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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 Rural development Water<br />

Environmental<br />

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

Human rights<br />

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

Our<br />

people<br />

Materials G4-DMA, Energy G4-DMA, Biodiversity G4-DMA, Emissions G4-DMA, Effluents <strong>and</strong> waste G4-DMA,<br />

Products <strong>and</strong> services G4-DMA, G4-EN27, G4-EN31<br />

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

Our goal is for <strong>our</strong> products to be not only tastier <strong>and</strong> healthier, but also better for the environment along their<br />

value cha<strong>in</strong>. To improve the environmental performance of <strong>our</strong> products, we need to assess <strong>and</strong> improve their<br />

environmental impacts from the moment we beg<strong>in</strong> to develop them. This means hav<strong>in</strong>g a clear underst<strong>and</strong><strong>in</strong>g of<br />

the environmental life-cycle impacts of <strong>our</strong> products, from agricultural production <strong>and</strong> the s<strong>our</strong>c<strong>in</strong>g of <strong>in</strong>gredients<br />

through to what happens at the end of a product’s life.<br />

The environmental life cycle of products<br />

Our commitment<br />

Assess <strong>and</strong> optimise the environmental impact<br />

of <strong>our</strong> products<br />

We use the scientific method known as life-cycle assessment<br />

(LCA) to help us underst<strong>and</strong> the performance of <strong>our</strong> food <strong>and</strong><br />

beverage products along their value cha<strong>in</strong>, from farm to<br />

consumer <strong>and</strong> beyond. The LCA focuses on preserv<strong>in</strong>g water,<br />

us<strong>in</strong>g natural res<strong>our</strong>ces efficiently, conserv<strong>in</strong>g biodiversity,<br />

reduc<strong>in</strong>g air emissions, adapt<strong>in</strong>g to climate change <strong>and</strong><br />

reduc<strong>in</strong>g waste.<br />

This approach <strong>in</strong>forms <strong>our</strong> decision-mak<strong>in</strong>g, help<strong>in</strong>g us take<br />

actions to cont<strong>in</strong>uously improve <strong>our</strong> environmental<br />

performance. It also enables us to respond to stakeholders’<br />

grow<strong>in</strong>g <strong>in</strong>terest <strong>in</strong> the environmental performance of food<br />

<strong>and</strong> beverage products, <strong>and</strong> provides credible evidence to<br />

support specific environmental communications <strong>and</strong><br />

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

We’ve completed LCAs for all <strong>our</strong> product categories.<br />

Examples of the improvements we have made to products as<br />

a result of these LCAs <strong>in</strong>clude:<br />

• The eco-mode for <strong>our</strong> Nescafé Dolce Gusto Melody coffee<br />

mach<strong>in</strong>e enables auto-st<strong>and</strong>by mode after 20 m<strong>in</strong>utes. For<br />

a 120 ml cup, this has helped consumers cut carbon dioxide<br />

equivalent (CO 2 eq) emissions by 32%, fossil fuels by 41%<br />

<strong>and</strong> water use by 25%, compared to the first model<br />

launched <strong>in</strong> 2006;<br />

• The new <strong>Nestlé</strong> Infant Nutrition Ready-to-Feed plastic bottle<br />

produced <strong>in</strong> Germany has a better environmental<br />

performance than the glass equivalent. GHG emissions<br />

have been reduced by 19%, water withdrawal fell by 15%<br />

<strong>and</strong> ecosystems quality improved by 28%. The<br />

environmental sav<strong>in</strong>gs on a 32-bottle pack <strong>in</strong> Germany are<br />

estimated to be 13 kilometres of road travel avoided, 74 m2<br />

of green space preserved <strong>and</strong> 37 litres of water saved;<br />

• The new Nescafé refill pack <strong>in</strong> Italy has a better<br />

environmental performance than the previous 150 g glass<br />

jar because it has reduced GHG emissions by 79%, water<br />

withdrawal by 72% <strong>and</strong> res<strong>our</strong>ce consumption by 77%<br />

(tak<strong>in</strong>g <strong>in</strong>to account packag<strong>in</strong>g production <strong>and</strong> delivery,<br />

product distribution <strong>and</strong> end of life). More <strong>in</strong>formation about<br />

the pack <strong>and</strong> the Nescafé Plan for more responsible<br />

farm<strong>in</strong>g, production <strong>and</strong> consumption is available through<br />

the on-pack Quick Response (QR) code (see Go<strong>in</strong>g ‘beyond<br />

the label’); <strong>and</strong> Promot<strong>in</strong>g susta<strong>in</strong>able consumption.<br />

Life cycle of products<br />

End of life<br />

Ingredient supply<br />

Consumption<br />

Manufactur<strong>in</strong>g<br />

Distribution & storage<br />

Packag<strong>in</strong>g<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> 176

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