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Respondent CDP 2007: Nestle

General Introduction
<>If like introduction answers enter
Nestlé committed long environmentaly sound business practices stated Nestlé Policy Environment issued 1991 includes reduction greenhouse gas emissions air emissions Nestlé ’ s invests average CHF 40 million annually reduce air emissions result start negotiations leading 'Kyoto Protocol' 1997 CO2 emissions manufacturing sites reduced 14% period production volume doubled 38 24 million tonnes resulting GHG eco efficiency improvement 56% detailed information available www environment nestle com

 
Section A – 1 Climate Change Risks, Opportunities and Strategy
Question 1(a)(i) – Regulatory risks
<>For question state time period possible associated financial implications commercial risks does climate change present company including regulatory risks associated current and/or expected government policy climate change e g emissions limits energy efficiency standards
According generally accepted information climate change poses variety potential risks Change ecological balance weather patterns possibly result shortages agricultural raw materials shortages water floods cyclones disrupt supply chain including means transport Cost natural resources energy increase dramatically Availability reliability electricity natural gas jeopardised energy sector largest sources CO2 emissions energy prices increase utility companies try pass increased compliance costs non negligible impact administrative burden participation emission trading climate change affect local communities food consumption habits

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(a)(ii) Physical risks
<>For question state time period possible associated financial implications commercial risks does climate change present company including physical risks business operations scenarios identified Intergovernmental Panel climate Change expert bodies sea level rise extreme weather events resource shortages
mentioned question 1 (a) (i) extreme weather events changes weather patterns rising temperatures sea level rise related phenomena possibly result shortages agricultural raw materials freshwater disrupt supply chain including means transport Cost natural resources energy increase dramatically certain regions Availability reliability electricity natural gas jeopardised locally Nestlé carefully investigates possible impacts activities changes case case basis conducting risk assessment and/or claims related investigations addition Nestlé developed exposure related data base floods natural hazards exposures documented continuously updated

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(a)(iii) risks
<>For question state time period possible associated financial implications Apart regulatory physical risks described answers questions 1(a)(i) 1(a)(ii) commercial risks does climate change present company including shifts consumer attitude demand
Climate change affect local communities food consumption habits

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(b) Opportunities
<>For question state time period possible associated financial implications commercial opportunities does climate change present company existing new products services
Consumption products increase/decrease weather evolution consumer habits changes seen risks and/or opportunities opportunity improve energy efficiency worldwide activities

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(c) Strategy
<>For question state time period possible associated financial implications objectives targets strategies undertaken planning manage risks opportunities detailed questions 1(a) 1(b) include adaptation physical risks
Food industry significant direct emitter greenhouse gases comparison industrial sectors power plants metal cement … sectors agriculture transportation stated Nestlé Policy Environment Nestlé complies applicable environmental legislation Nestlé works authorities consultants assist installations included EU ETS Member State order ensure compliance legislation Nestlé 's priority continue improve energy efficiency worldwide activities (manufacturing logistics administration) results continuous reduction greenhouse gas emissions addition fuel shift e g coal gas reduces greenhouse gas emissions result Nestlé far net seller GHG emission allowances European Union energy sector largest sources CO2 emissions energy prices increase utility companies try pass increased compliance costs non negligible impact administrative burden participation emission trading Nestlé factories developing countries present significant opportunity invest clean development projects (combustion plant fuel switching generation plants new process technologies etc) generate tradable emission allowances sold improve capital investment payback Nestlé closely monitors legal development ISO work area greenhouse gas emissions periodically update cost / benefit analysis order able minimise financial impact EU ETS e g CDM JI projects addition Nestlé initiated initiatives including Sustainable Agriculture Initiative define sustainable agriculture practices help farmers implementing

 
<>Would like provide additional information relating question provided
 No 

 
Section A – 2 Greenhouse Gas Emissions Accounting
Question 2(a)(i) – Methodology – Accounting Year
<>Please state accounting year used report GHG emissions
Financial accounting year 31 December 2006

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(ii) – Methodology
<>Please state methodology emissions calculated
 Other 

 
<>Please provide additional information
measure progress eco efficiency objective Nestlé performs periodical factory environmental surveys systematic comprehensive uniform approach assessing environmental performance factories past individual Nestlé factories used different methods track environmental performance consolidate data benchmark best practices allow internal external reporting established defines standardised environmental performance indicators (EPIs) Nestlé 1997 manufacturing sites required report performance results annually consolidation EPIs began Group wide basis significant difference products pharmaceutical group Alcon included stage consolidated Group EPIs cover manufacturing operations include greenhouse gases emissions Greenhouse gases defined sum site emissions CO2 main greenhouse gas combustion processes used manufacture Nestlé products CO2 emissions result burning fuels boilers roasters dryers electric generators just launched new version KPI tracking tool software KPI's align GHG protocol began report year data available 2007 end year

