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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 />

Products conta<strong>in</strong><strong>in</strong>g Br<strong>and</strong>ed Active Benefits<br />

(sales volume, CHF million)<br />

<strong>2015</strong> 6 193<br />

2014 6687<br />

2013 6863<br />

Products with <strong>in</strong>crease <strong>in</strong> nutritious <strong>in</strong>gredients or<br />

essential nutrients*<br />

<strong>2015</strong> 4643<br />

2014 6359<br />

2013 4 778<br />

*<br />

Based on reports of approximately 82% of factories.<br />

Nutrition <strong>and</strong> taste: the <strong>Nestlé</strong> Nutritional Profil<strong>in</strong>g<br />

System <strong>and</strong> the 60/40+ programme<br />

It is important to us that <strong>our</strong> foods <strong>and</strong> beverages are tasty as<br />

well as nutritious. We guarantee the optimal nutritional<br />

contribution of <strong>our</strong> foods <strong>and</strong> beverages through the <strong>Nestlé</strong><br />

Nutritional Profil<strong>in</strong>g System (NNPS), while the 60/40 programme<br />

drives preferred taste through consumer sensory test<strong>in</strong>g. NNPS<br />

adds the ‘+’ to the 60/40 programme, mak<strong>in</strong>g it 60/40+, which<br />

helps us to achieve <strong>our</strong> ambition of taste <strong>and</strong> nutrition.<br />

Our <strong>in</strong>novation work beg<strong>in</strong>s with the NNPS. The system<br />

operates through a set of criteria based on up-to-date nutrition<br />

science <strong>and</strong> global public health recommendations. We use<br />

the NNPS criteria to assess all of <strong>our</strong> foods <strong>and</strong> beverages<br />

aga<strong>in</strong>st criteria <strong>and</strong> how they fit <strong>in</strong>to a children’s or adult’s<br />

dietary daily reference <strong>in</strong>takes.<br />

The NNPS considers specific nutritional factors such as<br />

added sugars <strong>and</strong> fructose, saturated fats, trans fats, sodium<br />

<strong>and</strong> energy content, as well as additional criteria for essential<br />

nutritional contributions that specific types of food or<br />

beverage products should provide (e.g. calcium, prote<strong>in</strong>, fibre<br />

or whole gra<strong>in</strong>).<br />

Each food or beverage that meets the criteria is said to have<br />

atta<strong>in</strong>ed <strong>Nestlé</strong> Nutritional Foundation (NF) status, <strong>and</strong><br />

accord<strong>in</strong>gly represents an appropriate choice for consumers <strong>in</strong><br />

the context of a balanced diet. A food or beverage product can<br />

only atta<strong>in</strong> NF status when all of its nutritional factors meet<br />

category criteria.<br />

The NNPS criteria are reviewed twice yearly by lead<strong>in</strong>g<br />

academics. In the last meet<strong>in</strong>g, which took place <strong>in</strong> October<br />

<strong>2015</strong>, the experts confirmed the upcom<strong>in</strong>g publication <strong>and</strong><br />

conference pipel<strong>in</strong>e for 2016. In addition, we also received<br />

guidance on nutritional issues, such as the best approach to<br />

def<strong>in</strong>e portion sizes.<br />

To provide full transparency of the NNPS methodology we<br />

plan to submit a series of publications to lead<strong>in</strong>g peerreviewed<br />

scientific j<strong>our</strong>nals, written <strong>in</strong> collaboration with<br />

external nutrition experts. The first publication of the series<br />

will be published <strong>in</strong> February 2016 <strong>in</strong> the European J<strong>our</strong>nal of<br />

Nutrition. We also feature the work of the NNPS at academic<br />

conferences. In <strong>2015</strong>, we participated <strong>in</strong> the European<br />

Nutrition Conference (FENS) (Berl<strong>in</strong>, Germany), the Asian<br />

Congress of Nutrition Conference (Yokohama, Japan) <strong>and</strong> the<br />

Experimental Biology Meet<strong>in</strong>g (Boston, USA).<br />

In <strong>2015</strong>, we assessed 87.01% of <strong>our</strong> foods <strong>and</strong> beverages<br />

through the NNPS; of this total, 81.6% of <strong>our</strong> net sales met or<br />

exceeded the criteria. We rema<strong>in</strong> firmly committed to<br />

improv<strong>in</strong>g the nutritional profile of those 18.4% of products<br />

that did not reach NF status through renovation.<br />

Our nutrition-oriented renovation work is supported by the<br />

60/40+ programme, which uses a representative consumer<br />

panel, <strong>in</strong> which at least 60% of the panel must prefer the taste<br />

<strong>in</strong> a bl<strong>in</strong>d test of the <strong>Nestlé</strong> food or beverage to those of a<br />

competitor. In <strong>2015</strong>, foods <strong>and</strong> beverages with a sales value of<br />

CHF 33 657 million were analysed, improved or confirmed by<br />

the 60/40+ programme.<br />

Nutritious foods <strong>and</strong> beverages for children<br />

Our commitment<br />

Our objective<br />

Provide nutritionally sound products designed<br />

for children<br />

By <strong>2015</strong> – Ma<strong>in</strong>ta<strong>in</strong> <strong>our</strong> children’s products portfolio at<br />

100% NF ‘Yes’ status us<strong>in</strong>g specific criteria for children<br />

as per official recommendations.<br />

Children’s food <strong>and</strong> beverages* meet<strong>in</strong>g <strong>Nestlé</strong> Nutritional<br />

Foundation criteria (%)<br />

Goal: Ma<strong>in</strong>ta<strong>in</strong> at 100%<br />

<strong>2015</strong> 99<br />

2014 98<br />

2013 96<br />

*<br />

By children’s foods <strong>and</strong> beverages, we mean those where 50% or more of the<br />

consumers are up to 12 years of age, or that have been designed (or perceived as be<strong>in</strong>g<br />

designed) for this age group.<br />

We seek to improve <strong>our</strong> foods <strong>and</strong> beverages for children by<br />

assess<strong>in</strong>g all of <strong>our</strong> offer<strong>in</strong>gs through the NNPS criteria to<br />

determ<strong>in</strong>e their NF status. Ensur<strong>in</strong>g that all of them are both<br />

nutritious <strong>and</strong> tasty can sometimes represent a significant<br />

challenge. By the end of <strong>2015</strong>, virtually all (99%) of <strong>our</strong> foods<br />

<strong>and</strong> beverages for children, <strong>in</strong>clud<strong>in</strong>g Popularly Positioned<br />

Product (PPPs), met all the NNPS criteria. We have been able<br />

to achieve this through tailored <strong>in</strong>novations <strong>and</strong> the careful<br />

monitor<strong>in</strong>g of <strong>our</strong> foods <strong>and</strong> beverages across all markets,<br />

establish<strong>in</strong>g action plans where gaps exist.<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> 68

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