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