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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 />

Effluents <strong>and</strong> waste G4-DMA<br />

Packag<strong>in</strong>g<br />

We are committed to optimis<strong>in</strong>g the environmental performance of <strong>our</strong> packag<strong>in</strong>g, <strong>and</strong> we are<br />

work<strong>in</strong>g to ensure that the environmental benefits from packag<strong>in</strong>g improvements are not outweighed<br />

by <strong>in</strong>creased product losses due to under-packag<strong>in</strong>g. Packag<strong>in</strong>g helps prevent losses result<strong>in</strong>g from<br />

breakage <strong>and</strong> spoilage, so we’re develop<strong>in</strong>g methods that are more resistant to tear<strong>in</strong>g, punctures <strong>and</strong><br />

other damage. For example, water bottles can be damaged dur<strong>in</strong>g transportation due to the low<br />

stability of pallets <strong>and</strong> the force exerted on the load by stretched film. By chang<strong>in</strong>g the wrapp<strong>in</strong>g<br />

parameters of the stretch film, <strong>in</strong>creas<strong>in</strong>g the pallet stability <strong>and</strong> better controll<strong>in</strong>g the film force,<br />

package damage has been more than halved <strong>in</strong> Pol<strong>and</strong>, sav<strong>in</strong>g half a million bottles per month.<br />

Distribution<br />

We are tak<strong>in</strong>g steps to improve <strong>our</strong> dem<strong>and</strong> plann<strong>in</strong>g – support<strong>in</strong>g manufactur<strong>in</strong>g efficiency, reduc<strong>in</strong>g<br />

wastage due to age or obsolescence, optimis<strong>in</strong>g <strong>our</strong> <strong>in</strong>ventory management <strong>and</strong> ensur<strong>in</strong>g fresh<br />

products at po<strong>in</strong>t of sale. And we’re us<strong>in</strong>g <strong>our</strong> expertise <strong>and</strong> new technology to avoid food wastage <strong>in</strong><br />

<strong>our</strong> distribution operations.<br />

Consumers<br />

Offer<strong>in</strong>g consumers storage guidance <strong>and</strong> preparation <strong>in</strong>structions are important factors <strong>in</strong> reduc<strong>in</strong>g waste,<br />

so we provide clear <strong>in</strong>structions on <strong>our</strong> packag<strong>in</strong>g, as well as on product <strong>and</strong> br<strong>and</strong> websites, to raise<br />

awareness among consumers on the issue of food wastage. Products carry the slogan Portion Guidance.<br />

We’ve also been develop<strong>in</strong>g creative solutions that can help consumers make the most of leftovers.<br />

These <strong>in</strong>clude a range of different doughs (pizzas, pasties, etc.) that can be filled with leftover food<br />

from the fridge while <strong>in</strong> France, Maggi has brought out a smartphone leftovers app full of top tips <strong>and</strong><br />

recipes. Maggi Soups <strong>in</strong> India also has a microsite that is accessible by scann<strong>in</strong>g on-pack QR codes<br />

with a smartphone.<br />

<strong>Nestlé</strong> Professional has developed a range of onl<strong>in</strong>e c<strong>our</strong>ses for hospitality <strong>and</strong> food service<br />

customers <strong>in</strong> the UK <strong>and</strong> Irel<strong>and</strong>, <strong>in</strong>clud<strong>in</strong>g one focused on waste management issues that provides<br />

practical suggestions for reduc<strong>in</strong>g, reus<strong>in</strong>g <strong>and</strong> recycl<strong>in</strong>g waste.<br />

Employees<br />

We use employee engagement campaigns to raise awareness <strong>and</strong> reduce food wastage <strong>in</strong> <strong>our</strong><br />

canteens <strong>and</strong> factories. At <strong>our</strong> headquarters <strong>in</strong> Vevey, Switzerl<strong>and</strong>, employees were enc<strong>our</strong>aged to<br />

take reasonable portions at the self-service restaurant <strong>and</strong> given the opportunity to buy any leftovers<br />

to take home; <strong>in</strong> six months, food waste fell by a third. And at <strong>our</strong> Product Technology Centre <strong>in</strong> Orbe,<br />

employees could take an onl<strong>in</strong>e quiz on food loss <strong>and</strong> wastage.<br />

