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 G4-EC6, Training and education G4-DMA, G4-LA9, G4-LA10 HR Business Partner capabilities We continue our focus on strengthening the capability of our global HR community, which was set as a key corporate priority in 2014. The Nestlé HR Business Partner (HRBP) Capability Framework was launched last year, with a new competency model and guidance on practical ways to build capabilities. The HRBP model consists of six competencies: • Strategic partner; • Insights advocate; • Change agent; • HR integrator; • Capability builder; and • Cultural enabler. Each one is clearly defined with behavioural descriptors and, based on this, development opportunities can be defined and actions set. In 2015, markets were encouraged to implement the framework by reviewing capabilities and agreeing development actions to close gaps. In 2016, we will continue to encourage markets to improve HR capabilities by leveraging the HRBP framework Succession planning Succession planning is our method for planning career development and filling jobs at various levels in the organisation. The plans, as a minimum, cover all of our key jobs and include a list of potential successors for those roles. They are created taking into account career history, talent assessment, performance evaluation, skills and capabilities. At any one time, we know exactly how well potential successors are performing and how close they are to taking on the next role in their development. Their readiness is systematically reassessed on an annual basis. In 2015, we filled 74% of key positions through succession planning. About 8750 people have now been identified as potential successors for key Nestlé positions across the organisation. Line managers and leadership In an increasingly dynamic world, leaders face significant challenges and opportunities. These stem from shifts to new social patterns and unprecedented worldwide competition. Achieving ongoing success requires each of our leaders to understand context and capitalise on it. They must: • Lead to win; • Manage for results; • Grow talent and teams; • Collaborate internally • Make a difference; and • Compete and connect externally. A key driver is authentic and transparent communication and feedback. Our line managers have prime responsibility for building and sustaining an environment where people have a sense of personal commitment to their work and give their best to ensure our company’s success. They care for and develop the leaders of tomorrow. Line managers decide on all people matters under their influence, within the boundaries set by the policies and principles, acting as the final decisionmakers. We support them with a number of tools and practices, to be used appropriately when executing their roles: • Me@Nestlé is a portal that includes support information for line managers; • The Line Manager Portfolio is an interactive tool supporting our people leaders; • The Nestlé Leadership Framework is used to identify competencies for development initiatives; • The Leadership Curriculum Catalogue provides local, regional and global training options; and • The Leadership Development (LD) Reference Guide for Markets helps our LD pillar members ensure a common framework for leadership development across the company. We run two key programmes in collaboration with the London Business School: • Leading the Nestlé Way Programme gives senior leaders the skills they need to inspire employees; and • The Nestlé Leadership Programme helps managers develop motivational skills. Nestlé in society – Creating Shared Value and meeting our commitments 2015 286
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people G4-EC6, Training and education G4-DMA, G4-LA9, G4-LA10 In 2015, the relaunched Leading the Nestlé Way Programme was attended by 70 participants, while nearly 400 employees participated in the Nestlé Leadership Programme. Mastering the Nestlé Leadership Framework In 2015, we completed the curriculum for our Nestlé Leadership Framework (NLF). We published it on our intranet as an interactive document, Mastering the NLF. It provides detailed learning paths for our three employee levels (all employees, leaders and senior leaders). The document acts as a map for our people to plan their leadership development journey, with a way to best suit personal development needs and career aspirations. It is easy to navigate and employees can explore course descriptions and other information, helping them choose the right course at the right time. Responding to international dual-career relationships With a presence in more than 197 countries, Nestlé offers a wide range of opportunities for people to work abroad. Together with other multinationals, we have launched a network that helps dual-career spouses with their local job search and professional integration in a new country. The International Dual Career Network (IDCN) is an independent non-profit association and is currently chaired by the Head of Diversity at Nestlé. We continue to lead 4 out of 11 networks, which means our local operating companies manage the network in their respective country. We also provide office space and logistics support to the independent Global IDCN Coordinator. Training our people Our training is designed to enhance personal performance and to help achieve our business goals. Training programmes are continuously changed and improved to meet business needs. They are delivered by internal and external providers, and online. In addition to the Rive-Reine courses, in the table below we have provided an overview of some of our management-level training run during 2015, which took place all over the world. Management courses are tracked at Rive-Reine, while local training programmes are managed and recorded locally. One example of local training in the Markets is Nestlé USA, which has trained 1470 leaders so far by leveraging its local training resources. 2015 management level courses Number of sessions Approximate number of attendees Locations Employee mentoring and coaching We have recognised for a number of years that coaching is both a business performance accelerator and a great opportunity for individuals to develop themselves. To embed coaching into our culture, we have developed the Common Framework and Toolkit. It is a ‘living’ document, built on existing coaching initiatives, and acts as a first step to integrate our coaching vision, best practices, processes and measures across the Group. We have also put in place a coaching network, where each of our participating markets receives a coaching network representative to coordinate activities. In 2015, 11 markets are active members, with more markets preparing to join in 2016. Mentoring helps accelerate development through relationship-based support, transfer of experience, of key insights and of unwritten rules, as well as bringing exposure to areas beyond a current role. The Corporate Mentoring Programme has been replaced by more targeted schemes taking place at a Zone level. The schemes pair mentees with a senior leader for around 12 to 18 months and, as part of our HR priorities, more than 27 markets were operating local mentoring programmes by the end of 2015. Leadership Through Safety® Nestlé Corporate Business Principles Management Committee sessions (ongoing) Environmental Sustainability Leadership 18 189 Cuba, Dominican Republic, Germany, Peru, Switzerland, Trinidad and Tobago 5 107 Brazil, Panama, Portugal, Uzbekistan, Sweden 16 245 Australia, Brazil, China, Dubai, Malaysia, Mexico, Panama, the Philippines, Spain, Switzerland, the United States, United Kingdom, Venezuela Nestlé in society – Creating Shared Value and meeting our commitments 2015 287
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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