Report on Nestlé

The Nestlé Policy on the Environment

CEO's Statement
Over the past several decades, significant progress has been achieved towards protecting
the world's environment. This objective remains a fundamental duty and a collective
responsibility that must be shared between the public, governments and the private sector.
As the World Food Company, Nestlé is dedicated to providing consumers with the best
food throughout life. Our Company's primary function is the transformation of perishable
raw materials into finished products that meet consumers' expectations for safety, quality,
convenience, and value. From our earliest days, we have recognized the need to protect
the environment in our business activities. Exercising this commitment, which is part of
our broader commitment towards the good of the community, remains central to our
business today and tomorrow.
The Nestlé Policy on the Environment was published in 1991 to define our world-wide
strategy on environmental issues and to state our long-standing commitment to
environmentally sound business practices. It is communicated internally within the Nestlé
Group and externally to all interested parties and institutions. Following its publication,
the Nestlé Environmental Management System (NEMS) was established to consolidate
all environmental measures taken by the Nestlé Group. The NEMS is being implemented
across our entire business.
Today, preserving natural resources and minimizing waste has become a part of day-to-
day business for our employees and is an integral part of our strategy to achieve global
competitiveness. The 1999 update of the Nestlé Policy on the Environment reiterates our
strong environmental commitment and reflects our priorities as we move into the new
millennium. It also recognises developments in the international environmental arena.
The application of the Nestlé Policy on the Environment at every level of our operation
forms an essential part of the Nestlé Corporate Business Principles and enables us to
contribute to sustainable development — meeting the needs of the present, without
compromising the ability of future generations to meet their own needs.
Research & Development
Nestlé's research and development centers have two primary objectives: to create new
products and manufacturing processes and to improve those that already exist. Along
with product quality and safety, the conservation of resources and the preservation of the
environment form an integral part of the development criteria for new projects.
Research and development encompasses a wide range of environmentally-related
activities with emphasis on:
environmentally sound production techniques and sourcing criteria for
agricultural raw materials;
processing methods that minimize water and energy consumption, as well as
waste g
eneration;

packaging designs that reduce total waste and enable environmentally sound
 disposal options while safeguarding product safety and quality; and
innovative ways to recover by-products and thus generate secondary raw
materials and energy.
For important product or process innovation and renovation, Nestlé's research and
development centers prepare an environmental impact study. This covers significant
aspects in the product life cycle, from the sourcing of raw materials, through processing,
to the packaged consumer product and the end-life of the packaging material. This study
is carefully evaluated, in conjunction with detailed information on the potential
manufacturing site, to ensure that new projects meet Nestlé's environmental standards.
Of the 807 million Swiss francs spent in 1998 on Nestlé R&D throughout the Group, a
good part went towards enhancing the wholesomeness of our products. Additionally,
these expenditures improved our production process, created better packaging, and
avoided waste and unwanted residues.
R&D Is Making a Difference
As an example, significant progress has been made in recent years in energy and water
intensive blanching and cooking operations. At the end of these processes water must be
removed which resulted in wasted energy and raw materials — vegetables or pasta for
example.
Now water is replaced by steam at low pressure. As a result, water consumption was
reduced by 80% and product losses during cooking were more than halved. This means
lower costs for energy and for wastewater treatment, while at the same time increasing
the product yield by 6%. In another example, extraction residues from the production of
chicory-based instant drinks, which were expensive to dispose of, have been turned into a
valuable animal feed ingredient.
A recent processing improvement for french fries showed product quality can be
significantly improved while also saving energy. One conclusion of R&D is that what is
good for the environment is often synonymous with good industrial practice.
Preserving Species
The disappearance of many species and varieties of animals and plants is a reality. Over
the past few years, this issue has attracted increasing recognition and much is being done
today to preserve the earth's biological diversity. Industry plays an important role in these
efforts since many business sectors depend on nature's diversity for their sustainable
success. Nestlé, as the world's largest single buyer of coffee and cocoa, lives up to its
responsibility by developing the most advanced preservation techniques for many
different coffee and cocoa varieties threatened by extinction. In addition, Nestlé
collaborates with public research institutes to share its experience and makes its results
freely available.
