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Environment – Progress Report 2000

Table of contents

Message from the CEO

Nestlé – The World Food Company

The Nestlé Policy on the Environment

Progress summary 2000

Nestlé’s environmental focus areas

Focus 1

Integrated approach

throughout the supply chain

The supply chain

Raw materials

Manufacturing processes

Packaging

Distribution

Consumers and the community

Focus 2

Water as a key priority

Water resources and Nestlé activities

Water and raw materials

Water use in manufacturing

Bottled waters

Water safety

Education and sponsorship

Focus 3

Systematic management

of environmental performance

Environmental targets and plans

Progress towards objectives

Continuous improvement

The future

Research and Development

Modern biotechnology and environment

Alcon

Annex

Environmental performance indicators (EPIs)

List of awards

List of ISO 14001 and EMAS certified factories

Glossary of terms and abbreviations

Case studies

Germany

Pesticides and fertilisers: as little as possible…

as much as necessary

Philippines

Reducing soil erosion on coffee plantations

Philippines

Using spent coffee grounds as a fuel

France

An innovative process to eliminate

an ozone depleting refrigerant

Contributing to packaging source reduction

Perrier Vittel and PET bottles

Argentina

Improving distribution efficiency

with dual-temperature vehicles

USA

Nestlé and Disney:

partners in environmental education

Switzerland

Renovating the international head office building

Thailand

Partnership for reforestation

Global water use reduction

Reducing water through post-harvest

processing techniques for coffee

From Switzerland to China

Pioneering efforts around the globe

France

Innovative source protection

at Vittel and Contrexéville

USA

Sponsoring a programme for water education

USA

NEMS in action

Germany

From NEMS to ISO 14001 and EMAS

Research and Development

Helping to reduce air emissions in coffee factories

South East Asia

A method for pest control in coffee plantations

Environment – Progress Report 2000

Message from the CEO

Nestlé was founded in 1867 by pharmacist
Henri Nestlé on the shores of Lake Geneva in Vevey,
Switzerland. One hundred and thirty-four years later,
our headquarters are still in Vevey, surrounded by
the Swiss Alps in one of the world’s best-preserved
environmental settings.

As we have grown from humble beginnings into the
world’s largest food company, we have attempted
to take the fundamental cultural values of
environmental preservation and cleanliness into
every country where we operate.

I spend a great deal of time travelling to these
countries and have personally visited many
of the 479 Nestlé factories currently in operation.
One of the reasons for doing so is to see for
myself that our facilities reflect the environmental
values basic to our Company.

Moreover, I follow the Company’s environmental
performance, including the results of our environ-
mental performance indicators. Our Environmental
Officer reports directly to General Management
to ensure there is on-going awareness regarding
environmental affairs. Also, the Nestlé Environ-
mental Advisory Group (made up of corporate
experts from many functions) meets regularly to
review current environmental issues and to
anticipate potential concerns. This allows us to
maximise control over our activities and contribute
to sustainable development in the countries where
we operate.

The Nestlé

Environment – Progress Report 2000

describes the results of continuous improvement in
our environmental practices. I am pleased about
the clear progress in a number of key areas,
including a significant decline in the amounts of
water and energy used to bring each kilo of Nestlé
products into your home, and a similar reduction in
factors which potentially affect global warming.
However, we are never completely satisfied with our
current performance, and are committed to further
environmental improvements.

We try to remain sensitive to the environmental
concerns of our consumers and the public
as a whole. As a charter member of the World

Business Council for Sustainable Development,
we attempt to keep our policies at the forefront of
industrial companies. For this reason, we have
pledged our adherence to

The Business Charter for

Sustainable Development

of the International

Chamber of Commerce, and we are committed to
being a leader in environmental performance.

This leadership is only possible through the
collective commitment of the tens of thousands
of individual Nestlé employees who, on a daily
basis, work to make this a better planet on which
to live. This Report is dedicated to them.

Peter Brabeck-Letmathe

Chief Executive Officer

The Nestlé Policy on the Environment

The United Nations World Commission on Environ-
ment and Development, in its 1987 milestone
report

Our Common Future

, stated that sustainable

development means “meeting the needs of the
present without compromising the ability of future
generations to meet their own needs”.

For Nestlé, respect and responsibility for the
environment is part of its broader commitment to
sustainable development. It requires an integrated
approach to policy and decision making in which
long-term economic growth, environmental protec-
tion and social achievements are not incompatible,
but are complementary and mutually dependent.

Since the 1992 Earth Summit in Rio de Janeiro, all
of society – be it governments, industry, NGOs
or others – has worked to translate the sustainable
development concept into reality. As part of this
effort, Nestlé has participated in the work of several
organisations dealing with this subject. For example,
the Company is a founding member of the World
Business Council for Sustainable Development
(WBCSD) in Geneva, Switzerland. Nestlé has
adhered to

The Business Charter for Sustainable

Development

of the International Chamber of

Commerce (ICC) since its publication in 1991.

Nestlé’s commitment to sustainable development
and other fundamental principles of business are
outlined in the

Nestlé Corporate Business Principles

This document defines the standards of behaviour
for all companies in the Nestlé Group. The

Corporate

Business Principles

are designed to complement

applicable legislation and international recommen-
dations. How Nestlé brings these principles to life,
specifically the environmental aspects, is evidenced
through the numerous examples in this Report.

Following the early years of the Company’s
commitment to the environment, Nestlé published
in 1991 its first global

Nestlé Policy on the

Environment

. This Policy defined the Company’s

worldwide strategy on environmental issues
and stated its long-standing commitment
to environmentally-sound business practices.

The Nestlé Policy on the Environment

was updated

in 1999, confirming and strengthening the Company’s
commitment. It reflects a world where preserving
natural resources and minimising waste has become
part of the day-to-day activities in Nestlé’s oper-
ations, as well as an integral element in achieving
global competitiveness.

The Nestlé Policy on the Environment

is widely

communicated – both internally and externally –
to all interested parties. It helps, in a positive
way, to influence others with whom Nestlé has
relationships throughout the supply chain:
from the producers of its raw materials and its
suppliers… through to the Company’s customers
and consumers.

The Nestlé Policy on the Environment

1991 and

the updated version 1999.

1999

1991

Nestlé’s record of environmental activities can be
traced back over several decades, with many
effective measures put in place. In 1990, the
Company decided to deal with environmental
aspects in a more systematic way. Environmental
achievements have been reported in the annual

Management Report

since 1991. A special report,

Nestlé and the Environment

, was published in 1995

and presented results for the previous five years.
This Report covers progress since 1995 and reveals
focus in three key areas:

Focus 1

Integrated approach throughout

the supply chain

Nestlé minimises the impact on the environment
at each step in its activities, from buying raw
materials to manufacturing products and their use
by consumers.

Environmental performance indicators (EPIs)
covering manufacturing operations have been
defined. Their collection and consolidation

across the Company started in 1997. Results
presented below show significant progress.

Packaging source reduction efforts were initiated
in 1991. As a result, cumulative packaging material
savings during the years 1991 to 1999 amounted to
165 000 tonnes, equivalent to CHF 300 million,
without affecting product safety and quality.

Internal and external communication, training and
education efforts have been increased significantly.
In 1996, Nestlé initiated its Internet site to enable
consumers, and the community at large, to
better understand Nestlé and its commitment to
the environment :

www.nestle.com

The site

was significantly expanded in 1999, addressing the
increasing environmental interests of its users.

Focus 2

Water as a key priority

Nestlé supports the sustainable use of water and
takes the necessary measures to ensure the
responsible management of this vital resource.

Environment – Progress Report 2000

Progress summary 2000

The results below cover the period 1997–1999, during which production volume increased by 24%

Unit

1997

1998

1999

Water consumption

per tonne product

11.0

9.37

8.59

Energy consumption

Joules (GJ) per tonne product

4.55

3.90

3.65

Waste water generation

per tonne product

8.86

7.11

6.62

Greenhouse gases

kg CO

per tonne product

241

212

197

Air acidification potential

kg SO

equiv. per tonne product

1.74

1.34

1.21

Ozone depleting substances

g R-11 equiv. per tonne product

36.0 * 2.76

2.41

By-products/waste generation

kg per tonne product

103

84.5

78.5

By-products/waste recovery

% recovery

75.7

74.2

74.9

* Data is for 1986 when measurement began.

From 1997 to 1999, the Company has achieved
a 22% reduction in water consumption per tonne
of product, while, at the same time, meeting its
business growth objectives for bottled waters. In
addition, strong emphasis has been placed on
the protection of natural mineral water sources,
effective management of waste water, participation
in the development of programmes for water
safety and community-based water improvement
and educational activities.

Focus 3

Systematic management

of environmental performance

Nestlé has developed its own system to efficiently
manage the environmental aspects of its activities.

The Nestlé Environmental Management System
(NEMS) was elaborated in 1996 and has been
implemented throughout the Company. Whereas
NEMS implementation is mandatory, certifications
under other systems such as ISO 14001 and
the eco-management and audit scheme (EMAS)

In summary, per tonne of product

Water consumption was reduced by

22%

Energy consumption was reduced by

20%

Waste water generation was reduced by

25%

Emissions of CO

were reduced by

18%

Air acidification potential was reduced by

30%

From 1986 to 1999, ozone depleting
substance emissions were reduced by

93%

By-products/waste generation was reduced by

24%

Environmental investments

From 1997 to 1999, Nestlé has invested an average
of CHF 100 million per year for the protection of
the environment. This included readily-identifiable
environmental investments, and amounted to more
than 3% of total capital expenditure. Regular capital
investment projects that incorporate environmental
components (e.g. construction of a waste water
treatment plant at a new factory) and factory
environmental operating costs are not included.

Air

40%

Water

30%

Energy

By-products/waste

Packaging

Other

10%

Total

100%

of the European Union are optional, depending
on local conditions (see list of certified factories in
the Annex of this Report).

Nestlé has achieved significant environmental
progress since 1995 by leveraging its long-term
environmental experience across worldwide
operations. Reductions in resource consumption
and waste generation, combined with improve-
ments in manufacturing efficiency, capacity utilisation,
measurement systems and increased awareness,
education and training of personnel have all contrib-
uted to this record of success. Results clearly show
that environmental improvements go hand-in-hand
with economic development and social progress.

The Company recognises that despite significant
environmental progress, opportunities to innovate
and improve still exist in many areas of its operation.
For Nestlé, the continuous improvement of envi-
ronmental performance will remain a crucial target,
now and in the future.

Nestlé’s environmental progress is the
result of many years of “real world
experience” and reveals focus in three
key areas:

Integrated approach throughout the
supply chain

Nestlé minimises the impact

on the environment at each step in its
activities, from buying raw materials
to manufacturing products and their use
by consumers.

Water as a key priority

Nestlé supports

the sustainable use of water and takes
the necessary measures to ensure
the responsible management of this
vital resource.

Systematic management of environmental
performance

Nestlé has developed its

own system to efficiently manage
the environmental aspects of its activities.

Environment – Progress Report 2000

This focused approach enables Nestlé to maintain a clear vision with respect to

its environmental objectives. The Company is careful to ensure that environmen-

tal progress is properly co-ordinated so that an improvement made in one area is

complementary to environmental aspects in other areas.

Nestlé’s environmental progress is the
result of many years of “real world
experience” and reveals focus in three
key areas:

Focus 1

Integrated approach throughout the
supply chain

Nestlé minimises the impact

on the environment at each step in its
activities, from buying raw materials
to manufacturing products and their use
by consumers.

Focus 2

Water as a key priority

Nestlé supports

the sustainable use of water and takes
the necessary measures to ensure
the responsible management of this
vital resource.

Focus 3

Systematic management of environmental
performance

Nestlé has developed its

own system to efficiently manage
the environmental aspects of its activities.

Raw materials and ingredients

Nestlé buys raw

materials and ingredients either on the open market
or directly from producers. In all cases, strict quality
criteria are applied, for example limiting potential
environmental contaminants.

Manufacturing processes

In Nestlé’s factories,

many different processing technologies are used
to transform raw materials and ingredients into
finished products. Environmental objectives centre
on minimising consumption of resources and
reducing waste.

Packaging

The main reason for a product

package is to protect the finished goods. Nestlé
promotes integrated waste management including
packaging source reduction, reuse, recycling and
energy recovery.

Environment – Progress Report 2000

Integrated approach throughout the supply chain

The supply chain

At every step along the supply chain, Nestlé addresses environmental aspects

Distribution

Once the finished product leaves the

factory, it has to be transported to sales outlets,
some only a few miles away, but others across
the world. Nestlé’s policy is to optimise shipments
in order to limit effects on the environment and
to reduce its use of energy resources.

Consumers and the community

The all-important

consumer is at the end of the supply chain. Nestlé
places special emphasis on clear, open communi-
cation about its environmental activities. The
Company also contributes to the good of commu-
nities through programmes that foster broad-based
environmental awareness and improvements.

Agricultural raw materials provide the basis for
Nestlé’s finished products and therefore are central
to its operations. They represent a significant
investment.

For Nestlé it is important that the environment
from which these raw materials come is safe and
protected in a sustainable manner.

Supporting sustainable agriculture

The quality

of agricultural raw materials is dependent on farm-
ing practices applied during their production. Nestlé
supports sustainable agricultural practices, includ-
ing environmental protection, as the best means to
assure the high quality that is needed for its finished
products. Furthermore, such practices must be
economically competitive and socially acceptable.

In general, Nestlé is not involved in raw material
production and does not own or operate farms.
The Company purchases agricultural materials in

either raw or semi-processed form, directly
from farmers or via traditional trade channels.
Where possible, preference is given to raw
materials that are produced by sustainable farming
practices, while meeting Nestlé’s high quality
requirements.

Supplier relationships based on sound business
practices and mutual trust are important in
this respect. As far as possible, suppliers are
encouraged to apply sustainable agriculture
practices. Traceability systems across the supply
chain have also been established to help ensure
the efficient management of food safety issues.

A key contribution to sustainable agriculture is the
application of integrated production methods.
Integrated production is a comprehensive approach
to farming that is based on consideration of the
many different aspects of farm management as a
“whole”. These range from animal husbandry
and crop management to post-harvest treatment,

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Raw materials

Ensure supply of quality raw materials, minimise environmental impacts

Nestlé procures a large share of its

agricultural raw materials through

the commodities trade on the open

market. However, there are some

classes of raw materials where this

is not possible because of strict

limits for quality that are imposed

either by Nestlé or by national

food legislation. Vegetable and fruit

purée as well as cereals used in

foods for infants and young children

are a case in point.

In Germany for many years,

legislation had set very strict limits

for pesticide residues in the finished

product (10 ppb), as well as for

heavy metals and nitrates. To meet

these limits, Nestlé has set up a

strategy for contract farming, using

optimal agricultural practices.

Nestlé’s specialists select growing

regions that are ideal for the

intended crops, and identify farmers

who are willing and able to fulfil

the technical requirements. They

advise farmers on the minimum

use of pesticides and fertilisers to

remain within the limits, but which

still give the required quality in the

crop. They also provide advice on

the production of healthy crops and

on the avoidance of environmental

contamination.

Based on the surface used for

the production of the agricultural

raw materials needed, which was

15 500 ha in 1999, the tonnage of

fertilisers used per year was reduced

by 4000 tonnes (50%) and the

quantity of pesticides used per year

was reduced by 30 tonnes (60%).

Case study

Germany

Pesticides and fertilisers: as little
as possible… as much as necessary

storage and transport of raw materials. Integrated
production also takes into account local soil,
climatic and economic conditions.

An important environmental aspect of integrated
production is integrated pest management. It
uses environmentally compatible techniques for
controlling pests at levels below those that cause
economically unacceptable damage or loss.