 
<>Please state reporting boundaries data provided questionnaire
Option 3 – entities owned company

 
<>Please provide additional information
Nestlé currently capture direct GHG emissions data capture process revised capture electricity indirect GHG emissions expanded time capture indirect GHG emissions

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(iii) – Methodology – External verficiation
<>Please state information provided externally verified audited
 Yes 
Nestlé environmental performance indicators validated independent verification company Intertek CSeR Group selected Nestlé provide independent verification effectiveness systems processes employed generate report Nestlé 2006 environmental performance indicators Independent Assurance Statement available www environment nestle com confirms information presented data collection used Nestlé appear reliable underlying trends substantially correct

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(iv) – Methodology – Variations emissions
<>Please provide explanation significant variations emissions year year major acquisitions divestments introduction new technologies
435 factories covered reporting data 2006 (less 5% variation 2005) Like 2005 scope doesn't include pharmaceutical Nestlé factories (per tonne data comparable) Nestlé 's success reducing greenhouse gas emissions result focused efforts energy reduction fuel replacement initiatives generation activities phase ozone depleting substances CO2 emissions Nestlé manufacturing operations reduced 14% start negotiations leading 'Kyoto Protocol' 1997 period Nestlé production volumes increased 55%

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(b) – Scope 1 Scope 2 GHG Protocol Year 1 answers
state direct indirect GHG emissions metric tonnes CO2e global Annex B countries having difficulty reporting emissions figures CO2e metric tonnes guidance answering CDP5 questionnaire available
<>Please enter accounting year used report GHG emissions details
31 December 2006

 
<>Total Global Emissions

 
<>Total Emissions Annex B countries

 
<>Scope 1 activity emissions globally
<>4050000 CO2e metric tonnes

 
<>Scope 1 activity emissions Annex B
<>2002000 CO2e metric tonnes

 
<>Scope 2 activity emissions globally
<>We able 2007 values new way report calculate data (new version software) 2006 don't value scope

 
<>Scope 2 activity emissions Annex B
<>We able 2007 values new way report calculate data (new version software) 2006 don't value scope

 
<>Please state MWh electricity purchased consumed company globally

 
<>Please state MWh electricity purchased consumed company Annex B countries

 
<>Please state percentage purchased consumed MWh electricity renewables globally

 
<>Please state percentage purchased consumed MWh electricity renewables Annex B countries

 
<>Would like provide additional information relating question provided
 Yes 
Nestlé manufacturing important supply chain nearly 500 factories world perishable raw materials transformed safe convenient high quality food products Air emissions generated manufacturing process example cooking operations energy production Nestlé factories objective maximise eco efficiency e maximise production goods time minimising consumption resources reducing waste emissions

 
Question 2(c) – Scope 3 GHG Protocol Year 1 answers
<>Please enter accounting year used report GHG emissions details
31 December 2006

 
<>If possible provide estimates metric tonnes CO2e following categories emissions Use/disposal company’ s products services
<>Food products generally entirely consumed product packaging remains consumption Nestlé firmly committed continue progress finding packaging solutions contribute better environment Reducing packaging material needed product safeguarding safety quality continuing key objective priority Nestlé Packaging material savings 1991 2006 amounted 315 000 tonnes CHF 560 million savings enabled reduce emissions packaging disposal stage addition packaging source reduction Nestlé supports industrial government efforts promote integrated waste management optimising resource conservation limiting waste material goes landfills provides practical sustainable integrates waste streams collection treatment methods environmental benefits economic optimisation Reuse recycling composting energy recovery landfilling integrated waste management

 
<>Your supply chain
<>We encourage agricultural raw material suppliers optimise energy usage sustainable agriculture practices noted agricultural raw materials used manufacture food products absorb CO2 growth

 
<>External distribution/logisitics
<>At step supply chain Nestlé addresses environmental aspects Comprehensive environmental surveys Nestlé distribution sites transportation activities conducted world Nestlé initiated pilot Schenker leading international integrated logistics companies determine environmental impact unit product delivered European land transport networks results study showed transport generated average 15 kg CO2 emissions tonne product delivered represents 10% CO2 generated manufacturing process equivalent emissions released standard passenger car travelling 100 kilometres Guidelines reducing environmental impact supply chain place regularly updated example practical information provided reducing energy consumption emissions warehouses use maintenance appropriate insulation better operating practices

