Sustainability in Global Business: Emmi Company in Switzerland - Essay Example

Sustainability in Global Business: Emmi Company in Switzerland By [Environmental studies] of IntroductionEmmi Group Company is the largest milk processor in Switzerland and one of the most premium dairies in Europe. The company focuses on the development, production and marketing of a wide range of dairy and fresh products. In addition, the company produces and trades in Swiss cheese products. In the external market, which is primarily the European and North America, Emmi concentrates on brand concept development. Notably Emmi has special focus on fresh products based on convenience, lifestyle and health products (just-food.com). This essay seeks to examine Emmi’s sustainability potential in the global business, particularly the environmental impacts and the anticipated change over the next 40 years. As a point of departure, Emmi has endeavoured in enhancing sustainable production activities and the careful use of resources for numerous years. This is intended to present satisfactorily standards of food that satisfies the market niche as well as safe and of high quality (just-food.com). The production should be based on economic production. On equal measure, the customers anticipate that the sustainability strategy should be attributed to the continuous fall of prices. This brings us to the conflicting situation of satisfying high quality and superior brands relative to low prices at Emmi. This study finds out that Emmi endeavours in employing sound and competent technological environment strategies that are linked with the energy –intensive processes. This makes Emmi an example of a responsible entrepreneurship entity. It is imperative to note that, sustainability forms the foundation of the Emmi Mission statement, to which all employees subscribe with their upbeat approach in a bid to sustain unwavering commitment to the environmentally friendly corporate management. It is imperative to note that, Emmi’s sustainability strategy is based on three pillars, which include a balance between ecology, economics and social commitment (just-food.com). The three pillars are based on an indisputably practiced corporate society and values that are steady with the corporate philosophy. This brings us to the analysis of the environmental impacts and the anticipated change over the next 40 years relative to the Emmi’s sustainability potential in the global business. ANALYSIS According to the Emmi’s environmental policy, the organization is committed to an environmentally friendly corporate management and behaviour system. This study finds out that Emmi does not use any genetically modified organisms in its development and production operations. This commitment has remained anchored in Emmi’s environmental policy for the last 20 years and it is believable it will withstand all odds in the next 40 years (bloomberg.com). The commitment forms the base for the environmental management system, which is integrated in the company’s activities. Emmi’s Company has endeavoured to in observing and reviewing the environmental guidelines on a regular basis due to the environment’s dynamic trend. Notably, the regular reviewing of these guidelines have put the company’s system of operation to be in tandem with the ever- changing production and processing processes. There has been steady sustenance of these regulations through the environmental management. This implies that the continuity of this trend should be based on the effectiveness of this department (bloomberg.com). In addition, the sustenance of the Emmi’s environmental activities is strictly guided by compliance of both ISO 14001 and the national cantonal and local legislation. Emmi’s concept on environmental management encompasses energy, waste disposal, chemical substances, noise, wastewater environmental records and legal acquiescence. The Emmi’s index check focuses on primary figures on water, waste, CO2 and energy. We consider the following values for the years 2010 through 2012 and use them to approximate the picture or scenario in 2054. Description 2011 1012 2052 Product sales in t 610,836 623,234 740,340 Electricity consumption in million kWh 121.6 121.3 103.2 Electricity consumption/ product sales in KWh/t 195 199 129 Water consumption in million m3 3.0 2.9 7.0 Water consumption / product sales in m3/t 4.9 4.7 12.9 Waste volumes in million kg 2.5 2.0 0.68 Waste volumes/product sales in kg/t 4.0 3.3 2.0 CO2 emissions in t 36, 493 35,752 8,455 Volume of milk in t 896,000 882,000 1,008,000 CO2 emissions/Volume of milk in g/kg 40.7 40.5 20.7 As years go by, we expect the company to expand in terms of production and efficiency in environmental sustainability. This implies that, the company and all the stakeholders