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Nestle Ar 2014 CSV PDF
Nestle Ar 2014 CSV PDF
01 MD’s Message
06 Nutrition
12 Water
16 Environmental Sustainability
24 Rural Development
34 Our People
MD’s Message
In last year’s report, I was very have also replicated the Sheikhpura Kero Aitemaad
proud to share with you our Creating National Highways and Motorways Kero Aitemaad “Believe in Yourself”
Shared Value (CSV) philosophy Police Training School in Karachi. is a forum designed to develop and
together with a few examples of empower career aspiring young
ongoing projects. The first batch (36 students) women. We have covered Karachi,
of the “Executive Certificate in Lahore and Islamabad so far and had
This year, I am equally proud Agribusiness Management” has a fantastic turnout of approximately
to share with you that we have graduated from Lahore University 300 females.
achieved and in some cases, of Management Sciences and the
exceeded what we had set as second batch has started early 2015. 2014 was a very successful year for
targets for 2014. our business, as you will witness
As you can see, 2014 was a through our Annual Report and also
The Nestlé Healthy Kids Programme successful year for CSV but we for CSV. The more we create value
has nearly doubled in size. We have not stopped there; we have for the people and the economy of
also launched the Healthy Women introduced two major additional
this country, the more we can share
Programme successfully, designed initiatives: this value created with the society
to raise awareness on how nutrition at large. This is at the core of our
impacts young women and their Water Stewardship business philosophy and part of our
next generation. • We have partnered with World DNA.
Wide Fund For Nature - Pakistan
We assisted more than 100 to support an improvement in
commercial dairy farmers and the sustainability of production
developed the capacity of 27 animal and consumption practices of
feed manufacturers in Punjab. We water usage
have also trained more than 12,000 Magdi Batato
farmers. • We have established 7 clean
Managing Director
drinking water facilities located
We have trained more than 600 new throughout Punjab providing free
drivers on “Safe Driving”, bringing access to clean drinking water to
the total to 15,000 drivers amongst 35,000 people everyday
which 4,000 are Nestlé drivers. We
Water Rural
Development
Environmental
Sustainability
23
billion
Paid to farmers in form of
milk purchases
27 20
billion
billion
105
Raw and Packaging PKR Retailers, Distributors,
material Media Utilities, etc.
billion
24 11
billion
billion
10
billion Others (Royalty,
ent
nm Depreciation, etc.)
ver
tax
es to
go
07
oy ee
s
billion
07
billion
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em
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ie
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Given the nature of our activities to the UN Global Compact for operations to embedding ethical and
and our ambition to be the world’s Ethical Business, the Company transparent business practices, CSV
leading Nutrition, Health and is committed to the stakeholders is entrenched in the entire value
Wellness (NHW) Company, Nestlé and the communities for mutual chain. Based on strong foundations
has identified focus areas where growth and sustainability. From of compliance and sustainable
it can optimise the creation of offering quality products to the business practices, this is our way
shared value. In line with this global consumers to providing a fair of doing business.
vision of caring and sharing and and diverse work environment
“Enhancing the Quality of Life of the for our employees; from capacity The key focus areas for Nestlé
People of Pakistan”, Nestlé Pakistan building and knowledge transfer Pakistan’s Creating Shared Value
continues to engage with farmers to our partners and raw material (CSV) programmes are as follows:
as well as rural and underprivileged providers to implementing
communities in its areas of responsible sourcing models into • Nutrition
operations. our relationships; from supporting • Water
under-privileged communities • Environmental Sustainability
Our inspiration is governed by to working with small farmers; • Rural Development
the Nestlé Corporate Business from enhancing sustainability and • Our People
Principles. Being a signatory environmental friendliness of our
Creating
Shared Value
Sustainability
When Rubia Ibrar first learned about the two of them received books
the Nestlé Healthy Kids’ Programme that told them why it was essential
at the Silver Oaks School, to eat balanced meals and what
Rawalpindi, she wasn’t sure how constitutes such meals.
it would help her and her children.
Like all responsible mothers, she “My brother and I help Mama out in
thought she knew everything there the kitchen every day now because
was to know about eating three we can teach her what we learn
meals a day. It was only when her about healthy and nutritious food in
two children – Meerab and Abdul school”, explained Meerab.
Wasay – altered their eating habits
Thanks to the children’s participation
and started educating Rubia about “We love the colorful books too…”
in the Nestlé Healthy Kids
the importance of a healthy diet that added Abdul Wasay.
Programme, the family is now
she realised the Nestlé Healthy Kids
mindful of their meals and prefers
Programme was changing their lives “My children now prefer home
hot, fresh and thoroughly cooked
for the better. cooked food and lunch”, says Rubia,
food instead of cold, stale and over
who admits that she herself has
or under cooked meals.
