Climate change is one of the biggest threats to our society, and to the future of our business. We are committed to reducing greenhouse gas (GHG) emissions from our operations by improving energy efficiency, switching to cleaner fuels and investing on renewable sources, such as solar energy.
Our commitment and roadmap
We have committed to reduce our emissions across the value chain by 20% by 2025, 50% by 2030 and achieve net zero emissions by 2050.
To achieve this:
We will use 100% renewable electricity in our sites, including our factory, warehouses, logistics and offices by 2025
We will make our distribution networks and warehouses more efficient by optimizing routes to reduce fuel consumption and to lower carbon emissions
We are evaluating our products to have a better environmental footprint. This includes assessing the use of more climate-friendly ingredients and making relevant brands carbon-neutral.
Over the last 10 years, we have reduced our energy use by 16% and greenhouse gas emissions by 8%
Previously, our waste plastic materials were incinerated by an incinerator at our factory premises, which heavily consumed diesel. We have now replaced our incinerator with a shredder that shreds packaging material into tiny particles which are then sent to a geo-cycling plant. We send our solid waste to INSEE for energy recovery. This movement has helped us save 10,000 litres of diesel per annum, also reducing greenhouse gas emissions by 27,286 kg (CO2) a year.
Inert gas production
We have also changed our inert gas production process (inserting nitrogen in our air tight packaging) from burning oxygen to a Pressure Swing Absorption (PSA) process, avoiding CO2 emissions and eliminating our diesel usage.
Environmentally friendly electrical batteries
We also use environmentally friendly electrical batteries instead of Liquefied Petroleum Gas (LPG) or diesel at strategic and sensitive areas in the factory (i.e. fork lifts), to avoid emissions.
Uninterrupted Power Supply
Our factory is highly dependent on the continuous supply of electricity to continually operate the machinery. Failure in power supply would impact the manufacturing process adversely - any product that does not follow a normal manufacturing process would have to be disposed of, wasting a large amount of our resources. To ensure that our machines are able to run continuously even during a power failure, we began using two 1,250 KVA diesel power generators full time. However, the cost of generating in-house electricity (running the generators) full time was higher than the cost of electricity supplied by the CEB. To address this, we installed a centralised UPS (Uninterrupted Power Supply) system, similar to the emergency power systems used for computers. The system allows our machines to work uninterrupted even during a power failure for a limited time, buying us enough time to switch to the diesel generators. Our UPS system allows us to reduce our diesel consumption by 864,000 litres a year, energy consumption by 2.5% a year and CO2 emissions by 11 tonnes a year.
Uninterrupted Power Supply System
Every day, we transport tonnes of products to our customers. Much of this distribution relies on partnerships with third-party logistics providers. They help us uphold our environmental performance and improve the efficiency of our network by reducing mileage, fuel consumption, greenhouse gas (GHG) emissions, noise and congestion.
Below are some of our key initiatives in this regard:
- Optimising distribution networks and route planning across our operations - The distribution process has been rationalised in a manner where larger lorries carry goods to the bigger distributors. The smaller distributors are serviced through these large distributors using smaller vehicles. This optimises the use of large vehicles, which consume more fuel, and thus also reduces emission levels. We also ensure that we have no empty vehicles in transit at any given point.
- Using roadworthy vehicles - We have also made a conscious effort to ensure that the vehicles used for transporting company goods are road worthy and not an environmental liability. Accordingly, each vehicle for the transportation of goods are thoroughly checked.
- Expanding driver training to address both safety and environmental efficiency - we launched ‘Project Suraksha’ to help our Agricultural Service Officers (who work with our dairy farmers) and also milk bowser drivers drive safely and more efficiently. The manner in which vehicles are driven plays a large part in how much fuel is used and the amount of CO2 emitted. Training therefore is extended to creating awareness of heavy acceleration and braking as they have the biggest negative impact on fuel consumption. Practical lessons involve developing Nestlé lorry drivers’ greater awareness and anticipation skills, and encouraging them to keep revs down and make fuel-efficient gear changes.
Green Distribution Center
We redesigned our Distribution Center (DC) so it would be more environmentally friendly, helping use less natural resources for our operations. The DC offers the following unique features -
Green Distribution Center
- Powered using only solar energy (215 solar cells), helping us save the same amount of energy 330 households would use in a year.
- Illuminated 100% by 40 sky lights, helping us save the same amount of energy 125 households would use in a year.
- Ventilated only via natural ventilators, helping us save the same amount of energy 228 households would use in a year.
- Generates hot water for factory operations through solar thermal heaters, helping us save the same amount of energy 24 households would use a year.
- These initiatives have helped us reduce CO2 emissions by 47 tonnes and diesel consumption by 20% per annum. Our green DC was also awarded a gold rating in 2015 by the Green Building Council of Sri Lanka.
We also have a de-superheater that recovers energy emitted from our chiller plant and reuses it to heat up boiler feed water, saving furnace oil by 42 tonnes per year and reducing greenhouse gas emissions by 130,405 kg (CO2) annually.
We have replaced our fluorescent lamps with LED lamps, helping us save 5,480 GJ of energy per annum equivalent to electricity used by 240 households.
Our diesel generator, boiler and air heater, which have the potential to pollute air, are successfully controlled by the monitoring of fuel consumption and usage, stringent operational control procedures, periodic overhauling and CDM (Consequence Driven Maintenance) activities.