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Session 1-1-duncan-pollard-the-business-case-for-sustainable-practice-1462

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Duncan Pollard discusses the business case for sustainable palm oil.

Duncan Pollard discusses the business case for sustainable palm oil.

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Session 1-1-duncan-pollard-the-business-case-for-sustainable-practice-1462 Session 1-1-duncan-pollard-the-business-case-for-sustainable-practice-1462 Presentation Transcript

  • The Business Case forSustainable Practice:Protecting our NaturalAssetsDuncan PollardSustainability AdvisorSymposium – Sustainable Palm Oil:Challenges, a Common Vision and theWay ForwardLondon 5th May 2011
  • The Sustainability Journey Business Case Risk Management Values Driven2
  • Business Sustainability The Needs of Society Limits/Access to Resources 2500 Mn without improved sanitation Natural capital & Ecological limits 1400 Mn in poverty & food insecure Biodiversity, water, soil, the atmosphere 1000 Mn without clean water Land allocation & productivity 215 Mn child labourers Peak oil, water tables, bee populations 51 Mn: born/yr with no birth certificate Wild harvested populations3
  • Demographic & Income Change >30,000 US$/Cap 22,000-30,000 14,000-22,000 3,000-14,000 < 3,0004
  • Growing Middle ClassPremiumisationMainstreamEmerging5
  • Customers looking at brands more holistically Nutrition Health Wellness What’s in my food? Responsible Environmental sourcing Consumer sustainability preference Where How does it was it come from? made? 6
  • Consumer Trust7
  • Tastier and Healthier, And so Much More 8
  • Palm Oil China Indonesia Rest of World 13% 13% 37% EU 25 Malaysia India 12% 8% 11% US Pakistan 1% 5%
  • Biodiversity loss as a threat to business growthCEOs extremely or somewhat concerned PricewaterhouseCoopers 13th Annual Global CEO Survey 201010
  • The Sustainability Journey Business Case Risk Management Values Driven Mindset Laggards are Punished Organisation Innovators are not Rewarded Tools & Processes11
  • Nestlé Products and BrandsBillionaire Brands 10,000 different products7% organic growth in 2010 1 billion products sold every day200 different blends of Nescafé to meet local tastes Poland Europe Malaysia Africa,Greece Switzerland Japan Russia Russia, Israel12
  • Agricultural Commodities Procurement from 5Mn+ Farmers Direct Procurement from Farmers Direct Procurement from 560,000 Farmers13
  • 14
  • Nestlé Actions • Suspended Purchases from Golden Agri • Policy commitment to tackle deforestation, and to focus on high carbon soils/forests • Introduced a Responsible Purchasing Guideline for Palm Oil & Pulp • Partnered with The Forest Trust15
  • Responsible Sourcing Guidelines
  • Biodiversity Draft) Position onNestlé (FinalDeforestation & Forest Stewardship Nestlé will ensure that all its raw material sourced from forested areas: • Has not led to deforestation • Has not led to loss of high conservation values • Complies with Nestlé Supplier Code • - legal, human rights & working practices • Creates Shared Value for society and local communities • - delivers rural development & small holder benefits • - water stewardship plans
  • Supply Chain Mapping …and Supporting our Suppliers Supply Assessments
  • The Future for Sustainable Palm Oil RSPO & Others - Continuous improvement : carbon... - Differentiation Context: Landscape Level Spatial Planning The Bigger Picture: Food Wastage Degraded Land Small Holders19
  • Landscape Level Planning Palm oil plantation overlaps with elephant home ranges in Riau Palm oil plantation Elephant ranges
  • Food WastageWestern world Developing world3% in distribution, 30% in-home 50% in supply chain + in-home Optimized pack size Lack of / Inappropriate packaging Appropriate shelf life Inappropriate distribution21
  • Degraded Land22
  • Small-HoldersCrop for rural development – Low technology, low disease risk – Low pesticide use – Labour Intensive (6-8 ha/man) – Year round productionOpportunity for Improvement – Current Yields: 4-6 tons/ha – New Planting Materials: Up to 11 tons/ha
  • Thank You For More Information www.nestle.com duncan.pollard@nestle.com +41 79 909 154724