Nestlé’s MILO Starts Operation of EV Trucks, Pioneering Green Logistics in Malaysia

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Chembong, July 15, 2024 – Ramping up its MILO Sayang Bumi platform of initiatives to positively impact the environment, MILO, Malaysians’ favourite nutritious beverage brand, is pioneering the use of electric vehicle (EV) trucks to transport MILO ingredients for its cross-border supply between Malaysia and Singapore. With this innovative solution, MILO and Nestlé Malaysia continue to lead the way forward towards a greener future, this time by adopting more sustainable logistics.

In collaboration with key partners Swift Haulage Berhad, Trumas Damai Sdn Bhd, Shell Malaysia and Volvo Trucks, and supported by the Ministry of Transport Malaysia and Road Transport Department, this initiative entails the usage of EV trucks to transport MILO ingredients between Nestlé’s Chembong Factory in Malaysia and the Company’s Jurong facility in Singapore. By covering 280km per trip and with an average of 1,750 trips annually, this groundbreaking initiative has the potential to reduce carbon emissions by some 1,000 tonnes annually. The Company aims to procure an additional four EV trucks within the next six months, with the aim of transforming the route into a 100% green lane.

This initiative builds on Nestlé's ongoing efforts to reduce the Company’s carbon footprint. Earlier this year, Nestlé Malaysia also marked a significant milestone with the operational startup of a Biomass Boiler at its Chembong Factory, Nestlé’s largest MILO plant in the world, reducing CO2 emissions by some 14,000 tonnes annually. Additionally, the brand is continuing to scale up its sustainability efforts by installing solar panels in all its MILO sampling trucks to power electrical equipment, with a target to complete the outfitting of the entire fleet by 2027. Overall, the Company is delivering on its environmental commitments, with total CO2 emissions being already 25% lower than its 2018 baseline as of the end of 2023, two years ahead of its initial plan, hence on track to reach a 50% reduction by 2030.

Special guest to the launch was YB Tuan Loke Siew Fook, Minister of Transport Malaysia, who commented, "Nestlé Malaysia’s green logistics initiative to adopt EV trucks for cross-border transportation aligns with our national objective of reducing carbon emissions and promoting sustainable transportation solutions. I urge more companies to follow Nestlé’s lead in embracing responsible and innovative technologies that can minimise environmental impact while supporting operational efficiency. Initiatives such as this bring us one step closer to realising a more sustainable low-carbon future for Malaysia and attaining our target of net-zero emissions by 2050.”

Juan Aranols, Chief Executive Officer of Nestlé Malaysia, further shared, "This pioneering initiative under the MILO Sayang Bumi umbrella reflects Nestlé's constant dedication to delivering operational excellence while advancing on our sustainability journey. Other key initiatives include our shift towards sustainable packaging solutions, such as the adoption of 100% paper straws and recyclable materials for MILO UHT packs. Our commitment to eco-friendly practices extends to promoting effective plastic recycling in communities and schools, notably through the MILO CAREton Project, which successfully reclaimed 1,409 tonnes of beverage cartons in 2023, or the nearly 200,000 households we are reaching through Nestlé Malaysia’s “Project SAVE” for collecting and segregating for recycling of nearly 20,000 tonnes of post-consumer waste yearly. Moreover, Nestlé Malaysia has made significant advancements in reducing our carbon footprint by optimising distribution, logistics, and transitioning to Green Power in 2022, resulting in an almost 90% decrease in grid electricity emissions. Our iconic MILO brand has always been the ‘green’ champion showcasing Nestlé Malaysia’s efforts, and through efforts such as these, we are reinforcing our commitment to advance MILO’s journey towards carbon neutrality.”  

On top of this, further driving sustainable logistics in its operations, Nestlé Malaysia also recently inked a seven-year Memorandum of Understanding with local logistics partner Malconrep Depot (M) Sdn Bhd. This collaboration harnesses the capabilities of a state-of-the-art automated warehouse facility with a capacity for more than 30,000 pallets in Port Klang, setting new standards for logistical innovation. The partnership's multifaceted approach optimises operations and transportation with cutting-edge technology, while also supporting local businesses and contributing to carbon emissions reduction.

About MILO Sayang Bumi 
MILO Sayang Bumi is MILO’s pledge to embrace sustainable practices in improving its products and processes for the good of the planet. This initiative aligns with the brand’s goal to educate the public, promote plastic collection and recycling, and systematically act on the brand’s carbon footprint. Initiatives currently being expanded include the CAREton Project which enables the collection and recycling of UHT packs, the elimination of plastic straws from all its products, installation of solar panels in MILO sampling trucks, educational programmes on recycling and reusing in schools, and multiple initiatives to reduce the carbon footprint of its operations (ingredients, manufacturing, logistics). These efforts demonstrate Nestlé's commitment to sustainable practices and our promise of delivering GOOD FOOD, GOOD LIFE to all.

About Nestlé Malaysia
Nestlé is the world’s largest food and beverage manufacturer. Headquartered in Switzerland, Nestlé is present in more than 180 countries around the world, and our 270,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Our performance is driven by our Nutrition, Health and Wellness strategy. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products. We are committed to improving the lives of the communities in which we operate, whilst maintaining our Halal excellence and integrity. To learn more about Nestlé, do visit https://www.nestle.com.my/ask-nestle/we-are-nestle.

For more information, please contact: 

Shaheen Zaffar
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6456
E-mail: [email protected] 

Sonyia Ambi or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348
E-mail: [email protected]