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 Diversity and equal opportunity G4-DMA, G4-LA12, Equal remuneration for women and men G4-DMA, G4-LA13 Part-time employees by age group 2015 Group Number of employees Percentage 50 2 307 26.6 Temporary employees by age group 2015 Group Number of employees Percentage 50 1 080 6 Number of disabled employees 2015 2 735 2014 2 617 2013 2 495 Due to privacy regulations and the sensitive nature of this KPI, this number only reflects those countries that were able to report it. Our Gender Balance Initiative Our commitment Our objective Enhance gender balance in our workforce By 2018 – Be a gender-balanced company by creating the enabling conditions in our work environment to achieve annual increases in the percentage of women managers and senior leaders (market management members and key roles at the Centre). Senior leadership positions held by gender (%) Women 2015 25.5 2014 25 2013 23 Covers Nestlé employees registered in the HR system (approximately 84% of all employees). Leadership positions held by gender (%) Women 2015 34 2014 33.7 2013 31.1 Men 74.5 75 77 Men 66 66.3 68.9 We recognise that gender balance strengthens our business and achieving it is a priority. Our Gender Balance Initiative is making improvements at all levels, with a key focus on senior leaders and managers. The initiative is designed to facilitate a natural gender balance throughout our organisation. Merit and competencies remain the basis for promotion. We have the necessary mechanisms in place to track, monitor and improve gender balance. Progress is achieved using a rigorous succession-planning process, clear development plans and the roll-out of unconscious bias training for our leaders. We have implemented a number of programmes to support our commitment, including: • Unconscious bias training; • Parental support initiatives and flexible work arrangements; • Mentoring and coaching; • Dual-career support; • Gender awareness; • Women networks; and • Gender balance business sponsors. Through these activities, we work to increase the number of women identified as potential successors for top-level positions and, in 2015, 34% of our leadership positions were held by women. To help our markets with local improvement efforts, we use our Gender Balance scorecard to track progress against resourcing, promotion, succession and retention. It also provides tips to help deliver behavioural change. To encourage alignment, we operate an intranet page that shares the latest initiatives, key documents and figures, policies and materials for training or communications. Read more about how Nestlé is supporting women’s rights in wider society. Leadership positions by age and gender 2015 Total managers Women (%) Men (%) 50 9 563 22 78 Covers Nestlé employees registered in the HR system (approximately 84% of all employees). Weighted comparative salary ratio average by gender Headcount Women (%) Men (%) 2015 190 191 95 98 2014 177 013 94 96 2013 67 369 91 94 Excludes temporary employees. Nestlé in society – Creating Shared Value and meeting our commitments 2015 280
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Diversity and equal opportunity G4-DMA, Equal remuneration for women and men G4-DMA Nestlé builds success and our culture on strong diversity. We will accelerate gender balance. Women represent 80% of our consumer spending decisions. 60% of graduates in the EU and the United States are women. Improving gender balance will enrich our leadership and improve consumer understanding.” Paul Bulcke, Chief Executive Officer, Nestlé Empowering women in business, Mexico In Mexico, we are building our capability and helping provide opportunities for local women through the project Mi Dulce Negocio. It aims to help inspire and encourage more women in the workplace, by offering knowledge and practical experience about food, nutrition and healthy eating habits, as well as food preparation for selling. During 2014 and 2015, around 15 000 women received the training. Next steps include a pilot to support women in the formal establishment of a catering business. Bringing more women into our factories, Chile Nestlé Chile found that employing additional women at the Graneros dairy factory reduced the site’s high absenteeism rate. In 2013, when almost 80 employees were absent in one day, the HR Team led a contributor analysis to identify potential root causes. They attributed the reason to a ‘lack of commitment’, but also discovered gender differences, where women presented fewer absences and delays than men. The team decided to test the findings, to see whether hiring extra women into the factory would have a positive effect on absenteeism. The HR Team defined a special recruitment campaign targeting women that took place through employee referrals and an external job posting. At the same time, the factory improved working conditions with new toilets and dressing facilities. The positions were filled by women who had not worked before, or who had worked in fruit packing but wanted better work conditions. As a result, total annual absenteeism has decreased by 22.6%, the production quality has remained stable and the number of women on the production lines has increased from 121 to 217, with a positive local impact. Unconscious bias training In 2015, we continued the global roll-out of our unconscious bias training through a network of more than 80 trainers. The activities are designed to promote more inclusive communication between women and men to improve performance. Line managers and senior managers attend a three-hour interactive and experimental session that uses participative exercises, case studies and videos. The structured learning outlines visual blind spots, the ladder of inference to understand unconscious bias, and cultural gender differences. Our leaders can use the outcomes to develop a personal and team action plan that will improve talent management outcomes for men and women in the workplace. By the end of 2015, a total of 3058 employees across our business 4 had received the training since it began in 2014. Our markets in the Middle East, India and the Nordics have already embedded unconscious bias training into their leadership training. Since the end of 2014, unconscious bias has also been embedded in several central programmes, such as Leadership, Marketing and Sales, Finance, R&D and Technology Management. One of the main challenges we have in diversity is to recognise our own bias. It is clear that most of them are unconscious, so the inclusion of an unconscious bias course in our training curriculum is fundamental to understand what it means and what we can do to avoid wrong decision-making.” Gilberto Rigolon, Head of T&D Talent Acquisition, Nestlé Brazil In all my 16 courses, I have delivered unconscious bias sessions to young Nestlé executives and to the ManCom of some of our markets (Portugal, Sweden and Uzbekistan) as well. The reception was amazing, here are a couple of comments from participants: ‘I know I have a lot of unconscious bias, but I didn’t know how to avoid the negative effect of that. In this session, I feel relieved and decided to practise those counter actions repeatedly.’ ‘This training was an eye-opener for me and I would like it to be done for all employees in all markets.’” Guy Bellenot, International Training Manager for Rive-Reine 4 This is a cumulative figure, representing the total number of employees who have received unconscious bias training since the programme began in 2014. Nestlé in society – Creating Shared Value and meeting our commitments 2015 281
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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