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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 />

G4-EN27, G4-EN31<br />

M<strong>and</strong>atory rat<strong>in</strong>g system<br />

We use a m<strong>and</strong>atory environmental rat<strong>in</strong>g system for all new<br />

product <strong>and</strong> process developments. It uses a five-po<strong>in</strong>t scale<br />

to evaluate potential impacts, both negative <strong>and</strong> positive, <strong>and</strong><br />

is designed to <strong>in</strong>form <strong>our</strong> decision-mak<strong>in</strong>g at the earliest<br />

possible stage – well before a project goes <strong>in</strong>to development.<br />

Environmental hotspots for<br />

dehydrated cul<strong>in</strong>ary products<br />

All the product categories with<strong>in</strong> <strong>our</strong> Food bus<strong>in</strong>ess unit have<br />

undergone LCAs, with hotspots identified <strong>and</strong> addressed.<br />

As an example, the ma<strong>in</strong> hotspots <strong>in</strong> <strong>our</strong> core dehydrated<br />

cul<strong>in</strong>ary category (<strong>in</strong>clud<strong>in</strong>g dehydrated soups, sauces,<br />

bouillons <strong>and</strong> season<strong>in</strong>gs) are <strong>in</strong> the agricultural <strong>and</strong><br />

consumption stages. Almost half the GHG emissions (49%)<br />

<strong>and</strong> 85% of the water impact occur dur<strong>in</strong>g the agriculture<br />

stage, while consumption <strong>and</strong> product use are responsible for<br />

32% of the GHG emissions <strong>and</strong> 11% of the water use.<br />

To address these issues, we are work<strong>in</strong>g to improve the<br />

agricultural practices of <strong>our</strong> direct suppliers through <strong>our</strong><br />

Responsible S<strong>our</strong>c<strong>in</strong>g programme. We also enc<strong>our</strong>age<br />

consumers to prepare <strong>and</strong> use <strong>our</strong> products efficiently, by<br />

us<strong>in</strong>g as little water <strong>and</strong> energy as possible, m<strong>in</strong>imis<strong>in</strong>g food<br />

waste through appropriate portion sizes <strong>and</strong> recycl<strong>in</strong>g product<br />

packag<strong>in</strong>g whenever feasible.<br />

Promot<strong>in</strong>g access to data<br />

Our objective<br />

By 2017 – Further enlarge the scope of <strong>our</strong> databases on<br />

agricultural raw materials used <strong>in</strong> EcodEX.<br />

To make <strong>in</strong>formed decisions, <strong>our</strong> teams require accurate data,<br />

<strong>and</strong> we are cont<strong>in</strong>u<strong>in</strong>g to work with external collaborators to<br />

develop databases that benefit not only <strong>Nestlé</strong> but the LCA<br />

community at large. In particular, we are focus<strong>in</strong>g on enlarg<strong>in</strong>g<br />

the scope of the <strong>in</strong>put data on agricultural raw materials, as they<br />

constitute the ma<strong>in</strong> environmental impact of many products.<br />

For example, we are cont<strong>in</strong>u<strong>in</strong>g to develop <strong>and</strong> improve<br />

EcodEX through a collaboration with the Montreal-based<br />

International Reference Centre for the Life Cycle of Products,<br />

Processes <strong>and</strong> Services (CIRAIG). We are currently work<strong>in</strong>g on<br />

<strong>in</strong>corporat<strong>in</strong>g <strong>in</strong>formation on statistical uncerta<strong>in</strong>ty <strong>in</strong>to<br />

EcodEX <strong>and</strong> regionalis<strong>in</strong>g life-cycle <strong>in</strong>ventory datasets for<br />

water flows <strong>and</strong> l<strong>and</strong> use. We are also co-sponsor<strong>in</strong>g the<br />

development of a World Food LCA Database, coord<strong>in</strong>ated by<br />

LCA consultancy Quantis <strong>and</strong> 11 other partners.<br />

Dur<strong>in</strong>g <strong>2015</strong>, more than 750 critically reviewed datasets<br />

were added to EcodEX. <strong>Nestlé</strong> is also fund<strong>in</strong>g further data<br />

development, <strong>in</strong> collaboration with Quantis, to focus on<br />

<strong>in</strong>gredients not yet considered <strong>in</strong> other major databases.<br />

