Sustainably Addressing the Global Water Challenge

The growing world population is leading us into a global water crisis that will only be exacerbated by climate change. This is putting at risk everything we rely on, from electronic devices to the food we eat, because it all requires water.

However, we do not believe that the global water challenge can be addressed by just one water user or actor. So while we are implementing our detailed Commitment on Water Stewardship by improving water efficiency across our own operations, educating our suppliers, and engaging in awareness campaigns, we are also working with a range of stakeholders. These include governments, UN bodies, international organizations, and nongovernmental organizations.

Advocating for effective water policies and stewardship

Beyond our own operations and factory gates, our aim is to promote awareness of the water challenges facing us, stimulate dialogue, and push for collaborative action to achieve sustainable water stewardship globally.

In July 2012, UN Secretary-General Ban Ki-moon announced that 27 members of a high-level panel would advise on a global development framework beyond 2015, leading industrialists to reach out to business. Nestlé’s Chairman, Peter Brabeck-Letmathe, acted as a water ambassador and helped assemble a broader submission, gathering opinion on whether new post-2015 UN Sustainable Development Goals were needed for water security and to address overuse. The feedback clearly supported the introduction of a new individual goal to reflect the importance of water in society and embrace water security in broad terms.

Improving water management in our own operations …

If we are to engage credibly in the public debate on water, we must first walk the talk within our own business. That is why we have committed to “Work to achieve water efficiency across our operations.” Concentrating on installations in particularly water-stressed regions, we have accelerated water-use-reduction projects and initiatives at our Lagos de Moreno factory in Mexico, our Mossel Bay factory in South Africa, and our Moga factory in India. In Mexico, when the project is completed, it will allow the factory to become self-sufficient in water consumption – that means zero consumption of fresh water (deep well) during normal production.

… and in our agricultural supply chain

In 2011, Nestlé and the Swiss Agency for Development and Cooperation (SDC) engaged in a public-private partnership, financing a study to evaluate water sustainability in the coffee sector of Vietnam. The results showed that smallholder coffee farmers tend to irrigate up to two times more than necessary. It was estimated that 60 percent of the water used for irrigation could be saved and costs avoided (i.e., labor and energy) of CHF 49.5 per ton of green coffee beans.

In Colombia, since 2010, we have been part of a public-private partnership with SDC to apply the “water footprint” concept and methodology on dairy farms and at Nestlé production plants. The initiative was designed to improve water-use awareness, efficiency, and water pollution control. It features four Swiss and seven national companies that are active in Colombia, along with research institutions. The project goal has been to identify water-use hotspots in the lifecycles of dairy products, and implement the necessary measures to reduce the water footprint.

Collaborative action

We are a founding signatory of the UNGC CEO Water Mandate – a unique publicprivate initiative designed to assist companies in the development, implementation, and disclosure of water sustainability policies and practices. We actively participate in the Mandate’s working streams on Policy Engagement, Water Disclosure, and the Human Rights to Water, and publish a Communication on Progress every year. In 2014 the CEO Water Mandate published its Corporate Water Disclosure Guidelines, and in early 2015 the Mandate published a new Guidance for Companies on Respecting the Human Rights to Water and Sanitation: Bringing a Human Rights Lens to Corporate Water Stewardship. This guidance was produced together with Shift and cofunded by Nestlé. It is designed to help companies translate their responsibilities to respect the human rights to water and sanitation into existing water management policies, practices, and company culture. We will be piloting the guidance as part of our human rights and water due diligence.

In 2013, we were one of the first signatories to make a pledge on Water, Sanitation, and Hygiene Implementation at the Workplace (WASH), drawn up by the World Business Council for Sustainable Development (WBCSD), which commits businesses to upholding the human rights to water and sanitation within their operations. The WBCSD helps drive debate and policy change in favor of good practice and sustainable development solutions. We currently support the activities of its Water Leadership Group and are represented in many of its work streams, which include: WASH, the value of water, water stewardship, and the water - energy - food - fiber nexus.

Furthermore, Nestlé is a founding partner of the Alliance for Water Stewardship (AWS). As a member of the AWS International Standard Development Committee, we have supported the production of their new voluntary international water stewardship standard.

Since 2008, Nestlé has been an active participant in the 2030 Water Resources Group, an independent public-private organization that unlocks the potential of water groups through collaboration. Many of our most senior people, including our Chairman, play a leading role in the group, which is currently chaired by Nestlé. The group is invited into a country by its national government, and then works alongside existing national water programs or experts to put in place sustainable water resource management.

An ongoing commitment

Nestlé recognizes that the long-term success of our company is built upon effective water stewardship in the watersheds where our raw materials are sourced from, where our factories are located, and where our suppliers and consumers live.

Our five Water Commitments reflect our Creating Shared Value approach to business, which is helping us to build a company capable of delivering superior long-term shareholder value and helping people improve their nutrition, health, and wellness. We intend to report on the details of our progress against our commitments year on year through our Nestlé in Society report. You can also read our full water position and strategy in the Nestlé Commitment on Water Stewardship. Both documents can be found on our website.

We have clear and challenging goals as well as strategies aimed at making a difference in the communities that we depend upon and the surrounding nature. But there is still a lot to do, and we know we will need the help of others along the way. We have learned that by working together, we can make a positive difference.