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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<br />

Rural development<br />

Water<br />

Environmental<br />

susta<strong>in</strong>ability<br />

Human rights<br />

<strong>and</strong> compliance<br />

Our<br />

people<br />

Occupational health <strong>and</strong> safety G4-DMA<br />

Strategic priority 1: personal ownership<br />

<strong>and</strong> engagement<br />

To achieve <strong>our</strong> ambition, we need to ensure everyone is<br />

engaged across <strong>our</strong> bus<strong>in</strong>ess. A key focus for <strong>our</strong> activities is<br />

behavi<strong>our</strong>al change to renew personal ownership.<br />

Safety <strong>and</strong> health beyond operations<br />

Traditionally, safety <strong>and</strong> health activities <strong>and</strong> programmes were<br />

ma<strong>in</strong>ly targeted at <strong>our</strong> manufactur<strong>in</strong>g sites. However, <strong>in</strong> order<br />

to care for all employees who work <strong>in</strong> other parts of the<br />

bus<strong>in</strong>ess, we have exp<strong>and</strong>ed the scope beyond operations. We<br />

have revised the requirements for sales <strong>and</strong> supply cha<strong>in</strong>, <strong>and</strong><br />

have committed to cover all employees under a certified safety<br />

<strong>and</strong> health management system. We have strengthened <strong>our</strong><br />

partnership with HR to sponsor safety <strong>and</strong> health beyond<br />

operations, putt<strong>in</strong>g <strong>in</strong> place clear responsibility for leadership<br />

<strong>and</strong> support. This partnership is improv<strong>in</strong>g compliance <strong>in</strong> <strong>our</strong><br />

Sales, Supply Cha<strong>in</strong> <strong>and</strong> Office-based functions. Senior<br />

management from functions other than Manufactur<strong>in</strong>g are<br />

<strong>in</strong>creas<strong>in</strong>gly engaged on this important matter <strong>and</strong> are actively<br />

sponsor<strong>in</strong>g the implementation of <strong>in</strong>itiatives <strong>and</strong> programmes<br />

that will enhance safety <strong>and</strong> health <strong>in</strong> their part of the bus<strong>in</strong>ess.<br />

Capability of managers<br />

We believe that top management leadership is the s<strong>in</strong>gle most<br />

important determ<strong>in</strong>ant <strong>in</strong> improv<strong>in</strong>g the safety <strong>and</strong> health<br />

performance. We have, therefore, deployed tra<strong>in</strong><strong>in</strong>g<br />

programmes to improve the capability of managers to lead<br />

cont<strong>in</strong>uous improvement <strong>in</strong> safety <strong>and</strong> health. Safety <strong>and</strong> health<br />

is be<strong>in</strong>g steadily <strong>in</strong>tegrated <strong>in</strong>to senior leadership tra<strong>in</strong><strong>in</strong>g<br />

c<strong>our</strong>ses at <strong>our</strong> global tra<strong>in</strong><strong>in</strong>g centre at Rive-Re<strong>in</strong>e. We are<br />

us<strong>in</strong>g a number of tra<strong>in</strong>ers, both <strong>in</strong>ternal <strong>and</strong> external, to deliver<br />

tra<strong>in</strong><strong>in</strong>g <strong>and</strong> we monitor progress aga<strong>in</strong>st this lead<strong>in</strong>g <strong>in</strong>dicator,<br />

us<strong>in</strong>g <strong>our</strong> performance track<strong>in</strong>g tool. Our Leadership Through<br />

Safety® programmes are designed for us, <strong>in</strong>tegrat<strong>in</strong>g Alletrust’s<br />

successful methodology. They rely on cognitive science to drive<br />

behavi<strong>our</strong>al change. S<strong>in</strong>ce 2011, nearly 3500 <strong>Nestlé</strong> leaders <strong>in</strong><br />

the USA received tra<strong>in</strong><strong>in</strong>g, <strong>in</strong>clud<strong>in</strong>g 1199 <strong>in</strong> <strong>2015</strong> 3 .<br />

In <strong>our</strong> European bus<strong>in</strong>esses, we have <strong>in</strong>troduced a safety<br />

<strong>and</strong> health coach<strong>in</strong>g programme, which helps management<br />

teams to improve their leadership <strong>and</strong> ownership related to<br />

safety <strong>and</strong> health. More than 30 senior safety <strong>and</strong> health<br />

professionals with<strong>in</strong> the company, who have demonstrated<br />

excellent coach<strong>in</strong>g styles <strong>and</strong> skills, have been selected to<br />

undertake these visits. Coaches spend three days with each<br />

team, coach<strong>in</strong>g them <strong>in</strong> one-to-one <strong>and</strong> group sessions. The<br />

programme is complementary to other processes, such as<br />

audit<strong>in</strong>g or the functional compliance programme. In <strong>2015</strong>, it<br />

covered 28 units <strong>in</strong> Europe. This <strong>in</strong>itiative is prov<strong>in</strong>g to be a<br />

best practice, <strong>and</strong> so we plan to significantly <strong>in</strong>crease<br />

coverage to 58 sites <strong>in</strong> 2016.<br />

<strong>Value</strong>s-based behavi<strong>our</strong>s<br />

<strong>Nestlé</strong> is a company founded on car<strong>in</strong>g: for <strong>our</strong> consumers, for<br />

the environment <strong>and</strong> for <strong>our</strong> work colleagues. Fundamental to<br />

this approach is the creation of a mutually supportive work<br />

environment <strong>in</strong> which we all care for – <strong>and</strong> look out for – each<br />

other: giv<strong>in</strong>g ‘the gift of feedback’ to help each other stay safe<br />

