Creating Shared Value Report 2018 en

Good Food, Good Life
Creating Shared Value and

meeting our commitments 2018
Progress report
Nestlé. Enhancing quality of life and

contributing to a healthier future
Creating Shared Value Individuals and families Communities Planet Reporting and governance
Welcome to this 2018 Creating Shared Value progress report.

Aimed at shareholders, stakeholders and other interested parties,
this report shares detailed information about our issues, impacts 3 Creating Shared Value
and performance against our commitments during the year. 5 Our 2020 commitments
and progress
Nestlé. Enhancing quality of life and contributing to a healthier future.
6 For individuals and families
A message from our Chairman and CEO 7 Offering tastier and

healthier choices
13 Inspiring people to
At Nestlé, we believe that business diversity and inclusion within our
lead healthier lives
results and positive societal impact company is another example. We
21 Building, sharing and
should be mutually reinforcing. are accelerating our efforts in this
applying nutrition knowledge
To be successful in the long term, area with a particular focus on
we must create value for both increasing the number of women in 24 For our communities
our shareholders and for society. senior executive positions globally.
25 Enhancing rural development
We call this approach to business
and livelihoods
Creating Shared Value and it is When it comes to addressing
31 Respecting and promoting
an integral part of our strategy. global sustainability challenges,
human rights
one of our key ambitions is to lead
Improving the nutrition, health and the way in shaping a waste-free 36 Promoting decent employment
and diversity
wellness profile of our foods and future. We are committed to
beverages is at the heart of what making our packaging 100% 40 For the planet
we do. We want to contribute to recyclable or reusable by 2025, and
healthier lives, with a particular have already taken specific action 41 Caring for water
emphasis on childhood nutrition. on this initiative earlier this year. 46 Acting on climate change
Our Nestlé for Healthier Kids 49 Safeguarding the environment
initiative brings together all our As in previous years, we reaffirm
efforts – from product our support for the UN Global 55 Reporting and governance
reformulation to supporting Compact. As a founding member 56 About this report
parents and caregivers. of UN Global Compact LEAD, we
recognize the importance of this Paul Bulcke Mark Schneider 57 Independent assurance
We are also driven to positively platform for driving corporate Chairman Chief Executive Officer statement
contribute to the communities sustainability leadership and
58 Our key performance indicators
where we live and work. Our Global collective engagement toward the
Youth Initiative is just one of the 2030 Agenda for Sustainable
many ways we make an impact. Development.
We have expanded our efforts here
to address youth unemployment We welcome your feedback on this
and help 10 million young people report, our commitments and our
access economic opportunities by performance.
2030. Our commitment to foster
Creating Shared Value progress report 2018 2

Creating Shared Value

Creating Shared Value (CSV) is fundamental to how we do business at Nestlé.
We believe that our company will be successful in the long term by creating value,
both for our shareholders and for society. Our activities and products should make
a positive difference to society while contributing to Nestlé’s ongoing success.
Focus on key areas To better connect financial with

non-financial value creation and
Long‑term value creation requires reporting, we worked with Ernst &
focus. In consultation with experts, Young (EY) and Valuing Nature to
we chose to prioritize the three conduct an impact assessment to
areas where our business intersects calculate the societal and business
the most with society: nutrition, value generated by our Global Youth
rural development and water. Value Initiative (GYI). Launched in 2017, the
creation is only possible with a solid GYI is expected to create 10 million
foundation of compliance and a economic opportunities for young
culture of respect, as well as a firm people over the next decade. The
commitment to environmental study revealed that the initiative
and social sustainability. Our generated a positive business return
impact on these focus areas is on investment, and an even higher
measured by progress against societal return. More details on the
publicly stated commitments, results and methodology have been
which are informed by our published on our website.
materiality assessment and regular
feedback from external groups. This impact valuation methodology
has been peer-reviewed by FSG
The business case for and continues to be refined
Creating Shared Value through application to other
We cannot maximize long-term projects. We are currently
sustainable value creation for conducting an impact valuation of
shareholders at the expense of our Caring for Water initiative.
other stakeholders. We believe that
societies will not support a business We also participated in the work
that harms our communities and of the Embankment Project for
overall sense of well-being. Creating Inclusive Capitalism (EPIC), which
Shared Value helps ensure that we aims at shaping the broader
remain relevant with consumers. conversation on long-term
value creation.
Read more about CSV
Read more about our

reporting and governance
Focusing on our process, harnessed the

Natural resource and water stewardship Supply chain stewardship
perspectives of mainstream
material issues investors, and involved key markets
Climate change Over- and under-nutrition
and growth categories.
Major
The materiality process
Materiality is about identifying
This was our first materiality
the issues that matter most to
exercise since switching from the
our business and our stakeholders.
Global Reporting Initiative (GRI) G4
Importance to stakeholders
Every two years, we plot
Guidelines to the GRI Standards. Women’s empowerment Rural development and poverty alleviation Food and product safety
the economic, social and
We worked with DNV GL, an Community relations Human rights Changing consumer demographics and trends
environmental issues that are of Business ethics Product packaging and plastic
independent organization, to
Significant
Responsible marketing and influence
most concern to our external
conduct the assessment using a Product quality
stakeholders against those that Food and nutrition security
formal materiality process to ensure
pose risks or present opportunities Resource efficiency, (food) waste and
alignment with the GRI Standards. the circular economy
to Nestlé. Conducting a thorough Land management in the supply chain
materiality analysis in this way not
The issues identified were placed
only helps us to identify issues we Animal welfare Product regulation and taxation
on a matrix, their position relative to
need to cover in our reporting, but Employee safety, health and wellness Geopolitical uncertainty
the degree of stakeholder interest Decent employment and equal opportunities Responsible use of technology
also helps us to decide where to
Moderate
and potential business impact. Data privacy and cyber security
focus our internal resources.
These results represent the material
issues facing our business. The
Our 2018 materiality issues should not be viewed in
assessment isolation; they are increasingly
For 2018, the materiality process interconnected, and oftentimes Moderate Significant Major
was evolved to bring both changes in one can have an impact Impact on Nestlé’s success
nonfinancial and financial risk on others.
identification together and to For individuals and families For our communities For the planet
connect it more closely to business
operations. In addition to
identifying and prioritizing issues
How we map our material
from internal and external
issues across our value chain
stakeholders, the 2018 materiality
assessment integrated with the How we map our material
Enterprise Risk Management issues to the UN SDGs

Our 2020 commitments and progress Status of our commitments
New In progress Achieved
For individuals Our 2030 ambition

is to help 50 million
For our Our 2030 ambition is to
improve 30 million
For the planet Our 2030 ambition
is to strive for zero
and families children lead communities livelihoods in communities Stewarding resources environmental impact
Enabling healthier healthier lives Helping develop directly connected to our for future generations in our operations
and happier lives thriving, resilient business activities
communities
Offering tastier and Inspiring people to Building, sharing and Enhancing rural Respecting and Promoting decent Caring for water Acting on Safeguarding
healthier choices lead healthier lives applying nutrition development and promoting employment climate change the environment
knowledge livelihoods human rights and diversity
Launch more foods Apply and explain Build and share Improve farm Assess and Roll out our Nestlé Work to achieve Provide climate Improve the
and beverages that are nutrition information on nutrition knowledge economics among the address human rights needs YOUth initiative water efficiency and change leadership environmental
nutritious, especially for packs, at point-of-sale from the first 1000 days farmers who supply us impacts across our across all our operations sustainability across our performance of our
mothers-to-be, new and online through to healthy aging business activities operations Promote packaging
mothers, and infants Improve food Enhance gender transparency and
and children Offer guidance on Build biomedical availability and dietary Improve workers’ balance in our workforce Advocate for proactive, long-term Reduce food loss
portions for our products science leading to diversity among the livelihoods and and empower women effective water policies engagement in and waste
Further decrease health-promoting farmers who supply us protect children in across the entire value and stewardship climate policy
sugars, sodium and Leverage our products, personalized our agricultural chain Provide meaningful
saturated fat marketing efforts to nutrition and digital Implement supply chain Engage with and accurate
promote healthy cooking, solutions responsible sourcing in Advocate for suppliers, especially environmental
Increase eating and lifestyles our supply chain and Enhance a culture healthy workplaces and those in agriculture information and dialogue
vegetables, fiber-rich promote animal welfare of integrity across the healthier employees
grains, pulses, nuts and Empower parents, organization Raise awareness Preserve natural
seeds in our foods and caregivers and teachers Continuously on water conservation capital
beverages to foster healthy improve our green Provide effective and improve access to
behaviors in children coffee supply chain grievance mechanisms water and sanitation
Simplify our to employees and across our value chain
ingredient lists and Support Roll out the Nestlé stakeholders
remove artificial colors breastfeeding and Cocoa Plan with cocoa
protect it by continuing farmers
Address to implement an
under-nutrition through industry-leading policy
micronutrient to market breast-milk
fortification substitutes responsibly
Inspire people to
choose water to lead
healthier lives
Partner for
promoting healthy
food environments

For individuals
and families
Enabling healthier and happier lives
2030 Ambition To help 50 million children lead healthier lives.
Nestlé for by rigorous research, which we • Inspiring people to lead

Healthier Kids share with members of the health healthier lives: Adopting good
and nutrition communities nutrition and hydration habits
reached 29 million worldwide. from an early age is essential to
children in 2018 children’s development. Our
Nestlé for Healthier Kids programs help parents and
It’s never too early to build healthy educators improve nutrition
Food is not only a source of
eating habits. Officially launched in knowledge, promote home
nutrition, it is vital to our social
2018, Nestlé for Healthier Kids is our cooking and encourage active
fabric. In every country, in
flagship initiative for children and lifestyles (pages 12–20).
every culture, food brings
families. It brings together all our • Building, sharing and applying
people together. However, the
efforts, from product reformulation nutrition knowledge: Nestlé for
way we consume food, and the
to innovative nutrition and lifestyle Healthier Kids activities are built
kind of food we eat, has
services for parents and on scientific evidence, including
become a contributing factor to
caregivers. Our ambition is to help our studies into the eating habits
the public health challenges we
50 million children lead healthier and nutritional intake of infants
face today, such as obesity and
lives by 2030. and children. We also aim to
other forms of malnutrition, as
recognized by the World Health • Offering tastier and healthier understand, treat and help
Organization (WHO). In choices: We are committed to prevent a range of medical
addition, consumer food habits delivering more nutritious conditions by leveraging
are changing. In line with these products to kids and families by nutrition and life sciences
evolving issues, we are reducing sugars, sodium and (pages 21–23).
transforming our products, saturated fat in our products,
making them healthier and adding fiber-rich grains, Read more online
natural, to enhance quality of vegetables and micronutrients,
life and contribute to a healthier and phasing out artificial
future. Our work is supported ingredients (pages 6–11).

Why it matters Our contribution

Around the world, about 2 billion people lack The UN Sustainable Development Goals (SDGs)
essential micronutrients in their diet (Global present a unique opportunity for tackling the
Nutrition Report). Our own studies strengthen underlying causes of malnutrition on a global
existing, independent evidence that children scale. We are contributing to the goals by
around the world don’t consume enough whole working with partners to help address all forms
grains or vegetables, or have sufficient calcium of malnutrition and encourage healthy diets.
and vitamin D in their diets. The elderly and To do so, we’re continuing to develop and
people living with severe intolerances are also launch more nutritious foods and beverages
vulnerable to poor nutrition. as well as more sustainable products, simplify
ingredient lists and remove artificial colors,
Millions of people overconsume foods and while adding micronutrients where they are
beverages high in sugars, salt and fat, deficient in local populations. We are also
contributing to a rapid rise in noncommunicable committed to reducing the amount of sugars,
diseases such as type 2 diabetes and obesity. sodium and saturated fat in our products, in line
On the other hand, demand for organic products with WHO recommended intake levels.
Offering tastier and without artificial colors and flavors is growing,

as is the market for vegetarian options and We want to make a meaningful impact and to
healthier choices
healthier foods. move fast to get healthier versions of existing
products on the shelf and to the consumer.
However, we have to take the time to get it right.
If the new, healthier version doesn’t taste good,
Our commitments to offering Addressing the public health issues of consumers will simply buy a less nutritious
tastier and healthier choices under-nutrition and obesity or being alternative that better suits their tastes.
p.8 L
aunch more foods and beverages overweight at a global scale requires
that are nutritious, especially for governments, health authorities, civil
mothers-to-be, new mothers, society and the private sector to work
and infants and children
together. To that end, we use our R&D
p.9 Further decrease sugars, sodium
and saturated fat network, our expertise and our brands
p.10 Increase vegetables, fiber-rich to help address malnutrition in all its
grains, pulses, nuts and seeds in forms, creating nutritious options that
our foods and beverages are also tasty and convenient, to support
p.11 Simplify our ingredient lists and a healthy diet.
remove artificial colors
p.12 Address under-nutrition through
Our work on offering tastier and healthier choices
micronutrient fortification
contributes to the following SDGs:

issues to the UN SDGs

Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Launching more nutritious products

Our commitment: Launch more foods and beverages that are nutritious,
especially for mothers-to-be, new mothers, and infants and children.
Why it matters Making nutrition affordable Ensuring quality nutrition

Progress against our objectives
Income level should not determine for babies
Nestlé was founded on a promise
whether someone can or can not In Europe, we launched NaturNes By 2020: In both developed and
to deliver nutritious food to those
enjoy nutritious food. We’ve Bio in 2018, a new generation of developing countries, design and launch
who need it. Today, that spirit is foods and beverages that address the
launched a range of popularly baby foods that delivers better
reflected in our goal to transform daily nutritional needs and key nutritional
positioned products to enable nutrition and taste. Made with gaps of infants, children up to age 12,
our recipes, making it easy for
consumers at all income levels to organic ingredients, the NatureNes new mothers and mothers-to-be.
people around the world to
access quality food that provide range (including carrots, spinach), In progress Over 1300 new
consume healthy, affordable and
nutritional value at an affordable uses a unique steam cooking products were launched in 2018
tasty foods and beverages. addressing specific nutritional needs
price and portion size. process that helps preserve and gaps of babies, children, expecting
nutrients and flavor. Recipes take women or new mothers.
What we are doing Meeting the nutritional needs into account the right balance of
Meeting demand
of the next generation micronutrients, the quality of
In Latin America, we expanded our essential fatty acids, and for flexitarian and
In 2018, we launched over 1300
range of nutritional products potentially allergenic ingredients vegetarian diets
new nutritious products for babies,
through the acquisition of food and other ingredients that could be
children, expecting women or new The demand for plant-based
company Terrafertil. Its flagship harmful to a baby’s fragile system.
mothers. We also transformed foods is increasing. To satisfy
brand, Nature’s Heart, provides
existing products, adding more that need, we’ve created new
healthy, plant-based natural snacks Read more about product
vegetables, whole grains, milk, lean products such as Coffee-mate
that are good sources of vitamins quality and safety
proteins, and essential vitamins Natural Bliss creamers, Lean
and iron. Meanwhile, following
and minerals. By total sales, 82.5% Cuisine plant-based meal
30 years of research, Nestlé has
achieved a new scientific
of our foods and beverages now 82.5% of all options and our Garden
have Nestlé Nutritional Foundation
breakthrough to develop an infant Nestlé products, Gourmet range in Europe and
(NF) status, up from 82.1% in 2017, the Middle East.
formula containing human milk
including 93.1% of our products including 93.1% of those
oligosaccharides, which are key
consumed by children (compared consumed by children, Read more about our
components of breast milk.
with 92.5% in 2017). have achieved NF status Garden Gourmet case study

