In order to better comprehend issues like water shortage or water pollution, it is fundamentall to consider production processes since water problems are often connected to a country’s economy. Faced with a serious water crisis, countries like Australia try to monitor national water plans in order to reduce water consumption as much as possible while still providing the needed water supply for the survival and well-being of the population. Before trying to elaborate a plan in order to control or change the water demand amongst the population, state officials should start by looking at the essence of the actual demand. For this reason, “national water use statistics should be extended in order to include full national water footprint accounts since this broadens the basis for the formulation of a national water plan” (Source: http://www.waterfootprint.org/?page=files/NationalWaterFootprint). In order for a national water project to be sustainable on the long term, a government needs to establish coherent national policies in all sectors involve. For instance, it is useless to establish a water plan it agriculture policies are not modified to respect the same coherent direction.

The water footprint of a nation can be defined as the total amount of water used to produce the goods and services consumed by the population of that nation. Considering that many goods that are consumed in a country are produced abroad, the water footprint of a nation is made out of the internal water footprint (water used inside the country) and the external water footprint (water used to produce a good abroad). In addition, there are three categories that can be found in a nation’s water footprint. The first is the blue water footprint, “the volume of freshwater that evaporated from the global blue water resources”. Second comes the green water footprint, “the volume of freshwater evaporate from the global green water resources (rainwater)” and finally the grey water foot print, “the volume of polluted water, calculated as the volume that is required to dilute pollutants to such an extent that the quality of the water remains about agreed water quality standards” (Source: http://www.waterfootprint.org/?page=files/NationalWaterAccountingFramework). Governments need to start by reducing the water footprint of their own structures and offices, in order to demonstrate the good example, so they can later work closely with industries in order to promote transparency and the need to raise social awareness amongst citizens.

Professor and expert, tell us that the  water footprint indicator permits “the attention to shift to the role of consumers and large food processors and retailers that process and sell final consumer goods” (Source: http://www.exploringgeopolitics.org/Interview_Hoekstra_Arjen_Virtual_Water_National_Footprints_Global_Economy_Value_Price_Pollution_Depletion_Management_Environment_Intensive_Exports_Imports.html). He puts the emphasis on the fact that each individual consumer and every company can have a tremendous impact on problems such as water depletion or pollution. He also reminds us that American citizens should make the biggest effort since the USA has the largest national footprint, per head it is double the world average! The main reason is due to the fact that Americans consume a lot of highly water-intensive goods, like meat. On the contrary, developing countries have a high water footprint not due to their large water consumption but because their agriculture methods are tremendously inefficient leading to a great waste of water.

So far, except for various debates and propositions, water remains a public resource, without any real market rules to establish trade price. Yet, it is important not to take it for granted because even if it seems endless and accessible water does have a very high value.  Treating water like it has no value leads to scarcity and other serious problems. Establishing a national water footprint is only the first step towards a more responsible and self-conscious attitude. The first step towards putting an end to the most avoidable natural crisis we could face.

In addition to Pepsi’s corporate initiative, the firm has launched an innovative marketing strategy entitled “The Dream Machine”. “This machine is not a simple recycling bin but a dream machine”, says the company, because it do not only recycle but also try to improve the life of individuals  (Source: http://www.facebook.com/dreammachine). In partnership with Waste Management Inc.,this giant corporation has launched dream machine kiosks in various parts of America that work on a reward system that gives consumers the opportunity to collect points for their recycling activities.”The program also intends to provide funding to the Entrepreneurship Bootcamp for Veterans with Disabilities (EBV), a national program offering free, experiential training in entrepreneurship and small business management to post-9/11 veterans with disabilities” (Source:http://pepsico.presslift.com/the-pepsico-dream-machine). The more American citizens recycle the more Pepsi will directly contributed to the Bootcamp for Veterans with Disabilities. Recycling takes a turn and becomes not only saving the plant but helping out people who need it. The intiative is also promoted on You Tube.

