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 G4-3, G4-4, G4-18, G4-20, G4-22, G4-23, G4-28, G4-29, G4-30, G4-31, G4-32, G4-33 About this report This is the twelfth Nestlé in society: Creating Shared Value report. It is written to promote communication and transparent reporting to our shareholders and stakeholders. The report shares detailed information about our material issues, and our societal and environmental impacts. Together with a report summary and our Annual Review, this document forms an integral part of Nestlé’s UN Global Compact Communication on Progress. These documents are made available through our website, along with our case studies, audio and video content, and assurance statements. Reporting period and scope This report covers Nestlé’s global operations for the year ending 31 December 2015. It contains data for wholly owned companies and subsidiaries, excluding joint ventures and suppliers, unless specifically stated. Where we refer to a ‘market’, it means our business and/or activities at the level of a country or countries. The term ‘Zone’ refers to management responsibilities in a geographic group of markets; they consist of Zone Europe, Middle East and North Africa; Zone Americas; and Zone Asia, Oceania and sub-Saharan Africa. Global Reporting Initiative This report is prepared ‘in accordance’ with the comprehensive option of the Global Reporting Initiative’s (GRI) G4 guidelines, and the Food Processing Sector Supplement. This report has been externally assured by Bureau Veritas. This includes assurance of the report meeting the requirements of ‘in accordance with comprehensive’ GRI G4 guidelines. A full assurance statement is available on page 295. The GRI is a non-profit organisation that promotes economic sustainability and leads in the field of non-financial reporting. In 2014, Nestlé undertook a stakeholder-led materiality process and 19 material issues were identified as being the most material. In line with G4, we continue to report fully against the issues across the report. As a large multinational business, we have also chosen to include information against all disclosures identified by GRI. Report boundaries Nestlé has considered and mapped material issues along the value chain of our business. This process reviews where financial, operational and reputational impacts would be felt in the Nestlé value chain. It also assesses the level of importance placed on issues by stakeholders in different parts of our value chain. The results have informed the scope and boundaries of content featured in this report. The Nestlé value chain Safety and health and environmental data Our safety and health data refers to approximately 354 000 employees. Our environmental data refers to factories and warehouses (excluding some recent acquisitions). Nestlé’s climate change disclosures were made in conformance with the Climate Disclosure Standards Board (CDSB) framework requirements. We follow the standards of the Greenhouse Gas (GHG) Protocol to establish our GHG inventory, which includes scope 1, 2 and 3 emissions. We use boundaries based on operational control as this better reflects the reality of our business operations. We also refer to our response to the CDP Investor Information Request, which contains comprehensive details of the Group’s climate change disclosures and performance. Currency conversion All the amounts cited in this report have been converted to Swiss francs (CHF) using the exchange rates reported in the consolidated financial statements of the Nestlé Group 2015. Audience We have identified a wide range of stakeholders who have an interest in this report, and hold regular dialogue with them. They include non-governmental organisations (NGOs), think tanks, foundations, organisations, governments, environment, social and governance (ESG), our consumers and our suppliers. Assurance This report is subject to independent assurance by Bureau Veritas. The aim of this process is to provide reassurance to Nestlé’s stakeholders of the accuracy, reliability and objectivity of the reported information, and that it covers the issues material to the business. To view the scope of work and observations, see the full assurance statement. Contact us We hope you find this report engaging and informative, and we continue to welcome your input and views: creatingsharedvalue@nestle.com Agriculture Tier 1 suppliers Nestlé Retail/ business channels Consumers Nestlé in society – Creating Shared Value and meeting our commitments 2015 4
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people G4-9, G4-EC8 Our CSV performance Nestlé’s performance indicators provide a focus for measuring and reporting Creating Shared Value, sustainability and compliance. This performance summary forms part of our communication on progress for the United Nations Global Compact Principles. Unless otherwise stated, performance indicators are for the year ending 31 December 2015. The references in the GRI column relate to the applicable indicator from the Global Reporting Initiative G4 guidelines. We report against GRI G4 guidelines and indicators, in line with the material issues we need to address. The issues are identified through our stakeholder engagement process and they also shape the public commitments we have made. To provide transparency for our stakeholders, in this table we have indicated the correlation between GRI indicators, our KPIs and our commitments. Please see www.nestle.com/csv/performance/kpi-summary Nestlé in society and Creating Shared Value key performance indicators Economic GRI 2014 2015 Page Total Group sales (CHF million) (a) G4-EC1 91 612 88 785 n/a Net profit (CHF million) (b) G4-EC1 14 456 9 066 n/a Nutrition, health and wellness Products meeting or exceeding Nestlé Nutritional Foundation profiling criteria (as % of total sales) G4-EC1 78.5 81.6 68, 69, 70, 71 Renovated products for nutrition or health considerations (c) G4-FP7 10 812 8 041 68, 69, 70, 71, 75, 77 Products with increase in nutritious ingredients or essential nutrients (c) G4-FP7 6 359 4 643 75 Products with reduction of sodium, sugars, trans fats, MSG, total fat, calories or artificial colourings (c) G4-FP6 6 973 5 471 69, 70, 71 Products analysed and improved or confirmed via 60/40+ programme (sales, CHF million) (d) G4-PR1 33 233 33 657 69, 70, 71 Products containing Branded Active Benefits (sales, CHF million) G4-FP7 6 687 6 193 75 Products featuring Nestlé Nutritional Compass labelling (% of sales worldwide) (e) G4-PR3 92.8 92.8 81 Products with Guideline Daily Amounts (GDA) labelling on front of pack (% of sales) G4-PR3 79.7 89.2 79 Products with specific Portion Guidance (sales, CHF million) G4-PR3 26 456 35 562 81 Popularly Positioned Product SKUs G4-EC1 5 014 4 845 75 Popularly Positioned Products (sales, CHF million) G4-EC1 12 205 11 599 75 Nestlé television advertising to children under 12 in compliance with policies on responsible marketing (%) G4-PR7 97.2 97 87 Contraventions to the Nestlé Policy and Instructions for Implementation of the WHO International Code of Marketing of Breast-milk Substitutes (f) G4-PR7 29 36 83 Infant formula marketing staff in higher-risk countries trained on the WHO Code (% of staff) (g) G4-PR6 100 100 83 Rural development Farmers trained through capacity-building programmes 376 000 400 000 96, 116, 121 Markets covered by Sustainable Agriculture Initiative Nestlé (SAIN) programmes 51 52 96, 156 Direct procurement markets covered by SAIN programmes (%) 100 92 96, 156 Percentage of suppliers that fully comply with the Nestlé Supplier Code G4-FP1 73.0 82.0 107 Percentage of purchased volume fully compliant with the Nestlé Supplier Code* G4-FP1 73.0 82.0 107 Water (h) Total water withdrawal (million m 3 ) G4-EN8 147 140 144 Total water withdrawal (million m 3 per tonne of product) G4-EN8 2.74 2.57 144 Environmental sustainability (h) Production volume Total production volume (million tonnes) 53.7 54.6 n/a Materials Raw materials used (million tonnes) G4-EN1 25.8 25.0 n/a Materials for packaging purposes (million tonnes) G4-EN1 5.6 5.3 185 Packaging source optimisation (kilotonnes saved) 45.8 58.2 185 * Percentage compliant is 73% (95% was spend accounted for by number of suppliers audited) Nestlé in society – Creating Shared Value and meeting our commitments 2015 5
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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