 
<>Employee business travel
<>No measurement

 
<>Other

 
<>Please provide details sources emissions entered figure "Other" box

 
<>Please provide information measurement scope 3 emissions
working different project expand reporting process include supply chain environment key performance reporting process Life Cycle Assessment main products

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 3 Additional Greenhouse Gas Emissions Accounting
Question 3(a) – Scope 1 Scope 2 GHG Protocol emissions country
Using methodology set 2(a) state emissions country NB practical list emissions country country basis list countries significant emissions context business combine remainder “ rest world” information format (e g Excel) attach
<>
Country Scope 1
Emissions (Tonnes CO2e)
Scope 2
Emissions (Tonnes CO2e)

Download attachment
 
<>Would like provide additional information relating question provided
 No 

 
Question 3(b) – Facilities covered EU Emissions Trading Scheme
provide details total emissions metric tonnes CO2e facilities covered EU ETS details allowances issued applicable National Allocation Plans
<>Emissions total facilities covered EU ETS figure metric tonnes CO2e
455000 metric tonnes CO2e

 
<>Total number allowances issued National Allocation Plans applicable installations covered EU ETS
588000 metric tonnes CO2e

 
<>Would like provide additional information relating question provided
 Yes 
allowance 2008 include factories 2006 emission value scope corresponding

 
Question 3(c) – EU ETS impact
<>What impact profitability EU Emissions Trading Scheme
Nestlé far net seller GHG emission allowances European Union Nestlé factories developing countries present significant opportunity invest clean development projects (combustion plant fuel switching generation plants new process technologies etc) generate tradable emission allowances sold improve capital investment payback

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 4 Greenhouse Gas Emissions Management
Question 4(a)(i) Reduction programmes
emission reduction programs does company place include reduction programs related operations energy consumption supply chain product use/disposal
<>Does company emissions reduction program
 Yes 

 
<>What baseline year emissions reduction program (YYYY format 1990)
1997

 
<>If use baseline year reduction programme provide details reference point programme
fixing energy saving targets years

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(ii) Reduction programmes
emissions reduction targets period targets extend
<>Emissions reductions target (%)
5 %

 
<>Time frame reduction target
year

 
<>Further information
2006 energy efficiency improvement target 5% Nestlé achieved 8 8% reduction energy rate 10 6% CO2 reduction kg product target 2007 3% considering result achieved potential reduction result agian CO2 reduction 3%

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(iii) Reduction programmes
<>What investment been/will required achieve targets (In $)
32000000 US$

 
<>Over time period (In years)
1

 
<>More
Investments cover different projects world long term short term e g using fuel lower sulphur content moving gas ensuring boiler operations optimised

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(iv) Reduction programmes
<>What emissions reductions associated costs savings achieved date result program
Like said CO2 emissions Nestlé manufacturing operations reduced 14% start negotiations leading 'Kyoto Protocol' 1997 period production volume doubled 38 24 million tonnes resulting GHG eco efficiency improvement 56%

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(v) Reduction programmes
<>What renewable energy energy efficiency activities undertaking manage emissions
Nestlé committed realizing savings energy consumption set internal targets continuous improvement result reduction CO2 emissions achieved gradual replacement coal oil fired boilers cleaner gas fired boilers additional result air acidification potential sulfur oxide equivalents (SOx) reduced substantially 40% 1998 particular highlight commissioning state art generation plant Himeji Nescafé factory Japan installation won prestigious awards extremely high energy efficiency 92% significant reduction CO2 emissions 32 000 tonnes equivalent discharged 6 700 households milestone conversion Nescafé Milo factory Graneros (Chile) natural gas project accepted examples Kyoto Protocol establishing methodology generate tradable “ emission credits” developing country emission rights subsequently sold Japanese power generator Nestlé extending long experience natural refrigerants industrial applications smaller commercial refrigeration units started building testing ice cream freezers CO2 refrigeration systems natural substance fulfils requirements expected modern refrigerant unlike currently available solutions HFCs HCs negligible impact environment inherently safe extreme conditions Reducing environmental impact transport high importance Nestlé Nestlé initiated pilot Schenker leading international integrated logistics companies determine environmental impact unit product delivered European land transport networks results study showed transport generated average 15 kg CO2 emissions tonne product delivered represents 10% CO2 generated manufacturing process equivalent emissions released standard passenger car travelling 100 kilometres Actions defined reduce transport related environmental impact giving consideration types vehicle used distances driven fuel type used loading degrees examples Nestlé environmental achievements available www environment nestle com