Reducing sugars, sodium and fat

Our commitment: Further decrease sugars, sodium and saturated fat.
Why it matters in public health-sensitive nutrient sugar and sweetness. We are also
reduction. In both adults and helping to change consumer tastes,
Overconsumption of sugars, children, WHO recommends offering popular ready-to-drink
By 2020: Reduce the sugars we add in
sodium and saturated fat can reducing the daily intake of free products with various sugar and our foods and beverages by 5% to
contribute to dietary and health sugars to less than 5% of total no-added sugar options. support individuals and families in
problems and to increases in energy intake (conditional meeting global recommendations*.
obesity, diabetes and recommendation). Currently, Reducing sodium in In progress 0.8% of sugar
cardiovascular disease. Reducing removed from our foods and beverages.

around 45% of our foods and our products
consumption of these nutrients can beverages provide less than 5% By 2020: Reduce the sodium we add in
Our team in the Middle East has our products by 10% to support
contribute to improving public sugars (added), enabling consumers
been gradually continuing to individuals and families in meeting global
health. So we are undertaking to use those products while meeting recommendations*.
reduce sodium in Maggi soup. We
complex reformulations of our the WHO’s strict conditional Reducing sugar in our In progress 2% of sodium
have also removed ingredients that
foods and beverages to be part of recommendation. Of the 55% chocolate drinks removed from our foods and beverages.
consumers do not easily recognize
the solution. We do this carefully, remaining, 45% are in scope of our By 2020: Complete the 10%
and increased vegetable content Nestlé Indonesia launched an
ensuring that these changes don’t sugars commitment and 10% are commitment taken in 2014, to reduce
per bowl in the Maggi 11 improved Milo chocolate malt saturated fat by 10% in all relevant
affect the taste or texture of our not relevant as their sugar content is
Vegetables Soup. We have also drink with 25% less sugar. products that do not meet the NF criteria
products, which may cause regulated; for example, as per with respect to saturated fat*.
reduced sodium in this product In Singapore, we have
consumers to switch to less CODEX. We’re committed to In progress We have achieved 7%
by 25% since 2015. introduced the first Milo
healthy alternatives. reducing the sugars in the products of this objective and we are working on
powder with no added table the remaining 3% gap.
in scope by an average of 5% by the
Implementing our saturated sugar or artificial or natural
end of 2020 while retaining the These results apply to products
*
What we are doing tastes consumers enjoy. To date, we

fat commitments sweeteners, just more natural within the scope of our commitment,
Improvements to the manufacturing goodness from malt and milk. not to our global product range as
Our commitment to reducing have already implemented a 0.8% many of our products already meet
reduction, equivalent to around process of our popular Asian noodles recommended levels.
sugars, sodium and saturated Read more about our
10 000 tonnes of sugar. successfully reduced oil content Milo case study
fatty acids by 12%–16% per serving in the
We are actively working to reduce updated products launched in 2018.
Reducing sugar content
sugars, sodium and saturated fat in Next year, with the use of a locally 10 000 tonnes of
We are gradually reducing sugar in
products that can make a significant
cocoa malt beverage products
produced, nutritionally superior oil sugar removed
impact for our consumers. By containing 80% less saturated fat,
while also offering natural from our foods
aligning our commitment to WHO the saturated fat content will be
recommendations, we are leading alternatives with significantly less
reduced even further.
and beverages since
January 1, 2017

Adding vegetables, fiber and whole grains

Our commitment: Increase vegetables, fiber-rich grains, pulses,
nuts and seeds in our foods and beverages.
Why it matters What we are doing We make every effort to ensure

that in the process of increasing
Vegetables, grains, bran, pulses, Helping individuals and the nutritional profile of our foods
By 2020: Add to our products at least
nuts and seeds are all excellent families achieve balanced diets and beverages we don’t make our 750 million portions of vegetables,
sources of fiber, vitamins, minerals products less appealing to 300 million portions of nutrient-rich
We are increasing the amount of
and nutrients. Our studies about consumers through changes to grains, pulses and bran, and more nuts
vegetables, fiber-rich grains, and seeds.
kids’ eating patterns and gaps in texture, taste or appearance.
pulses, nuts and seeds in our In progress 170 million portions
their nutrition suggest that they
recipes through product innovation of vegetables added to our foods and
don’t eat enough of these Adding vegetables and
and renovation and remain on track beverages and 484 million portions of
ingredients, impacting their promoting fresh ingredients fiber-rich grains, pulses, nuts and
to achieve our objective by 2020.
growth, development and health. seeds, versus the baseline of 2016.
By the end of 2018, we had added We have been increasing the
So we’re putting more of them in
170 million portions of vegetables
Getting more whole By 2020: In addition to whole grain
amount of non-starchy vegetables in
our recipes. We also help families
(in the culinary category) and 484 grain† from breakfast already being the main ingredient in
our recipes, especially in our our ready-to-eat breakfast cereals for
by promoting healthy cooking at cereals
million portions of fiber-rich grains, prepared meals, sauces, dressings children and teenagers, all our
home and providing nutritional Nestlé-branded cereals that carry Green
pulses, nuts and seeds versus the and condiments. Getting children to Through Cereal Partners
advice on-pack and online. Banner will be a source of fiber* and
baseline of 2016. We have also eat vegetables can be particularly Worldwide (CPW), our joint made with whole grain**.
delivered more than 25 billion challenging; we aim to help parents venture with General Mills, In progress 96% of children’s
servings of whole grains since and caregivers by including we have set whole grain or teenagers’ breakfast cereals sold
2005, when we first started adding vegetables in snacks, sauces and requirements for our have more whole grain than any
them to our products. other ingredient.
innovations such as the new line of breakfast cereals. We want
Makaron pasta mixes (Poland),
*
All products that carry 3 g or more of
cereals that are popular with fiber per 100 g on pack nutrition table.
which provide vegetables in an easy children and teenagers to
Achieved goal to add to prepare mix. contain more whole grain
**
Having a minimum of 8 g of whole
grain per serving.
484 million portions than anything else. Our
of fiber-rich foods prominent on-pack Whole
Grain Tick helps parents
to our products
easily identify Nestlé cereals
containing at least 8 g of
whole grain per serving.
Read about CPW research
into whole grains † Whole grain refers to whole, unprocessed
grains containing 100% of the original kernel,
including bran, germ and endosperm.

Simplifying ingredient lists

Our commitment: Simplify our ingredient lists and remove artificial colors.
Why it matters inspired by the regional cuisines of Focusing on natural colors

Punjab, Mumbai, Chennai and We complement this approach
Consumers increasingly expect to West Bengal, bringing local by removing artificial colors, and By 2020: Continue removing
know what is in the foods and consumer tastes and preferences other additives such as emulsifiers, unfamiliar ingredients.
beverages they buy. They want to into innovation. from our foods and beverages. In progress We’re transforming
be able to recognize the ingredients our culinary products by simplifying
During 2018, the volume of in-scope
listed on the label for a variety of Supported by a network of nutrition recipes and replacing ingredients that
artificial colors we purchased fell consumers don’t easily recognize.
reasons, such as ensuring that the experts, we are working to find by 13.2%.
content is nutritious, that it fits a suitable replacements for the By 2020: Remove all artificial colors
lifestyle or health concern, or that from our products*.
ingredients we plan to phase out We are also working with markets In progress 13.2% decrease
it is sustainably manufactured. over the next couple of years. We and business units around the in artificial colors (based on
This means providing simple, clear have already started researching tonnage purchased).
world to overcome the challenges
information about our products, options, both within our own R&D of changing the remaining artificial *
This objective does not currently
and removing unfamiliar and manufacturing operations and apply to our pet food products.
colorant compounds in our
ingredients from our recipes. in collaboration with suppliers. formulations, such as the difficulty
in matching the brilliance or hue of Ruby chocolate comes
Measuring our progress to the UK
What we are doing artificial colors and the higher cost
We have set up a system that of some non-artificial colors.
Developed in collaboration
A move toward ‘kitchen enables us to track the change in
with Swiss chocolatier Barry
cupboard’ ingredients weight of ingredients we use in our
Callebaut, our new Ruby
Through the Maggi Simply Good recipes and those ingredient names
chocolate KitKat
initiative, we’re transforming our that are disliked or not understood
demonstrates Nestlé’s
by consumers. Along with this,
culinary products by simplifying 13.2% decrease commitment to developing
recipes, and replacing ingredients we collect information on concrete
in artificial colors new, innovative products
that consumers don’t easily cases in which ‘unfamiliar’
without the use of
recognize with more familiar ingredients have been or are being
artificial ingredients.
alternatives, such as vegetables, removed from our recipes. These
herbs and spices. Nestlé India’s case stories are communicated Read more about our Ruby
recent Maggi Masalas of India through this and other publications chocolate case study
noodle range, for example, was to illustrate the extent of our work.

Micronutrient fortification
Our commitment: Address under-nutrition through micronutrient fortification.
Why it matters daily allowance of the respective companies assessed by the

micronutrients, helping reduce the 2018 Access to Nutrition Index™
About a third of the world’s risk of wide-scale deficiencies. In (ATNI) in the category of
By 2020: Reach millions of children
population suffers from India, where the latest National Addressing Undernutrition. and families with fortified foods
deficiencies in essential vitamins Family Health Survey showed 53% and beverages.
and minerals (Global Nutrition of women and 22.7% of men have Supporting collective action In progress 106 million children
Report), leading to impaired iron deficiency, 2 billion servings on addressing nutritional gaps and families reached with fortified
growth, physical and intellectual foods and beverages.
of our Maggi iron-fortified Masala
In 2018, we participated in 10
development and compromised noodles were sold in 2018. This By 2020: Initiate or support collective
initiatives, both global and local in action to reduce micronutrient
immunity. Such impacts will cost was the first full year since the
nature, to reduce micronutrient deficiencies in 10 countries.
society an estimated USD 2.1 trillion product was launched to help
deficiencies, including: In progress In 2018, we
(CHF 2.12 trillion) every year by reduce the deficiency level. In India participated in 10 initiatives, both
2025 (ATNF). In response, we and Pakistan, our fortified cereal • Organizing an awareness-raising global and local in nature, to reduce
fortify popular foods and beverages for infants, Cerelac, is our most event with GAIN, Cargill, the micronutrient deficiencies.
with micronutrients that are effective product for reducing International Federation for Supporting Egypt’s By 2020: Continue to develop the supply
unavailable or deficient in local Spina Bifida and Hydrocephalus, chain for biofortified crops and expand
deficiency levels. battle against anemia our fortified portfolio.
diets, focusing on children and Harvest Plus and the
In progress We are prepared to
families in developing and high- We delivered 184.7 billion servings Government of Sudan to discuss With the world’s second-
buy at least 1000 tonnes of biofortified
priority countries. of fortified foods and beverages possible solutions at the UN highest prevalence of iron maize from Nigeria a year, and are
incorporating at least one of the Committee on World Food deficiency anemia (IDA) always seeking new collaborations to
costing the nation billions of build the supply chain.
Big 4 micronutrients (iron, iodine, Security hosted by the Food and
What we are doing vitamin A and zinc) in 64 countries Agricultural Organization (FAO). dollars, Egypt’s new 2030
with higher vulnerability to Vision understandably
Making fortified foods • Developing an advocacy toolkit to
micronutrient malnutrition in 2018. includes a focus on better
and beverages accessible help our markets bring fortification health and nutrition. Can a By the end of 2018,
Of our popularly positioned
and affordable up the political agenda. multichannel campaign to our fortified foods and
products for lower-income
To ensure our efforts reach people consumers, 83.9% were also • In our Central and West African reach 10 million people over beverages had reached
on lower incomes, we fortify market, sharing our expertise in the next five years help to
affordable products like Maggi
fortified with at least one of the Big 106 million children
4 (as defined by the WHO). As a bouillon fortification at the halve IDA levels by 2030?
condiments and noodles, cereals Bouillon Summit organized by the
and families
result of our global efforts, we
and children’s milks. We include at ranked second out of the 18 largest Bill and Melinda Gates Foundation Read more about our in eight countries
least 15% of the recommended food and beverage manufacturing and Helen Keller International. Egypt case study

Why it matters Our contribution

The link between noncommunicable diseases In line with the UN SDGs covering zero hunger,
and malnutrition in all its forms is well- good health and reduced inequality, we’re
established. More than 1.9 billion adults are helping individuals and families throughout their
overweight, and 41 million children are lives, from conception to old age. We work with
overweight or obese, raising the risk of dying our many partners around the world to promote
from heart disease, stroke, diabetes and some balanced diets, age-appropriate portions and
cancers (WHO). At the same time, around home cooking. We provide clear nutritional
45% of deaths of children aged under 5 are information and easily understandable guidance
linked to under-nutrition. on-pack and in our marketing communications.
Through our brands, we promote activities and
For many of us, finding the time to eat well isn’t sports programs that inspire people – especially
always easy. People increasingly consume food children – to eat well and exercise more.
on the go or prepare convenience meals. Even
when people do try to eat healthily, they are In 2017, we achieved the objectives we set out in
faced with conflicting nutritional advice and our commitment to market to children only
Inspiring people to lead confusing labels. choices that help them achieve a nutritious diet.
This commitment is now embedded through a
healthier lives
new policy on marketing to children in 2018.
Our commitments to inspiring Malnutrition comes in many forms:

people to lead healthier lives under-nutrition, obesity or being Launching organic versions of family-
p.14 Apply and explain nutrition information overweight, and micronutrient favorite breakfast cereals
on packs, at point-of-sale and online deficiencies. Combating malnutrition
We want to make it easier for individuals and
p.15 Offer guidance on portions for remains one of the greatest global
our products families to make healthy choices with the
health challenges. We work with many
p.16 Leverage our marketing efforts to brands they love. In September 2018, we
promote healthy cooking, eating partners around the world to encourage launched organic versions of family-favorite
and lifestyles balanced diets, healthy hydration and Nestlé breakfast cereal brands Chocapic,
p.17 Empower parents, caregivers and active lifestyles. Nesquik and Cheerios.
teachers to foster healthy behaviors
in children
p.18 Support breastfeeding and protect The range is made with the same high-quality
it by continuing to implement an ingredients you would expect from a Nestlé
Our work on inspiring people to lead healthier lives
industry-leading policy to market breakfast cereal, and officially certified
breast-milk substitutes responsibly
organic. Similar to their conventional versions,
p.19 Inspire people to choose water to
the new organic varieties contain whole grain
lead healthier lives
as the number one ingredient and are free
p.20 Partner for promoting healthy food
environments
How we map our material from artificial colors and preservatives.