For Meerab, the most important learnt a lot while her children were
thing the siblings learned during the working on school projects for the
course of the programme was their programme.
nutritional requirements. In addition,
Access to clean drinking water communities, Nestlé Pakistan has The Company continuously
is a key development challenge established 7 clean drinking water endeavours to improve its
for Pakistan. In addition to basic facilities. Located in Muzzaffargarh, processes and systems to reduce
hygiene, clean drinking water is Kot Addu, Khanewal, Kabirwala, its water footprint and carbon
a key ingredient in safeguarding Sheikhupura and Bhatti Dhilwan, footprint and also engages with the
one’s health and wellness. As a part these facilities provide clean drinking community and external institutions
of our Community Engagement water to approximately 35,000 to support water and environmental
Programme and to support local people every day. initiatives.
Nestlé has partnered with World cooperation of both parties to Nestlé Pakistan has also completed
Wide Fund For Nature (WWF) - support an improvement in the a Water Resource Review in a
Pakistan to implement two projects sustainability of production and 10-kilometre radius around our
aimed at positioning Nestlé as a consumption practices, with a Sheikhupura Factory. This study has
water steward. The partnership particular focus on water use and been conducted by NESPAK.
began with the signing of a water management in Nestlé plants
Memorandum of Understanding and production units. As part of its
(MoU). The purpose of this MoU is commitment to water stewardship,
to create and maintain an amicable WWF-Pakistan will launch different
working relationship between projects in partnership with Nestlé
WWF-Pakistan and Nestlé Pakistan Pakistan to improve the water usage
on water stewardship at the Indus of Nestlé (within the premises and
basin level and develop a city-wide supply chain) such as water footprint
partnership for sustainable water management, implementation of
use and water stewardship in the Alliance of Water Stewardship
entire region. This MoU assures Standards etc.
P Installation of a 400 m 3
Bio-Gas plant at Sarsabz Farm
Water Operational
Efficiency
Between 2009 and 2013, total
water consumption per tonne of
product was reduced and water
use efficiency improved by 22%. Society Environment
Our water consumption per tonne
of product was further reduced by
4% in 2014 compared to the year
2013. Nestlé Pakistan is aiming
at utilising the treated water by
having pronounced water treatment
systems and recycling.
Targets for the year were met i.e. 3% energy and 4% reduction in water
5,308
continues to work on reducing 5000
1,119
1,079
pricing, resulting in benefits for the
952
1000
596
596
406
consumers.
151
253
84
73
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total
• Paper and Board: functionality of packaging or the powders and cereals. The
quality of product. biggest initiative in this regard
22 tonnes of paper and board
was the optimisation of the
was saved by the optimisation
• Plastic Laminates: sealing layer of the laminates.
of corrugated cases. It was
Many trials and studies were
achieved through re-designing As much as 231 tonnes of
conducted to ensure that this
the cases for dimensions and plastics, mainly polyethylene,
optimisation should not have
material combination without was saved by optimising the
any negative impact on the final
any compromise on the structure of laminates for milk
quality of our products.
0
• Induction of new heavy capacity
2009 2010 2011 2012 2013 2014 2015
vehicles (50ft, DD Eco liners)
• By introducing HUB model in • By increasing road safety/
South, having positive impact vehicle management Highest ever density: 16
on vehicles utilisation and less awareness in Pakistani drivers Litre of milk collected /
diesel consumption through NH&MP training KM of vehicle travelled
sessions.
7.32 0.0363
0.0357 18 17.2
0.035
7.07 0.035
0.0335
7
16
14.88
0.030
6.19
14
6
5.62
0.025
12
5 0.020 10
2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014
Energy Savings
• Optimization and reduction of pressure in compressed air system
1 • Optimization of AHU fan speed 533592 KWh
• Chilled water system improvement
• Insulation Duct and Leaks EGRON 1
• Optimization of Steam trap operations and cross validation
• Reduction of final rinse soft water in Chilled dairy CIP
• Temperature reduction of acid cleaning Evap 1 and 2 1311794 KWh
2
• Reduction of final and intermediate rinse RW in Tetra filler CIP
• Reduction of final rinse AIC RW in Tetra filler CIP
• AHU optimization by controlling Enthalpy of outside air
• Reduction of final RW in STD 1
• Reduction in energy consumption in factory cooling towers
• Improve efficiency of AHU
• Boiler Operations Optimization and Fuel consumption reduction
• Reduction in Compressed Air Leakages at milk powder plant 5007456 KWh
3
• Optimizing use of Waste Heat Recovery Boiler
• Reduction in energy by increasing steam recoverable condensate
• Reduction in Compressed Air consumption at STD
• Reduction in Steam Consumption at powder plant
• Replace fluorescent light with LED to save energy and go green
• Improved the RO recovery
• Install a VFD on final rinsing water pump
• Stopped the Per Acetic Heaters 180,556 KWh
4
• Optimised the flushing time of well pump
