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Nestlé in society Creating Shared Value and meeting our commitments 2015

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<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />

Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />

Nutrition, health<br />

<strong>and</strong> wellness<br />

Rural development<br />

Water<br />

Environmental<br />

susta<strong>in</strong>ability<br />

Human rights<br />

<strong>and</strong> compliance<br />

Our<br />

people<br />

Economic performance G4-DMA, G4-EC1, Compliance G4-DMA (Environmental), Transport G4-DMA, Overall G4-DMA<br />

The full report with complete GRI Index can be found on <strong>our</strong><br />

CSV website (www.nestle.com/csv). Also, for the first time this<br />

year, we are report<strong>in</strong>g aga<strong>in</strong>st the newly published UN Guid<strong>in</strong>g<br />

Pr<strong>in</strong>ciples Report<strong>in</strong>g Framework on Human Rights. We have<br />

<strong>in</strong>corporated report<strong>in</strong>g on the 11 identified salient human<br />

rights issues <strong>in</strong>to <strong>our</strong> exist<strong>in</strong>g CSV report to demonstrate the<br />

<strong>in</strong>tegral nature of respect for human rights to <strong>our</strong> role <strong>in</strong><br />

<strong>society</strong>. Susta<strong>in</strong>ability report<strong>in</strong>g is no longer simply a collection<br />

of anecdotal stories <strong>and</strong> data, but rather a holistic exercise <strong>in</strong><br />

<strong>in</strong>ternalis<strong>in</strong>g <strong>and</strong> improv<strong>in</strong>g a company’s commitment to<br />

susta<strong>in</strong>able development <strong>in</strong> a way that can be demonstrated to<br />

both <strong>in</strong>ternal <strong>and</strong> external stakeholders <strong>and</strong> shareholders alike.<br />

As members of the International Integrated Report<strong>in</strong>g Council,<br />

we will cont<strong>in</strong>ue to show the connection between <strong>our</strong><br />

bus<strong>in</strong>ess <strong>and</strong> <strong>our</strong> societal activities.<br />

CSV <strong>in</strong> support of the Susta<strong>in</strong>able<br />

Development Goals<br />

This report<strong>in</strong>g year was important, not just for <strong>Nestlé</strong> but for<br />

the United Nations, civil <strong>society</strong> <strong>and</strong> the private sector as a<br />

whole. In September <strong>2015</strong>, 193 Member States of the UN<br />

adopted 17 new Susta<strong>in</strong>able Development Goals (SDGs) to<br />

def<strong>in</strong>e global priorities from now until 2030. We are review<strong>in</strong>g<br />

<strong>our</strong> <strong>commitments</strong> aga<strong>in</strong>st the SDGs <strong>and</strong> believe we should<br />

focus on specific goals where, by the nature of the bus<strong>in</strong>ess we<br />

are <strong>in</strong>, we feel we can maximise <strong>our</strong> impact on a global scale.<br />

The <strong>2015</strong> <strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>: Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> report is<br />

<strong>our</strong> third <strong>in</strong> the series based on meet<strong>in</strong>g <strong>our</strong> societal<br />

<strong>commitments</strong>. We firmly believe that <strong>Nestlé</strong>’s growth over the<br />

last one-<strong>and</strong>-a-half centuries has been built upon <strong>in</strong>tegrated<br />

th<strong>in</strong>k<strong>in</strong>g where bus<strong>in</strong>ess <strong>and</strong> societal needs meet. This<br />

fundamental belief will help us accelerate <strong>our</strong> contribution to<br />

quality of life while stay<strong>in</strong>g true to <strong>our</strong> conviction that, for <strong>our</strong><br />

bus<strong>in</strong>ess to prosper <strong>in</strong> the long term, we must deliver value for<br />

shareholders, the communities <strong>in</strong> which we operate <strong>and</strong><br />

<strong>society</strong> as a whole.<br />

We have worked with dairy farmers throughout <strong>our</strong> 150-year history.<br />

Above, farmers deliver milk to the Anglo-Swiss Condensed Milk Company<br />

factory <strong>in</strong> Cham, Switzerl<strong>and</strong>, <strong>in</strong> 1899.<br />

Through the Village Women Dairy Development Programme, <strong>Nestlé</strong><br />

empowers women <strong>in</strong>volved <strong>in</strong> dairy farm<strong>in</strong>g to improve milk quality <strong>and</strong><br />

productivity. Tra<strong>in</strong><strong>in</strong>g is conducted by all-female teams.<br />

Harvard case study on <strong>Nestlé</strong><br />

<strong>and</strong> Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />

Strong SDG-CSV l<strong>in</strong>kages<br />

End hunger, achieve<br />

food security <strong>and</strong><br />

improved nutrition <strong>and</strong><br />

promote susta<strong>in</strong>able<br />

agriculture<br />

Ensure access to<br />

water <strong>and</strong> sanitation<br />

for all<br />

Take urgent action to<br />

combat climate<br />

change <strong>and</strong> its<br />

impacts *<br />

Ensure healthy lives<br />

<strong>and</strong> promote<br />

well‐be<strong>in</strong>g for<br />

all at all ages<br />

Ensure susta<strong>in</strong>able<br />

consumption <strong>and</strong><br />

production patterns<br />

*<br />

Acknowledg<strong>in</strong>g that the United<br />

Nations Framework Convention on<br />

Climate Change is the primary<br />

<strong>in</strong>ternational, <strong>in</strong>tergovernmental<br />

forum for negotiat<strong>in</strong>g the global<br />

response to climate change.<br />

At the end of <strong>2015</strong>, Professors Michael Porter <strong>and</strong> Mark Kramer<br />

wrote a teach<strong>in</strong>g case study about <strong>Nestlé</strong> <strong>and</strong> Creat<strong>in</strong>g <strong>Shared</strong><br />

<strong>Value</strong> for the Harvard Bus<strong>in</strong>ess School. The case study shows<br />

how <strong>Nestlé</strong> applies a shared value strategy to drive growth <strong>and</strong><br />

competitive success <strong>in</strong> Nutrition, Health <strong>and</strong> Wellness, while<br />

address<strong>in</strong>g societal issues that impact <strong>our</strong> bus<strong>in</strong>ess, <strong>in</strong>clud<strong>in</strong>g<br />

water, rural development <strong>and</strong> susta<strong>in</strong>ability. It was taught for the<br />

first time <strong>in</strong> December <strong>2015</strong>, <strong>in</strong> the presence of <strong>our</strong> Chairman<br />

Peter Brabeck-Letmathe <strong>and</strong> will soon become a teach<strong>in</strong>g case<br />

study available to bus<strong>in</strong>ess schools for download globally.<br />

<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 11

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