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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-EN2, G4-EN28<br />

Packag<strong>in</strong>g<br />

Packag<strong>in</strong>g performs a variety of functions, from prevent<strong>in</strong>g food waste <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g product quality dur<strong>in</strong>g<br />

shelf life, to provid<strong>in</strong>g convenience <strong>and</strong> <strong>in</strong>formation for consumers. When design<strong>in</strong>g <strong>our</strong> packag<strong>in</strong>g, we take a<br />

holistic approach to assess<strong>in</strong>g environmental impacts across its entire life cycle, aim<strong>in</strong>g for performance <strong>and</strong><br />

functionality while seek<strong>in</strong>g to optimise weight <strong>and</strong> volume. We cont<strong>in</strong>ue to develop <strong>and</strong> use materials from<br />

susta<strong>in</strong>ably managed renewable res<strong>our</strong>ces, support <strong>in</strong>itiatives to recycle or recover energy from used packag<strong>in</strong>g,<br />

<strong>and</strong> use recycled materials where beneficial <strong>and</strong> appropriate.<br />

Our approach<br />

Our commitment<br />

Improve the environmental performance<br />

of <strong>our</strong> packag<strong>in</strong>g<br />

Our approach to packag<strong>in</strong>g is aligned with The <strong>Nestlé</strong> Policy<br />

on Environmental Susta<strong>in</strong>ability <strong>and</strong> focuses on five areas:<br />

• The systematic use of ecodesign tools to assess<br />

environmental performance across the product life cycle;<br />

• Cont<strong>in</strong>u<strong>in</strong>g to optimise the weight <strong>and</strong> volume of <strong>our</strong><br />

packag<strong>in</strong>g;<br />

• Lead<strong>in</strong>g the development <strong>and</strong> use of renewable materials;<br />

• Support<strong>in</strong>g <strong>in</strong>itiatives to recover used packag<strong>in</strong>g <strong>and</strong><br />

address litter<strong>in</strong>g; <strong>and</strong><br />

• Us<strong>in</strong>g recycled materials where there is an environmental<br />

benefit <strong>and</strong> where it is appropriate.<br />

Our objective<br />

By 2017 – Cont<strong>in</strong>ue to systematically analyse <strong>and</strong> optimise<br />

<strong>our</strong> packag<strong>in</strong>g portfolio, avoid<strong>in</strong>g the use of at least<br />

100 000 tonnes of packag<strong>in</strong>g material from <strong>2015</strong> to 2017.<br />

Ecodesign<br />

All <strong>our</strong> packag<strong>in</strong>g needs to meet certa<strong>in</strong> performance<br />

st<strong>and</strong>ards <strong>in</strong> terms of product protection, quality, safety, cost,<br />

production efficiency <strong>and</strong> consumer acceptance, while hav<strong>in</strong>g<br />

the best possible environmental performance. Although<br />

packag<strong>in</strong>g design decisions can make an important<br />

contribution to environmental performance across the product<br />

life cycle, the science is complex.<br />

We have an <strong>in</strong>ternal st<strong>and</strong>ard that sets out the ecodesign<br />

process for ensur<strong>in</strong>g that the environmental performance of<br />

products, <strong>in</strong>clud<strong>in</strong>g their packag<strong>in</strong>g, is systematically assessed<br />

<strong>and</strong> taken <strong>in</strong>to account for all relevant <strong>in</strong>novation <strong>and</strong><br />

renovation projects.<br />

Our ecodesign tools are used to systematically assess<br />

environmental performance <strong>and</strong> <strong>in</strong>form <strong>our</strong> packag<strong>in</strong>g<br />

decisions. After us<strong>in</strong>g PIQET, we have now completed the rollout<br />

of its replacement, giv<strong>in</strong>g us an evaluation of the overall<br />

environmental performance of food products throughout their<br />

entire life cycle. To date, we have evaluated 6174 projects <strong>and</strong><br />

17 724 scenarios us<strong>in</strong>g <strong>our</strong> ecodesign tools, cover<strong>in</strong>g<br />

packag<strong>in</strong>g <strong>and</strong> product development projects.<br />

To adapt these tools to suit the local packag<strong>in</strong>g waste<br />

collection, sort<strong>in</strong>g <strong>and</strong> recycl<strong>in</strong>g <strong>in</strong>frastructure, <strong>Nestlé</strong><br />

Germany has further ref<strong>in</strong>ed its market-specific ecodesign<br />

process, NEATpack (the <strong>Nestlé</strong> Environmental Assessment<br />

Toolkit for packag<strong>in</strong>g development). This holistic process<br />

has been def<strong>in</strong>ed, mapped <strong>and</strong> rolled out with<strong>in</strong> the market.<br />

The use of the NEATpack process is now m<strong>and</strong>atory for all<br />

packag<strong>in</strong>g development projects with<strong>in</strong> <strong>Nestlé</strong> Germany.<br />

A good example of the beneficial usage of NEATpack is the<br />

development of the black Maggi 5-m<strong>in</strong>ute Asia Terr<strong>in</strong>e (see<br />

case study).<br />

As a representative of EUROPEN <strong>in</strong> the EU Product<br />

Environmental Footpr<strong>in</strong>t Packag<strong>in</strong>g Work<strong>in</strong>g Group, <strong>Nestlé</strong><br />

cont<strong>in</strong>ues to contribute to the establishment of guidel<strong>in</strong>es<br />

for the environmental assessment of packag<strong>in</strong>g.<br />

Optimis<strong>in</strong>g weight <strong>and</strong> volume<br />

In cont<strong>in</strong>u<strong>in</strong>g to optimise <strong>our</strong> packag<strong>in</strong>g systems, we avoided<br />

the use of 58 284 tonnes of packag<strong>in</strong>g material <strong>in</strong> <strong>2015</strong>. This<br />

is equivalent to a cost sav<strong>in</strong>g of CHF 95.4 million. Due to <strong>our</strong><br />

efficient ecodesign process, the implementation of best-<strong>in</strong>class<br />

materials <strong>and</strong> technologies, <strong>and</strong> the level of efficiencies<br />

we have already achieved, it will become <strong>in</strong>creas<strong>in</strong>gly difficult<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> 185

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