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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 />

FP6<br />

Remov<strong>in</strong>g trans fats <strong>in</strong><br />

Coffee-Mate<br />

In the 2014 <strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>: Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> report, we<br />

announced <strong>our</strong> work to reformulate liquid Coffee-Mate,<br />

replac<strong>in</strong>g 16 000 tonnes of PHO with a high oleic soya bean oil,<br />

<strong>and</strong> remov<strong>in</strong>g 6000 tonnes of trans fat. This work cont<strong>in</strong>ued <strong>in</strong><br />

<strong>2015</strong>; altogether, 25 800 tonnes of oil have now been replaced<br />

<strong>and</strong> 9900 tonnes of pure trans fat have been removed from<br />

Coffee-Mate sold <strong>in</strong> the United States.<br />

Through close collaboration with <strong>our</strong> suppliers DuPont<br />

Pioneer, we have <strong>in</strong>troduced control procedures at each step of<br />

the supply cha<strong>in</strong> to ensure raw material authenticity.<br />

Replacement of the PHO with the high oleic soya bean<br />

emerg<strong>in</strong>g oil (Plenish®) has now been conducted on 80% of the<br />

Coffee-Mate portfolio. As an additional benefit, the new high<br />

oleic soya bean oils have also enabled saturated fats to be<br />

reduced by 40%.<br />

There are currently more than 300 000 soya bean farmers <strong>in</strong><br />

the United States. The <strong>in</strong>creased prevalence of Plenish®, an<br />

<strong>in</strong>novative <strong>and</strong> cost-effective oil, coupled with the dem<strong>and</strong><br />

from <strong>Nestlé</strong>, are an example of Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> – mak<strong>in</strong>g<br />

<strong>our</strong> products healthier while support<strong>in</strong>g the farm<strong>in</strong>g<br />

community. A grow<strong>in</strong>g number of farmers are dedicat<strong>in</strong>g more<br />

acres to soya bean farm<strong>in</strong>g; <strong>in</strong> 2016, <strong>Nestlé</strong> expects to have<br />

32 000 tonnes of new oil <strong>and</strong> to have replaced the current PHO<br />

with Plenish® <strong>in</strong> 100% of Coffee-Mate products.<br />

Our <strong>in</strong>itial renovation work has focused on these products.<br />

By work<strong>in</strong>g closely with the areas of the bus<strong>in</strong>ess <strong>in</strong>volved <strong>and</strong><br />

their jo<strong>in</strong>t ventures, we have successfully reformulated many of<br />

these foods <strong>and</strong> beverages. These reformulated products led to<br />

a physical reduction of saturated fats of more than 1900 tonnes<br />

by the end of <strong>2015</strong>, the equivalent of 2.2% out of the 10% we<br />

had committed to achieve. Further renovation work has been<br />

identified, show<strong>in</strong>g an additional reduction of 7.2%. However,<br />

it is likely that its implementation will go beyond 2016.<br />

Our challenge lies <strong>in</strong> the ability to provide technical<br />

solutions that do not affect consumer enjoyment while<br />

ensur<strong>in</strong>g the expected quality throughout the product’s shelf<br />

life. We cont<strong>in</strong>ue to drive technological <strong>in</strong>novations that will<br />

enable further reduction of saturated fats <strong>in</strong> <strong>our</strong> product<br />

portfolio without compromis<strong>in</strong>g on safety, quality or taste.<br />

Reduc<strong>in</strong>g saturated fats <strong>and</strong><br />

sodium <strong>in</strong> noodles <strong>in</strong> the Ukra<strong>in</strong>e<br />

Our product renovation team <strong>in</strong> Kharkiv, Ukra<strong>in</strong>e, identified an<br />

opportunity to reduce the saturated fat content of <strong>our</strong> portfolio<br />

of Asian noodle products, which are manufactured locally <strong>and</strong><br />

exported to 17 countries. By work<strong>in</strong>g with <strong>our</strong> R&D Centres <strong>in</strong><br />

India <strong>and</strong> Germany, <strong>our</strong> Ukra<strong>in</strong>e team is redesign<strong>in</strong>g the noodle<br />

recipes for br<strong>and</strong>s <strong>in</strong>clud<strong>in</strong>g Miv<strong>in</strong>a, Maggi, Buitoni <strong>and</strong> W<strong>in</strong>iary<br />

to reduce saturated fats without compromis<strong>in</strong>g on taste. To<br />

achieve this, the Ukra<strong>in</strong>e team is us<strong>in</strong>g <strong>Nestlé</strong> patented<br />

technology, cul<strong>in</strong>ary <strong>and</strong> equipment expertise equipment<br />

<strong>and</strong> new equipment.<br />

The aim of the renovation is to deliver a food made with more<br />

traditional <strong>in</strong>gredients while reduc<strong>in</strong>g saturated fats content by<br />

more than 50% <strong>and</strong> sodium by more than 15%. Although the<br />

renovated noodle recipes have yet to go <strong>in</strong>to full production,<br />

the approach will lead to the potential removal of more than<br />

800 tonnes of saturated fats <strong>and</strong> 55 tonnes of sodium.<br />

Saturated fats can be found <strong>in</strong> animal fat products, <strong>in</strong>clud<strong>in</strong>g<br />

cream, cheese, butter <strong>and</strong> fatty meats, <strong>and</strong> a few plant<br />

s<strong>our</strong>ces. Diets that are high <strong>in</strong> saturated fats can raise the level<br />

of cholesterol <strong>in</strong> the blood, which <strong>in</strong> turn can cause severe<br />

health risks. To improve the nutritional value of <strong>our</strong> foods <strong>and</strong><br />

beverages that conta<strong>in</strong> saturated fats, we have implemented<br />

wide-rang<strong>in</strong>g programmes to reduce saturated fats <strong>and</strong><br />

launched a number of renovated foods with reduced saturated<br />

fats levels.<br />

We have identified the 10 500 <strong>in</strong>dividual foods <strong>and</strong><br />

beverages from <strong>our</strong> portfolio that are currently not compliant<br />

with the NF criteria for saturated fats. Although these products<br />

only represent 6.2% of <strong>our</strong> total foods <strong>and</strong> beverages, this is<br />

the most challeng<strong>in</strong>g part of <strong>our</strong> portfolio to reformulate.<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> 72

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