Nestlé is involved with a variety of partners to
foster sustainable agriculture. For many years, the
Company has supported farmers by providing
technical assistance. Sustainable farming methods
are an important basis for this assistance.

To ensure that instructions have

been followed by the farmers and

that the raw materials meet the

required quality, they are rigorously

controlled before their processing.

For these analytical controls, close

to DM 4.5 million was spent

in 1999.

In 1999, the European Union (EU)

published regulations for pesticide

residues in foods for infants

and young children for all Member

States, based on the German

requirements. Everything is now in

place to extend this environmentally-

friendly contract farming approach

to similar types of Nestlé operations

in the EU.

Milk sourcing

Nestlé buys and collects milk from

over 300 000 farmers in 40 countries, on five conti-
nents. In recent years, important progress has been
made to improve milk sourcing, benefitting both
Nestlé and its milk suppliers.

Nestlé’s efforts to help farmers include the develop-
ment of farm quality assurance schemes for milk
sourcing. The schemes are essentially guidelines
for farmers on the application of sustainable milk
production methods. They cover the entire milk
supply chain, with special emphasis on the safety
and the consistent quality of milk.

The farm quality assurance scheme guidelines
include advice on:

– responsible farm management that is targeted

at long-term, prosperous development of dairy
farms,

– appropriate use of pesticides and related record-

keeping requirements,

– good animal husbandry, including animal health

and welfare, animal nutrition and housing and
the use of veterinary drugs, and

– handling of farm manure, including storage,

application in fields to avoid contamination of
soil and ground water with nitrates, and related
record-keeping.

Through farm quality assurance schemes, Nestlé
works to ensure the high quality that it needs in its
milk supply, while at the same time minimising
the environmental impact from milk production.
A traceability system, which is part of the
guidelines, allows Nestlé to guarantee the origin
and safety of its milk. Farm quality assurance
schemes are already in place in the Netherlands,
the UK, France and Australia. They will be
implemented in the near future in all countries
where Nestlé sources its milk.

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Raw materials

Nestlé is a major buyer of coffee

in the Philippines where its

agricultural experts work with the

Ministry of Agriculture and with

coffee farmers on questions of farm

management.

Although flat land is preferred for

farming, due to a lack of such land

in the Philippines, many coffee

plantations are increasingly being

established on hilly ground. In fact,

over 60% of the country is classified

as hilly or mountainous. Due to

the heavy tropical rains, soil erosion

can be a serious problem.

“Contour planting” has provided

a good solution for planting in hilly

locations. It incorporates a

preliminary assessment of native

eco-systems, along with other

important factors, to ensure the

system is properly adapted to local

conditions. Often, this consists

of planting that follows the contour

lines and stabilises the sloping

borders with suitable vegetation

such as vetiver grass.

Contour planting has been shown

to reduce soil erosion by up to 90%.

It also has a number of other

advantages: it improves soil fertility

and moisture, and improves crop

yields. SALT (Sloping Agricultural

Land Technology), as the programme

Case study

Philippines

Reducing soil erosion on
coffee plantations

in the Philippines is referred to,

applies to coffee, but also

allows simultaneous cultivation

of other crops.

By actively promoting good farming

practices through programmes such

as SALT, Nestlé contributes to

protecting the environment in a

significant way and, as well, helps

to ensure green coffee supplies,

in the right quantities and with

the right quality.

An essential part of milk procurement is the
transport from the milk-producing regions (known as
milk districts) to the factory. With many vehicles
and a veritable maze of roads radiating out from the
factory to the different collection points within
the milk district, the organisation of transport
is essential, but also highly complex. Furthermore,
because milk is highly perishable, the transport
system must reduce to a minimum the time from
milking to processing. Efficient milk collection is
also a question of reducing the number of kilometres
covered to minimise impact on the environment.

To improve milk transport, many Nestlé operations
have introduced computer-based milk collection
systems that define the route taken by each vehicle
in the fleet. The systems keep delivery time, and
the kilometres driven, to a minimum.

As a result of the implementation of this
programme in Mexico, Nestlé has achieved a 10%
reduction in driving distance. Overall, transport

costs have been reduced by 12%, unloading
congestion has been avoided by better planning
of arrival times, and delivery speeds have been
increased, thus ensuring milk quality.

The computerised milk-collection systems
clearly offer a triple advantage in terms of their
environmental, economic and quality impact.

1 Vetiver grass

2 Contour planting

At Nestlé, manufacturing is a very important part
of the supply chain. In nearly 500 factories around
the world, perishable raw materials are transformed
into safe, convenient, high quality food products.
To accomplish this, a variety of processes are
carried out – from receiving and cleaning raw mate-
rials, to extracting, roasting and cooking, drying,
cooling and packing. In addition to raw materials,
all of these activities also require resources such as
energy and water.

The manufacturing process not only yields finished
products, but also results in by-products and
waste. By-products have a value and can be used as
raw materials in other processes. What remains –
the waste – can not be used.

Air emissions are also sometimes generated, for
example from cooking operations or energy
production.

Special care is needed to manage both the process
inputs (raw materials, energy, water) and the
process outputs (finished products, by-products,
waste and emissions) in the most environmentally-
friendly manner possible.

In Nestlé factories, the objective is to maximise
eco-efficiency – that is, to maximise the production
of goods while, at the same time, minimising
consumption of resources and reducing waste and
emissions. This makes good business sense, and
good environmental sense.

Factory environmental surveys

To measure

progress towards its eco-efficiency objective,
Nestlé initiated a systematic, comprehensive
and uniform approach for assessing the envi-
ronmental performance of its factories – factory
environmental surveys. These surveys required
significant effort on the part of Nestlé factories
across the world.

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Manufacturing processes

Minimise resources, maximise output, reduce environmental influence

Input

Manufacturing processes

Raw materials

Water

Energy

Packaging materials

Output

Finished products

Waste water

Air emissions

By-products/waste

The results of the first survey, completed in 1994,
were reported in the 1995

Nestlé and the

Environment

publication. In summary, the results

indicated that:
– Nestlé had no major environmental problems,
– Nestlé complied with relevant regulations, or in a

few exceptional cases, was taking action to do so,

– Nestlé had been proactive in seeking environ-

mental solutions, and

– data available from the factories was a valuable

source of information for prioritising future
environmental actions.

Building on what was learned in the first survey,
environmental surveys were again conducted at all
manufacturing locations in 1997. The results
were checked against 1994 action plans and new
objectives were established.

To achieve improvements in eco-efficiency requires
investment – investment of capital, time and human
resources. From a capital investment standpoint, the
surveys showed that Nestlé invested an average of
CHF 100 million per year for the protection of the
environment. This included only readily-identifiable
environmental investments, and amounted to more
than 3% of total capital expenditure.

In addition, substantial amounts were also spent on
environmental aspects as part of regular capital
investment projects (e.g. the construction of a
waste water treatment plant at a new factory) and
in factory environmental operating costs (e.g.
the operation of waste water treatment plants).
Operating costs and investments in time and
human resources are difficult to measure, primarily
because environmental aspects are integrated
into so many activities. Nonetheless, as illustrated
throughout this Report, these investments play a
big role in achieving operational savings.

Waru, Indonesia

Environmental performance indicators

In the

past, many individual Nestlé factories had used
different methods to track environmental perform-
ance. To consolidate data, to benchmark best
practices and to allow internal and external
reporting, a system was established that defined
standardised environmental performance indicators
(EPIs) across the Company. In 1997, all manufac-
turing sites were required to report their performance
results annually and consolidation of EPIs began on
a Group wide basis.

The consolidated Group EPIs cover manufacturing
operations. To determine environmental
performance, both the process inputs and outputs
are measured. This is based on the concept of
eco-efficiency as defined in 1992 by the WBCSD in
their document

Measuring eco-efficiency – a guide

to reporting company performance.

The methodology

used to identify, track and report the indicators is
also consistent with ISO 14031. The EPIs include
water and energy consumption, waste water
generation, greenhouse gases, air acidification
potential, and ozone depleting substance emissions
as well as by-products/waste generation.

Compiling data from nearly 500 factories is a
challenging and demanding task. The accuracy of
the data and the level of reporting have constantly
improved. As can be seen in the table below, the
overall reporting level was 95%.

1997

1998

1999

Nestlé factories (excluding Alcon)

480

507

494

Factories that reported

464

476

471

The following sections show results from 1997
to 1999 and examples of how they have
been achieved. During the same period production
volume increased by 24%. Supporting data,
methods of collection and detailed definitions for
all EPIs are included in the Annex of this Report.

Water consumption

Water is a key resource

for Nestlé and one of its three focus areas. Water is
used in many ways: as an ingredient, for industrial
processes, for cleaning, as a finished product and
for the preparation of products by consumers. In its
factories, Nestlé has put in place important provi-
sions for water reduction, water reuse and water
recycling. Water consumption has been defined as
the sum of water consumed from all sources,
including purchases from suppliers and surface or
ground water sources.

The objective is to use as little water as necessary
to make products. During the period of 1997–1999,
Nestlé reduced the total water consumption per
tonne of product and, thus, improved the water use
efficiency by 22%. For bottled waters, business
growth objectives and water use reduction efforts
would seem to go against each other. However,
achieving eco-efficiency means maximising goods
production, while minimising resource use. Even
with very good growth in the bottled water business,
overall water consumption was reduced by 3%.

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Manufacturing processes

1997

1998

1999

1997

1998

1999

100

150

200

11.0

9.37

8.59

217

218

210

per tonne product

per year

Water consumption

Waste water generation

When all options for

water use reduction, reuse and recycling have been
exhausted, the waste water that is left must be
treated. Nestlé puts forth efforts to reduce both the
volume and load of the waste water from
manufacturing operations. Significant investments
have been made over the years in this area.

Waste water generation has been defined as the
sum of all waste water discharged from a factory.
This primarily includes industrial waste waters.

During 1997–1999, waste water discharge per
tonne of product was reduced and, thus, its
eco-efficiency (ability to manufacture more products
with less waste water) has improved by 25%.
The overall waste water volume generated has been
reduced by 7%.

Energy and air emissions

Nestlé’s factories

use energy in a number of ways during the trans-
formation of raw materials into finished products
– for moving materials within the factory, for
cleaning, cooking and packaging, and for controlling
emissions and treatment of waste.

Energy is expensive and is associated with multiple
environmental aspects. For example, one of the
primary air emissions associated with energy is
carbon dioxide (CO

) which has been shown to

contribute to global warming. Additionally, much
of the fuel used to produce energy comes from
continuously depleting, non-renewable sources.
Some of these, like coal and heavy oil, can contain
high amounts of sulphur, causing sulphur oxides
(SO

) emissions when they are burned.

The burning of fuels also results in the production
of nitrogen oxides (NO

), mainly from the nitrogen

present in the combustion air. When emitted to the
atmosphere, both SO

and NO

can contribute to

acid deposition and the production of smog.

For these reasons, it is important to manage energy
resources properly and to look for alternative energy
solutions. The Company is committed to adapting
its products and processes so that energy resources
are preserved.

Nestlé’s success in reducing energy consumption
and air emissions has been the result of:
– focused efforts on energy-reduction,
– fuel replacement initiatives,
– co-generation activities, and
– the phase-out of ozone-depleting substances.

100

150

0.0

2.5

5.0

7.5

1997

1998

1999

1997

1998

1999

161

165

174

6.62

7.11

8.86

per tonne product

per year

Waste water generation

For in-depth information about Nestlé’s

approach to water management, see

the section of this Report “Focus 2 –

Water as a key priority”.

Energy consumption

Reducing the amount of

energy needed and, therefore, the amount
of energy consumed during manufacturing, is a
critical element in the management of energy
resources. Through various energy-conservation
programmes and by employing a systematic
approach (the Nestlé Environmental Management
System – NEMS – presented later in this Report),
Nestlé has achieved good results in the area
of energy reduction. This can be illustrated by the
following examples:

– In the Netherlands, at Nestlé’s Roermond

factory, electricity consumption was reduced by
making programming changes in an automated
production process. This resulted in savings
of 550 000 kWh/year.

– In two factories in Portugal, Nestlé installed

equipment to recover excess heat given off from
boilers and air heaters. The action resulted in a
combined annual savings of about CHF 120 000.

– In India, an energy optimisation study was

conducted which identified opportunities for a
12% improvement in energy use. Projects
are currently being implemented to achieve
these savings.

In many factories, Nestlé uses renewable fuels
instead of, or in combination with, more traditional
non-renewable fuels. Renewable fuels are
fuels derived from materials that are readily
and naturally reproducible, rather than non-
renewable fuels like oil and natural gas that take
millions of years to be regenerated by natural
processes.

An interesting example of a “renewable fuel” is
spent coffee grounds. The manufacturing process
for soluble coffees requires extraction of the roasted
and ground coffee beans (brewing). The material
left after extraction is spent coffee grounds – one
of Nestlé’s high-volume by-products. The Company
has found ways to use this by-product as fuel to

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Manufacturing processes

The Cagayan de Oro factory in the

Philippines is one of Nestlé’s largest

soluble coffee operations. It uses

spent coffee grounds as fuel, a good

example of how Nestlé puts environ-

mental initiatives into practice.

This integrated approach to managing

by-products and producing energy,

combined with a change from heavy

fuel oil to diesel oil, has had a num-

ber of positive environmental results

in 1999:

– decreased reliance on non-

renewable fuels,

– saving of more than 4000 tonnes

of oil equivalents,

– reduction in SO

emissions by

nearly 300 tonnes, and

– prevention of about 70 000 tonnes

of waste going to landfill.

Nestlé’s worldwide operations

now include more than 20 factories

that are using spent coffee grounds

as a supplemental fuel. This amounts

to about 800 000 tonnes per year of

spent coffee grounds that do not

have to be landfilled. And it reduces

the need for non-renewable fuels by

the corresponding amount of oil

equivalents.

Case study

Philippines

Using spent coffee grounds
as a fuel

produce energy for manufacturing processes.
Using spent coffee grounds in this way reduces
the burden on fossil fuel supplies, and can have
other environmental benefits, as presented in the
accompanying case study.

Energy consumption has been defined as the sum
of all energy purchased or obtained – less any
energy which, in rare cases, is sold. This includes
electricity, steam, fuels such as oil and natural gas,
and by-products such as spent coffee grounds.

Overall, from 1997 to 1999, through different
approaches, Nestlé has been successful in reducing
global energy consumption per tonne of product
and, thus, improving energy use efficiency by 20%.
Even with the significant increase in production,
the total energy use company-wide has remained
stable.

Air emissions

Where alternatives for using

renewable fuels are not available, switching to more
environmentally-friendly fuels has also helped.
The conversion of heating units from heavy fuel
to natural gas has been a primary contributor to
reducing air emissions in Nestlé’s factories.

Air acidification potential

has been defined as

the sum of SO

and NO

air emissions from

on-site combustion processes. In the absence of
generally agreed factors, measurements are based
upon the acidic strength of each component
(SO

= 0.7 x NO

) presented as SO

equivalents.

From 1997 to 1999, air acidification potential per
tonne of product was reduced and the eco-efficiency
has improved by 30%, with a reduction in total
emissions of 14%.

1997

1998

1999

1997

1998

1999

89.6

91.0

89.8

3.65

3.90

4.55

Joules (GJ)

Joules (PJ)

per tonne product

per year

Energy consumption

0.5

1.0

1.5

1997

1998

1999

1997

1998

1999

29.3

30.8

34.2

1.21

1.34

1.74

kg SO

equivalents

tonnes SO

equivalents

per tonne product

per year

Air acidification potential

Greenhouse gases

have been defined as the sum

of all on-site CO

emissions from combustion

processes used to manufacture Nestlé products.

From 1997 to 1999, emissions of greenhouse gases
as CO

per tonne of product were reduced and,

thus, the eco-efficiency has improved by 18%, while
total emissions remained stable.

