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 G4-26, G4-27, Employment G4-DMA Employee volunteering initiatives Volunteer programmes provide our employees with the opportunity to engage with local communities and help them. At the end of 2015, 84% of markets had employee volunteering activities, 81% of which contain nutrition, health and wellness components. Each market takes ownership of the planning and implementation of volunteer programmes, providing resources based on an agreed annual budget. Where a market has unique local priorities, volunteer programmes can focus on meeting other urgent needs of the local communities. Nestlé has a global partnership with the International Federation of the Red Cross and Red Crescent Societies (IFRC) for offering volunteer activities. Local partnerships can also be coordinated by markets. Community needs for these partnerships are determined jointly by the market, the partner organisation and the community. Nestlé overseas volunteering with the IFRC As part of our ongoing partnership with the IFRC, a Nestlé employee from our headquarters travelled to Ghana in November 2015. Over four weeks, he assisted as an IFRC volunteer with field training and visits to assess the impact of a local water and sanitation (WASH) project in communities where our cocoa is grown. The final programme is designed to meet three supplementary needs: to improve nutrition, reduce disaster risk, and safeguard the health of newborn babies and their mothers. A baseline survey was conducted in all selected sites during mid-November. The volunteer team, of which the Nestlé employee was a member, surveyed more than 1000 households in just four weeks, collecting data from 51 targeted communities. The information helps the IFRC to refine its approach and determine its ultimate impact. Read more about work with the IFRC. Nestlé in society – Creating Shared Value and meeting our commitments 2015 260
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Occupational health and safety G4-DMA, G4-LA8 Safety, health and wellness At Nestlé, safety is non-negotiable. We believe all accidents are preventable and work hard to foster our company’s safety and health culture. Our aim of zero work-related injuries and illnesses is ambitious; with the help of the programmes set out in our Safety and Health Roadmap, we are steadily moving towards it. We are also helping employees make more informed decisions on their health. The Nestlé Framework for Employee Health was approved in February 2015. It will help structure and focus existing efforts, promote proven practices, ensure cross-fertilisation and guide future developments at all levels. Our commitment Our objective Ensure all Nestlé employees are covered by a certified Safety and Health Management System By 2016 – Ensure that robust safety and health management systems are in place and certified to OHSAS 18001:2007, covering all Nestlé employees’ populations so there is a uniform level of safety and health protection across all businesses. Safety and health management systems certified to OHSAS 18001:2007 by the end of 2015 Type of facility Number certified Factories 427 Distribution centres 123 R&D centres 29 Offices 107 Field sales forces 79 We continuously improve our safety and health standards, procedures and processes, using the Nestlé Occupational Safety and Health Management System. It is based on the internationally recognised standard OHSAS 18001:2007. We use third-party auditors to verify the implementation and certification of these systems. This year, we are continuing to expand the scope of our management systems beyond manufacturing, to ensure employee populations are covered in our Research and Development (R&D), Office and Sales, and Supply Chain functions. We are working to ensure our markets have robust safety and health systems in place, covering all of our employees by a certified management system by the end of 2016. We progressed from 61% coverage to 70% 2 by the end of 2015 but we are behind target to meet our internal yearly objective of 80% for 2015. A key contributor is insufficient time anticipated for resource mobilisation and competency building beyond manufacturing and in acquired joint ventures, in order to achieve certification. However, where needed, functional support is being provided to maintain and accelerate progress and we are continuing to monitor progress on a regular basis. What is OHSAS 18001? BS OHSAS 18001 is a framework for an occupational health and safety management system. It sets out the minimum requirements for best practices, enabling organisations to: • Create the best possible working conditions across organisations; • Identify hazards and implement management controls; • Reduce workplace accidents and illness to cut related costs and downtime; • Engage and motivate staff with better and safer working conditions; and • Demonstrate compliance to customers and suppliers. Our facilities that are not yet certified to OHSAS 18001 are covered by our global external audit programme, CARE. It monitors compliance with local legislation, the Nestlé Code of Business Conduct and the Nestlé Corporate Business Principles, including those items specifically relating to safety, health and environmental sustainability. Sites that are OHSAS 18001 and ISO 14001 certified are exempted from two elements, related to safety and health, and environmental sustainability during their CARE Audits. 2 70% is in reference to employees and not sites Nestlé in society – Creating Shared Value and meeting our commitments 2015 261
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