Nestlé Commitment to reduce food loss and waste

Sira J. Environmental Sustainability Manager - Indochina

Nestlé at a glance CHF 91.6 billion in sales in 2014 339,000 employees in over 197

countries 442 factories in 86 countries 34 research, development and

technology facilities worldwide Over 2,000 brands 1 billion Nestlé products sold every day

Nestlé in society: Creating Shared Value and meeting our commitments

Why is Nestlé committed to reduce food loss and waste?

+ 30%

x2

Water and food

consumption

Today a third of food

is wasted

Zero waste

Consumer Retail Agriculture Postharvest Manufacture & Distribution

Why?

Recommenda tions**

• Poor farming conditions

• Extreme weather, water stress

• Mechanical damage • Spoilage • Harvest losses • Out-grades

• Lack of appropriate storage

• Inadequate infrastructure and distribution systems

• Pest, disease, spillage • Lack of cold/cool chain

• Process losses • Damage during

storage, distribution • Contamination, off-

specification • Inefficient

packaging

• Supply chain inefficiencies

• Inappropriate packaging • Adverse Marketing

strategies • High product standards • Poor planning

• Cooked, prepared or served too much

• Not used in time • Confusion over date

labels (e.g. use by / best before)

• Socio economic factors

• Wrong Packaging

• Better information systems

• Education • Technology &

knowledge transfer • Low cost harvest

machinery

• Raise awareness • Fit for purpose • Better packaging • Clarification on date

labels • Improve collection/

separation rates

• Efficient supply chain • Cool/cold chains & dry

storage • Alternative sources of raw

materials packaging from waste

• Improve transparency of food waste and environmental impact

• Deployment of existing technology in storage and transport

• Investment in new technology

Developed countries

Developing countries

*Global food losses and food waste (2011) FAO Foresight. The Future of Food and Farming (2011). Final Project Report. The Government Office for Science, London.

Food waste not only generates superfluous greenhouse gas emissions and wastage of water but also affects farmer income as well as the availability and cost of food.

1/3 food produced in the world is wasted(1.3 billion ton)*

The Nestlé commitment to reduce food loss and waste

Food waste prevention, minimisation, valorisation

Eco-design

Packaging

Responsible Sourcing

Manufacturing and Distribution

Consumer Awareness

Long-term engagement and

partnerships Reporting

Information and

education

Harmonised food dating

Employee training www.nestle.com

Offering tastier and healthier food and beverage choices that are also better for the environment We transform more than 14

million tonnes of perishable raw material into safe and nutritious food products for consumers every year. NESCAFÉ created in 1938 as a solution to Brazil’s coffee bean surplus.

Ongoing R&D programme to help address pre-harvest losses

Plant science initiatives such as marker assisted breeding (non-GMO) to accelerate the production of better quality coffee and cocoa plants Offering farmers a choice of improved plant varieties Helping to reduce the number of plants lost to disease or to climatic change

By 2020, 220 million high-yield, disease-resistant coffee plantlets to farmers.

Helping farmers to avoid milk losses

We provide cooling facilities and training to help farmers reduce milk losses.

365

202

184

94

0

50

100

150

200

250

300

350

400

2010 2011 2012 2013

Qty

(T

ons)

Transit Losses Adj. Volume Renala District (Pakistan)

Packaging prevents food wastage

Achieving zero waste in our factories

72 factories achieved zero waste for disposal in 2014 In 22 NESCAFÉ factories, coffee grounds recovered as a source of renewable energy. Sharing good practices to prevent waste from happening

Providing tools and examples to achieve zero waste for disposal

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Inde

x

Production volume Total on-site energy consumption Total water withdrawal

Total water discharge Direct GHG emissions Total waste for disposal

61%

6%

-14%

-16%

-51%

-38%

Over the last 10 yrs, Nestlé has more than halved the amount of waste for disposal generated in its factories.

Improving capacity and demand planning in distribution

By improving our capacity and demand planning, we are reducing the likelihood of product returns and spoiled goods.

Redistribution of surplus to deliver it to the people who need it most

Nestlé currently provides food to food banks in over 20 countries In 2013, Nestlé UK diverted enough food for 757,000 meals to FareShare, sending 318 fewer tonnes to landfill in the process. Providing knowledge and skills: for example, Nestlé seconded a senior logistics expert to improve FareShare’s food redistribution management systems. Sharing best practice: helping our food industry peers understand how they can benefit from working with FareShare.

Offering consumers the right portion sizes, preparation instructions and storage guidance

Solutions to creatively enjoy leftovers

A variety of different doughs to prepare tasty center of meals. Applicable to engage with consumers over the use of leftover food from their fridge.

Running specific campaigns to encourage employees to reduce food waste in canteens At our headquarters in

Switzerland we succeeded in reducing food waste by one third in six months by encouraging employees to take an appropriate portion of food from the self-service buffet and by allowing them to buy leftovers and take them home.

Proactive long-term engagement and partnership on food wastage

Defining food waste and loss in line with the UN FAO

Source: FAO 2014, Food losses and waste in the context of sustainable food systems Note: Food Drink Europe supports FAO definition on food waste and loss

Food waste and loss is the decrease of edible food mass intended for human consumption

Defining the scope of the WRI Food loss and waste protocol

2015 Nestlé in Society report

Thank you