1 Name of chairman

Labelling of food products :based on LCA or... what else?

Pascal Gréverath

Head of Environment

13.03.08, Lausanne

34th Discussion Forum

Life Cycle Assessment vs. CO2 Footprint

2 Name of chairman

• At Nestlé, our aim is tocreate value that can besustained over the longterm by offeringconsumers a wide varietyof high-quality, safe foodand beverage products ataffordable prices.

• Nestlé will provideconsumers with helpful,understandable, andrelevant information aboutits products.

3 Name of chairman

Source: Rob Kerr, GlobeScan,Societal Trends Impacting the Global CSR/Sustainable Business Context:

Implications for Branding Sustainable Brands Conference, New Orleans, Sept. 2007

4 Name of chairman

Environmental impacts are diverse and arisealong the entire product value chain

- Water- Energy

- Soil- Water- Pesticides/ herbicides- Fertilisers- Energy

- Feed/grazing land- Water- Antibiotics- Energy

- Water- Cleaners/ sanitisers- Energy

- Paper/ cardboard- Plastic- Glass- Metals- Energy

- Transport fuels

Agriculture Packaging Distribution Consumption

Livestockproduction

Processing

- Soil loss- Contaminated runoff- Harm to non- target species

- Effluent/ Sludges- Food residues- Air emissions

- Solidby-products &waste

- Greenhouse gas emissions- Other transport emissions

- Used packaging- Organic residues- Effluent

- Greenhouse gas emissions- Manure management problems

5 Name of chairman

The Nestlé Policy on the Environment

Nestlé commits to:

! Compliance with applicableenvironmental legislation andNestlé's own internal rules

! Environmentally sound businesspractices

! Continuous improvement ofenvironmental performance

! Appropriate information aboutcompany's commitment to theenvironment

6 Name of chairman

Eco-efficient manufacturing

0

50

100

150

200

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Index

Production volume Energy consumption Total water withdrawal

Total water discharge Greenhouse gases

Energy and waterconsumption reduced by 45%and 59%,respectively, per tonne ofproduct

Paper & Board41%

Plastics & Laminates

15%

Glass23%

Metal21%

1991 to 2007, 326'000 tonnes of packagingmaterials saved representing 17'690'210 GJ and1 mio t CO2 or 310'000 passenger cars notdriven during 1 year

7 Name of chairman

Our Commitment to EnvironmentallySound Business Practices (extract)

We commit ourselves to:

• Open dialogue with our suppliers, staff,customers, consumers, and the community onproducts and activities related to environmentalissues;

• Accurate environmental claims based on scientificevidence;

• Encouraging the development and diffusion of

environmentally friendly technologies (Principle 9of United Nations Global compact's)

8 Name of chairman

There are different ways to communicatewith consumers

1. Internet

2. Phone

3. Labelling,...

9 Name of chairman

The AAA SUSTAINABLE QUALITY™ Program isa set of practices which together enable farmersto benefit directly from the cultivation of highestquality coffees respecting sustainability principles

Online information to consumers :Nespresso

www.nespresso.com

10 Name of chairman

Development of Q&A Hotline Manualbased on LCAs

• What are comparable products in terms of material andenergy/ecobalance?total environmental impact of the NESCAFÉ Dolce Gustocapsule represents only half of the impact of this alreadyenvironmentally performant yoghurt cup.

• How does an NESCAFÉ Dolce Gusto beverage compare vs. a similarbeverage prepared traditionally?the environmental impact of the traditional preparation of the milk wouldbe slightly lower, by a few percents, than when using an NESCAFÉ DolceGusto milk capsule.

• Why don't we use alu instead of plastic?Assuming that as many plastic components as possible in the NESCAFÉDolce Gusto capsule would be replaced with Aluminium components, thisAlu based capsule would be environmentally equivalent to the currentNESCAFÉ Dolce Gusto capsule provided that every second Alu basedcapsule would be recycled, which is close to the current situation for sucha type of product in Switzerland.

11 Name of chairman

On-pack labellingDairy Box

12 Name of chairman

Environmental claim substantiated by apeer reviewed LCA

13 Name of chairman

FSC logo to show that “Garoto” shares one concernwith many of its consumers, which is the care of theenvironment, well-being and people quality of life.

To have partners who share a vision of the future,awareness of its social role is important for “Garoto”.This is why we print the stamp of certification FSC–Forest Sterwardship Council – (of internationalcredibility) on our traditional yellow box. This assuresthat raw materials (paper and cardboard) used tomanufacture “Garoto” boxes come from certifiedforests and appropriate producers with normsand standards environmentally correct, sociallyfair and economically viable.

To defend the Planet is a matter of attitude andalso good choices.

A reason to be proud of us is to have partnerswith FSC certification. To maintain sustainability,to select future responsible partners and to takecare of future generations: This is the choice of“Garoto”.

Forest Stewardship Council logo

14 Name of chairman

On-pack labelling

Fairtrade Nescafé

15 Name of chairman

Source:

SWISS FOEN, 2006

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

500%

Petrol

Wh

ey (

Sw

itze

rla

nd

)

Su

ga

r ca

ne

(B

rasil)

Sugar

beet

(Sw

itze

rla

nd

)

Ma

ize

(S

witze

rla

nd

)

Die

sel

Used e

dib

le o

il

(Euro

pe)

Soya o

il (U

SA

)

Rapeseed o

il

(Sw

itze

rla

nd

)

Natu

ral G

as

No

n t

rea

ted

wo

od

wa

ste

Gra

ss (

an

ae

rob

ic

ferm

enta

tion)

Gre

en

wa

ste

(com

posta

ble

)

Raw material consumption and w aste

treatement

Water and soil pollution

Air pollution (w ithout GHG)

Air pollution by Green House Gases

Petrol substitute, ethanolDiesel substitute,

methyl esterNatural Gas substitute,

methane

Careful with agrofuel !

16 Name of chairman

Source:

SWISS FOEN, 2006

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

500%

Petrol

Wh

ey (

Sw

itze

rla

nd

)

Su

ga

r ca

ne

(B

rasil)

Sugar

beet

(Sw

itze

rla

nd

)

Ma

ize

(S

witze

rla

nd

)

Die

sel

Used e

dib

le o

il

(Euro

pe)

Soya o

il (U

SA

)

Rapeseed o

il

(Sw

itze

rla

nd

)

Natu

ral G

as

No

n t

rea

ted

wo

od

wa

ste

Gra

ss (

an

ae

rob

ic

ferm

enta

tion)

Gre

en

wa

ste

(com

posta

ble

)

Raw material consumption and w aste

treatement

Water and soil pollution

Air pollution (w ithout GHG)

Air pollution by Green House Gases

Petrol substitute, ethanolDiesel substitute,

methyl esterNatural Gas substitute,

methane

Careful with agrofuel !

CO2 footprint alone can be misleadingbut LCA can be useful to provide reliableinformation