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 />
Bureau Veritas’ Independent Assurance Statement<br />
Any errors or misstatements identified dur<strong>in</strong>g the engagement<br />
were corrected prior to the CSV Report be<strong>in</strong>g published.<br />
For <strong>our</strong> detailed methodology which expla<strong>in</strong>s the work<br />
undertaken to <strong>in</strong>form <strong>our</strong> op<strong>in</strong>ion, please see ‘Methodology’<br />
below.<br />
To: The Stakeholders of <strong>Nestlé</strong> SA<br />
Introduction <strong>and</strong> objectives of the engagement<br />
Bureau Veritas has been engaged by <strong>Nestlé</strong> SA (<strong>Nestlé</strong>) to<br />
provide <strong>in</strong>dependent assurance over the <strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />
Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> Meet<strong>in</strong>g Our Commitments <strong>2015</strong><br />
report (the CSV Report) published onl<strong>in</strong>e <strong>in</strong> PDF on the <strong>Nestlé</strong><br />
website. The aim of this process is to provide reassurance to<br />
<strong>Nestlé</strong>’s stakeholders over the accuracy, reliability <strong>and</strong><br />
objectivity of the reported <strong>in</strong>formation <strong>and</strong> that it covers the<br />
issues material to the bus<strong>in</strong>ess. The CSV Report has been<br />
self-declared to comply with the ‘<strong>in</strong> accordance –<br />
comprehensive’ requirements of the GRI G4 guidel<strong>in</strong>es.<br />
Scope of work<br />
The scope of work <strong>in</strong>cluded a review of CSV activities <strong>and</strong><br />
performance data over the report<strong>in</strong>g period January 1 st to<br />
December 31 st <strong>2015</strong>. Specifically, this <strong>in</strong>cluded:<br />
i) Statements, <strong>in</strong>formation <strong>and</strong> performance data conta<strong>in</strong>ed<br />
with<strong>in</strong> the CSV report;<br />
ii) <strong>Nestlé</strong>’s management approach of material issues; <strong>and</strong><br />
iii) <strong>Nestlé</strong>’s reported data <strong>and</strong> <strong>in</strong>formation as per the<br />
requirements of the Global Report<strong>in</strong>g Initiative (GRI) G4<br />
Susta<strong>in</strong>ability Report<strong>in</strong>g Guidel<strong>in</strong>es.<br />
The assurance process was conducted <strong>in</strong> l<strong>in</strong>e with the<br />
requirements of the AA1000 Assurance St<strong>and</strong>ard (2008)<br />
Type 2 1 assurance. We applied a moderate 2 level of assurance.<br />
Op<strong>in</strong>ion <strong>and</strong> commentary<br />
On the basis of the scope of work, noth<strong>in</strong>g came to <strong>our</strong><br />
attention to suggest that:<br />
• the account of <strong>Nestlé</strong>’s CSV activities <strong>and</strong> performance<br />
dur<strong>in</strong>g <strong>2015</strong> <strong>and</strong> presented <strong>in</strong> the CSV Report is materially<br />
misstated;<br />
• <strong>Nestlé</strong> does not adhere to the pr<strong>in</strong>ciples of <strong>in</strong>clusivity,<br />
materiality <strong>and</strong> responsiveness as per the AA1000<br />
Accountability Pr<strong>in</strong>ciples St<strong>and</strong>ard 2008.<br />
Positive developments<br />
We are pleased to observe progress <strong>in</strong> the follow<strong>in</strong>g areas:<br />
• As <strong>in</strong>vestment <strong>in</strong>to CSV-related projects cont<strong>in</strong>ue to be the<br />
driver for performance improvements <strong>in</strong> a number of CSV<br />
areas, <strong>Nestlé</strong> has made progress with the governance of<br />
such projects by <strong>in</strong>corporat<strong>in</strong>g <strong>in</strong>vestment decisions <strong>in</strong>to its<br />
Capital Expenditure process, particularly <strong>in</strong> the area of<br />
Environmental Susta<strong>in</strong>ability.<br />
• While some of <strong>Nestlé</strong>’s <strong>commitments</strong> came to an end <strong>in</strong><br />
