Slide 1: Why CEOs should be worried about the environment
Why CEOs should be worried about the environment Peter Brabeck-Letmathe Chairman of the Board Nestlé S.A. Stein am Rhein, 5 October 2009
Slide 2: The Nestlé story
The Nestlé story 1867 1866 1929 ¾ 456 factories in 84 countries 1938 ¾ 280,000 employees 1947 ¾ Sales of CHF 109.9 billion in 2008 ¾ 135,000 different products 1960s (more than 1 billion products 1970s sold every day) ¾ Environmental improvement since 1980s 1999: • Energy per Tonne: -42% 1990s • GHG
Slide 3: Creating Shared Value, the way we do business
Creating Shared Value, the way we do business «Going beyond sustainability, by creating value for shareholders and society simultaneously» Sustainability «Development that meets the needs of the present without compromising the Sustainability ability of future generations to meet Protect the future
Slide 4: Our Common Future
UN World Commission on Environment and Development: Our Common Future • Concerned about the accelerating deterioration of the human environment and natural resources and the consequences of that deterioration for economic and social development, • Believing that sustainable development, which implie
Slide 5: This is certainly one of the most pertinent definitions for Sustainability
“This is certainly one of the most pertinent, if not, the definition for Sustainability.” • “Nous n'héritons pas la terre de nos ancêtres, nous l'empruntons à nos enfants.” • “We do not inherit the Earth from our ancestors. We borrow it from our children”. African proverb, promoted by Antoine de Sai
Slide 6: World's sustainable capacity already exceeded by 25%
World’s sustainable capacity already exceeded by 25% The world was «sustainable» until 1987 Source: WWF & Global Footprint Network 6
Slide 7: The origins of sustainability
The origins of sustainability • Thomas Malthus: An Essay on the Principle of Population (1798) – "The power of population is so superior to the power of the earth to produce subsistence for man, that premature death must in some shape or other visit the human race. » • Paul Ehrlich: The Population B
Slide 8: World's sustainable capacity already exceeded by 25%
World’s sustainable capacity already exceeded by 25% The world was «sustainable» until 1987 Source: WWF & Global Footprint Network 8
Slide 9: World's sustainable capacity already exceeded by 25%
World’s sustainable capacity already exceeded by 25% The world was «sustainable» until 1987 Source: WWF & Global Footprint Network 9
Slide 10: World's sustainable capacity already exceeded by 25%
World’s sustainable capacity already exceeded by 25% If 6.7 billion people would live like 330 million North Americans The world was «sustainable» until 1987 Source: WWF & Global Footprint Network 10
Slide 11: Global Drying – The other inconvenient truth
Global Drying – The other „inconvenient truth“ • 25% of world population lives under water stress (= less than 1700 m3/person/year). • By 2050, household water needs predicted to rise by 61%, agricultural use by 140%. • In parts of India (Gujarat) the water table is dropping up to 6 meters per year.
Slide 12: The key issue: From water shortage to food shortage
The key issue: From water shortage to food shortage “If present trends continue the livelihoods of one third of the world’s population will be affected by water scarcity by 2025. We could be facing annual losses equivalent to the entire grain crops of India and the US combined.” Frank Rijsberman, fo
Slide 13: Rank Order: Seriousness of Water Problems
13 Rank Order: Seriousness of Water Problems O circle of blue’ “Very Serious,” Average of 15 Countries, 2009 Rank Environmental problem 1 Water pollution 2 Fresh water shortages 3 Depletion of natural resources** 4 Air pollution 5 Loss of animal/plant species 6 Climate change / global warming 7 Auto
Slide 14: Sustainable Development = Im > P x A x C x T
Sustainable Development = Im > P x A x C x T Im = Impact (Earth’s «carrying capacity») P = Population size A = Affluence C = Consumption intensity T = Technology to deliver consumption (eco-efficiency) Waggoner & Ausubel (2002): A framework for sustainability; based on Commoner (1972) “The Environme
Slide 15: Sustainable Development (Brundtland Report)
Sustainable Development (Brundtland Report) • The concept of sustainable development does imply limits - not absolute limits but limitations imposed by the present state of technology and social organization on environmental resources and by the ability of the biosphere to absorb the effects of huma
Slide 16: Ecologies of Scale
Ecologies of Scale • Economies of scale: Strong degressive relationship between production cost and number of produced items • Similar relationship applies to « environmental cost » and number of produced items • Small may be beautiful, « locally grown » is popular and home- cooking is fun… • …but s
Slide 17: Environmental Life Cycle Assessment of Filter and Instant Coffee
Environmental Life Cycle Assessment of Filter and Instant Coffee Raw Manufacturing/ materials Packaging Consumer Waste recovery: Positive effects ¾Instant coffee has a lower environmental impact than filter coffee ¾Energy savings opportunities at consumer Humbert S, Loerincik Y, Rossi V, Margni M an
Slide 18: Significant losses along the value chain
Significant losses along the value chain Best case Planted food Worst case Pre-harvest losses: 7% 8 Ready to harvest food Harvesting and processing losses: 12% 3-37% 8-9 21% loss Processed food 74% loss Retail losses: 1% 3- 25% 3 Food at consumer/food service Use losses: 3% 5-40% 5 Eaten food 18
Slide 19: Agrifuel from food crops: Solution…?
Agrifuel from food crops: Solution… ? 500% Source: SWISS Federal 450% Office for the Environment, 2006 400% 350% Air pollution by Green 300% House Gases 250% Sugar cane from Brazil saves 70% CO2 compared to petrol 200% 150% Maize from Switzerland produces 15% more CO2 than petrol 100% 50% 0% Petrol
Slide 20: … or pollution!
… or pollution ! 500% Raw material consumption and w aste treatement 450% Water and soil pollution 400% All crop-based agrofuels pollute more than fossil fuels Air pollution (w ithout 350% GHG) 300% By-products (whey, wood, Air pollution by Green House Gases used vegetable oil) may be the 250% only
Slide 21: More at: www.nestle.com/csv
More at: www.nestle.com/csv 21