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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

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