The long term sustainable Pepsi Refresh Project gives the possibility to all American citizens to propose a development idea online that can range into a different set of categories: health, arts and culture, food and shelter, the planet, neighborhoods and finally, education. Pepsi accepts the submission of a thousand ideas eve months and 32 potential Pepsi grants are awarded to the most voted ideas. The winner projects have the opportunity to receive a grant that ranges from $5k up to $250k. Various projects all across America have already been approved and funded like the “Enrich the lives of individuals with disabilities through the arts”, a project that was granted $50k or the “Save animals from euthanasia in Midland Michigan” project that was award $5k. Each winner project has a follow up on the Pepsi website with a section reserved to how the grant is being spent. It is a shame that this initiative is reserved only to American citizens because it is obvious that a lot of other country of the world would have a lot of valid and much-needed projects to propose.  The website has recently created a special section called “Do Good for the Gulf” (Source: http://gulf.refresheverything.com/) where people can send their ideas or contributed to raise money in order to help the clean-up procedures and the safeguarding of all the water animals. According to the firm, a small change like implementing the cultural habit of recycling all cans, could implement a considerable change on the national scale.

On the water front, PepsiCo has dedicated a special section to water recycling in its annual environmental report. The company has three main goals in terms of water conservation:” improve their water use efficiency by 20 percent per unit of production by 2015, strive for positive water balance in our operations in water-distressed areas and finally provide access to safe water to three million people in developing countries by 2015″ ( Source: http://pepsico.com/annual09/environmental_sustainability.html). This corporate sustainability strategy is a wise marketing strategy in order to increase the brand equity and could perhaps also be a way to cover the various controversies that have been around PepsiCo and its many brands like its bottled water brand Aquafina. This article present you a general overview of the controversy in order to inform you in the most objective manner all the facets of this world-know brand.

The bottle’s logo is composed of a blue label with a mountain scenery and the slogan: “Pure Refreshment”. This image marketed by Acquafina gives somewhat the wrong impression to many busy customers who are convinced they are buying “pure” water that is sourced from the mountain spring. In 2007, Pepsi-Cola had to publicly announce that the labels of the Aquafina bottles will be changed in order to clearly indicate that their water does not come from a mountain source but is instead purified and treated tap water. This news cause a lot of stir amongst customers and environmentalist groups that are already anti-plastic water bottles. The bottles were labeled : “Bottled at the source P.W.S  and only last year Americans have spent about $2.17 billion on Aquafina” (Source: http://money.cnn.com/2007/07/27/news/companies/pepsi_coke/). Spending such a considerable amount of money to drink tap water and waste a ridiculous quantity of water could have been avoided by a major transparency politics on the side of Acquafina. According to NaturalNews.com, “PepsiCo only agreed to tell the truth on their bottled water labels after being pressured by Corporate Accountability International (CAI), a non-profit organization that helps protect consumers from cooperate abuse” (Source: http://www.naturalnews.com/021962.html). The CAI gathered and instigated customers from all over the world in order to voice their complains directly to PepsiCo that later decided to add the phrase : “public water source” to the label. For many, this is still not clear and explicative enough since it could imply that Acquafina in itself is a public water source. This controversy helped to shade the light on other giant cooperation that were doing exactly the same thing. “Coca-Cola does not have plans to change the labeling on its Dasani brand bottled water, despite the fact the water also comes from a public water supply” (Souce: http://money.cnn.com/2007/07/27/news/companies/pepsi_coke/).

Despite all, Aquafina and Pepsi both are fervent believers in cooperate social responsibility based on the eco-green attitude they promote on their website. Aquafina’s link A refreshed commitment gives simple tips to costumers on how to conserve water while publicizing their new plastic water bottle that uses 35% less plastic than the one from 8 years ago. (Source: http://www.aquafina.com/). Any giant cooperation has a greener side and a darker side that is more business oriented. Giant firms are not charities and are obviously not expected to work for the good of the world.  The fact that they are under the constant scrutiny of public opinion and the media, it forces them to adopt more long- term sustainable behaviors.

