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					Environment
Nestlé is the world's leading food and beverage company, and we are committed to being a leader in environmental performance. The Nestlé Policy on the Environment was first published in 1991 and updated in 1999. It has ensured that preserving natural resources and minimizing waste have become an integral part of the day-to-day activities in all Nestlé operations. The last environmental performance figures again show continuous improvement. Please Click here to View the SEAR environmental Policy

Environmental Performance
Nestlé’s environmental performance indicators again show a decoupling between the growth of our production volume, which amounted to 22.5%, and our consumption of natural resources during the 2002-2006 period. These improvements are a result of continuous significant investments in cleaner and more efficient technologies, combined with voluntary programmes in our factories that generate enthusiasm and responsibility among our employees all over the world.

Independent verification of Nestlé indicators
Nestlé environmental performance indicators have been validated by an independent verification company. Intertek CSeR Group was selected by Nestlé to provide an independant assurance statement of the effectiveness of the systems and processes employed to generate and report Nestlé 2006 environmental performance indicators. The independent assurance statement confirms that the information presented and the data collection system used by Nestlé appear to be reliable and the underlying trends are substantially correct.

Certification of all Nestlé factories
2006 marked the tenth anniversary of the Nestlé Environmental Management System (NEMS) which has served as a solid basis for continuously improving our environmental performance. We have further reinforced our leadership position by seeking independent certification of all our factories to the internationally recognised standards. We have initiated an external audit programme called CARE, through which independent auditors verify the application of the company’s standards in the area of human resources, work-place health and safety and environmental practices throughout our global manufacturing network. 180 Nestlé factories were audited during 2006.

Our top priority, water conservation

This priority is highlighted together with detailed information in the new Nestlé water management report published together with the Nestlé 2006 management report and available at www.water.nestle.com. Due to our major focus on water management, the consumption of water in Nestlé manufacturing operations decreased by 2.6% in 2006, while, at the same time, our production volumes grew significantly. As a result, water efficiency in our operations improved by 7.4% per tonne of product in 2006. As a consequence, the volume of waste water generated from our manufacturing operations was reduced by 8.5% compared to 2005. This volume of waste water is properly treated before being returned to the environment. These improvements are in line with the Nestlé Commitments on Water which include the reduction of the amount of water used per kilo of food and beverage produced and taking care that water we discharge into the environment is clean, as well as the respect of local water resources, the promotion of water conservation among farmers and collaboration with others on water conservation and access.

Energy savings help to take pressure off increased prices
Compared to 2005, energy consumption reduced by more than 4% to 84.4 Petajoules and energy efficiency in Nestlé manufacturing operations improved by more than 12% to 2.21 Gigajoules per tonne of product. The figure is even better over time: since 1997, Nestlé businesses reduced their energy consumption by 51% per tonne of product. Nestlé is committed to realizing further savings in energy consumption and has set internal targets for continuous improvement.

CO2 reduced by 11% per tonne of product during 2006
In 2006 we pursued our factories’ efforts to minimise air emissions with the implementation of measures such as using cleaner fuel with a lower sulphur content, moving to gas, and ensuring that boiler operations are optimised. Nestlé’s invests an average of CHF 40 million annually to reduce air emissions. As a result, the air acidification potential from Nestlé manufacturing operations, measured in sulfur oxide (SOx) equivalents, reduced significantly by 27% between 2002 and 2006. Since 1998, it has reduced by 63% per tonne of product. Since the start of the negotiations leading to the 'Kyoto Protocol' in 1997, the CO2 emissions from our manufacturing sites were reduced by 14%. During the same period, our production volume has almost doubled to 38.24 million tonnes, resulting in a GHG eco-efficiency improvement of 56%.

Natural refrigerants have replaced most ozone depleting substances
For nearly two decades, Nestlé has played a leadership role in developing and implementing sustainable, natural alternatives to ozone depleting substances for large scale industrial refrigeration, well ahead of the requirements imposed by the Montreal Protocol. Since 1986 we have reduced emissions of ozone depleting substances per tonne of product by 99%. Currently we have 6 major investments in industrial refrigeration plants underway which will result in a further 80 tonnes of R22 being removed from our installations. Investment into these environmentally superior technologies currently stands at CHF 34.3 million.

Nestlé is now extending this experience to smaller, commercial refrigeration units and has started building and testing ice cream freezers with CO2 refrigeration systems. This natural substance fulfils most requirements expected from a modern refrigerant, and, unlike currently available solutions, it has a negligible impact on the environment and is inherently safe even under the most extreme conditions.

Recovering by-products and reducing waste
Despite a significant production growth, the quantity of by-products generated from our manufacturing operations were reduced by 19% in 2006. These were recovered for further use, either as material for recycling, animal feed, compost or energy source (eg - spent coffee grounds). During the same period, the quantity of waste decreased slightly. It was disposed of in an environmentally sound way. Waste eco-efficiency has increased by 53% since 1997.

Transport
Reducing the environmental impact of transport is of high importance to Nestlé. Nestlé initiated a pilot with Schenker, one of the leading international integrated logistics companies, to determine the environmental impact per unit of product delivered in one of their European land transport networks. The results of this study showed that transport generated on average some 15 kg of CO2 emissions per tonne of product delivered. This represents about 10% of CO2 generated during the manufacturing process and is equivalent to emissions released by a standard passenger car travelling for 100 kilometres. Actions have been defined to reduce the transport-related environmental impact by giving further consideration to types of vehicle used, distances driven, fuel type used, loading degrees, etc.

Packaging eco-design
Nestlé’s initiatives apply equally to sustainable consumption and to improving the environmental performance of our products along their entire life cycle. We have persistently pursued our packaging source reduction programme. Without compromising product quality, packaging material savings from 1991 to 2006 amounted to 315 000 tonnes and CHF 560 million on a worldwide basis. We continue to investigate and use renewable resources : Nestlé was the first company in Europe to introduce a new biodegradable alternative to plastic for use in packaging of manufactured food products. Our leadership role in this area has been widely recognised: The Dairy Box biodegradable tray made from renewable resources won the Silver Star and "Best in Category" as "Best Packaging Innovation leading to a significant reduction in household waste" by The British Institute of Packaging, and the first place in the 'Environmental' category of the UK Packaging Awards 2006.

Recognized as “Best in Class”

Several outstanding achievements have been recognised through official awards in 2006, including the Environmental 'Tableau d'Honneur' for a new refrigeration plant at our factory in Lisieux (France) that replaced ozone depleting HCFC refrigerants; "The Environmental Guardian Award" in Manila (Philippines) for their water conservation programme; “Thailand and ASEAN Energy Award” in Chachoengsao (Thailand) for using coffee grounds as a renewable energy source to produce steam; “New South Wales Energy and Water Green Globe Awards” in Blayney (Australia) for their energy smart business programme and the "Most Environment Friendly Industry of the Year Award" in Agbara (Nigeria) for its sustainable use of water resources through its wastewater treatment plant, the first of its kind in the Agbara industrial area. As recognition of the continuous improvement of our environmental performance, Nestlé has been again selected in the Dow Jones Sustainability Indexes 2007, with an increasing score. Besides, Innovest increased its rating on "Nestlé's environment, social and governance (ESG) performance" to AAA, its highest possible score, making Nestlé the number 1 company in the Food sector. Click Here for Nestlé SEAR Environmental Policy Click Here for Nestlé Policy on the Environment Click Here for Nestlé Environmental Progress Report Click Here for 2006 Consolidated Nestlé Environmental Performance Indicators


				
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