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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 />

Customer health <strong>and</strong> safety G4-DMA, Market<strong>in</strong>g communications G4-DMA, G4-PR7, Compliance G4-DMA (Product responsibility)<br />

The EU Pledge<br />

Launched <strong>in</strong> December 2007, the EU Pledge is a<br />

voluntary <strong>in</strong>itiative by lead<strong>in</strong>g food <strong>and</strong> beverage<br />

companies to change food <strong>and</strong> beverage advertis<strong>in</strong>g to<br />

children under the age of 12 <strong>in</strong> the European Union. It<br />

consists of two ma<strong>in</strong> <strong>commitments</strong>:<br />

• No advertis<strong>in</strong>g for food <strong>and</strong> beverage products to<br />

children under the age of 12 on TV, pr<strong>in</strong>t or the<br />

<strong>in</strong>ternet, except for products which fulfil common<br />

nutritional criteria; <strong>and</strong><br />

• No communication related to products <strong>in</strong> primary<br />

schools, except where specifically requested by,<br />

or agreed with, the school adm<strong>in</strong>istration for<br />

educational purposes.<br />

These are m<strong>in</strong>imum common st<strong>and</strong>ards that enable jo<strong>in</strong>t<br />

monitor<strong>in</strong>g <strong>and</strong> accountability. Individual companies can<br />

apply corporate st<strong>and</strong>ards that go above <strong>and</strong> beyond<br />

these common rules.<br />

Through <strong>our</strong> new Policy, which was communicated to markets<br />

dur<strong>in</strong>g <strong>2015</strong> <strong>and</strong> launched <strong>in</strong> January 2016, we apply the EU<br />

Pledge criteria globally. Where local or regionally agreed<br />

pledges criteria are stricter, they are applied. If criteria are<br />

lack<strong>in</strong>g for a product category <strong>in</strong> the EU Pledge, we apply <strong>our</strong><br />

NNPS criteria.<br />

It is important that <strong>our</strong> marketeers are aware of the impact<br />

that <strong>our</strong> <strong>Nestlé</strong> Policy has on the communication of the foods<br />

<strong>and</strong> beverages we sell. We will seek to cont<strong>in</strong>uously <strong>in</strong>crease<br />

knowledge <strong>and</strong> awareness of the criteria across <strong>our</strong><br />

organisation, <strong>and</strong> we are currently develop<strong>in</strong>g a web-based<br />

tool to support <strong>in</strong>ternal underst<strong>and</strong><strong>in</strong>g of responsible<br />

market<strong>in</strong>g practices among <strong>our</strong> marketeers <strong>and</strong> external<br />

agency partners.<br />

We want <strong>our</strong> children’s br<strong>and</strong>s to be responsibly<br />

communicated to parents <strong>and</strong> children, provid<strong>in</strong>g a s<strong>our</strong>ce of<br />

enjoyment with foods <strong>and</strong> beverages they can trust. When it<br />

comes to market<strong>in</strong>g confectionery, we aim to ensure that we<br />

avoid plac<strong>in</strong>g market<strong>in</strong>g communications <strong>in</strong> media where 35%<br />

of the audience is under 12 years old, <strong>and</strong> we do not create<br />

market<strong>in</strong>g of primary appeal to children under that age. We<br />

will apply global confectionery guidel<strong>in</strong>es <strong>and</strong> checklists that<br />

<strong>our</strong> market<strong>in</strong>g departments can use to ensure material that<br />

they have created meets the st<strong>and</strong>ards required.<br />

The market<strong>in</strong>g to children criteria can have a direct impact<br />

on how we develop <strong>our</strong> foods <strong>and</strong> beverages, as well as <strong>our</strong><br />

associated market<strong>in</strong>g practices. As an example, we have<br />

recently been engaged <strong>in</strong> renovation work <strong>in</strong> the ice cream<br />

sector. Currently, 85% of <strong>our</strong> global children’s ice cream<br />

portfolio meets EU Pledge nutritional criteria, which caps<br />

children’s products at 110 calories. We plan to accelerate<br />

reformulation of the children’s ice cream portfolio <strong>in</strong> the<br />

other countries where we operate to achieve 80% by the<br />

end of 2016.<br />

Our <strong>Nestlé</strong> Policy states we will only use owned or licensed<br />

characters appeal<strong>in</strong>g to children aged between 6 <strong>and</strong> 12 to<br />

