Perspectives on Biodiversity

Perspectives on Biodiversity

Duncan Pollard Sustainability Advisor CBD, Instituto LIFE, CNI 15th June 2012

NestlĂŠ Products and Brands

Billionaire Brands 7.7% organic growth in 2011

10,000 different products 1 billion products sold every day

200 different blends of NescafĂŠ to meet local tastes

Poland

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Europe

Malaysia

Africa,Greece Russia, Israel

Switzerland

Japan

Russia

Agricultural Commodities

Direct Procurement from 670,000 farmers Direct Procurement from Farmers

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Dependency

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Impact Agriculture: A threat to Natural Capital

Agriculture: An opportunity for Natural Capital

• Conversion of Forests, Wetlands, Grasslands • Overuse of Chemicals & Water • Soil Degradation.

• Restoration of Forests, Wetlands, Grasslands • Preserve Water Quality & Quantity, • Increase Soil Fertility

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Grass Fed Dairy Value Chain Electricity: Fossil Fuels, Renewables Buildings: Metal, Timber, Concrete

Dependency Land Rainfall/Water Electricity Soil, Vegetation Buildings Fertiliser Land

Cows Cows

Vehicles Fossil Fuels Land

Dairy

Transport x3

CO2 Land

CO2 Pollution Land

Packaging Water Electricity Bldgs/Land

Factory

Water Electricity Bldgs/Land

Retailer

Land

Consumer Use

Impacts +/Methane/NOx Water Biogas, Fertiliser Nitrogen

CO2 Pollution Land

CO2 Land

Packaging Waste Methane Land

Land: Loss of Biodiversity Company Sphere of Influence Med/High

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Med/High

Low/Medium

High

Low

Low/Medium

Responsible Sourcing

• Deforestation

• High Conservation Values • Water Stewardship

• Soil • Wild Populations

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Biodiversity Nestlé Commitment on 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 - including high carbon stock soils/forests

• Complies with the Nestlé Supplier Code • - business integrity, legal, human rights & working practices

• Creates Shared Value for society and local communities • - delivers rural development & small holder benefits, FPIC • - water stewardship plans

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Water Guidelines General Water Management Plan Wetland Management Pollution of Surface and Groundwater

Water Stressed Areas Farming Systems and Crops Alternative Water Sources Irrigation Plan Monitoring WRI Global Water Tool: 2025 Projection

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Factories and Biodiversity

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60 Priority Factories

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Nestlé Waters, Spain • UNESCO biosphere reserve in 1978 • Natural Park in 1987 (El Montseny)

2010 Survey ECNC (European Centre for Nature Conservation), IUCN (International Union for Conservation of Nature) FOEN (Swiss Federal Office for Environment)

Ecosystem Conservation • Policy • Surveys • Endangered species • Land management • Partnerships

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Dairy Colombia

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Consumer Communications Pilot in France Government Sponsored Pilot Communications Platform

NescafĂŠ LCA Communications Tool

Consumer scans barcode via ProxiProduit App

Link to tool

Disclosure to Financial Community

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Policy Work Developing Thinking & Consensus Advocating for Supporting Policies - Cambridge University Natural Capital Leaders Platform Collaborative Approaches - Alliance for Water Stewardship Reporting on Natural Capital - 2012. Full reporting to GRI A+ standard - Presentations to external audiences

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Conclusions • Valuing Nature • On the Balance Sheet or in the Product Price?

• Focus on Outcomes and how to get there • pricing, taxes, subsidies, permits, demand

• Focus on a few Topics and make a Meaningful Difference • Responsible Procurement • Factories within Protected Areas/High Bio-diverse Areas • Water, Soil, Deforestation

• Disclose Progress

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Thank you More information duncan.pollard@nestle.com www.nestle.com/csv/

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