anticipate the volume of sales, milk production and water consumption to increase. In essence, the projection of these attributes in 2054 will be based on the rate on increase and decrease respectively. The above represents a simple projection of the picture in 2052 based on 40 times incremental and decreasing model (bloomberg.com). This implies that the attributes increasing, they do so by a rate of which is 40 times, the current rate and vice versa. When we consider the above table, we realize that, the CO2 emissions should decrease because the company will; continuously endeavour in sustaining its mission of reducing environmental emissions. The company works harder to ensure reduced CO2 is emitted into the environment. ENERGY Production of the dairy products is energy –intensive activity or process. Furthermore, the processes of manufacturing, production of the cold chain during transportation and storage are energy intensive sub-processes. On equal measure, heating and cooling the raw materials during processing consume a lot of energy. Emmi mostly use electricity and fossil fuel (primarily gas) and vehicle fuels-diesel. Emmi consumes around 120,000 MWh, which is equivalent to 20,000 average Swiss households (bloomberg.com). It is imperative to note that Emmi purchases standard mixed power to reduce the cost of expenditure. In the endeavours of the Emmi Company to reduce the energy consumption and sustenance of the environmental impacts, Emmi has started considering the environmental friendly energy options. For instance, the company has added a strategy on his list as one the fundamental selection criteria. The company’s criteria on this aspect are the purchasing of forklifts, which are less 20% energy consumable. It should be noted that, the fact that, Emmi has been at the helm of the Energy Agency for Industry since 2003 and continued regular reviews, which has been optimizing, energy requirements. On equal measure, Emmi is working hard to progress its energy effectiveness and replace CO2- intensive energy resources with lower-carbon options. For instance, oil fired systems have been replaced for technical and economical feasibility in a bid to embrace gas-fired and renewable energy sources which are in tandem with the firm’s mission of reducing the energy –intensive sources (bloomberg.com). This is a clear indication, that, the company is committed to fulfil the tenets of its mission. This implies that, by 2052, the company would have fully embraced less energy-intensive processes and systems and this would lead to reduced energy consumption. The projection above confirms this anticipated reduction in electricity use due to the intended replacement of gas- fired sources. Consider the following energy use in 2011 through 2012 in comparison with the anticipated energy use in 2052. Off curse in tandem with the firm’s mission of reducing energy intensive sources, we expect the energy use in 2052 to reduce. Description 2011 2012 2052 Heating oil (Extra light) 17, 137 19, 733 109, 700 Heating oil (Medium and heavy) - - - Natural gas (Fuel) 159, 929 153, 321, 70,635 Petrol 438 477 637 Diesel oil 25, 922 21, 428 6,650 District heating (consumption) 17, 875 17, 888 17,360 District heating (Production) -950 -985 --1120 Electricity 120, 344 119 130 14,825 Wood chips, pellets 2,156 2,166 2,566 Biogas (own production) 1685 1273 475 Rapeseed Oil methyl ester 213 149 27 Total 334,581 344, 750 221,775 Considering the above table, a decreasing trend is observable from 2011 through 2012. This confirms Emmi’s efforts of enhancing environmental sustainability. This implies that, a decreasing trend of energy –intensive sources and increasing of gas-fired sources is inevitable through 2052. This brings us to the approximating trend, which will give us the anticipated projection for 2052 as indicated above. WATER Water is a fundamental component in the production process. It is primarily used for cooling, hygiene, course leaning and heating purposes. The amount of wastewater released into the public sewage is not only an environmental issue as well as financially attributed. Emmi has been embracing a sequence of water optimization projects in a bid to reduce the fresh water requirements (group.emmi.com). For instance, application of water reusing severally at diverse stage has considerably helped in saving water loss and reducing the volumes of water wastes released. On equal measure, the configuration of the steam network at the Suhr production facility is a big step because it reduced the quantity of steam pressure required from 24 pars to 16 pars. The steam pressure reduction resulted into the reduction of thermal losses, which caused a consequent annual energy saving of 1%. If this amount is approximated in the model above, we have the water