<strong>and</strong> healthy. The feedback can be <strong>in</strong> the form of peer-to-peer<br />

or management feedback.<br />

This approach is used to constructively modify the<br />

behavi<strong>our</strong> of <strong>our</strong> employees <strong>and</strong> contractors at site. This<br />

process is focused on modify<strong>in</strong>g behavi<strong>our</strong> <strong>and</strong> is<br />

complementary to other programmes aimed at improv<strong>in</strong>g<br />

the systems of work. The number of behavi<strong>our</strong>al feedback<br />

sessions are a lead<strong>in</strong>g <strong>in</strong>dicator <strong>and</strong> it is tracked through <strong>our</strong><br />

performance track<strong>in</strong>g tool. Each unit/market has its own<br />

def<strong>in</strong>ed targets. In <strong>2015</strong>, we had a total of 4 088 650<br />

behavi<strong>our</strong>al observations globally.<br />

Strategic priority 2: manag<strong>in</strong>g key risks<br />

We are cont<strong>in</strong>u<strong>in</strong>g to implement global best practices to<br />

manage the key risks or focus areas outl<strong>in</strong>ed <strong>in</strong> <strong>our</strong> roadmap.<br />

Our progress dur<strong>in</strong>g <strong>2015</strong> is outl<strong>in</strong>ed <strong>in</strong> the sections below.<br />

Vehicles <strong>and</strong> driv<strong>in</strong>g<br />

Vehicles <strong>and</strong> driv<strong>in</strong>g rema<strong>in</strong> the lead<strong>in</strong>g cause of work-related<br />

fatalities <strong>in</strong> <strong>Nestlé</strong>. We cont<strong>in</strong>ue to develop, monitor <strong>and</strong><br />

enhance local safe-driv<strong>in</strong>g programmes <strong>in</strong> <strong>our</strong> markets. To<br />

assist <strong>our</strong> work <strong>in</strong> this area, we are members of the Global<br />

Road Safety Partnership, support the United Nations Decade<br />

of Action for Road Safety <strong>and</strong> network extensively to identify<br />

<strong>and</strong> adopt best practices. More than 67 780 drivers <strong>in</strong><br />

61 countries were registered for tra<strong>in</strong><strong>in</strong>g on <strong>our</strong> VRM<br />

e-learn<strong>in</strong>g platform <strong>in</strong> <strong>2015</strong>.<br />

S<strong>in</strong>ce 2014, we have <strong>in</strong>cluded safe driv<strong>in</strong>g metrics <strong>in</strong><br />

<strong>our</strong> global <strong>in</strong>ternal report<strong>in</strong>g tool (SHE-PM) to give us<br />

greater visibility of <strong>our</strong> performance. In <strong>2015</strong>, we updated<br />

the exist<strong>in</strong>g m<strong>and</strong>atory global safe driv<strong>in</strong>g st<strong>and</strong>ard to<br />

<strong>in</strong>corporate current global good practices <strong>and</strong> clarify<br />

expectations, particularly regard<strong>in</strong>g work<strong>in</strong>g h<strong>our</strong>s,<br />

distraction, <strong>in</strong>clud<strong>in</strong>g a ban on mobile phones (both h<strong>and</strong>held<br />

<strong>and</strong> h<strong>and</strong>s-free), driver tra<strong>in</strong><strong>in</strong>g, risk assessments,<br />

pre-hire assessments, vehicle features <strong>and</strong> health<br />

capability assessments. We have also exp<strong>and</strong>ed the scope<br />

to <strong>in</strong>clude vehicle use on <strong>Nestlé</strong> sites <strong>and</strong> the use of<br />

personal cars for company bus<strong>in</strong>ess. The st<strong>and</strong>ard is<br />

supported by a guidel<strong>in</strong>e that provides advice <strong>and</strong> tools to<br />

aid markets <strong>in</strong> implementation. Our markets will apply the<br />

requirements progressively until mid-2017.<br />

Wherever possible, we work with <strong>our</strong> third-party<br />

logistic service providers to promote safe driv<strong>in</strong>g<br />

practices. Through <strong>our</strong> responsible s<strong>our</strong>c<strong>in</strong>g engagement<br />

programme, we are cont<strong>in</strong>u<strong>in</strong>g external audit<strong>in</strong>g of <strong>our</strong><br />

Zone Asia, Oceania <strong>and</strong> sub-Saharan Africa third-party<br />

logistic service providers. These <strong>in</strong>clude an ethical<br />

component, arranged <strong>and</strong> hosted by third-party logistics<br />

suppliers, to show adherence with national <strong>and</strong><br />

<strong>in</strong>ternational laws <strong>and</strong> st<strong>and</strong>ards.<br />

In <strong>2015</strong>, we audited <strong>our</strong> third-party suppliers <strong>in</strong> AOA,<br />

equat<strong>in</strong>g to 77% of <strong>our</strong> expenditure on transport <strong>and</strong> logistics<br />

<strong>in</strong> the region.<br />

3 This <strong>in</strong>cludes <strong>Nestlé</strong> USA, <strong>Nestlé</strong> Nutrition, <strong>Nestlé</strong> Professional <strong>and</strong> <strong>Nestlé</strong> R&D; <strong>and</strong> these<br />

figures are not adjusted for those tra<strong>in</strong>ed who have left the company s<strong>in</strong>ce 2011.<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> 263

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