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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 />

Water G4-DMA, G4-EN10, Overall G4-DMA<br />

Reduc<strong>in</strong>g water withdrawals<br />

Our objectives<br />

By <strong>2015</strong> – Reduce direct water withdrawals per tonne of<br />

product <strong>in</strong> every product category to achieve an overall<br />

reduction of 40% versus 2005.<br />

Reduction of direct water withdrawals<br />

per tonne of product versus 2005 (%)<br />

% reduction<br />

0<br />

-10<br />

-20<br />

-30<br />

-40<br />

-50<br />

2005 2013 2014 <strong>2015</strong><br />

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

Target 40% reduction<br />

By 2020 – Reduce direct water withdrawals per tonne<br />

of product <strong>in</strong> every product category to achieve an<br />

overall reduction of 35% versus 2010.<br />

In <strong>2015</strong>, we withdrew 2.57 m 3 of water per tonne of product,<br />

<strong>and</strong> reduced direct water withdrawals per tonne of product <strong>in</strong><br />

every product category, with an overall reduction of 6.2%. This<br />

equates to a 41.2% reduction s<strong>in</strong>ce 2005, mean<strong>in</strong>g that we<br />

met <strong>our</strong> <strong>2015</strong> objective to reduce direct water withdrawals per<br />

tonne of product <strong>in</strong> every product category <strong>and</strong> achieve an<br />

overall reduction of 40% s<strong>in</strong>ce 2005.<br />

Hav<strong>in</strong>g met this objective, we have set <strong>our</strong>selves a new<br />

10-year target for 2020, with a 2010 basel<strong>in</strong>e. As we make <strong>our</strong><br />

processes more efficient, it becomes <strong>in</strong>creas<strong>in</strong>gly more<br />

challeng<strong>in</strong>g to improve at the same rate, so <strong>our</strong> new target is<br />

for a 35% reduction rather than the previous 40%. To date, we<br />

have reduced water withdrawals per tonne of product by 22%<br />

s<strong>in</strong>ce 2010.<br />

We also recycled or reused 7.7 million m 3 of water <strong>in</strong> <strong>our</strong><br />

operations <strong>in</strong> <strong>2015</strong> – a 2% annual reduction – <strong>and</strong><br />

approximately 5.5% of <strong>our</strong> total water withdrawals.<br />

<strong>Nestlé</strong> cont<strong>in</strong>ues to implement programmes to reduce<br />

water withdrawals, reuse water <strong>and</strong> use alternative water<br />

s<strong>our</strong>ces such as ra<strong>in</strong>water harvest<strong>in</strong>g. We are also us<strong>in</strong>g<br />

‘Water Target Sett<strong>in</strong>g’ methodology to identify opportunities<br />

to further reduce <strong>our</strong> water withdrawal <strong>in</strong> <strong>our</strong> factories.<br />

In <strong>2015</strong>, <strong>in</strong>vestments totall<strong>in</strong>g CHF 25.8 million were<br />

approved to spend on water-sav<strong>in</strong>g programmes <strong>and</strong> we are<br />

currently conduct<strong>in</strong>g 362 water-sav<strong>in</strong>g projects at <strong>our</strong><br />

factories; these are projected to save around 1.7 million m 3 of<br />

water a year.<br />

Water withdrawn at <strong>our</strong> factories by s<strong>our</strong>ce<br />

Water withdrawn (million m 3 ) 2014 <strong>2015</strong><br />

Surface water 15.0 12.3<br />

Ground water 77.0 75.5<br />

Municipal water 55.0 52.5<br />

Ra<strong>in</strong>water 0.035 0.034<br />

Total 147 140<br />

Direct water withdrawals by product category<br />

Water withdrawn (m 3 /per tonne) 2005 <strong>2015</strong> Variation<br />

Powdered <strong>and</strong> liquid beverages 22.91 7.20 -68.6%<br />

Water * 1.96 1.53 -22.1%<br />

Milk products <strong>and</strong> ice cream 8.33 4.08 -51.0%<br />

Nutrition <strong>and</strong> healthcare 19.34 10.11 -47.7%<br />

Prepared dishes <strong>and</strong> cook<strong>in</strong>g aids 7.12 3.96 -44.4%<br />

Confectionery 9.22 4.04 -56.2%<br />

Petcare 1.44 1.10 -23.9%<br />

Overall withdrawal rate 4.37 2.57 -41.2%<br />

*<br />

Beyond the litre of water that goes <strong>in</strong>to the bottle, <strong>Nestlé</strong> Waters has made significant<br />

achievements <strong>in</strong> reduc<strong>in</strong>g the amount of additional water required to produce one litre of<br />

product at the factory. In 2005, this additional water represented 0.96 litres, which was<br />

reduced by 45% to reach 0.53 litres <strong>in</strong> <strong>2015</strong>.<br />

Total water recycled <strong>and</strong> reused by <strong>our</strong> factories<br />

Total direct water use (million m 3 ) 2014 <strong>2015</strong><br />

Water withdrawal 147.0 140.0<br />

Water discharge 87.0 82<br />

Water recycled or reused 7.5 7.7<br />

A zero water first <strong>in</strong> Mexico<br />

Exemplify<strong>in</strong>g <strong>our</strong> commitment to improv<strong>in</strong>g <strong>our</strong> impact on<br />

natural water res<strong>our</strong>ces, we have <strong>in</strong>troduced ‘zero water’<br />

technology at <strong>our</strong> factory at the heart of Lagos de Moreno <strong>in</strong><br />

the Mexican state of Jalisco. This system – a world first <strong>and</strong><br />

unique to <strong>Nestlé</strong> – enables it to operate without us<strong>in</strong>g any local<br />

groundwater.<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> 145

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