<strong>Nestlé</strong> <strong>and</strong> food banks <strong>in</strong> Mexico<br />

In Mexico, 27 million people (one <strong>in</strong> f<strong>our</strong>) live <strong>in</strong> food poverty<br />

yet a third of the food produced <strong>in</strong> the country is wasted 8 . Our<br />

policy stated that a product with less than one month before its<br />

expiration date could not be sold <strong>and</strong> had to be used as animal<br />

feed or destroyed. But when the non-profit NGO Bancos de<br />

Alimentos de México (BAMX) started operat<strong>in</strong>g food banks,<br />

channels for distribut<strong>in</strong>g products that we couldn’t sell, but<br />

were still suitable for human consumption, were established<br />

<strong>and</strong> accord<strong>in</strong>gly, we aligned <strong>our</strong> policies with these changes.<br />

Through <strong>our</strong> alliance with BAMX, runn<strong>in</strong>g s<strong>in</strong>ce 1999, we have<br />

provided 120 million meals s<strong>in</strong>ce 2006, to around 700 000<br />

low-<strong>in</strong>come consumers a year, as well as improv<strong>in</strong>g their<br />

nutrition knowledge <strong>and</strong> the quality of their diet <strong>in</strong> many cases.<br />

A survey by Monterey Food Bank <strong>and</strong> Universidad Autónoma<br />

de Nuevo León, supported by <strong>Nestlé</strong>, showed that <strong>our</strong> strategy<br />

takes more than 70% of children under 13 years out of<br />

malnutrition with<strong>in</strong> one year.<br />

Committed to reduce food loss <strong>and</strong> waste<br />

Our efforts to coord<strong>in</strong>ate <strong>our</strong> food wastage <strong>in</strong>itiatives across<br />

<strong>our</strong> value cha<strong>in</strong>, share good practice <strong>and</strong> guide multistakeholder<br />

<strong>in</strong>itiatives are coord<strong>in</strong>ated by <strong>our</strong> <strong>Nestlé</strong> Zero Food<br />

Wastage Taskforce, which met three times <strong>in</strong> <strong>2015</strong>.<br />

Its ma<strong>in</strong> achievement <strong>in</strong> the past year has been the launch<br />

of The <strong>Nestlé</strong> Commitment to reduce food loss <strong>and</strong> waste.<br />

This addresses food loss <strong>and</strong> waste through responsible<br />

s<strong>our</strong>c<strong>in</strong>g, zero waste for disposal <strong>in</strong> <strong>our</strong> sites, educat<strong>in</strong>g<br />

consumers <strong>and</strong> employees on reduc<strong>in</strong>g food waste, <strong>and</strong><br />

engag<strong>in</strong>g with key stakeholders – such as regulators <strong>and</strong><br />

scientists – to develop <strong>and</strong> implement solutions. The <strong>in</strong>itiative<br />

was launched dur<strong>in</strong>g the annual meet<strong>in</strong>g of SAVE FOOD, an<br />

organisation set up by Messe Dusseldorf, the Food <strong>and</strong><br />

Agriculture Organization (FAO) of the United Nations <strong>and</strong> the<br />

United Nations Environment Programme (UNEP) to combat<br />

food losses <strong>and</strong> wastage. The <strong>2015</strong> meet<strong>in</strong>g was hosted by<br />

<strong>Nestlé</strong> at <strong>our</strong> headquarters <strong>in</strong> Vevey, Switzerl<strong>and</strong>.<br />

8 S<strong>our</strong>ce: http://www.expoknews.com/700000-mexicanos-son-beneficiados-con-elprograma-alimenta-de-nestle-y-banco-de-alimentos/<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> 205

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