In the future, Nestlé R&D units are determined to build environmental protection into
products and processes right from the start. High on the agenda are integrated farming
techniques involving minimal use of fertilizers and chemicals, and recourse to biological
pest control methods whenever possible.

SUPPLY CHAIN
Agricultural Raw Materials
In general, Nestlé is not directly involved in the production of raw materials. Wherever
possible, locally available raw materials are used. They are either obtained directly from
producers or purchased through trade channels. Nestlé applies the following principles
when sourcing raw materials:
all raw materials must meet both legal and internal quality criteria, including
limits on possible environmental contaminants;
whenever possible, preference is given to raw materials that are produced by
environmentally sound farming methods (e.g. integrated crop management); and;
farmers are encouraged to apply sustainable farming methods and, where
appropriate, are provided with assistance in crop production and dairy farming. Such
assistance includes the provision of recommendations for the conservation of natural
resources (soil, water, air, energy, bio-diversity) and techniques for reducing
environmental impact.
Manufacturing
Manufacturing comprises all processes that are necessary to transform perishable raw
materials into safe and convenient food products for consumers. Nestlé strives to achieve
optimal performance in its manufacturing activities, including the environmental aspects.
As such, the manufacturing practices of the Group:
respect natural resources by emphasizing the efficient use of raw materials, water
and energy;
minimize the use of environmentally-hazardous substances;
continuously seek improvement in the efficiency of production facilities; and
reduce waste generation and emissions as much as possible, consider recycling of
waste a priority and dispose of non-recyclable waste in an environmentally sound
manner.
Regular environmental assessments of Nestlé's manufacturing practices are conducted to:
evaluate factory performance;
review factory compliance with applicable legislation and Nestlé's own standards;
fully investigate incidents that could affect the environment and take relevant
measures; and
compare results with previous targets and set new improvement objectives.
In addition, Nestlé exchanges information on environmental protection technology and
practices in order to ensure a wide use of best practices.
Nestlé encourages its contract manufacturers to use environmentally sound
manufacturing practices.
Environmental Performance of Our Factories
Minimizing the environmental impact of our factories has always been a prime
consideration. Therefore, we periodically review environmental performance of the entire
Nestlé Group. The results are very encouraging:
Nestlé has no major environmental problems.
Nestlé complies with relevant regulations or, in a few exceptional cases, has
initiated action to do so.
Measures taken are proactive and often anticipate future regulations. Many times,
measures taken to improve the environment also reduce costs.
These surveys also allow us to put concrete figures to our efforts: Over the past years,
Nestlé has invested an average of some 100 million Swiss francs per year in specific
measures to protect the environment. This amounts to approximately 3% of total capital
expenditure and includes only readily identifiable environmental investments. In
addition, substantial amounts were expended as part of regular capital investment projects
and factory environmental operating costs. Examples of these additional expenditures
include environmental aspects related to factory construction and renovation,
environmental training of personnel, and maintenance costs for wastewater treatment
facilities.
Recent Environmental Investment
The factory environmental surveys are a valuable management tool which are
periodically repeated as part of the Nestlé Environmental Management System (NEMS).
Water, Our Top Priority
Nestlé engineers and factory planners have pioneered wastewater treatment the world
over. Whenever factories went up, often in remote locations of developing countries,
where neither local expectations nor legislation required environmental safeguards of any
kind, appropriate wastewater treatment was provided. Nearly 30 million Swiss francs
have been invested annually over the past few years in wastewater treatment facilities.
While we can be genuinely proud of these achievements around the world, we continue
to upgrade existing plants and build new ones where necessary.
Examples of Nestlé's substantial investments in this area are:
As early as 1920 Nestlé had constructed and started the operation of a wastewater
treatment plant in Kempttal near Zurich. At that time it included a settling basin and
trickling filter. 1932 saw the addition of a biological component which constituted
Switzerland's first wastewater treatment plant operating with activated sludge, a
principle still used today.
An 80% reduction in water consumption of some cooking processes through an
extensive R&D project.
