Nestlé in society Creating Shared Value and meeting our commitments 2015

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Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people G4-EC2, Energy G4-DMA, Emissions G4-DMA The main economic benefit for the producer is diversification – bringing added income from his land by planting trees for both timber and fruit. More generally, the employment creation of local technicians and the technical assistance are socioeconomic benefits for the participating communities. Trees also represent a retirement capital for farmers in their old age. In 2014, Nespresso piloted its approach in two areas where it had long provided technical assistance: the Huehuetenango cluster in Guatemala and the Cauca region of Colombia. The pilot has been extended in 2015 to the Bokasso region in Ethiopia, the Nariño cluster in Colombia and the Fraijanes region in Guatemala. In these five regions, around 2400 farmers benefited from this programme and planted more than 600 000 trees in the last two years. Nestlé CEO addresses UN Global Compact In June 2015, Nestlé Chief Executive Officer Paul Bulcke spoke at ‘Global Compact +15: Business as a Force for Good’ in New York. During a segment at the ‘Climate Action and the Environment’ event, entitled ‘Advancing the Sustainable Development Goals through Corporate Sustainability’, he called for coordinated action by governments, companies and NGOs to address climate change and safeguard water resources. He also emphasised the role of business in supporting the post-2015 Sustainable Development Goals (SDGs), discussed the impact of climate change and explained how Nestlé has integrated environmental sustainability as one of the foundations of its business. Plantlet distribution in Colombia © Christian Lamontagne/Pur Projet A coffee farmer in Colombia planting trees on his land Engagement on climate change Our commitment Our objective Promote transparency and proactive, long-term engagement in climate policy By 2016 – Implement Guide for Responsible Corporate Engagement in Climate Policy developed by CDP, the UN Global Compact, Ceres, The Climate Group, the World Wide Fund for Nature (WWF) and the World Resources Institute (WRI). We believe that the need to act on climate change is a precompetitive issue requiring multi-stakeholder collaboration, both directly with governments and through industry groups such as the CGF, UNFCCC, FoodDrinkEurope, UNEP, FAO and the WBCSD, as outlined below. There is an increased need for the industry associations we belong to or support to speak with one voice, reflecting the risks that climate change may present to our sector. In 2014, we conducted a gap analysis between our current situation and the Guide for Responsible Corporate Engagement in Climate Policy, a report outlining a consultation on responsible corporate engagement in climate policy led by Caring for Climate. The report sets out guidance on how companies can constructively influence public policy, engage in national and international debates, contribute to political progress on reducing GHG emissions and adapt to global climate change. We have the opportunity to help build the sustainable development agenda for the next 15 years and beyond. We are now looking to governments to show their leadership…to agree and, more importantly, to commit to ambitious targets with concrete actions; to shift to renewable energies; support effective land use and stop deforestation; and to take measures that will lead to a meaningful price on carbon.” Paul Bulcke, Chief Executive Officer, Nestlé Global Compact +15 brings together business, government and civil society to mark the 15 th anniversary of the UNGC, a voluntary initiative that now has more than 8300 member companies across 170 countries that work to adopt sustainable and socially responsible policies. Climate change initiatives Nestlé has endorsed the following climate change initiatives; these are fully aligned with our own explicit commitments, which reflect our respect for the society in which we operate, respect for the environment and respect for future generations. Caring for Climate As part of the company’s long-standing efforts to provide climate change leadership, Nestlé endorses major climate change initiatives such as Caring for Climate, the world’s largest global coalition on climate issues. It is led by the UNGC, UNEP and UNFCCC. By supporting the Caring for Climate Business Leadership Forum, Nestlé commits to renewing its efforts to improve energy efficiency, reducing the GHG emissions of its products, setting voluntary targets and publicly reporting on progress in the spirit of continuous improvement, as well as supporting related initiatives by other leading international organisations such as the CDP. Nestlé in society – Creating Shared Value and meeting our commitments 2015 214
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people G4-EC2, Energy G4-DMA, Emissions G4-DMA CDP climate action initiatives At the UN Climate Summit in September 2014, Nestlé announced its endorsement of the CDP’s six climate action initiatives, committing to: • Adopt evidence-based GHG emissions reduction targets that will help limit global warming to below 2°C, aided by the ‘Mind the Science, Mind the Gap’ methodology developed by CDP, UNGC, the WRI and World Wide Fund for Nature (WWF) (read more here); • Having a strategy to procure 100% of electricity from renewable sources within the shortest practical timescale (see below); • Removing commodity-driven deforestation from our supply chains; • Providing climate change information in mainstream corporate filings; • Responsibly engaging policy-makers on climate change policy; and • Putting a price on carbon. Paris Pledge for Action To affirm our strong commitment to a safe and stable climate, in which temperature rise is limited to under 2°C, Nestlé has signed the Paris Pledge for Action. In doing so, we welcomed the adoption of a new, universal climate agreement at COP 21 in Paris in December 2015, a critical step on the path to solving climate change, and pledged our support to ensuring that the ambition set by the agreement is met or exceeded. American Business Act on Climate Nestlé is also one of 81 companies to sign the American Business Act on Climate pledge. The signatories are demonstrating their support for action on climate change and the conclusion of a climate change agreement in Paris that takes a strong step forward toward a low-carbon, sustainable future. Other climate action initiatives We have put our support behind a number of additional major initiatives by leading international organisations. These include the ‘Trillion Tonne Communiqué’ by the Prince of Wales’s Corporate Leaders Group and the ‘New York Declaration on Forests’. As chair of the Environmental Sustainability Committee of FoodDrinkEurope, we actively participated in the development of the Time to Act: Climate Action and the Food and Drink Industry report. It shows that 95% of the respondents have already integrated climate change into their business strategy. It also stresses that the ‘whole of society’ needs to address this challenge, and must be galvanised by an ambitious, global climate deal. FoodDrinkEurope therefore called upon governments to reach an ambitious agreement on a new global framework for climate change at COP 21 in Paris in December 2015. CGF highlights Nestlé’s climate change actions At the Business and Climate Summit in Paris in June 2015, the CGF, co-chaired by Nestlé Chief Executive Officer Paul Bulcke, published its first-ever Climate Change booklet. The publication, launched during Paris Climate Week, highlights 18 real-life examples from Nestlé and other CGF members, detailing how they are making business changes to have a better impact on the climate. Each case study includes insight from the respective company’s CEO, details about their positive business actions on the issue described and key data to support their progress. The climate challenge is one we all need to take up; the time for talk is over. Our retailer and manufacturer members know this, and this booklet showcases how some of them are working individually and collectively to drive positive change globally.” Peter Freedman, Managing Director, The Consumer Goods Forum CDP report calls for lower agricultural emissions According to the global non-profit group CDP, many multinational food and beverage brands are missing their biggest chance to address climate risks, and need to work more closely with suppliers to improve agricultural emissions. However, it commends Nestlé for being in a small group that lies ‘ahead of the pack’ in approaching climate mitigation in their agricultural supply chains. The report, The forgotten 10%: Climate mitigation in agricultural supply chains, assessed data from 97 major food, beverage and tobacco companies, of which fewer than a quarter reported data on agricultural GHG emissions in their supply chains. The biggest source of GHG emissions in the food and beverage industry comes from agricultural production, yet less than a quarter of the companies in the survey reported their indirect GHG emissions from agricultural production. The report states the need for businesses to shift their focus to target agricultural production emissions directly, and calls on companies to cut emissions from this stage of the supply chain. Nestlé in society – Creating Shared Value and meeting our commitments 2015 215
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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