Co-generation plants also present an opportunity for
improved efficiency. By producing both electricity
and steam at the same time, they are much more
efficient than conventional power plants. Co-
generation reduces the amount of fuel consumed
and therefore air emissions.

Co-generation plants are, however, expensive to
install. The feasibility of installing such plants
is very much dependent on local energy costs.
Using combined steam and power generation has
resulted in impressive reductions of CO

– the

main “greenhouse” gas – as well as SO

and NO

The 1995 publication

Nestlé and the Environment

presented two successful co-generation projects in
Spain and the UK with combined annual CO

reductions amounting to 80 000 tonnes.
Today, Nestlé has ten factories throughout the world
that take advantage of this technology.

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Manufacturing processes

1997

1998

1999

1997

1998

1999

100

150

200

4.75

4.90

4.71

197

212

241

kg CO

per tonne product

tonnes CO

per year

Greenhouse gases

Co-generation

Gerona, Spain

Ozone depleting substances

Many of Nestlé’s

manufacturing processes are dependent on
refrigeration and air conditioning. Not only do
these processes use energy, but they also require
refrigerants. For many years, chlorofluorocarbons
(CFCs) were considered to be among the safest
types of refrigerants. However, CFCs, halons, and,
to a lesser extent, similar substances like hydro-
chlorofluorocarbons (HCFCs), have since been
shown to contribute to depleting the stratospheric
ozone layer.

This led to the 1987 Montreal Protocol, and
other inter-governmental agreements to phase out
production and use of many of these ozone
depleting substances. The targets which were set
for the first time in Montreal, have since been
further tightened following subsequent meetings
(1992 Copenhagen, 1995 Vienna, 1997 Montreal)
and even stricter requirements have since been
adopted in the European Union.

Nestlé anticipated this early on, and established a
detailed phase-out programme to replace ozone
depleting substances with other refrigerants, such
as ammonia.

Ozone depleting substances have been defined as
the sum of substances emitted which have
been shown to contribute to the depletion of the
ozone layer. The common unit of measurement is
R-11 equivalents.

From 1986, when measurement began, to 1999,
ozone depleting substance emissions per
tonne of product were reduced, and the eco-
efficiency has improved by 93%. Total emissions
were reduced by 80%.

100

200

300

1998

1986

1999

1986

1998

1999

290

2.41

2.76

59.1

64.6

36.0

g R-11 equivalents

tonnes R-11 equivalents

per tonne product

per year

Data from 1986 does not include methyl bromide.

Ozone depleting substances

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Manufacturing processes

The Nestlé operations in Beauvais,

France, produce a variety of frozen

foods and ice cream. The production

plant, and the warehouse used to

store products prior to shipment,

must be maintained at temperatures

between -20º and -40º C. A substan-

tial amount of refrigeration is

necessary to maintain such tempera-

tures in the 80 000 m

warehouse.

This refrigeration was achieved using

halon, an ozone depleting substance.

As a result of Nestlé’s global phase-

out programme, and also of interna-

tional agreements to stop production

and use of these substances, the

Company began looking for suitable

alternatives.

The early solution at many Nestlé

factories was to revert to the use of

ammonia as a refrigerant. Ammonia

systems are technologically proven

and operate efficiently in food

manufacturing. However, these

systems require certain safety precau-

tions, particularly in large installations.

The solution found by Nestlé’s

engineers in Beauvais was to use two

substances. Because of its excellent

properties as a refrigerant, a very

small amount of ammonia was

used as the primary refrigerant in an

isolated system.

This system then cools a secondary

material, CO

, which is used in the

extensive network of coolers through-

out the warehouse. This type of

two-phase refrigeration allows the

use of a minimal amount of ammonia

and isolates it from the process

areas, thus greatly reducing the risk

of an accident. Using CO

in the

production areas is better, as it

is non-toxic, non-flammable and has

little impact, should a leak occur from

the closed system.

Case study

France

An innovative process to eliminate
an ozone depleting refrigerant

New refrigeration equipment

Beauvais, France

By-products/waste generation

The production of

unwanted or unusable materials during manufac-
turing is inevitable. For example, with most
agricultural raw materials, one part of the food
processing operation involves separating the usable
part that goes into the final food product from
the unusable part, the by-products or waste. Waste
can also be produced during the cleaning of equip-
ment, as scraps from packaging operations, etc.

The first priority is to reduce the amount of
by-products generated, and particularly waste. This
is carried out through waste reduction programmes,
via production efficiency studies, and through
NEMS. Raw materials are valuable, so the fewer
that are lost, the more efficient the operation is.

Despite efforts to reduce by-products and waste
wherever possible, there is still a certain amount
that must be handled. Traditionally, many of
these materials went to approved landfill sites.
However, since the 1970s, Nestlé has investigated
other options. Now, some materials that previously
would have been regarded as waste have become
a valuable raw material, when recycled, composted
or used for fuel in energy recovery processes.

In order to achieve high rates of recycling, strong
infrastructures for material separation and collection
as well as recycling facilities must be available.
Communication programmes regarding recycling
are equally important to success. Many Nestlé
locations have worked extensively to educate
employees and to increase awareness of the
benefits of recycling, both internally and within
their local communities.

A number of Nestlé sites have been successful in
using third party composting operations. In addi-
tion, in 1990, Nestlé built its own composting plant
in New Milford, Connecticut, USA, to recover by-
products and waste from five of its facilities in the
region. The materials from these locations included
spent coffee grounds, tea leaves and residues from
the production of confectionery and seasonings.

Known as New Milford Farms, this composting
operation also provides an environmentally-friendly
alternative to local residents to recycle materials
like grass clippings, leaves and branches.

Today over 50 000 tonnes of material per year are
processed, and thus diverted from landfill. The
finished compost is sold to many local customers
including homeowners, garden centres, etc. In this
way, the work at New Milford Farms transforms
otherwise unusable waste into a product that
helps renourish the soil and contributes positively
to the environment.

By-products/waste generation has been defined as
the sum of all materials used or produced during
manufacturing which are not included in the final
product, whether recovered or disposed of.
Overall, from 1997 to 1999, by-products/waste
generation per tonne of product was reduced and,
thus, its eco-efficiency has improved by 24%.
The total amount of by-products/waste has been
reduced by 5%. The overall rate of recovery
remained stable at about 75%.

0.5

1.0

1.5

2.0

100

1997

1998

1999

1997

1998

1999

103

1.91

1.97

2.02

78.5

84.5

kg per tonne product

tonnes per year

Disposed

Recovered

By-products/waste generation

Fulfilling a basic need

Nestlé is firmly committed

to continue progress in finding packaging solutions
that will contribute to a better environment.
Packaging is, of course, essential both for Nestlé
and for the consumer. It ensures the safety and
quality of products – from manufacture through to
storage, distribution and consumption. In addition,
packaging contributes to product appeal, provides
convenience and communicates information, e.g.,
on nutrition and serving instructions. In many
cases, packaging includes tamper-evidence features.
Packaging also helps prevent or reduce product waste.

Progress in packaging source reduction

There

has been an increased focus on packaging and its
environmental impact over the past ten years.
As stated in

The Nestlé Policy on the Environment,

Nestlé supports an integrated approach that favours
source reduction, reuse, recycling and energy
recovery to minimise the impact of packaging on
the environment.

Since 1991, environmental considerations have
become an important criterion in Nestlé’s renovation
and innovation of packages and packaging materials.
Reducing the amount of packaging material needed
for a product, while safeguarding safety and
quality, is a continuing key objective and priority.

To meet this objective, Nestlé initiated, in 1991, a
process for the continuous review and assessment
of its packaging source reduction opportunities.
Comprehensive surveys were carried out on an
annual basis to track the many individual reduction
projects. Their progress was due, in large part, to
the work of multi-disciplinary teams, the establish-
ment of clear objectives and the implementation
of a systematic approach.

The first consolidated packaging reduction results
were published in the 1993

Management Report

Cumulative results, which have since been
reported on an annual basis, show that packaging
material savings from 1991 to 1999 amounted

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Packaging

Use less material, encourage recovery

Nescafé, Spain

Weight reduction of glass jars

Savings: 1250 tonnes/year

Nestlé Breakfast Cereal,

Chile

Size and weight reduction

of cardboard box

Savings: 215 tonnes/year

Nescafé Liquid, Japan

Weight reduction of PET bottle

Savings: 83 tonnes/year

Nestlé Evaporated Filled Milk,

Philippines

Tin plate optimisation and

thickness reduction of tin can

Savings: 765 tonnes/year

corresponding shifts in food habits. Surveys have
shown an increased preference for single-serve
packages and, in certain cases, a decline in the
desire for soft packs. Addressing these preferences
is part of meeting consumer expectations in a
highly competitive market. This may result in an
increase in the use of packaging materials for
certain new products.

Promoting packaging waste recovery

It is not

enough to achieve packaging source reduction and
recyclability. It is also necessary that systems
are put in place for the collection, separation and
recovery of used packaging.

In some countries, in particular in the European
Union, ambitious recycling objectives have been
set as part of the packaging waste regulations.
To fulfil these regulations, several European coun-
tries have established national packaging waste
recovery schemes. These include DSD in Germany,
Eco-Emballages in France, and others in Belgium,
Italy, Luxembourg, Portugal, Spain and the UK.
Nestlé has participated actively in establishing these
schemes and in their management. Nestlé is keenly
aware of the need to contribute to the recovery
of its packaging waste and will continue to invest
considerable time, energy and money.

Worldwide cumulative

packaging material savings 1991–1999

1991–1992 1993 1994 1995 1996 1997 1998 1999

120

180

240

300

In 10

tonnes

In millions of CHF

to 165 000 tonnes and CHF 300 million (these
results do not include savings from Perrier Vittel
and Alcon). In addition to source reduction efforts,
Nestlé uses recyclable packaging materials
wherever possible.

The packaging reduction results that have been
achieved have been significant. Consequently, it is
likely that opportunities for continued reduction will
diminish in the coming decade. When considering
packaging material reduction, it remains essential
that package functionality is preserved. Indeed,
product quality and safety would be put at risk if
the reduction efforts were to go too far, and conse-
quent damage to food products could outweigh any
environmental benefit. For instance, if the thickness
of a plastic bottle is reduced too much, rigidity is
compromised and shipping pallets can easily collapse.

Packaging reduction efforts also have to take
into consideration changes in consumer expec-
tations. Lifestyle changes have resulted in

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Packaging

Progress data published by some packaging waste
recovery organisations show high overall packaging
recovery rates. For example, rates of 86% in
Germany, 87% in Belgium and 72% in France have
been reported. However, the total cost of these
systems is high and needs to be optimised.
Combined initiatives for source reduction, energy
recovery and recycling will be helpful in
this effort.

When considering the overall impact of these
initiatives, it should be kept in mind that packaging
waste represents just 2% of total waste.

Recent studies have suggested that there are no
simple universal solutions to the problem of
packaging waste. Environmentally-friendly disposal
methods depend on local factors such as the type
of waste stream, the availability of recovery facili-
ties, the feasibility of using different recovery
measures, and the willingness of local communities
to support proposed schemes. Geography and

demographics are both important factors. Therefore,
it is locally-based approaches that will lead to the
most environmentally effective and economically
efficient solutions.

Nestlé supports industrial and government efforts
to promote integrated waste management (IWM).
The objective of IWM is to prevent waste by
optimising resource conservation and limiting the
amount of waste material that goes to landfills.
It provides a practical and sustainable system that
integrates waste streams, collection and treatment
methods, environmental benefits and economic
optimisation. Reuse, recycling, composting, energy
recovery and landfilling are all part of IWM.

In addition, Nestlé encourages its packaging suppliers
to adopt sound environmental practices. For example,
Nestlé Perrier Vittel and their PET suppliers are
involved in joint research for the optimal recycling
of PET bottles. An interesting and innovative
application of this kind is found in the textile
sector where recycled PET from used bottles is
reprocessed and transformed into textile fibre.

Bales of compacted PET bottles:

a raw material for textile fibre production

In 1968, after many years’ research,

Vittel introduced the first PVC

(polyvinyl chloride) plastic bottle in

France. This innovation, which

provided consumers with lighter

packaging material, contributed

substantially to the development of

still natural mineral waters at Vittel.

Twenty-five years later, the introduc-

tion of another plastic material,

PET (polyethylene terephtalate), with

its superior mechanical resistance,

further revolutionised the bottled

waters industry. In 1992, Vittel and

Valvert began using PET bottles in

France and Belgium, with exports

to the USA and Japan. It is important

to keep in mind that natural mineral

waters in Europe, by definition, must

be bottled at source.

By the end of 1997, the entire still

natural mineral waters production

of Perrier Vittel, which in the

meantime had joined the Nestlé

Group, was being bottled in PET

bottles. The change from PVC to

PET meant a significant reduction in

bottle weight, along with better

transparency and resistance. For

example, a 1.5 litre bottle made from

PVC weighed 45 g; the same bottle

made with PET weighed 37 g.

The quest for continued improve-

ments did not stop there. Once

the transition from PVC to PET had

been completed, Perrier Vittel set

out to optimise bottle manufacturing

and design technologies and the

PET characteristics. Sixteen new PET

bottle types were introduced in

1997, 32 in 1998 and 53 in 1999.

The innovative spirit in which the

research was carried out resulted in

even further reductions in bottle

weight. Today, a 1.5 litre PET

bottle weighs between 28 and 33 g

depending on the complexity

of its shape. Compared with 1996,

this represents a weight reduction

of 17%.

Overall, current 1.5 litre PET bottles

now weigh 15 g less than the

original 45 g PVC bottle of the

same size. Expressed another way,

90 grams of PVC previously pro-

duced two bottles. Now the same

quantity of PET yields three bottles

of equivalent capacity, which repre-

sents an overall reduction of more

than 33%.

Additionally, the change from PVC to

PET has resulted in the elimination

of substances harmful to the environ-

ment during incineration, particularly

organochlorine compound emissions

from PVC.

While ensuring a consistent high

level of protection for bottled waters

and guaranteeing their original

purity, the change from PVC to PET,

and the successive improvements,

has allowed Perrier-Vittel to:

– offer consumers more attractively

packaged products,

– substantially improve the

manufacturing process for plastic

bottles, and

– reduce the environmental impact

of packaging materials in accor-

dance with the principles of

The

Nestlé Policy on the Environment

Case study

Contributing to global packaging source reduction

Perrier Vittel and PET bottles

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Distribution

Efficiently meeting customer needs, reducing environmental impact

Effectively moving products from factories and
distribution centres to customers and consumers
is an essential part of a successful business. The
continuing trend is for products to be transported
over longer distances within the supply chain.
This has been facilitated by more efficient and
more reliable systems for distribution.

Improving distribution results in cost reductions
and also environmental benefits – less pollution,
less congestion and less waste. Throughout its
distribution activities, Nestlé takes steps to ensure
that opportunities are continuously reviewed and
that practical solutions are implemented.

As part of this process, in 1995, Nestlé completed
environmental surveys of its distribution sites
and operations. The surveys revealed a general
improvement in environmental performance
stemming from reductions in the consumption of
energy, water and packaging materials.

As a follow-up to the survey results, guidelines for
reducing the environmental impact of logistics
operations were issued in 1997, and updated
in 2000. The purpose of the guidelines was to
highlight environmental improvement opportunities
and best practices in logistics activities. These
opportunities related to building and site opera-
tions, secondary or transport packaging, logistics
networks, vehicle utilisation, and more. For example,
practical information was provided on reducing
energy consumption in warehouses through use
and maintenance of appropriate insulation and
through better operating practices.