A facility in Himeji, Japan, serving one of the largest instant coffee factories in
the world, was rightly considered a model installation when it was built almost 30
years ago, and thousands of Japanese water treatment specialists have visited it over
the years.
A facility in Dongguan, China has established itself as a model for wastewater
treatment. It too is visited regularly by Chinese wastewater specialists.
Reducing Air Emissions
Another important investment area is for air protection. The biggest environmental
investments over the past few years went into the conversion of heating units from heavy
fuel to natural gas. When these conversions can be used to install combined steam and
power generation systems; impressive energy savings are achieved in addition to
environmental benefits. Therefore, we favor these co-generation plants wherever feasible.
Co-generation processes are much more efficient than conventional power plants and
therefore usually lead to a significant, global reduction in both energy consumption and
release of "greenhouse" gases. Nestlé currently operates over 10 co-generation facilities
throughout the world.
Co-generation examples are:
At the Nestlé Gerona plant in Spain, the co-generation system, commissioned in 1991,
reduced gas consumption by 3600 tons of oil, equivalent per year, and decreased overall
carbon dioxide emissions by 8000 tons annually.
The savings at the York factory in Britain, where a coal-fired boiler house has been
replaced by a gas turbine co-generation plant, are very impressive. Carbon dioxide output
was reduced from 131,000 tons per year to 59,000 tons per year. Additionally, sulfur
dioxide emissions are completely avoided at the factory level (650 tons per year) and cut
by more than half, from 1059 to 436 tons, at the level of the supplying national power
station.
Phasing Out Ozone-Damaging CFCs
The characteristics of chlorofluorocarbons (CFCs) make them suitable for a wide range
of refrigeration and air conditioning applications necessary for many of Nestlé's
manufacturing processes. However, there is evidence that they contribute to the depletion
of the stratospheric ozone layer. This has led to several inter-governmental agreements to
phase out the use of CFC's. Nestlé anticipated this phase out early and has established a
detailed CFC phase-out program to replace CFCs used in industrial refrigeration systems
with non-CFC alternatives. To date, Nestlé has reduced it's CFC emissions by more than
80% of 1986 levels. We are committed to continuing to address the issue of ozone-
depleting substances and further improve these dramatic results.

Recovering Solid Waste

Landfills in many countries are rapidly approaching their limits, thus becoming a costly
and cumbersome problem. However, Nestlé has stopped looking at solid waste as part of
the problem, but as part of the solution. Solid waste has become a valuable raw material
when recycled, composted or used for fuel in energy recovery processes.
Coffee grounds, which are a by-product of instant coffee manufacturing, is a case in
point: Much of the investment related to solid waste is earmarked to build coffee ground
energy-recovery systems that use the coffee grounds' energy value to produce steam for
our factories.
In Raja Muda, Malaysia we installed this state-of-the-art machinery, the first of its kind in
Asia, outside Japan. Now coffee grounds are used as fuel. Thus, for every 100 tons of
coffee grounds we save the equivalent of about 40 tons of fossil fuel. The decision to
develop and install this energy-recovery system is typical for how Nestlé anticipates
problems and pioneers solutions.
Additionally, in some markets factory solid wastes are composted to produce a high
quality soil amendment product. In some cases this product is packaged and sold for use
as a 1natural fertilizer.
In New Milford Connecticut, USA Nestlé built a state of the art composting facility that
processes both solid and liquid wastes, sludges, and by-products from its local factories,
co-packers, and distribution centers. Additionally, the composting facility provides a
solution to the local community for disposal of landscaping and gardening wastes, which
are banned from landfills in that area. This facility recycles more than 50,000 tons of
waste materials annually, preventing them from going to landfills.
Packaging
Packaging serves a major role in our daily lives. It protects food products from spoilage
and ensures safety from manufacture through storage, distribution and consumption.
Packaging may also provide tamper-evidence features. It communicates information,
including nutritional information and serving instructions, and provides the convenience
demanded by today's consumers.