Providing nutritional information

Our commitment: Apply and explain nutrition information on packs,
at point-of-sale and online.
Why it matters permitted by national regulations. Improving and extending

This outlines the nutritional additional information online
We have a responsibility to composition of a typical serving by
Consumers are demanding more By 2020: Continue providing detailed
communicate about our foods displaying the contribution of the
nutritional information, but with product nutrition facts with daily value
and beverages, including the product to someone’s daily intake. percentages, ingredients and allergens,
limited space on-pack we remain
ingredients they contain and their and add special diet information, nutrition
committed to providing that detail labeling explanations and healthy eating
nutritional value, in an easy-to- We continue to provide relevant
through corporate websites, brand tips on all our relevant packs, as well as on
understand way so that consumers nutrition information on the back our websites and e-retailer sites, to better
sites and/or e-commerce
can make informed choices. of our product packaging, using enable informed choices.
platforms. We are currently
With the growing use and our Nestlé Nutritional Compass®. In progress 87.3% of our relevant
reviewing the main online
capabilities of mobile devices, This provides a standardized products have GDA-based labels
platforms for providing nutrition and 95.6% of our products sold
we’re able to share more nutritional table and tips on how
information and reshaping our worldwide display the Nestlé
information online and aren’t the product fits into a healthy Nutritional Compass®.
initiatives and will report on
limited by the space available on lifestyle. The Nestlé Nutritional 73.7% of relevant foods and
progress in future reports.
our packaging. Compass is displayed on 95.6% beverages designed for children
of our sales. Providing online carry GDA-based labels.
information
What we are doing We continue to engage with health 73.7% of relevant We liaise with governments
Empowering consumers authorities, stakeholders and the
food and beverage industry to
foods and beverages and industry associations
through clear labeling on-pack designed for children to improve the availability
evaluate new labeling approaches
To help individuals and families of nutrition information to
that could harmonize labeling carry GDA-based labels
make informed choices about our consumers. In the United
foods and beverages, we provide
schemes between different (based on children’s States, Nestlé has joined the
countries while complying with all
clear, science-based nutritional reference values) SmartLabel® transparency
regulatory requirements. We have
information on-pack. We display initiative, providing online
also joined voluntary initiatives
guideline daily amounts (GDAs) on information about nutrition,
locally, such as the ones in the UK
front-of-pack on 87.3% of our ingredients and allergens
and Australia.
relevant products, wherever for around 87% of its
applicable portfolio.
Read the full story

Offering portion guidance

Our commitment: Offer guidance on portions for our products.
Why it matters With clear information on-pack,

Nestlé Portion Guidance also helps
Around the world, expanding consumers consider appropriate
By 2020: Continue providing guidance
portion sizes are contributing to portion sizes when consuming our on portions globally on all children’s
imbalanced eating habits and foods and beverages. With an and family product packs, and add
leading to adverse health engaging and intuitive way of frequency of consumption indications
outcomes. Conversely, smaller on relevant products.
providing guidance through
In progress 65.4% of our
portions of vegetables, whole portions, we aim to help individuals children’s and family product packs
grains and milk cannot deliver the and families understand the provide Nestlé Portion Guidance™.
required levels of daily nutrition. nutritional value of our foods and By 2020: Extend our guidance on
As the largest global food beverages by redefining their portions to our consumer recipes, and
manufacturer, we have a unique portion habits. relevant teenager and adult products.
opportunity to help guide In progress We work with dietitians
individuals and families to pursue a Physical and online guidance in the US to help them better engage
with their communities on portion
healthy diet through informed on serving sizes guidance and consumer recipes.
choices and our Nestlé Portion
Nestlé Portion Guidance is made By 2020: Gradually increase the proportion
Guidance™ initiative. Using our products to make a difference of guidance on portions provided through
available in a variety of ways,
product form, pack design, serving device
through product form, pack design, Through our Nestlé Portion Guidance™ initiative, we encourage or dispenser to make it even more intuitive
What we are doing website content illustrations and, age-appropriate portion sizes on our products and packs. This helps than on-pack messaging.
when possible, a serving device or equip consumers when they plan, buy, prepare and serve products. In progress 12.2% of our
On-pack information about dispensing machine. We also aim Our recipe websites share this guidance with home cooks and children’s and family portfolio provide
appropriate portions to make our recipe sites more people seeking more detailed information – such as Nestlé France’s
Nestlé Portion Guidance through
product form and 12.6% do so through
Based on dietary recommendations accessible, searchable and user Croquons La Vie website, which, using colorful visuals, allows pack design.
from leading organizations such friendly by displaying portion consumers to compose balanced meals with recipes and portion
as the WHO, as well as scientists, information. Of our children’s and sizes adapted to their needs.
policymakers and health family products, 65.4% provide 65.4% of our children’s
practitioners, Nestlé Portion Nestlé Portion Guidance, with Read the full story
and family products
Guidance is designed to encourage 12.2% through product form and provide Nestlé
age-appropriate portion sizes. 12.6% through pack design. The
figures related to extending our
Portion Guidance
It helps redefine portions,
particularly for energy-dense guidance on portions to relevant
foods and beverages. teenager and adult products will
be reported by 2020.

Marketing healthy choices

Our commitment: Leverage our marketing efforts to promote
healthy cooking, eating and lifestyles.
Why it matters What we are doing Progress against our objectives

We interact with billions of Through Nestlé for Healthier Kids,
By 2020: Double the outreach of our
individuals and families every day, we’re focusing on delivering
efforts to promote healthy cooking and
with our products, services and communication, information and eating and healthy lifestyles for
communications. We want to put knowledge to parents and individuals, families and their pets.
our expertise and global reach to caregivers around good nutrition. In progress In 2018, we increased
good use, inspiring consumers to Our Maggi brand provides recipes the amount of marketing expenditure
on healthier categories by 30%
cook at home, eat a balanced diet promoting the use of vegetables (compared to 2016), to promote
and exercise more. and other fresh ingredients in healthier cooking, eating and lifestyles
healthy, tasty, balanced home- among individuals and families.
We want all children to have a cooked meals. In Thailand, we
healthy start in life. That is why we have launched cooking clubs that
follow strict standards regarding provide advice, mostly online, on
advertising and marketing and do not preparing balanced meals; and in
market to children under 6 years of Australia, Maggi aims to make
age. We only market foods and weeknight cooking achievable
beverages to older children (aged through its marketplace line of
6–12) that are part of a nutritious and stir-fry mixes.
balanced diet. These products must
Maggi promotes healthy home cooking in new
meet strict nutrition criteria under our We are also focusing activities on
Policy on Marketing Communication breakfast foods. In many cases, online series
to Children. children are not eating healthy Aligned with one of its Simply Good commitments – to raise awareness
breakfasts or are skipping breakfast and contribute to people’s knowledge of healthy lifestyles, cooking
altogether. We know the importance and nutrition – Maggi has launched a new online series, Yelo Pèppè.
of a nutritional breakfast, and that an This 13-week nutrition education series celebrates contemporary
on-the-go solution is better than no African cuisine and highlights the many challenges that modern
breakfast at all. So, in the US market, families face in trying to balance healthy diets and the demands of
we have launched ready-to-drink modern life. The weekly program, available on Maggi’s YouTube
breakfast beverages to provide the channel, also allows viewers to access recipes and nutrition tips.
essential nutrients kids need, such
Read the full story
as Nesquik SuperBreakfast protein
breakfast milk drink for kids.

Promoting healthy behaviors in children

Our commitment: Empower parents, caregivers and teachers
to foster healthy behaviors in children.
Why it matters ambition to help 50 million children

lead healthier lives by 2030.
Today, around 41 million children
By 2018: Maintain existing Nestlé
under 5 years of age are considered Supporting parents and Healthy Kids Global Programs, while
overweight or obese, and 155 million caregivers in the first 1000 measuring their impact on children based
are stunted due to under-nutrition. on five globally defined goals: eat
days of life nutritious and diverse meals, manage
Adopting good nutrition practices
from an early age gives children a Nestlé Start Healthy Stay Healthy portions, choose water, play and be
active, and maintain good hygiene habits.
better chance of growing up fit and provides science-based nutrition
In progress 9.6 million parents in
well. We use public health data and services to parents and caregivers in
over 50 countries are currently
our own research to inform our the critical first 1000 days from registered with Nestlé Start Healthy
products and services; in turn, these conception to a child’s second Stay Healthy.
give parents, caregivers and birthday. Our services, mainly online, By 2020: Support 50 million children
teachers the tools and advice they include an engaging e-learning through our nutrition education and
course that turns the latest scientific behavior change programs, an important
need to keep kids active and healthy. milestone toward our wider 2030 ambition.
findings into simple, practical
In progress 29 million children
feeding advice. There are currently reached by Nestlé for Healthier Kids
What we are doing 9.6 million parents in over 50 programs in 86 countries around
countries registered with Nestlé the world.
Combining our actions into Start Healthy Stay Healthy.
one flagship initiative
We also develop innovative foods
Fostering healthy habits in Russia
Nestlé for Healthier Kids brings
together all our efforts that support and beverages to meet the key Seven-year-old Mikhail, from Moscow, is one of 8 million children 29 million children
parents, caregivers and teachers, nutritional needs of mothers-to-be, to benefit from Nestlé Russia’s award-winning Good Nutrition reached by
ranging from product reformulation new mothers and children, as well program since the project’s inception. Running for nearly two
as more sustainable foods. Our decades, the initiative complements the school curriculum with
Nestlé for Healthier Kids
to education and lifestyle services.
This program now encompasses a Completely Gerber range of baby 120 hours of additional nutrition education, provided over three programs globally
range of our key initiatives foods in North America is being years. Using materials created in partnership with the Institute
including Nestlé Start Healthy Stay relaunched with increased of Developmental Physiology, one of the teachers involved, Read more about Nestlé
Healthy, Choose Water and our vegetable and grain content and Irina Viktorovna Kazarina, promotes the six habits defined by for Healthier Kids
Good Nutrition program to name a organic options; and in Europe we the Nestlé for Healthier Kids global program.
few. Launched in May 2018, Nestlé have launched NaturNes Bio, a
Read the full story
for Healthier Kids is present in 86 range of baby foods using
countries and supports our organic ingredients.

Supporting breastfeeding
Our commitment: Support breastfeeding and protect it by continuing to
implement an industry-leading policy to market breast-milk substitutes responsibly.
Why it matters We foster breastfeeding-friendly External recognition By 2018: Ensure that all provisions
workplaces through our Maternity for our efforts supporting breastfeeding in our Maternity
The nutrition mothers and babies Protection Policy. We also support Protection Policy are implemented.
Nestlé has been consistently listed
receive during the first 1000 days of the efforts of the UN-backed Every Achieved We have implemented
in the FTSE4Good responsible
life is critical for a baby’s growth and Woman Every Child movement to our Maternity Protection Policy across
investment index since 2011. In May all our markets.
development. Studies have found promote breastfeeding. We have
2018, we remained in the top two in
that the period from conception set up breastfeeding rooms on our By 2020: Advocate for a breastfeeding-
the breast-milk substitute (BMS) friendly environment by supporting the
through pregnancy and up to a premises with more than 50 female
sub-index of the Access to Nutrition set-up of breastfeeding rooms in
child’s second birthday can help employees (425 sites). We have communities where we operate.
Index™ (ATNI). Nestlé’s FTSE4Good
shape our children’s future eating also installed 5437 breastfeeding In progress 5437 breastfeeding
membership was also confirmed
habits. That’s why we support the rooms for public use in India, rooms for public use installed in India,
again, following the June 2018
WHO’s recommendation to Bangladesh and China.
Bangladesh and China.
index review. We appreciate the
exclusively breastfeed infants for Ongoing: Ensure that the practices of the
recognition from independent third Reaching out to mothers Nutrition business consistently meet the
the first six months of life, followed Supporting World
by the introduction of adequate
parties, as this helps us build around the world FTSE4Good Index Breast Milk
Breastfeeding Week transparency in our processes. Substitutes criteria.
nutritious complementary foods, To celebrate World In progress Nestlé’s FTSE4Good
along with sustained breastfeeding We engaged thousands of
Read more about BMS Breastfeeding Week in membership was also confirmed
up to two years and beyond. healthcare professionals through compliance record Link again, following the June 2018
August 2018, we embarked
conferences, workshops and index review.
on a series of campaigns
partnerships with hospitals to Ongoing: Continue to strengthen our
around the world – both to
What we are doing reach an estimated 75 million 5883 Nestlé raise awareness about the
policy and procedures to maintain
industry leadership on the
people during World Breastfeeding
Promoting breastfeeding Nutrition employees issue and to make our implementation of the WHO Code.
Week this year. In Egypt, we
involved in marketing company a friendlier place In progress 28 countries audited
at Nestlé and beyond organized an online educational
for breastfeeding mothers. (internally and externally) against the
We promote the benefits of session on the country’s most breast-milk substitutes Nestlé Policy and Procedures for
From Ecuador to Egypt and
breastfeeding through dedicated popular forum for women, while completed training on the from Mexico to Poland, our
Implementation of the WHO
International Code of Marketing of
campaigns for World Breastfeeding our media campaigns reached WHO Code in 2018 multimedia campaign Breast-milk Substitutes.
Week. This includes an online 2.5 million people in Poland and
reached millions of mothers Ongoing: Continue to report publicly on
platform where parents can find 3 million in Ecuador.
globally, raising awareness our progress on the implementation of
tips, advice and information on of breastfeeding. our policy on the WHO Code.
breastfeeding and how to support In progress 5883 Nestlé Nutrition
their baby in the 1000 days from Read the full story employees completed training on
breastfeeding and the WHO Code.
conception to their second birthday.