<strong>2015</strong>, <strong>Nestlé</strong> has demonstrated cont<strong>in</strong>ued focus on its<br />
material CSV issues by establish<strong>in</strong>g new <strong>commitments</strong> that<br />
challenge its performance go<strong>in</strong>g forward.<br />
• It is positive to observe that the <strong>Nestlé</strong> Nutrition Institute<br />
(NNI) ma<strong>in</strong>ta<strong>in</strong>s a high degree of <strong>in</strong>dependence <strong>in</strong> its<br />
policies <strong>and</strong> underly<strong>in</strong>g systems from <strong>Nestlé</strong>’s bus<strong>in</strong>ess<br />
priorities <strong>and</strong> focus. As the NNI is mov<strong>in</strong>g towards<br />
publish<strong>in</strong>g more practical material, this is essential <strong>in</strong><br />
ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g its reputation as a credible research body.<br />
• <strong>Nestlé</strong> has rolled out an updated Responsible Market<strong>in</strong>g to<br />
Children policy which aligns with the EU Pledge criteria,<br />
committ<strong>in</strong>g to a consistent global approach that ensures<br />
m<strong>in</strong>imum performance levels across markets.<br />
Key recommendations for 2016<br />
• As per <strong>our</strong> recommendation <strong>in</strong> the 2014 CSV report, <strong>Nestlé</strong><br />
should consider communicat<strong>in</strong>g more <strong>in</strong>formation to<br />
stakeholders on how governance over material issues<br />
extends beyond the corporate entity to the end markets,<br />
<strong>and</strong> also to other entities such as Jo<strong>in</strong>t Ventures <strong>and</strong> newly<br />
acquired bus<strong>in</strong>esses.<br />
• Report<strong>in</strong>g on Responsible S<strong>our</strong>c<strong>in</strong>g <strong>and</strong> Traceability figures<br />
with<strong>in</strong> the CSV report still lags by 1 year. In addition,<br />
reported figures do not cover all of <strong>Nestlé</strong> bus<strong>in</strong>esses 3 , <strong>and</strong><br />
are reliant on estimations <strong>and</strong> manual consolidation of data.<br />
<strong>Nestlé</strong> should therefore consider review<strong>in</strong>g its <strong>in</strong>ternal<br />
report<strong>in</strong>g process <strong>and</strong> tools for responsible s<strong>our</strong>c<strong>in</strong>g to<br />
produce more timely <strong>and</strong> accurate data that aligns with the<br />
CSV report<strong>in</strong>g period. In addition, <strong>Nestlé</strong> should ensure that<br />
report<strong>in</strong>g on the 12 priority categories is consistent; cover<strong>in</strong>g<br />
all bus<strong>in</strong>esses <strong>in</strong>cluded with<strong>in</strong> the scope of report<strong>in</strong>g.<br />
1 Type 2 Assurance: an engagement <strong>in</strong> which the assurance provider gives f<strong>in</strong>d<strong>in</strong>gs <strong>and</strong><br />
conclusions on the pr<strong>in</strong>ciples of Inclusivity, Materiality <strong>and</strong> Responsiveness <strong>and</strong> verifies<br />
the reliability of specified susta<strong>in</strong>ability performance <strong>in</strong>formation (AA1000AS (2008)<br />
St<strong>and</strong>ard). For further <strong>in</strong>formation see www.accountability.org/st<strong>and</strong>ards/aa1000as/<br />
2 All relevant text was supported by <strong>in</strong>terview evidence as a m<strong>in</strong>imum, <strong>and</strong> supported by<br />
corroborat<strong>in</strong>g <strong>in</strong>terview evidence or another s<strong>our</strong>ce wherever possible. A moderate level<br />
of assurance is commensurate with “limited” assurance as def<strong>in</strong>ed <strong>in</strong> the ISAE3000 (2003,<br />
rev2008) assurance st<strong>and</strong>ard.<br />
3 Bus<strong>in</strong>esses not covered by the scope of responsible s<strong>our</strong>c<strong>in</strong>g <strong>and</strong> traceability data <strong>in</strong>clude<br />
<strong>Nestlé</strong> Nutrition, <strong>Nestlé</strong> Sk<strong>in</strong> Health, <strong>and</strong> <strong>Nestlé</strong> Health Science.<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> 295