Nestle Waters North America
At a Glance
Industry
Consumer Packaged Goods
Project Type
Clean and Renewable Energy
Year
2015
Location
Stamford, CT
Annual CO2 Reductions:
42,000 metric tons
Summary
Kayla Fenton supported Nestlé Waters North America’s efforts to procure renewable energy through power purchase agreements as part of the company’s commitment to climate leadership.
Goals
Nestlé Waters North America (Nestlé Waters) has 12 bottled water brands in its portfolio of products, including NESTLÉ® PURE LIFE® and PERRIER, that it produces or distributes throughout the U.S. In 2015, the company retained the services of Kayla Fenton to help begin implementing its goal of powering the manufacturing facilities with renewable energy. As a founding member of the Rocky Mountain Institute’s Business Renewable Center, Nestlé Waters embraces the economic and environmental value of switching to renewable power and has incorporated some renewables, but progress has been limited because of the complexity of renewable power purchasing process and cost concerns.
Solutions
Building off of the work of previous consultants, Fenton focused her efforts on analyzing the potential for off-site renewable power purchase agreements (PPA) for facilities in Texas and Pennsylvania. After collecting power consumption and rate data for Nestlé Waters’ facilities in these states, Fenton issued a Request for Proposals to the renewable power sector to collect information on the rates and contract structures available for renewable PPAs in these target markets. During the response period, Fenton educated Nestlé Waters’ staff from finance, supply chain and corporate affairs on the structure of a renewable power purchase contract, which differs significantly from Nestlé Waters’ current purchasing structure, and addressed key operational concerns. In addition, Fenton formed connections with other Nestlé companies operating in the US to help align renewable purchasing strategies across Nestlé brands. After receiving over 40 proposals, Fenton completed an initial financial analysis to determine the potential cost savings and environmental benefits of each opportunity.
Potential Impact
Fenton discovered several renewable PPA opportunities that could reduce Nestlé Waters’ operational costs and the environmental impact of its supply chain. It is estimated that by switching to renewable power at two of its facilities, Nestlé Waters is positioned to reduce greenhouse gas emissions by about 42,000 tons per year and energy-related water consumption by about 48 million gallons per year. At the close of her fellowship, Fenton presented her findings to key members of the executive team, and plans have been made to continue implementation of the selected renewable PPA through additional financial analysis, due diligence and contract negotiations. Once implemented, this project could increase Nestlé Waters’ share of renewable power by nearly 15 percent.