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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-EN1, G4-EN2<br />

to take weight <strong>and</strong> volume out as we become better at<br />

design<strong>in</strong>g packag<strong>in</strong>g. Nonetheless, we have committed to<br />

avoid the use of at least 100 000 tonnes of packag<strong>in</strong>g material<br />

over the next three years from <strong>2015</strong> to 2017.<br />

Packag<strong>in</strong>g optimisation (tonnes saved)<br />

<strong>2015</strong> 58284<br />

2014 45805<br />

2013 66594<br />

Materials for packag<strong>in</strong>g purposes (million tonnes)<br />

<strong>2015</strong> 5.3<br />

2014 5.6<br />

2013 5.7<br />

Overall, the cumulative amount of packag<strong>in</strong>g we have avoided<br />

s<strong>in</strong>ce 1991 is more than 771 830 tonnes <strong>and</strong> CHF 1356 million<br />

<strong>in</strong> packag<strong>in</strong>g costs. The environmental benefits are also<br />

significant. Over the last five years, we have avoided <strong>in</strong> excess<br />

of 442 946 tonnes of CO 2 eq – equivalent to tak<strong>in</strong>g more than<br />

95 876 cars off the road for a year.<br />

Such benefits have been achieved by consistently look<strong>in</strong>g<br />

to reduce the weight <strong>and</strong> volume of <strong>our</strong> packag<strong>in</strong>g. Recent<br />

examples <strong>in</strong>clude:<br />

• Replac<strong>in</strong>g a triple layer of PE (polyethylene), alum<strong>in</strong>ium <strong>and</strong><br />

PET (polyethylene terephthalate) with a duplex structure <strong>in</strong><br />

Nescafé Creamy White soluble coffee packets saves <strong>Nestlé</strong><br />

Philipp<strong>in</strong>es 188 tonnes of material a year;<br />

• By renovat<strong>in</strong>g the secondary packag<strong>in</strong>g used for st<strong>and</strong>-up<br />

pouches <strong>and</strong> elim<strong>in</strong>at<strong>in</strong>g non-added-value operations dur<strong>in</strong>g<br />

co-pack<strong>in</strong>g, <strong>Nestlé</strong> Pur<strong>in</strong>a PetCare Europe has saved almost<br />

1000 tonnes of corrugated cardboard;<br />

• <strong>Nestlé</strong> Waters reduced the total cost of production across<br />

its factory <strong>in</strong> Egypt by 6% – sav<strong>in</strong>g EGP 18 million (CHF 2.4<br />

million) a year. This was achieved by cutt<strong>in</strong>g the PET res<strong>in</strong><br />

used <strong>in</strong> 0.6 litre <strong>and</strong> 1.5 litre bottles by 12% (1 307 tonnes),<br />

as well as reduc<strong>in</strong>g the HDPE (high-density polyethylene)<br />

used <strong>in</strong> bottle caps by 11% (200 tonnes), <strong>and</strong> cutt<strong>in</strong>g the<br />

polypropylene (PP) <strong>in</strong> labels by 16% (33 tonnes);<br />

• Cont<strong>in</strong>u<strong>in</strong>g to optimise the packag<strong>in</strong>g of Nescafé mixed<br />

coffee <strong>and</strong> creamer sticks <strong>in</strong> Hungary, we saved 35 tonnes<br />

of materials by reduc<strong>in</strong>g the PE seal<strong>in</strong>g layers from 35<br />

microns to 30 microns, <strong>and</strong> the pr<strong>in</strong>ted PET layer from 12<br />

microns to 10 microns;<br />

• In Malaysia, reduc<strong>in</strong>g the thickness of the PET used <strong>in</strong> the<br />

‘tastemaker’ season<strong>in</strong>g sachets <strong>in</strong> Maggi 2-M<strong>in</strong>ute Noodles<br />

from 12 microns to 8 microns will make annual sav<strong>in</strong>gs of<br />

66 tonnes of material <strong>and</strong> MYR 107 000 (CHF 30 280);<br />

• Across Oceania, a gauge reduction of <strong>our</strong> 127 mm <strong>and</strong> 153<br />

mm cans of Nescafé, Milo <strong>and</strong> Nesquick has resulted <strong>in</strong> an<br />

average weight reduction of 16%, sav<strong>in</strong>g 413 tonnes of t<strong>in</strong><br />

plate <strong>and</strong> AUD 382 000 (CHF 309 000), while <strong>in</strong> Chile, we<br />

have saved 123 tonnes of t<strong>in</strong> plate a year by reduc<strong>in</strong>g the<br />

thickness of Nido milk cans;<br />

• Also <strong>in</strong> Chile, reduc<strong>in</strong>g the headspace <strong>in</strong> the packag<strong>in</strong>g of<br />

