Nestlé and Its Response to Megatrends in Water

Abstract

Over the past 15 years, several water megatrends have accelerated and been accentuated, challenging societies and economies across the world. These include growing water shortages stemming from overuse, increasing risk of political and/or societal tensions around water access and use, heightened risks for the water supply security of private companies, and, last but not least, the deterioration of water infrastructure (municipal, other) due to insufficient investment. Water is not a new concern for Nestlé. From the very start of Nestlé’s industrial activities, 150 years ago, water has been central to the company. Today, three concerns are at the forefront: will there be enough water to grow the food needed both to feed people directly and as an input for its production; will there be the necessary water security (supply and quality) for the operations of its factories; and, finally, will there be safe water for its consumers to prepare their meals? As these new megatrends were emerging, the company took a closer look at its overall water strategy. This resulted in a comprehensive water stewardship approach covering four strategic impact areas—factories, watersheds, agriculture supply chain and communities—and including collective action such as joining and setting up overarching alliances amongst stakeholders in local watersheds and providing support for the strategic approaches of governments to address water challenges, particularly overuse, in a relevant and cost-effective manner.