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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 />

Healthy <strong>and</strong> affordable food G4-DMA, G4-PR1<br />

Nutrition, health <strong>and</strong> wellness: <strong>our</strong> foods, beverages<br />

<strong>and</strong> services<br />

To promote nutrition, health <strong>and</strong> wellness across all the stages of life, we provide high-quality, science-based<br />

foods <strong>and</strong> beverages that help people lead healthier lives while enjoy<strong>in</strong>g what they consume. Our offer<strong>in</strong>gs can<br />

be found <strong>in</strong> households around the world, which gives us a strong platform from which to create <strong>and</strong> renovate<br />

nutritionally enhanced <strong>and</strong> culturally relevant food <strong>and</strong> beverage options. We also fortify some foods with<br />

nutrients <strong>and</strong> seek to provide services that enc<strong>our</strong>age healthy eat<strong>in</strong>g patterns, such as portion guidance <strong>and</strong><br />

<strong>in</strong>formative packag<strong>in</strong>g. By develop<strong>in</strong>g <strong>our</strong> underst<strong>and</strong><strong>in</strong>g of consumers <strong>and</strong> the choices they make, we can deliver<br />

tastier <strong>and</strong> healthier foods <strong>and</strong> beverages that enc<strong>our</strong>age <strong>in</strong>dividuals to achieve a balanced lifestyle plan.<br />

<strong>Nestlé</strong> delivers more than 1 billion serv<strong>in</strong>gs of foods <strong>and</strong><br />

beverages every day worldwide, uniquely enabl<strong>in</strong>g us to drive<br />

optimal health <strong>and</strong> improved wellness.<br />

We are committed to cont<strong>in</strong>uously improv<strong>in</strong>g the nutritional<br />

benefits of <strong>our</strong> foods <strong>and</strong> beverages, develop<strong>in</strong>g their health<br />

benefits through reformulation. Our gradual approach to<br />

reduc<strong>in</strong>g salt, sugar <strong>and</strong> saturated fats (<strong>and</strong> remov<strong>in</strong>g trans fats)<br />

helps <strong>in</strong>dividuals adapt their taste preference while choos<strong>in</strong>g<br />

foods that support healthier lifestyles. We are equally <strong>in</strong>terested<br />

<strong>in</strong> ensur<strong>in</strong>g families get the miss<strong>in</strong>g foods <strong>and</strong> nutrition they<br />

lack <strong>in</strong> their diet – <strong>in</strong>clud<strong>in</strong>g fruits, vegetables, whole gra<strong>in</strong>s <strong>and</strong><br />

fibre – through <strong>our</strong> portfolio <strong>and</strong> support<strong>in</strong>g services.<br />

In the develop<strong>in</strong>g world, we are committed to play<strong>in</strong>g <strong>our</strong><br />

part <strong>in</strong> address<strong>in</strong>g undernutrition. A key element of <strong>our</strong> work <strong>in</strong><br />

these countries is provid<strong>in</strong>g affordable nutrition <strong>and</strong><br />

micronutrients to lower-<strong>in</strong>come populations, especially<br />

children <strong>and</strong> women of childbear<strong>in</strong>g age.<br />

All of <strong>our</strong> nutrition, health <strong>and</strong> wellness activities are backed<br />

by scientific research, <strong>in</strong>clud<strong>in</strong>g studies on lifestyle behavi<strong>our</strong>s.<br />

We also <strong>in</strong>vestigate the application of nutritional solutions for<br />

<strong>in</strong>dividuals with specific illnesses or needs associated with<br />

age<strong>in</strong>g, <strong>in</strong>clud<strong>in</strong>g sk<strong>in</strong> health. We see <strong>our</strong> nutrition therapies as<br />

an opportunity to adapt <strong>our</strong> nutrition knowledge to support the<br />

health <strong>and</strong> wellness of a wider range of consumers.<br />

Innovation <strong>and</strong> renovation of<br />

<strong>our</strong> foods <strong>and</strong> beverages<br />

Non-communicable diseases (NCDs), which are not passed<br />

between <strong>in</strong>dividuals, are responsible for an estimated 68%<br />

of deaths worldwide. There are f<strong>our</strong> ma<strong>in</strong> types of NCDs:<br />

cardiovascular disease; cancer; chronic respiratory diseases;<br />

<strong>and</strong> diabetes. NCDs affect people of all ages <strong>in</strong> all regions, but<br />

two important risk factors are physical <strong>in</strong>activity <strong>and</strong> nutrientpoor<br />

diets. In addition, <strong>in</strong> 2014, 39% of the global adult<br />

population was overweight <strong>and</strong> 13% was obese.<br />

Overweight <strong>and</strong> obesity can be caused by environmental<br />

factors that are hard to control, but the best methods of<br />

prevent<strong>in</strong>g these diseases are hav<strong>in</strong>g an active lifestyle <strong>and</strong><br />

improved nutrition. We believe that progressive food<br />

companies can develop food <strong>and</strong> beverage solutions that help<br />

give consumers access to healthier liv<strong>in</strong>g.<br />

Popularly Positioned Products<br />

We have a responsibility to provide consumers with<br />

high-quality, nutritious products, regardless of where we<br />

sell them <strong>and</strong> at what price. We have developed a<br />

specific approach to what we def<strong>in</strong>e as <strong>our</strong> PPPs, which<br />

focuses on meet<strong>in</strong>g the specific needs of lower-<strong>in</strong>come<br />

consumers worldwide. PPPs offer these consumers the<br />

opportunity to consume high-quality, nutritious foods <strong>and</strong><br />

beverages at an affordable cost. We sell PPP versions of<br />

lead<strong>in</strong>g br<strong>and</strong>s such as Milo, Maggi <strong>and</strong> Nescafé.<br />

Popularly Positioned Products sales (CHF million)<br />

<strong>2015</strong> 11 599<br />

2014 12 205<br />

2013 11 803<br />

Popularly Positioned Products stock-tak<strong>in</strong>g units<br />

(number of units)<br />

<strong>2015</strong> 4845<br />

2014 5 014<br />

2013 9562<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> 67

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