The environmental and sustainability report has become more and more important information to reflect the corporate social responsibility of the company. The companies, in particular the big multinational companies listed in the public, have paid much attention to disclose the relevant information recently (Environmental Leader, 2008). Nestlé is one of the famous food manufacturing company, and this present paper is to study the relevant environmental and sustainability of Nestlé accordingly.
Environmental sustainability of Nestlé
Based on the sustainability report of Nestlé, the relevant environmental sustainability performance information of Nestlé has been clearly laid out, including government and systems, life cycle approach, the impact of water, climate change, air emissions, transports and distribution, packaging optimization, waste and recovery and biodiversity (Veritas, 2012).
In light of the information provided by Nestlé, the value of Nestlé in relation to the environmental sustainability is to enhance its environmental performance and efficient operations, decrease the negative impacts on the natural resource, and constantly employ the cost saving approaches in terms of raw materials, water, etc.
Meanwhile, the goal of Nestlé is to supply the delicious food and beverages, as well as obtain the better environmental performance, with a view to enhance the efficiency of business operation and environmental impact accordingly (Veritas, 2012).
In Nestlé’s report of environmental sustainability, it has introduced various actions that Nestlé carried out this year in order to achieve the environmental sustainability goals. The actions taken by Nestlé include investing CHF 143 million in environmental improvements, performing the relevant project to enhance the environmental impact by reducing water use, non-renewable energy consumption, GHG emissions, avoiding waste and enhancing the utilities of the products, such as the packaging. In addition, Nestlé also has worked with the suppliers to improve the performance of its supply chain (Veritas, 2012). Nestlé has provided the quantity information of its performance environmental sustainability since year 2001, including reducing 17% GHG emissions, reduced by 58% and 42% per tonne of product in terms of water withdrawals and energy consumption respectively. Meanwhile, the renewable energy consumption has reduced to 12% of total energy consumption, and the water discharges has reduced by 64% per tonne of product.
The efforts that Nestlé put into the environmental sustainability may increase the cost of its business, but on the other hand, those efforts can also generate more production volume. For instance, the total on-site energy consumption slightly increased by 0.5%, while the total production volume increased by 73.3% over the same period since year 2001. Furthermore, Nestlé has obtained various awards and recognitions of its performance in environmental sustainability, such as 2011 Stockholm Industry Water Award, 27th World Environment Center Gold Medal award for its commitment to environmental sustainability (Veritas, 2012). Based on the information provided by Nestlé, it has demonstrated that Nestlé has paid much attention to the environmental issue and Nestlé has the high social responsibility of the environment impact.
Meanwhile, there are various elements that heavily influenced the operations of Nestlé, and Nestlé needs to face the relevant challenges of those impacts, including the access of the clean water, constant innovation for the tasty and nutritious food and beverages for the growth population, reducing GHG from its operation, etc. (Veritas, 2012). In the end, the efforts and resources that Nestlé engaged has not only obtained the long terms positive impact of its corporate profits, but also established the favorable corporate image of its brand and obtained the highly reward for the public (Kolk, 2004).
To sum up, Nestlé has established a systemic approach in environmental sustainability and has disclosed the comprehensive environmental sustainability reports to the public. Nestlé is not the company that only simply chases the growth of its financial revenues, but it also focuses on the environmental impact caused by its business. The release of the relevant information that the company engaged in sustainability activities can make the shareholders and the public know much about the value of company, and generate the positive influences in the long term.