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(b) Emissions trading
company’ s strategy trading EU Emissions Trading Scheme CDM/JI projects trading systems (e g CCX RGGI etc) relevant Explain involvement following
<>EU ETS
Nestlé factories developing countries present significant opportunity invest clean development projects (combustion plant fuel switching generation plants new process technologies etc) generate tradable emission allowances sold improve capital investment payback

 
<>CDM/JI
developp guideline CDM explained concepts gives helpful information better understand process related type projects Nestle´ s current potential matter Nestlé opportunities generate CDM JI projects plants installations list potential countries eligible CDM JI projects developped JI CDM projects Nestlé sites contribute sustainable development country positively support Nestlé ’ s environmental image Relevant project types Nestlé comprise • increase energy efficiency (in use steam heat) • fuel switch gas biomass • installation cogeneration

 
<>CCX

 
<>RGGI

 
<>Others

 
<>More

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(c) Emissions intensity
state measurement believe best describes company’ s emissions intensity performance historical current emissions intensity measurements targets
<>Best measurement emissions intensity company
continuously improving measurement process described collecting energy data monthly basis ensure quality data developped customized software harmonize way calculate emissions scope data collection larger

 
<>Historical intensity details
measure publish emissions intensity production kg CO2e / tonne product Year 1998 2000 2001 2002 2003 2004 2005 2006Intensity 212 191 178 155 142 133 118 106The constant reduction emissions intensity 1998 confirms effectiveness emissions reduction strategy

 
<>Current intensity details
2006 emission ratio 106 kg CO2 tonne product

 
<>Target details
Target 2006 5% reduction year (over achieved)Our target energy consumption 2007 reducing 3%

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(d) Energy costs
total costs energy consumption e g fossil fuels electric power percentage total operating costs does represent
<>Total costs energy consumption (in US$)
980000000 US$

 
<>Percentage total operating costs (%)

 
<>More Details
Energy cost 435 sites = 1 194 billion CHFThis represents 1 2% sales

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(e) Planning
estimate company’ s future emissions provide details estimates summarize methodology factor cost future emissions capital expenditure planning considerations impact investment decisions
<>Do estimate company’ s future emissions
 Yes 

 
<>Please provide details estimates summarize methodology provide details estimate company's future emissions
Environmental impact investments including related GHG emissions carefuly assessed R& D according methodology named Preliminary Environmental Safety Impact Survey

 
<>How factor cost future emissions capital expenditure planning
value CO2 emissions based average trading price used calculate pay investment

 
<>Have considerations impact investment decisions
 Yes 

 
<>Please provide details
Value CO2 emissions right shorten pay investment

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 5 Climate Change Governance - Responsibility
Question 5(a)(i) Responsibility
<>Which Board Committee executive body overall responsibility climate change
Mr J Lopez Nestlé Executive Vice President Nestlé S Responsible Operations charge climate change related issues Nestlé Environmental Officers national level international head office charge managing climate change related issues compensation linked attainment energy savings GHG reduction targets Information Nestlé Policy Environment performance activities including related GHG emissions available annual Nestlé Management Report Nestlé internet site (www environment nestle com)

 
<>Would like provide additional information relating question provided
 No 

 
Question 5(a)(ii) Responsibility
<>What mechanism Board executive body reviews company’ s progress status regarding climate change
Following objectives KPI's Periodical ad hoc meetings discuss evolution results perspective regular meetings Operations Sustainability Committee

 
<>Would like provide additional information relating question provided
 No 

 
Question 5(b) Individual performance
<>Do provide incentive mechanisms managers reference activities relating climate change strategy including attainment GHG targets
 Yes 

 
<>If provide details
measure progress eco efficiency objective Nestlé performs periodical factory environmental surveys systematic comprehensive uniform approach assessing environmental performance factories consolidate data benchmark best practices allow internal external reporting established defines standardised environmental performance indicators (EPIs) Nestlé 1997 manufacturing sites required report performance results annually consolidation EPIs began Group wide basis 2005 KPI's reported monthly (like energy consumption)

 
<>Would like provide additional information relating question provided
 No 

 
General Information
<>Please add general information attachments related specific question like include response

 
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