UN Economic Commission for Europe

‘Policy Maker Meets the Engineer’ Workshop

Geneva, 18 January 2017

Energy Efficiency at Nestlé

Peter Jaggy, Head of Corporate Engineering

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Nestlé in Numbers

Peter Jaggy, Nestlé

Environmental impact:

• Energy consumption: 94 PJ

• Water consumption: 140 million m3/year

• CO2 emissions: 7 million tons/year

• Waste water discharge: 82 million m3/year

Nestlé Group 2015:

• Group sales: CHF 88.8 billion

• Trading operating profit: CHF 13.4 billion

• 436 factories in 85 countries

• 335’000 employees

• Capital Investment approx. CHF 4 billion / year

1.8

1.9

2.6

2.7

2.9

3.0

3.9

4.8

7.0

25.3

Canada

Italy

Philippines

Mexico

Germany

United Kingdom

Brazil

France

Greater China Region

United States

Our Top 10 markets (sales in CHF billion)

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Environmental and Societal Sustainability are Business-critical for Nestlé

Agricultural Raw

Materials

BiofuelDeforestation

Global Warming

Salt

Processed Food Renewable Energy

Ob

esit

y

Water ScarcityDesert

ific

ati

on

Food

Waste

Ca

rbo

n t

rad

ing

Creating Shared Value

“For a company to be successful over the long term and create value

for shareholders, it must create value for society.”

Peter Jaggy, Nestlé

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Environmental IndicatorsIn

de

x Energy

Waterwithdrawal

GHGemissions

Water fordisposal

Productionvolume

20

40

60

80

100

120

140

160

2005 2007 2009 2011 2013 2015

+42%

+7%

-14%

-12%

-62%

Peter Jaggy, Nestlé

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Environmental Indicators

Energyconsumption/t

Waterwithdrawal/t

GHGemissions/t

Water fordisposal/t

Ind

ex

20

40

60

80

100

2005 2007 2009 2011 2013 2015

-29%

-43%

-41%

-75%

Peter Jaggy, Nestlé

Peter Jaggy, Nestlé

Nestlé’s Energy Consumption Mix

Biomass & Solar8%

Grid electricity from renewable

5%

Green Power3%

Grid electricity from non renewable

22%

Purchased Steam & Hot Water3%

Natural Gas43%

Petroleum12%

Coal4%

Thermal Energy70%

(8% Renewable)

Electrical Energy30%

(8% Renewable)

RenewableEnergy (15.5%)

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Setting Priorities the Nestlé Approach: Going after Largest Users first

Peter Jaggy, Nestlé

Cumulative Energy Consumption 2014 Cumulative Water Consumption 2014

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Energy Target Setting (ETS) Methodology

Two week energy & water site assessment with a team of experts to issue an action plan with

energy & water savings projects to be implemented

A clear methodology: Specific Milestones during the two weeks:

Peter Jaggy, Nestlé8

Peter Jaggy, Nestlé

ETS team work with our Knowledge partners who participate in the site assesments

ETS Methodology

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Peter Jaggy, Nestlé

Renewable Energy - Strategy and Drivers

LESSUsage

MORERenewable

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Renewable Thermal Energy

What we do:

• Grounds burned in 23 Nescafé factories

• 15 factories burn biomass (Wood, saw dust,

coconut shells), ensuring sustainability

meaning:

o Not competing with Food chain

o Not contributing to deforestation

o Limited transport distances (CO2 impact)

Peter Jaggy, Nestlé

Biomass Biofuel

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Benchmarking Factories, Unit Operations and Equipment?

Perfect design based on the Best Available Technology working without losses. (*)

Less efficient current technology used in Nestlé including all operational losses. (*)

The nexus D-E represents the mid point between Min-Max. (*)

Peter Jaggy, Nestlé12

Benchmarking Factories - Soluble Coffee Business

Peter Jaggy, Nestlé

Energy Dashboard CO2 Dashboard Water Dashboard

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Benchmarking Factories - Soluble Coffee Business- Roadmap

Peter Jaggy, Nestlé

Reference 2010

Energy Reduction

Opportunities Ambition 2020 2014

from 39 GJ/T in 2010 to 7 GJ/T in 2020

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Benchmarking Unit Operations - Spray Drying- Energy Dashboard

Energy Rating• Energy GJ/t final product

• Includes:• Air heater primary fuel

• Primary fuel for steam

• Electricity consumption of directly related equipment

• Electricity for any cooling uses

Peter Jaggy, Nestlé15

The Role of the Regulator

Peter Jaggy, Nestlé

• Create an ‘even’ playing field:

-No subsidies for ‘non-renewable’ power or thermal energy

• Create the future infrastructure:

-Enabling micro grids

-Competitive landscape

• Focus on CO2:

-Penalize / discourage greenhouse gas emissions

-My waste may be your treasure

• Subsidize R&D in ‘efficiency’

• Remove hurdles and administrative barriers

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