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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 />

G4-EC7, Procurement practices G4-DMA, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15,<br />

G4-HR10, Local communities G4-DMA, G4-SO9, G4-SO10<br />

The Nescafé Plan<br />

Our commitment<br />

Cont<strong>in</strong>uously improve <strong>our</strong> green<br />

coffee supply cha<strong>in</strong><br />

We have modified the word<strong>in</strong>g of <strong>our</strong> coffee commitment to<br />

<strong>in</strong>clude the work of Nespresso. For added clarity, <strong>our</strong><br />

objectives now specify the areas covered by Nescafé <strong>and</strong><br />

those covered by Nespresso.<br />

Our objectives<br />

By 2020 – Nescafé to s<strong>our</strong>ce 90 000 tonnes of coffee<br />

that is compliant with the Susta<strong>in</strong>able Agriculture<br />

Network pr<strong>in</strong>ciples.<br />

<strong>Nestlé</strong> is also committed to reduc<strong>in</strong>g energy <strong>and</strong> water<br />

usage <strong>in</strong> <strong>our</strong> factories. With<strong>in</strong> <strong>our</strong> Nescafé Plan, we have<br />

specific targets to reduce the energy <strong>and</strong> water used <strong>in</strong> the<br />

production process:<br />

• By 2020, reduce the energy used per tonne of soluble<br />

coffee by 20% versus 2010 levels; <strong>and</strong><br />

• By 2020, reduce the water used per tonne of soluble coffee<br />

by 30% versus 2010 levels.<br />

In the last f<strong>our</strong> years, we have reduced energy usage by 11%<br />

<strong>and</strong> water usage by 32%.<br />

Reduction <strong>in</strong> energy usage per tonne of soluble coffee at<br />

Nescafé Plan factories (% reduction s<strong>in</strong>ce 2010 basel<strong>in</strong>e)<br />

0<br />

By 2020 – Nescafé to improve the quality, quantity <strong>and</strong><br />

susta<strong>in</strong>ability of its coffee supply cha<strong>in</strong> by distribut<strong>in</strong>g<br />

220 million coffee plantlets.<br />

Cumulative total of coffee plantlets distributed<br />

through the Nescafé Plan (million)<br />

2012–2014 <strong>2015</strong><br />

Goal: 220 million by 2020<br />

73.8 26.8<br />

Total <strong>2015</strong>: 100.7 million<br />

% reduction<br />

-10<br />

-20<br />

-30<br />

2010 2013 2014 <strong>2015</strong><br />

Basel<strong>in</strong>e<br />

Target 20% reduction<br />

The Nescafé Plan is a global <strong>in</strong>itiative br<strong>in</strong>g<strong>in</strong>g together <strong>our</strong><br />

<strong>commitments</strong> <strong>and</strong> activities developed to support the<br />

responsible farm<strong>in</strong>g, production, supply <strong>and</strong> consumption of<br />

coffee. The Nescafé Plan has been rolled out <strong>in</strong> several<br />

countries s<strong>in</strong>ce it started, <strong>and</strong> was active across 19 countries<br />

<strong>in</strong> <strong>2015</strong>. The Nescafé Plan is designed to positively <strong>in</strong>fluence<br />

the value cha<strong>in</strong>s so that coffee farmers:<br />

• Become more efficient <strong>and</strong> produce better-quality coffee;<br />

• Ensure compliance with 4C Association’s Code of Conduct<br />

(see below) <strong>and</strong> the pr<strong>in</strong>ciples of SAN (an <strong>in</strong>ternational<br />

coalition of lead<strong>in</strong>g conservation groups <strong>in</strong> susta<strong>in</strong>able<br />

agriculture, with st<strong>and</strong>ards for environmental protection,<br />

social responsibility <strong>and</strong> economic vitality); <strong>and</strong><br />

• Improve their environmental <strong>and</strong> social footpr<strong>in</strong>ts, lead<strong>in</strong>g<br />

to better liv<strong>in</strong>g conditions.<br />

With<strong>in</strong> these activities, there are specific efforts to empower<br />

women <strong>and</strong> young people to become leaders <strong>in</strong> the<br />

coffee sector.<br />

We will cont<strong>in</strong>ue to procure Responsibly S<strong>our</strong>ced green<br />

coffee <strong>and</strong> <strong>in</strong>vest <strong>in</strong> CSV <strong>in</strong>itiatives aimed at promot<strong>in</strong>g<br />

cont<strong>in</strong>uous improvements for coffee farmers participat<strong>in</strong>g <strong>in</strong><br />

<strong>our</strong> value cha<strong>in</strong>s.<br />

Reduction <strong>in</strong> water usage per tonne of soluble coffee at<br />

Nescafé Plan factories (% reduction s<strong>in</strong>ce 2010 basel<strong>in</strong>e)<br />

% reduction<br />

0<br />

-10<br />

-20<br />

-30<br />

-40<br />

2010 2013 2014 <strong>2015</strong><br />

Basel<strong>in</strong>e<br />

Target 30% reduction<br />

Read more <strong>in</strong> the Environmental susta<strong>in</strong>ability <strong>and</strong><br />

Water chapters.<br />

The focus on good agricultural practices will cont<strong>in</strong>ue,<br />

delivered <strong>in</strong> many orig<strong>in</strong> countries via tra<strong>in</strong><strong>in</strong>g <strong>and</strong> assistance<br />

through <strong>our</strong> global partnership with the Ra<strong>in</strong>forest Alliance <strong>and</strong><br />

actively supported by plant science research undertaken by<br />

<strong>our</strong> R&D Centre <strong>in</strong> T<strong>our</strong>s, France. These practices are also<br />

reflected <strong>in</strong> <strong>our</strong> RSG <strong>and</strong> specific requirements for coffee,<br />

which apply to all countries where we s<strong>our</strong>ce green coffee.<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> 116

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