Nestlé is committed to reducing the environmental impact of packaging, without
jeopardizing the safety, quality or consumer acceptance of its products. It is Nestlé's
objective to develop safe and wholesome packaged foods using the most efficient and
appropriate packaging materials available, while, at the same time, satisfying consumer
requirements and expectations.
Nestlé seeks packaging solutions that:
result in the lowest possible weight and volume of packages;
take into account new packaging materials and processes that reduce the impact
on the environment;
avoid the use of substances that can adversely impact the environment during
packaging production and disposal;
decrease packaging waste at all stages, including package manufacturing, use and
disposal;
increase the use of recycled materials wherever possible; and
increase the recyclability and compatibility of its packages with existing
packaging waste management schemes.
Regular assessments of Nestlé's packaging are carried out and action plans are
implemented.
Nestlé supports industrial and governmental efforts to promote integrated waste
management that takes into consideration matters such as source reduction, reuse,
recycling, composting, energy recovery, and landfill.
Nestlé encourages suppliers of its packaging materials to adopt sound environmental
practices.
Packaging Source Reduction
Packaging waste is one environmental issue that affects the entire consumer goods
industry. However, the gap is wide between reality and perception: While food packaging
accounts for less than 1% of total solid waste in most countries, it is highly visible to
consumers. Even if the problem of food packaging is small in relation to overall
environmental problems, it is nevertheless an important issue for Nestlé.
The most direct opportunity to reduce the scale of the problem is to use as little material
as possible. This is not a recent effort by the food industry. Over the last four decades,
between the 1950s and 1990s, the weight of a glass milk bottle has been reduced by 36%,
a steel food can by 66%, and an aluminium beer can by 81%.
Even though packaging source reduction has always been a consideration, we decided to
reinforce these efforts in a more systematic way. The first world-wide environmental
packaging survey was completed in 1991 for the Nestlé Group and has been repeated
annually ever since.
The last survey revealed that by the end of 1998, Nestlé, without compromising product
quality, reduced our use of packaging materials by nearly 150,000 tons compared to
1990. These reductions resulted in savings of approximately 250 million Swiss francs.
Cumulative Reductions in Packaging Materials
Examples of Packaging Source Reduction
A few recent examples that underline Nestlé's efforts:
In Australia the Easter Egg Novelty cartons were reduced in size by altering the design to
provide support for the egg. The new design resulted in a 31% reduction in use of paper
board.
In Pakistan the Nestlé NIDO package, which consisted of 4 bags in a display box, was
replaced by an aluminium stand-up pouch. This resulted in a 39% reduction, or 47 tons,
and saves 290,000 Swiss francs per year.
In Indonesia the Nestlé Dancow 200 and 400g display boxes were reduced in size by 18
and 25%, respectively. This resulted in a waste reduction of 38 tons and saved nearly
100,000 Swiss francs per year.
In Columbia the display box for Maggi bouillon tablets was eliminated. This resulted in a
reduction of 303 tons of packaging material and represented a savings of over one million
Swiss francs per year.
While important progress has already been achieved, we strive to continuously identify
opportunities for further reduction.
Distribution
Distribution of products from the factory to the customer involves transport and storage.
Efficient management of the distribution system is essential to preserve the safety and
quality of Nestlé's products, to ensure a high level of customer service, and to meet its
commitment to environmentally sound business practices.
To this end, Nestlé:
selects appropriate transportation modes, with particular attention given to
optimum unit loads (pallets), vehicle-capacity utilization, route planning, and
consolidation with outside partners, scheduling, and fuel conservation;
optimises warehouse and distribution center locations and environmentally
efficient operational systems; and
identifies and implements measures to reduce energy consumption and waste.
Nestlé encourages its distribution service providers to use environmentally sound
practices.
Distributing our goods from factory to retail centers consumes some 400 million liters of
fuel each year. While we undertake every effort to reduce this, it is useful to put this
figure into perspective: the distribution of 10 kg of our products from factories to retail
outlets in Europe requires an average of 0.25 liters of fuel. To transport the same amount
from the supermarket to home, consumers burn, on average, one to two liters of fuel.
