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 Water G4-DMA, G4-EN8, Healthy and affordable food G4-DMA, Product and service labelling G4-DMA, G4-PR3, Marketing communications G4-DMA MATERIALITY ISSUE VALUE CHAIN KEY: Moderate Significant Major Agriculture Tier 1 suppliers Nestlé Retail/ business channels Consumers Responsible marketing Marketing in ways that are appropriate to consumer audiences and shaping consumer behaviour to promote better health and environmental outcomes. Sub-issues defined • Environmental literacy and communication: informing, educating and engaging consumers on the environmental impact of products. • Infant formula marketing: promoting and selling infant food products in a responsible way, particularly to vulnerable groups. • Nutritional literacy and communication: informing, educating and engaging consumers to make the healthiest choices possible. • Product labelling: disclosing nutritional and other relevant product information (e.g. GMOs) through product labels. • Responsible marketing to children: engaging consumers and promoting products in a responsible way, particularly to children. Our commitments Our commitments relate directly to our material issues. They help drive continuous improvement and allow stakeholders to hold Nestlé accountable for delivering on its promises. We have set a series of objectives to enable us to achieve our commitments, some of which have been updated from last year to provide greater clarity and transparency. We will detail our progress on meeting these objectives in the following pages. • Build knowledge leadership in children’s nutrition; • Lead the industry in nutrition and health research through collaboration; • Provide nutritionally sound products designed for children; • Help reduce the risk of undernutrition through micronutrient fortification; • Reduce sodium (salt) in our products; • Reduce sugars in our products; • Reduce saturated fats and remove trans fats in our products; • Encourage consumption of whole grains and vegetables; • Deliver nutrition information and advice on all our labels; • Provide portion guidance for consumers; • Promote healthy diets and lifestyles, including physical activity; • Promote healthy hydration as part of a healthy lifestyle; • Provide education programmes for good nutrition and feeding practices; • Ensure responsible marketing communication to children; and • Market breast-milk substitutes responsibly. Our progress against the commitment objectives is indicated throughout the chapter using the following icons: Achieved In progress Not yet achieved New objective Governance and management systems Nestlé has a robust governance structure in place to monitor, measure and manage our nutrition, health and wellness performance. It includes the following parts of our organisation: • Innovation, technology and R&D We have the strongest R&D network in the food industry with 4800 scientists and researchers working across the world, including: – 40 R&D Centres; – The Nestlé Research Center (NRC), which directs Nestlé’s nutrition, health and wellness activities through scientific investigation and the Clinical Development Unit (CDU) ; – The Nestlé Institute of Health Sciences (NIHS), which investigates how nutrition can be used to guide people in improving and maintaining their health. • Nestlé Skin Health Nestlé Skin Health, our new business unit, seeks to enhance the quality of life by delivering science-based solutions for the health of skin, hair and nails over the course of people’s lives. • Nestlé Health Science (NHSc) NHSc advances the role of nutritional therapy to change the course of health for consumers, patients and our partners in healthcare. Nestlé in society – Creating Shared Value and meeting our commitments 2015 44
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Customer health and safety G4-DMA • Nestlé Nutrition Our nutrition business is dedicated to providing highquality, innovative, science-based nutrition for mothers and infants, and helping nurture healthier generations by establishing good eating habits early. The business also provides support and education to health professionals, scientists and nutrition communities and stakeholders through the Nestlé Nutrition Institute (NNI). • Marketing and Sales Sub-Business Unit Corporate Nutrition, Health and Wellness, which is responsible for driving nutrition, health and wellness across the business. The unit is also guardian of the 60/40+ approach which allows us to deliver tastier and healthier products. Through our Wellness Champions, located in each business unit and country, the unit facilitates, inspires, motivates and drives our health and wellness ambition. Internal nutrition organisation at Nestlé Chairman Peter Brabeck-Letmathe CEO Paul Bulcke Strategic Business Units Marketing and Sales (Core Business) Patrice Bula, Head of Marketing & Sales Nestlé Nutrition Business Heiko Schipper, Head of Unit Nestlé Health Science Business Greg Behar, CEO Nestlé Skin Health Humberto Antunes, President & CEO Innovation, Technology and R&D Stefan Catsicas, Chief Technology Officer Corporate Nutrition, Health and Wellness Unit Marie-Claire Le Cam, Head of Unit Nestlé Nutrition Institute José Saavedra, MD and Chief Medical Officer Nestlé Institute of Health Sciences Emmanuel Baetge, Head of Unit Nestlé Research Center Thomas Beck, Director NHW and Sustainability Unit Anne Roulin, Head of Unit 40 R&D Centres and Product Technologies Centres Clinical Development Unit Policy monitoring and stakeholder engagement led by Public Affairs Janet Voûte, Head of Global Public Affairs Our policies and standards All employees comply with the Nestlé Corporate Business Principles. In the principles, we outline our aim ‘to enhance the quality of consumers’ lives every day, everywhere, by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle’. We embrace our ambition by training our employees in the principles. We make our policy and principles documents available to everyone through the company website. They are regularly revised in line with international or national regulations and guidelines on the reduction of public health sensitive nutrients, as well as the World Health Organization’s (WHO’s) International Code of Marketing of Breast-milk Substitutes. Our policy and principles documents are: • The Nestlé Policy on Sugars; • The Nestlé Policy on Sodium (Salt); • The Nestlé Policy on Saturated Fat; • The Nestlé Policy on Trans Fat; • The Nestlé Policy and Instructions for Implementation of the WHO International Code of Marketing of Breast-milk Substitutes; • The Nestlé Marketing Communication to Children Policy; and • The Nestlé Policy on Micronutrient Fortification of Foods & Beverages. In 2015, we updated our policy on micronutrient fortification and made it public for the first time. Read more on micronutrient fortification. Nestlé in society – Creating Shared Value and meeting our commitments 2015 45
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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