{"id":11485,"date":"2016-11-04T13:16:38","date_gmt":"2016-11-04T17:16:38","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/nestle-keeps-climate-change-cool\/"},"modified":"2016-11-04T16:25:09","modified_gmt":"2016-11-04T20:25:09","slug":"nestle-keeps-climate-change-cool","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/nestle-keeps-climate-change-cool\/","title":{"rendered":"Nestl\u00e9 keeps climate change cool"},"content":{"rendered":"

Nestl\u00e9 keeps climate change cool <\/strong><\/p>\n

How is the world\u2019s largest manufacturer of food and beverage products reacting to global food security concerns caused by climate change?<\/p>\n

 <\/p>\n

\"Source:<\/p>\n

Source: Nestl\u00e9 http:\/\/www.nestle.com\/csv\/environmental sustainability\/climate-change<\/p>\n

How will Nestl\u00e9 be impacted by climate change?<\/strong><\/p>\n

Nestl\u00e9\u2019s diverse portfolio of global brands each face risks as temperatures rise and climate patterns change throughout the world. The corporation\u2019s entire operating model will be impacted by the agricultural nature of the products they sell. Nestl\u00e9 is keenly aware that their business will face risks as agricultural yields decline, farming and productive land shifts geographically, and increasingly destructive weather events (drought, floods, storms, etc.) impact their ability to distribute and produce products, and impact their end consumers\u2019 ability to buy (1).<\/p>\n

As one of the leading manufacturers of frozen foods (pizza, ice cream, frozen meals), Nestl\u00e9 relies heavily on refrigeration. Worldwide, Nestl\u00e9 owns thousands of commercial freezers, located in retail locations across continents. In addition, Nestl\u00e9\u2019s supply chain operates transportation of refrigerated products every day (3).\u00a0 However, in recent years, many governments and non-governmental organizations (NGOs) have focused on reducing the use of common, but harmful refrigerants in order to fight against climate change (4).<\/p>\n

Specifically, the refrigerant, hydrofluorocarbon (HFC) is extremely harmful to the environment. Just last month, in October 2016, 150 countries met in Rwanda to amend the Montreal Protocol \u2013 an international treaty established in 1987 focused on protecting the world\u2019s ozone layer by mandating a phase out of harmful substances responsible for ozone depletion (5). The amendment signed this year by the attending nations established that the wealthier counties would cut back on HFC usage starting in 2019 (4). HFCs are extremely harmful to the environment, and pose \u201can immediate threat to a safe climate due to their increasing use and high global warming potential, thousands of times more potent than carbon dioxide”(4).<\/p>\n

What is Nestl\u00e9 doing to address the impact of climate change?<\/strong><\/p>\n

One of Nestl\u00e9\u2019s first environmental and sustainability goals in the coming years is to transition all of their refrigerated containers from using harmful HFCs to natural refrigerants (1). They have already begun this transition in across European nations (starting in 2013), and have continued to extend their efforts globally in Asia, and the US (3). Instead of HFCs, the substances used \u201cammonia, water or air and hydrocarbons, like propane and iso-butane\u201d are naturally occurring, do not have a harmful impact on the ozone layer, and have negligible negative impacts on climate change (3).<\/p>\n

Beyond their commitment to cutting out HFCs, Nestl\u00e9 has also established plans to cut down greenhouse gas emissions in their manufacturing operations (by 35%), distribution processes (by 10%), and in warehousing (by 10%); with the goal to reach these reductions by 2020 (1).<\/p>\n

\"Source:
Source: Nestl\u00e9 http:\/\/www.nestle.com\/media\/newsandfeatures\/natural-refrigerants<\/figcaption><\/figure>\n

What more Nestl\u00e9 should be doing?<\/strong><\/p>\n

Nestl\u00e9\u2019s plan to lower greenhouse gas emissions in their distribution process, though not directly spelled out in their company documents, could additionally be executed on many levels. For instance, in the USA, Nestl\u00e9 operates an extensive network of direct store delivery (DSD) vehicles which transport frozen goods directly to retailers throughout the country (6). Beyond ensuring that this fleet of temperature-controlled vehicles also make the change to natural non-HFC refrigerants, Nestl\u00e9 should also think about how to even further reduce these trucks\u2019 carbon footprint and green-house gas emission. One way they could do this is through investing in electric or lower fuel consuming vehicles. This would reduce the environmental impact, and help Nestl\u00e9 USA save on the transportation cost of their supply chain.<\/p>\n

As the world\u2019s largest food and beverage company, Nestl\u00e9 will be setting the stage for how major corporations react and protect themselves against the future climate change that our world is already approaching. I am hopeful that they will continue to pursue efforts to reduce their impact, even after their 2020 goals are achieved, and eventually pivot fully toward making a positive impact on the environment instead of simply making up for the damages they caused in the past.<\/p>\n

[656]<\/p>\n

 <\/p>\n

Sources<\/strong><\/p>\n

    \n
  1. “Our Commitment: Provide Climate Change Leadership.” Climate Change Leadership. Nestle, n.d. Web. 03 Nov. 2016. <http:\/\/www.nestle.com\/csv\/environmental-sustainability\/climate-change>.<\/li>\n
  2. “What Is Nestle Doing about Climate Change?” Environment. Nestle, n.d. Web. 03 Nov. 2016. <http:\/\/www.nestle.com\/ask-nestle\/environment\/answers\/nestle-climate-change>.<\/li>\n
  3. “New Nestle Freezers to Help Tackle Climate Change.” Features & Highlights. Nestle, 27 Nov. 2013. Web. 03 Nov. 2016. <http:\/\/www.nestle.com\/media\/newsandfeatures\/natural-refrigerants>.<\/li>\n
  4. McGrath, Matt. “Climate Change: ‘Monumental’ Deal to Cut HFCs, Fastest Growing Greenhouse Gases.” Science & Enviornment. BBC News, 15 Oct. 2016. Web. 03 Nov. 2016. <http:\/\/www.bbc.com\/news\/science-environment-37665529>.<\/li>\n
  5. “The Montreal Protocol on Substances That Deplete the Ozone Layer.” U.S. Department of State, n.d. Web. 03 Nov. 2016. <http:\/\/www.state.gov\/e\/oes\/eqt\/chemicalpollution\/83007.htm>.<\/li>\n
  6. Johnson, Karla. “Nestl\u00e9 Direct Store Delivery.” Nestl\u00e9 USA (n.d.): n. pag. NESTL\u00c9 USA. Web. 4 Nov. 2016. <http:\/\/www.nestleusa.com\/asset-library\/documents\/media\/nestledirectstoredelivery.pdf>.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    A glimpse into what the world\u2019s largest food and beverage manufacturer is doing to flight climate change globally. <\/p>\n","protected":false},"author":2493,"featured_media":12389,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,1726,1263,1330],"class_list":["post-11485","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-frozen","category-hfcs","category-nestle"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nNestl\u00e9 keeps climate change cool - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/nestle-keeps-climate-change-cool\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nestl\u00e9 keeps climate change cool - 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