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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 />

G4-2, G4-45<br />

Materiality<br />

For more <strong>in</strong>formation about material issues, please refer to page 38 of the global section.<br />

Us<strong>in</strong>g <strong>our</strong> materiality assessment<br />

Overall, <strong>our</strong> analysis concluded that all of the issues have a<br />

significant relationship to <strong>our</strong> bus<strong>in</strong>ess success. Some are<br />

We use the materiality assessment to ref<strong>in</strong>e <strong>commitments</strong><br />

For<br />

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

more <strong>in</strong>formation about material issues, please refer to page 38 of the global section.<br />

essential for protect<strong>in</strong>g <strong>and</strong> grow<strong>in</strong>g <strong>our</strong> revenues. Others<br />

identify Materiality<br />

areas for improvement. It is used by <strong>our</strong> Issues Round have significant <strong>in</strong>fluence on <strong>our</strong> cost structure, supply cha<strong>in</strong><br />

Table (which <strong>in</strong>cludes a member of the Executive Board), as <strong>and</strong> risk. While many can impact <strong>our</strong> reputation among<br />

well as by <strong>our</strong> markets <strong>and</strong> the corporate Risk Management customers <strong>and</strong> important stakeholders; this is somewhat<br />

team. The contents help us select the <strong>in</strong>formation conta<strong>in</strong>ed <strong>in</strong> <strong>in</strong>tangible to measure, but nevertheless key to <strong>our</strong> success. In<br />

this report, provid<strong>in</strong>g data that responds to stakeholder needs. general terms, if we manage these issues poorly, it exposes us<br />

We recognise that more evidence is needed to quantify the to risks, but if managed well, we can turn them <strong>in</strong>to<br />

value delivered by l<strong>in</strong>k<strong>in</strong>g bus<strong>in</strong>ess performance <strong>and</strong> social<br />

Assessment of material issues<br />

In commercial Japan, the materiality opportunities.<br />

of the follow<strong>in</strong>g matters was confirmed.<br />

impact, <strong>Nestlé</strong> <strong>and</strong> began we identify<strong>in</strong>g are work<strong>in</strong>g material to issues address for <strong>our</strong> bus<strong>in</strong>ess it. In 2014, <strong>and</strong> stakeholders we asked ● Food safety, such as residual pesticides, food fraud, secur<strong>in</strong>g food safety<br />

Accenture<br />

from a global<br />

to use<br />

perspective<br />

<strong>our</strong> materiality<br />

several years<br />

analysis<br />

ago, <strong>and</strong> s<strong>in</strong>ce<br />

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

then<br />

review<br />

we have<br />

the<br />

<strong>in</strong> the production area, GMO, <strong>and</strong> radiation<br />

Assessment of material issues<br />

In Japan, the To materiality learn of more the follow<strong>in</strong>g about matters the was analysis, confirmed. see <strong>our</strong> 2014 report.<br />

<strong>Nestlé</strong><br />

cont<strong>in</strong>ually<br />

began<br />

re-evaluated<br />

identify<strong>in</strong>g material<br />

these issues.<br />

issues<br />

In<br />

for<br />

<strong>2015</strong>,<br />

<strong>our</strong> bus<strong>in</strong>ess<br />

<strong>Nestlé</strong> Japan<br />

<strong>and</strong> stakeholders<br />

evaluated <strong>our</strong><br />

●<br />

● Food<br />

Disclosure<br />

safety, such<br />

of<br />

as<br />

health<br />

residual<br />

related<br />

pesticides,<br />

<strong>in</strong>formation<br />

food fraud,<br />

<strong>in</strong> product<br />

secur<strong>in</strong>g<br />

market<strong>in</strong>g<br />

food safety<br />

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

commercial relevance of <strong>our</strong> material issues.<br />

from own a unique global material perspective issues several for the years first ago, time <strong>and</strong> while s<strong>in</strong>ce tak<strong>in</strong>g then we <strong>in</strong>to have account<br />

<strong>in</strong> the communications<br />

production area, GMO, <strong>and</strong> radiation<br />

cont<strong>in</strong>ually issues <strong>and</strong> re-evaluated contexts that these are issues. characteristic In <strong>2015</strong>, of <strong>Nestlé</strong> Japan. Japan evaluated <strong>our</strong><br />

●<br />

●<br />

Disclosure Ag<strong>in</strong>g of population, health related health <strong>in</strong>formation of elderly <strong>in</strong> people, product <strong>in</strong>crease market<strong>in</strong>g <strong>in</strong> <strong>and</strong> s<strong>in</strong>gle-person<br />

own unique material issues for the first time while tak<strong>in</strong>g <strong>in</strong>to account<br />

communications<br />

households, <strong>and</strong> chang<strong>in</strong>g food customs<br />

issues <strong>Nestlé</strong> <strong>and</strong> Japan, contexts work<strong>in</strong>g that with are characteristic Caux Round of Table Japan. (CRT) Japan, identified<br />

