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 Virtual Risk Manager for safe driving In the UK and Ireland, Nestlé employs approximately 5500 people and operates more than 400 company vehicles and a rental fleet. Since 2012, the market has worked to enhance safe driving activities through an integrated programme of data-led driver risk assessment and monitoring. A wide collaboration across functions has played a key part in its success, involving colleagues from Safety, Health and Environment, Risk Services, HR, Learning and Development, Legal and Operations. Using Virtual Risk Manager (VRM), the market’s Safe Driving Programme has achieved compliance improvements, incident reductions, reduced insurance costs and resulted in reputational benefits. VRM was specifically used to: • Check licences; • Identify and engage drivers in road safety; • Manage data privacy issues; • Ensure drivers understand and comply with policy and rules; • Engage a diverse range of driver types across multiple sites; and • Identify and target key risk factors through communications and coaching. All drivers are coached using online materials covering topics such as attitude, speed and bad weather in the run-up to winter. The most at-risk drivers are engaged based on their exposure levels, risk assessment outcomes, collisions and penalty points showing on their licence. Over time, a DriverINDEX was adopted as the trigger for training interventions. Management training is being piloted and undertaken to allow first-line managers to work with their teams, emphasising the importance of everyone getting home safely at the end of each working day. Training records are included in the system. Leading indicators have moved from unknown compliance levels in 2012 to nearly 94% in 2015. As well as ensuring good practice and targeting risk, it provides drivers, managers and the organisation with a high level of personal liability and brand protection. Although it shows good progress, there is more to achieve – focusing on topics such as speed choices, driving too close, journey planning, slow speed manoeuvring, defensive driving, minimising distractions and sharing the road. Since the programme’s launch, Nestlé has received external recognition from organisations, including the Prince Michael International Road Safety Awards. A case study was shared at events, including the Fleet Europe and Logistics Research Network conferences in 2015, and it has become a Driving for Better Business case study. Internally, it was shared at events such as the European Annual Safety and Health conference. The Nestlé Virtual Risk Manager Programme Nestlé in society – Creating Shared Value and meeting our commitments 2015 264
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 Safe driving Collaborative action to reduce driving risks We are progressively building road safety into procurement standards for contractors, subcontractors, joint-venture partners and other vendors. Our corporate Safety and Health function and Group Risk Services, along with our external insurer, periodically review the efficacy of our Safe Driving Programme, which is funded through our captive insurer Intercona Re. It is a unique financial model whereby the fully owned Nestlé insurance company supports Nestlé entities in addressing risk management and loss prevention. It is a win-win for all concerned stakeholders as, on one hand, it helps the markets deploy safe driving and loss prevention programmes and, on the other, it optimises Nestlé’s Total Cost of Insurable Risk. To reduce driving risks, we are increasing internal collaboration between our Risk Services, Safety and Health, HR and Procurement functions. We are also increasing our focus on emerging markets with evolving road safety standards. Safe Driving Programme in the Middle East Work-related driving has contributed to several fatalities in our Middle East region in the past years. In order to improve this situation, in 2015, the market nominated Safe Driving Champions and imparted training on Virtual Risk Management and telematics dashboard training to safety and transport managers. The champions carried out a communications campaign through emails and banners. They have formalised, integrated and consolidated monthly measures in a common platform for analysis. Going forward, in 2016, our Nestlé Middle East Zone is preparing for the next phase of its Safe Driving Programme. This will include driver feedback on performance data, risk rating, benchmarking and the integration of telematics. It will use data to: • Identify the top 10% most at-risk drivers and provide coaching by line managers; • Recognise excellent and low-risk drivers; • Reinforce safe driving messages; and • Monitor driver performance in monthly operational reviews. Nestlé Spain wins Fleet Management Award in 2015 Nestlé Spain has won a Fleet Management Award from the Spanish Association of Car Fleet Management, as a result of practices in the training and awareness of road safety. They were awarded with the first prize, standing out in terms of content, perseverance, on-site follow-up, the number of initiatives and dimension of the collective. Road safety training in Pakistan Nestlé Pakistan is working in collaboration with National Highway and Motorway Police to create awareness of road safety in Sheikhupura. Road infrastructure is poor in many of the rural areas where we collect milk, increasing the risk for drivers, and awareness of road safety is also low in the local community. There are currently six third-party vendors working with Nestlé to transport fresh milk from 30 main regions across an area which is about 110 000 km 2 . Vehicles can number more than 500 in high season, when milk output increases considerably and additional vehicles have to be deployed to handle it. By supporting the safe driving programme of the National Highway and Motorway Police, Nestlé Pakistan has made a huge contribution to the cause of road safety within the society. Since its beginning in 2008, the institute has trained 31 000 drivers pertaining to public and private organisations (including drivers employed or contracted by Nestlé Pakistan). Safe driving in the United States More than 16 000 Nestlé USA employees have completed an online defensive driving course since it was launched in 2014. The National Safety Council recognised Nestlé USA with a Trend Setter Award in 2014 for making our world safer. Nestlé USA also participated in the Network of Employers for Traffic Safety (NETS)-sponsored Drive Safely Work Week, which engaged employees in daily blogs and communications. In addition, the Nestlé USA Supply Chain Team discovered an opportunity for improvement with our drivers’ close-quarter manoeuvring (e.g. parallel parking, right turns, alley dock backing) and developed a unique Truck Drivers’ Skills Assessment programme or Safe Driving Truck Rodeo with the involvement of the State Troopers. They are completing Truck Rodeos across the country to engage professional long-distance drivers in a competitive training programme. The rodeo assessment consists of three main components and prizes are given for both individual and team recognition. The number of close-quarter incidents have been reduced by 40% immediately following the rodeo events and two locations have reported zero incidents. The process, which supports our Safety, Health and Environment priority for safe driving, has garnered external recognition with regulatory agencies and the general public, while engaging leaders and drivers in fun, capability-building exercises. Watch more at Nestlé USA Truck Rodeos. Nestlé in society – Creating Shared Value and meeting our commitments 2015 265
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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