Nestlé also recognises the importance of ensuring
that transport resources (vehicles, containers, etc.)
are used in the most efficient way. Methods to
accomplish this include high load utilisation levels,
optimisation of distribution networks and use of
distribution contractors.

Ensuring high load utilisation levels

To help

reduce the amount of unused space on a pallet,
Nestlé developed a simple software tool, “OPal”, to
assess and recommend pallet layouts. OPal assists
in the challenging task of finding optimal layout,
especially where multiple products are involved.

During 1999, Nestlé tested OPal in Germany,
France, UK, Spain and Italy. Over 250 high-volume
product lines were examined for potential pallet-
utilisation improvements. Specific opportunities
were identified in confectionery, infant nutrition,
beverage and culinary products.

As part of the test, current pallet layout and
utilisation were compared with layout alternatives
proposed by OPal. The best layouts and pallet heights
were selected and implemented. As a result, the
number of pallets used was reduced by over 6000.
This translates into a reduction of nearly 200 vehicle
journeys per year, plus improved utilisation of
warehouses and other logistics facilities.

This approach is particularly appropriate in Europe,
where it is estimated that, due to poor load utili-
sation, up to 15% more vehicles than necessary are
used for distribution of grocery products. By making
the most of the available load capacity, Nestlé
contributes towards minimising the environmental
impact from the distribution of its products.

Using “slip sheets”, rather than traditional pallets,
also improves load utilisation. Slip sheets are
thin pieces of paper-board on which products are
stacked. They require special handling systems,
but save a considerable amount of wasted space
compared with normal pallets.

Optimising networks

Nestlé also works to opti-

mise its distribution networks through the reduction
of vehicle journeys and the use of appropriate
modes of transport. For example, co-operation with
other producers allows the free vehicle capacity
of one company to be matched with the available
loads of another. A further opportunity is the use of
“shared-user” distribution facilities, an option
that allows consolidation of customer deliveries.

Use of a combined system of road and rail transport
provides an additional method to optimise
distribution networks. This approach involves load-
ing trailers or containers onto specially adapted

rail cars. After the longest part of the journey has
been accomplished by rail, local delivery can be
carried out by road transport.

Working with contractors

Increasingly, Nestlé

works with contractors in order to make better use
of transport and other distribution resources. Such
operators should, in general, be able to avoid empty
transport journeys by contracting for return loads
and by consolidating under-utilised distribution
facilities.

Nestlé transportation guidelines have been devel-
oped to ensure that contractors meet the standards
expected by Nestlé. They outline the expectations
for equipment, facilities and personnel. The guide-
lines are used to build an open and proactive
dialogue with contractors so that they understand
Nestlé’s environmental approach and the important
role they have to play in reducing the environmental
impact of distribution activities.

During 1998, Nestlé Argentina

implemented an effective way to

improve vehicle utilisation in its fleet

of temperature-controlled vehicles,

reducing the number of journeys by

7% and cutting fuel consumption

by over 30 000 litres per year.

The innovative approach is based on

the use of separators inside normal

temperature-controlled vehicles.

The separators create two temperature

zones and enable Nestlé Argentina

to consolidate deliveries of

compatible temperature-controlled

and conditioned products (e.g.,

ice cream and confectionery) into a

single vehicle. This approach has

resulted in significant improvements

in vehicle space utilisation, fewer

journeys and reduced transportation

distances.

In addition to reducing the impact

on the environment, the use of

dual-temperature vehicles has

benefited customers. Orders for

both confectionery and ice cream

can now be sent together and

not as separate deliveries.

Nestlé Argentina has extended

the concept to chilled product distri-

bution between factories and

distribution centres. With the intro-

duction of more vehicle separators,

additional savings of close to

16 000 litres of fuel are expected

per year.

Case study

Argentina

Improving distribution efficiency
with dual-temperature vehicles

Consumers are of the utmost importance to Nestlé.
Without consumers there would be no business.
Nestlé’s focus on the consumer extends from those
who buy and consume its products, to “consumers”
in the broadest sense – the whole community.

As such, consideration for consumers’ interests
has ranged from providing on-pack recycling
messages to conveying clear, open and transparent
information to all interested parties about Nestlé’s
environmental efforts and achievements.

No “green marketing”

Nestlé has a simple and

straight-forward philosophy on so-called “environ-
mental advertising”. It is categorically opposed
to short-sighted and opportunistic “green claims”.
Attempting to compare the “greenness” of different
food products is irrelevant, particularly since the
practical benefits of these types of ratings are
questionable, at best.

The Company follows the International Chamber
of Commerce

Code on Environmental Advertising

The Code is based on the principles of self-
regulation, with the key premise that environmental
advertisements should neither take advantage
of consumers’ concerns about the environment,
nor exploit any possible lack of environmental
knowledge.

Sharing information

In 1996, Nestlé initiated

its Internet site to enable consumers, and the
community at large, to understand Nestlé better,
including its commitment to the environment:

www.nestle.com

The site was significantly expanded in 1999,
addressing the increasing environmental interests
of its users. An Intranet site is also under
development that will enable the rapid exchange
of environmental information internally.

Community programmes

The Company has also

reached out to communities around the world
through participation in numerous education and
communication programmes.

Nestlé’s Perrier Vittel Company is involved in a
broad spectrum of innovative, water-related
educational activities for children and adults. One
of these activities is the

Mineralix School Book

which was published in collaboration with French
school authorities. The Mineralix Book uses the
multiple aspects of water resource management to
teach concepts in mathematics, physics, chemistry,
geography and physiology to school children, aged
11 and 12. The result is a unique and interesting
approach to the “basics” of education that instils in
children an early respect for protecting water as a
vital world resource.

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Consumers and the community

Helpful environmental information, communication and education

Nestlé’s Internet site

www.nestle.com

In the Philippines, Nestlé supports the government’s
environmental campaigns by sponsoring
programmes designed to create awareness among
the public of the importance of environmental
protection and preservation. Central to Nestlé
Philippines’ approach is the belief that environ-
mental awareness begins at home. Nestlé has
prepared brochures and audio-visual presentations
on proper waste management in the home and
has produced print, radio and TV materials on air
and water pollution. Public service billboards
with environmental messages have also been used.

Regular training has been conducted for employees,
focused on the importance of environmental
awareness and action, both at work and at home.
Through these programmes, employees understand
the importance that Nestlé and the government
place on the environment, and the role that each
person has to play in protecting and preserving its
many facets.

Investors are increasingly interested in environmental
issues. Keeping them informed in an open and
transparent manner is important. Since 1990, an
environmental section has been included in Nestlé’s

Management Report

. Each year, information and

data in this section has been expanded to reflect the
Company’s continuing environmental progress.
In 1995, the first detailed publication,

Nestlé and the

Environment

, was issued. The current

Environment –

Progress Report 2000

is yet a further example of

Nestlé’s communication efforts.

Nestlé USA sponsors the Land

Pavilion at Epcot® at Walt Disney

World Resort in Florida.

Through a variety of activities,

“The Land” illustrates how advances

in a number of agricultural

disciplines contribute to food

production in ways that are least

damaging to the environment.

A special Nestlé team, including

the environmental group, worked

with Disney on a multi-year

renovation of the facility. They

developed and agreed how best

to express the core messages,

including a new “Circle of Life”

environmental film and an updated

“Living with the Land” boat ride.

With an eye to detail at the Garden

Grill Restaurant in “The Land”,

young diners can even learn while

they eat, via a series of environ-

mentally-themed place mats.

Walt Disney World® Land Pavilion

Case study

USA

Nestlé and Disney:
partners in environmental education

In November 1996, Nestlé

announced the renovation of its

international headquarters building

in Vevey, Switzerland. This modernist

building was designed at the end

of the 50s by the renowned Swiss

architect Jean Tschumi. It was

acclaimed by critics the world over

from the moment of its inaugu-

ration in 1960. Despite meticulous

maintenance, the building had

aged and had become technically

obsolete.

Nestlé’s challenge was to find

long-term solutions that would

ensure excellent working conditions

and a versatile, efficient and highly

technical use of the building, as

well as environmental protection

measures. All these aspects were to

be achieved without altering the

architecture of a building that is one

of the official historical monuments

in the Canton of Vaud.

The renovation project was a stimulus

for the local economy. Companies

in the region proved their com-

petence and dynamism, and contri-

buted competitive solutions in

response to the Groups’ needs and

expectations.

The architects and technicians

involved in the renovation applied

considerable talent and imagination in

examining all the options and then

ensuring the best implementation.

Regarding electricity consumption in

the building, innovative solutions

were found that are expected to lead

to savings of 750 000 kWh per year,

i.e. about 7.5% of total electricity

consumption, and include:

– selection of efficient long-life

lights that adjust the amount of

illumination depending on the

natural light available and which

normally allow a 60-70% electri-

city reduction versus traditional

lighting systems, and

– implementation of good energy

management practices, such as

shutting off or putting certain

machines on stand-by status out-

side working hours (e.g. printers,

photocopy machines, etc.).

Further enhancements were made

that are expected to result in greatly

improved efficiency of heating and air

conditioning systems. These include

a new ventilation system, which uses

air/water heat exchangers to recuper-

ate heat from the air which must be

expelled for fresh. An energy reduc-

tion of about 40% is expected versus

the previous air/air exchange process.

The realisation of these efforts will

be verified in the coming months.

Even before the renovation began,

steps were being taken to reduce

energy consumption. In 1995 a

new boiler system was installed

which allowed heat recovery from

the combustion gas of the main

boilers, improving their efficiency by

about 8%. Additionally, the Nestlé

headquarters has always been

cooled by extracting and returning

water from the bordering Lake

Geneva. This has kept energy use

for summer air conditioning about

six times lower than a traditional

refrigeration system.

Moreover, the companies at work

on the building site managed to sort

waste products and recycle most

material in appropriate centres.

The feasibility of recycling the new

building materials chosen for

the renovation was also taken into

account.

Inaugurated in May 2000, the newly

renovated headquarters enable

employees to enjoy a vastly

improved work setting that offers

both beauty and comfort in its

architectural design, whilst

contributing to the preservation of

the environment.

Case study

Switzerland

Renovating the international
head office building

Environment – Progress Report 2000

Integrated approach throughout the supply chain

Consumers and the community

Water, an indispensable world resource, is also
essential for Nestlé. It is used in manufacturing the
Company’s food products, for their preparation
by consumers, and for bottled waters. To help
ensure a long-term, high quality, adequate water
supply, Nestlé supports the sustainable use
of water and encourages environmentally-sound
farming methods.

Nestlé’s long-term commitment to the responsible
management of water resources was confirmed in

The Nestlé Water Policy

, published in early 2000.

Environment – Progress Report 2000

Water as a key priority

Water resources and Nestlé activities

While Nestlé fully supports the sustainable use of
water, it is important to realise that the Company’s
use of fresh water resources is relatively small.
The accompanying illustration shows the estimated
amount of worldwide fresh water use.

More than 70% of all available water is used in
agriculture – much of it wastefully, since nearly
half of it is lost. Nestlé’s worldwide operations
utilise just 0.006% per year of the total estimated
freshwater withdrawal. Perrier Vittel, Nestlé’s bottled
water division, uses only 10% of this amount,
i.e. 0.0006%.

Water for irrigation is vital in most

countries. Preserving watersheds for

agricultural and domestic water is,

therefore, extremely important.

Nestlé’s efforts in Thailand are an

example of industry working

in partnership with local government

to restore this crucial resource.

The Nam Nao National Park in the

Petchabun province is part of

the shrinking forestland of Thailand.

Nam Nao literally translates as

“cool water”. It is made up of

several different types of forests,

gives refuge to many species

of endangered wildlife, and has

a rich variety of flora and fauna.

An important watershed, its

mountain streams feed major

water sources for the people in the

central and north-east regions

of Thailand.

Over the years, Nam Nao has

experienced encroachment by

settlers resulting in the destruction

of vegetation, including forestland.

When the villagers were relocated,

parts of the parkland were left

barren. Nestlé Thailand was highly

concerned about the destruction of

the forest and in 1993, on the

occasion of its 100th anniversary in

Thailand, took steps towards its

restoration.

Case study

Thailand

Partnership
for reforestation

After harvesting, green coffee beans

are obtained from Arabica coffee

cherries by applying either a

dry or a wet post-harvest treatment.

During dry processing, the cherries

are dried, usually in the sun, and

are mechanically de-hulled. Wet

processing involves mechanically

pulping the cherries, leading

to beans still covered by a thin, but

rigid hull, the parchment. This so

called “parchment coffee” needs to

be dried and de-hulled to obtain

green beans. The traditional way of

pulping coffee cherries via wet

processing requires large amounts

Case study

Global water use reduction

Reducing water through post-harvest
processing techniques for coffee

of water – about 100 to 150 litres

per kg of green coffee.

In Brazil, Colombia and Costa Rica,

the main manufacturers of post-

harvest coffee treatment equipment

have developed machines and

methods that reduce the water

consumption to five to ten litres of

water per kg of parchment coffee

– and at the same time reduce

the waste water production (pulp is

discarded and composted).

Wherever possible, Nestlé

encourages growers and post-

harvest treatment plants to use such

new methods and machines. The

former Nestlé Research and Devel-

opment Centre in Quito, Ecuador

supported these efforts by testing

the equipment and methods.

However, implementation of this

equipment has been gradual, since

it corresponds to significant

investments for coffee growers and

post-harvest treatment plants.

Nestlé does not produce raw materials, nor does it
own or operate farms. Agricultural raw materials
are purchased from either the trade or from farmers
or from the primary food processing industry. As a
result, the Company’s influence on agricultural
uses of water is somewhat indirect. Nonetheless,
Nestlé continually takes steps, where it can, to
improve the use of water in agriculture. The key
agricultural raw materials used by Nestlé are milk,
coffee, cocoa and sugar. Except for sugar, these
raw materials require little irrigation compared with
rice, vegetables, corn or cotton. Sugar is sourced
through the trade, so the Company has little or no
influence on its production.

While irrigation represents a key quantitative factor
with respect to water management in agriculture,
other aspects, e.g., the use of pesticides, represent
important qualitative factors. Nestlé supports and
encourages sustainable, environmentally-sound
agricultural practices including best possible methods
for water use and conservation.

Environment – Progress Report 2000

Water as a key priority

Water and raw materials

The effective use of water for agricultural purposes
can be improved through a variety of methods
– development of new plant varieties that require
less water (an area where contributions from
biotechnology can be of importance), planting of
crops that consume less water, application of good
agricultural practices, timing of water utilisation,
use of appropriate equipment, and implementation
of effective methods of irrigation.

Nestlé’s manufacturing processes use water in a
variety of ways such as for washing, boiling, extrac-
tion and for reconstitution of dried raw materials.

Nestlé has introduced many innovative ways to
improve its management of water resources. The
Nestlé Environmental Management System
(NEMS), see page 51, along with resource conser-
vation programmes, has helped to generate
awareness, provide methods of measurement, set
targets, and monitor progress.

With respect to water, the key success drivers have
been the focus on water use reduction, reuse
and recycling, as well as provisions for waste water
reduction and treatment. The EPI results shown
previously provide strong evidence of Nestlé’s
progress in these areas.

Water use reduction

During the period 1997

to 1999, Nestlé reduced water consumption per
tonne of product by 22%.

Examples of water and waste water reductions
include the following:

– The Gorinchem factory in the Netherlands, which

produces milk powder, was able to reduce fresh
water use by 50% over a five-year period. For
certain applications (e.g., pre-cleaning, cooling),
fresh water was replaced by the water that is
evaporated during the production of milk powder.

– Through a focus on dry-cleaning methods prior

to wet washing of equipment, the Elst factory in
the Netherlands was able to reduce the amount
of BOD (biochemical oxygen demand – a measure
of load) in its waste water by 67% over six years.

