Water is one of the critical environmental factors of ESG (Environment, Social, and Governance). Fresh and clean water is increasingly endangered despite being considered a plentiful renewable resource mainly due to population growth and economic activity leading to an increase in water demands and pollution.
According to United Nations, if current consumption and production patterns do not change, there will be a 40% shortfall in water supply by 2030. Companies are expected to face increased scrutiny such as limits on water withdrawal and tight regulations over their water use as global water resources face increased stress.
Groundwater is withdrawn by industries such as manufacturing, mining, oil and gas, energy and utilities, and construction. Apparel and food & beverage industries are highly dependent on groundwater through supply chains. According to Aquastat, 19% of global freshwater withdrawals come from industry and energy.
In terms of water withdrawal, the beverage and bottled mineral water sectors need to be careful because groundwater is a raw material for them. Globally, food and beverage companies face disputes with local communities over the amount of groundwater that can be withdrawn without depleting local resources.
Nestle SA (Nestle) is a manufacturer and marketer of food products and beverages. The company's product portfolio comprises baby foods, bottled water, cereals, chocolates and confectionery, coffee, culinary products, chilled and frozen foods, dairy products, nutritional products, ice cream, and pet products. Its major brands include Aero, Alpo, Milkybar, Nestle Ice Cream, Cerelac, Nescafe, Nespresso, Nestea, Milo, Maggi, Buitoni, Cailler, Movenpick, Freshly, Purina, Boost, Gerber, and Kit Kat.
In 2021, Nestle withdrew 98 million cubic meters of water, a decrease of 15% over 2020. The total water consumed by Nestle in 2021 was 35.4 million cubic meters which increased by 42% over the previous year.
Among Nestle’s product categories, nutrition and healthcare withdrew 8.4 cubic meters of water per tonne of the product followed by powdered and liquid beverages (5.9 cubic meters per tonne of product).
Nestlé Waters has plans to use its expertise to strive toward the regeneration of local water cycles through the implementation of more than 100 projects for its 48 sites by 2025. Nestle also wants to achieve good water resource management throughout its operations and agricultural supply chains.
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