Corporate presentation

Water:Impacts, Risks and Opportunities in our Supply Chain Vevey, 22 March 2012Carlo Galli

1Setting the scene: Freshwater availability vs. demandFrom: WEF Water Resources Group (2009): Charting our Water Future

2Impacts: its about volumes.The Water Footprints of F&B businessFrom: Hoekstra et al. (2011): The Water Footprint Assessment ManualFarmerRetailerFood processerVirtualwaterflowVirtualwaterflowVirtualwaterflowgreenandbluewaterusegreywater Consumerbluewaterusegreywater bluewaterusegreywater bluewaterusegreywater

3Impacts: Consumptive Water Use for Nestl agricultural raw materialsDRAFTBlue CWU (irrigation) (~ 2.9 billion m3) Blue CWU of 460 Nestl factories = 0,05 billion m3Total CWU (rainwater + irrigation) (~ 44.8 billion m3)

4Risks: its about locations.

5Working with farmers in our value chain

6SAIN Case India Moga

Sustainability of fresh milk production is about...rice

Intensification of dairy farming

Better irrigation and cultivation practices for rice

SRI trials in Punjab

7SAIN Case Vietnam Dak Lak

Coffee farming is booming

Unsustainable practices

Improvement of water use efficiency and fertilizers management

Scale up initiative with key stakeholders

8Collective action: SAI Icrisat India

Power of collective food industry approach

Collective farmer approach to water management

Better irrigation scheduling

Work on supply and demand side

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