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 Investment G4-DMA, Indigenous rights G4-DMA, Assessment G4-DMA, G4-HR9, G4-HR11 Name of policy or procedure The Nestlé Commitment on Land & Land Rights in Agricultural Supply Chains Nestlé Commitment on Water Stewardship Nestlé Marketing Communication to Children Policy Nestlé Commitment on Labour Rights in Agricultural Supply Chains Approval date Rights holders 2014 Farmers Farm workers Local communities (rural) Indigenous peoples 2014 Nestlé employees Local communities Human rights issue addressed • Land tenure, including customary rights • Free, prior and informed consent • Access to water and sanitation 2015 Children • Marketing to children 2015 Suppliers’ workers Farm workers • Freedom of association and collective bargaining • Forced and bonded labour • Child labour • Health and safety • Accommodation and basic needs • Working time • Living wage Maternity Protection Policy 2015 Nestlé employees • Right to social security, including social insurance Our achievements in 2015 This year, we released a new Nestlé Commitment on Labour Rights in Agricultural Supply Chains that summarises and clarifies how we address labour-related risks in agricultural supply chains in particular. It builds upon existing Nestlé policies in this area (see table above), as well as on the existing work of our HRIAs, our Responsible Sourcing programme and our Farmer Connect activities. Read more in the Rural development chapter. We also revised and strengthened our Marketing Communication to Children Policy in 2015, and published our global Maternity Protection Policy. Our objective By 2015 – Include human rights across all 12 categories covered by the Nestlé Responsible Sourcing Guideline. Human rights became fully integrated into the Nestlé Responsible Sourcing Guideline in 2013 and the Nestlé Supplier Code in 2014, ahead of schedule. Consequently, they are now integral to our development work across all our 12 key commodity categories. Find out more about our responsible sourcing. Pillar 2: Stakeholder engagement Our approach: we engage with key stakeholders to get global and local insights into our human rights performance. Human rights have been systematically integrated as part of our annual stakeholder convenings, which gather representatives from government agencies, international organisations, trade unions, business associations, civil society organisations and academia. In addition to these convenings, we engage with key local stakeholders as part of our incountry Human Rights Impact Assessments (HRIAs) (see page 234). The combination of global and local expert inputs offers us a unique opportunity to incorporate new ideas and perspectives into our overall approach to human rights. At the industry level, we engage with different business organisations – such as the World Business Council for Sustainable Development (WBCSD), the Consumer Goods Forum (CGF) and the UN Global Compact (UNGC) – to advance the business and human agenda in a pre-competitive manner, and invite more companies to join. We are also an active member of several multi-stakeholder initiatives, such as the Child Labour Platform. We continued our dialogue with the Swiss NGO consortium Alliance Sud on business and human rights-related issues in Colombia and other countries. We also participated in the multi-stakeholder consultation process for the development of a Swiss national action plan on business and human rights. Further demonstrating engagement at the highest level, our CEO Paul Bulcke met with Zeid bin Ra’ad, the UN High Commissioner for Human Rights in January, as well as with Guy Rider, Director-General of the International Labour Organization (ILO) in November of this year. Nestlé in society – Creating Shared Value and meeting our commitments 2015 232
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Investment G4-DMA, G4-HR2, G4-HR4, Assessment G4-DMA, G4-HR9 Our achievements in 2015 We held two stakeholder convenings in 2015 – one in London, UK, and one in Washington DC, USA – where we discussed human rights-related issues with expert stakeholders as part of dedicated breakout sessions. In Washington DC, we presented our stakeholders with the new list of our salient human rights issues to get their feedback and inputs. On the industry front, as part of the CGF’s new Sustainability Steering Committee, we actively promoted a resolution on forced labour that is aligned with the UNGP. We also contributed to a webinar organised by the WBCSD on human rights reporting, sharing our experience in piloting the new UNGP Reporting Framework. As part of the UNGC, our Group General Counsel actively participated in the work that led to the development and release of the Business for the Rule of Law Framework and the Guide for General Counsel on Corporate Sustainability. Pillar 3: Training and awareness raising Our approach: we develop the awareness and the skills of our employees in order to make their work-related decisions and actions aligned with human rights. Our training is delivered at two different levels. At the global level, we have developed an online human rights training module for Nestlé employees. The objectives of these modules are to: • Make all employees aware of the company’s position regarding human rights and inform them about the relevant Nestlé policies and procedures; • Share with them good practice examples based on our experience in this area; and • Make them think – individually and collectively – about human rights issues, challenges and opportunities in their own work environment. At the functional level, we have developed specific training modules for targeted departments with the company. These aim to go one step further than the online training, as they focus on issues that are specific to the function, using real-life case studies or imagined scenarios. These face-to-face training sessions are delivered together with a human rights ‘champion’ from the department, usually a member of the HRWG (see page 224). Our achievements in 2015 Our objective By 2015: All FTSE4Good Countries of Concern where we operate are covered and our employees trained to reduce human rights risks in our operations. (FTSE4Good is an ethical stock market index series of the London Stock Exchange, designed to measure objectively the performance of companies that meet globally recognised responsibility standards.) In 2015, we trained 8130 (2.4%) employees on human rights across nine FTSE4Good Countries of Concern. (The FTSE4Good is the ethical stock market indices of the Financial Times and the London Stock Exchange, and is designed to measure objectively the performance of companies that meet globally recognised corporate responsibility standards.) Since the launch of our online human rights training tool in 2011, 72 778 (27.71%) employees in 66 countries have been trained. Direct engagement with the relevant departments allows us to tailor human rights training to the specific issues they face in their daily activities. Pillar 4: Risk evaluation Our approach: we evaluate human rights-related risks in order to manage them proactively. Our exposure to human rights risks (reputation, liability, operations, etc.) is evaluated annually at corporate level by the HRWG, with inputs from the DIHR. Each risk entry is rated across four different levels: Nestlé facilities, Tier 1 suppliers, upstream suppliers (including farmers) and local communities. Risk ratings are based on likelihood and impact. Information and data from issue and crisis management systems, media (including social media) monitoring mechanisms, and CARE and Responsible Sourcing Audits, as well as the results of the HRIAs, feed into the annual review process. The results of this exercise are integrated into our Enterprise Risk Management (ERM) system. Each risk identified as high comes with a specific action that is presented to the Executive Board as part of the annual ERM review process. This risk-to-the-business approach complements the concept of ‘salience’, which focuses on risks to the rights holders. Nestlé in society – Creating Shared Value and meeting our commitments 2015 233
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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