– At the Tongala factory in Australia, Nestlé took

steps to reduce the nutrient loading of waste
water as a result of local environmental
conditions. This led to a significant reduction
in both phosphorus and BOD.

– At the Nanjangud factory in India, all the treated

waste water from the factory is used to irrigate
plantations on the factory premises. Once
barren and rocky terrain is now a picturesque
green belt where over 400 varieties of trees and
plants thrive.

Water use in manufacturing

Nanjangud, India

Waste water treatment

When water cannot be

re-used, either in the manufacturing process or for
external factory purposes, it is treated and returned
to the environment. Nestlé made a very early
start in providing waste water treatment and the
Company is genuinely proud of its achievements
around the world.

Providing waste water treatment is an ongoing
process and Nestlé has continued to incorporate
new technology, upgrade existing waste water treat-
ment plants and build new ones. Of the CHF 100
million spent per year on its environmental invest-
ments, an average of 30 million is devoted to water
and waste water improvement projects. From 1993
to 1999, at least 38 new waste water treatment
plants were built and 120 upgrades to waste water
treatment systems were completed.

In many cases, Nestlé invested not only in its
own infrastructure, but also in that of the local
community. The Company works with local

governments to assess the need for municipal
waste water treatment plants and often helps
finance the cost of construction.

This was the case in Hungary where, in 1992,
Nestlé bought a factory that was discharging waste
water into an open pond. To solve the problem,
Nestlé was instrumental in helping local authorities
reach a decision to build a waste water treatment
plant for the city. Due to the lack of available
governmental funds, Nestlé advanced money to the
city for construction. The new plant began operation
in 1997, benefitting the entire community.

Progress in methods of waste water treatment
will remain a significant part of the Company’s
activities.

Environment – Progress Report 2000

Water as a key priority

Water use in manufacturing

In 1932, Switzerland’s first biological

waste water treatment plant was built

at the Maggi factory in Kempttal,

near Zurich. Today, Nestlé continues

to be a pioneer in waste water man-

agement. The story of the Company’s

first factory in China is an example

of its on-going and innovative efforts.

In 1987, after much negotiation

with the Chinese government,

Nestlé began construction of the

Shuangcheng factory for the

production of milk products, prima-

rily powdered milk, infant formula

and weaning foods.

Meeting the many challenges

encountered in developing the

Shuangcheng factory and its

infrastructure required careful navi-

gation through political, cultural and

technical issues. Nestlé’s journey, and

that of the Shuangcheng community,

are described in

Nestlé: Starting

up Industrial Production in China

Among the most significant chal-

lenges, was the weather. The factory

is located in one of the harshest

regions of north-east China. During

the deep winter, which lasts from

the end of November to early March,

Case study

From Switzerland to China

Pioneering efforts around the globe

temperatures can reach as low as

-40° C. In the summer, the heat is

extreme, with temperatures

consistently above 30º C. Weather

was therefore a key factor that

had to be addressed in ensuring the

factory’s milk supply and in treating

its waste water.

To ensure sufficient milk supplies,

Nestlé worked in co-operation

with the provincial government to

stimulate milk production in

the area. Initiatives included

programmes for improved breeding,

better milk prices for farmers, better

road systems between the farms and

the milk factory, and improvements

in livestock feed to increase milk

production. These improvements

not only benefited Nestlé, but also

created wealth for the surrounding

communities.

Another significant challenge was

the construction of a waste water

treatment facility. To build a

waste water treatment plant that

would function under the extreme

conditions found at Shuangcheng,

Nestlé’s engineers decided to

locate the waste water clarifier

entirely indoors. By heating the

building, sufficient temperature con-

sistency could be maintained to

ensure effective year round waste

water treatment.

The Shuangcheng factory opened

its doors in 1990 and has success-

fully operated since that time.

Nestlé now operates factories at

18 different locations in China,

all with state-of-the-art waste water

treatment facilities. The Chinese

authorities have recognised Nestlé

factories as “Advanced Enterprises

in Environmental Protection”.

Shortly after the start up of the

Shuangcheng factory, the Swiss waste

water treatment plant in Kempttal

underwent a five-year renovation

project that was completed in 1997.

Kempttal, along with the factories

in China and throughout many

parts of the world, remains an icon

of Nestlé’s pioneering efforts.

1 Renovated waste water treatment

plant Kempttal, Switzerland

2 Indoor waste water clarifier

Shuangcheng, China

3 Winter scenery –40° C

Shuangcheng, China

Through Perrier Vittel, Nestlé provides a wide range
of high quality bottled waters that are pure, safe
and contribute to good health. These include natural
mineral waters, spring waters, and specially formu-
lated bottled waters.

Taking care of the environment is a fundamental
requirement for Perrier Vittel. As the leading world
producer of bottled waters, Perrier Vittel applies a
strong risk prevention policy to its production
sites and to the entire manufacturing process.
Central to the policy is Perrier Vittel’s long-standing
commitment to protect the eco-system. Apart from
protecting catchment basins and water resources,
and constantly monitoring its operations, Perrier
Vittel is devoted to studying and optimising the
environmental impact of its activity.

Tens or even hundreds of years are necessary for
water to filter through the subsoil in a given area
and reach a source. Protecting this source means
protecting the whole catchment area, known as the

impluvium, from any hazardous activity. Such an
area may cover as much as 10 000 hectares, as is
the case for the Vittel and Contrexéville sources
in France. As described below, activities are
strictly controlled to avoid any adverse impacts
to groundwater.

State-of-the-art water collection methods are used
to avoid water infiltration from higher tables. Full
certification of the source is carried out to guaran-
tee the chemical and microbiological composition of
the water, and source protection zones are in place
to ensure optimum control of pollution risks.

Another area of environmental importance for bottled
water operation is packaging. As previously
indicated in this Report, reducing the amount of
packaging used, and improving recycling capacity,
are strong points in the Company’s environmental
progress. Over several years, Perrier Vittel has
reduced the total weight of its bottles by over 33%
by switching from PVC to PET. The used bottles can

Environment – Progress Report 2000

Water as a key priority

Bottled waters

Vittel and Contrexéville are two

primary sources for Nestlé natural

mineral waters. The communities are

located in the French Vosges moun-

tains and are surrounded by mead-

ows and forests. Contrexéville and

Vittel’s natural mineral watersprings

were recognised as public interest

springs in 1860 and 1903 respec-

tively, with legal protection areas

defined around the springs to pre-

serve the local natural environment.

In the mid-1970s, concerns about of

the natural ecological balance in the

Vittel and Contrexéville regions, in

particular from intensive farming

practices, led to the implementation

of a large number of highly innova-

tive measures to protect the springs.

The actions that were taken were

based on the premise that protection

of water resources is a responsibility

that must be shared between agri-

cultural interests, industry, municipal

authorities and local residents. Some

interesting examples of this action

plan included the following:

– Perrier Vittel established a consulting

company to help farmers improve

their agricultural practices through

the application of science-based

farming methods, among them

strict limitations on fertilisers and

management of composts and

slurries. There were financial

incentives to comply.

– Perrier Vittel financed 50%

of the cost to expand the network

of municipal waste-collection

pipes and the capacity of the

outdated sewage plant. As a

result, a larger geographical

region could be covered by the

sewage system and stricter

Case study

France

Innovative source protection
at Vittel and Contrexéville

now be included in selective sorting schemes and
waste or energy recovery programmes. Through
these innovations, Perrier Vittel has been able to
offer consumers more attractive packaging, while at
the same time reducing its environmental impact.

Water is a precious and fragile commodity which
must be preserved and protected. The planet’s
water resources are unevenly distributed, so there
is a need to meet the challenge of transporting
bottled waters around the world under the best
possible conditions.

standards could be met than were

legally required, particularly for

nitrates and phosphates.

– Following a community effort

to replace fuel oil with natural gas

for home heating and industrial

processing, Perrier Vittel

sponsored an incentive programme

to encourage the removal of

oil tanks that had the potential for

rusting and leaking.

Other eco-system protection

activities in Vittel and Contrexéville

have included:

– construction of a ring road with an

impermeable surface and special

waste collection pits around Vittel

to reduce local traffic and the risk

of contamination that can occur

with accidents,

– modification of the landscape to

slow the flow of surface rain

water, thus preventing erosion and

retaining water, and

– a ban on herbicides in the spa

resorts, with reliance on pest-

resistant foliage and biological

pest control.

The lessons learned in the French

Vosges mountains can be applied in

other places around the world.

Unsafe food and water are implicated in 2.4 billion
illnesses per year worldwide, resulting in an
estimated three million deaths. Access to safe water
and safe food is a fundamental human need. Yet,
close to one billion people in developing countries
do not have access to drinkable water. Even in
developed countries, there have been cases of
contamination of public drinking water.

Nestlé has a long history of producing both safe
food and safe bottled water. Company experts
have been key players in developing the “Hazard
Analysis Critical Control Point” system (HACCP)
for food and water safety management.

The Company also shared its expertise by working
with the Industry Council for Development (ICD),
together with other industrial partners to produce
educational materials. One example of ICD efforts
is a training package on HACCP developed in
co-operation with the FAO and WHO. Another
WHO/ICD training package deals with food safety
for nutritionists and other health professionals.
It includes a module on water safety.

Environment – Progress Report 2000

Water as a key priority

Water safety

The Water Education for Teachers

Project (WET) is a broad-based,

international water science and

education programme for classroom

teachers and other educators. It

is designed for children aged 5 to

18 and is grounded in the belief

that an early awareness of, and

respect for, water resources can

encourage a personal, lifelong

responsibility and positive commu-

nity participation.

Since the 1984 inception of Project

WET in the USA, the programme

has attracted global interest and has

been recognised by educators

and scientists for its non-biased

materials and training opportunities.

The primary water issues that chal-

lenge people in the USA – drought,

floods, water-borne diseases, pollu-

tion, scarce water supplies — are

common throughout the world. Even

countries with great wealth are con-

tinuously struggling with water qual-

ity and quantity issues. The need for

innovative solutions, including water

education, to address these chal-

lenges has never been greater and is

widely recognised by governments,

industry and consumers. Project

WET USA has been implemented in

all 50 US States, the District of

Columbia, four US Islands, and is a

partner with the United States

Peace Corps. Since 1995, over

65 000 teachers have been trained

at locally sponsored Project WET

workshops and the programme has

reached over 25 million young

people and adults.

Case study

USA

Sponsoring a programme
for water education

Education and sponsorship

All Nestlé’s operations and all its employees are
part of local communities throughout the world.
In some of the developing countries in which
the Company has operations (and even in some
developed countries), the necessary infrastructures
for water are lacking.

To improve water resources and accessibility, Nestlé
contributes to the well-being of local communities
through the personal commitment of its employees,
through financial assistance and through the
sharing of know-how. The Company’s goal is to
help develop sustainable water resources and safe
water supplies, as well as to promote long-term
skills, income and productivity.

Nestlé’s activities in South Africa provide just one
example of how the Company strives to improve
community water resources. In 1985, Nestlé South
Africa helped establish EcoLink, an organisation
that provides under-served communities with access
to skills, knowledge and resources to improve

their living conditions, including water resources.
Nestlé’s involvement in EcoLink and other
partnerships in South Africa was featured by the
World Business Council for Sustainable Develop-
ment (WBCSD), in

Partnerships in Practice – Indus-

try, Fresh Water and Sustainable Development

, April

2000. It is also recounted in the Nestlé publication,

Nestlé in the Community

In March 2000, Nestlé and Perrier Vittel took part
in the second World Water Forum, The Hague,
Netherlands. Nestlé joined governments, consumers,
academia and other partners in seeking to identify
solutions that will ensure a sustainable water supply
for the world’s population. As part of the World
Water Forum, Mr. Peter Brabeck-Letmathe, the CEO
of Nestlé, participated on the CEO Panel. Forum
participants were particularly interested in Perrier
Vittel’s sponsorship of Project WET.

Project WET was first sponsored in

1992 by Poland Springs, a division of

the Perrier Group of America (PGA).

Since then, PGA, part of the Nestlé

Group’s Perrier Vittel Company,

has played an important role in the

continuing success of Project Wet.

One innovative example was its

sponsorship of the first National

Water Education Day in September

2000, under the theme “Make a

Splash with Project WET”. Through

nationwide water festivals, and their

related media coverage, nearly

ten million people were introduced

to Project WET and the need for

global water education. In conjunc-

tion with “Make a Splash”, PGA also

supported the development of

numerous publications that continue

to be distributed through the Project

WET network.

The outstanding work of Project

WET in the USA, made possible

through the annual support of Perrier

Group of America, has provided

the programme with global exposure

and network expansion.

Project WET received international

recognition as a model water

resources education programme at

the tenth World Water Congress in

Melbourne, Australia and at the

second World Water Forum in March

2000. In addition, the RAMSAR Con-

vention, a global wetlands organisa-

tion, highlighted Project WET and its

work in wetlands education at its

world conference in May 1999.

Following the success of Project WET

in the USA, Nestlé’s Perrier Vittel

will start sponsorship of WET in 2001

in Mexico and the Philippines.

The need for a management system

In 1996,

the Nestlé Environmental Management System
(NEMS) was created to pull together all of the
Company’s environmental activities and measures.
The system, which provides a common, coherent
framework for environmental management at all
levels of the organisation, has been implemented
throughout the Company.

NEMS has led to:

– a systematic approach that ensures respect

for Company policy and legal requirements.
This has been achieved via an environmental
organisational structure, policies and guidelines,
objectives and programmes, training and
communication, operational control and surveys
and audits,

– the continuous improvement of environmental

performance as shown by the EPI results
presented earlier in this Report,

– the achievement of compatibility with

international standards for environmental
management systems, such as ISO 14001 and
the eco-management and audit scheme
(EMAS) of the European Union. Whereas NEMS
implementation is mandatory, certifications
under these other systems are optional,
depending on local conditions (see list of
certified factories in the Annex), and

– an expansion of mutual trust with consumers,

government authorities and business partners
through open communication and an on-going
record of environmental improvements (see
list of awards in the Annex).

But setting up a system doesn’t, in itself, guarentee
results. What separates NEMS from other systems
is its focus on performance and improvements in all
aspects of sustainability.

Environment – Progress Report 2000

Systematic management of environmental performance

Environmental targets and plans

The Nestlé Environmental Advisory Group, led by the

Corporate Environmental Officer, is made up of specialists

representing: Environmental Affairs, Agricultural Services,

Engineering, Research & Development, Purchasing,

geographical Zone Technical Management, Packaging,

Distribution, Quality Management, and Public Affairs.

NEMS is not a closed loop, but a spiral

for continuous improvement.

NEMS framework

Establish environmental targets and plans

Monitor environmental progress against plans

Check results and define corrective and preventive actions

Environmental

commitment

Audits

Documentation

Operational
control

Training and
communication

Policies

Legislation

and regulations

Programmes

Organisational

structure

The people who make it happen

In one way

or another, many employees share environmental
responsibility and contribute to the success of NEMS.
However, its success is dependent upon an efficient
organisational structure. For this reason, environ-
mental officers are appointed at different levels of
the organisation, from corporate to factory level.

At the corporate level in Vevey, Switzerland, the
Environmental Affairs Department is headed by the
Corporate Environmental Officer who reports
directly to General Management. The Environmental
Affairs Department works with an internal network
of high-level senior managers, representing a variety
of functions covering the whole supply chain.
Referred to as the Environmental Advisory Group
(EAG), this group meets regularly to review current
and future environmental issues and to co-ordinate
environmental strategy, planning and action.

In Nestlé’s local operations throughout the world,
referred to as “markets”, market environmental

officers are designated who are responsible for the
implementation and performance of NEMS in their
country. They set local objectives and co-ordinate
activities throughout the supply chain.

