Nestlé Striving for Sustainability Management 120 May 28th, 2011

From Its Early Beginnings… Company Mission: “To provide customers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night” Founded in 1866 by Henri Nestlé in Velvey, Switzerland The company’s initial success was driven by Henri Nestlé’s search for a both a healthy and economical alternative for infants who’s mothers were unable to breastfeed Innovation and nutrition were concepts important to the company from the start

… To Its Current Successes Nestlé currently has about 280,000 employees Operates in almost every country in the world, with a total of 443 factories Nestlé has acquired many popular brands since its humble 1866 beginnings. Here are some you should recognize:

Creating Shared Value (CSV) Nestlé has adopted a business plan that focuses on “Creating Shared Value”: creating value for both its shareholders and society The company explains its reasoning behind this new business plan objective, stating: “In order to create long-term value for shareholders, we have to create value for society. But we cannot be either environmentally sustainable or create shared value for shareholders and society if we fail to comply with our Business Principles.”

Creating Shared Value Nestlé believes that there are 3 areas in which they have the greatest potential to create value for society: Nutrition Water and Environmental Sustainability Rural Development Nestlé has chosen to focus on these 3 main areas because each area represents a key component to the business plan at Nestlé, and each area is also an essential part of life for the people who live in the countries in which Nestlé operates.

CSV: Water & Environmental Sustainability Nestlé invested over $204 million during 2010 in environmental sustainability programs By applying a Life Cycle Approach to its products, Nestlé is able to evaluate the impact of its operations on the environment by tracing its product’s entire life cycle. Nestlé is continually finding ways to cut the company’s water consumption, CO2 emissions, and researching alternative uses for the byproducts created by its operations.

CSV: Water & Environmental Sustainability Energy Saving Equipment Nestlé has increased its investment in energy-saving projects and renewable energy solutions substantially For example: At one of Nestlé’s production plants in Germany, they have partnered with a neighboring industrial site in order to reduce the plant’s natural gas consumption by more than 60% per year, while also saving tons (literally) of CO2. Since 2000, Nestlé has increased its production volume by 73%, while also managing to reduce its overall energy consumption (worldwide) by 3%

CSV: Water & Environmental Sustainability Optimizing Packaging In order to reduce the environmental footprint of its products’ packaging, Nestlé has created the “4R” approach, which is compromised of: Reducing the weight and volume of packaging materials Use packaging materials that are made from sustainably managed Renewable resources Support Recycling or Recovering energy from used packaging (i.e.: informing consumers that packaging is recyclable by use of recycling symbols, and encouraging consumers to recycle through recycling programs) Using Recycled materials, when applicable, in creating packaging

Case Study (1): Nestlé Bottling Facility, PA In 2009, the Nestlé Pure Life water bottling facility in Breinigsville, PA received the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) Gold certification First food manufacturing facility in PA to receive the Gold certification LEED – an internationally recognized green building certification system. It measures how well a building performs with regard to sustainability. Measurements include: Energy Savings CO2 Emission Reduction Water Efficiency

Case Study (1): Nestlé Bottling Facility, PA The design of the facility’s building Saves enough energy every year to heat 125 homes for one season Conserves about 220,000 gallons of water each year This is 55% more than what the Environmental Protection Agency requires Reduced construction waste by about 75% This is the same as the weight of 2,300 cars Nestlé has 5 other facilities that are LEED certified throughout North America. They are located in: California Michigan Florida Texas Tennessee

Case Study (2): Nestlé Purina PetCare, MO In 2008, Nestlé Purina PetCare’s office, headquartered in St. Louis, MO was named one of St. Louis Business Journal’s finalists of the Hero of the Planet Award, for Sustainable Operations In 2007, Nestlé Purina, which is located on 55 acres of land, reduced its overall energy usage by 7-10% The office has a building management system that allows employees to monitor the company’s live energy consumption

Case Study (2): Nestlé Purina PetCare, MO Nestlé Purina installed energy-efficient light bulbs throughout its office With 12,900 light fixtures, it had a huge impact on the company’s energy consumption. In the end, the installation of energy-efficient light bulbs reduced the company’s lighting energy consumption by a whopping 50%! Water-efficient toilets were also installed in all 121 of the office’s restrooms This reduced the gallons used per flush by 65% The old toilets used 4.5 gallons/flush, while the new toilets use only 1.6 gallons/flush That’s a savings of almost 3 gallons, for each flush of a single toilet!

Case Study (2): Nestlé Purina PetCare, MO Nestlé Purina replaced the dark roofs on some of its buildings with reflective light-colored roofs, which will help to reduce energy A five acre park with 3 lakes and drought-tolerant plants (which will help to absorb heat), exists where a huge parking lot used to be The company’s housekeeping contractor previously used 15 cleaners that were made up of toxic chemicals. Now the housekeeping contractor is required to use only 2 cleaners, both of which are non-toxic.

Works Cited History of Nestlé Brands Creating Shared Value http://www.nestle.com/AboutUs/History/Pages/Histor y.aspx http://www.nestle.com/AboutUs/Pages/AboutUs.aspx Brands http://www.nestle.com/AboutUs/OurBrands/Pages/Ou rBrands.aspx Creating Shared Value http://www.nestle.com/CSV/CreatingSharedValueAtNe stle/Pages/CreatingSharedValue.aspx http://www.reuters.com/article/2011/03/22/philanthrop y-corporate-idUSN2214666620110322

Works Cited (Continued) Creating Shared Value (Continued) http://www.nestle.com/CSV/WaterAndEnvironmentalSustai nability/OptimisingPackaging/Pages/OptimisingPackaging.a spx http://www.nestle.com/CSV/WaterAndEnvironmentalSustai nability/ImprovingEnergyEfficiency/Pages/ImprovingEnergy Efficiency.aspx Case Study (1): Nestlé Bottling Facility, PA http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988 http://www.press.nestle-watersna.com/press/Nestle-Waters- North-America-Facility-Earns-U-S-Green-Building-Council’s- Gold-Standard-for-Sustainabi.htm

Works Cited (Continued) Case Study (2): Nestlé Purina PetCare, MO http://www.bizjournals.com/stlouis/stories/2008/10/27/ focus8.html