Nestlé in society Creating Shared Value and meeting our commitments 2015

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hospitality manufacturing Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Effluents and waste G4-DMA All US factories achieve zero waste to landfill 4,000 tonnes 300,000 tonnes 600,000 tonnes How one UK factory achieved zero waste is generated in distribution come from over-ordering, damage or looking ‘imperfect’ is discarded by hotels and offices 3.2m tonnes is binned by 10,000 food & drink factories 7.2m tonnes is thrown away by households. 61% is avoidable 1.2-2bn tonnes of vegetable crops are not harvested because they look ‘imperfect’ In April 2015, Nestlé USA announced that all of its 23 factories – spanning confectionery, dairy, frozen and refrigerated meals, ice cream, baking ingredients and beverages – are landfill-free, contributing zero waste for disposal. This important milestone supports Nestlé USA’s commitment to environmentally sustainable business practices. As part of this effort, Nestlé USA is continually looking for new ways to reuse, recycle and recover energy when disposing of manufacturing by-products. The company’s current efforts include composting, recycling, energy production and creating safe products for animal feed. Employees also engage in recycling programmes and partnerships with third parties that dispose of manufacturing by-products in line with our environmental sustainability guidelines and standards. All our US factories employ ISO 14001-certified environmental management systems to help manage their environmental impacts, including waste elimination. On the outskirts of Newcastle upon Tyne in the UK, Nestlé’s factory in Fawdon has achieved zero waste to landfill by turning waste from the confectionery site’s manufacturing At NestlÉ UK & IRELAND, processes into renewable energy and clean water through anaerobic digestion (AD). Every day, up all to of four factories tonnes of will solid sendwaste residues – a mixture of rejected chocolates and sweets, along with leftover residues of starch and zero sugar waste – to are landfill broken by down end 2015 and partially dissolved using 200 000 litres of liquid waste from the site’s cleaning processes to create a ‘chocolate soup’. This is fed into an oxygen-free AD tank, where bacteria break down the 1,200 1,002 biodegradable tonnes material and tonnes convert it into by-products 70% such as biogas, which is used to meet 5% to 8% of the site’s energy needs. As well of as food generating OF Carbon renewable energy, fewerthe water discharged from waste the savedfactory Saved is now virtually skips clean. filled The waste from producing Nestlé favourites is used to POWER PART OF THE FACTORY This is an especially noteworthy achievement given the breadth and complexity of our manufacturing operations. We are committed to working with our employees to ensure our factories remain landfill-free and are striving for new ways to reduce our environmental impact at each stage of the product lifecycle.” Paul Grimwood, Chairman and CEO, Nestlé USA Waste ingredients are sent to the pit 97% less effluent is produced Biogas is converted to heat and electricity TO POWER THE FACTORY In almost all the countries where we have operations, alternatives to landfill or incineration without energy recovery exist but, in many locations, the infrastructure to make it possible is insufficiently developed. This makes it challenging to achieve our ambition of zero waste for disposal at every site. Nonetheless, having exceeded our 2015 goal to achieve zero waste in 10% of Nestlé factories two years early, we have now set ourselves a new stretching objective: to achieve zero waste for disposal in all sites by 2020. Number of factories with zero waste for disposal 2015 105 2014 72 2013 56 WASTE PIT Liquid waste is fed into the digester ANAEROBIC DIGESTER Waste sludge is used for organic compost Food is a valuable resource that we should prevent from ending up in landfill See Full-size infographic (PDF, 700 KB) Sending zero waste to landfill Nestlé also has anaerobic digestion technology at its coffee factory in Orbe, Switzerland, in the UK by and 2020 we could are mean: installing it at our Henniez water factory in the Broye region of Switzerland, taking us closer to having zero waste for disposal in our factories 27mby 2020. 1.3m tonnes tonnes £3.7bn £12bn over 1.1twh Waste is converted to biogas HEAT & ELECTRICITY less in greenhouse gas emissions of valuable nutrients returned to the soil of energy produced public sector savings household savings Nestlé’s 150 European factories will all comply by 2020. Nestlé in society – Creating Shared Value and meeting our commitments 2015 202 What can you do to prevent food waste?
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Effluents and waste G4-DMA Recovery of by-products A by-product is any material that leaves a Nestlé-managed site and is destined for reuse or recovery; this includes recycling, composting and incineration with energy recovery. In 2015, we recovered 91% of the materials that arise from manufacturing. And of the waste we disposed of, 91% went to landfill, 4% to incineration without energy recovery and 5% to other methods of disposal. Material recovery and disposal rates (%) 2005 2014 2015 Materials recovered 85 88 91 Materials disposed of 15 12 9 We’ve begun a detailed analysis of the waste and by-products generated by our manufacturing facilities, to highlight best practice across our markets and identify opportunities to transform waste streams into useful by-products. For example: • Composting: the Shimada factory in Japan recycles some of the coffee grounds produced during the coffee manufacturing process by fermenting them and turning them into soil, which is donated to the city’s Rose Hill Park and local schools; • Incineration with energy recovery: in 22 Nescafé factories, we use the spent coffee grounds resulting from the manufacturing process as a source of renewable energy; and • Animal feed: in Japan, our zero waste KitKat factory in Kasumigaura turns all its food waste into animal feed, sending it to local ostrich, pig and dairy farms. Waste for disposal generated in our factories (kg waste for disposal/tonne of product) kg per tonne of product 14 12 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 kg waste for disposal/tonne of product Waste and by-product recovery rate (%) 2012 2013 2014 2015 1.0 0.8 0.6 0.4 0.2 0.0 Waste and by-product recovery rate (%) Reducing food loss and waste About one-third of global food production is either wasted or lost every year. Food waste not only generates unnecessary greenhouse gas emissions and wastage of water but also affects farmer income, and the availability and cost of food. In developing countries, this occurs largely in the upstream supply chain, while in the developed world, it is more concentrated downstream, between the retailer and the consumer. Addressing food loss and waste is a crucial part of the journey towards being able to feed an estimated 8 billion global population by 2030 and 9.6 billion by 2050, according to the UN. We are committed to continuing to reduce food loss and waste. Not only will this help us secure supplies of the agricultural raw materials we need, but it will also have a positive impact on society by supporting rural development, water conservation and food security. By-product destination (%) 36.4 15.1 10.4 25.5 12.6 Composting (407 684 tonnes) Incineration with energy recovery (200 779 tonnes) Other recovery process (166 245 tonnes) Recycling (582 169 tonnes) Reuse (241 060 tonnes) Nestlé in society – Creating Shared Value and meeting our commitments 2015 203
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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