Water pollution that causes water-born disease are starting to spread over the population, yet, investors seem to be blinded by the cheap labor and the derisory costs and they forget to have serious considerations for the environment. According to statistics, “about 700 million Chinese drink water contaminated with waste. Consequently, water pollution sickens 190 million and causes an estimated 60 000 premature deaths annually” (Source: http://genascihk.wordpress.com/2010/02/07/chinas-deepening-water-crisis/). Foreign and local businesses need to realize that if this crisis expands the economy will suffer due to increasing need for health care, unemployment and therefore a decline in productivity. The prices of water in China remain to low and fail to be proportionate to the real costs of provision. Since the country lacked the funding for new water infrastructures, in the 1990s, it opened its water market to private local and international investors and companies. These new investments were often made in a hazardous context where regulation and policies lacked transparency and accountability. The Chinese government is still experimenting with policies and laws that could contain water pollution and also control investors in a more efficient manner.

This non-profit initiative works with investors and business in order to raise awareness to China’s water scarcity and to help them come up with long-term sustainable business, production and development plans best suited to the company’s demands. This organization works in direct collaboration with numerous NGOs and networks of experts of water issues. AWP is building a network of players that share the common interest of water preservation in order “to build knowledge that will lead to action to enhance the management of China’s water resources” (Source: http://www.asiawaterproject.org/about-us/who-we-are/).  AWP’s online portal serves as a useful intermediary player between investors, the Chinese government and environmentalist groups that want to protect water lands. This unique online resource provides many useful assets that contribute to water preservation. First of all, the website is offers a precious forum for discussion around issues like “the macro and micro impacts of water scarcity and water pollution; the changing regulatory landscape, growing challenges around water resource management; and how investors and companies evaluate water-related risks” (Source: http://www.asiawaterproject.org/about-us/who-we-are/information-portal/). In addition, this information portal gathers information on China’s water issues outlining new policies and changes in regulations in order to keep all interested actors always updated. This space for discussion and information and ideas exchanges between environmental experts and business men is an important resources insofar it manages to raise awareness to the water crisis issues from the perspective of its main target: the investors and foreign companies. The homepage is divided in key sectors that offer comprehensive information on the water crisis and the impact it is having on the economy.  An important section presents the latest key research for investors saving them the time and money to do the extra research and mapping of the social weather.

Publishing constant and up to date environmental information, is crucial for a country like China who desperately needs more transparency. China needs to raise water tariffs in order  to cover the costs to improve water resources and quality. A “green” outlook needs to be part of China’s future politics in order to make sure that their rapid economic growth is sustainable on the long run. The Asia Water Project is a concrete symbol of a more environmental outlook, and an authentic initiative that has established a bridge between the government and foreign investors.

The successful campaign seems to have conquered even coffee’s number one admirer and toughest critique: Italy. Perhaps, it is the company’s innovative marketing strategy with a special addition of an independent sustainable and environmental initiative that has the difference.

In 2009, the Rainforest Alliance, an agency that works to provide socially responsible alternatives to businesses and consumers, announced a new collaboration with Nestle Nespresso that they called “Ecolaboratrion”. This project has managed to consolidate and gave added value to Nespresso’s platform for sustainable development  (Portal: http://www.ecolaboration.com/#/aaa/en). According to their website, the Rainforest Alliance “promotes standards for sustainability that conserve wildlife and lands and ensure the well-being of workers and their communities” (Source: http://www.rainforest-alliance.org/about.cfm?id=mission). The farms that meet Rainforest Alliance’s set of criteria are given the right to use the Rainforest Alliance Certified seal in order to give their products an additional value on the market. Richard Girardot, CEO of the Nestlé has declared that the company wants “ to share value with farmers who grow these highly prized coffees. Their quality of life, environmental quality and quality in the cup are equally interlined” (Source: http://blog.natureair.com/index.php/tag/nespresso/). From a business perspective  this strategy is clever insofar it enhances the reputation and value of the brand. Yet, it is in inevitable to wonder if this sustainable development project remains only a one way project.  When looking at Nespresso’s website, the Ecolaboration project seems to be  mostly written   from a “western coporate perspective”: there is no way to find out based on what criterias, Nespresso has established its agenda setting for sustainable projects. In order to be successful and long-term oriented, Sustainability program need to be developed from the perspective of the target and promoted in the local language. From the Nespresso website, the point of view of local population in South America or Africa are lacking; in good faith we hope it is just a problem of major transparency on their website.