• DMAIC on Ozone stoppages reduction by 50 %
• Underground tank filling line replace with higher diameter for fast filling and saving water from
drain idle
Water Saving
• Tetra Filler recovery project (on top of IOPL)
• Optimization of Steam trap operations and cross validation
• Reduction of final rinse soft water in Chilled dairy CIP
72,601 m3/year
1 • Reduction of final and intermediate rinse RW in Tetra filler CIP
• Reduction of final rinse AIC RW in Tetra filler CIP
• Reduction of final RW in STD 1
• Reduce and Reuse of RO Sealing water at Egron-1 Evaporative hall
• Reduction in raw water by utilizing treated water, canal water for gardening
• Use of RO Reject water for tanker washing
2 64,240 m3/year
• Use of RO rejected water at factory social block
• Use of cow water for drum washing activity
• Under ground tank filling line replace with higher diameter for fast filling and saving water
from drain idle
• Tumbler Modification
3 5,143 m3/year
• Rinsing Over flow shift to External washer tank
• RO recovery from 79% to 83%
• DMAIC reduction on water losses at filler
• Reduction in usage of water during CIPs
• Re-use of RO Flush water
4 • Reduction in overflows 118,650 m3/year
• Optimization of backwash sequence
• Installation of 2 x 110 m3/hr, 10 micron skid to avoid water losses during filter change
2.170
2.074
2.043
1.972
1.906
1.890
2.0
1.5
1.0
0.5
0.0
Water Consumption
(m3/ton)
3.719
4.0
3.483
3.329
3.300
3.340
3.210
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2009 2010 2011 2012 2013 2014
More than 600 drivers from the government agencies are engaging
Company were trained at the with the institute and benefitting
institute during 2014. This brings from it.
the total number of drivers trained
under the Drivers Safety Programme The Company is in the process of
to more than 15,000 drivers, which replicating the existing initiative
include around 4,000 Nestlé drivers. in Karachi in partnership with
NH&MP which will focus on safe
It is heartening to see the positive driving trainings for drivers in the
impact of the Nestlé’s Drivers south. The new training facility
Training Programme at various will impart safe driving trainings
levels. The multifaceted impact by the trained staff of NH&MP for
of the programme extends the public and corporate sector in
beyond its envisaged scope Sindh and Balochistan.
and target audience, given that
more organisations including the
In 2014, Executive Certificate in endeavour which was launched to “I am quite proud of this
Agribusiness Management (ECAM) provide impetus in the agricultural collaboration since it is aimed at
– a programme offered by Lahore sector pivotal for economic growth, bridging the gap between business
University of Management Sciences development and alleviation of knowledge and farming techniques,
(LUMS) in collaboration with Nestlé poverty in Pakistan equipping people with a complete
Pakistan - marked the completion of toolkit for success. Trained
a successful first year. LUMS and Nestlé Pakistan will professionals will ensure Pakistan
continue their collaboration for can compete with other agricultural
The first batch of 36 participants, ECAM during 2015. economies of the world.”
including 15 Nestlé participants, of
Magdi Batato, Managing Director Nestlé
the year-long modular certificate “Agriculture, if utilised to its full
Pakistan
programme included executives potential, can go a long way in
from industries including dairy, helping alleviate poverty. There is
“ECAM is a natural conglomeration
fertilizers, livestock, exports and tremendous opportunity for us to
of ideas, bringing professionalism,
processing as well as farmers. improve the skills at farm level by
best management practices and
teaching the farmer. There is so
high technology to the agriculture
According to a World Bank report, much to learn and there is enough
sector.”
national average yields of major of knowledge available. The sky is
Dr. Sohail Naqvi, Vice Chancellor LUMS
crops like wheat and rice in Pakistan the limit.”
are only 55% of progressive farmer
Syed Babar Ali, Pro-Chancellor LUMS and
yields, the highest achievable Member Board of Directors Nestlé Pakistan
yields in the country. ECAM is an
Our Chaunsa Project is a relatively are equipped with skills required mango pulp and the small farmers
new venture for which we have so they can take advantage of new will have better access to markets
partnered with Australia-Pakistan opportunities in the mango farming where they can sell their mangoes
Agriculture Sector Linkages sector, including canning, pulping at competitive prices.
Programme (ASLP) to train and build and exporting. These best farm
the capacity of Chaunsa mango practices will help increase the yield In 2015, we plan on expanding
farmers. and improve the quality of Chaunsa the Programme further by taking
mangoes. other stakeholders on board.
In 2014, we expanded the reach of
the initiative by including farmers The ultimate goal of the Chaunsa
from Muzaffargarh and Rahim Yar Project is to make these small
Khan in addition to Multan and farmers a part of Nestlé Pakistan’s
Khanewal. The identified training value chain in the coming years.
areas include pre- and post-harvest This will mean a win-win situation
horticulture, plant propagation and for both the parties. Our Company
varietal assessment. Small farmers will enable responsible sourcing of