The Business Case forSustainable Practice:Protecting our NaturalAssetsDuncan PollardSustainability AdvisorSymposium – Sust...
The Sustainability Journey    Business Case   Risk Management   Values Driven2
Business Sustainability    The Needs of Society                       Limits/Access to Resources    2500 Mn without improv...
Demographic & Income Change                              >30,000 US$/Cap                              22,000-30,000       ...
Growing Middle ClassPremiumisationMainstreamEmerging5
Customers looking at brands more holistically                         Nutrition Health Wellness                           ...
Consumer Trust7
Tastier and Healthier, And so Much More          8
Palm Oil                          China       Indonesia       Rest of World       13%           13%           37%         ...
Biodiversity loss as a threat to business growthCEOs extremely or somewhat concerned PricewaterhouseCoopers 13th Annual Gl...
The Sustainability Journey     Business Case   Risk Management   Values Driven     Mindset                     Laggards ar...
Nestlé Products and BrandsBillionaire Brands                                 10,000 different products7% organic growth in...
Agricultural Commodities                                       Procurement from 5Mn+ Farmers     Direct Procurement from F...
14
Nestlé Actions     • Suspended Purchases from Golden Agri     • Policy commitment to tackle deforestation, and to focus on...
Responsible Sourcing Guidelines
Biodiversity Draft) Position onNestlé (FinalDeforestation & Forest Stewardship Nestlé will ensure that all its raw materia...
Supply Chain Mapping     …and Supporting our Suppliers                Supply Assessments
The Future for Sustainable Palm Oil     RSPO & Others      - Continuous improvement : carbon...      - Differentiation    ...
Landscape Level Planning                   Palm oil plantation overlaps with                   elephant home ranges in Ria...
Food WastageWestern world                     Developing world3% in distribution, 30% in-home   50% in supply chain + in-h...
Degraded Land22
Small-HoldersCrop for rural development – Low technology, low disease risk – Low pesticide use – Labour Intensive (6-8 ha/...
Thank You     For More Information     www.nestle.com     duncan.pollard@nestle.com     +41 79 909 154724
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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.

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

  1. 1. The Business Case forSustainable Practice:Protecting our NaturalAssetsDuncan PollardSustainability AdvisorSymposium – Sustainable Palm Oil:Challenges, a Common Vision and theWay ForwardLondon 5th May 2011
  2. 2. The Sustainability Journey Business Case Risk Management Values Driven2
  3. 3. 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
  4. 4. Demographic & Income Change >30,000 US$/Cap 22,000-30,000 14,000-22,000 3,000-14,000 < 3,0004
  5. 5. Growing Middle ClassPremiumisationMainstreamEmerging5
  6. 6. 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
  7. 7. Consumer Trust7
  8. 8. Tastier and Healthier, And so Much More 8
  9. 9. Palm Oil China Indonesia Rest of World 13% 13% 37% EU 25 Malaysia India 12% 8% 11% US Pakistan 1% 5%
  10. 10. Biodiversity loss as a threat to business growthCEOs extremely or somewhat concerned PricewaterhouseCoopers 13th Annual Global CEO Survey 201010
  11. 11. The Sustainability Journey Business Case Risk Management Values Driven Mindset Laggards are Punished Organisation Innovators are not Rewarded Tools & Processes11
  12. 12. 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
  13. 13. Agricultural Commodities Procurement from 5Mn+ Farmers Direct Procurement from Farmers Direct Procurement from 560,000 Farmers13
  14. 14. 14
  15. 15. 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
  16. 16. Responsible Sourcing Guidelines
  17. 17. 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
  18. 18. Supply Chain Mapping …and Supporting our Suppliers Supply Assessments
  19. 19. 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
  20. 20. Landscape Level Planning Palm oil plantation overlaps with elephant home ranges in Riau Palm oil plantation Elephant ranges
  21. 21. 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
  22. 22. Degraded Land22
  23. 23. 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
  24. 24. Thank You For More Information www.nestle.com duncan.pollard@nestle.com +41 79 909 154724

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