Essays on Nestle Oils Adoption of Environmental and Social Sustainability in its Supply Chain Case Study

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The paper "Nestle Oil’ s Adoption of Environmental and Social Sustainability in its Supply Chain" is an outstanding example of a business case study.   Nestle Oil is one of the internationally recognized companies that have the sustainability of the environment as well as social aspects put into consideration in its entire supply chain. Nestle Oil basically deals with the production of refined traffic fuels of a rather exceptional high quality mainly characterized by the low level of emissions (Dauvergne, 2013, 113). Nestle Oil also undertakes marketing of its fuel products and while maintaining its considerably best practice in environmental as well as social sustainability, the company has managed to be listed among 100 globally recognized sustainable companies for several years now (Dauvergne, 2013, 113).

In this case, the main area of concentration is the manner in which Nestle Oil as an energy-producing company manages its supply chain undertakings to such that it is in a position to ensure the environment and social aspects are not compromised. This it has achieved by working towards the reduction of a negative effect of its endeavors while at the same time producing high value best for the esteemed stakeholders. Nestle Oil has depicted great commitment to supply chain sustainability whereby the company is responsible for environmental as well as social sustainability.

This particular supply chain flows from generating raw materials to the point of transportation. This is then followed by the actual refining process, to fuel transportation and finally utilization of fuel product. (PricewaterhouseCoopers Oy, 2013) Environmental responsibility and impact associated with obtaining raw materials Nestle Oil has currently reported such a good performance in terms of environmental responsibility. However, it is of great importance to note that this has not been attained easily considering that the company has been monitoring its operations and the subsequent environmental impact for decades now.

Nestle Oil initiated this practice in the late 1960s and the persistence has yielded good results with notable advancement in environmental safeguard. Environmental protection practices require great commitment and investment of resources which would ultimately affect the overall net returns (Andrew, 2012, 177). Nestle Oil is not an exception hence the need for it to maintain a relevant dialogue with authorities in order to understand what exactly are is acceptable with regard to environmental protection.

The company has therefore made it its responsibility to produce considerably “ clean” fuels consequently minimizing greenhouse gases emitted traffic. Accountability is of importance when considering sensitive issues like environmental responsibility hence the need for Nestle Oil to report its progress in this area regularly; which it does at the administration level as well as to relevant authorities and surrounding communities (Andrew, 2012, 177). The company has also taken the initiative of publishing a report annually whereby sustainability and other operational aspects are analyzed. It is important to note that Nestle Oil as a company does not produce oil and has therefore minimal ability to impact on crude oil generation.

In this case, the company acquires crudes oil from trading centers but not from the actual producers. However, before procurement, this company does extensive research regarding the origin country and specific region of production. This would raise a question of how the company ensures that aspects of environmental as well as social responsibility are put into consideration during raw materials’ generation.

Nestle Oil has proved to go an extra mile to prove its level of responsibility observing to renewable energy regulations as specified by the European Union. In this case, the company ensures verification of raw materials generation in that the sustainability aspects are followed and the same can be traced even to the actual plantation of production (Edwards, 2007, 56).

References

PricewaterhouseCoopers Oy 2013, Nestle Oil Annual Report 2012, Available from: PricsewaterhouseCoopers Oy. 26 February 2013

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