Efficient Container Loading
Improving transport efficiency benefits the environment, but it also makes economic
sense. Seemingly simple measures, such as replacing bulky wooden pallets by thin,
carton-type slip-sheets, have the potential to save more than 600 international truck
journeys a year in our European operations alone. Optimizing shipping cases to fill
transport vehicles without leaving gaps between differently shaped containers, together
with optimal route planning, Nestlé has already achieved substantial savings.
Pioneering Rail Transport
In countries with competitive railways, moving goods from road to rail is an effective
option to reduce road congestion. For example:

Vittel has developed a specially adapted block train concept to supply its regional
terminals in France. Vittel transports nearly half of its production, or over 930 million
bottles per year, by rail.
Our Swiss, and later the Austrian subsidiary, convinced the railways to offer
overnight trains to bring goods from the national distribution centers to terminal
stations for local deliveries by road.
Marketing
Marketing is based on the principle of satisfying consumers' needs. The overall trust of
consumers in Nestlé's brands and products comes from a quality image that has been
continuously strengthened for over 130 years. Nestlé strives to increase this trust through
its commitment to environmentally sound business practices.
For this reason, Nestlé:
opposes short-term, opportunistic "green marketing" that can mislead the
consumer;
bases environmental claims in advertising, promotional material, labelling, and
corporate communications on solid scientific evidence; and
selects materials and printing methods for merchandising materials such as
consumer offers, in-store promotions, display materials, leaflet, and printed materials
in light of environmental considerations.
No "Green Marketing"
Nestlé adheres to the Code on Environmental Advertising established by the International
Chamber of Commerce. This Code is based on the principle of self-regulation and self-
discipline and is intended to assist companies in making responsible use of environmental
claims in advertising.
Sustainable Development
For Nestlé, respect for the environment is part of a broader perspective on sustainable
development. Nestlé has adhered to The Business Charter for Sustainable Development
of the International Chamber of Commerce (ICC) since its publication in 1991. Measures
for environmental protection often trigger beneficial economic and social effects, and
vice-versa. Since the Rio Summit in 1992, all of society, be it governments, industry,
NGOs or others, have tried to translate the sustainable development concept into reality.
As part of this effort, we participate in the work of several organizations dealing with this
subject: For example, we are a founding member of the World Business Council for
Sustainable Development (WBCSD) in Geneva, and we contribute actively in the
Working Group Sustainable Development in the City of Vevey.
Nestlé Working with Communities —
South Africa
Nestlé is supporting several community-based organizations in putting sustainable
development into practice. Recently, in South Africa, we have given support to Eco Link
and LEAP to finance and help manage programs which clean up the environment and
improve hygiene in rural areas.
The Eco Link project is aimed at providing assistance through education. People are
taught to collect litter such as paper, cardboard and cans, which when put in a trench and
covered with a compost can then be used to plant vegetables. The litter provides the
necessary drainage and moisture retention. The project has dual advantages: it cleans up
the environment and provides fresh vegetables for the family, as well as providing an
income when surplus food is grown. This program is now being presented to school
children who are encouraged to grow small gardens at school.
In rural areas water supply is a major problem. Women can spend almost 5 hours a day
collecting water for the home. In addition, the springs from which they take the water are
often used by animals and can be polluted. Nestlé is taking part in a project to help
villagers establish a supply of clean water near to home.
People were taught how to identify sources of underground springs and to channel rain
water and store it in reasonably hygienic conditions. The team taught villagers how to
construct a tank to catch the rain water using corrugated iron and wire mesh as a "mould"
which is then plastered with a cement, stone and sand mixture. With a wooden cover on
top and a tap at the base the villagers have the means to store clean, drinkable water.
Information, Communication & Training
Nestlé provides information on its activities, including those related to the protection of
the environment. Within this context, Nestlé:
communicates its environmental efforts, both inside and outside the Company, to
build understanding concerning its environmental commitment;
fosters strong environmental awareness and responsibility among its employees
through training programs; and
shares environmental information with governments, local communities, industry,
consumers and other interested stakeholders.
We do this through a wide variety of means. For example, our factory environmental
surveys involve thousands of people at all levels, from top management to the factory
floor. These practical exercises are reinforced by in-house magazines, specialized
newsletters, and videos.
