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

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  • Take for example the simple cup of coffee. The energy consumption of Nescafe is one half that of home-brewed coffee. Our Nescafe factories are big industrial coffee-makers – we prepare thousands and thousands of cups of coffee in a highly efficient process and therefore the energy per cup of coffee is much smaller. We use less coffee because we have a more efficient extraction process. Out of 10g of coffee in a home-brew, only 2 grams end up in the coffee, the rest is the coffee grounds. In our process extraction yield is much higher. I won’t tell you how much higher – that’s a commercial secret. We also use the used coffee grounds as a fuel to run our factories. .
  • Underpinning PCM is a best in class, activity-based modelling engine that allows an organization to develop a valid economic cost model that accurately reflects the relationships between its expenses and it customers, products and other “Cost Objects” by going through an activity layer. The products and services we provide and the channels we sell through drive the activities we need to carry out – and this in turn, drives the resources we need inside the organization. If we build this logical model, we can then assign costs to activities and ultimately to Cost Objects. It’s logical and based on true cause-and-effect assignments rather than broad brush appointments that can lead to erroneous results [CLICK] Exactly the same methodology is needed for reliably assigning the enterprise footprint to individual products and services
  • Underpinning PCM is a best in class, activity-based modelling engine that allows an organization to develop a valid economic cost model that accurately reflects the relationships between its expenses and it customers, products and other “Cost Objects” by going through an activity layer. The products and services we provide and the channels we sell through drive the activities we need to carry out – and this in turn, drives the resources we need inside the organization. If we build this logical model, we can then assign costs to activities and ultimately to Cost Objects. It’s logical and based on true cause-and-effect assignments rather than broad brush appointments that can lead to erroneous results [CLICK] Exactly the same methodology is needed for reliably assigning the enterprise footprint to individual products and services

Transcript

  • 1. The Future of Sustainability Reporting in the Food Processing Sector Dr. Claus Conzelmann Vice President – Head of Safety, Health & Environmental Sustainability Nestlé
  • 2. 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
    28 May 2010 GRI International Conference
  • 3. Survey from GRI 28 May 2010 GRI International Conference
  • 4. Key benefits of FPSS beyond G3
    • Food specific focus on
    • Health & Nutrition
    • Enhanced guidance on
    • Sourcing of agricultural raw materials
    • Biodiversity and Ecosystem Services
    28 May 2010 GRI International Conference
  • 5. Nestlé Nutritional Compass ® 28 May 2010 GRI International Conference
  • 6. Sourcing & biodiversity
    • Quality means more at Nestlé
    • Ensuring full traceability of raw and
    • packaging materials
    Nestlé calling for a moratorium on deforestation of tropical rainforests 28 May 2010 GRI International Conference
  • 7. 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
  • 8. A value chain perspective 28 May 2010 GRI International Conference 10-40% Environmental impact along the value chain ≈ 10% Customer Distribution Packaging Raw Material Manufacturing Consumer Manufacturing ≈ 10% 10-20% 10-20% 30-40%
  • 9. 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 2010 GRI International Conference
  • 10. Activity-based costing: apply proven financial accounting methodology to environmental costs 28 May 2010 GRI International Conference Enterprise expenses to individual product costs Expenses Properties People Capital Technology Activities Collect Payment Process Order Products Product
  • 11. Activity-based costing: apply proven financial accounting methodology to environmental costs Enterprise footprint to individual product or service footprint Enterprise Env. Footprint Life Cycle Stages Products Product Energy Raw materials Packaging 28 May 2010 GRI International Conference Supply Production Shipping Retail / Home Storage End of Life Enterprise expenses to individual product costs Expenses Properties People Capital Technology Activities Collect Payment Process Order Products Product
  • 12. Nestlé 2009 CSV Report (GRI B+ level) Two versions: on-line and hardcopy (summary) 28 May 2010 GRI International Conference
  • 13. 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