FDBusiness.com

Nestle is the winner of the 2011 Stockholm Industry Water Award for its leadership, performance, and efforts to improve the water management in its supply chain.

Awarded by the Stockholm International Water Institute (SIWI), the honour recognises Nestle’s aim to improve the water management and efficiency of its operations. The Swiss company’s water consumption has decreased from more than five litres of water per $1 of sales ten years ago, to less than 1.4 litres today.

The SIWI also praised Nestle’s work with suppliers, particularly farmers. Nestle employs 1,000 agronomists and water experts who work directly with farmers to help them reduce their water requirements, increase crop yields, and minimise pollution.

Water has been an issue of concern and constructive action for Nestle for nearly 80 years – the first waste water treatment plant of the group was built in the early 1930s – and it is one of the three pillars of Nestle’s concept of Creating Shared Value.

The company’s focus on water also gains additional importance and relevance in the context of its work with the 2030 Water Resources Group (WEF-WRG). Chaired by Nestle chairman Peter Brabeck-Letmathe, Nestle plays a leading role.

Together with its partners WEF-WRG, Nestle seeks to address the water issue with a broad-based approach. The problem of freshwater shortage is increasing, and urgently requires comprehensive solutions due to concerns that within 15-20 years, water shortage will lead to huge shortfalls in staple food grown by farmers.

The WEF-WRG offers governments a set of analytical and practical tools to overcome shortfalls and to re-allocate water in case of new demand. Projects are underway in Pakistan, South Africa, Jordan, Mexico, and most recently, in Mongolia. The main element of the toolbox is the water cost curve – a fact-based, comprehensive combination of demand side and supply side levers to bring overall water withdrawals in individual watersheds back into line with natural renewal.

“We have identified water as the biggest challenge for future food security, and beyond that, for economic growth,” says Peter Brabeck-Letmathe. “This is probably the most prestigious award in this area for a company – and it will strongly encourage us to continue with our efforts.”