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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 />

Educat<strong>in</strong>g the R-Generation<br />

To help <strong>Nestlé</strong> Waters improve the environmental performance<br />

of <strong>our</strong> packag<strong>in</strong>g, we enc<strong>our</strong>age PET recycl<strong>in</strong>g by rais<strong>in</strong>g<br />

awareness <strong>and</strong> support<strong>in</strong>g collection programmes. We focus<br />

<strong>our</strong> efforts towards consumers – particularly children – but also<br />

waste collection <strong>and</strong> recycl<strong>in</strong>g companies, other beverage<br />

producers <strong>and</strong> employees. In addition, we are us<strong>in</strong>g <strong>our</strong><br />

R-Generation movement to enc<strong>our</strong>age recycl<strong>in</strong>g behavi<strong>our</strong> <strong>in</strong><br />

schools, most recently <strong>in</strong> Italy, Argent<strong>in</strong>a <strong>and</strong> the UK.<br />

Italy was the first market to develop an R-Generation<br />

programme through a campaign to ‘Collect the plastic, sow the<br />

future’. This awareness-rais<strong>in</strong>g <strong>in</strong>itiative <strong>and</strong> competition<br />

launched <strong>in</strong> the primary schools of Milan, Tur<strong>in</strong> <strong>and</strong> Naples <strong>in</strong><br />

2013 enc<strong>our</strong>ages children aged 8 to 11 to collect PET bottles<br />

<strong>and</strong> other 100%-recyclable packag<strong>in</strong>g. Dur<strong>in</strong>g the 2014 <strong>and</strong><br />

<strong>2015</strong> campaigns, nearly 30 000 children <strong>in</strong> 108 schools collected<br />

40 tonnes of PET. The R-Generation campaign <strong>in</strong> Italy also<br />

engages the children through an R-Generation website, which<br />

conta<strong>in</strong>s <strong>in</strong>formation about waste collection <strong>and</strong> recycl<strong>in</strong>g.<br />

The ‘Tunuyán verde’ campaign, launched <strong>in</strong> the Mendoza<br />

region of Argent<strong>in</strong>a <strong>in</strong> October 2014, seeks to reduce the<br />

number of PET bottles end<strong>in</strong>g up <strong>in</strong> local canals, rivers <strong>and</strong><br />

ditches. The municipality – supported by <strong>Nestlé</strong> Waters <strong>and</strong><br />

Intermunicipal Consortium Centro (COINCE) – provide primary<br />

schools with conta<strong>in</strong>ers for collect<strong>in</strong>g used plastic bottles;<br />

these are then segregated, compacted <strong>and</strong> sold for recycl<strong>in</strong>g,<br />

<strong>and</strong> the money raised buys books, computers, furniture <strong>and</strong><br />

equipment. <strong>Nestlé</strong> Waters’ role <strong>in</strong>volves consultancy <strong>and</strong><br />

community relations <strong>and</strong> produc<strong>in</strong>g campaign <strong>and</strong> collection<br />

materials. The second round of the campaign was announced<br />

<strong>in</strong> June <strong>2015</strong>, <strong>in</strong>volv<strong>in</strong>g children from 10 secondary schools.<br />

With the <strong>in</strong>volvement of <strong>Nestlé</strong> employees, children <strong>in</strong> the<br />

UK have been learn<strong>in</strong>g about the importance of recycl<strong>in</strong>g, the<br />

range of products that can be made from rPET, <strong>and</strong> how they<br />

are made. This was supplemented by a successful recycl<strong>in</strong>g<br />

poster competition. We are now work<strong>in</strong>g with two partners,<br />

RECOUP <strong>and</strong> WasteBuster, on a further recycl<strong>in</strong>g education<br />

programme <strong>in</strong> Buxton. Teacher packs, sent to all 11 schools <strong>in</strong><br />

Buxton, are also available to download from the WasteBuster<br />

website.<br />

Assess<strong>in</strong>g effectiveness<br />

To underst<strong>and</strong> how we are perceived <strong>and</strong> how well <strong>our</strong><br />

<strong>in</strong>formation has been received, we cont<strong>in</strong>uously review<br />

consumer feedback, carry out br<strong>and</strong> research <strong>and</strong> keep<br />

abreast of lead<strong>in</strong>g external studies. We also use Twitter <strong>and</strong><br />

other social media to engage with consumers on<br />

environmental issues that matter to them.<br />

We’ve also been successful <strong>in</strong> a number of lead<strong>in</strong>g thirdparty<br />

environmental <strong>and</strong> susta<strong>in</strong>ability rank<strong>in</strong>gs <strong>and</strong> <strong>in</strong>dices.<br />

There are enc<strong>our</strong>ag<strong>in</strong>g signs that we have been recognised by<br />

external stakeholders for communicat<strong>in</strong>g effectively with<br />

consumers about environmental issues.<br />

For example, <strong>Nestlé</strong> ranked 52 nd out of 100 selected<br />

companies, up two places from 2014, with a 7% <strong>in</strong>crease <strong>in</strong><br />

br<strong>and</strong> value, <strong>in</strong> Interbr<strong>and</strong>’s <strong>in</strong>dex of Best Global Br<strong>and</strong>s <strong>2015</strong>.<br />

Nescafé was ranked 36 th , also up two places, with a 7%<br />

improvement <strong>in</strong> br<strong>and</strong> value. The <strong>in</strong>dex measures<br />

environmental performance aga<strong>in</strong>st consumer perceptions,<br />

<strong>and</strong> a positive score <strong>in</strong>dicates that ‘a br<strong>and</strong> is do<strong>in</strong>g more than<br />

it is given credit for’. <strong>Nestlé</strong> was also ranked 18 th <strong>in</strong> the most<br />

recent Best Global Green Br<strong>and</strong>s <strong>in</strong>dex, last compiled <strong>in</strong> 2014.<br />

The <strong>in</strong>dex measures environmental performance aga<strong>in</strong>st<br />

consumer perceptions, <strong>and</strong> a positive score <strong>in</strong>dicates that<br />

‘a br<strong>and</strong> is do<strong>in</strong>g more than it is given credit for’.<br />

When consumers were asked to rate us on the statement<br />

‘<strong>Nestlé</strong> cares for the environment’, we performed better than<br />

the market average <strong>in</strong> 24 out of 33 countries (Corporate Equity<br />

Monitor, <strong>2015</strong>); <strong>Nestlé</strong> also significantly outperformed the best<br />

competitor <strong>in</strong> 15 of those markets. Only one market (Japan)<br />

recorded a score significantly below the market average.<br />

Number of countries where we performed better than the<br />

<strong>in</strong>dustry average on the statement ‘<strong>Nestlé</strong> cares for the<br />

environment’<br />

<strong>2015</strong> 24 out of 33 (73%)<br />

2013 24 out of 31 (77%)<br />

2012 19 out of 33 (57%)<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> 199

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