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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 />

<strong>Nestlé</strong> Waters boosts recycled<br />

content <strong>in</strong> bottles <strong>in</strong> California<br />

In October <strong>2015</strong>, <strong>Nestlé</strong> Waters North America announced<br />

plans to significantly <strong>in</strong>crease recycled content <strong>in</strong> the most<br />

popular sizes of its Arrowhead bottled water <strong>in</strong> California to<br />

demonstrate Arrowhead’s commitment to recycl<strong>in</strong>g.<br />

Arrowhead is partner<strong>in</strong>g with Los Angeles-based<br />

CarbonLITE Industries LLC, one of the largest producers of<br />

food-grade, post-consumer rPET <strong>in</strong> the world, to deliver the<br />

programme. By the end of 2016, about 3.6 billion bottles of<br />

Arrowhead will be recycled.<br />

Thanks to California’s strong commitment to recycl<strong>in</strong>g – the<br />

70% recycl<strong>in</strong>g rate for PET bottles far exceeds the national<br />

average of 31% – there is high-quality rPET available, enabl<strong>in</strong>g<br />

the company to <strong>in</strong>crease its use of recycled material. rPET has<br />

been used <strong>in</strong> half-litre Arrowhead bottles for three years but<br />

<strong>Nestlé</strong> Waters North America will <strong>in</strong>crease the use of recycled<br />

content by 38%, <strong>and</strong> ensure that most bottle sizes conta<strong>in</strong> up<br />

to 50% recycled material.<br />

This move will result <strong>in</strong> the reuse of about 18 million<br />

pounds of plastic bottles a year, reduc<strong>in</strong>g l<strong>and</strong>fill waste <strong>and</strong><br />

conserv<strong>in</strong>g natural res<strong>our</strong>ces.<br />

Nespresso: alum<strong>in</strong>ium recycl<strong>in</strong>g<br />

On the first anniversary of the launch of its susta<strong>in</strong>ability<br />

strategy The Positive Cup, Nespresso has reported significant<br />

progress towards achiev<strong>in</strong>g its 2020 susta<strong>in</strong>ability goals. As<br />

part of this strategy, which also spans susta<strong>in</strong>able coffee<br />

s<strong>our</strong>c<strong>in</strong>g <strong>and</strong> carbon-efficient operations, the br<strong>and</strong> aims to:<br />

• S<strong>our</strong>ce 100% of virg<strong>in</strong> alum<strong>in</strong>ium <strong>in</strong> compliance with the<br />

Alum<strong>in</strong>ium Stewardship Initiative (ASI) Performance<br />

St<strong>and</strong>ard by 2020;<br />

• Have the capacity to collect 100% of used alum<strong>in</strong>ium<br />

capsules, wherever the company does bus<strong>in</strong>ess; <strong>and</strong><br />

• Recycle the capsules collected <strong>in</strong> key European markets<br />

(Austria, Benelux, France, Italy <strong>and</strong> Switzerl<strong>and</strong>) <strong>in</strong>to<br />

new capsules.<br />

Alum<strong>in</strong>ium is highly recyclable, <strong>and</strong> recycl<strong>in</strong>g it uses 95% less<br />

energy than primary production, <strong>and</strong> produces only 5% of the<br />

GHG emissions. Nonetheless, <strong>in</strong> some markets, household<br />

alum<strong>in</strong>ium packag<strong>in</strong>g items below 70 mm <strong>in</strong> diameter aren’t<br />

recycled because sort<strong>in</strong>g centres lack the equipment able to<br />

process small packages.<br />

We are work<strong>in</strong>g with numerous <strong>in</strong>dustries <strong>and</strong><br />

governmental stakeholders to develop country-specific<br />

systems for the collection <strong>and</strong> recycl<strong>in</strong>g of used Nespresso<br />

capsules <strong>and</strong> other small alum<strong>in</strong>ium packages. To make<br />

recycl<strong>in</strong>g as easy as possible for consumers, we have set up<br />

thous<strong>and</strong>s of collection po<strong>in</strong>ts across 34 countries. Thanks to<br />

this, <strong>our</strong> global collection capacity has reached about 85% <strong>in</strong><br />

<strong>2015</strong>, supported by doorstep collections of used capsules <strong>in</strong><br />

15 countries (mean<strong>in</strong>g that 85% of <strong>our</strong> capsules are sold <strong>in</strong> the<br />

vic<strong>in</strong>ity of a collection po<strong>in</strong>t).<br />

The ASI st<strong>and</strong>ard was only announced at the end of 2014,<br />

which means verification systems have yet to be put <strong>in</strong> place.<br />