McKay m<strong>in</strong>i-biscuits by 10 mm is set to save 19 tonnes of<br />

material, <strong>and</strong> more than CHF 69 000;<br />

• Reduc<strong>in</strong>g the height of the corrugated cardboard trays for<br />

W<strong>in</strong>iary mayonnaise <strong>in</strong> Pol<strong>and</strong> <strong>and</strong> the Baltic states saved<br />

93 tonnes of packag<strong>in</strong>g materials;<br />

• In Malaysia <strong>and</strong> S<strong>in</strong>gapore, reduc<strong>in</strong>g the thickness of the<br />

PE lam<strong>in</strong>ate layer of Nescafé 3-<strong>in</strong>-1 sticks from 40 microns<br />

to 28 microns has saved 153 tonnes of material;<br />

• By harmonis<strong>in</strong>g carton sizes for Nescafé Café Menu<br />

cappucc<strong>in</strong>o packs, produced <strong>in</strong> the UK for local <strong>and</strong> other<br />

European markets, we have been able to save more than<br />

163 tonnes of cardboard annually; <strong>and</strong><br />

• On the KitKat production l<strong>in</strong>e at <strong>our</strong> factory <strong>in</strong> Perm, Russia,<br />

new wrapp<strong>in</strong>g <strong>and</strong> carton<strong>in</strong>g equipment allowed for the<br />

optimisation of display boxes <strong>and</strong> enabled double-stacked<br />

pallets, sav<strong>in</strong>g 573 tonnes of cardboard per year.<br />

Look<strong>in</strong>g ahead, we will be globally implement<strong>in</strong>g the<br />

ISO 18602 Packag<strong>in</strong>g Optimisation st<strong>and</strong>ard <strong>in</strong> packag<strong>in</strong>g<br />

development to ensure that <strong>Nestlé</strong> packag<strong>in</strong>g is systematically<br />

designed with adequate weight <strong>and</strong> volume from the start.<br />

New aseptic packag<strong>in</strong>g better<br />

for the environment<br />

Our Product Technology Centre (PTC) <strong>in</strong> Konolf<strong>in</strong>gen,<br />

Switzerl<strong>and</strong>, began develop<strong>in</strong>g new aseptic (sterile) pack<strong>in</strong>g<br />

<strong>and</strong> process<strong>in</strong>g technologies to support the quality <strong>and</strong> safety<br />

needed for <strong>our</strong> ready-to-dr<strong>in</strong>k <strong>in</strong>fant formula <strong>in</strong> 2011.<br />

Through the collaboration between the PTC <strong>and</strong> the factory,<br />

the project has seen the packag<strong>in</strong>g change from glass to<br />

ergonomically designed non-breakable plastic bottles that<br />

ensure food safety <strong>and</strong> improve environmental performance.<br />

The environmental benefits of us<strong>in</strong>g a lighter, recyclable<br />

material <strong>and</strong> significantly reduc<strong>in</strong>g <strong>in</strong>-house production waste<br />

<strong>in</strong>clude a 19% reduction <strong>in</strong> GHG emissions, a 28% better<br />

environmental performance <strong>and</strong> a 15% decrease <strong>in</strong> water<br />

withdrawal.<br />

S<strong>in</strong>ce its commission, the production l<strong>in</strong>e has delivered more<br />

than 15 million bottles to hospitals <strong>in</strong> more than 20 countries.<br />

Development <strong>and</strong> use of<br />

renewable materials<br />

As stated <strong>in</strong> The <strong>Nestlé</strong> Environmental Susta<strong>in</strong>ability Policy,<br />

we aim to lead the development <strong>and</strong> use of materials from<br />

susta<strong>in</strong>ably managed renewable res<strong>our</strong>ces consider<strong>in</strong>g<br />

packag<strong>in</strong>g <strong>and</strong> product performance requirements.<br />

Renewably s<strong>our</strong>ced materials need to provide a genu<strong>in</strong>e<br />

advantage from an environmental susta<strong>in</strong>ability perspective.<br />

Today, materials from renewable res<strong>our</strong>ces are sold at a<br />

premium <strong>and</strong> often have limited availability, with fierce<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> 186

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