Encouraging healthy hydration

Our commitment: Inspire people to choose water to lead healthier lives.
Why it matters Boosting healthy

hydration in Mexico
Alongside what you eat and how
In Mexico, we’ve partnered with By 2018: Release with partners an
active you are, what you drink is
the Ministry of Health to promote open-access platform offering global
equally important when it comes to statistics on people’s drinking habits.
a range of initiatives, including
a healthy lifestyle. We recommend Achieved The platform in our
encouraging healthy habits in
water as the best choice for daily 2018 objective has been completed
medical students and media events and will be shared in 2019.
hydration, whether it comes from
informing the public about healthy
a tap or bottle. By 2020: Launch national campaigns
hydration. We also celebrated promoting healthy hydration with public
National Family Hydration Month and private partners in 10 countries.
What we are doing in July, with events engaging In progress We’re working
together with partners around the
approximately 80 000 people to
We are collaborating with scientific world, including in the US and Mexico.
help them understand the benefits 72 countries implemented a ‘Choose
organizations and other partners to of drinking more water. water’ module in their local Nestlé for
analyze adults’ and children’s Healthier Kids programs with local
hydration patterns in several Encouraging US families to
partners in 2018.
countries. We have carried out choose water
polls, surveys and a peer-reviewed
study, the results of which will be In May 2018, Nestlé Waters North
released in 2019. Our goal is to America and World Wrestling
obtain robust insights in order to Entertainment launched the Choose
conduct campaigns that raise Water campaign, encouraging 80 000 people
consumers to live a healthy lifestyle.
public awareness of the role of participated in Mexico’s
hydration in healthier communities. The campaign provides an Teaching the benefits of healthy hydration
opportunity to utilize WWE’s global National Family
A digital platform will enable data It’s important that people discover hydration and other healthy
to be publicly and easily available digital and social platforms Hydration Month events
featuring WWE superstars to habits at an early age. In Argentina, we’re delivering a digital,
for consultation. interactive program to primary school children to engage them on
spread awareness about the
benefits of water to US families. these topics and provide valuable lessons for their futures.
Read the full story
Read more about Nestlé
for Healthier Kids

Health-promoting food environments

Our commitment: Partner for promoting healthy food environments.
Why it matters providing shopping tips for a Rica, France, Japan, Turkey, the UK
‘healthy basket.’ Our commitment and the US focused on healthier
Awareness of the role nutrition is now integrated into our new baskets (informing consumers
By 2020: Partner with retailers and food
plays in good health is growing commercial framework to make about how to choose healthier professionals to foster environments that
across geographies. Now more nutrition, health and wellness options when shopping), healthy promote healthier diets and lifestyles.
than ever, people are looking for commercial activities part of our aging and shopper behavior. The In progress We have engaged
health benefits in their food daily operations. This includes result was an increase in the sales with 70 000 individuals across
choices. At the same time, public the food industry to promote
working with our commercial of healthier options. nutritional knowledge.
health authorities are multiplying teams in our markets on sharing
campaigns to raise awareness of best practice and practical ways In Colombia, participating stores Helping aspiring chefs
the importance of good nutrition to engage customers to make reported an increase in the number learn online
and healthy living, and the healthier choices. of healthier baskets purchased by
importance of prevention. We customers. We found similar In July 2018, we launched a
believe that Nestlé and the entire results in participating stores new free online academy to
Collaboration for Healthier Lives
food and beverage industry have across Turkey, Japan and the US, help aspiring chefs take the
In 2018, we extended our first step toward a culinary
a role to play to help people lead indicating that healthier purchases
participation in the Consumer career. The Worldchefs
healthier lives. also benefit businesses, as well as
Goods Forum’s (CGF) Collaboration Academy, an online portal
for Healthier Lives (CHL) flagship the consumer.
and mobile app, caters to
What we are doing global program. The CHL aims to students who may not have
change consumer behavior by the means, mobility or
Promoting healthy food promoting healthier options. In flexibility to attend full-time
environments partnership with 19 leading retailers culinary school. The program
Whether online or in-store, there and 45 food and beverage, personal links to the Worldchefs
are many ways to create healthy care, hygiene and cosmetics We have engaged with certification and is intended
manufacturers, we promoted
food environments that increase
healthy eating and physical activities
70 000 individuals to be the first step on the
opportunities for purchasing culinary career path. The
in-store and online, for customers across the food
nutritious foods and beverages. online course comprises two
These can range from promotions, and store employees. A series of industry to promote modules and 27 lessons, and
to arranging shelf displays, to in-store activities in Colombia, Costa nutritional knowledge is free to everyone.
Read the full story

Why it matters We use the findings from our long-term studies

into the eating habits of infants and children, for
Some conditions, like obesity, type 2 diabetes instance, as well as collaborations with leading
and Alzheimer’s, have common physiological universities, research organizations and
factors that can be affected by, but also start-ups, to improve our products and services.
addressed through, nutrition. Food-related In 2018, we invested CHF 1.7 billion in our
allergies and intolerances are also increasingly research activities.
common. By building and sharing nutrition
knowledge, we can help more people live We also share our findings to further the cause
longer, healthier lives. of addressing some of today’s key nutrition
challenges. In 2018, the Nestlé Nutrition
Institute (NNI) shared our learning with health
Our contribution professionals, scientists and nutrition
We’re constantly looking to learn more about communities through 54 articles in 10 NNI
how nutrition, combined with active lifestyles, publications and 86 conference presentations.
can support health across all generations.
Building, sharing and

applying nutrition How meal replacement programs could be
part of the solution to obesity
knowledge In a world where obesity and diabetes are at epidemic
levels, we trialed the Optifast meal replacement program
Our commitments to “You are what you eat,” or so the to see if it was more effective at producing meaningful
saying goes. With a network of weight loss than a standard food-based diet and lifestyle
building, sharing and
program. The results were hugely encouraging:
applying nutrition knowledge research centers spanning the
compared to those on a food-based diet, participants in
p.22 Build and share nutrition knowledge
globe, our scientists are discovering
the Optifast program lost twice as much weight and had
from the first 1000 days through to more about the human body and
greater improvement in blood sugar levels.
healthy aging the role food plays in overall health.
p.23 Build biomedical science leading
to health-promoting products, The study started in February 2016, and we started
personalized nutrition and sharing our results with the scientific community and
digital solutions healthcare professionals in 2018. We presented our
findings at several scientific congresses, including the
Our work on building, sharing and applying nutrition
knowledge contributes to the following SDGs: European Congress on Obesity in May, the American
Diabetes Association in June and ObesityWeek in
November. The Optiwin study was published in the
journal Obesity in November.
issues to the UN SDGs Read the full story

Sharing nutrition knowledge throughout life

Our commitment: Build and share nutrition knowledge from the first
1000 days through to healthy aging.
Why it matters learning through 54 articles and by 98.2% of participants, the IPPN
86 conference presentations. by 98% and for ENS, 97.1% rated
What we eat and drink as young strongly agree to agree about their
By 2020: Build knowledge on the
children provides a foundation for Our collaborations with a number of satisfaction with the course. associations between nutrition and
our future lives, but our nutritional international universities to help lifestyle, and biomarkers of health in
needs change as we grow older. create and disseminate pediatric Researching ways to improve mothers and children through the
That’s why we devote ourselves to EpiGen collaboration.
nutrition-specific programs, include: mothers’ and infants’ health In progress In Italy and Mexico,
studying the links between
• Postgraduate Program in Pediatric We have been working with the we have launched G-Balance, a new
nutrition and health at various nutritional solution for the
Nutrition (PGPN), Boston EpiGen Global Research Supporting
stages of life: from expectant maintenance of myo-inositol and
University School of Medicine, US. Consortium on a study called
mothers, babies and children all the healthy aging probiotics for pregnant women.
NiPPeR to establish whether
way through to healthy aging. • International Program for By 2020: Build further knowledge on
specific combinations of nutrients It is estimated that more than dietary intake, eating behaviors and
Preterm Nutrition (IPPN), one in three adults aged over
and probiotics can improve the lifestyles in infants and children.
University of Western Australia.
What we are doing health of mothers and babies. 50 are not receiving their In progress As part of our FITS
• Early Nutrition Specialist (ENS) In 2018, we completed the minimum daily protein KNHS study, we carried out research
Contributing to the knowledge Program, Ludwig Maximilian preconception phase and extended requirements. To support the into the diets of children in the
Philippines to help understand any
of healthcare professionals University, Germany. the follow-up work on infants. In growing population of people nutritional gaps there might be – and
The Nestlé Nutrition Institute (NNI) Italy and Mexico, we have over 50, Nestlé Health how we can address them.
is a not-for-profit that shares These programs offer unique launched G-Balance, a new Science BOOST has launched 2020: Develop a deeper understanding of
science-based information and opportunities to strengthen nutritional solution for the a multimedia protein dietary intake, preferences and lifestyle
education campaign aimed at habits during aging.
education with health healthcare professionals’ maintenance of myo-inositol and
In progress Nestlé Health Science
professionals, scientists and knowledge and practice in probiotics for pregnant women. consumers, retailers and
used its BOOST brand to launch a
nutrition communities around the pediatric nutrition by familiarizing healthcare professionals, multimedia protein education campaign
Read more about Nestlé including online facts, tips and
world. In 2018, our global website them with evidence-based for Healthier Kids
on healthy aging aimed at consumers,
and 16 local websites reached guidelines and recommendations. articles, an interactive protein retailers and healthcare professionals.
338 435 registered members across calculator, a toolkit for

196 countries. We hosted two In 2018, these three programs healthcare professionals and 7700 healthcare
offered more than 7700 healthcare retail promotional tie-ins with
global workshops on ‘what children
healthy aging themes.
professionals have
eat,’ which reached 14 141 people professionals in 82 countries, with
over 90% completing the courses.
benefited from our
via a webcast, and nutrition
education, as well as seven Feedback was very positive: the
Read the full story
collaborative programs
symposia. We also shared our PGPN was rated excellent to good with universities

Enhancing biomedical science

Our commitment: Build biomedical science leading to health-promoting
products, personalized nutrition and digital solutions.
Why it matters important discovery into a key about our protein substitutes, Our VIA online platform Progress against our objectives
mechanism of action of the most facts and tips, an interactive
People are living longer, and often
helps more than 350
common drug for lowering protein calculator tool, a toolkit for
with less support from healthcare blood-sugar levels. Published in HCPs, promotional material for healthcare professionals By 2020: Develop digital nutrition profiling
for calculating nutrient intakes, as well as
systems. Through biomedical the prestigious journal Nature stores and a series of articles. support their patients for making recommendations for
science, we aim to understand, Medicine, the study was carried nutritional balance, into a comprehensive
treat and help prevent disease tool to assist individuals and families to
out by Nestlé research scientists lead happier and healthier lives.
throughout life. We are advancing and academics from Vanderbilt In progress We are developing
the therapeutic role of nutrition, and University in the US and Aarhus several products that can help treat
also exploring the roles of genetics, University in Denmark. disease or act as therapies, from
family history, environment and protein substitutes to organic
lifestyle as nutrition becomes tube-feeding formulas.
Making additional resources
increasingly personalized. available online
By 2020: Develop new interventional
nutritional solutions driven by studies and
To help healthcare professionals diagnostic profiling. These programs will
focus on key areas such as metabolism,
What we are doing (HCPs) support their patients, an gastrointestinal and brain health, healthy
enhanced VIA (Vitaflo in aging, skin health and pets.
Using technology to spread Association) online platform was In progress We continue to
nutrition knowledge in China launched in 2018. The site gives advance the therapeutic role of
We’re partnering with tech more than 350 registered users Helping tomorrow’s scientists transition to nutrition, and are also exploring the
roles of genetics, family history,
powerhouse Xiaomi to promote access to videos, case studies, professional life environment and lifestyle as nutrition
healthier living in China. product guidelines and a becomes increasingly personalized.
Nestlé Research has signed a five-year agreement with the
By combining our expertise recording of our first webinar,
University of Lausanne in Switzerland to enable students to apply for
in nutrition science with the held in July 2018. A new Twitter
doctoral training positions at Nestlé. This will enable them to carry
convenience and reach of Xiaomi’s account (@VitafloRDs) has also
out research projects leading to the award of a PhD or MD–PhD
MIUI operating system, we aim to been set up and boasts over 500
degree from the university, and will enhance our ability to develop
help China’s over 50s improve their followers to date.
the next generation by supporting emerging talent. Participating
diets – a crucial demographic in a students will have the opportunity to gain high-quality research
country that is aging fast. BOOST US also educates
experience in an interdisciplinary environment, working with
consumers, retailers and HCPs
state-of-the-art facilities and professional guidance.
Helping treatment for diabetes about the role dietary protein
plays in supporting healthy aging Read the full story
In partnership with leading
online. Topics include details
academics, our scientists made an

For our
communities
Helping develop thriving, resilient communities
2030 Ambition To improve 30 million livelihoods in communities directly connected to

our business activities.
Across our business we work with Nestlé needs YOUth aims to • Entrepreneurship – supporting
suppliers, partners and farmers equip the next generation for young people to be innovative
globally. With the growing employment and support them and creative through initiatives
demand for food, and challenges to become inspiring leaders in such as Nestlé Professional’s
to farming, we strive to support our company, successful My own business scheme.
rural development, promote and agripreneurs, entrepreneurs and
• Innovation – especially through
respect human rights, and game-changers, regardless of
our interactions with young
guarantee decent employment their field or level of expertise.
people and our Facebook page,
and diversity. Our programs, It does this through:
and by stimulating innovative
initiatives and commitments to
thinking and leveraging
achieve these aims are designed • Creating employment and
resources.
to build stronger communities and training opportunities for
a secure, long-term supply chain. youth at Nestlé – through Read more online
hiring young people, providing
Global Youth Initiative: their first work experiences,
Nestlé needs YOUth apprenticeships and training
opportunities, and helping The Global Youth
Around the world, youth
unemployment is a serious issue
equip today’s youth with the Initiative aims to help
skills they will need in 10 million young
and a contributor to global
tomorrow’s workplace.
poverty. As a major employer, people worldwide
we recognize the role we can • Agripreneurship – our program access economic
play to tackle this. Nestlé needs for preparing the next generation
YOUth is one of our flagship
opportunities by 2030
of farmers by developing young
initiatives, directly supporting people’s agricultural and
our ambitions and commitments business skills and making
to help young people. farming an attractive and viable
career option.

Why it matters • Farmer diets, to ensure farmers and their

families are healthy and have access to the
While the world needs more food than ever, nutrition they need.
consumers also increasingly want to know
how and where their food is produced. At the • Responsible sourcing, ensuring our supplies
same time, factors such as climate change, of raw ingredients are sourced in a way that
poor farming practices, diseased plants, a lack meets our Responsible Sourcing Standard
of empowerment for women, water scarcity and the growing demand from consumers
and an aging farming population all put pressure for ethical sourcing.
on farmers.
To address these areas, we now focus
Many farmers, their families and their increasingly on impact by using our Theory of
communities survive on low incomes. As a result, Change (ToC), which we have developed for
fewer young people view farming as a viable some of the categories of raw materials we buy.
livelihood, choosing instead to move to urban This allows Nestlé to focus our activity where it
areas to find employment. This presents a matters most and measure our impact at a
challenge that jeopardizes future supplies of the global level. The ToC model identifies desired
Enhancing rural raw materials we use. long-term goals, then works back to determine
what conditions must be in place for the goals to
be reached.
development and Our contribution

Our experience and scale as a global food
Initially, this impact-centered approach has
livelihoods
been implemented in our Farmer Connect
producer enable us to make a difference by coffee supply chain. Where we source directly,
supporting rural development and economic Farmer Connect is our longstanding program to
growth throughout our supply chains. Working support local farmers to thrive in their
Our commitments to As demand for food rises, agriculture closely with farmers, their communities and communities. ToC methodology has enabled us
enhancing rural development faces many challenges. By understanding expert organizations, we look to identify the root to better support farmers by targeting specific
and livelihoods those challenges, identifying solutions causes of challenges farmers face, and develop needs where we can deliver the biggest impact
and measuring our impact, we aim to solutions to help them improve their practices, across our supply chain.
p.26 Improve farm economics among
increase their productivity and income, and make
the farmers who supply us improve farmers’ livelihoods, making
farming a more attractive sector. We do this
p.27 Improve food availability and dietary farming more attractive and ensuring
diversity among the farmers who across four key areas:
supply us
our long-term supply needs are met.
• Assessing farmers’ needs, to ensure we
p.28 Implement responsible sourcing Our work on rural development contributes
in our supply chain and promote to the following SDGs: address the right issues.
animal welfare
• Farm economics, to help make farms and
p.29 Continuously improve our green
coffee supply chain farming economically viable and attractive for
p.30 Roll out the Nestlé Cocoa Plan
the next generation.
with cocoa farmers


