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 Occupational health and safety G4-DMA Our Safety and Health Roadmap towards Excellence Ambition Zero injuries & illnesses Strategic priorities Personal ownership & engagement Managing key risks Health management Management processes S&H functional capability & leadership S&H beyond operations Vehicles & driving Illness investigation Communication & training S&H functional capability Capability of managers Material-handling equipment Ergonomics Safety by design & change control S&H organisation & resources Three-year focus areas Values-based behaviours Process safety Contractors & construction Resilience & stress * Wellness * Permit-to-work Audit Machinery Electricity * Strategy will be led by HR. Leading & lagging indicators Key enablers Nestlé Continuous Excellence Tools & Methodologies Our Safety and Health Roadmap towards Excellence The Nestlé Safety and Health Roadmap sets out our ambition, strategic priorities and focus areas. It is not intended to be an exhaustive list of everything that we work on – its aim is rather to set high level priorities which will guide our planning processes over the next few years. The Ambition and Strategic Priorities reflect long-term commitments while our focus areas identify where we will target efforts to drive improvements. We encourage all our business teams to use the roadmap and adapt it based on local priorities, if necessary. Since its introduction in 2012, we have seen improvements in employee personal ownership and engagement, resulting in greater levels of protection of our people at work. It has also enabled a deeper integration of health within our safety programmes. Behavioural change has been delivered through new Group-wide programmes and local initiatives, aligned with our strategic priorities. As a result, our recordable injury rate decreased from 3.56 in 2012 to 2.57 in 2015. This assures us that our efforts are bearing fruit and we are heading in the right direction. As for illnesses – where we did not have a solid baseline – we are getting better at recognising where work contributes to ill health. But we also know that we have a long way to go in this regard. We are conducting ergonomics workshops in different markets and enhancing the capability of our managers to make the link between work and the associated effects on health. An e-learning module on ergonomics has also been deployed. We are actively encouraging markets to report work-related illnesses transparently, to establish a more robust baseline. Accordingly, we have not currently fixed improvement targets, believing that our illness rates will show a reverse trend for some time. However, we are confident that this is not reflective of the working conditions at our sites, and instead indicates the improved capability of our management to recognise workrelated illnesses. There are some topics that do not feature in the roadmap, but can clearly impact workplace health. With noise, for example, we have recognised its importance and effect on workplace health and, in 2015, we revised our Group standard on workplace noise to reflect current best practice. Our Engineering and Packaging functions are working diligently to ensure that we take care of such aspects during the design stage of the new machinery. In 2014, in order to remain relevant to the new and changing reality, we conducted a workshop at the Group head office with our key stakeholders, comprising members from various corporate functions, as well as line managers from our Zone management and our globally and regionally managed businesses. The workshop was designed to gather their feedback on our achievements, current activities and programmes, new areas of concern, or opportunities for improvement. We also conducted separate tele-conferences with market Safety, Health and Environment Managers from all the three zones, seeking their input. In 2015, using this feedback, alongside analysis of our 2014 injury and illness data, we updated our current roadmap for the next three years (2016–2018). This renewed Nestlé Safety and Health Roadmap towards Excellence is applicable from 1 January 2016 and more information will be shared in the CSV 2016 report. Nestlé in society – Creating Shared Value and meeting our commitments 2015 262
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 Strategic priority 1: personal ownership and engagement To achieve our ambition, we need to ensure everyone is engaged across our business. A key focus for our activities is behavioural change to renew personal ownership. Safety and health beyond operations Traditionally, safety and health activities and programmes were mainly targeted at our manufacturing sites. However, in order to care for all employees who work in other parts of the business, we have expanded the scope beyond operations. We have revised the requirements for sales and supply chain, and have committed to cover all employees under a certified safety and health management system. We have strengthened our partnership with HR to sponsor safety and health beyond operations, putting in place clear responsibility for leadership and support. This partnership is improving