As a result, it is unlikely that certified ASI alum<strong>in</strong>ium will be<br />

available before 2017.<br />

In France, Nespresso has helped <strong>in</strong>crease the <strong>in</strong>frastructure<br />

for recycl<strong>in</strong>g small-scale alum<strong>in</strong>ium <strong>and</strong> steel packag<strong>in</strong>g, like<br />

Nespresso capsules, bottle caps <strong>and</strong> alum<strong>in</strong>ium foil, by:<br />

• Co-found<strong>in</strong>g a cross-sector organisation, the CELAA (the<br />

Club for Alum<strong>in</strong>ium <strong>and</strong> Steel Light Packag<strong>in</strong>g) gather<strong>in</strong>g<br />

packag<strong>in</strong>g companies, food process<strong>in</strong>g groups, recycl<strong>in</strong>g<br />

companies <strong>and</strong> political stakeholders;<br />

• Sett<strong>in</strong>g up an agreement with Eco-Emballages <strong>and</strong> the<br />

association of French cities’ mayors to <strong>in</strong>clude used<br />

Nespresso capsules <strong>and</strong> other small alum<strong>in</strong>ium packag<strong>in</strong>g<br />

<strong>in</strong> its collection system; <strong>and</strong><br />

• Launch<strong>in</strong>g ‘Project Metal’, offer<strong>in</strong>g up to EUR 300 per tonne<br />

to <strong>in</strong>centivise packag<strong>in</strong>g sort<strong>in</strong>g centres to <strong>in</strong>vest <strong>in</strong><br />

equipment for separat<strong>in</strong>g small alum<strong>in</strong>ium packages. The<br />

<strong>in</strong>itiative helped Nespresso France to w<strong>in</strong> the Best<br />

Environmental Initiative at the ‘Trophées Défis RSE’ <strong>in</strong> <strong>2015</strong>.<br />

Partnerships, collaboration <strong>and</strong> research<br />

<strong>Nestlé</strong> actively collaborates with academic <strong>and</strong> <strong>in</strong>dustry<br />

partners to develop a better underst<strong>and</strong><strong>in</strong>g of the key issues<br />

affect<strong>in</strong>g the environmental susta<strong>in</strong>ability performance of<br />

renewably s<strong>our</strong>ced materials.<br />

• <strong>Nestlé</strong> cont<strong>in</strong>ues to be an active member of the WWF<br />

Bioplastic Feedstock Alliance (BFA) <strong>and</strong> has contributed to a<br />

white paper on the responsible s<strong>our</strong>c<strong>in</strong>g of bioplastics, as<br />

well as to the BFA’s position on biobased claims;<br />

• We have collaborated with the CIRAIG/Polytechnique<br />

Montréal on a white paper entitled Circular Economy: A<br />

Critical Review of Concepts. This paper compares different<br />

approaches to measure susta<strong>in</strong>ability, such as LCAs,<br />

<strong>in</strong>dustrial ecology, ecodesign, cradle-to-cradle <strong>and</strong> the<br />

circular economy. Differences <strong>and</strong> similarities between<br />

these concepts are studied, <strong>and</strong> their applicability assessed;<br />

• <strong>Nestlé</strong> Waters is a found<strong>in</strong>g member of the Biobased<br />

Chemistry Outlook Community, a group of <strong>in</strong>dustrial<br />

companies that support the French strategic consult<strong>in</strong>g<br />

group BIPE <strong>in</strong> assess<strong>in</strong>g the potential of biobased<br />

chemistry; <strong>and</strong><br />

• <strong>Nestlé</strong> Waters North America is partner<strong>in</strong>g with the<br />

University of Florida, Keep Tampa Bay Beautiful <strong>and</strong> the<br />

US Environmental Protection Agency (EPA) to make the<br />

Hillsborough River a Trash Free Waterway <strong>in</strong> the United<br />

States. This work <strong>in</strong>volves community engagement, goals<br />

establishment <strong>and</strong> metric development, <strong>and</strong> aims to reduce<br />

the impact of unmanaged waste on the environment.<br />

<strong>Nestlé</strong> also supports <strong>in</strong>novative research by Imperial College<br />

London, explor<strong>in</strong>g the development of catalysts that support<br />

the manufacture of CO 2 -based plastics.<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> 191

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