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The Nestlé Water Management Report Pakistan

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					     The Nestlé Water Management Report
1   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   1
    Disclaimer




     This presentation contains forward looking
     statements which reflect Management’s
     current views and estimates. The forward
     looking statements involve certain risks and
     uncertainties that could cause actual results
     to differ materially from those contained in
     the forward looking statements. Potential
     risks and uncertainties include such factors
     as general economic conditions, foreign
     exchange fluctuations, competitive product
     and pricing pressures and regulatory
     developments.


2   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   2
    Contents of this presentation

    §    Setting the scene:
            § Why worry about water management?
            § Why a Nestlé report?

    §    Nestlé and water management:
            §   Key facts and figures
            §   Saving water in manufacturing
            §   Waste water treatment
            §   Sourcing water for bottling

    §    Managing water for consumers:
            § Water as a healthy beverage
            § Water education for future generations

    §    Water management, agriculture and communities:
            § Influencing better water management in agriculture
            § Increasing community access to water
            § Stakeholder engagement

    §    Future water management directions:
            § Increasing attention to local water management
            § Scaling up efforts in agriculture and water management
            § Encouraging debate on water management
3   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   3
         Setting the scene: the importance of water
         management

•   "Every human being, now and in the future, should have access to safe
    water for drinking, adequate sanitation and enough food and energy at
    reasonable cost. Providing adequate water to meet these basic needs
    must be done in an equitable manner that works in harmony with
    nature"
    World Water Commission

•   Water management link to broader climate change issues – Nicholas
    Stern and others

•   UNDP: critical role of water to development

     •   1 billion without access to clean water, 2.4 billion without access to
         sanitation

     "This water crisis is largely our own making. It has resulted not from
      the natural limitations of the water supply or lack of financing and
      appropriate technologies, even though these are important factors,
      but rather from profound failures in water governance."

     •   Water management critical to achieving all 8 MDGs

4        Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   4
        Setting the scene: why a Nestlé
        report?

    •      Nestlé needs reliable access to clean water
            • has a stake in future of water, shared value with
              society

    •      To document/share our water management actions:
            • where we have direct control
            • where we use influence to enhance clean water
              access

    •      To explore future directions with other stakeholders
            • work with others for positive impact


           "No one partner can do it all, but together we can influence,
           alter, protect, and preserve the vital resource of water for
           future generations".

           Peter Brabeck-Letmathe, Chairman and CEO, Nestlé


5       Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   5
    Setting the scene: Creating Shared Value




            The Nestlé Concept of Corporate Social
            Responsibility, March 2006



            A clear link with water management

6   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   6
    Nestlé and water management:
    Key facts and figures




    •    Production volume doubled
    •    Water consumption down 29%
    •    Waste water down 37%
          • 47 billion litres saved in 5 years overall
          • 8 billion litres saved in 5 years in bottled water
          • 354,000 tonnes packaging material saved

    Value for Society: reduced impact on water availability/waste/packaging
    Value for Nestlé: risk and cost reduction
7   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   7
    Nestlé and water management:
    Improving operational water efficiency




                                      Water recycling                                                   Water recycling
                                      at Shinchueng                                                     lake at Chaochengsao
                                      milk factory, China                                               coffee factory, Thailand

    •    Over 200 factories met water efficiency improvement targets
         in 2006
    •    Consistent improvement, measured over time
    •    Tried and tested policy/process to improve further
    •    ISO 14001 certification worldwide by 2010

    Value for Society: reduced impact on water availability/usage
    Value for Nestlé: risk and cost reduction

8   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007                     8
        Nestlé and water management:
        Waste water treatment




    Nigeria: sharing knowledge                                                                    Agbara plant, Nigeria: awarded
    with Ghanaian colleagues for                                                                  "most environmentally proactive
    2007 Tema plant                                                                               industry" in 2006



        •    First objective to minimise waste water
        •    First treatment plant 1930
        •    First to develop treatment plants, before legislation

       Value for Society: best in class waste water treatment facilities,
                          skill transfer
       Value for Nestlé: risk and cost reduction
9       Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007                       9
         Nestlé and water management:
         Sourcing water for bottling




     Quality assurance to local                                                                   Research into lighter
     and international Nestlé                                                                     packaging materials for
     standards                                                                                    bottled water