In addition, at Nestlé’s sites (e.g., R&D centres,
distribution centres, factories), site environmental
officers are appointed. They are responsible for local
issues, including interaction with the community, site
resources, local government, etc. The commitment
of top management, together with this cascade of
environmental responsibility at all levels of the organ-
isation, remains the cornerstone of NEMS success.

Policies

As stated earlier,

The Nestlé Policy on the

Environment

provides worldwide environmental

direction for the Company. It is complemented with
a number of other policies and guidelines,
both internal and external. In addition, markets
and factories develop their own policies based on
local conditions and requirements.

Environmental policies and guidelines

1990

Nestlé Policy on Environment and Packaging

1991 and 1999

Nestlé Policy on the Environment

1992

Nestlé Tuna Policy

1993, 1999 and 2000

Use and Phase-out of Ozone Depleting Substances

1995 and 1999

Nestlé’s Principles of Purchasing

1997

Nestlé Environmental Minimum Technical Requirements (EMTR)

1997 and 2000

Guidelines for Improving Environmental Impact of Logistics

1998

Guidelines on Sourcing of Agricultural Raw Materials

1998

Nestlé Corporate Business Principles

2000

Nestlé Water Policy

The table above shows the wide range of Nestlé’s policies and guidelines regarding environmental issues.

Some of them are for internal use, some others are publicly available.

In some countries, legislation is non-existent or
insufficient to meet the Company’s environmental
commitments. For this reason, Nestlé Environmental
Minimum Technical Requirements (EMTRs) were
developed and have become an important part of
Nestlé’s environmental policies. The EMTRs apply to
Nestlé’s factories, and set minimum global require-
ments that must be followed in areas such as water,
energy, air emissions and waste.

Legal requirements

Compliance with

environmental regulations is a must. To help assure
compliance and to help carry out effective
assessments, NEMS requires the compilation of a
register of applicable laws at site and market levels.
Additionally, NEMS encourages proactive interaction
with trade associations and authorities, aimed
at rationalising and harmonising regulations, as
well as promoting voluntary initiatives.

Objectives and programmes

It is important to

set objectives in order to achieve results. Within
NEMS, objectives are based on several factors:
overall policies, EMTRs, international commitments
and local environmental considerations. To ensure
that these objectives relate to the key issues in
the most effective and specific way, they are
defined both globally and locally, with programmes
established to meet the desired results.

Environment – Progress Report 2000

Systematic management of environmental performance

Environmental targets and plans

Global examples include programmes for the phase-
out of ozone depleting substances and packaging
source reduction. As described earlier, Nestlé very
early on set targets for the reduction of ozone
depleting substances. And, in 1991 on a worldwide
basis, the Company set out to reduce the amount of
packaging used for its products, while safeguarding
their quality and safety.

Turning objectives into results at site level is
essential for environmental progress. In the
European Union, all EMAS-registered factories
publish public reports that include the factory’s
performance versus established objectives.

2.0

2.4

2.8

3.2

1999

1998

1997

3.27

2.92

Target
2.88

2.71

300

320

340

360

1999

1998

1997

370.0

363.1

Target
326.1

329.9

Steam consumption

Power consumption

tonne per tonne product

kWh per tonne product

Performance versus 1996 established targets
Biessenhofen, Germany

Progress towards objectives

Training and communication

Training and

communication is an important part of NEMS. One
task of Nestlé’s global environmental team is to
build ever-stronger environmental awareness and
responsibility among the Company’s employees.
This is done in many ways. For example, the factory
environmental surveys involved thousands of people
at all levels, from top management to the factory
floor. This practical experience is reinforced through
in-house magazines, newsletters, videos and
through the Intranet.

In 2000, an international environment conference
took place in Vevey. It brought together environ-
mental specialists from 50 Nestlé markets, as
well as from Vevey headquarters. The participants
reviewed the overall NEMS objectives and worked
together to identify ways to further improve NEMS,
the EMTRs, EPIs and resource management.

At Rive-Reine, the Company’s international training
centre in Switzerland, environmental issues are a
regular part of courses for Nestlé’s executives. The
corporate efforts are multiplied by countless other
training sessions organised in the markets around
the world.

NEMS encourages communication and dialogue
about environmental issues with external interested
parties. These interactions have led directly to
regulatory and educational improvements beyond
the world of Nestlé, as well as to many beneficial
community initiatives.

Centre front row: Mr. Peter Brabeck-Letmathe, CEO, Mr. Rupert Gasser, Executive Vice President Technical, Production and

R & D and Mrs. Irina du Bois, Corporate Environmental Officer during the Nestlé Environmental Conference 2000. Participants

included the Nestlé Environmental Advisory Group and Market Environmental Officers from all over the world.

Measurement
and operational control

Over and above the

definition of standards and the setting of objectives,
it is important to measure performance versus
those standards and objectives, as well as versus
applicable legislation. Efficient monitoring is
therefore a crucial part of NEMS. It provides on-
going evaluation of progress and helps to ensure
continuous improvement. It means that methods
of record-keeping and appropriate documentation
for the measurement of performance have to
be in place. To this end, NEMS requires periodic
reports at all levels of the organisation. On a
monthly basis, sites and markets provide comments
on emerging issues that are then consolidated on
a global basis.

For many years, prior to NEMS, individual markets
monitored indicators in order to assess their
environmental performance. For example, as early
as 1974, Nestlé Germany started tracking its
environmental performance. In 1990 it issued a

Environment – Progress Report 2000

Systematic management of environmental performance

Progress towards objectives

Nestlé’s Danville, Virginia factory

is a medium-sized factory with

480 employees. It produces approxi-

mately 25 000 tonnes per year of

refrigerated products, including filled

pastas, sauces and cookie/brownie

dough. In 1996, the factory volun-

teered to be the pilot site for the

launch of NEMS in Nestlé USA. The

commitment of the staff, combined

with its size and environmental

practices, made the Danville factory

an ideal candidate.

Introduction of NEMS began in

conjunction with environmental audit

and waste minimisation efforts

in the factory. The work was carried

out by a diverse team comprising

factory and corporate personnel.

Danville has since become the first

Nestlé USA factory to fully imple-

ment NEMS, based on and internally

equivalent to ISO 14001.

In the first year of NEMS implemen-

tation, the factory reduced solid

waste by over 10%, resulting

in savings of USD 370 000. Waste

water impact and concentrations

were reduced by 8%. Total factory

savings now exceed USD 800 000

and solid waste has been reduced

by 41%.

The success at Danville was made

possible through the dedication of

the factory employees, supported

by a strong emphasis on training

and awareness.

Case study

USA

NEMS in action

Solid waste recycling

+ 9.6%

Waste water load

– 3.3%

Energy consumption (fuel gas)

– 5.4%

Waste water discharge volume

– 22.9%

emissions

– 69.1%

Dust particle emissions

– 54.7%

Fresh water consumption

– 36.9%

Nestlé Germany’s
environmental performance 1974–1989

progress report for the period 1974–1989
during which production volume had increased
by 55%. This report was updated in 1995.

To help achieve continuous environmental improve-
ment, as described earlier, a number of environmental
performance indicators (EPIs) have been identified.
In 1997, Nestlé decided to initiate the collection and
consolidation of EPI data on a worldwide basis.

1996

1997

1998

1996

1997

1998

250

500

750

Waste reduced through NEMS Cumulative business savings

tonnes

achieved through NEMS

Recycled

USD

Landfill

Continuous improvement

Surveys and audits

Nestlé has a comprehensive

system of surveys and audits encompassing all
levels of its operations. Some audits specifically
focus on environmental issues – from compliance to
management systems – at factories, distribution
sites, office buildings, etc. Other audits are multi-
disciplinary in nature and include environmental
components.

Both types of audit are carried out at corporate
and market levels. They are conducted internally
and can also be conducted externally by third
parties.

Nestlé’s suppliers are also encouraged to follow
environmentally-sound business practices. To
assess the way they meet their responsibility, Nestlé
has incorporated environmental components into
its supplier quality assurance audits. To date, more
than 1400 such audits have been carried out. Through
these audits, Nestlé has been able to improve
supplier practices, for example, the replacement of

equipment using CFCs in Indonesia and Canada,
and a special initiative in the Philippines, “Greening
the Supply Chain”.

It is not enough simply to conduct audits. It is even
more important that problems are identified and
that appropriate action plans are then developed
and implemented.

As just one example, the 1997 factory environ-
mental survey showed that the Valsayn factory
in Trinidad had inadequate waste water treatment.
The factory manufactured close to 40 000 tonnes
of products per year including UHT liquid milks,
juices, Nescafé, Milo and Quik.

Surveys and audits

1987 to present

Ammonia safety audits

1988 to present

Ozone depleting substance emissions surveys

1991 to present

Packaging source reduction surveys

1994

First factory environmental survey

1995

Environmental surveys of worldwide administrative buildings

1995 to present

Environmental aspects included in annual corporate internal operational audits

1995 to present

Environmental aspects included in supplier quality assurance audits

1996

Environmental surveys of distribution and logistics operations

1997

Second factory environmental survey

1997 to present

Environmental performance indicators consolidated

By investing the necessary capital, about
CHF 850 000, an effective waste water treatment
facility was constructed which exceeds Nestlé’s
EMTRs. In recognition, the factory received the
“Prime Minister Trade and Environmental Award”
in 1999.

In addition to providing an opportunity for
increasing environmental awareness among the
factory workers, the waste water treatment plant
has become an educational showpiece for schools.
To facilitate tours, the plant was built with wider
walkways than a regular industrial installation,
taking all the necessary precautions for the safety
of visitors. Tours include the treatment tanks
themselves, and the analytical laboratories. The
sight of fish swimming in the effluent pond
provides visitors with living proof of the purity
of the water.

Environment – Progress Report 2000

Systematic management of environmental performance

Continuous improvement

On December 19, 1995, Nestlé’s

factory in Weiding, Germany became

the first Nestlé factory in Europe

to be registered in the European

Union eco-management and audit

scheme (EMAS). This registration

signifies that Weiding’s environ-

mental management system

and environmental statement have

been examined and validated

by an externally-accredited verifier.

The Weiding factory is one of

the largest Nestlé plants in

Germany. It has approximately

900 employees and manufactures

over 350 high-value products –

from infant foods to condensed milk

and chilled desserts.

The work and preparation for EMAS

registration was carried out by a

multi-disciplinary team that included

the factory manager and specialists

from production, quality assurance,

and accounting. Related documenta-

tion was prepared that consisted of

a Nestlé Germany environmental

manual – containing basic principles

and common management

procedures – and a Weiding factory

environmental manual, describing

specific local procedures and

instructions. This documentation

provides the basis for the system:

setting policies, principles and

management procedures related to

all the environmental aspects of

the operations.

In addition, a site-related environ-

mental statement was published

that included an “invitation to

dialogue” and was addressed

Case study

Germany

From NEMS to ISO 14001
and EMAS

The future

With its long-term experience, its framework for
environmental management and the focused efforts
of recent years, Nestlé feels well prepared for future
environmental challenges.

The Company recognises that despite significant
environmental progress, opportunities to innovate
and improve still exist in many areas of its operation.

The ability to adapt within a changing world is
inherent to Nestlé’s success. New worldwide
environmental issues will emerge and will require
appropriate action. Likewise, environmental
challenges related to expansion of the Company,
either through internal growth or through
acquisition, will need to be addressed.

For Nestlé, the continuous improvement of environ-
mental performance will remain an all important
target, now and in the future.

to employees, authorities, clients,

suppliers, the media and

neighbouring communities.

During the year of preparation for

the first EMAS registration of

the site, Weiding personnel were

kept informed through the periodic

“Weiding Reports” and informational

newsletters. In this way employee

involvement in protection of the

environment was reinforced, both

in their professional activities, and

at home.

The EMAS registration was

successfully repeated in 1998 and

complemented with certification

under ISO 14001.

Since Weiding, several other Nestlé

factories around the world have

succeeded in obtaining ISO 14001

certification and EMAS registration.

A detailed list of these factories is

provided in the Annex of this Report.

200

400

600

800

1991 1992 1993 1994 1995 1996 1997 1998

1990

tonnes

Weiding factory greatly reduced

disposed waste even prior to EMAS

Research and Development is a vital aspect of
the Nestlé business. The strategy of Research and
Development is to strengthen the Company’s brands
and support future long-term growth and
competitiveness through innovation and renovation.
Nestlé’s presence in Research and Development
is unmatched in the food industry: there are
as many as 20 Nestlé sites dedicated to Research
and Development activities around the world
with some 3500 staff. One is specifically dedicated
to water, the Perrier Vittel Institut de l’Eau.
Year after year, Nestlé invests some CHF 800 million
in R & D.

Environmental protection is built into products and
processes right from the start. High on the
agenda are:

– environmentally-sound production techniques and

sourcing criteria for agricultural raw materials,

– processing methods that minimise water and

energy consumption, as well as waste generation,

Environment – Progress Report 2000

Research and Development

– 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.

These principles must be applied within the
development process.

For major product or process innovation and
renovation projects, the Research and Development
Centres prepare environmental impact studies.
Historically, Nestlé has also conducted even more
detailed environmental “Life Cycle Assessments”
(LCA), a method to analyse the environmental
impact of a product “from cradle to grave”. Pilots
have been completed for some important products
and the concept applied to new packaging
developments. The knowledge gained from LCAs
is now being used in the practical environmental
impact studies.

But, genetic diversity has always been in danger due
to unforeseen events – some natural, like frost, storms
and crop diseases; others political, like revolutions
or civil wars. This is why Nestlé’s Research Centre
in Tours, France, decided to collect a wide range of
commercial Arabica and Robusta species, to record
their genetic fingerprints, and to develop techniques
of cryopreservation and rapid multiplication.

A part of the multiplication cycle involves isolating
individual cells from a coffee bean or leaf, and
multiplying these by cell division. Each cell has the
capacity to be grown into a tree. However,
these cell cultures, as they are called, have another
advantage. They can be stored indefinitely at ultra-
refrigerated temperatures.

Using the tools of cryopreservation and rapid
multiplication of cells, the Nestlé Research Centre
in Tours is building a collection of cell cultures and
seedlings containing a large number of coffee
plant species selected on the basis of quality criteria.

Coffee roasting generates emission

gases such as carbon monoxide

(CO), nitrogen oxides (NO

) and

other compounds measured as total

organic carbon (TOC).

The Nestlé Product Technology

Centre for coffee products in Orbe,

Switzerland, has developed a

process to reduce these emissions.

This involves two changes in the

process: more precise control at the

end of the roasting step to slow

down the rate of emission, and a

high temperature after-burner to

complete the operation.

The new process was originally

designed to meet stringent German

air emission standards. It has since

been implemented in two of Nestlé’s

coffee factories in Spain, at Reus

and Gerona, and also in the Toluca

factory in Mexico. In this single

factory, TOC emissions were reduced

by 20% and CO by 75%.

Case study

Research and Development

Helping to reduce air
emissions in coffee factories

LCA studies cover significant environmental
aspects throughout the product life cycle, from the
sourcing of raw materials, through processing,
to the packaged product and the end-life of the
packaging material. The study is evaluated,
in conjunction with detailed information on the
potential manufacturing site, to ensure that new
projects meet Nestlé’s environmental standards.

In the 1995 publication

Nestlé and the Environment,

work to preserve commercial coffee species was
mentioned. This work continues today. Considerable
research effort was put into understanding the
biological and agronomic factors behind green
coffee production and quality.

Clearly, one of these factors is genetics. Unlike wheat,
rice, or corn which, when dried, can be stored
for years as seeds, coffee beans cannot be stored for
more than a few months. So traditionally, the only
way of preserving genetic resources and diversity
has been in the field, on farms and plantations.

The coffee berry borer is the most

prevalent coffee pest worldwide.