To stay at the forefront of LCA <strong>and</strong> ecodesign, we are<br />

cont<strong>in</strong>u<strong>in</strong>g to promote Susta<strong>in</strong>ability by Design <strong>and</strong> provide<br />

<strong>our</strong> product development teams with opportunities for<br />

cont<strong>in</strong>uous learn<strong>in</strong>g <strong>and</strong> knowledge shar<strong>in</strong>g. In addition to<br />

staff at <strong>our</strong> 40 R&D centres dissem<strong>in</strong>at<strong>in</strong>g their expertise<br />

throughout <strong>our</strong> R&D community <strong>and</strong> across <strong>our</strong> operations,<br />

the experts <strong>in</strong> <strong>our</strong> global Susta<strong>in</strong>ability by Design Network are<br />

responsible for build<strong>in</strong>g susta<strong>in</strong>ability <strong>in</strong>to the earliest phase of<br />

product development.<br />

To evaluate the opportunity to extend <strong>our</strong> susta<strong>in</strong>ability<br />

analyses beyond just environmental factors, we have been<br />

collaborat<strong>in</strong>g with global science company DSM to trial tools<br />

that will conduct <strong>in</strong>tegrated assessments of environmental,<br />

social <strong>and</strong> health impacts. The test case was a fortified milk<br />

product <strong>in</strong> the Asian market. The project has resulted <strong>in</strong> new<br />

<strong>in</strong>sights <strong>and</strong> recommendations for us<strong>in</strong>g susta<strong>in</strong>ability <strong>in</strong><br />

<strong>in</strong>novation decision-mak<strong>in</strong>g <strong>and</strong> communication, <strong>and</strong><br />

opportunities to develop products with fav<strong>our</strong>able<br />

environmental, social <strong>and</strong> health impacts.<br />

Pilot<strong>in</strong>g the EU Product<br />

Environmental Footpr<strong>in</strong>t<br />

Category Rules<br />

In 2014, the European Commission launched a three-year pilot<br />

to develop a common environmental footpr<strong>in</strong>t methodology for<br />

25 product categories <strong>and</strong> two bus<strong>in</strong>ess sectors. <strong>Nestlé</strong> was<br />

selected to co-lead the development of Product Environmental<br />

Footpr<strong>in</strong>t Category Rules (PEFCR) <strong>in</strong> three areas: <strong>Nestlé</strong> Waters<br />

for packaged water; Nespresso <strong>and</strong> Nescafé for coffee; <strong>and</strong><br />

<strong>Nestlé</strong> Pur<strong>in</strong>a for pet food.<br />

This project is designed to establish <strong>and</strong> validate an open<br />

<strong>and</strong> transparent multi-stakeholder process for develop<strong>in</strong>g<br />

PEFCRs across all categories, <strong>in</strong>clud<strong>in</strong>g performance<br />

benchmarks for compliance <strong>and</strong> verification systems, <strong>and</strong> for<br />

test<strong>in</strong>g communication channels.<br />

The EU Environmental Footpr<strong>in</strong>t Steer<strong>in</strong>g Committee<br />

approved the scope <strong>and</strong> def<strong>in</strong>ition of representative products<br />

<strong>in</strong> the three product categories co-led by <strong>Nestlé</strong>. The rules that<br />

eventually result from these pilots will be adopted by all<br />

stakeholders to assess the environmental performance of their<br />

products. Next year, we will test different communication<br />

vehicles for <strong>our</strong> products.<br />

This is a major milestone <strong>in</strong> the development of a<br />

common environmental footpr<strong>in</strong>t methodology per<br />

product category. <strong>Nestlé</strong> is committed to the<br />

systematic assessment <strong>and</strong> optimisation of<br />

environmental impacts <strong>in</strong> the design of new <strong>and</strong><br />

renovated products.”<br />

Pascal Gréverath, Assistant Vice-President –<br />

Environmental Susta<strong>in</strong>ability, <strong>Nestlé</strong><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> 178

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