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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, Supplier environmental assessment G4-DMA<br />

To help reduce the amount of plastic that ends up <strong>in</strong> the<br />

ocean, <strong>Nestlé</strong> Waters jo<strong>in</strong>ed the Trash Free Seas Alliance <strong>in</strong><br />

2012, a partnership developed by the NGO Ocean<br />

Conservancy to address the problem of mar<strong>in</strong>e debris. Triall<strong>in</strong>g<br />

new <strong>in</strong>tegrated waste management plans <strong>in</strong> two or three cities<br />

<strong>in</strong> Asia, Ocean Conservancy will work with local leaders to<br />

improve collection, l<strong>and</strong>fill site remediation, recycl<strong>in</strong>g <strong>and</strong><br />

energy-from-waste generation. The plans, which will be locally<br />

tailored, are <strong>in</strong>tended to demonstrate the feasibility of the<br />

plans, <strong>and</strong> to develop a replicable model that can be adopted<br />

by the other cities <strong>and</strong> regions. With a budget of approximately<br />

CHF 1.2 million per city, the project – if successful – could help<br />

avoid the significant cost to governments <strong>and</strong> <strong>in</strong>dustry caused<br />

by mar<strong>in</strong>e debris. It could also improve human health <strong>and</strong> the<br />

environment, <strong>and</strong> create many new jobs.<br />

Through a global study with Der Grüne Punkt – Duales<br />

System Deutschl<strong>and</strong> GmbH, a lead<strong>in</strong>g German producer<br />

responsibility scheme, we evaluated the recycl<strong>in</strong>g rates of<br />

different used packag<strong>in</strong>g materials around the world <strong>in</strong> 2012.<br />

This data is updated annually <strong>and</strong> is crucial for accurately<br />

assess<strong>in</strong>g the overall environmental performance of packag<strong>in</strong>g<br />

concepts via <strong>our</strong> ecodesign tools.<br />

Public spaces recycl<strong>in</strong>g<br />

programme <strong>in</strong> Manitoba<br />

<strong>Nestlé</strong> Waters is committed to optimis<strong>in</strong>g the environmental<br />

performance of its packag<strong>in</strong>g through recycl<strong>in</strong>g. The company<br />

co-founded the Canadian Beverage Conta<strong>in</strong>er Recycl<strong>in</strong>g<br />

Association (CBCRA), a not-for-profit organisation committed<br />

to reach<strong>in</strong>g the Government target of recover<strong>in</strong>g 75% of<br />

beverage conta<strong>in</strong>ers sold <strong>in</strong> Manitoba.<br />

<strong>Nestlé</strong> Waters Canada <strong>and</strong> the Canadian beverage <strong>in</strong>dustry<br />

established Canada’s first permanent public spaces programme<br />

<strong>in</strong> Manitoba <strong>in</strong> April 2010, which manages <strong>and</strong> funds 80% of<br />

Manitoba’s curbside recycl<strong>in</strong>g programme, as well as 100% of<br />

its public spaces recycl<strong>in</strong>g <strong>and</strong> 100% of its <strong>in</strong>dustrial,<br />

commercial <strong>and</strong> <strong>in</strong>stitutional recycl<strong>in</strong>g. Complemented by<br />

cont<strong>in</strong>uous public education <strong>and</strong> communications, it was the<br />

first programme of its k<strong>in</strong>d <strong>in</strong> the world.<br />

When the public spaces recycl<strong>in</strong>g programme – which<br />

captures items typically ab<strong>and</strong>oned by consumers <strong>in</strong> parks <strong>and</strong><br />

recreational facilities, bus stops, bars <strong>and</strong> restaurants, schools,<br />

shops <strong>and</strong> petrol stations – began, the prov<strong>in</strong>ce had a 42%<br />

recycl<strong>in</strong>g rate for beverage conta<strong>in</strong>ers – the worst rate <strong>in</strong><br />

Canada. But over the last f<strong>our</strong> years, the recycl<strong>in</strong>g rate has<br />