Delivering impact through Farmer Connect

Our commitment: Improve farm economics among the farmers who supply us.
Why it matters Nestlé works directly with 716 000 Our model for impact • Allocate resources and prioritize
farmers around the world through The five stages of ToC are to: activities to do the most good.
Our work to improve farm Farmer Connect, which enables us
economics is delivered through • Identify and prioritize issues • Communicate our impact on By 2020: Improve farm economics in
to develop supply chains that meet seven priority sourcing locations based
Farmer Connect – our sourcing through a materiality assessment farmer livelihoods and rural
our social, environmental and on the results of the RDF baselines.
program through which we work exercise (e.g. RDF and RISE). development to stakeholders.
ethical requirements. We trained In progress We have results from
directly with farmers – and based on 440 000 farmers through Farmer • Use the information to support four out of the seven locations. Three
• ‘Reverse engineer’ – mapping other studies are planned for 2019/20
a category-specific Theory of Connect in 2018. training and technical assistance
backwards from intended as part of the Farmer Connect program.
Change (ToC). This allows us to have for our suppliers.
impacts to the preconditions
a structured, focused approach to As stated in the 2017 report, we needed to achieve them. We recognize that different markets
locally identified, real issues. have rolled out 18 baseline rural
• Define assumptions about have their own local needs and
development assessments to
the context. situations. We have therefore
understand the needs of the
What we are doing farmers who supply us, using two • Identify interventions that create
developed a generic Group-level
ToC for key categories, which can
Assessing the impact of key tools: the Rural Development the desired changes. be reviewed and adapted to suit
our actions Framework (RDF) and Response- Improving farmer
• Define performance indicators local requirements. Local markets
Inducing Sustainability Evaluation income in Brazil
We have adopted a deeper to measure outcomes. propose their changes to Nestlé
(RISE). Using these baselines, we
understanding of what our and, once approved, KPIs are NATA (Center of Authorized
are implementing programs to
suppliers need through our ToC. By using the ToC model, we can: consolidated at Group level to Technical Assistance) is a
improve farm economics in seven
This represents a significant shift in give a comprehensive model for technical assistance program
priority locations, in line with the • Define and articulate long-term
focus for Nestlé, moving away measuring and monitoring impacts, developed to help Brazilian dairy
priorities of farming communities. sustainability goals and outcomes.
from previous reporting activities which is reviewed annually. farmers increase the profitability
We have results from four out of
and toward assessing the positive • Measure ongoing progress of their businesses. Technicians
the seven priority sourcing
impacts of our actions. The greater toward short- and medium-term collect and analyze data, which
locations, and three other studies
sense of context gained through
are planned for 2019 as part of the milestones. Nestlé trained helps farmers with their
ToC enables us to adopt a more
Farmer Connect program. • Question any assumptions we 440 000 farmers planning and decision making.
comprehensive approach to
addressing the issues farmers face. have made in defining our goals. on good agricultural Read the full story
• Identify and mitigate physical practices to address

and reputational risks. locally identified issues

Improving farmers’ diets

Our commitment: Improve food availability and dietary diversity
among the farmers who supply us.
Why it matters families; and Impact Valuation, and showing farmers how they can 460 farmers in Kenya Progress against our objectives
identifying how impacts can maximize income and nutrition
As many as 70% of farming families
participated in our trial
be measured and reported. from their limited land. To date, we
in some countries can be short of The Impact Valuation working have invested in a plantlet nursery, nutrition and health By 2020: Improve food availability and
dietary diversity in five priority sourcing
food for up to three months a year. group published a White Paper launched a text service to farmers education workshops locations based upon the results of the
Our Rural Development Framework in 2018. on coffee prices, and supported Rural Development Framework (RDF)
(RDF) baselines show that many baselines.
co-cropping to help farmers
In progress This work is ongoing
farmers lack diversity in their diets Partnering with food banks diversify their income. and progress will be reported in 2020.
and do not get enough protein or in Mexico
nutrient-dense foods such as
As part of the Nescafé Plan, Nestlé
vegetables, dairy and fruit. The
Mexico has partnered with Bancos
future of our company depends on
de Alimentos de Mexico, a national
the good health of farmers, their
food bank initiative, to actively
families and communities, to
improve the diets of coffee farmers
ensure the long-term sustainability
through food distribution. The food
of our supply chains.
bank also collects fresh agricultural
produce that would otherwise go
What we are doing to waste from fields, and makes it
available to coffee-growing
Collaborating to improve communities.
nutrition for farmers Improving farmers’ nutrition
In 2018, we played a key role in Helping small farmers boost In Kenya, as part of the FOSEK project with civil society organization
developing the cross-industry income and nutrition Solidaridad, we are trialing potential methods to improve nutrition
FReSH (Food System Reform for In the Philippines, we are for farming families, from cooking lessons and nutrition classes to
Sustainability and Health) project investigating different models of supplying seeds for kitchen gardens and promoting more nutritious
led by the World Business Council coffee farming to find the most vegetables. In all, 460 participants received the pilot nutrition and
for Sustainable Development. effective one for local conditions, health education workshops and 348 farmers received the cooking
Thanks to our scientific expertise where many farms are a single demonstration workshop pilot. These were spread over four areas
and activities, Nestlé was chosen hectare in size. The project focuses in Kenya.
to lead on two goals: Nutrition on three key drivers: increasing
Secure Supply Chains, which looks Read the full story
yields; setting up demonstration
at nutrition for farmers and their farms and farmer business schools;

Implement responsible sourcing

Our commitment: Implement responsible sourcing in our supply chain
and promote animal welfare.
Why it matters Progressing toward collaboration between major

cage-free eggs companies and animal welfare
Consumers and stakeholders experts to improve standards to
In 2018, more than 63.2% of the By 2020: For Tier 1 suppliers, over 80% of
increasingly want to know where meet consumer demand for food
eggs we sourced in Europe were the total spend and volume sourced from
their food comes from, what it from animals reared in systems audited and compliant suppliers.
from cage-free hens – marking
contains and how it was made. that promote good welfare. In progress 61% of our total spend
significant progress toward our
Transparency in our supply chains and volume sourced from audited and
pledge to move to 100% cage-free compliant suppliers.
and responsible sourcing of our Meeting stakeholder
eggs in our European supply chain
materials are essential to ensuring expectations – improving By 2020: For upstream, 80% of the
by 2020. Nestlé is also committed spend and volume of our priority
our sustainable future. We are
to sourcing all of the eggs we broiler production categories to be traceable and 70% to
proud to be implementing be responsibly sourced.
use worldwide from cage-free In 2018, Nestlé made an additional
responsible sourcing and to answer In progress 72% of our 14 priority
sources by 2025. We were proud public commitment to improve
our consumers’ questions. categories of raw materials are traceable
to receive a Good Egg Award from welfare standards for broiler and 63% are responsibly sourced.
Compassion in World Farming chickens used in our food products
What we are doing (CIWF) in 2018, in recognition of in Europe. We will ensure that
Supporting smallholder
this pledge. We also signed a global these standards meet the criteria
Expanding our responsible collaboration agreement with CIWF and expectations set out in the sugar producers in
sourcing scope to help us identify further ways of European Broiler Ask (European the Philippines
In 2018, we added processed improving animal welfare for the Chicken Commitment). By 2026, In partnership with ProForest
vegetables (specifically, tomatoes, ingredients used in our products. we will move to one standard, and the Sugar Industry
carrots, spinach, onions and bell based on a phased introduction. Foundation, we’re supporting
peppers) and spices to the list of Creating a new coalition thousands of smallholders in
key commodities on which we for animal welfare the Philippines’ largest
focus our responsible sourcing Nestlé, together with six other food sugar-growing region,
activities. It also means that we will companies, founded the Global Negros Occidental, to
be ensuring responsible sourcing Coalition for Animal Welfare 63% of our 14 priority increase their incomes and
for an even greater amount of the (GCAW) in 2018. The GCAW aims ingredients are develop safer and more
raw materials we buy. to advance animal welfare responsibly sourced sustainable farms.
standards throughout the global
Read the full story
food supply chain. It is the world’s
first global, industry-led

Coffee
Our commitment: Continuously improve our green coffee supply chain.
Why it matters their productivity and optimize We maintained the pace of our experiences. Through various
production costs, thereby coffee plantlet distribution program, channels, Grown Respectfully will
Coffee production faces serious improving coffee economics providing 21.9 million plants to 19 096 help communicate the full breadth
By 2020: 70% of the total Nescafé coffee
challenges, with pressure on and their quality of life. farmers during the year, keeping us and depth of the Nescafé Plan’s supply to be responsibly sourced.
supplies of high-quality coffee to on track to achieve our objectives. sustainability program and its In progress 55% of total Nescafé
keep up with constantly growing Through the Nescafé Plan, we are We also reached 55% of total impact on people and the planet. coffee supply is responsibly sourced.
demand. The availability of arable following up progress through Nescafé coffee that is responsibly By 2020: Nescafé to improve the quality,
land is increasingly limited, and a monitoring and evaluation sourced, and 93.9% for Nespresso. quantity and sustainability of its coffee
coffee cultivation will need to partnership with the Rainforest supply chain by distributing 220 million
Our coffee plantlet coffee plantlets.
compete with other food crops Alliance. We have established Ensuring workers’ labor
around the world. Climate change baselines in 10 coffee origins within
distribution program In progress 21.9 million
rights are respected
brings further challenges through our Farmer Connect program. is the largest private plantlets distibuted in 2018.
Since 2010, cumulative 181.8 million
We enhanced our monitoring and
the spread of extreme or erratic Over the coming years, we will
remediation capabilities on labor
scheme of its kind plantlets distributed.
weather conditions in some key systematically measure progress By 2020: Nescafé to improve coffee
rights in Mexico by partnering with
coffee-growing areas. and monitor trends in addition to farm economics in at least four
Verité and PPS. Verité provides coffee-sourcing countries.
assessing production costs and
tailored and timely labor rights In progress Improvements in
other elements related to farm
What we are doing economics. Already, farmers in
training to coffee farmers and our farm economics in two coffee-
sourcing countries.
field teams. In the harvesting
Helping farmers meet Mexico and Côte d’Ivoire are
season, PPS visited 176 medium or By 2020: Nescafé to monitor and
economic challenges showing improved farm economics improve labor rights in at least two
large farms to assist us in
and productivity. We are confident coffee-sourcing countries.
Coffee farmers experienced a implementing more targeted and
that productivity increases, In progress Targeted labor rights
difficult year: low prices affected effective activities, including monitoring program in one coffee-
coupled with improved production
incomes and discouraged relevant remediation actions. sourcing country.
costs, make farmers more efficient
engagement in sustainability. By 2020: Source toward 100% of the
and capable of achieving better
However, through the Nescafé Plan Grown Respectfully coffee for Nespresso’s permanent range
incomes and livelihoods. through its AAA Sustainable Quality™
and Nespresso AAA program, launched to communicate Program on coffee sourcing.
representing a CHF 68.12 million Moreover, the great work of our field our Nescafé Plan In progress 93.9% of Nespresso
investment annually, we work with teams already enables us to see In 2018, we launched Grown coffee sourced through the AAA
thousands of coffee farmers to help positive economic developments Respectfully, a new program to Sustainable Quality Program.
them enhance efficiency. Our in more coffee origins, making us communicate to consumers the
efforts helped farmers in various confident to report further progress work of our Nescafé Plan by Read more online
countries to significantly increase over the coming years. conveying real, inspiring farmer

Nestlé Cocoa Plan

Our commitment: Roll out the Nestlé Cocoa Plan with cocoa farmers.
Why it matters programs began in 2018 and are Achieved our Progress against our objectives
expected to reach around 15 000
The Nestlé Cocoa Plan aims to
10-year goal
farmers by 2019.
improve the lives of farmers and the to distribute 12 million By 2018: Source 175 000 tonnes of cocoa
through the Nestlé Cocoa Plan.
quality of their product. It helps Unproductive trees are a major cocoa plantlets one Achieved 198 155 tonnes of
farmers address the challenges they challenge for cocoa farmers, year early cocoa sourced through Nestlé Cocoa
face through three pillars – better exacerbated by poor agricultural Plan in 2018.
farming, better lives and better practices and the lack of By 2020: Source 230 000 tonnes of cocoa
cocoa – with activities including rejuvenation of plantations. Strengthening certification through the Nestlé Cocoa Plan.
training in better agricultural Through the Nestlé Cocoa Plan, we for better cocoa In progress
practices, distributing higher- have now completed our 10-year After signing the Cocoa and Forest
yielding plants, promoting gender goal to distribute 12 million cocoa Initiative in 2017, we developed our
equality and tackling child labor. plants to farmers a year early. action plan to tackle deforestation
in 2018, including an aim to
Tackling child labor distribute 2.8 million shade trees
What we are doing in four years.
Our Child Labour Monitoring and Enabling remote access
Coaching farmers for Remediation System (CLMRS), put to educational material
What we’ve achieved by 2018
better farming in place with the help of the
International Cocoa Initiative, Volume of Nestlé Cocoa 198 155 Eneza is our project to
To make more impact from the Plan cocoa procured in 2018
continued to grow in our main promote the value of
available resources, we have
cocoa supply countries of Côte Cumulative total of plants 14 555 891 education in cocoa
moved from training farmers to distributed through the
d’Ivoire and Ghana in 2018. A total communities using
coaching them. While the training Nestlé Cocoa Plan
of 11 130 children have been innovative technology.
was educating farmers, it was not Cumulative number and % 981 and 5.6%
helped by the scheme, and we Five-hundred primary and
necessarily resulting in changes on of child labor cases no
have now built or refurbished longer in child labor secondary pupils in remote
the farm. By having technicians
around 45 ‘bridge schools,’ which areas are now able to access
visit farms and create bespoke Cumulative number of 11 130
have helped around 3149 children children subject to educational material online.
development plans with farmers,
who had fallen out of the school follow-up and/or benefiting
we expect to see greater benefits, from remediation activities Read the full story
and follow-up visits will help system to return.
measure progress. Coaching

Why it matters In recent years, we have mainstreamed human

rights work into our activities and policies. This
Recent years have seen increasing attention paid has been extended with the adoption of our new
to the responsibility of companies to respect CARE Audit Protocol. We have reviewed its
human rights in their activities and business content based on the lessons learned over the
relationships. Consumers increasingly want to last few years as part of our Human Rights Due
know about human rights in the supply chains of Diligence Program, and in particular through
products they buy, and there is greater interest human rights impact assessments. As we
from investors and regulators in this area. We progress on our human rights journey, we will
believe upholding the human rights of the people also shift the focus onto our supply chain in
who work for or with us is essential to make our future years as this is clearly where the most
business activities and supply chains more salient human rights issues (e.g. child and forced
resilient, stable and sustainable. labor) are found.
All our employees globally will receive our new

Our contribution human rights training program in key issues.
We are also developing a governance structure
Respecting and
Although our size and scale enable us to have
influence, we know that sector-wide and in all markets to further explore issues around
sustainable change requires collaboration with human rights.
promoting human rights others. We work with expert organizations, such

as the Danish Institute for Human Rights (DIHR),
the Fair Labor Association, the International
Cocoa Initiative, Verité, Issara Institute,
Our commitments to Human rights abuses have no place in The Forest Trust and ProForest, to ensure we
respecting and promoting our supply chains. Our values are rooted understand the challenges, and we continually
human rights in respect, including respect for the refine our approach to implement actions that
p.32 Assess and address human rights
human rights of every single person have real impact. With the DIHR, we identified
impacts across our business activities who works for or with us. our most salient human rights issues – those
p.33 Improve workers’ livelihoods and with the greatest risk of negative impact on
protect children in our agricultural people within our activities. Specific action
supply chain
plans address these issues, ensuring human
p.34 Enhance a culture of integrity across
rights are respected and promoted across our
the organization
business activities.
p.35 Provide effective grievance
mechanisms to employees
and stakeholders
Our work on human rights contributes the most
to the following SDGs:


Assess and address human rights impacts

Our commitment: Assess and address human rights impacts
across our business activities.
Why it matters Embedding human rights in effective ways to identify and risks and opportunities associated
our procedures address issues we find. with human rights at market level.
Respecting the human rights of A survey of our markets conducted
We launched our new CARE Audit By 2018: Carry out six human rights
everyone in our business activities In 2018, we also deployed a toolkit in 2018 found that the majority of
Protocol in 2018, which uses impact assessments in our upstream
is rooted in our values. We have for Market Compliance Officers to Market Compliance Committees supply chain*.
independent assessments to
identified 11 salient issues that support the establishment of a discuss human rights-related topics In progress Four human rights
measure compliance with our
stand out because they are at risk of governance structure to manage as needed, if not periodically. impact assessments have been carried
business principles. The new out since 2017.
the most severe negative impact
protocol has a greater focus on
through the company’s activities or By 2019: Have a functioning governance
human rights and will help us structure in place in all markets that looks
business relationships and where
ensure the ongoing monitoring of Giving palm oil workers after human rights risks and opportunities.
we can have the greatest impact.
human rights issues within our a voice
In progress In 2018, we deployed
These are the risks that have the a toolkit for Market Compliance
own operations. This will allow us
most severe potential impact on Officers to support the establishment
to dedicate more time and Following our previous HRIA
rights holders and the highest of a governance structure to manage
resources to the most salient in our palm oil supply chain, risks and opportunities associated with
likelihood of occurrence. Severity is
human rights issues that we find we are collaborating with human rights at market level.
defined as the scope, scale and
in our supply chains. Sime Darby Plantation to pilot By 2020: Train all Nestlé employees on
remediability of the impact.
a project to eliminate human human rights.
and labor rights abuses in our In progress 5014 employees
5 014 employees trained trained on human rights in 2018.
What we are doing on human rights in 2018
Malaysian supply chain. A
helpline, the first of its kind in *
Our partner the Fair Labor
Our new human rights training Association has an ongoing program
the palm oil sector, will enable of assessments in our upstream
program, developed with the Because of our focus on workers to report any issues supply chain, which will inform our
Danish Institute of Human Rights human rights work. Because of this,
mainstreaming human rights in our with working conditions, we have extended this objective
and launched in 2018, is a major internal activities, and the time recruitment or safety, either to 2020.
step toward meeting our 2020 required to complete human rights online or through a toll-free
objective. To date, over 100 000 impact assessments (HRIAs), we number. Workers will be able
employees globally have received have decided to extend our 2018 to voice their concerns directly
training since 2011, and this new objective to carry out six HRIAs in to trained helpline officers.
online program will accelerate this. our upstream supply chain to 2020.
Read the full story
We review and assess the most

Protecting children and workers

Our commitment: Improve workers’ livelihoods and protect children
in our agricultural supply chain.
Why it matters We are also partnering with Issara In addition, we extended our Our new Inclusive Labor Progress against our objectives
Institute – a Southeast Asian NGO partnership with Verité, looking at
Nestlé opposes all forms of human that tackles human trafficking and labor rights issues in our hazelnut
Monitoring System
rights violations, including labor forced labor – to address these supply chain in Italy. A report by will cover more than By 2018: Start reporting on the number of
workers in agricultural supply chains
rights violations. Labor rights are issues in our fish and seafood Verité identified a number of issues 35 000 workers in our having benefited from our interventions
included in seven of our 11 salient supply chain. We’ve banned and remedial actions, which we are supply chain on selected salient labor rights issues.
issues and are associated with our transshipments at sea and are now currently working with our In progress Work is currently
agricultural supply chains. underway, and we aim to start

working with Issara to implement suppliers to implement. In our palm reporting once we have reviewed
an Inclusive Labor Monitoring oil supply chain, we broadened our interventions against the list of salient
System that will cover more than focus, previously on deforestation, issues.
What we are doing 35 000 workers in our supply chain. to include human rights. By 2020: Start reporting on the number of
workers in agricultural supply chains
Demonstrating appropriate having benefited from our interventions
standards at sea Addressing rights for on all salient labor rights issues.
Nestlé, with seafood producer Thai
casual workers In progress
Union and NGO Verité, has We continued our work to address

inaugurated a demonstration boat labor rights issues in our hazelnut
as part of a collaborative effort with supply chain in Turkey in 2018.
the Thailand Department of Working with the Fair Labor
Fisheries to address labor and Association (FLA), we have moved
human rights issues in the Thai the emphasis from audits, which
fishing industry. In 2018, 116 boat told us little of the effectiveness of
owners, captains and crew interventions, to measuring the
received training in good onboard impact that our interventions have.
living and working conditions, We also completed a four-year
project with the FLA, funded by the Tackling child labor
including adequate, fresh food and
drinking water, space for resting US Department of Labor, to We’re tackling child labor across our supply chains, especially in cocoa,
and eating, first-aid provision and address labor issues, including hazelnut and sugar. Working with NGOs and governments, we’re
sanitary toilet facilities. child labor and women’s identifying the risks and strengthening our capacity to address them.
empowerment, in the hazelnut
supply chain in Turkey. Read the full story

Our culture of integrity

Our commitment: Enhance a culture of integrity across the organization.
Why it matters other initiatives. The 6.4% increase

in complaints received through
We want to promote the highest the Integrity Reporting System is
By 2018: Markets launching a compliance
standards across our business. This an example of the positive impact communication plan, further reinforcing
requires a culture of integrity and of the broad compliance the tone at the top and speaking up. CARE
respect, not just in our company communication across the audit enhanced on human rights, and
but throughout our supply chain, schedules defined for Nestlé sites with
markets in 2018. the new protocol.
so that all our employees and
Achieved 100% of our markets
everyone we work with live our Measuring compliance deployed communication plans and
culture and values. through our CARE audits practices, further reinforcing tone at
the top and speaking up in 2018.
CARE, our compliance audit
By 2019: Markets reinforcing compliance
What we are doing program, measures compliance as a leadership responsibility based on a
with key principles through corporate toolkit for training managers on
Promoting compliance with independent assessments. Working business integrity.
our business standards with the Danish Institute of Human In progress Corporate toolkit will
be developed and launched in 2019.
Following the introduction of our Rights, we reviewed the CARE
program in 2018 to incorporate By 2020: A proactive review is conducted
Communication Best Practice for our compliance activities and policies
Toolkit in 2018, we reinforced key current best practices on human in light of our evolving product portfolio.
messages across our business rights, and conducted training, In progress We reviewed the
about compliance and our implemented audit findings and CARE program in 2018 to incorporate
Embedding human rights in our company-wide audits
grievance mechanisms. One reduced the number of gaps. current best practices on human
A total of 296 audits were carried rights, and conducted training,
hundred percent of our markets For the 2018 CARE cycle, we enhanced the human rights focus, with
implemented audit findings and
deployed communication plans out, with 160 gaps (out of 414) support from the Danish Institute of Human Rights. Instead of a reduced the number of gaps.
and practices, further reinforcing successfully closed. specific human rights pillar, we now have human rights embedded
the tone at the top and speaking up throughout the whole document, with questions relating to
in 2018. These included messages Read more about Nestlé conditions of work and employment, business integrity, safety and
from Market Heads, annual Code of Business Conduct health, security, environment, sustainability and relations with the 296 CARE audits
compliance messages from Market communities where we operate.
were carried out in
Compliance Officers, videos, Read more about grievance
articles in employee newsletters, mechanisms and
Read the full story 2018, with 160
‘town hall’ meetings and many
remediation commitment successfully closed

Grievance mechanisms and remediation

Our commitment: Provide effective grievance mechanisms to
employees and stakeholders.
Why it matters their reoccurrence. The RCA measures were taken, including As a result of the issues raised in
process was shared across our internal process improvement 2018, one warning letter was issued
We do not tolerate any violations of markets in 2018 by webinar. and reinforcement. and five people left the company.
By 2018: Markets conducting root cause
our Code of Business Conduct or Markets implemented RCAs for Remedial measures were taken analyses for selected compliance cases
corporate policies. All breaches in severe cases as necessary and Our independent Tell Us including internal process using tools provided by headquarters.
our value chain must be reported, as appropriate. channel for raising issues improvement and reinforcement. Achieved In 2018, we
so they can be stopped or implemented a root cause analysis
During the year, we received system to help us learn from serious
prevented. Employees and other Our anonymous reporting Read more about Nestlé
699 messages via Tell Us, our compliance breaches and prevent their
stakeholders must also have system in numbers Code of Business Conduct
reoccurrence.
communication channel for external
access to remediation for any
In 2018, we received 1837 stakeholders. All comments By 2019: Review grievance systems’
abuses. Effective grievance effectiveness with internal and
messages through our Nestlé received have been addressed or
mechanisms are essential to external stakeholders to define
Integrity Reporting System, which are being dealt with.
protecting the human rights of improvement opportunities.
enables employees to report
people across our value chain. In progress Review process
illegal or noncompliant behavior in development.
anonymously. The messages By 2020: Grievance systems
What we are doing received covered issues such as improvements implemented in
pilot markets.
leadership style, labor practices,
Promote speaking out to discrimination and harassment. We In progress To be implemented
report compliance breaches also received 486 questions from

Using root cause analysis to remediate issues upon completion of review process.
In our continuous efforts to be a employees seeking compliance When a report was received that certain employees were having to
better company, we believe it is advice. Thanks to our robust carry large water containers on their shoulders to places their delivery
important to learn from our own reporting system, 1568 (85%) lorries could not access, a root cause analysis was carried out to
mistakes by conducting root cause cases were closed and 500 (32%) determine the issues and propose recommendations. As a result, Nestlé’s Integrity
analysis (RCA) on serious substantiated, including 12 trolleys are now provided along with training in ergonomics and Reporting System
compliance breach cases. In 2018, private-to-private bribery cases, manual handling, and a company doctor provides check-ups and
resulting in 139 employees leaving medical awareness.
and Tell Us are free and
we achieved our objective of
implementing an RCA system to the company. There were 58 anonymous channels
Read the full story
help us learn from serious written warnings, eight suppliers’ for communicating
compliance breaches and prevent services were terminated and other grievances

Why it matters We also use our scale and size to provide jobs,
apprenticeships and training for young people,
Everyone is entitled to decent employment, with helping them find employment or gain the skills
equal opportunities, a living wage, security, they need to enter the workplace.
prospects for development, and the freedom to
express their concerns and organize and With our purpose of ‘enhancing quality of life
participate in the decisions that affect their lives. and contributing to a healthier future,’ Nestlé
Businesses also benefit from the greater places a real emphasis on workplace well-being.
productivity that comes from a healthy, secure, We want to inspire people to lead healthier lives,
motivated workforce. as we believe a safe, healthy workplace creates
a healthier business.
Youth unemployment is a serious issue,
contributing to global poverty and damaging
communities and their futures. It is also
important that businesses are more diverse and
inclusive, and better reflect society. Businesses
like Nestlé need to tackle this to secure a pipeline
Promoting decent of future talent.
employment and diversity Our contribution

As a global company, we are proud of our Nestlé makes equal pay pledge
diversity. We have specific commitments to Nestlé has pledged to help accelerate
Our commitments to Decent employment and diversity are promote gender balance, within our own progress toward equal pay for equal work,
promoting decent fundamental to our culture. As a major operations and in the societies and communities at a UN General Assembly event organized
employment and diversity employer worldwide, we have an we source from. In line with this commitment, we by the Equal Pay International Coalition.
p.37 Roll out our Nestlé needs YOUth
important role to play in providing are also pledged to closing the gender pay gap, The coalition, led by the International
initiative across all our operations opportunities for people. We aim to with equal pay for equal work for our employees. Labour Organization (ILO), United Nations
p.38 Enhance gender balance in our provide a workplace in which everyone Women and the Organisation for
workforce and empower women is treated with dignity and respect, and We actively support diversity in all its forms Economic Co-operation and Development
across the entire value chain
that offers equal opportunities for all. throughout our business and work hard to (OECD), aims to build a consortium of
p.39 Advocate for healthy workplaces promote the inclusion of people from different
and healthier employees
committed partners to hasten closing the
generations and cultures, and those with gender pay gap and achieving equal pay.
different abilities and sexual orientation (LGBTI*). We pledged to achieve equal pay for all our
employees, and since 2011 we have also
Our work promoting decent employment and increased the number of women in
diversity contributes to the following SDGs: leadership positions every year.
Read the full story

*
Lesbian, gay, bisexual, transgender and intersex.

Opportunities for young people

Our commitment: Roll out our Nestlé needs YOUth initiative across
all our operations.
Why it matters Supporting young Supporting young people in during the year, taking the total
entrepreneurs in Africa the Americas since the program’s launch in 2015
Youth unemployment affects to over 2000.
In 2018, Nestlé and the Swiss Led by Nestlé, the Alliance for By 2020: Nestlé needs YOUth initiative
millions around the world,
Agency for Development and YOUth brings together over 40 commits to deliver:
contributing to global poverty. Creating opportunities for
Cooperation launched the Social companies, governments, NGOs, • 45 000 to 50 000 apprenticeship and
As a major employer, we know the young people in Europe traineeship opportunities.
Investment Accelerator program. labor organizations and academies
positive difference we can make • Continued readiness-for-work events
Designed and led by Ashoka, the to promote youth employability and In Europe, Nestlé celebrated
through employment opportunities globally, with an increasing number of
program aims to support young entrepreneurship in Colombia, European Vocations Skills Week in employees involved in such events.
and skills development. We offer
social entrepreneurs by helping Peru, Chile and Mexico. In 2018, the 2018 with a range of activities
apprenticeships, training schemes • Enhanced collaboration with external
them gain access to finance, alliance increased its commitment including factory visits, workshops, partners to motivate them to join and
and initiatives designed to
enabling them to create further to young people in the region, roundtables, careers days and to increase impact.
equip people with essential
growth, impact and employment pledging to create 30 000 job youth training events. Along with • 20 000 to 25 000 job opportunities for
workplace skills. people under 30 years of age every year.
opportunities for young people opportunities by 2020, an increase our 200+ partners in the Alliance for
In progress Over 26 000 job
across Africa. from the original 17 000 target. YOUth, we were able to announce
opportunities offered to people under
What we are doing More than 12 000 young people that the alliance has met its pledge the age of 30.
We also partnered with 22 ON have so far benefited. Building on to offer 150 000 young people in 4900 readiness-for-work events
Our Global Youth Initiative, Nestlé SLOANE, the largest start-up its success, the alliance expanded Europe jobs, apprenticeships or organized to help prepare young people
needs YOUth, is driving our work to campus in Africa, which offers in 2018 to include Argentina, Brazil, traineeships by 2018. for work, with 9800 employees
support thousands of young people support to start-ups and small Paraguay and Uruguay.
volunteering for such events.
access work, training and learning businesses. As well as hosting Measuring the value of the
Nestlé needs YOUth continued to grow,
reaching more than 300 partners.
opportunities, which also helps to masterclasses for the campus to Developing the next Global Youth Initiative
alleviate global poverty. Around the help young entrepreneurs generation of chefs
world, Nestlé helped over 400 000 In 2018, we undertook, together
crystallize their ideas into
young people in 2018, through job YOCUTA – YOung CUlinary TAlents with EY and Valuing Nature, a
prototypes, we led a ‘start-up
offers, apprenticeships and – is a Nestlé Professional initiative valuation of our Global Youth Read more on Nestlé needs YOUth
huddle,’ connecting entrepreneurs
traineeships, and support for in the Americas designed to attract Initiative, Nestlé needs YOUth. From
to a network of investors and
vocational programs and events. young people into the hospitality our investment of CHF 122 million,
mentors. Activities supported by
industry. The program offers the valuation exercise revealed Over 26 000 job
Nestlé, including work-readiness
nutritional knowledge and practical an ROI-equivalent value of opportunities offered to
events, career fairs and life-skills
cooking experience with a leading CHF 167 million for Nestlé. The people under 30 in 2018
programs, reached more than
chef. In 2018, the program societal value was estimated
12 000 young people in 2018.
extended to 18 markets, and more even higher with a return on
than 500 new students enrolled investment of 9.2.