compliance in our Sales, Supply Chain and Office-based functions. Senior management from functions other than Manufacturing are increasingly engaged on this important matter and are actively sponsoring the implementation of initiatives and programmes that will enhance safety and health in their part of the business. Capability of managers We believe that top management leadership is the single most important determinant in improving the safety and health performance. We have, therefore, deployed training programmes to improve the capability of managers to lead continuous improvement in safety and health. Safety and health is being steadily integrated into senior leadership training courses at our global training centre at Rive-Reine. We are using a number of trainers, both internal and external, to deliver training and we monitor progress against this leading indicator, using our performance tracking tool. Our Leadership Through Safety® programmes are designed for us, integrating Alletrust’s successful methodology. They rely on cognitive science to drive behavioural change. Since 2011, nearly 3500 Nestlé leaders in the USA received training, including 1199 in 2015 3 . In our European businesses, we have introduced a safety and health coaching programme, which helps management teams to improve their leadership and ownership related to safety and health. More than 30 senior safety and health professionals within the company, who have demonstrated excellent coaching styles and skills, have been selected to undertake these visits. Coaches spend three days with each team, coaching them in one-to-one and group sessions. The programme is complementary to other processes, such as auditing or the functional compliance programme. In 2015, it covered 28 units in Europe. This initiative is proving to be a best practice, and so we plan to significantly increase coverage to 58 sites in 2016. Values-based behaviours Nestlé is a company founded on caring: for our consumers, for the environment and for our work colleagues. Fundamental to this approach is the creation of a mutually supportive work environment in which we all care for – and look out for – each other: giving ‘the gift of feedback’ to help each other stay safe and healthy. The feedback can be in the form of peer-to-peer or management feedback. This approach is used to constructively modify the behaviour of our employees and contractors at site. This process is focused on modifying behaviour and is complementary to other programmes aimed at improving the systems of work. The number of behavioural feedback sessions are a leading indicator and it is tracked through our performance tracking tool. Each unit/market has its own defined targets. In 2015, we had a total of 4 088 650 behavioural observations globally. Strategic priority 2: managing key risks We are continuing to implement global best practices to manage the key risks or focus areas outlined in our roadmap. Our progress during 2015 is outlined in the sections below. Vehicles and driving Vehicles and driving remain the leading cause of work-related fatalities in Nestlé. We continue to develop, monitor and enhance local safe-driving programmes in our markets. To assist our work in this area, we are members of the Global Road Safety Partnership, support the United Nations Decade of Action for Road Safety and network extensively to identify and adopt best practices. More than 67 780 drivers in 61 countries were registered for training on our VRM e-learning platform in 2015. Since 2014, we have included safe driving metrics in our global internal reporting tool (SHE-PM) to give us greater visibility of our performance. In 2015, we updated the existing mandatory global safe driving standard to incorporate current global good practices and clarify expectations, particularly regarding working hours, distraction, including a ban on mobile phones (both handheld and hands-free), driver training, risk assessments, pre-hire assessments, vehicle features and health capability assessments. We have also expanded the scope to include vehicle use on Nestlé sites and the use of personal cars for company business. The standard is supported by a guideline that provides advice and tools to aid markets in implementation. Our markets will apply the requirements progressively until mid-2017. Wherever possible, we work with our third-party logistic service providers to promote safe driving practices. Through our responsible sourcing engagement programme, we are continuing external auditing of our Zone Asia, Oceania and sub-Saharan Africa third-party logistic service providers. These include an ethical component, arranged and hosted by third-party logistics suppliers, to show adherence with national and international laws and standards. In 2015, we audited our third-party suppliers in AOA, equating to 77% of our expenditure on transport and logistics in the region. 3 This includes Nestlé USA, Nestlé Nutrition, Nestlé Professional and Nestlé R&D; and these figures are not adjusted for those trained who have left the company since 2011. Nestlé in society – Creating Shared Value and meeting our commitments 2015 263
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