<strong>in</strong>creased by 50%, mak<strong>in</strong>g the CBCRA model the fastestgrow<strong>in</strong>g<br />

recycl<strong>in</strong>g programme <strong>in</strong> North America. Hav<strong>in</strong>g<br />

achieved a 64% recycl<strong>in</strong>g rate <strong>in</strong> 2014, CBCRA Manitoba<br />

rema<strong>in</strong>s on track to achieve 75% by December 2016.<br />

Us<strong>in</strong>g recycled materials<br />

We use recycled materials for <strong>our</strong> packag<strong>in</strong>g where they are<br />

proven by LCA studies to be equal or better <strong>in</strong> environmental<br />

performance, <strong>and</strong> do not jeopardise the quality, performance,<br />

safety or consumer acceptance of <strong>our</strong> products.<br />

Total % of recycled material <strong>in</strong> <strong>our</strong> packag<strong>in</strong>g<br />

<strong>2015</strong> 28.1<br />

2014 26.8<br />

2013 27.1<br />

In <strong>2015</strong>, more than a quarter of <strong>our</strong> packag<strong>in</strong>g was derived<br />

from recycled materials, but <strong>in</strong>creas<strong>in</strong>g that percentage is not<br />

easy due to a number of challenges. For <strong>in</strong>stance, only 27% of<br />

the cardboard we use consists of recycled fibre, largely<br />

because its mechanical properties, such as strength <strong>and</strong><br />

stiffness, are often <strong>in</strong>ferior to virg<strong>in</strong> material. This means the<br />

thickness of the recycled cardboard required for cereal boxes<br />

would cancel out any environmental benefit. Recycled material<br />

can also conta<strong>in</strong> contam<strong>in</strong>ants, such as <strong>in</strong>k residues <strong>and</strong><br />

m<strong>in</strong>eral oils, prevent<strong>in</strong>g us from us<strong>in</strong>g it <strong>in</strong> direct food contact.<br />

Recycled PET (rPET) is the only recycled plastic currently<br />

used <strong>in</strong> direct contact with food <strong>and</strong> beverage products. We<br />

use it <strong>in</strong> a number of countries where it has similar or better<br />

environmental performance than virg<strong>in</strong> PET, <strong>and</strong> where it<br />

helps <strong>in</strong>centivise consumers, communities <strong>and</strong> other<br />

stakeholders to collect <strong>and</strong> recycle packag<strong>in</strong>g. For example,<br />

Herta uses 25% to 30% rPET <strong>in</strong> trays <strong>in</strong> France, <strong>and</strong> <strong>Nestlé</strong><br />

Waters uses anywhere from 25% to 100% rPET <strong>in</strong> some<br />

regional <strong>and</strong> national br<strong>and</strong>s.<br />

<strong>Nestlé</strong> Waters North America has launched its first 100%<br />

rPET bottle <strong>in</strong> the United States. Bottles of Res<strong>our</strong>ce Natural<br />

Spr<strong>in</strong>g Water are now made entirely of recycled plastic,<br />

exclud<strong>in</strong>g the cap <strong>and</strong> label.<br />

We believe that us<strong>in</strong>g recycled PET can help <strong>in</strong>crease<br />

recycl<strong>in</strong>g rates by focus<strong>in</strong>g attention on the value of<br />

recycl<strong>in</strong>g. <strong>Nestlé</strong> Waters has a strong history of<br />

susta<strong>in</strong>able <strong>in</strong>novation <strong>and</strong> product stewardship<br />

advocacy, <strong>and</strong> the 100% rPET bottle aims to<br />

cont<strong>in</strong>ue that legacy by <strong>in</strong>creas<strong>in</strong>g awareness of<br />

closed-loop recycl<strong>in</strong>g.”<br />

Debora Fillis Ryba, Senior Manager of<br />

Susta<strong>in</strong>ability, <strong>Nestlé</strong> Waters North America<br />

Some materials such as steel, alum<strong>in</strong>ium <strong>and</strong> glass are widely<br />

recycled, the performance of recycled material is virtually<br />

identical to virg<strong>in</strong> material <strong>and</strong> the recycl<strong>in</strong>g process consumes<br />

less energy than the production of virg<strong>in</strong> materials. In these<br />

sectors, all <strong>in</strong>itiatives to improve collection <strong>and</strong> recycl<strong>in</strong>g<br />

directly contribute to <strong>in</strong>creas<strong>in</strong>g recycled content <strong>and</strong> to<br />

improv<strong>in</strong>g the environmental performance of <strong>our</strong> 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> 190

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