         •     Verification system to test water sources:
                 • Ascertains sustainability, compliance, exploitation limits
                 • Defines treatment required
         •     Significant reduction in packaging volume
         •     90% bottled water consumed in country of origin
         Value for Society: reduced impact on water availability/waste/packaging
         Value for Nestlé: risk and cost reduction, more efficient source
                           management
10       Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007              10
         Managing water for consumers:
         Water as a healthy beverage




     Aquapod – making water                        "Water reduces energy density
     fun for children, USA                         and replaces calories consumed
                                                   from other beverages"
                                                   Professor Barry Popkin, University
                                                   of North Carolina


         •     Providing bottled water: safe & healthy
         •     Encouraging children to choose water
         •     Nestlé Compass: comprehensive
               consumer information
         •     Water and obesity: proven, positive role

         Value for Society: water's positive role in nutrition
         Value for Nestlé: sales growth category
11       Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   11
        Managing water for consumers :
        Water education and disaster response




 Water education:                                                                                               Project WET: Makes
 essential for                                                                                                  learning about
 sustainability in school                                                                                       water fun
 wells programme, Moga,
 India


                           Project WET: worldwide water sensitisation programme for children


        •     Project WET: millions of children in 22 countries
        •     Water education essential to Indian wells programme
        •     Major water donor: Katrina, Pakistan, Tsunami

        Value for Society: future generations sensitised to water issues, clean
                           water in crises
        Value for Nestlé: building relationship with potential future consumers

12      Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007                        12
          Water management, agriculture & communities:
          Improving community access to clean water




     Mozambique: first clean                              One of 71 clean drinking                       LEAP and EcoLink – water
     water wells for 15,000 as                            water facilities in milk district              management part of
     part of IFRC partnership                             villages, Moga, India                          community development,
                                                                                                         South Africa


          •    Community engagement: 36 water related
          •    projects
          •    Indian milk district water facilities reach 25,000 children
          •    IFRC partnership: water and sanitation focus
          Value for Society: clean water in water-poor regions
          Value for Nestlé: quality supplies from motivated, enabled farmers
13        Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007                 13
         Water management, agriculture & communities:
         Influencing better water management




     Empowering 5,000 female                       Biofuel from cow effluent helps            Colombian coffee technician
     agricultural extension workers                keep water clean and food hot in           teaching water management to
     in Pakistan, including water                  Shuancheng milk district, China            Ethiopian farmers
     management

         •     Encouraging farmers toward good water management
         •     Milk farmers: helping manage effluents
         •     Coffee farmers: irrigation and post-harvest treatment techniques
               save up to 90%
         Value for Society: knowledge sharing, improved agricultural water
                            management practices
         Value for Nestlé: quality supplies from motivated, enabled farmers
14       Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007               14
           Water management, agriculture & communities:
           Stakeholder engagement




     Community engagement is                     Engaging South African                    Nestlé at the World Water Forum,
     critical in selection of villages for       farmers on water                          Mexico, March 2006
     Indian milk district water wells            management
                                                 as part of Agri-BEE initiative



           •    Prominent role in WEF water initiative, debates
           •    AccountAbility engaged stakeholders around report
           •    World Water Forum, Mexico, 2006
           Value for Society: clean water in water-poor regions, knowledge sharing
           Value for Nestlé: knowledge sharing, informing future strategy

15         Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007              15
     Future water management directions:
     Increased attention to local conditions




     •     49 factories in 13 of 45 most water-stressed countries
     •     Evaluation and focus for future improvement
     •     Development of proprietary water stress index
     Value for Society: reduced impact on water availability/waste/packaging
     Value for Nestlé: risk and cost reduction
16   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   16
       Future water management directions:
       Scaling up efforts in agriculture




     Water management as a major                          Investigating research                       Water source
     part of agricultural extension                       possibilities with drought-                  protection
     projects in Indian milk districts                    resistant coffee and cocoa                   techniques in Mexico


      •     Building best practice repository, share in Nestlé and SAI Possible
            research into drought resistant plants
      •     Incorporating water into all agricultural extension

      Value for Society: clean water in water-poor regions, knowledge sharing
      Value for Nestlé: informing future strategy, quality supplies from
                         motivated farmers
17     Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007                  17
       Nestlé's overall commitment on water




     "No one partner can do it all, but together we can influence,
      alter, protect, and preserve the vital resource of water for
                          future generations".

          Peter Brabeck-Letmathe, Chairman and CEO, Nestlé
18     Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   18
     The Nestlé Water Management Report




19   Nestlé Water Management Report: presented by Peter Brabeck-Letmathe, Chairman and CEO, March 8th 2007   19

				
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