Nestlé in society Creating Shared Value and meeting our commitments 2015

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Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people G4-26, G4-27, Materials G4-DMA, Energy G4-DMA, Biodiversity G4-DMA, Emissions G4-DMA, Effluents and waste G4-DMA, Products and services G4-DMA, Compliance G4-DMA (Environmental), Transport G4-DMA, Overall G4-DMA, Supplier environmental assessment G4-DMA, Environmental grievance mechanisms G4-DMA The environmental roadmap in Brazil Increasing our efficiency and improving the environmental performance of our activities helps us manufacture more products using fewer natural resources, but every part of Nestlé needs to play its part. Each business, across all regions, is expected to demonstrate how it is improving its own environmental performance to contribute to our corporate objectives. Aligned with Nestlé’s corporate goals, an action plan has been created for each factory across the country. As part of the roadmap, Nestlé Brazil’s action plan has been in place since 2013. It gives the company a clear understanding about its national objectives and the investment necessary to achieve its 2020 goals. In the first two years after the roadmap was created, at least two water-saving projects and two energy-reduction projects have been instigated at each factory, supported by a wide range of business units and functions. Water savings Number of projects Water saved 2015 93 242 315 m³ 2014 88 186 793 m³ 2013 68 253 836 m³ Energy savings Number of projects Energy saved 2015 126 142 969 GJ 2014 110 173 953 GJ 2013 96 143 523 GJ By 2015, although Nestlé Brazil increased production volume from 2014 levels by 8.8%, its water consumption fell by 19.2% and energy use reduced by 6.4%; during the same period, direct greenhouse gas (GHG) emissions reduced by 17.6% and waste for disposal was cut by 78%. Going forward, our priorities are to implement all projects on the roadmap, continue to refine objectives and targets to improve our environmental performance, and communicate with employees, consumers and other stakeholders when applicable. Multi-stakeholder engagement At a local, regional and global level, we proactively engage with stakeholders and foster long-term partnerships to define, implement and evaluate solutions to the complex environmental challenges we face. Some examples are outlined below. • Caring for Climate – as part of UNGC LEAD we actively support this initiative. In 2015, we participated at several high-profile events organised around Global Compact +15 on business commitment to furthering climate change action. Read more. • Consumer Goods Forum (CGF) – our Chief Executive Officer, Paul Bulcke, sits on the board of directors of the CGF, a global industry network that brings together leaders and senior management from more than 400 retailers, manufacturers, service providers and other stakeholders across 70 countries. We are an active member of the CGF’s Sustainability Steering Committee, developing action plans to help achieve zero net deforestation by 2020, and mobilising resources to begin phasing out hydrofluorocarbon (HFC) refrigerants and replace them with natural refrigerant alternatives when purchasing point-ofsale units and large refrigeration installations. In June 2015, the board of the CGF endorsed a new resolution on food waste reduction, developed under Nestlé leadership; • The European Food Sustainable Consumption and Production Roundtable – together with the European Commission, we co-chair the steering committee that advises on the food chain. We support the ENVIFOOD Protocol, a methodology for assessing the environmental performance of food, feed and drinks, and actively support the European Commission’s Product Environmental Footprint Category Rules initiative, by participating in three pilot projects covering bottled water, coffee and pet food (see The environmental life cycle of products); • FoodDrinkEurope Environmental Sustainability Committee – chaired by Nestlé, the committee represents the European food and drink industry and has launched ‘A Time to Act: Europe’s food and drink industry shows action to address climate change’ under Nestlé guidance; • United Nations 10-Year Framework Programme on Sustainable Food Systems – we are a member of the Multi-Stakeholder Advisory Committee, representing the private sector to develop measurement, communications and accelerate sustainable production and consumption; • United Nations Framework Convention on Climate Change (UNFCCC) – we are a partner of the Adaptation Private Sector Initiative, which shares innovative solutions to climate change adaptation. During 2015, we provided different case studies on climate change adaptation; • Climate Disclosure Standards Board (CDSB) – a Nestlé representative is a member of the CDSB’s technical working group and represents our commitment to disclose climate change information in conformance with the CDSB’s framework; • The University of Cambridge Institute for Sustainability Leadership – we are members of the Natural Capital Leaders Platform, which has a range of activities for measuring and valuing natural capital. During 2015, we participated in a project on measuring natural capital in the dairy sector; • World Resources Institute (WRI) – on behalf of the CGF, we are a member of the steering committee of the WRI Food Loss & Waste Protocol. In 2015, we piloted the draft WRI Food Loss & Waste Protocol in the dairy value chain in Pakistan; • World Business Council for Sustainable Development (WBCSD) – we are an active member of the WBCSD, participating in its work on redefining value, water and social issues; and • World Economic Forum – we are a member of the Global Agenda Council on Food & Nutrition Security, which aims to promote a step-change in sustainable food and agriculture systems. We also collaborate with organisations such as the 2030 Water Resources Group and the WBCSD on a range of water, sanitation and hygiene-related issues. Nestlé in society – Creating Shared Value and meeting our commitments 2015 172
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Materials G4-DMA, Energy G4-DMA, Biodiversity G4-DMA, Emissions G4-DMA, Effluents and waste G4-DMA, Products and services G4-DMA, Compliance G4-DMA (Environmental), Transport G4-DMA, Overall G4-DMA, Supplier environmental assessment G4-DMA, Environmental grievance mechanisms G4-DMA The Nestlé Environmental Management System The Nestlé Policy on Environmental Sustainability is implemented through the Nestlé Environmental Management System (NEMS). The system is designed to improve environmental performance, help ensure compliance with all relevant requirements and enable our sites to achieve ISO 14001:2004 certification. Management is accountable for its implementation within their area of responsibility. ISO 14001:2004 certification To ensure consistent and coherent implementation around the world, all our sites use NEMS, which conforms to ISO 14001:2004 – an internationally recognised standard for environmental management. We aim to maintain ISO 14001:2004 certification at all our factories, and apply for certification through independent accredited bodies. We have extended our ISO 14001:2004 certifications to major distribution centres, R&D locations and offices and, by the end of 2015, 626 Nestlé sites were certified, as outlined below. ISO 14001:2004 certification 2013 2014 2015 Total sites * 601 621 626 Manufacturing sites ** 446 447 437 Distribution facilities 130 122 120 R&D centres 25 26 28 Offices n/a 26 41 Monitoring and auditing We monitor and report our environmental performance at a factory level using SHE-PM (Safety, Health and Environmental Sustainability – Performance Management) – see definitions and comments on environmental performance indicators. Our processes for reporting and managing incidents are set out in detail in NEMS. Any major incidents relating to safety, health or environmental sustainability are reported to the appropriate senior management within 24 hours. An investigation is initiated immediately and, in the case of major incidents involving our sites or employees, is overseen by the relevant senior functional manager. We also report fines following site inspections or a review of permits. In 2015, we incurred CHF 80 000 of environmental fines. More detailed reporting on environmental incidents can be found in our response to the CDP water programme (see pages 95–96). Total cost of environmental fines 2015 CHF 80000 2014 CHF 75 000 2013 CHF 110 000 * Includes factories, R&D locations, distribution centres and offices. The 2013 figure does not include offices. ** As per our internal policy, 100% of Nestlé factories present and active in the Group for more than three years are ISO 14001 certified. Nestlé Environmental Management System (NEMS) Management review Checking Monitoring and measurement Evaluation of compliance Non-conformity, corrective action and preventive action Control of records Internal audit NCE practices General requirements Environmental policy Implementation and operation Resources, roles, responsibility and authority Competence, training and awareness Communication Documentation Control of documents Operational control Emergency preparedness and response Planning Environmental aspects Legal and other requirements Objectives, targets and programme(s) Nestlé in society – Creating Shared Value and meeting our commitments 2015 173
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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