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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<br />

CDP climate action <strong>in</strong>itiatives<br />

At the UN Climate Summit <strong>in</strong> September 2014, <strong>Nestlé</strong><br />

announced its endorsement of the CDP’s six climate action<br />

<strong>in</strong>itiatives, committ<strong>in</strong>g to:<br />

• Adopt evidence-based GHG emissions reduction targets<br />

that will help limit global warm<strong>in</strong>g to below 2°C, aided by<br />

the ‘M<strong>in</strong>d the Science, M<strong>in</strong>d the Gap’ methodology<br />

developed by CDP, UNGC, the WRI <strong>and</strong> World Wide Fund<br />

for Nature (WWF) (read more here);<br />

• Hav<strong>in</strong>g a strategy to procure 100% of electricity from<br />

renewable s<strong>our</strong>ces with<strong>in</strong> the shortest practical timescale<br />

(see below);<br />

• Remov<strong>in</strong>g commodity-driven deforestation from <strong>our</strong> supply<br />

cha<strong>in</strong>s;<br />

• Provid<strong>in</strong>g climate change <strong>in</strong>formation <strong>in</strong> ma<strong>in</strong>stream<br />

corporate fil<strong>in</strong>gs;<br />

• Responsibly engag<strong>in</strong>g policy-makers on climate change<br />

policy; <strong>and</strong><br />

• Putt<strong>in</strong>g a price on carbon.<br />

Paris Pledge for Action<br />

To affirm <strong>our</strong> strong commitment to a safe <strong>and</strong> stable climate,<br />

<strong>in</strong> which temperature rise is limited to under 2°C, <strong>Nestlé</strong> has<br />

signed the Paris Pledge for Action. In do<strong>in</strong>g so, we welcomed<br />

the adoption of a new, universal climate agreement at COP 21<br />

<strong>in</strong> Paris <strong>in</strong> December <strong>2015</strong>, a critical step on the path to solv<strong>in</strong>g<br />

climate change, <strong>and</strong> pledged <strong>our</strong> support to ensur<strong>in</strong>g that the<br />

ambition set by the agreement is met or exceeded.<br />

American Bus<strong>in</strong>ess Act on Climate<br />

<strong>Nestlé</strong> is also one of 81 companies to sign the American<br />

Bus<strong>in</strong>ess Act on Climate pledge. The signatories are<br />

demonstrat<strong>in</strong>g their support for action on climate change <strong>and</strong><br />

the conclusion of a climate change agreement <strong>in</strong> Paris that takes<br />

a strong step forward toward a low-carbon, susta<strong>in</strong>able future.<br />

Other climate action <strong>in</strong>itiatives<br />

We have put <strong>our</strong> support beh<strong>in</strong>d a number of additional major<br />

<strong>in</strong>itiatives by lead<strong>in</strong>g <strong>in</strong>ternational organisations. These <strong>in</strong>clude<br />

the ‘Trillion Tonne Communiqué’ by the Pr<strong>in</strong>ce of Wales’s<br />

Corporate Leaders Group <strong>and</strong> the ‘New York Declaration on<br />

Forests’.<br />

As chair of the Environmental Susta<strong>in</strong>ability Committee of<br />

FoodDr<strong>in</strong>kEurope, we actively participated <strong>in</strong> the development<br />

of the Time to Act: Climate Action <strong>and</strong> the Food <strong>and</strong> Dr<strong>in</strong>k<br />

Industry report. It shows that 95% of the respondents have<br />

already <strong>in</strong>tegrated climate change <strong>in</strong>to their bus<strong>in</strong>ess strategy.<br />

It also stresses that the ‘whole of <strong>society</strong>’ needs to address<br />

this challenge, <strong>and</strong> must be galvanised by an ambitious, global<br />

climate deal. FoodDr<strong>in</strong>kEurope therefore called upon<br />

governments to reach an ambitious agreement on a new<br />

global framework for climate change at COP 21 <strong>in</strong> Paris <strong>in</strong><br />

December <strong>2015</strong>.<br />

CGF highlights <strong>Nestlé</strong>’s climate<br />

change actions<br />

At the Bus<strong>in</strong>ess <strong>and</strong> Climate Summit <strong>in</strong> Paris <strong>in</strong> June <strong>2015</strong>, the<br />

CGF, co-chaired by <strong>Nestlé</strong> Chief Executive Officer Paul Bulcke,<br />

published its first-ever Climate Change booklet.<br />

The publication, launched dur<strong>in</strong>g Paris Climate Week,<br />

highlights 18 real-life examples from <strong>Nestlé</strong> <strong>and</strong> other CGF<br />

members, detail<strong>in</strong>g how they are mak<strong>in</strong>g bus<strong>in</strong>ess changes to<br />

have a better impact on the climate. Each case study <strong>in</strong>cludes<br />

<strong>in</strong>sight from the respective company’s CEO, details about their<br />

positive bus<strong>in</strong>ess actions on the issue described <strong>and</strong> key data<br />

to support their progress.<br />

The climate challenge is one we all need to<br />

take up; the time for talk is over. Our retailer <strong>and</strong><br />

manufacturer members know this, <strong>and</strong> this booklet<br />

showcases how some of them are work<strong>in</strong>g<br />

<strong>in</strong>dividually <strong>and</strong> collectively to drive positive<br />

change globally.”<br />

Peter Freedman, Manag<strong>in</strong>g Director, The<br />

Consumer Goods Forum<br />

CDP report calls for lower agricultural emissions<br />

Accord<strong>in</strong>g to the global non-profit group CDP, many<br />

mult<strong>in</strong>ational food <strong>and</strong> beverage br<strong>and</strong>s are miss<strong>in</strong>g their<br />

biggest chance to address climate risks, <strong>and</strong> need to work<br />

more closely with suppliers to improve agricultural emissions.<br />

However, it commends <strong>Nestlé</strong> for be<strong>in</strong>g <strong>in</strong> a small group that<br />

lies ‘ahead of the pack’ <strong>in</strong> approach<strong>in</strong>g climate mitigation <strong>in</strong><br />

their agricultural supply cha<strong>in</strong>s.<br />

The report, The forgotten 10%: Climate mitigation <strong>in</strong><br />

agricultural supply cha<strong>in</strong>s, assessed data from 97 major food,<br />

beverage <strong>and</strong> tobacco companies, of which fewer than a<br />

quarter reported data on agricultural GHG emissions <strong>in</strong> their<br />

supply cha<strong>in</strong>s. The biggest s<strong>our</strong>ce of GHG emissions <strong>in</strong> the food<br />

<strong>and</strong> beverage <strong>in</strong>dustry comes from agricultural production, yet<br />

less than a quarter of the companies <strong>in</strong> the survey reported<br />

their <strong>in</strong>direct GHG emissions from agricultural production.<br />

The report states the need for bus<strong>in</strong>esses to shift their focus<br />

to target agricultural production emissions directly, <strong>and</strong> calls on<br />

companies to cut emissions from this stage of the supply cha<strong>in</strong>.<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> 215

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