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 Material-handling equipment Material-handling equipment, such as forklift trucks, presents another key risk for our business, particularly at factories, warehouses and distribution centres. Collisions with pedestrians can result in serious injuries, and the operators themselves are also at risk. Learning from some of our major incidents, we have developed a consistent approach to risk assessment and controls across all sites – especially around the segregation of pedestrian and vehicle traffic. This year, to incorporate the learnings from some of our major incidents, we revised our global standard on material-handling equipment. In addition, corporate Supply Chain has taken strong actions to eliminate unsafe ways of working with forklift cages. We have created and deployed videos about loading dock safety for awareness and training purposes. Process safety Process safety risks such as boiler safety, ammonia releases, powder fires and pressure system failures are being addressed with greater focus on competency building of our engineering community. In 2015, there was a particular focus on boiler safety, as well as ammonia safety and globally, several workshops were organised in all three zones to build a network of certified assessors across Nestlé world. Process safety incidents are part of major incident reporting procedure as well, and each incident follows the process of a detailed investigation at site level. Contractors and construction Contractors and construction activities present a significant risk, especially in emerging markets. In particular, falls from heights are cause for concern. Project management on capital projects has been improved with a stronger methodology that provides a greater focus on safety and health. Our Safety and Health scorecard is now used in 100% of our major projects. We have also enhanced our safety and health training for project managers and engineers. It has generated better results, with no fatalities in 2015 as a result of falls from a height, but we need to continue with sustained efforts. In 2015, a task force was put in place to revise our global Working at Height Standard. It will be rolled out in 2016. Alongside improvements to our capital projects, we have also updated our Group standard on contractor management. It outlines our expectations for each site to put in place a process based on the principle of cooperative working for selecting contractors, planning work activities and ensuring safe execution. The new standard provides a tool for categorising contracts and determining the level of oversight required to reduce the risk of incidents. Our Machinery Safety programme map Week 5 Week 7 Week 13 Week 26 Riyadh, Saudi Arabia for AOA Waters Karawang, Indonesia for Indonesian market Vittel PTC, France, Machinery Safety workshop for PTC and suppliers Zhukovsky, Russia for Russian market 26 35 13 36 5 49 Countries hosting 2015 workshops* Countries which previously hosted a workshop 28 7 *All 2015 countries have hosted workshops in previous years Week 28 Week 35 Week 36 Week 49 Yopougon, Côte d’Ivoire for CWAR market Mivina, Kharkiv, Ukraine for Ukraine Technical Team Toluca, Mexico for Mexican market Dong Nai, Vietnam for Vietnamese market Nestlé in society – Creating Shared Value and meeting our commitments 2015 266
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-LA6 Machinery We improved our approach to machinery safety with new assessment tools during 2014, as a response to unacceptably high numbers of machinery-related injuries. Our Machinery Safety programme has been rolled out further and several regional workshops were held in 2015 (see map on previous page), in addition to those held earlier in 2014. Through these efforts, we have developed a more comprehensive and systematic approach to machinery safety, including machine guarding and safe methods of intervention. We are also striving to strengthen the same in new business acquisitions. Electricity Nestlé’s standards include safe work practices necessary for the practical safeguarding of personnel (Nestlé, contractors and the public) during the installation, inspection, operation, maintenance and demolition of electric conductors, electric equipment, signalling and communication conductors and equipment, for all Nestlé facilities. Our electrical safety programmes are designed to maintain a safe and reliable electrical system for our facilities and protect employees and the public. We strive to accomplish these objectives through the following key activities: • Support key Group activities through technical standards, guidelines and specifications; • Competence building by providing training on electrical engineering-related subjects; • Dissemination of relevant technical information to the global engineering community; and • Providing technical support to our market and factory engineering teams. We are continuing the deployment of a third-party electrical audit programme across our factories. The electrical distribution systems mandatory gap audit allows us to identify and minimise the risks of electrical failures, which can lead to injuries, loss of production and damage of production equipment or buildings. It also helps to organise an action plan for the modernisation of the electrical distribution network and provides justification for capital expenditures. At the end of the audit, a report is created with technical observations and deficiencies, including critical electrical equipment that is obsolete and a modernisation plan with recommendations for corrective actions. We plan to assess all our factories that are older than 10 years within the next three years. Strategic priority 3: health management Our roadmap recognises that safety and health are fundamentally interconnected. Healthier employees are more resilient and resistant to injury and illness. They are also more engaged, demonstrate higher performance and live more fulfilling lives. We are strengthening our occupational health programmes by focusing on illness identification, investigation, ergonomics, stress, resilience and wellness. Responsibility for leading the individual focus areas is shared between the Human Resources and Safety and Health functions. The Nestlé Framework for Employee Health The new framework comprises three pillars: • Learn: helping employees enhance their health knowledge and become passionate Nutrition, Health and Wellness ambassadors; • Feel: helping employees access information about – and take ownership of – their own health; and • Choose: helping employees develop and maintain healthy lifestyles. It includes a foundation element of occupational health, reflecting the need to continue enhancing working conditions, protecting our people at work and ensuring compliance with company and legal requirements. A global networking group of 67 Health and Wellness Champions has been created to promote and implement programmes in 44 markets, representing 246 794 of our employees. A new Nestlé Framework for Employee Health was approved in 2015, to help structure and focus our efforts (see above). Since its introduction, our markets have started to adapt their own health strategies to the new pillars and foundations elements. At our corporate level, four web meetings took place in April and June, involving representatives from the markets to raise awareness on the framework and assist in the crossfertilisation of ideas. Illness investigation For Nestlé, illness investigation is about getting better at recognising the impact of work on employee health. We seek to identify learnings and use the information to address and reduce workplace health risks. We modified our performance management systems to report work-related illnesses separately from work-related injuries in 2013, so we are still on a learning curve in this area. We are raising awareness of occupational illnesses throughout the company and working to strengthen internal capabilities for recognition, diagnosis, investigation and reporting. We encourage our markets to recognise the impact of health on work and have produced guidance for employees on the investigation and improved recognition of work-related illnesses. Nestlé in society – Creating Shared Value and meeting our commitments 2015 267
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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