the future of sustainability reporting in the food processing sector, presented by conzelmann
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Presented by ConzelmannTRANSCRIPT
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The Future of Sustainability Reporting in the Food Processing Sector
Dr. Claus Conzelmann
Vice President – Head of Safety, Health & Environmental Sustainability
Nestlé
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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
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Survey from GRI
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Key benefits of FPSS beyond G3
Food specific focus on
• Health & Nutrition
Enhanced guidance on
• Sourcing of agricultural raw materials
• Biodiversity and Ecosystem Services
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Nestlé Nutritional Compass®
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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
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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.
28 May 2010 GRI International Conference
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A value chain perspective
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Customer Distribution Packaging Raw MaterialManufacturingConsumer Manufacturing
10-40% ≈10% 10-20% 10-20% 30-40%
Environmental impact along the value chain
≈10%
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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
28 May 20109 GRI International Conference
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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
28 May 2010 GRI International Conference
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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.
28 May 2010 GRI International Conference