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 />
G4-3, G4-4, G4-18, G4-20, G4-22, G4-23, G4-28, G4-29, G4-30, G4-31, G4-32, G4-33<br />
About this report<br />
This is the twelfth <strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>: Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> report. It is written to promote communication <strong>and</strong><br />
transparent report<strong>in</strong>g to <strong>our</strong> shareholders <strong>and</strong> stakeholders. The report shares detailed <strong>in</strong>formation about <strong>our</strong><br />
material issues, <strong>and</strong> <strong>our</strong> societal <strong>and</strong> environmental impacts. Together with a report summary <strong>and</strong> <strong>our</strong> Annual<br />
Review, this document forms an <strong>in</strong>tegral part of <strong>Nestlé</strong>’s UN Global Compact Communication on Progress. These<br />
documents are made available through <strong>our</strong> website, along with <strong>our</strong> case studies, audio <strong>and</strong> video content, <strong>and</strong><br />
assurance statements.<br />
Report<strong>in</strong>g period <strong>and</strong> scope<br />
This report covers <strong>Nestlé</strong>’s global operations for the year<br />
end<strong>in</strong>g 31 December <strong>2015</strong>. It conta<strong>in</strong>s data for wholly owned<br />
companies <strong>and</strong> subsidiaries, exclud<strong>in</strong>g jo<strong>in</strong>t ventures <strong>and</strong><br />
suppliers, unless specifically stated. Where we refer to a<br />
‘market’, it means <strong>our</strong> bus<strong>in</strong>ess <strong>and</strong>/or activities at the level of<br />
a country or countries. The term ‘Zone’ refers to management<br />
responsibilities <strong>in</strong> a geographic group of markets; they consist<br />
of Zone Europe, Middle East <strong>and</strong> North Africa; Zone Americas;<br />
<strong>and</strong> Zone Asia, Oceania <strong>and</strong> sub-Saharan Africa.<br />
Global Report<strong>in</strong>g Initiative<br />
This report is prepared ‘<strong>in</strong> accordance’ with the comprehensive<br />
option of the Global Report<strong>in</strong>g Initiative’s (GRI) G4 guidel<strong>in</strong>es,<br />
<strong>and</strong> the Food Process<strong>in</strong>g Sector Supplement. This report has<br />
been externally assured by Bureau Veritas. This <strong>in</strong>cludes<br />
assurance of the report meet<strong>in</strong>g the requirements of ‘<strong>in</strong><br />
accordance with comprehensive’ GRI G4 guidel<strong>in</strong>es. A full<br />
assurance statement is available on page 295. The GRI is a<br />
non-profit organisation that promotes economic susta<strong>in</strong>ability<br />
<strong>and</strong> leads <strong>in</strong> the field of non-f<strong>in</strong>ancial report<strong>in</strong>g.<br />
In 2014, <strong>Nestlé</strong> undertook a stakeholder-led materiality<br />
process <strong>and</strong> 19 material issues were identified as be<strong>in</strong>g the<br />
most material. In l<strong>in</strong>e with G4, we cont<strong>in</strong>ue to report fully<br />
aga<strong>in</strong>st the issues across the report. As a large mult<strong>in</strong>ational<br />
bus<strong>in</strong>ess, we have also chosen to <strong>in</strong>clude <strong>in</strong>formation aga<strong>in</strong>st<br />
all disclosures identified by GRI.<br />
Report boundaries<br />
<strong>Nestlé</strong> has considered <strong>and</strong> mapped material issues along the<br />
value cha<strong>in</strong> of <strong>our</strong> bus<strong>in</strong>ess. This process reviews where<br />
f<strong>in</strong>ancial, operational <strong>and</strong> reputational impacts would be felt <strong>in</strong><br />
the <strong>Nestlé</strong> value cha<strong>in</strong>. It also assesses the level of importance<br />
placed on issues by stakeholders <strong>in</strong> different parts of <strong>our</strong> value<br />
cha<strong>in</strong>. The results have <strong>in</strong>formed the scope <strong>and</strong> boundaries of<br />
content featured <strong>in</strong> this report.<br />
The <strong>Nestlé</strong> value cha<strong>in</strong><br />
Safety <strong>and</strong> health <strong>and</strong> environmental data<br />
Our safety <strong>and</strong> health data refers to approximately 354 000<br />
employees. Our environmental data refers to factories <strong>and</strong><br />
warehouses (exclud<strong>in</strong>g some recent acquisitions). <strong>Nestlé</strong>’s<br />
climate change disclosures were made <strong>in</strong> conformance with<br />
the Climate Disclosure St<strong>and</strong>ards Board (CDSB) framework<br />
requirements. We follow the st<strong>and</strong>ards of the Greenhouse Gas<br />
(GHG) Protocol to establish <strong>our</strong> GHG <strong>in</strong>ventory, which <strong>in</strong>cludes<br />
scope 1, 2 <strong>and</strong> 3 emissions. We use boundaries based on<br />
operational control as this better reflects the reality of <strong>our</strong><br />
bus<strong>in</strong>ess operations. We also refer to <strong>our</strong> response to the CDP<br />
Investor Information Request, which conta<strong>in</strong>s comprehensive<br />
details of the Group’s climate change disclosures <strong>and</strong><br />
performance.<br />
Currency conversion<br />
All the amounts cited <strong>in</strong> this report have been converted to<br />
Swiss francs (CHF) us<strong>in</strong>g the exchange rates reported <strong>in</strong> the<br />
consolidated f<strong>in</strong>ancial statements of the <strong>Nestlé</strong> Group <strong>2015</strong>.<br />
Audience<br />
We have identified a wide range of stakeholders who have an<br />
<strong>in</strong>terest <strong>in</strong> this report, <strong>and</strong> hold regular dialogue with them.<br />
They <strong>in</strong>clude non-governmental organisations (NGOs), th<strong>in</strong>k<br />
tanks, foundations, organisations, governments, environment,<br />
social <strong>and</strong> governance (ESG), <strong>our</strong> consumers <strong>and</strong> <strong>our</strong> suppliers.<br />
Assurance<br />
This report is subject to <strong>in</strong>dependent assurance by Bureau<br />
Veritas. The aim of this process is to provide reassurance to<br />
<strong>Nestlé</strong>’s stakeholders of the accuracy, reliability <strong>and</strong> objectivity<br />
of the reported <strong>in</strong>formation, <strong>and</strong> that it covers the issues<br />
material to the bus<strong>in</strong>ess. To view the scope of work <strong>and</strong><br />
observations, see the full assurance statement.<br />
Contact us<br />
We hope you f<strong>in</strong>d this report engag<strong>in</strong>g <strong>and</strong> <strong>in</strong>formative, <strong>and</strong><br />
we cont<strong>in</strong>ue to welcome y<strong>our</strong> <strong>in</strong>put <strong>and</strong> views:<br />
creat<strong>in</strong>gsharedvalue@nestle.com<br />
Agriculture<br />
Tier 1<br />
suppliers<br />
<strong>Nestlé</strong><br />
Retail/<br />
bus<strong>in</strong>ess<br />
channels<br />
Consumers<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> 4