The Future of Sustainability Reporting in the Food Processing Sector, Presented by Conzelmann

The Future of Sustainability Reporting in the Food Processing Sector

Dr. Claus Conzelmann

Vice President – Head of Safety, Health & Environmental Sustainability

Nestlé

Challenges

• Global environmental awareness is growing

• Consumers are increasingly interested in understanding how the food they eat is produced

• Improving stakeholder understanding of issues specific to the food processing sector

• Enabling better benchmarking of companies within the food processing sector

2 28 May 2010 GRI International Conference

Survey from GRI


Key benefits of FPSS beyond G3

Food specific focus on

• Health & Nutrition

Enhanced guidance on

• Sourcing of agricultural raw materials

• Biodiversity and Ecosystem Services


Nestlé Nutritional Compass®


Sourcing & biodiversity

Quality means more at Nestlé

Ensuring full traceability of raw and

packaging materials

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Nestlé calling for a moratorium on deforestation of tropical rainforests

28 May 2010 GRI International Conference

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Our learnings from the FPSS process

• Promoted broad internal multi-stakeholder discussions

• Triggered more systematic review of our own sustainability performance

• Helped to identify additional improvement opportunities

• Provided guidance for future direction on sustainability reporting

• Enabled clearer communication about “doing the right thing” to reduce environmental impacts and engaging stakeholders in discussing dilemmas we’re facing.


A value chain perspective


Customer Distribution Packaging Raw MaterialManufacturingConsumer Manufacturing

10-40% ≈10% 10-20% 10-20% 30-40%

Environmental impact along the value chain

≈10%

Environmental Impact of Filter vs Instant Coffee

• Instant coffee has about 50% less environmental impact than filter coffee

• Plus further energy savings opportunities at consumer level

Raw materials

Waste recovery:

Positive effects

Manufacturing/Packaging Consumer


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Activity-based costing: apply proven financial accounting methodology to environmental costs

Enterprise expenses to individual product costs Enterprise expenses to individual product costs

ExpensesExpenses

Properties People Capital Technology

ActivitiesActivities

Collect PaymentProcess Order

ProductsProducts

Product


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Activity-based costing: apply proven financial accounting methodology to environmental costs

Enterprise footprint to individual product or service footprintEnterprise footprint to individual product or service footprint

EnterpriseEnv. FootprintEnterpriseEnv. Footprint

LifeCycleStages

LifeCycleStages

ProductsProducts

Product

SupplySupply ProductionProduction ShippingShipping Retail / Home StorageRetail / Home Storage End of LifeEnd of Life

Energy Raw materials Packaging

Enterprise expenses to individual product costs Enterprise expenses to individual product costs

ExpensesExpenses

Properties People Capital Technology

ActivitiesActivities

Collect PaymentProcess Order

ProductsProducts

Product


Nestlé 2009 CSV Report (GRI B+ level)Two versions: on-line and hardcopy (summary)


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Nestlé CSV Reports in coming years

• Reporting FPSS indicators.• Disclosing more GRI G3 indicators: more transparent reporting.

Benefits• Stakeholders develop a better understanding of our business,

incl. risks and opportunities

• Feedback from better informed stakeholders will help us to drive « Nestlé Continuous Excellence »

• Advancing the concept that businesses must create value for shareholders and society (incl. future generations) simultaneously to be successful in the long term.


The Future of Sustainability Reporting in the Food Processing Sector, Presented by Conzelmann

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Transcript of The Future of Sustainability Reporting in the Food Processing Sector, Presented by Conzelmann