Nestle India’s principles and pursuit of sustainable supply chains

As the world realises the need for more sustainable actions in everyday life and business as usual, not just countries but organisations, their own individual capacity, are also trying to inculcate environmental concern in their operations. In that direction, India’s leading consumer goods company – Nestle – has taken a significant step towards achieving its sustainability goals by partnering with GreenLine Logistics, an Essar Group firm, to implement sustainable supply chain practices.

Nestle India will be using GreenLine’s LNG powered trucks for the transportation of India’s beloved Maggi Noodles. GreenLine Logistics has, apparently, developed innovative 46 feet long trucks specifically designed for the transportation of the noodle boxes. In comparison with traditional diesel-powered trucks, an LNG fueled fleet reduces greenhouse emissions substantially – carbon emissions decrease by up to 30%, sulphur oxides reduce by up to 100%, nitrogen oxides by up to 59%, carbon monoxide by up to 70%, and particulate matter by up to 91%.

It will be safe to say that with the amount of reductions in emissions, as listed above, the collaboration between Nestle and GreenLine Logistics exhibits the former’s commitment to reducing the carbon footprint of its logistics operations and promoting environmental stewardship.

The 55-tonne, 46-foot LNG trucks developed by GreenLine will bring a substantial result in Nestle’s supply chain emissions, not just by using a cleaner fuel but by also reducing the number of vehicles required for transportation. So instead of using many smaller diesel vehicles, the company will be using lesser number of LNG powered trucks.

“We are thrilled to announce our partnership with Nestle India in their journey to reduce emissions through our innovative green mobility solutions.”

Anand Mimani, CEO of GreenLine Logistics

Mimani emphasized that this collaboration marks a significant milestone, ushering in a new era of eco-friendly logistics for consumer goods companies in India. He eagerly anticipates the widespread adoption of GreenLine’s green mobility solutions by other industry leaders, enabling them to enhance their ESG performance, foster a cleaner environment, and pave the way for a sustainable future for generations to come.

“We are committed towards net zero emissions and sustainable logistics is a step in that direction.”

Sanjay Khajuria, Director of Corporate Affairs and Sustainability at Nestle India

He further elaborated on Nestle’s approach, highlighting the deployment of different modes of transportation using alternative fuel and larger vehicles to optimize vehicle capacity utilization.

Nestle India has been evidently vocal about sustainable logistics, acknowledging the importance of addressing environmental changes. For instance, during the India Supply Chain Conference (ISCON) 2023, Ashish Pandey, Head of Supply Chain at Nestle India, highlighted the significance of sustainable road transportation. He emphasized the importance of optimizing truck capacity as well as supply chain network as a measure to reduce greenhouse gas emissions.

He also said that government support is vital in this direction in terms of infrastructure development and the promotion of multi-modal transportation. According to him, simplification of checking procedures on road, along with elimination of unnecessary paperwork related to transporting goods, would also be instrumental in making transportation more sustainable. Additionally, Pandey acknowledged the need for battery-operated trucks in India and stressed the importance of further efforts in sustainable logistics.

Pandey also shared his thoughts on managing e-waste in supply chain industry. He stressed on the gravity of the issue and said that there is a need for proper disposal of e-waste in a sustainable manner. Pandey also that that it is important to collaborate with registered service providers to ensure compliance with government regulations while disposing of e-waste responsibly.

Furthermore, when asked about his thoughts on fortifying the supply chain to meet the growing demand from Tier-2 and Tier-3 cities in India, he started by stating that over 60% of India’s population resides in these cities, and there is a need for FMCG companies to prioritize these markets. He stressed the importance of working with like-minded service providers to improve market access, create value-for-money products relevant to consumers in these cities, and ensure a continuous supply of goods.

With Nestle India’s collaboration with GreenLine Logistics and its commitment to sustainability, the company is setting a benchmark for the consumer goods industry in India. This partnership serves as an inspiration for other industry leaders to prioritize sustainability, thereby fostering a cleaner environment and paving the way for a sustainable future.