waste reducing from 2.0 in 2012 t0 less than 1.0 in 2052. In addition, the introduction of environmental measures such as the one introduced in by Canton of Lucerne in Dagmersellen required the facility to pre-treat its own ate water (group.emmi.com). This relieved strain on the public sewerage plant. These steps saw reduction of CO2 emissions to environment and consequent decline of water wastes. Continued steps of this kind confirm the projected water waste in 2052. WASTE There are numerous economic benefits attributed to avoiding waste by Emmi. For instance, there is immense reduction in the waste disposal costs. In addition, prevention of product loss in the production process reduces the rate of consumption of valuable resources (group.emmi.com). On equal measure, the aspect of waste reuse has enhanced possible beneficial use of materials, which would have been previously disposed of (group.emmi.com). This practice is in tandem with Emmi’s principle of waste management activities, which involved in avoiding, reducing and recycling. The 20% reduction of waste production in 2012 helps approximate the continuous trend unit 2052. The decreasing trend confirms the approximated value of waste volume in 2052 (group.emmi.com). High level of environmental sustainability of Emmi relative to the global business can be enhanced to another superior level by a continued encouragement of the Emmi employees to take sound actions fundamental for everyday sustainability. For instance, Emmi was able to break the 100 million cup mark in sales of the Caffe latte product in 2012 whilst able to decompose over 1900 tons of coffee ground into biomass energy. CO2 EMISSIONS The issue of CO2 emissions is one of the common problems experienced by numerous corporations across the globe. The government of Switzerland embraces the CO2 levy as a fundamental instrument for achieving official climate protection targets. It makes the fossil fuels more expensive thus encouraging a high level of economical use. In addition, this move promotes the use of low carbon options Emmi (group.emmi.com). The organizations that involve intensive energy use were to be exempted from the CO2 levy if only they endeavoured to reduce their green house emissions. This study finds that Emmi took advantage of this privilege and cooperated with the federal government to sketch up a CO2 agreement that required the CO2 intnsity-CO2 emissions relative to production volume to be reduced to 79%. This strategy confirms our thinking that the CO2 emissions will continually reduce in the years to come because of the functioning systems, policies and mission of Emmi (group.emmi.com). On equal measure, the energy efficiency is likely to increase to 12% in 2014 and up to 24-355 in 2052. Climate Targets for 2052 The organization has implemented numerous diverse measures aimed at reducing its CO2 emissions. The use of efficiency energy sources is being embraced on a continuous trend. Emmi has endeavoured in replacing the fossil fuels by low-carbon options such as biogas, which is ideal for milk processing. It is notable that achieving the anticipated climate target for 2052, Emmi has endeavoured to remain relevant in embracing the government policies. For instance, the exemption for CO2 applied was delivered on time (group.emmi.com). It is believable that, if Emmi continues with these projects relative to the government policies and the organization’s mission, it will achieve its anticipated climate target and environmental sustainability. Conclusion Emmi’s strategy in reducing its environmental impact relative to the sustainability in the global business is imperative. Reducing the volume of energy used, waste disposed, replacement of the fossil fuels with low carbon energy, replacing the energy intensive process with low energy processes are sure steps towards energy efficiency, economical use of resources and high level of production and consequent profits made yet in an environmentally sustained conditions. These endeavours make Emmi one of the competitive firms in the world business that is committed in achieving all that is enshrined in its mission statement for the welfare of not only its employees and the surrounding but also work in tandem with the global requirements of environment sustainability conditions. With the embracing of the governmental policies and internal mechanisms on global business and environmental sustainability, Emmi will achieve the 2052 projected figures of efficiency, energy and waste disposal levels. List of references http://group.emmi.com/fileadmin/user_upload/emmi_group/investor_relations/reports/pdf/Emmi_Sustainability_Report_2_GRI_Index.pdf http://www.just-food.com/companies/emmi_id292 http://www.bloomberg.com/article/2014-02-06/a0A1wSwwo88Q.html Read More