s in the food industry Value for Society: Skill Transfer, reduce obesity, nutritious and hygienic products Value for Nestlé: route to market growth, Competitive advantage
- 13. Nestle Carbon Footprint • Climate Disclosure Leadership Index Award • Disclosure and performance In Carbon Disclosure Project (CDP) Investor programme • Producers’ list by Dow Jones Sustainability Index, for their initiative in decreasing and carbon outflows • Reduction of GHG emissions by 24% during the period of 2002 till 2012 • Nestle switched to Natural resources and cleaner fuels to improve energy proficiency • In 2015 will further reduce the GHG discharges per tonne of product by 35% • Nespresso agro-forestry programme- The planting of trees offers a way for the company to compensate the carbon footprint within its own value chain