promote healthy, active lifestyles. Licensed characters that<br />

could appeal to children under 12 cannot be used for foods<br />

<strong>and</strong> beverages where they do not meet the EU Pledge<br />

nutritional criteria.<br />

A key element of <strong>our</strong> global <strong>Nestlé</strong> Policy is that we do not<br />

conduct market<strong>in</strong>g communications <strong>in</strong> schools, except for<br />

educational purposes that have been explicitly requested by<br />

school authorities. This exception is only valid for students<br />

aged 6-12 years old. In addition, <strong>our</strong> <strong>in</strong>ternal guidel<strong>in</strong>es state<br />

that any outdoor communication material that is placed with<strong>in</strong><br />

50 metres of a k<strong>in</strong>dergarten, primary school or playground<br />

must only advertise foods <strong>and</strong> beverages that are nutritionally<br />

compliant with <strong>our</strong> policy.<br />

Both the <strong>Nestlé</strong> Communication Pr<strong>in</strong>ciples <strong>and</strong> the <strong>Nestlé</strong><br />

Policy clearly reference support for parents <strong>and</strong> the promotion<br />

of healthy diets <strong>and</strong> lifestyles.<br />

We rema<strong>in</strong> open to comments <strong>and</strong> compla<strong>in</strong>ts from<br />

consumers <strong>and</strong> external stakeholders. Tell us provides a formal<br />

mechanism for receiv<strong>in</strong>g, process<strong>in</strong>g, <strong>in</strong>vestigat<strong>in</strong>g <strong>and</strong><br />

respond<strong>in</strong>g to compla<strong>in</strong>ts from customers <strong>and</strong> the general<br />

public about <strong>our</strong> policies <strong>and</strong> practices. Any compla<strong>in</strong>t from<br />

customers <strong>and</strong> the general public about content <strong>and</strong> visuals<br />

relat<strong>in</strong>g to children will be received, processed, <strong>in</strong>vestigated<br />

<strong>and</strong> responded to. One compla<strong>in</strong>t about <strong>our</strong> market<strong>in</strong>g<br />

practices (on gender discrim<strong>in</strong>ation) was received through<br />

Tell us <strong>in</strong> <strong>2015</strong>. The compla<strong>in</strong>t was <strong>in</strong>vestigated but not upheld.<br />

No compla<strong>in</strong>ts were received on <strong>our</strong> market<strong>in</strong>g to children.<br />

Mak<strong>in</strong>g voluntary <strong>commitments</strong><br />

Our policies are guided by a series of global, regional <strong>and</strong><br />

national <strong>commitments</strong> <strong>and</strong> pledges that aim to establish<br />

<strong>in</strong>dustry consensus on m<strong>in</strong>imum st<strong>and</strong>ards for market<strong>in</strong>g to<br />

children.<br />

IFBA commitment<br />

As a member of the IFBA, <strong>Nestlé</strong> is committed to comply<strong>in</strong>g<br />

with the IFBA Global Policy on Advertis<strong>in</strong>g <strong>and</strong> Market<strong>in</strong>g<br />

Communications to Children (IFBA Global Policy). Each year,<br />

IFBA engages a third party to monitor <strong>and</strong> report publicly on<br />

members’ compliance with its policy.<br />

The monitor<strong>in</strong>g system ensures that children under 12 are<br />

not targeted by non-compliant communications. We have<br />

been successfully track<strong>in</strong>g compliance <strong>in</strong> previous years with<br />

the 35% threshold <strong>in</strong> traditional media (TV, radio <strong>and</strong> pr<strong>in</strong>t)<br />

through <strong>in</strong>ternal audit<strong>in</strong>g <strong>and</strong> external monitor<strong>in</strong>g, the latter<br />

conducted by Accenture.<br />

In <strong>2015</strong>:<br />

• 71 <strong>Nestlé</strong> pr<strong>in</strong>t publications were assessed <strong>in</strong> S<strong>in</strong>gapore,<br />

Ch<strong>in</strong>a, Brazil, South Africa <strong>and</strong> Russia;<br />

• 355 television adverts were reviewed <strong>in</strong> Brazil, Colombia,<br />

Indonesia, Malaysia <strong>and</strong> South Africa, with an overall<br />

compliance rate of 97%; <strong>and</strong><br />

• 83 websites were reviewed <strong>in</strong> f<strong>our</strong> countries.<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> 88

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