Empowering women
Our commitment: Enhance gender balance in our workforce and empower
women across the entire value chain.
Why it matters Closing the gender pay gap

In 2018, in line with our gender
Gender equality and women’s
balance commitment, we pledged By 2018: Be a gender-balanced company
rights, education and empowerment
to work toward equal pay for equal by creating the enabling conditions in our
are critical to Creating Shared Value work environment to achieve annual
work at the Equal Pay International
for our business. However, women increases in the percentage of women
Coalition event during UN General managers and senior leaders (market
continue to face challenges in the
Assembly week. With this pledge management members and key roles at
global workplace, from under- the center).
we are supporting the Coalition
representation in business
led by the International Labour Achieved 43.2% of Nestlé’s
management generally to a lack of leadership roles are held by women.
Organization, United Nations
access to training, tools and finance By 2020: The livelihoods of women
Women and the Organisation for
for agricultural workers. Our have been improved in five priority
Economic Co-operation and
initiatives tackle these issues sourcing locations.
Development (OECD) to accelerate
throughout our value chain. In progress We have so far made
progress toward closing the progress toward this objective in
gender pay gap. Colombia, Pakistan, Turkey and Côte
d’Ivoire.
What we are doing
Supporting women in the
Developing women leaders supply chain 43.2% of Nestlé’s
within our business In Turkey, we support women leadership roles
In 2018, the proportion of manager workers in the hazelnut supply
positions in Nestlé globally held by chain. With the Fair Labor
are held by women
Addressing gender inequality among coffee growers
women was 43.2%*, helping us Association, we completed a
achieve our objective of an annual project to help 400 women through Through our Nespresso AAA Sustainable Quality™ Program, we have
increase. Women also comprise awareness raising on labor rights developed a gender analysis tool to explore the employment issues
31.8% of our senior leadership roles and financial literacy and women face in different regions around the world, and to develop
(market management members). developing leadership skills. Our solutions for those challenges. Following publication of a report on
Strong Women, Strong Farming the findings, the tool has become an integral part of our Gender
program helped empower women Equality Strategy.
hazelnut garden owners. Read the full story *
Following the implementation of our Hire
to Retire program, there was a subsequent
revision of our grading definitions.

Workplace safety and health

Our commitment: Advocate for healthy workplaces and healthier employees.
Why it matters Know Your Numbers program, with new employees receiving it as that the whole company learns from
making it available (offered) to part of their onboarding. Pre-launch the incident. We remain committed
Our purpose of ‘enhancing quality 87 408 employees, with 36 265 and Q&A presentations took place to achieving our goal of zero
By 2020: Offer our employees education,
of life and contributing to a healthier having participated. This includes in 2018 to prepare markets for the work-related injuries and illnesses, early screening and programs that
future’ starts with each of us. We different variants (global and local upcoming launch. A toolkit, despite the size of our company or support healthier lifestyle choices.
hope to inspire our employees to versions) of the Know Your Numbers including videos, brochures, posters the scope of our operations. In progress Know Your Numbers
take personal responsibility for their program. The program’s findings and implementation guidance, has program was made available to 87 408
health and safety, making informed employees, in 40 countries so far.
also indicate that health awareness been developed at global level to Promoting healthy families
decisions and choosing to live and is a priority area to be focused on in ensure consistency across Nestlé. By 2020: Continue leading through
At the end of 2018, we had industry forums.
work in a healthy and safe way. future activities. implemented our Maternity In progress Nestlé is a member of
Work-related illnesses Protection Policy across all our and contributes actively to the most
Stress in the workplace and fatalities
What we are doing markets, enhancing support to relevant groups driving employee
health across industries, including The
Our Stress and Resilience program Musculoskeletal diseases accounted employees in general and to new Consumer Goods Forum’s Employee
Promoting healthy living in helps build personal resilience for 48% of recordable illnesses in parents and primary caregivers Health & Wellbeing work group and
the workplace through customized training and 2018. We believe that improving the working for Nestlé. A few minor the Workplace Wellness Alliance.
Our strategic roadmap identifies four tools for specific audiences, ergonomics of our workplaces is key gaps were identified and have
focus areas for health: ergonomics, including all employees, human to addressing this. ErgoPro, our ongoing action plans in place.
healthy diets, stress and resilience, resource business partners (HRBPs), approach to assessing ergonomic
and fatigue and working hours. To and line managers and senior workplace risks, helps us design The policy establishes minimum 2018 Safety &
manage health issues, 97% of our management. In 2018, we trained appropriate, ergonomically sound standards for all Nestlé locations Health Awards
markets have a health and wellness 694 HRBPs and 362 Employee workplace solutions. In 2018, we and is seen as one of the most
Health Champions and Safety and completed assessments of 87% of progressive in the industry. It Our Safety & Health
program in place.
Health Managers. our routine production tasks, against includes five pillars: Awards allow us an
our target of 75%. opportunity to demonstrate
Know Your Numbers program • Maternity protection: minimum
Promoting #HealthyLives our commitment to the safety
In 2018, we continued the 14 weeks paid and well-being of our people.
#HealthyLives is our main training Despite our best efforts, we are
implementation of our Know Your • Employment protection and They also enable markets to
program for building awareness on saddened to report that in 2018, one
Numbers program, designed to help non-discrimination learn from each other and
a holistic approach to health, employee and two contractors lost
us better understand our gain recognition for their
encompassing physical activity, their lives while working for Nestlé.
employees’ health profile and the • Healthy work environment achievements.
mental health, nutrition and sleep. We carry out a detailed investigation
impact of health on productivity so • Flexible work arrangement
for every fatality, involving a Read the full story
we can build evidence-based
We aim for all our markets to make it cross-functional team and local • Conducive work environment
interventions. Twenty-eight markets
available for employees by 2020, senior management. The results are to breastfeed
(40 countries) have adopted the
reviewed at Group level to ensure
For the planet

Stewarding resources for future generations
2030 Ambition To strive for zero environmental impact in our operations.
To grow sustainably, we must Our focus on water positive community relationships;

consume the planet’s stewardship and then collective action with local
resources wisely, and use our stakeholders to address shared
Water is one of the three Creating
global presence to help make water challenges. This three-step
Shared Value (CSV) areas where
a positive difference. In line process helps us assess risks,
the needs of our business most
with our ambition, we are promote best practice and focus
closely align with those of society.
working to improve water our efforts where it matters most.
Although our efforts involve
stewardship throughout our
making water use in our facilities
value chain. We are working
more efficient, the potential impact In 2018, Nestlé
to reduce emissions across launched its Caring
we can have beyond our
our value chain by operating
more efficiently and using
boundaries is arguably much for Water initiative
greater. That’s why we work with
more sustainably managed
partners to protect shared
and renewable resources. To In March 2018, our CSV Forum,
watersheds, improve water
safeguard the environment, attended by Nestlé Chairman Paul
management in our agricultural
we have a key focus on Bulcke and CEO Mark Schneider,
supply chain and widen access to
reducing the use of plastics was held in conjunction with the
clean water and sanitation in the
and making sure those we use eighth Global Water Forum in
communities where we operate.
are recyclable or reusable. We Brasilia, and focused on water as a
are also striving to create less driver for helping Nestlé support the
Our approach involves: compliance
waste, preserve our natural Sustainable Development Goals.
with legal and regulatory
habitats and encourage requirements, as well as internal
consumers to play their part. standards, as a starting point;
Read more online
followed by excellence in water
stewardship, from efficiency to

Why it matters management and sanitation. It comprises a clear

and common water stewardship approach at local
We all need water to live. Water is also essential level, inspired by the Alliance for Water
for growing the ingredients we source and for Stewardship (AWS), and enabling AWS
operating our factories. People also need safe certification of our operations. We are set up to
water to prepare or consume many of our support zones, markets and businesses to deploy
products, from infant formula to coffee. and implement their Caring for Water plans and
leverage them for greater impact in the future.
While water security is a global problem, the
impact is felt locally. Global demand for water Caring for Water’s ambition is ‘Together, we
already exceeds supply but resources are not steward water resources for future generations,’
equally distributed across the planet. These and it will play a key role in helping us achieve
pockets of water scarcity are due partly to our ambition of zero environmental impact in
population growth and urbanization increasing our operations.
consumption in already water-stressed
locations, thus contributing to the lack of clean In 2018, we conducted an impact valuation of our
drinking water and sanitation experienced by initiative, considering a range of factors such as
Caring for water 40% of the world’s population (UN). the use of water in factories, our global WASH
project, and particularly water use in agriculture
and our investments in catchment areas, as
Our commitments to Access to clean water and adequate
Our contribution these are where the biggest potential for return
protecting water supplies sanitation is a fundamental human right. To preserve shared water resources, on investments exists. We have a long way to go,
collaboration is the only option. We work with a and are refining measurement methodology and
p.42 Work to achieve water efficiency and Protecting and preserving the water
wide range of partners to protect water addressing data gaps. In 2019, we will also focus
sustainability across our operations resources we share with others is a major
resources at watershed level; support our on understanding better the business value of
p.43 Advocate for effective water policies priority for us. We achieved our the initiative.
and stewardship suppliers to efficiently grow the ingredients we
commitment to treat the water we
p.44 Engage with suppliers, especially need; and work to improve communities’ access
those in agriculture discharge effectively in 2017. A new to clean water and sanitation. Our efforts were Implementing our initiatives
p.45 Raise awareness on water digital compliance assessment and recognized when we received a 100/100 score in A guidance document, the Caring for Water
conservation and improve access monitoring tool now ensures all our plants the Water-Related Risks section of the 2018 Dow playbook, will direct our specialists in
to water and sanitation across our
value chain
meet the exacting standards of our Nestlé Jones Sustainability Index. implementing water stewardship initiatives,
Environmental Requirements for water focusing on four key areas: in our factories,
quality. Our work here will continue Our Caring for Water initiative continuously improving water use efficiency; in
through the Caring for Water initiative. In May 2018, we launched the Caring for Water watersheds, working with partners to protect
flagship initiative, which will guide and focus our shared water resources; across our agricultural
Our work on caring for water contributes local efforts where, and how, they matter. The supply chain, where water challenges are putting
to the following SDGs: the sourcing of our raw materials at risk; and in
initiative will help us demonstrate our support and
contribution to United Nations Sustainable the communities where we are present, to widen
Development Goal 6 (SDG 6) on water resource access to clean water and sanitation.

Improving water efficiency

Our commitment: Work to achieve water efficiency and sustainability across
our operations.

Water is vital to Nestlé: for growing In 2018, we withdrew 127 million m3
By 2020: Reduce direct water
ingredients, for our production of water for our direct use. Through
withdrawals per tonne of product in every
processes and for preparing our investment in new, better- product category to achieve an overall
products. We must therefore use performing technologies together reduction of 35% since 2010.
water as efficiently as possible in with the adoption of best practices, In progress 29.6% reduction in
our operations – especially with we saved 3.7 million m3 of water in direct water withdrawals per tonne
of product across every category
around one in three of our facilities our factories. This allows us to since 2010.
located in a water-stressed area. continue improving our overall
By 2020: Carry out 40 new Water
We are pleased to have made water use efficiency, toward our Resource Reviews (WRRs) in selected
significant progress in recent commitment of a 35% reduction. manufacturing facilities and all
years, but remain committed to greenfield sites.
doing more. In addition to 26 Water Resource In progress 11 new WRRs
conducted in 2018. Cumulative of
Reviews (WRRs) performed overall,
26 WRRs at the end of 2018.
We saved in the Americas, we have made a
By 2020: Implement 10 new water
commitment to implement a water
3.7 million m3 stewardship plan in every factory by
stewardship initiatives in selected
locations, with specific focus on
of water through 2020 – a total of 14 factories in three high-priority manufacturing facilities.
water-saving projects in years. The plans will promote both Implementing zero-water technology in South Africa Achieved 14 factories have a
reuse and recycling of water to drive water stewardship plan through

our factories in 2018 The town of Mossel Bay in South Africa is subject to regular droughts AWS certification.
efficiency within our factories as and was declared a disaster area after one prolonged drought. A
well as encourage collective actions project was launched to make the Nestlé dairy factory there as
at catchment level and stakeholder self-sufficient in water as possible by using water recovered from the
engagement with communities milk evaporation process. The factory now has excellent-quality
close to our manufacturing sites. recycled water and is even able to generate energy from the process.
Read the full story

Water stewardship advocacy

Our commitment: Advocate for effective water policies and stewardship.
Why it matters Nestlé Waters has committed to

certify all its factories to the AWS
Water is a resource we all share. Standard by 2025.
By 2020: Continue to build the 2030
Working alongside neighbors and
Water Resources Group public–private
other stakeholders is the only way Organizing global partnership by adding one more state or
we can address the complex collaborative events country per year.
challenges associated with water In progress No new countries/
In March 2018, we assisted the states were added during 2018,
stewardship. We believe that
Brazilian Business Council for however the WRG continues to work in
proactive, long-term engagement 14 countries and states.
Sustainable Development and the
and partnerships with a wide range
local chapter of the UN Global By 2020: Continue supporting the
of stakeholders can help to define, Alliance for Water Stewardship Standard
Compact with the organization of a
implement and evaluate solutions by implementing it in five new locations.
business day at the World Water
to the complex environmental In progress 14 locations where
Forum in Brasilia. We also co-
challenges that we face. Alliance for Water Stewardship
organized, with the AWS, a Standard deployed.
stakeholder dinner at World Water By 2020: Apply the new Farm and
What we are doing Week in Stockholm, to discuss the Catchment Level Assessment tool
prepared by the Sustainable Agriculture
role of certification in water
Initiative Platform (SAI) in at least five
Partnership with the AWS to stewardship. agriculture supply sourcing locations.
protect water resources Achieved We have applied the
Read more on the importance of
The Alliance for Water Stewardship the AWS Standard
Engaging stakeholders to share the challenges Farm and Catchment Level
(AWS) International Water Assessment tool in Brazil, Iran,
In Lebanon, we worked with the Shouf Biosphere Reserve on a Pakistan, Vietnam and South Africa.
Stewardship Standard provides Read more on the company’s vision
two-year monitoring and hydrogeological study of the area’s
environmental, social and economic for shared water management
groundwater. The study found that the groundwater balance was
criteria against which companies “Water stewardship is too overall positive. However, due to important seasonality and climate
can assess their water stewardship important to be a competitive effect, more needs to be done to better manage water resources,
practices. We certified the last two Nestlé Waters has
area. We strongly encourage other especially during the dry periods.
of our five water-bottling facilities in organizations to engage with
committed to certify all
California in March 2018, meaning the AWS Standard.”
Read the full story its factories to the AWS
14 of our facilities (Pakistan, Standard by 2025
Canada, US, China, Thailand, Carlo Galli, Head of Sustainability,
Ethiopia and France) have now been Nestlé Waters and Technical
certified by the AWS Standard. Director Water Resources,
Nestec S.A.