To help educate the public, Nestlé works with organizations that produce films on
environmental issues, sponsor re-forestation programs, or create educational materials for
the public. These activities are also important to our role in sustainable development.
At our international training center in Switzerland, environmental issues are now a
regular part of courses attended by Nestlé's international executives. These efforts are
multiplied by countless training sessions organized by our Group companies.
Internal communication and training are a priority for Nestlé. As a people-driven
company, employees are our most important asset. Thus, we emphasize all measures that
help them act in an environmentally responsible manner.
Legislation
Nestlé complies with all laws and regulations which apply to its activities, including
those involving the environment. To promote an effective regulatory system with respect
to the environment, Nestlé:
participates in legislative and regulatory discussions between international
organizations, government representatives, industry, the scientific community, and
consumer associations;
supports appropriate voluntary initiatives designed to protect the environment;
fosters rational environmental laws and regulations;
 opposes unjustified prohibitions and other discriminatory measures; and
favors the harmonizing of environmental laws, regulations and standards in order
to eliminate existing and future trade barriers.
Nestlé Environmental Management System
Nestlé has made systematic efforts to account for environmental concerns of all its
activities. In particular, we have appointed environmental officers, issued policies,
conducted environmental surveys, reinforced training efforts, developed environmental
communications, and made many innovations in our packaging.
To complement and integrate these efforts, we created and implemented Nestlé's own
Environmental Management System.
The Nestlé Environmental Management System (NEMS) is an essential corporate
management tool that consolidates all organizational and technical measures taken by the
Group to achieve environmentally sound business practices. The NEMS objectives
include the following:
to provide a systematic approach that ensures compliance with Nestlé's
environmental policy, applicable legislation and Nestlé's operational standards;
to ensure the continuous improvement of Nestlé's environmental performance, for
example, through the conservation of natural resources and minimizing waste;
to achieve compatibility with international voluntary standards on environmental
management systems, such as ISO 14001 and the European Union Eco-Management
and Audit Scheme; and
to build mutual trust with consumers, governmental authorities and business
partners.
The Nestlé Environmental Management System is being implemented throughout
Nestlé's entire operation.
We believe NEMS will enhance our global performance and contribute to our
competitiveness in the world market.
NEMS in Action: Germany
First EMAS Registration of a Nestlé Factory at Weiding, Germany
On December 19, 1995, our factory in Weiding, Germany became the first Nestlé factory
in Europe to be registered in the European Eco-Management and Audit Scheme (EMAS).
This means that Weiding's environmental management system and public environmental
statement have been examined and validated by an external, accredited verifier.
Weiding Factory Greatly Reduced Disposed Waste
Even Prior to EMAS
Employing around 900 people and producing more than 550 high-value products ranging
from infant foods to condensed milk to chilled deserts, the Weiding factory is one of
largest plants in Germany. The existence of a comprehensive waste management scheme
at the factory was of great assistance in developing the new environmental management
system. As part of the development of the environmental management system,
environmental manuals were prepared both for the factory and Nestlé Germany. These
manuals provide the foundation of the system setting policies, principles, and
management procedures related to the environmental aspects of the operations.
In addition, a site-related environmental statement was published that included an
"invitation to dialogue" addressed to employees, authorities, clients, suppliers, the media,
and neighboring communities. The EMAS registration has been successfully repeated in
1998 and complemented with an ISO 14001 certification.
Following Weiding, several other Nestlé factories throughout the world have succeeded
in obtaining ISO 14001 certification and EMAS registration.
NEMS in Action: USA
In 1996, the Danville, Virginia, USA factory was the first Nestlé US factory to fully
implement NEMS - which is based on and consistent with ISO 14001
Danville has shown that good environment is also good business. In the first year of
implementing NEMS, the factory reduced solid waste by over 10% resulting in savings of
$370,000 and reduced its wastewater impact and concentrations by 8%.
These successes were made possible through the dedication of the factory employees and
a strong emphasis on training and awareness. The factory implemented an environmental
training program as part of the new employee orientation and the semi-annual
environmental training for all employees.
