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 />
G4-26, G4-27, G4-EC2, Energy G4-DMA, G4-EN11, G4-EN12, G4-EN13, Emissions G4-DMA, Public policy G4-DMA<br />
We have further identified those factories where we have<br />
either a dependency or a potential impact on Important Water<br />
Areas. Our <strong>in</strong>itial analysis identified 17 factories associated with<br />
Important Water Areas, all of which were contacted to obta<strong>in</strong><br />
further <strong>in</strong>formation. Further analysis <strong>and</strong> ref<strong>in</strong>ement provided<br />
us with a def<strong>in</strong>itive list of 13 factories that are located <strong>in</strong><br />
protected areas categorised as Important Water Areas, split <strong>in</strong>to<br />
f<strong>our</strong> categories based on their level of dependency or impact.<br />
Five factories fall <strong>in</strong>to the category of highest significance.<br />
While we already have robust operational practices at<br />
these factories, <strong>in</strong> all cases, there are opportunities to<br />
strengthen engagement with relevant authorities <strong>and</strong>, where<br />
appropriate, align the management of <strong>our</strong> l<strong>and</strong> hold<strong>in</strong>gs with<br />
surround<strong>in</strong>g stakeholders.<br />
To develop natural habitats <strong>and</strong> <strong>in</strong>crease biodiversity, we have<br />
now planted wildflower meadows at all <strong>Nestlé</strong> UK & Irel<strong>and</strong><br />
sites. The meadows are designed to attract a variety of<br />
wildlife, <strong>in</strong>clud<strong>in</strong>g poll<strong>in</strong>ators such as butterflies, bees <strong>and</strong><br />
birds that are <strong>in</strong>tegral to the food supply cha<strong>in</strong>. Eleven out of<br />
thirteen <strong>Nestlé</strong> <strong>in</strong> the Market factory sites had also developed<br />
butterfly meadows by the end of <strong>2015</strong>.<br />
Meanwhile, <strong>Nestlé</strong> Indonesia has made augers available for<br />
loan to enc<strong>our</strong>age employees to drill biopore holes at their<br />
work locations <strong>and</strong> at home. Through this activity, we hope to<br />
make the l<strong>and</strong> better able to absorb <strong>and</strong> store ra<strong>in</strong>water, <strong>and</strong><br />
reduce the risk of flood<strong>in</strong>g. The company has also purchased<br />
<strong>and</strong> planted thous<strong>and</strong>s of locally s<strong>our</strong>ced trees on factory<br />
premises <strong>and</strong> <strong>in</strong> the surround<strong>in</strong>g community <strong>in</strong> recent years.<br />
Support<strong>in</strong>g public policy<br />
We are <strong>in</strong>volved <strong>in</strong> a number of <strong>in</strong>itiatives that enable<br />
bus<strong>in</strong>esses to assess, measure <strong>and</strong> value their dependencies<br />
<strong>and</strong> impacts. The objective of this work is to enable<br />
organisations to better underst<strong>and</strong> these aspects, <strong>and</strong><br />
determ<strong>in</strong>e the bus<strong>in</strong>ess value <strong>and</strong> rationale for actions to<br />
protect, manage <strong>and</strong> restore nature.<br />
Restor<strong>in</strong>g the natural balance<br />
Brita<strong>in</strong>’s record on habitat protection is among the poorest <strong>in</strong><br />
Europe, accord<strong>in</strong>g to a recent report from the European<br />
Commission <strong>and</strong> the European Environment Agency, partly due<br />
to the pressure from agriculture on UK l<strong>and</strong>. The report<br />
showed that more than 80% of the UK’s habitats are <strong>in</strong> a poor<br />
condition.<br />
In June <strong>2015</strong>, the UK th<strong>in</strong>k tank Green Alliance launched a<br />
major new Natural Environment programme, address<strong>in</strong>g<br />
politicians’ failure to deal with the cont<strong>in</strong>u<strong>in</strong>g deterioration of<br />
natural systems <strong>in</strong> the UK.<br />
In its first year, the programme will be work<strong>in</strong>g on two<br />
aligned projects, one of which <strong>in</strong>cludes a collaboration with<br />
<strong>Nestlé</strong>. This will <strong>in</strong>volve work<strong>in</strong>g with bus<strong>in</strong>ess <strong>and</strong> civil <strong>society</strong><br />
partners to turn new th<strong>in</strong>k<strong>in</strong>g about the economic value of<br />
natural capital <strong>in</strong>to practical policies <strong>and</strong> practices that enable<br />
us to thrive <strong>and</strong> develop alongside natural systems, <strong>and</strong> with<strong>in</strong><br />
natural limits.<br />
The th<strong>in</strong>k<strong>in</strong>g beh<strong>in</strong>d the concept of natural capital is<br />
advanc<strong>in</strong>g rapidly, <strong>and</strong> this project will allow us to<br />
help identify <strong>and</strong> shape the <strong>in</strong>centives that can guide<br />
further actions by l<strong>and</strong> owners, <strong>and</strong> companies <strong>in</strong> the<br />
value cha<strong>in</strong>, to help the UK restore the nature upon<br />
which we depend.”<br />
Andrew Griffiths, Head of Environmental<br />
Susta<strong>in</strong>ability, <strong>Nestlé</strong> UK <strong>and</strong> Irel<strong>and</strong><br />
<strong>Nestlé</strong> is a signatory to the Natural Capital Leadership<br />
Compact, launched by the Cambridge Institute for<br />
Susta<strong>in</strong>ability Leadership, <strong>and</strong> is also an active member of the<br />
Cambridge Natural Capital Leaders Platform, a major<br />
bus<strong>in</strong>ess-led programme focused on gather<strong>in</strong>g practical<br />
evidence to <strong>in</strong>form the actions that companies can take <strong>and</strong> to<br />
identify support<strong>in</strong>g policies. The cross-sectoral platform<br />
addresses the impacts of ecosystems <strong>and</strong> natural capital loss<br />
<strong>and</strong> degradation on bus<strong>in</strong>esses, their customers <strong>and</strong> wider<br />
<strong>society</strong>. Dur<strong>in</strong>g <strong>2015</strong>, we cont<strong>in</strong>ued <strong>our</strong> membership of the<br />
platform, support<strong>in</strong>g the development of the next three-year<br />
phase of its work. We are part of one of the work<strong>in</strong>g groups<br />
<strong>in</strong>vestigat<strong>in</strong>g natural capital <strong>in</strong> the dairy sector <strong>in</strong> the UK.<br />
<strong>Nestlé</strong> also produced an <strong>in</strong>itial valuation of the impact <strong>our</strong><br />
bus<strong>in</strong>ess has upon natural capital, provid<strong>in</strong>g <strong>in</strong>sights <strong>in</strong>to the<br />
emerg<strong>in</strong>g discipl<strong>in</strong>e of natural (<strong>and</strong> social) capital valuation.<br />
A study completed <strong>in</strong> <strong>2015</strong> helped us better underst<strong>and</strong> the<br />
methodologies beh<strong>in</strong>d the valuation of natural <strong>and</strong> social<br />
capital, through the production of an evaluation of<br />
environmental impact for <strong>Nestlé</strong>. It also explored how to<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> 219