Creating Shared Value. Dr. Claus Conzelmann, Nestlé

Transcription

1 Creating Shared Value Dr. Claus Conzelmann, Nestlé WWF One Planet Webinars 2degreesnetwork 15 January 2013

2 Context: Consumers Nutrition Health Wellness What s in my food? Responsible sourcing Where does it come from? Consumer preference How was it made? Environmental sustainability

3 Context: Scarcity

4 Environmental scarcities: Planetary Boundaries A safe operating space for humanity Rockström et al., Nature 461, (24 September 2009)

5 Societal Scarcities: Do we invest enough in farming?

6 3 Capitals: Financial + Societal + Natural Forum for the Future Jonathon Porritt Capitalism As If The World Matters

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8 Nestlé in Society

9 Three CSV focus areas at Nestlé Nutrition Water Rural Development

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12 Plant Proteins Improving Ingredient Impact & Nutrition Water consumption (m 3 ) Estimated water consumption for daily requirements of essential nutrients Africa S. America Plant proteins for affordable nutrition with lower environmental impact White niebé 21% protein Local sources of proteins Red niebé 25% protein Bambara beans 22% protein Chickpeas 22% protein Lentils 25% protein Quinoa 13% protein

13 Water Water efficiency Advocate for effective water policies Treat the water we discharge Engage with agricultural suppliers Raise awareness of water

14 From water shortage to food shortage If present trends continue... we could be facing annual losses equivalent to the entire grain crops of India and the US combined. Frank Rijsberman Former DG International Water Management Institute

15 Rural Development Crop Annual Production (Mt) Net Income (US$) Oil Palm 30 2,740 Rice 12 1,240 Cocoa Coffee Indonesian Farmers Source: Armajaro

16 Developing Sustainable Cocoa Sourcing Example Mexico: Reduce imports, increase competitiveness & preserve the heritage of Mexican cocoa Activities: Research programs with INIFAP and preserving germplasm of local hybrids since 1993 Technical Assistance and Field Schools

17 Responsible Sourcing: Aligned with Societal Trends Increasing resource scarcity Rising consumer / customer expectations Trends Stronger civil society activism / Social Media Increasing regulations/ standard complexity Triple Bottom Line Economic Development Economically viable business model along the value chain Growth & Environment Environmental Sustainability Environmental Impact of Business Activities Maximum Benefit Area Social & Environment Efficiency & Social Social Wellbeing Enterprise Impact on Staff / Society

18 Responsible Sourcing: Key to Delighting Consumers Farmer Connect Agriculture Procurement Manufacturing Supply Chain Marketing & Sales Consumer & Customer Farm/Feedstock Tier 1 suppliers Audit Program Nestlé Supplier Code Direct engagement with 670,000 farmers 17,000 support staff > third party audits Traceability Program Material-specific Responsible Sourcing Guidelines (RSGs) for high risk categories. 12 categories prioritized

19 Drivers for Sustainability Improvements Protecting Future Business Competitive Advantage Compliance

20 Competitive advantage by improving current business Drives Innovation & Renovation Growth driver Sustainability benefits as additional reason for consumers to prefer our products Enhances Brand Equity Cost savings Pay-back from energy & waste reduction Efficiency programmes (Lean, War on Waste) Capital Investment

21 Will the «Business Case» get us all the way to Sustainability? Protecting Future Business Competitive Advantage Contributes to Sustainability Compliance

22 Potential Sustainability Gap Protecting Future Business Competitive Advantage Contributes to Sustainability Compliance

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24 Decoupling growth from resource use: Carbon intensity improved 5% per year % Index % -12% -17% -28% % Total production volume Total water withdrawal Direct GHG emissions Total on-site energy consumption Total water discharge Waste for disposal

25 CDP 2012: Joint # 1

26 Major Impacts are Upstream & Downstream Absolute Change Production +73% Water -27% Waste -12% GHG -17% Agriculture & Materials Factories Logistics Consumer Use

27 From Company to Product Life-cycle view Raw Manufacturing/ materials Packaging Consumer Waste recovery: Positive effects Humbert S, Loerincik Y, Rossi V, Margni M and Jolliet O (2009). Life cycle assessment of spray dried soluble coffee and comparison with alternatives (drip filter and capsule espresso). Journal Cleaner Production

28 Soluble coffee is more resource-efficient

29 Minimising Waste in the Value Chain Food Waste Developing world: 630 mn Tonnes 40% in post-harvest & processing Developed world: 670 mn Tonnes 40% in retail & by consumer Minimise Food Loss Yields Variety Damage Spoilage resistance Production Yields Damage Spoilage Shelf life Damage Spoilage Shelf life Portions Portions Methods Versatility Yields Re-value Bioavailability Limits to Resources Optimise Resources Water Agriproducts Methods Transport Water Energy Technology Packaging material Kg/kg Distance Density Weight Energy Water Re-use Re-value Recycle

30 Brands communicate sustainability

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34 Detailled Information Beyond the Label

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36 Partner & Engage

37 Delighting our Consumers with products that: are tastier & healthier create value for society preserve natural resources for future generations = GOOD FOOD, GOOD LIFE More at: