1. The Business Case for
Sustainable Practice:
Protecting our Natural
Assets
Duncan Pollard
Sustainability Advisor
Symposium – Sustainable Palm Oil:
Challenges, a Common Vision and the
Way Forward
London 5th May 2011
3. Business Sustainability
The Needs of Society Limits/Access to Resources
2500 Mn without improved sanitation Natural capital & Ecological limits
1400 Mn in poverty & food insecure Biodiversity, water, soil, the atmosphere
1000 Mn without clean water Land allocation & productivity
215 Mn child labourers Peak oil, water tables, bee populations
51 Mn: born/yr with no birth certificate Wild harvested populations
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6. Customers looking at brands more holistically
Nutrition Health Wellness
What’s in
my food?
Responsible Environmental
sourcing Consumer sustainability
preference
Where How
does it was it
come from? made?
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9. Palm Oil
China Indonesia
Rest of World 13% 13%
37%
EU 25
Malaysia India 12%
8% 11%
US
Pakistan
1%
5%
10. Biodiversity loss as a threat to business growth
CEOs extremely or somewhat concerned
PricewaterhouseCoopers 13th Annual Global CEO Survey 2010
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11. The Sustainability Journey
Business Case Risk Management Values Driven
Mindset Laggards are Punished
Organisation Innovators are not Rewarded
Tools & Processes
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12. Nestlé Products and Brands
Billionaire Brands 10,000 different products
7% organic growth in 2010 1 billion products sold every day
200 different blends of Nescafé to meet local tastes
Poland Europe Malaysia Africa,Greece Switzerland Japan Russia
Russia, Israel
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13. Agricultural Commodities
Procurement from 5Mn+ Farmers
Direct Procurement from Farmers
Direct Procurement from 560,000 Farmers
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15. Nestlé Actions
• Suspended Purchases from Golden Agri
• Policy commitment to tackle deforestation, and to focus on high
carbon soils/forests
• Introduced a Responsible Purchasing Guideline for Palm Oil & Pulp
• Partnered with The Forest Trust
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17. Biodiversity Draft) Position on
Nestlé (Final
Deforestation & Forest Stewardship
Nestlé will ensure that all its raw material sourced from forested areas:
• Has not led to deforestation
• Has not led to loss of high conservation values
• Complies with Nestlé Supplier Code
• - legal, human rights & working practices
• Creates Shared Value for society and local communities
• - delivers rural development & small holder benefits
• - water stewardship plans
19. The Future for Sustainable Palm Oil
RSPO & Others
- Continuous improvement : carbon...
- Differentiation
Context: Landscape Level Spatial Planning
The Bigger Picture: Food Wastage
Degraded Land
Small Holders
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20. Landscape Level Planning
Palm oil plantation overlaps with
elephant home ranges in Riau
Palm oil plantation
Elephant ranges
21. Food Wastage
Western world Developing world
3% in distribution, 30% in-home 50% in supply chain + in-home
Optimized pack size Lack of / Inappropriate packaging
Appropriate shelf life Inappropriate distribution
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23. Small-Holders
Crop for rural development
– Low technology, low disease risk
– Low pesticide use
– Labour Intensive (6-8 ha/man)
– Year round production
Opportunity for Improvement
– Current Yields: 4-6 tons/ha
– New Planting Materials: Up to 11 tons/ha
24. Thank You
For More Information
www.nestle.com
duncan.pollard@nestle.com
+41 79 909 1547
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