Sustainable Business Management: Nestle's Climate Resilience Report

This report analyzes Nestle's approach to sustainable business management, emphasizing its response to climate change. It explores key terms like resilience, adaptation, and mitigation, and identifies present and future risks and opportunities related to sustainability. The report assesses the impact of climate change on local areas and the resulting effects on Nestle's business practices, including changes in production, local systems, and resource management. The conclusion highlights the importance of sustainability practices for businesses to adapt to environmental changes, achieve long-term goals, and maintain profitability. The report suggests that Nestle must adapt to a changing climate by redefining its approach towards sustainability. The report also recommends that the company should adopt strategies related to adaptation, mitigation and also take steps to ensure the company's products are compatible with climate change.

Sustainable Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Sustainable Business management refers to ensuring that the management of the business
is done in such a manner that it is able to contribute towards the sustainability within the
environment in the right manner effectively and efficiently (Al Breiki and Nobanee, 2019). Thus
in this way it can be said that this is quite useful for the businesses because it helps them in
ensuring that they are able to achieve a higher-level of sustainability without facing problems
and issues. This report is based on Nestle. It is a Swiss multinational company which provides
different types of products to the customers. In this report, there will be detailed focus on the
methods to be adopted by the company so that it is able to increase the resilience of the business
to local climate change impacts.
MAIN BODY
Sustainable Business Management is quite important to be considered by the businesses
because it ensures that the businesses are able to achieve their goals and objectives in a highly
effective manner (Caldera, Desha and Dawes, 2017). This not only helps them in contributing in
an effective manner towards the environment without facing problems and issues. Thus as Nestle
is a global company which deals in different types of products and services it is quite important
for it to ensure that it can achieve its goals and objectives related to sustainability by following
the recommendations which are related with Green Business Network Members.
There are various types of key terms which are related with the sustainability of the
businesses. An explanation of some of these terms can be done as follows-
Resilience- It refers to the resistance which is put by the businesses towards the climate
change (Evans and et.al., 2017). It is quite important for the businesses like Nestle to make sure
that they are able to that they display appropriate resistance towards the climatic changes which
can impact their businesses. This can affect the company as they lead towards creation of an
impact on the level of operations. Thus the firm is required to make sure that the redefining of
approach towards sustainability can be done effectively and efficient without facing problems
and issues.
Adaptation- It means the adaptation which can be shown by the businesses so that they
are able to work according to the changing climatic requirements in a highly effective manner. In
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the context of Nestle it can be quite useful so that it is able to adapt in the right manner towards
the climatic change.
Mitigation- Mitigation refers to ensuring that the effects of something which is harmful
in nature can be reduced. In the context of Nestle, it can be said that the use of mitigation can
help it a lot in ensuring that the harmful effects of climate change can be managed in a right
manner by it. Thus in this way the appropriate actions to be taken in such a case can be pre-
determined by the company which can be quite helpful for it in the future.
Climate Change- Climate Change refers to the frequent changes which are being
witnessed in the climate all over the world (Gabler and et.al., 2017). Therefore in Nestle, it is
quite important that it is able to appropriately identify the factors which can affect the climate of
the world. Thus by moulding its different types of policies according to the climatic changes
which are happening all around the world the company will be able to make sure that it can
sustain its business in a highly competitive market without facing problems and issues.
Resource Scarcity- Resource Scarcity refers to the scarcity of the available resources
within the society. In the context of Nestle, it can be said that the scarcity of these resources can
affect its operations related with Sustainable Business Management. Thus in this way it can be
said that this type of scarcity can be managed by the company by ensuring that it makes the use
of appropriate environmental strategies and techniques.
Present risks related to sustainability-
 Frequent climatic changes- In fast-changing climatic conditions a lot of problems
related to environment are created for the businesses. Thus this is a present risk which is
faced by Nestle regarding its business. The reason for this is that frequent adjustments are
required to be made towards these changes in a highly effective manner.
 Climatic problems- Frequent climate changes can lead towards a lot of climatic
problems to be faced by the businesses. Thus in this way this is a present risk which is
being faced by Nestle regarding its businesses. The reason due to which it faces this risk
is that a lot of climate change has happened due to the wrong activities of the human
beings.
Future risks related to sustainability-
 Lack of compatibility of the products- The products which are being made by the
companies may not be compatible with the climatic changes which are occurring in the
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environment. Thus this is a risk which is being faced by the businesses like Nestle as
their products in the future may not meet the criteria of sustainable environment.
 Unpredictable climatic changes- The climatic changes in the future may be
unpredictable in the future for the companies. Thus in this way this is a risk for a
company like Nestle because the prediction of the climatic changes in the future may not
be made in the right manner by it.
Present opportunities related to sustainability-
 Adaptation towards the change- The companies can make sure that the adaptation
towards the change can be made in a highly effective manner (Haseeb and et.al., 2019).
For a company like Nestle it can create an opportunity so that it is able to adapt towards
the climatic changes quickly by identifying them and ensuring that the sustainability can
be managed effectively and efficiently.