This partnership between Nespresso and the Rainforest Alliance is an attempt at uniting environmental commitment to cooperate interests in order to achieve long-term sustainable results. According to Michael Porter, member of the Nestlé Creating Shared Value Advisory Board, ” Nespresso’s innovative program, which helps farmers achieve higher prices, better yields, and greater environmental performance and sustainability, is not driven by charity but by creating value” (Source: http://www.creatingsharedvalue.org/post/2009/11/20/Nespresso-shares-new-insights-on-coffee-farm-economics.aspx).

At a time when global warming simply cannot be ignored, cooperation’s financial interest becomes automatically dependent of its relationship towards environmental issues. Nespresso isn’t trying to fool anyone by pretending it is a charity; for the firm, investing time and resources for environmental-friendly social development is a long-term asset that provides an added value to the company. When choosing between two similar concurring products, it appears that customers often resolve the dilemma by prefering the company with a green and eco-friendly mindset. Harvard Business School Professor Michael Porter confirms that “there is a long-term synergy between social and economic practices, a concept he calls shared value” (Source: http://www.rainforest-alliance.org/blog/entry.cfm?number=91). According to him, sustainability becomes a win-win situation for both the foreign company and the local population. As the living quality of the local population improves, their attitude towards “the colonial western company” improves and which directly impacts on the quality of their work. When Nespresso initially launched, environmentalists “criticized the system as they argued the aluminium coffee capsules generated too much waste” (Source: http://www.swissinfo.ch/eng/business/Nespresso_drinks_to_20_years.html?cid=5583848 ). Since then, it seems that the company paid attention to its critiques and started recycling their capsules. Indeed, Nespresso launched a brand new initiative in order to market and sell recyclable capsules. Based on the data, by 2013 Nespresso will have put systems in place to triple their capacity to recycle used capsules to 75%. In order to find out the closest colleting point near go on the official website of their ecological portal” (Source: http://www.ecolaboration.com/#/aaa/en/capsules/recycling).

Nespresso’s partnership with the Rainforest Alliance is a clever alliance that is benefiting both the world-know corporation and the environmentalist friendly group. By working closely together the two actors acquire a better understanding of the other’s perspective. The name of the portal “Ecolaboration” is self-explanatory insofar it highlights the importance of a collaboration, a two way strand communication in order to be able to successfully adopt a plan that is profitable both from a business perspective and from an environmental long-term conservative view. Based on their website, Nespresso is a strong believer that on the long run, environmental development and conservation, are an must-have extra asset for a successful corporation.

Commitment to Conservation

Johnson & Johnson is publicly commitment to environmental issues in order to achieve long-term sustainability for a healthy planet. Every five years, the company establishes new long-term goals in order to help reduce environmental damages.  The J&J family group started setting environmental goals in 1990 and has managed to accomplish some considerable results: since then, they have “reduce waste, water and energy use, raw material and packaging in order to adopt a more eco-friendly stance on their production. Their environmental goals include the reduction of carbon dioxide and water use. Their goal for 2010 is the “absolute reduction in CO₂ emissions of 7%”.  When it comes to water use, J&J’s goal is the reduction of 10% in water use compared to the 2005 baseline. So far, they have managed to reduce water use by 6% from 2005 to 2007″ (Source: http://www.jnj.com/connect/caring/environment-protection/environment-performance). New goals will go into effect in 2011.

