The topic of water covers water use and pollution at Emmi as well as in the upstream value chain. In agriculture, water consumption and water pollution are key to the production of plant and animal raw materials. Water is required in our facilities as a product ingredient, in production processes and to ensure quality and hygiene. For Emmi, fresh water consumption and the wastewater produced (such as degree of pollution or quantity) are relevant in this context. Emmi currently defines water consumption solely as the extraction of fresh water.
Water scarcity and extreme weather events such as droughts and flooding are affecting more and more regions and will be among the greatest risks of the future according to the World Economic Forum. Food production is one of the most water-intensive activities. According to the WWF, the agricultural sector is responsible for the extraction of around 70% of all fresh water used (WWF, 2021).
Water is also an essential resource for Emmi. In the company’s own operations, water is used as an ingredient in individual products and is required for production processes. Water is likewise important for ensuring quality and hygiene. The wastewater from the plants can be contaminated with organic or chemical residues. However, it may also have a temperature that greatly differs from that of the bodies of water into which it is discharged. Both the purchasing of fresh water as well as the treatment and disposal of wastewater can incur high costs.
Water is also very important in the upstream value chain – the production of milk. Agriculture requires large quantities of water to cultivate animal feed and raise livestock, which, depending on the availability of water in the region in question, can be problematic for people and the environment. In intensive agricultural production, the use of fertilisers and organic waste from livestock farming can negatively affect the quality of surface and groundwater, thus harming soil and aquatic organisms. Extreme drought or heavy rainfall also affects the availability and price of animal feed, which can have an impact on the quantity and price of milk.
Water shortages affect the agricultural production of non-dairy ingredients used in Emmi products, such as fruit, coffee, cocoa beans and nuts.
Climate change is fundamentally changing the regional and seasonal availability of water. This entails significant risks for Emmi’s business model (see section “Reducing emissions”).
Emmi controls water management at all production sites through systematic environmental management. Apart from the production sites of Emmi Switzerland, the production sites Emmi Dessert Italia (Italy), Kaiku (Spain) and Vitalait (Tunisia) also have ISO 14001-certified environmental management systems.
The key data for water management are fresh water consumption and the volume of wastewater (in Switzerland since 2008, globally since 2019), the development of which is monitored quarterly at Group level. In contrast, chemical oxygen demand (COD) for determining and controlling wastewater quality, as well as other parameters, are currently only managed locally. The local companies are responsible for complying with national and local laws, guidelines and threshold values and for deriving site-specific measures based on these. They check their impact locally via their KPI and management platforms.
Emmi’s water consumption targets up to 2027:
The annual data on water consumption for sustainability reporting are collected locally, consolidated at Group level and audited externally by KPMG (see section “KPMG audit report”). The Sustainability Steering Committee reviews progress and the achievement of goals.
Emmi will base its target of reducing water in its own facilities on standard industry values. Emmi is aware that the impact of its production activities on water varies greatly from country to country. The company has therefore opted for an impact-based strategy: to identify water-risk areas and define regional priorities, Emmi applies the “WWF Water Risk Filter” to all its production sites (most recently in 2019). This analyses the water risks at a specific location on the basis of twelve criteria. According to this analysis, the production plants in Tunisia (Mahdia), California (Sebastopol, Turlock and Petaluma), Mexico (Mexico City) and Chile (Calera de Tango) are located in water-risk areas.
Some Emmi subsidiaries outside Switzerland – as well as their milk producers – are located in water-risk areas. The criteria catalogue for milk suppliers (see section “Sustainable dairy”) thus also includes water criteria: protecting open water and groundwater against pollution. These criteria are currently being surveyed to better assess the effective risk and, if necessary, to introduce measures in the next strategy period.
Criteria catalogue (sustainable milk methodology)
For over 15 years, Emmi has relied on professional (waste)water management at its Swiss plants, on the basis of which tried-and-tested, globally replicable strategies have been developed:
Most of Emmi’s water footprint comes from the cultivation of agricultural raw materials. However, the focus is currently only on water consumption within the Group’s own facilities. No measures are being implemented to reduce water consumption along the upstream and downstream value chain at this time. The company developed a concept, with external support (including from its partner WWF), for high-risk raw materials in 2020, the implementation of which will be reviewed in the future.
A renewed review of the risk areas was carried out in the year under review and approved at Group level. The reclassification will be applied in the coming reporting period and any resulting medium-term to long-term implications for Emmi reviewed.
In the year under review, the subsidiary Kaiku in Spain continued to optimise its cleaning processes, eliminated leakage points and raised awareness among employees. Thanks to comprehensive cost-saving and optimisation measures, absolute water consumption at the plant in Pamplona was reduced by around 41% compared to the 2019 baseline year.
Emmi aims to reduce water consumption both in non-risk areas (target by 2027: minus 15%) as well as in high-risk areas (target by 2027: minus 50%) in terms of produced, saleable goods (water intensity). However, water intensity is currently 1% (non-risk areas) and 25% (risk areas) higher than in the 2019 baseline year. The reasons for this remain unchanged, because cleaning efforts are not falling linearly with lower production volumes. In addition, there has been a shift in the product range towards products with a higher dry mass, such as cheese and powder, compared to the baseline year. A technical fault also occurred at the water treatment plant in Tunisia.
|
Water consumption 1) 2) 3) |
|
2024 a) |
2023 |
2022 b) |
Base year 2019 b) |
|
Total |
m 3 |
7,256,868 ▲ |
7,182,686 |
7,229,862 |
5,883,917 |
|
Intensity rate per t of product 4) |
m 3 /t product |
5.36 |
5.38 |
5.38 |
5.10 |
|
|
|
|
|
|
|
|
Water consumption in risk areas 1) 2) 3) 5) |
|
2024 |
2023 |
2022 |
Base year 2019 |
|
Total |
m 3 |
1,113,991 ▲ |
1,052,611 |
1,094,183 |
944,399 |
|
Intensity rate per t of product 4) in risk areas |
m 3 /t product |
5.23 |
4.67 |
4.12 |
4.17 |
|
|
|
|
|
|
|
|
Water consumption in non-risk areas 1) 2) 3) |
|
2024 a) |
2023 |
2022 b) |
Base year 2019 b) |
|
Total |
m 3 |
6,142,877 ▲ |
6,130,074 |
6,135,679 |
4,939,518 |
|
Intensity rate per t of product 4) in non-risk areas |
m 3 /t product |
5.38 |
5.52 |
5.70 |
5.32 |
a) Including Emmi Dessert USA.
b) Including Gläserne Molkerei (divested in 2023).
1) Emmi's definition for "water consumption" corresponds to the definition of "water withdrawal" according to the GRI Standards 2021 GRI 303.
2) Water obtained from the respective state water supply or from own wells.
3) 1,000 m3 = 1 ML.
4) Product = saleable goods.
5) Areas at water risk with a high level of water stress: Mahdia (TN), Turlock (US), Petaluma (US), Sebastopol (US), Mexico City (MX) and Calera de Tango (CL).
▲ Audited by KPMG.
Methodology for non-financial figures 2024
In the coming reporting period, the medium-term and long-term measures that the reclassification will have (according to the “WWF Water Risk Filter”) on the risk areas and their production sites will be reviewed.
Initial steps are also planned to improve the data situation in accordance with the requirements of the 2021 GRI Standards. In terms of the overarching understanding that water consumption is the result of water extraction minus water recirculation, Emmi plans to collect data on water recirculation across the Group from 2026.