● Ag<strong>in</strong>g ● Information population, security, health of ensur<strong>in</strong>g elderly people, of transparency <strong>in</strong>crease <strong>in</strong> s<strong>in</strong>gle-person<br />

<strong>and</strong> quick provision of<br />

49 material issues believed to be of the most importance from a social households, corporate <strong>and</strong> <strong>in</strong>formation<br />

chang<strong>in</strong>g food customs<br />

<strong>Nestlé</strong> perspective. Japan, work<strong>in</strong>g with Caux Round Table (CRT) Japan, identified<br />

● Information security, ensur<strong>in</strong>g of transparency <strong>and</strong> quick provision of<br />

49 material issues believed to be of the most importance from a social<br />

corporate The follow<strong>in</strong>g <strong>in</strong>formation matters were confirmed as hav<strong>in</strong>g the same high materiality<br />

NiS<br />

perspective.<br />

These 49 issues were further exam<strong>in</strong>ed based on the relationship <strong>and</strong><br />

globally <strong>and</strong> <strong>in</strong> Japan. For global <strong>in</strong>formation, please refer to page 38 of<br />

Materiality at country level<br />

impact they have on <strong>Nestlé</strong> Japan’s bus<strong>in</strong>ess operations <strong>and</strong> the degree of The follow<strong>in</strong>g the global matters section. were confirmed as hav<strong>in</strong>g the same high materiality<br />

These <strong>in</strong>terest 49 held issues <strong>in</strong> were them further by stakeholders exam<strong>in</strong>ed based with expert on the knowledge. relationship In <strong>and</strong> turn, these globally ● Traceability <strong>and</strong> <strong>in</strong> Japan. <strong>and</strong> transparency<br />

For global <strong>in</strong>formation, please refer to page 38 of<br />

impact were narrowed they have to on 26 <strong>Nestlé</strong> issues Japan’s believed bus<strong>in</strong>ess to impact operations <strong>Nestlé</strong> <strong>and</strong> Japan the the degree most of <strong>and</strong> the ● global Efficient section. use of res<strong>our</strong>ces <strong>and</strong> responsible management of water<br />

<strong>in</strong>terest held <strong>in</strong> them by stakeholders with expert knowledge. In turn, these<br />

●<br />

to be of the greatest <strong>in</strong>terest to <strong>our</strong> stakeholders. Please see the materiality Traceability res<strong>our</strong>ces <strong>and</strong> transparency<br />

(water stewardship)<br />

In were <strong>2015</strong>, narrowed <strong>Nestlé</strong> to 26 Japan issues evaluated believed to impact its own <strong>Nestlé</strong> unique Japan material the most <strong>and</strong> issues for ● Efficient In turn, use of they res<strong>our</strong>ces were <strong>and</strong> narrowed responsible to management 26 issues, of believed water to impact <strong>Nestlé</strong><br />

matrix below for further details.<br />

● Children’s health <strong>and</strong> over-nutrition<br />

the to be first of the time, greatest while <strong>in</strong>terest tak<strong>in</strong>g to <strong>our</strong> <strong>in</strong>to stakeholders. account Please issues see <strong>and</strong> the materiality context res<strong>our</strong>ces Japan (water the most stewardship)<br />

● Improvement of women’s <strong>and</strong> to be rights of <strong>and</strong> the diversity greatest (gender <strong>in</strong>terest balance) to <strong>our</strong><br />

matrix below for further details.<br />

● Children’s health <strong>and</strong> over-nutrition<br />

characteristic of Japan. Work<strong>in</strong>g with Caux Round Table (CRT)<br />

● stakeholders. Employee safety The <strong>and</strong> results health of the analysis are displayed <strong>in</strong> a<br />

● Improvement of women’s rights <strong>and</strong> diversity (gender balance)<br />

Japan, the company identified 49 material issues believed to be of ● Employee materiality safety <strong>and</strong> matrix health(below). <strong>Nestlé</strong> Japan will evaluate the impact of<br />

Go<strong>in</strong>g forward, <strong>Nestlé</strong> Japan will evaluate the impact of each issue <strong>in</strong> <strong>our</strong><br />

importance from a social perspective. The issues were further each issue <strong>in</strong> its value cha<strong>in</strong>, <strong>and</strong> work to address issues through<br />

