Stakeholder engagement
Nestlé has actively promoted dialogue on the issue of improving access to clean water and on the dangers of water scarcity in the future.
In January 2006, at Nestlé's encouragement, the World Economic Forum (WEF) hosted an Open Forum in Davos, Switzerland to discuss a topic considered to be at the forefront on the global agenda toward meeting the Millennium Development Goals: “Water: Property or Human Right?”.
Peter Brabeck-Letmathe shared views and insights with water experts from the public, private and NGO sectors in a lively and multi-facetted discussion, reflecting the enormous complexity of the topic. Participants elaborated issues ranging from understanding the drivers of water scarcity and lack of access for millions of people, to the economic aspects of water such as pricing and the role of agriculture. Mr. Brabeck acknowledged the responsibility and consequently the efforts of Nestlé to continuously increase its own water efficiency. He also stated that the global water challenge requires priority given to address the inefficiencies of water use in agriculture and asked:
“Do those who have water rights live up to their responsibility to use water efficiently?”
Nancy Birdsall, President, Center for Global Development, USA
Nancy Birdsall, President, Center for Global Development, USA, emphasised the important roles of governments and governance processes to create policies and accountability to manage water resources when she said, “Water needs a price. If you don’t have a price, the rich will get it free; the poor will pay a lot.” Without setting the right economic incentives, private industry can not be expected to make the necessary investments to improve water systems.
A well, created by Nestlé in Kaleke, India, close to the company’s Moga factory, provides safe, clean water for the school children and their families The World Economic Forum Water Initiative helps build multi-stakeholder partnerships between private, public and non-governmental actors to contribute to the water-related Millennium Development Goals. It does so through engaging its members in:
- Promotion of best practice water use technologies, techniques and strategies
- Participation in multi-stakeholder water resource management strategies within watersheds or regions
- Participation in broader (national, multinational) water policy and governance dialogues
More on this initiative can be seen online: "Nestlé engages with the WEF water initiative directly though Peter Brabeck-Letmathe". Water shortage – a global issue that concerns us all
Because understanding the complexity of water cannot be achieved from the perspective of any single organisation, Nestlé engaged AccountAbility to identify, clarify and synthesise the views of key stakeholders on water issues. A number of water experts from a diverse set of organisations from the civic, public and private sectors in several countries were interviewed in order to understand their opinion on the following:
- general, as well as Nestlé-specific, views on current water management
- what needs to be done and on Nestlé’s role in relation to water management
- what value there is in Nestlé producing a report on water
The discussions with stakeholders revealed three main findings on expectations for Nestlé’s activities around water issues. These are:
- All issues need to be addressed
Stakeholder concerns go beyond direct operational impacts to include the beginning and the end of the value chain. The majority of consulted stakeholders trust that Nestlé has high standards of efficiency and responsibility in its directly owned and managed production facilities.
- Be a visible leader
Nestlé should take a leadership role by driving sustainable water management beyond the scope of its own operations and by facilitating innovations that address major challenges. “Leadership” means Nestlé should target positive results in environmental and social areas, as well as economic targets, referred to as “triple-bottom line” impacts.
- Stakeholders want to engage
Most stakeholders are very willing to engage with Nestlé. They would therefore like to see this report as the first step in on-going engagement, and view these efforts as the basis for joint investigation into, and subsequent action toward, more comprehensive solutions.
4th World Water Forum – Mexico
Nestlé highlighted the global challenge of water, welcoming dialogue with stakeholders at the 4th World Water Forum in Mexico Mexico City was host to the 4th World Water Forum (WWF), attended by over 10,000 persons concerned about water, and organised by the World Water Council in cooperation with the Mexican Government. Participants included representatives and delegates from 140 countries, experts, NGOs, companies and civil society representatives and more than 1’600 journalists. Over 1’200 local actions were discussed, ranging thematically and including: Water for Growth and Development, Implementing IWRM (to address the central developmental goals of water policy making), Water Supply and Sanitation, Water for Food and the Environment, and Risk Management.
The WWF also provided an opportunity for Nestlé to engage with a wide range of stakeholders in Water, through a Nestlé public discussion space open to anyone, and through participation in presentations, panels and informal dialogue. For Nestlé it was a welcome focus on the importance of water as a global challenge and the opportunity to review the company’s strengths and weaknesses in water.
”Most people have an opinion about the role of private corporations in water, whether positive or negative. Still, we find that many may not be aware of the less visible ways that water matters in a corporation. That water is an issue not only for water distribution and bottled water companies but for all companies. Also, many may not think of business as a credible voice on water. There is work to do for corporations to share more of what they are doing, show that there is expertise and experience that can be of interest for others. In water management, everyone has a role to play. ”
Carlo Donati, Executive Vice President, Chairman and CEO, Nestlé Waters