The female beetle feeds on the

young coffee berry, causing it to

drop prematurely. Beans inside

affected berries can be partially or

completely destroyed by the feeding

and tunnelling activities of female

beetles and their larvae. Damage can

continue after harvest and during

storage if the moisture content

of the beans is favourable for the

development of the pest.

In the Philippines and in Indonesia,

crop infestations of up to 40–45%

have been recorded in some of the

major production regions. This

represents approximately a 10–15%

loss in bean yield. Flavour quality of

the beans is also adversely affected.

Controlling the pest exclusively by

chemical pesticides is expensive and

can be harmful to the environment,

raw materials and final products.

To minimise these adverse impacts,

Nestlé’s Research and Development

has formulated an integrated pest

management (IPM) approach. This

approach was based on work carried

out in major coffee research

institutions in Latin America and

Asia and reflected Nestlé field expe-

rience, including on-site adaptation

tests. IPM is a complex system of

pest control that requires crop and

region specific solutions. As such,

Nestlé field specialists must adapt

their advice to local conditions.

The concept is based on prevention,

monitoring and treatment through

cultivation practices, as well

as biological and chemical control.

It includes:

Cultivation practices

To break the lifecycle of the pest,

cherries are picked regularly as they

ripen. A final “sanitary harvest” is

carried out after the last commercial

harvest to remove any cherries

remaining on the trees, as well as

those that have fallen on the ground.

Pruning also facilitates complete

harvesting and discourages predator

development.

Biological control

Natural predators, e.g. a naturally

occurring parasitic fungus and

tiny parasitic wasps, are used as

biological pesticides. Assistance is

given to select the most appropriate

strains of fungi and to improve

breeding and multiplication tech-

niques for the wasps.

Chemical control

Chemical pesticides are used only

when infestation reaches a level

of 5–10% 120 days after flowering.

Care is taken to curb the use of

chemicals and ensure that the

minimal dosage is used. Through

proper application of IPM, infesta-

tion of a coffee crop can be reduced

to about 5%, with minimal damage.

To transfer knowledge about IPM

more effectively to farmers, Nestlé

works with local agricultural

institutions to conduct workshops

and field demonstrations. These

sessions include active participation

by farmers. Preserved specimens

and technical brochures help provide

essential information.

Case study

South East Asia

A method for pest control
in coffee plantations

Coffee cherries

Modern biotechnology or gene technology has the
potential to contribute to sustainable agricultural
practices. However, there is increasing public
debate about its potential impact on the environ-
ment and human health. As a major purchaser and
processor of agricultural raw materials, Nestlé
has a responsibility to address these developments.

Farmers have used traditional biotechnology for
centuries, cross breeding plants and animals to
improve the quantity and quality of food. Today,
modern biotechnology makes the processes more
directed and creates new opportunities in many
areas from medicine to food.

Agricultural biotechnology can assist in conserving
natural resources, natural habitats and native
species thus reducing the ecological impact of
current intensive farming practices. The first com-
mercialised genetically modified crops are providing
resistance to pests and diseases or helping to control
weeds. The environmental benefits of these
crops include reduced pesticide use and decreased
tillage. For instance, herbicide-resistant crops
are, by their very nature, no-till crops thus assisting
farmers in their quest to prevent erosion and
improve soil quality. In addition, many genetically
modified crops offer increased yields, thus
potentially reducing the need to expand existing
agricultural land bases.

Environmental data from multi-year practical
experience with genetically modified crops in the
USA has shown that insect-resistant and herbicide-
tolerant crops can effectively reduce the use of
pesticides. Apart from direct advantages for the
environment and farmers, a decrease in the net
amount of agrochemicals used can help protect the
quality of ground water.

In the near future, crops that are adjusted to
adverse growth conditions, such as saline
environments or drought, could help to reduce the
pressure on the arable land that is available to feed
an ever-increasing population. Additionally, other
developments such as high Vitamin A rice may
contribute to fighting nutritional deficiencies and
improving human health.

Nestlé supports the need for continuing research
to assess and minimise any potential environmental
impact of modern biotechnology. Regarding the
health aspects, Nestlé concurs with independent
organisations like FAO and WHO that have con-
cluded that those crops that have passed the evalu-
ation procedures are as safe as their conventional
counterparts.

Nestlé developed its position on gene technology in
1989. The position has been regularly updated since
then to address new developments. The
latest version is available on Nestlé’s Internet
site,

www.nestle.com

Environment – Progress Report 2000

Modern biotechnology and environment

Nestlé position on gene technology

Introduction

Nestlé’s business for more than

130 years has been built on manufacturing
and marketing products tailored to meet the diverse
needs and preferences of consumers all over the
world. Based on this experience, Nestlé recognises
the potential contribution of gene technology to
the improvement of the quality and nutritional value
of our food. Gene technology also can lead to
increased food production and can support
sustainable agricultural practices. In some
instances, positive effects on health have been
confirmed. For those reasons, Nestlé supports a
responsible application of gene technology for
food production based on sound scientific research.
Nestlé will continue to use ingredients derived from
genetically modified crops when it has complete
confidence in their safety.

Safety

The safety of our products and the

integrity of the ingredients from which they are
manufactured are paramount to Nestlé. Genetically
modified crops and all raw materials used by Nestlé
are subject to strict safety evaluation. Nestlé is
confident that the safety of ingredients derived from
such crops is assured through this evaluation
process and is confident that they do not constitute
a health risk. Nestlé concurs with the opinion
expressed by WHO, FAO, OECD and numerous
independent scientific bodies that those crops
that have passed the evaluation procedure are as
safe as their conventional counterparts.

Compliance and labelling

Legislation regulating

the use of ingredients derived from genetically
modified crops and their labelling is in place
or under preparation in many countries. Nestlé is
strictly complying with all the relevant laws and
regulations.

Consumer perceptions
and the future needs of society

As Nestlé is

marketing its products globally, it takes into
consideration local needs, cultural differences and
consumer wishes as well as attitudes concerning
the use of ingredients derived from genetically
modified crops. Nestlé also recognises that in some
regions of the world, governments have expressed a
keen interest in this technology as a potential tool to
address their country’s future food requirements.

Consumer dialogue
and communication

Nestlé promotes an open

dialogue on gene technology with consumers,
government bodies, the trade and the scientific
world. We closely monitor public opinion as well as
regulatory and scientific developments. Nestlé
Consumer Services, established in 60 countries, are
available to respond to consumer inquiries in
relation to genetic modification in food production.

Alcon, part of the Nestlé Group, is the global leader
in the research, development, manufacture and
marketing of pharmaceutical products and
medical devices in the ophthalmic and vision care
industry. Alcon’s basic mission is the preservation
and restoration of vision.

Alcon is present in over 170 countries and has nearly
11 000 employees worldwide. Its 15 manufacturing
facilities are located in North America, South America,
Europe and China.

Alcon’s environmental stewardship

Along with

the Company’s focus on improving the quality of life
through vision care, Alcon strives to incorporate
sound environmental management into all aspects
of its business. The Company has a broad and
long-standing commitment to each community in
which it operates.

Alcon’s environmental approach is aligned with
Nestlé’s and at the same time takes into account
specific aspects related to the pharmaceutical
sector.

Environmental policy

Alcon’s overall direction

regarding environmental management is driven by
the corporate

Policy on Environmental Matters

This Policy emphasises Alcon’s worldwide commit-
ment to conducting business in a way that ensures
continuous environmental improvements. Alcon
works to meet these commitments by applying
environmental principles regarding:

– compliance with applicable environmental laws,
– employee education regarding environmental

practices,

– source reduction to minimise the volume of

waste generated,

– state-of-the-art technologies to manage waste

with priority on recycling, and

– environmental quality in product development,

purchasing, shipping and distribution.

Alcon’s environmental
management system

In 1998 Alcon implemented

the Alcon Environmental Management System
(AEMS), which is modeled after NEMS. AEMS is
structured to ensure that environmental issues are
integrated into business policy, planning and
operations. Following implementation of AEMS, two
operations have achieved ISO 14001 certification.

Environmental progress summary

Over the

years, Alcon has completed numerous environmen-
tal enhancements.

Environment – Progress Report 2000

Alcon

Examples can be seen in several areas including
reductions in waste water, energy and air emissions,
packaging and waste.

Waste water

– The site in Puurs, Belgium, recently completed

the construction of a new waste water collection
system.

– In 1999 Alcon Surgical, in Huntington, West

Virginia USA completed the installation of a new
waste water treatment plant.

– Operations in São Paulo, Brasil, installed

a system to treat waste water from a water
de-ionisation process.

Energy and air emissions

– At Alcon’s facility in Mexico, improvements in

operating conditions for boilers resulted in a
reduction in fuel consumption of about 20%.

– The Alcon Surgical, Irvine, California location is

an active participant in the local commuter trip
reduction plan. An increase in the number
of employees that participate in «ride sharing»
has helped to decrease air emissions from cars.

Packaging reductions

– The amount of material used for enzymatic

tablet cartons was reduced by 53%.

– A separate product insert for contact lens

cleaning products was eliminated by printing
the information on the inside of the carton.

Waste

– Alcon Research, Fort Worth continued the

expansion of recycling efforts. Solvent recyclers
were installed on forty HPLC units. This led
to a reduction in the volume of mobile phase
used by the HPLC’s of approximately 80%.

– Operations in São Paulo, Brasil, implemented a

waste minimisation programme, which resulted
in reduction of material sent for incineration,
and improved recycling of used oil and grease.
Additionally, cardboard boxes are now sold for
reuse or recycling.

From 1998 to 1999, Alcon’s overall generation
of solid waste consisting of office, production,
cafeteria and other waste streams was reduced by
over 13%. Reductions in the amount of waste
disposed by landfill, fuel blending, incineration
and treatment were achieved during 1998 and 1999,
hand in hand with an increase in recycling.

What the future holds

Alcon will continue to

review its environmental management system to
further enhance environmental performance. This
includes continuously integrating environmental
considerations into new products and packaging,
and making physical improvements in the
engineering and design phases of development.
Alcon is further committed to improving the
efficient use of energy, eliminating packaging
waste, reducing emissions, using recycled materials
wherever possible, and increasing the recyclability
and compatibility of packaging with existing waste
management schemes.

Landfill

Fuel

Blending

Treatment

Incineration

Recycling

700

1400

2100

2800

2883

1807

232

194

680

1240

1602

290

1999

1998

Overall waste disposal methods

Tonnes

Methodology

The consolidated

Group EPIs cover manufacturing

operations. To determine the environ-

mental performance, both the process

inputs and outputs are measured.

This is based on the concept of

eco-efficiency – an increase in product

or service value per unit of environ-

mental influence – as defined in 1992

by WBCSD in their document

Measuring eco-efficiency – a guide to

reporting company performance

The methodology used to identify,

track and report the indicators is also

consistent with ISO 14031.

The EPIs include water and energy

consumption, waste water genera-

tion, greenhouse gases, air acidifica-

tion potential and ozone depleting

substance emissions as well as

by-products/waste generation.

Across the world, there is different

legislation, and different methods of

measurement. For this reason, many

organisations, including WBCSD,

have been working to define

standard environmental indicators.

Although progress has been made,

this remains a difficult task.

Wherever possible, the widely

accepted definitions have been used,

such as the WBCSD’s “generally

applicable indicators” and “business

specific indicators”.

Compiling data from nearly

500 factories is a challenging and

demanding task. Through NEMS, the

accuracy of the data and the level

of reporting have constantly

improved. As can be seen in the

table below, the overall level of

reporting was 95%.

The consolidated indicators pre-

sented in this Report are for the

food-related activities. Because of

the significant difference in products,

the pharmaceutical group, Alcon,

is not included. In a very limited

number of cases, some of the

reporting sites did not provide data

for all indicators. In order not to

overstate performance, this has been

taken into account when calculating

the consolidated eco-efficiency.

Environment – Progress Report 2000

Environmental performance
indicators (EPIs)

1997

1998

1999

Nestlé factories

495

522

509

Nestlé factories (excluding Alcon)

480

507

494

Factories that reported

464

476

471

Air acidification potential

The

sum of SO

and NO

air emissions

from on-site combustion processes.

There are currently no generally

agreed factors for measurement of

this effect. Therefore, measurements

are based upon the acidic strength

of each component (SO

= 0.7 x

) presented as SO

equivalents.

These components contribute to

the acidification of water and

soils. Burning of fuels in boilers,

roasters, dryers and electrical

generators produces NO

emissions.

When these fuels contain sulphur,

such as coal and heavy oil, SO

emissions are produced.

Ozone

depleting substances

The sum

of substances emitted which have

been shown to contribute to

the depletion of the ozone layer. The

common unit of measurement is

R-11 equivalents. R-11 is one type of

refrigerant which has been assigned

an ozone depletion potential of one,

with all other ozone depleting

substances being assigned related

values. The impact potential of each

substance is determined using con-

version factors commonly agreed by

most authorities. For Nestlé, these

substances are primarily refrigerants

in equipment used to cool or freeze

products, or methyl bromide – a

fumigant used to protect raw mate-

rials or products from insects.

By-products/

waste generation

The sum of all

materials used or produced during

manufacturing which are not

included in the final product. This

includes materials that are either

recovered or disposed of. Examples

include off-specification raw mate-

rials, cleaning residues, trimmings

from raw and packaging materials,

etc. (Although this indicator is

defined on a global basis, some

differences in reporting may

exist due to differences in national

legislation defining waste).

By-products/

waste recovery

The sum of all

by-products and excess materials

generated which are not destined

for final disposal (e.g. landfill

or incineration without energy

recovery). These are used to

generate energy, for recycling,

or as feed stock for other processes.

An example is the use of spent

coffee grounds to produce energy

or compost.

Disposed waste

The sum of all

materials used or produced during

manufacturing which are not

included in the final product and

which are disposed of. This does not

include materials that are reused,

recovered or recycled. An example is

waste that is sent to an approved

landfill.

Environment – Progress Report 2000

Environmental performance indicators (EPIs)

EPI Definitions

Inputs

Water consumption

The sum of

water consumed from all sources,

including purchases from suppliers

and surface or ground water sources.

It is used in a variety of ways:

for bottled water, as an ingredient,

for industrial processes (for example,

steam for cooking), in cooling

processes and for cleaning.

Energy consumption

The sum

of all energy purchased or obtained

– less any energy which, in rare

cases, is sold. This includes elec-

tricity, steam, fuels such as oil and

natural gas, and by-products such

as spent coffee grounds. The energy

is used in many different ways to

transform raw materials into finished

products, for example, conveying,

cooking and packaging.

Outputs

Waste water generation

The sum

of all waste water discharged from a

factory. This primarily includes

industrial waste waters. Waste water

is generated in manufacturing from

processing, cleaning, and some

cooling processes. In certain cases

rain water run-off may be included.

Greenhouse gases

The sum of

all on-site CO

emissions from

combustion processes used to

manufacture Nestlé products. CO

commonly accepted as contributing

to global warming, as outlined in the

Kyoto Protocol. These CO

emissions

can result from burning of fuels in

boilers, roasters, dryers and electric

generators.