Water scarcity is increasingly all around the world: the demand surpasses the available resource in an alarming manner.
Even India, where social and religious traditions have always held a great respect and reverence for water as a source of life, is now suffering from water-scarcity.
Achal is Manager of Environment, Health and Safety (EHS) at the Johnson & Johnson Consumer manufacturing facility in Baddi, Himachal Pradesh-region of India. Part of the activities he oversees, include a zero-discharge wastewater treatment facility: every drop of treated water is recuperated for irrigation and toilet flushing. Another very interesting initiative supported and applied by the company in India is rain harvesting (read our special post on rain harvesting and learn more: /rainwater-harvesting.html). Water is collected from the rooftops in order to be reused afterward. “The huge amount of water during monsoon season was going directly to the storm drain and was wasted,” says Achal. “So we decided to make us of it.
A tremendous effort made within these regions in order to share and exchange knowledge with the scope of spreading the word about the methods and importance of conserving water. Local initiatives and training on the field need to be done in order to assure that these strategies for water conservation become long-term sustainable projects. On a regular basis, training lectures are put together for the staff. A water storage tank was installed along with piping modification, at an Ethicon facility in Aurangabad, western India, in order to lower the overall water consumption.

Sustainable Report form 2008

Every annual report begins with an introduction of Johnson& Johnson about their corporate identity and their “credo”.  This last report put emphasis on transparency in order to achieve a greater level of trust and commitment towards customers and various stakeholders.  This reports highlights the importance and the difference that an eco-friendly packaging of products can do for the environment. Increasing recycled content, reducing packaging weight and eliminating materials like PVC (polyvinyl chloride) are just a few on the many favorable changes the company has managed to adopted in its packaging.

It is also important to mention that the report presents a special focus on water conservation. “In 2008, Johnson & Johnson used approximately 3 billion gallons of water-enough to fill 4, 600 Olympic-sized swimming pools- in our manufacturing process and our office facilities”

(Source: http://www.jnj.com/wps/wcm/connect/ad9170804f55661a9ec3be1bb31559c7/2008+Sustainability+Report.pdf?MOD=AJPERES).

According to their website, their goal is to reduce absolute water use by 10 percent from 2005-to 2010. Progress has been made in the water consumption went from 12,6% in 2005 to 11,5% in 2008.

Controversy from the past

Not long ago Johnson & Johnson had to recall a considerable amount of painkillers such as Tylenol and Motrin from pharmacies due to an “odor problem for some kinds of Tylenol” (Source: http://www.npr.org/blogs/health/2010/01/johnson_johnson_recalls_more_m_1.html) and because in various cases patients had developed secondary effects like nausea and vomiting after taking the medicines. The situation only got worst when associations of worried mothers publicly declared the presence of carcinogens (like formaldehyde and 1,4 dioxane) in baby bath’s products (Source: http://www.thegreenparent.com/2009/04/02/johnson-johson-responds-to-criticism/). In a certain sense it appears that the famous company has refused to fully respond to criticism replying that the traces of carcinogens are in such small quantity that they wouldn’t be harmful for any baby. Yet, the question still remains unanswered as to why a child’s baby shower needs to contain even small traces of carcinogens. Without neglecting their cause for environmental conservation, perhaps, the company should focus priorly on their customers that put all their trust into their products. It yet appears that things are looking up again for this world-know company, as it made it on Fortune 500’s list of top companies to be admired and even managed to rank number 4 in the over all category and number 2 in the pharmaceutical companies category. (Source: http://money.cnn.com/magazines/fortune/mostadmired/2010/snapshots/235.html)

Johnson & Johnson’s environmental accomplishments help to confirm their commitment to their Credo that states that we must “maintain in good order the property we are privileged to use, protecting the environment and natural resources.” With the situation of the environment today, corporations have no choice but to pay attention to environmental problematic in order to assure the survival of their company and to respect their raw resources they so desperately need in order to produce their goods and services.