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 Materials G4-DMA, G4-EN1, Energy G4-DMA, G4-EN3, G4-EN4, Biodiversity G4-DMA, Emissions G4-DMA, G4-EN15, G4-EN16, 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 Training our employees We are committed to environmental awareness training and education for our employees, alongside effective communication with them, and recognition of their initiatives and achievements towards environmental improvement. To strengthen our ability to meet our commitments, we ran environmental awareness training sessions in 89 countries in 2015, and plan to extend this to all countries of operation by 2016. During the year, more than 4000 Nestlé employees around the world undertook the Environmental Sustainability at Nestlé e-learning course, to enhance their knowledge and learn how to apply environmentally sustainable business practices. During 2015, we delivered 16 sessions of the Nestlé Environmental Sustainability Leadership workshop, ‘We make Nestlé resourceful’, to 245 employees in Australia, Brazil, China, Dubai, Malaysia, Mexico, Panama, the Philippines, Spain, Switzerland, the United Kingdom, the United States and Venezuela. We also continued deploying our train-the-trainers plan to assist in the wider reach of this workshop across our markets. Additionally, senior managers had the opportunity to attend the Prince of Wales’s Business & Sustainability Programme at Cambridge University. Learn more about employee training in Our people. Sharing our progress Nestlé’s strong policies, continuous improvement and transparent reporting in the area of environmental sustainability are being reflected in external recognition, as outlined below. • As in 2014, we again achieved an industry-leading score of 99 out of 100 in the ‘environmental dimension’ of the 2015 Dow Jones Sustainability Index (DJSI). The environmental section of the index is based on an analysis of companies’ performance in areas including environmental management, environmental reporting, climate strategy, water risk, packaging, genetically modified organisms, raw material sourcing and eco-efficiency; and • In November 2015, we received a Climate Change Award from the environmental sustainability ratings agency CDP, having achieved the maximum score of 100 A in the Climate Disclosure Leadership Index. The CDP indices measure how more than 4700 companies incorporate climate change into their business plans, monitor emissions, report transparently and act to mitigate impacts. Our score makes us one of only 64 companies on the Climate A List, which recognises companies that are leading the way with their actions to reduce emissions and mitigate climate change. We also received recognition for our efforts to manage water use and mitigate water risks. Environmental sustainability at Nestlé Overall we are delivering in key areas WASTE 105 factories worldwide have achieved Zero waste for disposal Waste for disposal (kg per tonne of product) 3.0 8.7 2015 2009 2005 But using resources more efficiently Direct greenhouse gas emissions per tonne of product (kg CO 2 ) 2015 2009 97 68 12.0 2005 118 RENEWABLE ENERGY Spent coffee grounds being used to power our factories account for: 21.4% of our renewable energy use % of on-site energy consumption from renewable sources 15.4% 2015 12.2% 2012 Total production volume (million tonnes) 54.6 2015 Nestlé in society – Creating Shared Value and meeting our commitments 2015 174
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Materials G4-DMA, G4-EN1, 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 Summary of 2015 consolidated Nestlé environmental performance indicators Our key performance indicators help measure our progress and demonstrate compliance. They are aligned with our Creating Shared Value commitments and the external schemes we report against, including the GRI G4 guidelines and indicators. To assist our stakeholders, we have provided a summary table below that lists selected environmental KPIs against their associated GRI G4 indicators. Key performance indicators for environmental sustainability GRI 2014 2015 Production volume Total production volume (million tonnes) n/a 53.7 54.6 Materials Materials used by weight (million tonnes) G4-EN1 31.4 30.3 Raw materials used (million tonnes) G4-EN1 25.8 25.5 Materials for packaging purposes (million tonnes) G4-EN1 5.6 5.3 Packaging source optimisation (kilotonnes saved) n/a 45.8 58.53 Renewable packaging materials (% of materials for packaging purposes) G4-EN1 39.6 38.3 Total % of recycled materials in our packaging G4-EN2 26.8 28.1 Energy Total on-site energy consumption (petajoules) 1 n/a 96.8 93.8 Total on-site energy consumption (gigajoules per tonne of product) 1 n/a 1.81 1.72 Total on-site energy consumption from renewable sources (% of total energy consumption) G4-EN3 14.7 15.4 Total direct energy consumption (petajoules) 1 G4-EN3 66.5 63.8 Total direct energy consumption from renewable sources (% of total direct energy consumption) 2 G4-EN3 11.3 11.8 Total indirect energy consumption (petajoules) G4-EN4 81.1 80.7 Biodiversity Total size of manufacturing sites located in protected areas (hectares) G4-EN11 18.8 18.8 Emissions, effluents and waste Direct GHG emissions (million tonnes CO 2 eq) 1 G4-EN15 3.9 3.7 Direct GHG emissions (kg CO 2 eq per tonne of product) 1 G4-EN15 73 68 Indirect GHG emissions (million tonnes CO 2 eq) G4-EN16 3.8 3.7 Indirect GHG emissions (kg CO 2 eq per tonne of product) G4-EN16 71 68 Total water discharge (million m 3 ) G4-EN22 87 82 Total water discharge (m 3 per tonne of product) G4-EN22 1.63 1.49 Average quality of water discharged (mg COD/l) G4-EN22 71.7 70.0 By-products (kg per tonne of product) G4-EN23 28.9 29.3 Waste for disposal (kg per tonne of product) 1 G4-EN23 4.3 3.0 Environmental sustainability governance Sites certified against ISO 14001:2004 n/a 621 3 626 1 2014 data restated due to more complete data available. 2 Percentage based on renewable component of direct energy use only (e.g. spent coffee grounds burnt from factory operations). 3 Includes factories, R&D locations, distribution centres and head offices. 2013 figure does not include head offices. Nestlé in society – Creating Shared Value and meeting our commitments 2015 175
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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