Go<strong>in</strong>g<br />

value<br />

forward,<br />

cha<strong>in</strong><br />

<strong>Nestlé</strong><br />

<strong>and</strong> work<br />

Japan<br />

to<br />

will<br />

address<br />

evaluate<br />

each<br />

the<br />

issue<br />

impact<br />

identified<br />

of each issue<br />

as material<br />

<strong>in</strong> <strong>our</strong><br />

through<br />

exam<strong>in</strong>ed, based on their relationship <strong>and</strong> impact to <strong>Nestlé</strong> Japan’s<br />

with stakeholders.<br />

value direct cha<strong>in</strong> dialogue <strong>and</strong> work with to address stakeholders. each issue identified as material through<br />

bus<strong>in</strong>ess operations <strong>and</strong> the degree of <strong>in</strong>terest to stakeholders direct dialogue Read with more stakeholders. on <strong>Nestlé</strong> Japan’s work to support healthy age<strong>in</strong>g.<br />

with expert knowledge.<br />

<strong>2015</strong> <strong>Nestlé</strong> Japan materiality matrix<br />

<strong>2015</strong> <strong>Nestlé</strong> Japan materiality matrix<br />

Stakeholder concern:<br />

Responsible s<strong>our</strong>c<strong>in</strong>g<br />

Corporate<br />

Responsible s<strong>our</strong>c<strong>in</strong>g<br />

Corporate<br />

Traceability <strong>and</strong> transparency<br />

governance Food safety<br />

Traceability <strong>and</strong> transparency<br />

governance Food safety<br />

Human rights <strong>in</strong> the entire supply cha<strong>in</strong> Diversity (gender)<br />

Human rights <strong>in</strong> the entire supply cha<strong>in</strong> Diversity (gender)<br />

Environmental destruction<br />

Fair bus<strong>in</strong>ess practices<br />

Environmental destruction<br />

Fair bus<strong>in</strong>ess practices<br />

Place of orig<strong>in</strong><br />

Ensur<strong>in</strong>g of transparency <strong>and</strong> prompt<br />

Place of orig<strong>in</strong><br />

Ensur<strong>in</strong>g of transparency <strong>and</strong> prompt<br />

Child labor<br />

provision of corporate <strong>in</strong>formation<br />

Child labor<br />

provision of corporate <strong>in</strong>formation<br />

Information security<br />

Information security<br />

Employee health <strong>and</strong> safety<br />

Environmental impact impact <strong>and</strong> <strong>and</strong><br />

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

Greenhouse gas gas emissions emissions<br />

Water Water stewardship<br />

Efficient use use of of res<strong>our</strong>ces<br />

<strong>and</strong> natural capital<br />

Product market<strong>in</strong>g<br />

<strong>and</strong> communication<br />

Disclosure of of health health<br />

related<br />

related<br />

<strong>in</strong>formation<br />

<strong>in</strong>formation<br />

<strong>and</strong> natural capital<br />

Employee health <strong>and</strong> safety<br />

Trend <strong>in</strong> <strong>in</strong> Japanese <strong>society</strong> <strong>society</strong><br />

Ag<strong>in</strong>g Ag<strong>in</strong>g <strong>society</strong> <strong>society</strong><br />

Increase Increase <strong>in</strong> s<strong>in</strong>gle-person s<strong>in</strong>gle-person households households<br />

Changes<br />

Changes<br />

<strong>in</strong> dietary<br />

<strong>in</strong> dietary<br />

patterns<br />

patterns<br />

Residual pesticides<br />

Residual Food pesticides fraud<br />

Food fraud Place of orig<strong>in</strong><br />

Place of GMO orig<strong>in</strong><br />

GMO<br />

Radiation<br />

Radiation<br />

Nutrition Nutrition <strong>and</strong> <strong>and</strong> health health<br />

Children’s Children’s health health<br />

Over-nutrition Over-nutrition / obesity / obesity / metabolic / metabolic syndrome syndrome<br />

Health Health of elderly of elderly people people<br />

Excessive Excessive <strong>in</strong>take <strong>in</strong>take of sodium of sodium / sugar / sugar fats / fats<br />

Impact on <strong>Nestlé</strong> Japan:<br />

Impact on <strong>Nestlé</strong> Japan:<br />

● (Responsible s<strong>our</strong>c<strong>in</strong>g) place of orig<strong>in</strong> = Are producers <strong>and</strong> workers engaged <strong>in</strong> safe production, manufactur<strong>in</strong>g <strong>and</strong> labor conditions at the place of orig<strong>in</strong>?<br />

● (Responsible s<strong>our</strong>c<strong>in</strong>g) place of orig<strong>in</strong> = Are producers <strong>and</strong> workers engaged <strong>in</strong> safe production, manufactur<strong>in</strong>g <strong>and</strong> labor conditions at the place of orig<strong>in</strong>?<br />

(Food safety) place of orig<strong>in</strong> = Is a safe production system <strong>in</strong> place for consumers <strong>in</strong> the place of orig<strong>in</strong>? Is food produced with consideration given to safety?<br />

● (Food safety) place of orig<strong>in</strong> = Is a safe production system <strong>in</strong> place for consumers <strong>in</strong> the place of orig<strong>in</strong>? Is food produced with consideration given to safety?<br />

<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> - Japan<br />

<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> - Japan<br />

J - 14<br />

J - 14<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> 17

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