Waste Reduced Through NEMS
NEMS Supports the Environment and Business
Cumulative Savings
The continuing nature of NEMS has facilitated similar accomplishments annually. To
date, factory savings related to NEMS have exceeded $800,000 and solid wastes have
been reduced by 41%.
NEMS in Action: Philippines
Part of NEMS is ensuring a high degree of employee environmental awareness. As an
example, Nestlé Philippines, in implementation of NEMS, prepared through an
interdisciplinary task force, a highly regarded environmental training program. This
program is continuously provided to groups of employees and highlights specific issues
related to their job functions and protection of the environment.
The success of this program is evidenced by the numerous awards received by Nestlé
Philippines manufacturing facilities. Most notable of these are:
"Outstanding Healthy Workplace Award" given by government agencies including
the Department of Health, Department of Environment and Natural Resources, and
the Department of Labor and Employment, to the Cabuyao and Lipa Factories in
1998.
"Mother Nature Award" given by the Pollution Control Association of the
Philippines in 1998.
"Anvil Award of Excellence" given by the Public Relations Society of the
Philippines for Nestlé's efforts in enhancing the environmental awareness of the
public.
"Most Environment-Friendly Company" Award given by the Laguna Lake
Development Authority to three Nestlé factories (Cabuyao, Aurora, and Alabang) in
1996.
One of the "Greenest Company" Awards given by the DENR to the Aurora factory
in 1996.
The water discharge from these facilities is of very high quality. Tilapia, a fresh water
fish, often harvested for food, abundantly grows in the clarifying ponds and discharge
canals of their treatment facilities.
ENVIRONMENTAL UPDATE
World Water Resource Issues
World Water Forum - The Hague
The 2nd World Water Forum was held at The Hague, Netherlands, from 17 - 22 March
2000, timed to culminate on a Water Ministerial Conference and World Water Day. The
World Water Forum brought together representatives from politics, business and experts
in the water field as well as non-governmental organizations, and has as its goal to
heighten the awareness of the problems of water in the world, with the objective of
ensuring a worldwide supply of clean water by 2025. The Forum organized a CEO Panel
which included Chief Executive Officers from 10 international companies from three
broad sectors - water services, consumer products and water engineering and consultancy.
The CEO Panel issued a joint statement for the Ministerial Conference, which can be
found at the World Water Forum's website. Below is the text of Nestlé CEO, Peter
Brabeck-Letmathe, who was one of the 10 CEOs present in The Hague.
"As an industrialist, as a citizen and as a father, I am deeply conscious of the urgency for
a new approach for the sustainable use of water.

We need water to survive, we, as industrialists, need it to produce food for the untold
hundreds of millions of human beings still suffering from hunger and the billions yet to
be born. Water is essential for Nestlé's economic well-being and the steps taken to
preserve its quality, to ensure careful and responsible use spring from enlightened self-
interest. So do our yearly investments of more than CHF 100 million in environmental
and water-related projects, so do the hundreds of waste water treatment plants our
company operates worldwide.

The problem we are facing today, however, goes far beyond what we, as a single
company, can do. As a good corporate citizen of the world, we pledge our support to the
broad-based, co-operative effort needed to find lasting solutions.
Let us be clear about the magnitude of the challenge and let us look at facts. Fact one: all
the water used by Nestlé's 70 sources for our worldwide bottled water business Perrier
Vittel amounts to 0.0006 percent of the estimated global water withdrawals. Fact two: far
more than 60 percent of the available water is used in agriculture - much of it wastefully,
since over half of it is lost. Yet some refuse even to consider modern biotechnology,
presently a conceivable way to higher yields, with less water, less fertilizer, less
pesticides.

As an entrepreneur, I remain optimistic. In the Nestlé Group, we shall pursue and

intensify our efforts to handle water as a valuable commodity. Our "Water Policy"
describes those steps in detail. Furthermore, you can count on my corporation's support,
its know-how and its good will to all measures to which we can bring a real contribution.
Nestlé grew to its present size by taking a long-term view. I believe that helping to
preserve the planet's most vital resource is consistent with that view."
