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-EC2, Energy G4-DMA, Emissions G4-DMA, G4-EN15, G4-EN16, G4-EN17, G4-EN20<br />
For example, we:<br />
• Help the farmers who supply <strong>our</strong> raw materials use water<br />
more efficiently;<br />
• Provide <strong>in</strong>vestment assistance for biogas digesters <strong>in</strong> dairy<br />
farms;<br />
• Optimise recipes <strong>and</strong> packag<strong>in</strong>g to reduce the carbon<br />
footpr<strong>in</strong>t of <strong>Nestlé</strong> products along their value cha<strong>in</strong>; <strong>and</strong><br />
• Help consumers reduce their energy consumption <strong>and</strong><br />
emissions when they prepare them, such as with <strong>our</strong><br />
energy-efficient Nespresso <strong>and</strong> Nescafé Dolce Gusto<br />
mach<strong>in</strong>es.<br />
As well as reduc<strong>in</strong>g GHG emissions, we also help agricultural<br />
<strong>and</strong> production systems become more resilient to the<br />
chang<strong>in</strong>g climate. This <strong>in</strong>cludes the tra<strong>in</strong><strong>in</strong>g on susta<strong>in</strong>able<br />
farm<strong>in</strong>g methods that we provide to <strong>our</strong> suppliers through<br />
<strong>in</strong>itiatives such as the <strong>Nestlé</strong> Cocoa Plan, the Nescafé Plan <strong>and</strong><br />
Nespresso’s AAA Program, <strong>and</strong> the development <strong>and</strong><br />
distribution of high-yield<strong>in</strong>g disease- <strong>and</strong> drought-resistant<br />
species of cocoa <strong>and</strong> coffee. We have made a commitment on<br />
no deforestation that aligns with the CGF’s goal to achieve<br />
zero net deforestation by 2020.<br />
Furthermore, we proactively engage with governments,<br />
<strong>in</strong>dustry <strong>and</strong> civil <strong>society</strong> to make cont<strong>in</strong>uous progress, <strong>and</strong><br />
actively contribute to global dialogue <strong>and</strong> <strong>in</strong>dustry <strong>in</strong>itiatives.<br />
Report<strong>in</strong>g<br />
Our commitment<br />
Our objective<br />
Promote transparency <strong>and</strong> proactive, long-term<br />
engagement <strong>in</strong> climate policy<br />
By 2016 – Provide climate change <strong>in</strong>formation <strong>in</strong> <strong>our</strong><br />
Annual Report package us<strong>in</strong>g the Climate Change<br />
Report<strong>in</strong>g Framework developed by the Climate<br />
Disclosure St<strong>and</strong>ards Board.<br />
We already provide climate change <strong>in</strong>formation <strong>in</strong> ma<strong>in</strong>stream<br />
corporate fil<strong>in</strong>gs <strong>and</strong> reports, <strong>in</strong> conformance with the Climate<br />
Disclosure St<strong>and</strong>ards Board (CDSB) Climate Change Report<strong>in</strong>g<br />
Framework requirements.<br />
In <strong>2015</strong>, we enhanced <strong>and</strong> updated the report<strong>in</strong>g of <strong>our</strong><br />
Scope 3 emissions 9 under the framework, to cover all relevant<br />
stages of the life cycle. We have decreased <strong>our</strong> Scope 3<br />
emissions <strong>in</strong> a number of areas, due to a change <strong>in</strong> output,<br />
a change <strong>in</strong> methodology or emissions reduction activities,<br />
as follows:<br />
• Change <strong>in</strong> output: purchased goods <strong>and</strong> services;<br />
upstream transportation <strong>and</strong> distribution; end-of-life<br />
treatment of sold products;<br />
• Change <strong>in</strong> methodology: fuel- <strong>and</strong> energy-related<br />
activities; <strong>in</strong>vestments; <strong>and</strong><br />
• Emissions reduction activities: fuel- <strong>and</strong> energy-related<br />
activities; waste generated <strong>in</strong> operations; bus<strong>in</strong>ess travel;<br />
downstream transportation <strong>and</strong> distribution.<br />
Our detailed report<strong>in</strong>g of Scope 3 emissions can be found on<br />
pages 124–137 of <strong>our</strong> <strong>2015</strong> CDP submission.<br />
We use the GHG Protocol, ‘Corporate <strong>Value</strong> Cha<strong>in</strong> (Scope 3)<br />
Account<strong>in</strong>g <strong>and</strong> Report<strong>in</strong>g St<strong>and</strong>ard’ to estimate <strong>our</strong> GHG<br />
emissions <strong>in</strong> <strong>our</strong> upstream <strong>and</strong> downstream operations. We<br />
also engage with key suppliers to obta<strong>in</strong> detailed <strong>in</strong>formation<br />
on their emission-generat<strong>in</strong>g activities, <strong>and</strong> help them<br />
implement less GHG-<strong>in</strong>tensive practices.<br />
In l<strong>in</strong>e with <strong>our</strong> broader Scope 3 emissions report<strong>in</strong>g, we<br />
will cont<strong>in</strong>ue to extend <strong>our</strong> GHG reduction efforts beyond <strong>our</strong><br />
direct manufactur<strong>in</strong>g emissions.<br />
Reduc<strong>in</strong>g GHG emissions<br />
Our commitment<br />
Our objectives<br />
Provide climate change leadership<br />
By <strong>2015</strong> – Reduce <strong>our</strong> direct GHG emissions per tonne of<br />
product by 35% versus 2005, result<strong>in</strong>g <strong>in</strong> an absolute<br />
reduction of GHG emissions.<br />
Reduction <strong>in</strong> direct GHG emissions (Scope 1)<br />
2005–<strong>2015</strong><br />
kg CO 2eq per tonne product<br />
120<br />
0%<br />
-10%<br />
100<br />
-20%<br />
-30%<br />
80<br />
-40% -42.7%<br />
60<br />
-50%<br />
-60%<br />
40<br />
-70%<br />
-80%<br />
20<br />
-90%<br />
0<br />
-100%<br />
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 <strong>2015</strong><br />
basel<strong>in</strong>e<br />
Target reduction aga<strong>in</strong>st 2005 basel<strong>in</strong>e<br />
% reduction<br />
s<strong>in</strong>ce 2005<br />
9 Scope 3: all the <strong>in</strong>direct emissions that occur <strong>in</strong> a company’s value cha<strong>in</strong>, both upstream<br />
<strong>and</strong> downstream.<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> 208