 Ensuring adaptability of the products- The companies are required to make sure that
the adaptability of the products can be done according to the different types of climate
changes (Herrera and de las Heras-Rosas, 2020). In the context of Nestle, it can ensure
that the goals and objectives can be attained highly effectively and efficiently.
Future opportunities related to sustainability-
 Balancing of the opportunities- It is important for the companies that they are able to
make sure that the balancing of the opportunities related to the sustainability can be
managed. Thus for a company like Nestle it is quite important that the balancing of the
opportunities can be done effectively and efficiently.
 Making a sustainable policy- In the companies it is quite important that a sustainable
policy can be made. Therefore for a company like Nestle it is very essential that it uses
the future opportunities available for making a sustainable policy which can be quite
helpful in the future.
Impact of climate change on a local area-
The climate change can create an impact on the local areas because the change in the
nature of the climate in the future can affect the businesses a lot (Morioka and et.al., 2017). The
impact which this type of change will put upon the local areas is explained as follows-
 Change in the temperature level- The climate change in the local areas can create an
impact on the temperature levels in the different areas. Thus in this way a company like
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Nestle can be affected due to these reasons because it has to ensure that its products can
suit the changing climatic needs.
 Change in patterns- Climatic change can bring a change in the different types of
patterns within the areas of the world. The pattern in which seasons come can change due
to this reason. Thus in this way it can be said that for Nestle it is quite important that it
understands the change in these patterns and can mould its future products and services
accordingly.
 Change in the systems- Climatic change can make sure that an overall change is brought
in the different types of systems. Thus in this way the overall systems of a local area can
change a lot. In the context of Nestle this can create a lot of impact on the overall
operations because it will need to make sure that a change in its sustainable policies is
made so that adjustments are made accordingly to the changing systems.
Impact on the business because of change in climate in the local area-
As a company, Nestle will face a lot of impact on the business if the local area in which it
is operating faces a climatic change. Thus in this way the company will be required to make sure
that the following points are considered by it-
 Change in business practices- Businesses may be required to bring a change in the
business practices because in this way they will be able to ensure that they can adjust in
an effective manner towards the sustainable practices effectively and efficiently. In this
way a company like Nestle can make sure that by changing its business practices it is able
to attain its goals and objectives.
 Change in the way of production- Businesses may be required to ensure that they are
able to identify the production system which they are using currently whether there is a
requirement for them to change it if desired (Raut and et.al., 2019). In the context of
Nestle, it can be said that the change in the system of production can be brought which
will be quite helpful in attaining the goals and objectives in the future.
 Local system changes- Businesses are required to bring a change in the local system
which will be quite helpful for them in ensuring that they can modify their production
accordingly. For Nestle, it is quite important that it is able to bring changes in the local
system which can work for them. This will be helpful for the company in maintaining its
sustainability in the right manner without facing problems and issues.
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 Updating of resources- Businesses may be required to make sure that the resources are
updated which will help them in achieving their particular goals and objectives in a
highly effective manner. Thus in this way Nestle can ensure that by updating its
particular resources it is able to attain its goals and objectives and can maintain the
sustainability in a proper manner.
CONCLUSION
From the above report, it can be concluded that it is quite important for the businesses to
make sure that the different types of sustainability practices are used by them for adjusting in an
effective manner with the changing environment. It is quite important because by bringing these
changes they are able to achieve their goals and objectives both in the short-term and long-term
and can attain higher-level of efficiency as well as effectiveness in the mode of operation which
will ensure that the level of profitability and sustainability can be appropriately determined in the
future without facing problems and issues.
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REFERENCES
Books and Journals:
Al Breiki, M. and Nobanee, H., 2019. The role of financial management in promoting
sustainable business practices and development. Available at SSRN 3472404.
Caldera, H. T. S., Desha, C. and Dawes, L., 2017. Exploring the role of lean thinking in
sustainable business practice: A systematic literature review. Journal of Cleaner
Production. 167. pp.1546-1565.
Evans, S. and et.al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Gabler, C. B. and et.al., 2017. Developing an environmentally sustainable business plan: An
international B2B case study. Corporate Social Responsibility and Environmental
Management. 24(4). pp.261-272.
Haseeb, M. and et.al., 2019. Industry 4.0: A solution towards technology challenges of
sustainable business performance. Social Sciences. 8(5). p.154.
Herrera, J. and de las Heras-Rosas, C., 2020. Corporate social responsibility and human resource
management: Towards sustainable business organizations. Sustainability. 12(3). p.841.
Morioka, S. N. and et.al., 2017. Transforming sustainability challenges into competitive
advantage: Multiple case studies kaleidoscope converging into sustainable business
models. Journal of Cleaner Production. 167. pp.723-738.
Raut, R. D. and et.al., 2019. Linking big data analytics and operational sustainability practices
for sustainable business management. Journal of cleaner production. 224. pp.10-24.
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