March 20 2000

Our pledge to infant nutrition dates back 130 years to our founder Henri Nestlé
The production of infant food goes right back to the origins of the Nestlé Company. Henri
Nestlé's 'Farine Lactée' was the first product to bear the Nestlé name; it was the first
industrially-produced infant food, based on 'wholesome cow's milk' mixed with cereals.
In the middle of the nineteenth century, one in five children born in Switzerland in the
working class died before the end of their first year. Increasing numbers of mothers were
going out to work, and had no time to breast feed.
The First Cereal for Infants
It was against this background that Nestlé had developed his infant food for young
children, and in 1867 a physician persuaded him to try it on a 15-day old boy who was
very ill — he had been born prematurely and was refusing his mother's milk and all other
types of nourishment. Nestlé's new food worked, and the boy survived. From the very
beginning, Nestlé's product was never intended as a competitor for mother's milk. In
1869, he wrote: "During the first months, the mother's milk will always be the most
natural nutrient, and every mother able to do so should herself suckle her children."
Growing Worldwide Demand
Nevertheless, the demand for his product was so great that it was soon being sold
throughout Europe and as far afield as Russia, the United States and Australia. The
factors that made it a success then — quality and nutritional value — are still as valid
today for the wide range of infant formula, cereals and baby food in jars manufactured by
Nestlé. The World Health Organization (WHO) recognizes that there is a legitimate
market for infant formula, when a mother cannot or chooses not to breast feed her child.
Nestlé markets infant formula in conformity with the principles and aim of the WHO
International Code of Marketing Breast Milk Substitutes, and seeks dialogue and
cooperation with the international health community and in particular with the WHO and
UNICEF, to identify problems and their solution. Nestlé's expertise as the world's leading
infant food manufacturer, gained over more than 125 years, is put at the disposal of health
authorities, the medical profession and mothers and children everywhere.
Breast milk is best for babies. Before you decide to use an infant formula consult
your doctor or clinic for advice.
SWOT ANALYSIS:
Strengths:
In mine view these are the strengths of Nestle. The first and the most important strength
of Nestle is the name of company itself. They never compromise on quality. They produce
quality products according to the specification of customer. Their system of sale & sale
promotion is also one of the strength of Nestle. In the area in which they want to sell the
product they hold seminars and shows. In this area they monitor the sale and increase the
production. They try to convince ultimate consumer.
The milk collection procedure of Nestle is also one of its strength. They collect milk from
selected people and check its purity at the location. Then special trucks take it to factory.
Where they boil milk at 140 degree centigrade and then cool it. This process is repeated
for 3 to 4 times. There milk contains 3.5% fat, which is recommended internationally.
Weaknesses:
One of the weakness of nestle is the product range of Nestle. As there product line is very
vast, so they cannot give equal attention toward the promotion of each product. We can
take the example of candies produced by Nestle, they give absolutely no attention toward
promoting them despite the fact that if we consider the trust people have on nestle brand
there is a large market for candies, While they are promoting their milk products
effectively. The reason behind this discrepancy is that they have limited budget to
promote their products.
The other weakness of Nestle is that the company has a very limited number of sales staff
in the southern Punjab due to which they are losing some market.
Opportunities:
Nestle can increase their share if they focus on lower middle class. We can take the
example of small pack of Every Day tea whitener whose introduction increases the sales
of nestle tremendously. The reason for this was that the price of Every Day tea whitener
was with in the range of lower middle class. So, Nestle can increase its share by focusing
on lower middle class.
The other opportunity for Nestle is that if they introduced milk bottle like Candia and sell
them directly to the customers they can increase their share. By selling directly to
customers means that they provide milk to the people at their doorsteps.
Threats:
In Pakistan Nestle face threats from lower companies. We can take the example Haleeb
and Dairy Queen. The sales of these products have badly affected the sale of Nestle Milk
Pack. Haleeb is well promoted than the Nestle Milk Pak.
Nestle also face threat from Cadbury, which is multinational company. Cadbury sell
candies and chocolates and it affect the sale of Nestle products in the field of candies.