3.6 Reducing water use

The topic of water covers water use and pollution at the Emmi Group 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. For example, water is required at the Emmi Group’s own facilities as a product ingredient in production processes and to ensure quality and hygiene. Fresh water consumption and the wastewater produced are relevant in this context. The Emmi Group currently defines water consumption solely as the extraction of fresh water.

3.6.1 Impact on the environment and society, and opportunities and risks

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 (Heinrich Böll Foundation, 2025).

For the Emmi Group, too, water is an essential resource that is required for production processes and to ensure 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 purchase 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. Depending on the availability of water in the region, this 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 the products of the Emmi Group, such as fruit, coffee and cocoa beans and nuts.

Climate change is fundamentally changing the regional and seasonal availability of water. This entails significant risks for the Emmi Group’s business model (see section 3.5 Reducing emissions).

3.6.2 Management approach and goals

Systematic environmental management and goals for 2027

When selecting the certification standards for its management systems, the Emmi Group aligns itself with the needs of the market, the added value achieved for the various stakeholders and the resources available. The Emmi Group controls water management at all production sites through systematic environmental management. The production sites Emmi Dessert Italia (Italy), Kaiku (Spain) and Vitalait (Tunisia) have ISO 14001-certified environmental management systems in place. In division Switzerland, the ISO 14001 standards will be continued as a best practice in future and will no longer be (re)certified.

The key data for water management comprises fresh water consumption and the volume of wastewater (measured in Switzerland since 2008, globally since 2019), the development of which is monitored quarterly at Group level. Chemical oxygen demand (COD) for determining and controlling wastewater quality, as well as other parameters, are currently only managed at local level. 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.

The Emmi Group’s water consumption targets through to 2027:

• Reduction of own water consumption in non-risk areas by 15% (compared to 2019), whereby the target refers to the saleable goods produced (in tonnes).
• Reduction of own water consumption in risk areas by 50% (compared to 2019), whereby the target refers to the saleable goods produced (in tonnes).

The annual data on water consumption for sustainability reporting is collected locally, consolidated at Group level and audited externally by KPMG (see section 9 KPMG audit report). The Sustainability Steering Committee reviews progress and the achievement of goals.

Orientation to industry-standard consumption values, taking into account water-risk areas

The Emmi Group bases 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 2024). This analyses the water risks at a specific location on the basis of 12 criteria. When classifying production facilities, Emmi focusses on the four risk categories of physical risk: water scarcity, flooding, water quality and ecosystem services status. According to this analysis, the production plants in Chile (Calera de Tango), California (Turlock), Mexico (Mexico City), Spain (Pamplona) and Tunisia (Mahdia) are located in water-risk areas.

Some subsidiaries of the Emmi Group outside Switzerland – as well as their milk producers – are located in water-risk areas. The criteria catalogue for milk suppliers (see section 3.2 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)

Global strategies for wastewater reduction

For over 15 years, the Emmi Group has relied on professional water management at its Swiss plants, on the basis of which tried-and-tested, globally replicable approaches have been developed:

• In order to reduce its fresh water consumption, Emmi relies on reusing and treating water. This allows the water to be kept in the cycle for as long as possible, thus minimising the consumption of fresh water.
• Optimising the cleaning processes makes it possible to achieve notable reductions in fresh water consumption.
• Wastewater pollution is reduced by reducing product losses in the production process.
• Wastewater from production facilities is treated according to state-of-the-art processes and local requirements.

Water consumption in the upstream and downstream value chain

Most of the Emmi Group’s water footprint comes from the cultivation of agricultural raw materials. In 2020, the company developed a concept, with external support, for handling high-risk raw materials (such as coffee, cocoa and almonds). However, for resource reasons, no measures are currently being implemented to reduce water consumption along the upstream and downstream value chain.

3.6.3 Developments in the year under review

Application of risk areas according to the “WWF Water Risk Filter”

A review of the risk areas was carried out in 2024. It showed that the production site in Pamplona, Spain, has to be reclassified as a water-risk area, while Sebastopol and Petaluma, two production sites in California, are no longer considered risk areas. The reclassification was applied in the current reporting period. The Emmi Group has examined the resulting medium-term to long-term implications.

Water intensity increased compared to the base year

The Emmi Group aims to reduce water consumption in terms of produced, saleable goods (water intensity) by 15% in non‑risk areas and by 50% in high-risk areas by 2027. Water intensity is currently above the base year of 2019: by 1% in non‑risk areas and 14% in risk areas. The reasons include shifts in the product portfolio as well as increasing quality and cleaning requirements compared to the initial situation. Against this backdrop, achieving the targets by 2027 presents a challenge.

Compared to the previous year, the water intensity rate fell by 2% overall and by 9% in high-risk areas (due in part to rising volumes). Despite increasing production volumes, water efficiency improved compared to the previous year.

The Emmi Group measures progress by means of the following performance indicators:

Methodology for non-financial figures 2025

3.6.4 Outlook

The existing local measures will be maintained as part of general environmental management. No Group-wide, strategic initiatives are currently being planned or implemented.