EPI data

Indicator

Units

1997

1998

1999

Inputs

Production volume

tonnes product per year

19.8

23.4

24.5

Water consumption

per year

217

218

210

per tonne product

11.0

9.37

8.59

kg product per m

91.0

107

116

Energy consumption

Joules (PJ) per year

89.8

91.0

89.6

Joules (GJ) per tonne product

4.55

3.90

3.65

kg product per GJ

220

256

274

Outputs

Waste water generation

per year

174

165

161

per tonne product

8.86

7.11

6.62

kg product per m

113

141

151

Greenhouse gases

tonnes CO

per year

4.71

4.90

4.75

kg CO

per tonne product

241

212

197

kg product per kg CO

4.16

4.72

5.09

Air acidification potential

tonnes SO

equivalents per year

34.2

30.8

29.3

kg SO

equiv. per tonne product

1.74

1.34

1.21

kg product per kg SO

equivalents

575

749

827

Ozone depleting substances

tonnes R-11 equivalents per year

290 * 64.6

59.1

g R-11 equiv. per tonne product

36.0 * 2.76

2.41

kg product per g R-11 equivalents

27.8 * 362

415

By-products/waste generation

tonnes per year

2.02

1.97

1.91

kg per tonne product

103

84.5

78.5

kg product per kg by-products/waste

9.71

11.8

12.7

By-products/waste recovery

tonnes per year

1.53

1.46

1.43

kg per tonne product

77.9

62.7

58.8

kg product per kg by-products/waste

12.8

15.9

17.0

Disposed waste

tonnes per year

0.493

0.508

0.479

kg per tonne product

25.1

21.8

19.7

kg product per kg waste

39.9

45.8

50.8

* Data is for 1986 when consolidated measurement began.

Environment – Progress Report 2000

List of awards

1995

Brazil

Goiania factory received

the Cenáqua Award from the Envi-

ronment and Amazonian Brazilian

Institute (IBAMA) in recognition of

its environmental achievements.

Mexico

Coatepec factory

received the White Flag Award from

the Veracruz State Government

for environmental achievements.

Nigeria

Nestlé Nigeria won an

Environmental Performance Award

from the Federal Environmental

Protection Agency.

South Africa

Nestlé South Africa

received the Custodians of Table

Mountain Award from the World

Wide Fund for Nature (WWF) for

efforts to safeguard Table Mountain

and the Cape Peninsula Mountains.

Nestlé South Africa received the

EcoLink Earth Care Award in

recognition for one decade (1985–

1995) of motivation, sponsorship

and support in serving communities

through environmental education

and development.

United Kingdom

Tutbury factory

received a Technology Award from

the East Midlands Electricity Board

for the installation of state-of-the-art

electrical equipment to solve an

effluent disposal problem.

1996

Germany

As part of the compe-

tition on electrical supply and

innovation sponsored by the German

Electrical Suppliers Association,

Herten factory received an award

for the environmentally-friendly

conversion of their CFC refrigeration

plant. Hamburg factory received an

award for reducing fresh well water

consumption through installation

of a closed-loop cooling circuit.

Philippines

Alabang, Aurora

and Cabuyao factories received the

Most Environmentally Friendly

Establishment Award from the

Laguna Lake Development Authority

(LLDA) in recognition for environ-

mental achievements.

Aurora factory received the

Greenest Company Award from

the Department of Environment

and Natural Resources (DENR) in

recognition of its waste minimisation

efforts in the factory.

Nestlé Philippines received

the Anvil Award of Excellence from

the Public Relations Society

of the Philippines in recognition for

company efforts in enhancing

the environmental awareness of

the public.

United Kingdom

York factory won

the President’s Award for Excellence

and the Best Scheme in All

Industrial Sectors Awards from

the UK Combined Heat and Power

Association for achieving savings

in CO

emissions.

USA

Nestlé USA received the

annual Earth Spirit Award from

Fleming Company, Inc. in recogni-

tion of outstanding achievement

in protecting the environment.

1997

China

Shuangcheng factory

received two Advanced Environmental

Protection Enterprise Awards from

the Harbin Municipal Government

and the Shuangcheng Municipal

Government in recognition of signifi-

cant contributions to environmental

protection.

Tianjin factory received the

Outstanding Environmental Protec-

tion Enterprise Award from Tianjin

Economic and Technical Develop-

ment Area (TEDA) Management

Committee in recognition of efforts

in environmental protection.

Malaysia

Shah Alam factory

received the Hibiscus Award from

the Federation of Malaysian

Manufacturers, co-sponsored by

the Department of Environment,

recognising environmental achieve-

ments and efforts by private sector

companies in Malaysia.

Shah Alam factory received the

Cleanliness and Landscaping Award

by Shah Alam City Council for its

good achievements in the area of

industrial hygiene and landscaping.

Mexico

Coatepec factory received

the Certificate for Industrial

Cleanliness from the Department

of Environment, Natural Resources

and Fishing for environmental

preventive and protective actions.

Nigeria

Nestlé Nigeria won

an Environmental Performance

Award from the Federal Environmen-

tal Protection Agency.

Ivory Coast

Abidjan factory

received the National Excellence

Award for Least Polluting Industrial

Site from the Ministry of Housing

and Environment as part of the

National Competition of Excellence

(environment category).

Mexico

Toluca and Tamuín

factories each received the Certifi-

cate for Industrial Cleanliness from

the Department of Environment,

Natural Resources and Fishing for

environmental preventive and

protective actions.

Philippines

Nestlé Philippines

received the Mother Nature Award

from the Pollution Control

Association of the Philippines for

its outstanding achievements in

environmental protection.

Cabuyao factory received the

Outstanding Healthy Workplace

Award – National Champion

from the Office of the President

for achievements in occupational

health and safety.

Cagayan de Oro, Lipa and Pulilan

factories each received a Top 25

Healthy Workplace Regional

Champion Award from the Office

of the President for achievements in

occupational health and safety.

South Africa

Nestlé South Africa

received a Certificate from Trees

for Africa acknowledging its support

for work to improve the physical and

aesthetic quality of life and preserve

the environment in Southern Africa

through the planting of trees.

Nestlé South Africa received the

Achievement Award from Peace

Gardens for its exceptional per-

formance in the field of corporate

public concern.

Philippines

Mandaluyong factory

received the Ecowatch Program

Award (Blue Color Rating) from the

Department of Environment and

Natural Resources (DENR) – National

Capital Region (NCR), the highest

rating given for consistent environ-

mental achievements.

Cabuyao factory received the Safety

and Health Institutional Award

from the Department of Labor and

Employment in recognition of its

outstanding programmes for safety

and health, including protection

of the work environment.

United Kingdom

Dalston factory,

accountable for part of a tributary

of the River Eden that is on its land,

was honoured by designation of the

tributary section as a Site of

Special Scientific Interest (SSSI)

by English Nature. This action

recognised the factory’s responsible

management of an industrial

operation alongside an important

area of conservation.

1998

China

Shuangcheng, Tianjin and

Quindao factories received Advanced

Environmental Protection Enterprise

Awards from their respective

municipal governments for significant

contributions to environmental

protection.

Tianjin factory received the

Outstanding Environmental Protec-

tion Enterprise Award from the

Tianjin Economic and Technical

Development Area (TEDA) Manage-

ment Committee in recognition for

its environmental protection efforts.

USA

Alcon received the Waste

Water Pre-treatment Partnership

Award from the city of Fort Worth,

Texas, Water Department, in recogni-

tion of its pollution prevention and

waste water achievements.

The Perrier Group of America

received the Friends of the Environ-

ment Award from the Environmental

Federation of New England in

celebration of its innovative

achievements in conservation.

1999

China

Shuangcheng factory

received two Advanced Environmen-

tal Protection Enterprise Awards

from the Harbin Municipal

Government and the Shuangcheng

Municipal Government for its

significant contributions to

environmental protection.

Czech Republic

Sfinx factory

received the Safe Enterprise Award

from the Czech Occupational Safety

Office for its environmental and

safety achievements.

India

Samalkha factory received

the Haryana State Safety and

Welfare Award from the Labour

Department, Government of

Haryana, an award intended to

encourage industries to excel

in safety and environmental efforts.

Ivory Coast

Yopougon factory

received the National Excellence

Award for Least Polluting Industrial

Site from the President of Ivory Coast

as part of the National Competition of

Excellence (environment category).

Jordan

Nestlé Jordan Trading Co.

received a Certificate of Appreciation

from the Minister of Water and

Irrigation and the Head of the

Jordanian Environment Co-operation

for efforts in supporting the water

awareness project to conserve the

marine environment in Aquaba.

Korea

Cheong Ju factory received

the Governor of Chung Buk Province

Citation from Chung Buk Province

for outstanding performance in

environmental preservation.

Mexico

Chiapa de Corzo, Lagos de

Moreno, Ocotlan and Coatepec fac-

tories each received the Certificate

for Industrial Cleanliness from

the Department of Environment,

Natural Resources and Fishing for

preventive and protective environ-

mental actions.

Coatepec factory received the

Galardón Antonio Chedaui Caram

Award from the Confederation of

Chambers, Associations and

Council of Enterprises of the State

of Veracruz in recognition of its

leadership and competitiveness as an

ecological company and its environ-

mental protection achievements.

New Zealand

Nestlé New Zealand

received the Award for Excellence

in Environmentally Acceptable

Packaging Systems from the New

Zealand Packaging Council for

achievements in waste recycling.

Israel

Osem-Givol, Osem-Yokneam

and Osem-Sderot factories each

received Trustee of the Environment

Awards from the Ministry of the

Environment and Manufacturers

Association of Israel for environmen-

tal and safety achievements, including

investments in environmental

projects.

Mexico

Tlaxcala, La Piedad, Toluca

and Lagos de Moreno factories each

received the Certificate for Industrial

Cleanliness from the Department of

Environment, Natural Resources and

Fishing for preventive and protective

environmental actions.

Coatepec factory received the

Galardón Antonio Chedaui Caram

Award from the Confederation of

Chambers, Associations and Council

of Enterprises of the State of

Veracruz in recognition of environ-

mental leadership and competitiveness

as an ecological company and its

environmental protection achievements.

Santa María factory received the

National Programme for Naturally

Protected Areas, 1995–2000

Recognition from the Department of

Environment, Natural Resources and

Fishing in recognition of its collabo-

ration with the National Programme

for Protected Natural Areas.

USA

Perrier Group of America

received the Environmental

Stewardship Award from the Water

Resources Association of Pennsyl-

vania in recognition of its achieve-

ments in environmental stewardship,

community relations and sound

water management.

Environment – Progress Report 2000

List of awards

Nigeria

Nestlé Nigeria received

the National Roll of Honour for

Environmental Achievement Award

from the Federal Environmental

Protection Agency for outstanding

contributions toward the promotion

of environmental protection and

natural resource conservation.

Philippines

Mandaluyong factory

received the Dangal ng Pasig Award

from Sagip Pasig Movement for its

exemplary environmental initiatives.

Trinidad

Valsayn factory received

the Prime Minister Trade and Envi-

ronmental Award for advancements

made in waste water treatment.

USA

Alcon received the Pre-

treatment Partnership Award from

the city of Fort Worth, Texas, Water

Department, in recognition of its

achievements in pollution prevention

and waste water treatment.

2000

Canada

Scarborough, Carberry,

Chesterville, Edmonton, London,

Rexdale, Sherbrooke, Toronto and

Trenton factories each received

Industrial Energy Innovator

Awards from the Office of Energy

Efficiency Natural Resources Canada

in recognition of their energy-

efficiency improvement targets and

action plans.

Czech Republic

Marysa factory

received the Safe Enterprise

Award from Czech Occupational

Safety Office for its environmental

and safety achievements.

List of ISO 14001 and
EMAS certified factories

1995

Germany

Neuselters Mineralquelle

EMAS

Weiding

EMAS

1996

Germany

Biessenhofen

EMAS

Fürst Bismarck-Quelle

E and EMAS

Harzer Grauhof Brunnen

E and EMAS

Neuselters Mineralquelle

Rhenser Mineralbrunnen

E and EMAS

Rietenauer Mineralquellen

E and EMAS

Weiding

1997

Canada

Chesterville

Rexdale

Germany

Biessenhofen

Conow

E and EMAS

Soest

E and EMAS

1998

Canada

Carberry

London

Scarborough

Sherbrooke

Toronto

Trenton

Germany

Berlin

Hamburg

Herten

Ludwigsburg

Mainz

Neukirchen

Singen

Korea

Cheong Ju

1999

Canada

Edmonton

Germany

Berlin

Frankfurt

Goch

Karlsruhe

Lüneburg

Neuss

Neustadt

2000

Belgium

Puurs (Alcon)

Denmark

Hjörring

Germany

Lüdinghausen

Schwanewede

Teutschenthal

Spain

Puentecesures

Thailand

Bangpoo

USA

Danville

Fort Worth R&D (Alcon)

Jacksonville

Stoughton

ISO 14001

International standard for environ-

mental management systems

E: External certification

S: Self-declaration

EMAS

Eco-management and audit scheme

of the European Union

Dates correspond

to the first certification

Glossary of terms and abbreviations

Biotechnology

The term “biotech-

nology” as applied to food is defined

as the application of biological tech-

niques to food crops, animals and

microorganisms with the aim of

improving attributes of food such as

quality, quantity, safety or ease of

processing and production.

CFCs

Chlorofluorocarbons.

These substances are considered to

cause depletion of the stratospheric

ozone layer.

EMAS

The Eco-management and

audit scheme of the European Union

(EU). Within the EU, a regulation on

eco-management and audit scheme

was published in 1993 (1836/93).

This regulation allows voluntary

participation of industrial sites in

the scheme. Once a site decides to

apply for registration, it must

respect a whole set of quite stringent

requirements. EMAS is compatible

with, but stricter than, the ISO

14001 standard, since it additionally

requires mandatory periodic site-

related public statements covering

environmental issues, statistics,

policy, programmes and objectives.

A site can obtain an official registra-

tion, after validation of its environ-

mental management system and of

its public statement by government

accredited verifiers. The registration

must be repeated every one to

three years.

FAO

Food and Agricultural Organi-

sation of the United Nations.

Global warming

An increase in

the temperature of the earth’s

atmosphere. It is generally agreed

that recent increases in temperature

are due in part to emissions of

substances like CO

from burning

of fossil fuels, in power stations

and vehicles.

Halons

A generic term for a class

of halogenated hydrocarbons. These

are often used in fire extinguishing

equipment and sometimes as refrig-

erants. They are considered strong

ozone depleting substances.

HCFCs

Hydrochlorofluorocarbons.

These substances are considered to

cause depletion of the stratospheric

ozone layer, but to a lesser extent

than CFCs. HCFCs have often been

used as a replacement for CFCs.

ISO 14001

An international stand-

ard on environmental management

systems developed by the Interna-

tional Standards Organisation (ISO).

ISO 14001 provides a basis for

setting up, auditing and certifying

environmental management systems.

The ISO 14001 standard covers internal

company aspects and does not require

any mandatory data release to the

public. It allows for external certifi-

cation and internal self-declaration.

ISO 14031

An international stan-

dard developed by the International

Standards Organisation (ISO). ISO

14031 supports ISO 14001 by pro-

viding guidance on the design and

use of environmental performance

evaluation.

Modern biotechnology

Modern

biotechnology or gene technology is

the process of changing the genetic

make-up of one organism by trans-

ferring DNA from another organism,

thus modifying and improving bio-

logical systems.

Ozone depleting

substances

Substances, generally

halogenated hydrocarbons, which

can react with ozone (O

) in the

earth’s stratosphere (15-40 km above

the surface), thus causing a reduction

in the amount of ozone naturally

present. This is often referred to as a

«hole in the ozone layer».

Ozone layer

A term used to

describe the naturally accumulated

ozone in the earth’s stratosphere.

This ozone acts to protect the earth’s

surface from ultra violet radiation.

OECD

Organisation for Economic

Co-operation and Development.

Sustainable development

The

concept of sustainable development

was conceived by the then Premier

of Norway, Gro Harlem Brundtland

in 1987. She also led the World

Commission on Environment and

Development which, in its report

“Our Common Future”, defined

sustainable development as

“meeting the needs of the present

generation without compromising

the ability of future generations to

meet their own needs”.

UNEP

United Nations Environment

Programme.

WHO

World Health Organisation

of the United Nations.