Nestlé in society Creating Shared Value and meeting our commitments 2015

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Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Going ‘beyond the label’ We see opportunities to build consumer interest in environmental issues by using smartphone and other mobile technology to go ‘beyond the label’. We are rolling out QR codes across our product portfolio, linking to mobile-friendly websites, which give consumers other relevant, user-friendly content. Depending on the product, the information – aligned with local regulations, industry agreements, and internal standards and policies – may include tips on sustainable consumption and product use, from advice on avoiding food waste to guidance on reusing, recycling or disposing of packaging. And if we have carried out a full LCA of the product range in question, we provide a summary of the independent scientific information about the product. For example, in Chile, Nido and Milo have microsites, accessible by scanning on-pack QR codes with a smartphone. These not only offer expert nutritional advice, but also promote the reuse of packaging, and provide educational exercises and games for children. Read more in Nutrition, health and wellness here. Winiary: sharing the sustainable beetroot story In 2012, Nestlé Poland and the School of Agricultural, Forest and Food Sciences worked together to assess the sustainability of five farms supplying beetroot to Nestlé. Using the RISE tool, the ratings for 50 sustainability parameters were condensed into 10 scores for key sustainability areas. Those that were seen as most in need of addressing were nutrient flow (low levels of organic matter in the soil); energy and climate (the farms’ dependency on fossil fuels); and biodiversity (little motivation to create or maintain ecological diversity). An action plan was devised, involving improved fertiliser application and water use for irrigation, better on-farm organisation, and the increased use of renewable energy sources such as solar, wind, water and biodigesters. Annual farmer workshops were also established, in cooperation with Krakow University. Now, packets of Winiary red borscht carry a QR code, giving consumers access to online information about the improved sustainability of beetroot production in Poland. Supplemented by television and digital campaigns featuring the testimonials of local farmers, this has resulted in 7.9% organic growth and a 1.4 percentage point increase in market share. Going beyond the label: Nescafé Gold Blend First Harvest Colombian coffee trees are suffering from an outbreak of leaf rust, a fungal disease that causes trees to lose their leaves and affects yields. Through the Nescafé Plan, Nescafé Gold Blend has provided 13 million coffee disease-resistant trees to farmers in the Valle del Cauca region of Colombia between 2010 and 2013. Working with the Colombian Coffee Growers Federation (FNC), we have distributed plantlets grown from seed in local nurseries, and worked with our farmers to improve farming practices. We have also set up new schemes for coffee farmers and increased the number of community projects focused on education, public health and water supplies. We have highlighted our efforts to UK consumers with a limited edition pack design, supported by posters, social media posts, and print and PR coverage, as well as promotional activity in store. We also invited two journalists from The Times and The Irish Times newspapers to Colombia to see our work for themselves. The overall campaign helped sell 100 tonnes of the product within eight weeks and raise awareness of the Nescafé Plan. It also enabled us to drive the reappraisal of Nescafé Gold Blend, and around two-thirds of those surveyed felt either ‘positive’ or ‘very positive’ towards Nescafé Gold Blend * . Consumer behaviour change campaigns We believe we can make the greatest difference by encouraging people to behave more sustainably and by engaging with them about how we can all recycle more, save energy, use fewer natural resources and consume less water. The importance of engaging consumers in particular is reflected in the many initiatives in which we are engaged around the world. Nestlé Waters is particularly active in this area and has established the R-Generation (Recycling Generation) to encourage recycling behaviour change (see the case study overleaf). PET bottles are 100% recyclable and can be used to make carpets, clothing, automotive parts and construction materials, as well as new bottles, so we are raising awareness of their economic, social and environmental value when they are treated as a resource rather than a waste stream. * Source: Ad tracking report, Millward Brown, July 2014 Nestlé in society – Creating Shared Value and meeting our commitments 2015 198
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Educating the R-Generation To help Nestlé Waters improve the environmental performance of our packaging, we encourage PET recycling by raising awareness and supporting collection programmes. We focus our efforts towards consumers – particularly children – but also waste collection and recycling companies, other beverage producers and employees. In addition, we are using our R-Generation movement to encourage recycling behaviour in schools, most recently in Italy, Argentina and the UK. Italy was the first market to develop an R-Generation programme through a campaign to ‘Collect the plastic, sow the future’. This awareness-raising initiative and competition launched in the primary schools of Milan, Turin and Naples in 2013 encourages children aged 8 to 11 to collect PET bottles and other 100%-recyclable packaging. During the 2014 and 2015 campaigns, nearly 30 000 children in 108 schools collected 40 tonnes of PET. The R-Generation campaign in Italy also engages the children through an R-Generation website, which contains information about waste collection and recycling. The ‘Tunuyán verde’ campaign, launched in the Mendoza region of Argentina in October 2014, seeks to reduce the number of PET bottles ending up in local canals, rivers and ditches. The municipality – supported by Nestlé Waters and Intermunicipal Consortium Centro (COINCE) – provide primary schools with containers for collecting used plastic bottles; these are then segregated, compacted and sold for recycling, and the money raised buys books, computers, furniture and equipment. Nestlé Waters’ role involves consultancy and community relations and producing campaign and collection materials. The second round of the campaign was announced in June 2015, involving children from 10 secondary schools. With the involvement of Nestlé employees, children in the UK have been learning about the importance of recycling, the range of products that can be made from rPET, and how they are made. This was supplemented by a successful recycling poster competition. We are now working with two partners, RECOUP and WasteBuster, on a further recycling education programme in Buxton. Teacher packs, sent to all 11 schools in Buxton, are also available to download from the WasteBuster website. Assessing effectiveness To understand how we are perceived and how well our information has been received, we continuously review consumer feedback, carry out brand research and keep abreast of leading external studies. We also use Twitter and other social media to engage with consumers on environmental issues that matter to them. We’ve also been successful in a number of leading thirdparty environmental and sustainability rankings and indices. There are encouraging signs that we have been recognised by external stakeholders for communicating effectively with consumers about environmental issues. For example, Nestlé ranked 52 nd out of 100 selected companies, up two places from 2014, with a 7% increase in brand value, in Interbrand’s index of Best Global Brands 2015. Nescafé was ranked 36 th , also up two places, with a 7% improvement in brand value. The index measures environmental performance against consumer perceptions, and a positive score indicates that ‘a brand is doing more than it is given credit for’. Nestlé was also ranked 18 th in the most recent Best Global Green Brands index, last compiled in 2014. The index measures environmental performance against consumer perceptions, and a positive score indicates that ‘a brand is doing more than it is given credit for’. When consumers were asked to rate us on the statement ‘Nestlé cares for the environment’, we performed better than the market average in 24 out of 33 countries (Corporate Equity Monitor, 2015); Nestlé also significantly outperformed the best competitor in 15 of those markets. Only one market (Japan) recorded a score significantly below the market average. Number of countries where we performed better than the industry average on the statement ‘Nestlé cares for the environment’ 2015 24 out of 33 (73%) 2013 24 out of 31 (77%) 2012 19 out of 33 (57%) Nestlé in society – Creating Shared Value and meeting our commitments 2015 199
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