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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 />

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

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