Engaging with our suppliers

Our commitment: Engage with suppliers, especially those in agriculture.
Why it matters according to the water stress Improving water efficiency for
index, and are working on several Vietnamese coffee farmers
Our greatest challenge to reducing initiatives to improve water
Vietnam is the second-largest By 2020: Implement all action plans
water consumption lies in efficiency in our dairy supply chain.
coffee producer in the world. defined for improved water management
addressing the impacts of our in our upstream supply chain for
However, small-scale coffee
complex agricultural supply chains. coffee, sugar, dairy and cereals in
farmers in the country have been
Water management and 10 projects high-priority locations.
facing the challenge of rapidly In progress 10 projects in
conservation is specific to a locality in water-stressed areas declining water levels. Through our water-stressed areas across
and is usually temporal in nature.
across 10 countries More Coffee with Less Water Improving water
10 countries.
Our research indicates that we can
project with the Swiss Agency for
achieve significant improvements management for
Development and Cooperation
in water use simply by introducing
(SDC), we have been supporting
Colombian
better agricultural techniques at a Developing water-saving
water efficiency training, covering coffee farmers
farm level. techniques for dairy farmers
topics such as water resource Agriculture accounts for
In Pakistan, Morocco and Iran,
management for coffee irrigation, around 70% of the world’s
where drought and water-stressed
What we are doing areas are issues, we are working
pruning and grafting techniques, water use. Manos al Agua,
fertilization and composting, and supported by Nestlé, the
Helping farmers manage water with dairy farmers to establish the
harvesting techniques and Colombian Coffee Growers
use of water meters and develop
challenges around the world post-harvest technology. In 2018, Federation, Cenicafé and the
water-saving techniques for animal
We are working with our suppliers 45 287 farmers participated in Netherlands Enterprise
feed production. In Brazil, we are
across all of our agricultural supply training sessions in four provinces, Agency, was an innovative
supporting farmers to install water
chains to ensure water is used Dak Lak, Dak Nong, Lam Dong and program completed in 2018
meters and improve manure
effectively. We have a particular Gia Lai. that empowered Colombian
management techniques. Together
focus through our Agriservices with Embrapa, the Brazilian coffee farmers to develop
network on dairy and coffee, as In partnership with the SDC, we regional solutions for water
Agricultural Research Corporation,
this is where we can make the most also launched a free app in late management and tackle
we are working on projects to train
impact. Based on the principle of 2018, available in Vietnamese and climate change.
farmers in good farming and
‘Do what matters, where it English, that provides farmers with
manure management practices. Read the full story
matters,’ we have mapped our short-term (3.5-day) rainfall and
fresh milk-sourcing districts temperature forecasts to help them
better manage water usage on
their farms.

Access to water, sanitation and hygiene

Our commitment: Raise awareness on water conservation and
improve access to water and sanitation across our value chain.
Why it matters surrounding our operations and

supply chain.
Access to safe water, sanitation and
By 2020: Implement detailed guidelines
hygiene (WASH) is a basic human Collaboration is at the heart of our on human rights to water and sanitation
right. There is a clear and compelling efforts to ensure people’s access to due diligence in all Nestlé markets and
economic case for all businesses to clean water. We work with key agricultural supply chains.
help address the current situation. businesses, associations and NGO In progress In 2018, we started our
Providing WASH facilities roll-out in medium-risk markets of the

partners, and have also been
Nestlé Guidelines on Respecting the
contributes to employee health, as working with the International Human Rights to Water and Sanitation.
well as broader societal goals, such Federation of Red Cross and Red By 2020: 600 000 beneficiaries in local
as reducing mortality and morbidity, Crescent Societies (IFRC) to communities have access to water,
strengthening community resilience improve access to safe water and sanitation or hygiene projects around our
and preserving personal dignity. sanitation in our supply chain. manufacturing facilities and key
agricultural supply chains.
Achieved Target was met in 2017.
How we’re respecting rights
What we are doing to water
At the end of 2018, 758 604 people
around the world were benefiting
from our WASH programs, and
We reached our target figure of In 2018, we continued to roll out our 316 474 people in local communities
beneficiaries ahead of time. Nestlé Guidelines on Respecting given access to clean water and
However, we continue our work on the Human Rights to Water and sanitation through our partnership
this issue and will keep reporting with the IFRC since 2005.
Sanitation, to ensure our operations
progress against the 2020 objective. and upstream supply chain do not
In 2019, we will undertake a full have a negative impact on the
review of all commitments to scope human right to water. The
out our work beyond 2020. guidelines, launched in high-risk
markets in 2017, were extended in 316 474 beneficiaries
Our partnerships are having an 2018 to our medium-risk markets. Bringing clean, safe water to Papua New Guinea reached through our
impact on the world around us In Papua New Guinea, six out of 10 people do not have access to WASH project with
We have a twofold approach to In the Americas, we have started clean water. We’re supporting the installation of new wells and water the IFRC
WASH: we respect the human right to implement the Community pumps to bring clean, safe water to local communities.
to water in line with the ‘do not Relations Process tool in at least
one factory in each of the Read the full story
harm’ principle, and we support
access to water in communities five markets.

Why it matters
Changes in weather, temperature and water
availability are already affecting farmers who
supply Nestlé. Following the IPCC report
released in October 2018, there is now a sense
of increased urgency to the calls for land
management interventions to deliver
greenhouse gas (GHG) emission reductions
on a global scale, and for companies to build
resilience into their value chain.
Our contribution Climate-Friendly Milk

Our approach to tackling the environmental Cows that live longer and produce milk for
challenges associated with climate change longer emit around 5% less greenhouse
Acting on
involves reducing our operational GHG gas per kg of milk. If further measures are
emissions across our value chain in line with added, emissions will even drop by
science-based targets. We’re also helping our 10%–20% – a significant contribution
climate change suppliers adapt to a changing climate by

distributing drought-resistant coffee and
cocoa plantlets.
against global warming. Nestlé
Switzerland, together with other
companies and local suppliers, is
committed to promoting a sustainable
Our commitments to acting Climate change is one of the most Our efforts to act on climate change areas Swiss dairy industry through the Climate-
on climate change important global issues of our time. earned a score of 100% in the Climate Strategy Friendly Milk pilot project. The project is
p.47 Provide climate change leadership It causes extreme weather events that section of the 2018 Dow Jones Sustainability funded by Nestlé Switzerland and the
p.48 Promote transparency and impact a range of factors, from water Index, and we ranked first in the Environmental Federal Office for Agriculture in a public–
proactive, long-term engagement availability and growing conditions to dimension overall. We were also one of only 59 private partnership.
in climate policy migration patterns. As a global food and companies included in CDP’s Supplier
Read the full story
beverage company, we are also Engagement leader board (see the Global
impacted by climate change. We are Supply Chain report), and retained our place in
determined to help our farmers build CDP’s Climate A list.
resilience to these changes as well as
reducing our impact on the climate.
Our work on acting on climate change



Climate change leadership

Our commitment: Provide climate change leadership.
Why it matters reduction, mainly due to increased We remain on track to meet our Emissions per tonne Progress against our objectives
responsible sourcing of key objective for warehouse energy
Climate change is affecting farmers of product distributed
commodities. consumption, with emissions in
across the globe, including those our top 100 distribution centers in are down 7.6% Ongoing: As a member of RE100, aim to
procure 100% of our electricity from
who supply us. Reducing GHG Increasing our renewable 2018 down 38.7% (since 2014) to compared with 2014 renewable sources within the shortest
emissions, switching to renewable electricity procurement 5.6 kg CO2eq per tonne of product. practical timescale.
energy sources and taking other In progress 34% electricity
We aim to buy 100% of our The Nestlé Policy on purchased from renewable sources.
actions to mitigate the effects of
electricity from renewable sources Environmental Sustainability
climate change are all necessary to By 2020: Reduce GHG emissions (Scope
as soon as it’s practical to do so. 1 and 2) per tonne of product in every
help ensure the ongoing success of
Since 2018, all the electricity we product category to achieve an overall
our own business and those in our reduction of 35% in our manufacturing
buy in France has been from Giving a BOOST to the
supply chain, as well as protecting operations versus 2010.
renewables. Purchasing renewable NHSc supply chain
the world around us. In progress 32% reduction in GHG
electricity helped us avoid 967 000 emissions (Scope 1 and 2) by product
tonnes of CO2eq in 2018. Because cartons of our protein category since 2010.
supplement BOOST were
What we are doing reaching retail sites damaged,
By 2020: Reduce GHG emissions per
Making our distribution and tonne of product by 10% in our
We take a holistic, science-based the Nestlé Health Science distribution operations versus 2014.
warehouses more efficient
target approach to tackling climate (NHSc) supply chain team In progress 7.6% reduction of
change, reducing our GHG We transport around 150 000 reconfigured the pallet layout. GHG emissions per tonne of product
emissions, increasing our use of tonnes of product daily, generating By filling open space with extra
distributed, covered in reporting in our
3.26 million tonnes of GHGs in 2017 distribution operations, versus 2014.
renewable energy and switching to cases, the team increased
cleaner fuels. We remain on track (our reporting covers 71% of our payloads and ensured there was
By 2020: Reduce GHG emissions by 10%
in the 100 major warehouses we use
to achieve our objectives, as we total product volume)*. Working less waste from damaged goods. versus 2014.
have reduced our overall Scope 1 with third-party logistics providers, In the first 12 months in which In progress 38.7% reduction of
and 2 GHG emissions per tonne of we aim to reduce distances, fuel the new configuration – now GHG emissions per tonne of product in
product by 32% versus 2010. consumption, emissions, noise and standard practice – was used, the 100 major warehouses we use
congestion. Emissions per tonne of versus 2014.
104 fewer trucks reduced CO2
We also aim to reduce Scope 3 product distributed were down emissions by 108 tonnes and
By 2020: Expand the use of natural
7.6% in 2017 compared with 2014. refrigerants, which do not harm the
GHG emissions by 8% (from our saved USD 443 000 (CHF 449 202). ozone layer and have a negligible impact
2014 baseline) by 2020. At the end Where road transport (71% of our on climate change, in our industrial
of 2017, we had achieved a 3.8% total transport) is necessary, we try Read the full story refrigeration systems.
to use natural gas in our trucks. In progress 10 new refrigeration
systems using natural refrigerants
installed.
*
2017 figures are the latest available data at the time of publication.
Proactive engagement on climate change

Our commitment: Promote transparency and proactive,
long-term engagement in climate policy.

Climate change is a global issue; it We continued to implement the
By 2020: Implement the Guide for
can’t be tackled by one company. It’s Guide for Responsible Corporate
Responsible Corporate Engagement in
going to take a seismic shift in how Engagement in Climate Policy in Climate Policy developed by CDP,
society thinks and operates if we’re 2018. This included disclosing our the UNGC, Ceres, The Climate Group,
going to stabilize GHG emissions, let actions on climate change through the WWF and the World Resources
Institute (WRI).
alone reduce them. As well as our public reporting and stakeholder
In progress We have continued
putting policies and initiatives in engagement. to disclose our actions on climate
place to reduce our own carbon change through our public reporting
footprint, we actively participate in a FReSH collaboration for and stakeholder engagement.
range of regional and global healthier diets
programs designed to support the
We are evolving our foods and
development of long-term climate
beverages to be not just healthier
policy. An article in the scientific
but also to have less environmental
journal Nature, published in 2018,
impact. However, true food system
describes three levers of change
transformation is only achievable
needed to keep the food system
through industry-wide global
within environmental limits:
action, which is why we engage in
improving agricultural technology
multi-stakeholder collaborations
and management; plant-forward In 2018, we became
aligned with our climate change
diets; and reducing food loss and Partnering with major food producers to announce the
waste. Operating as we have done in
commitments. In 2018, we became a founding member
a founder member of the World Clean Power Plan of the World Business
the past will simply not work.
Business Council for Sustainable
Nestlé’s thinking is fully aligned with
Development’s FReSH project,
In April 2018, Nestlé joined together with partners across the food Council for Sustainable
this viewpoint. industry to submit a public comment to the US Environmental Development’s
which aims to help achieve healthy,
Protection Agency supporting the Clean Power Plan, which
enjoyable diets for all that are
regulates GHG emissions. We strongly support the Clean Power Plan
FReSH project
produced responsibly within the
and believe it should be left in place or an even stronger alternative
planet’s resources. The project
identified and enforced
includes a collaboration with KU
Leuven University in Belgium to Read the full story
model sustainable food systems.

Why it matters Soils

To protect the health of soil, we are working with
If the whole world consumed natural resources
farmers in the US to reduce fertilizer run-off.
at the same rate as the richest countries, we
We are also increasing the sourcing of organic
would need between three and five planet
ingredients, which leads to improved soil health.
Earths (Global Footprint Network). This
unsustainable demand for raw materials,
coupled with climate change, is encroaching on
Oceans
natural habitats and contributing to the ongoing Oceans are important for Nestlé, both for the
decline in species populations. The extinction seafood we source from them and their key role
rate we see today is estimated by the WWF to in addressing climate change. Unsustainable
be between 1000 and 10 000 times higher than fishing, plastics and agricultural run-off are all
would occur naturally if humans weren’t around. placing stresses on oceans. By responsibly
sourcing seafood, investing in waste
The amount of waste we create is also rising infrastructure to stop plastic leakage,
alarmingly. The quantity of solid waste supporting the Global Ghost Gear Initiative,
generated each year – much of which finds its working with farmers to manage soils so that
Safeguarding way into water bodies and oceans – is expected

to reach 2.59 billion tonnes by 2030 (World
there is no excess run-off, we are acting to
reduce the stresses upon the ocean. Our new
initiative aims to have 100% reusable or
the environment
Bank) and to continue climbing throughout the
century. In lower-income countries, 93% of this recyclable packaging by 2025.
waste is discarded through open dumping. Even
a third of the food we produce is wasted or lost Going beyond
Our commitments to We depend on forests, soils, the oceans (FAO). With spiraling consumption, Beyond our operations, we work with other
safeguarding the environment and the climate for a sustainable supply mismanagement of solid waste and inefficient stakeholders to raise awareness, identify risks
of resources for our operations. We aim production processes impacting the world and agree actions, from regulatory intervention
p.50 Tackling plastic waste
to use and manage resources sustainably around us, we need to transform how we use to participation in hands-on activities. Through
p.51 Improve the environmental
performance of our packaging by operating more efficiently, responding and reuse the world’s natural resources. partnerships and multi-stakeholder initiatives,
p.52 Reduce food loss and waste to climate change, reducing food loss and we have helped develop guidelines to reduce
waste, and caring for water. Our ambition food waste and we’re working on a project to
p.53 Provide meaningful and accurate
environmental information
Our contribution introduce simple, standardized food date labels
is to strive for zero environmental impact
and dialogue by 2020.
in our operations. Forests
p.54 Preserve natural capital
We have partnered with Airbus and The Forest
At the end of 2017, we had achieved Trust to implement Starling, a satellite-based
our commitment to assess and optimize service, to monitor 100% of our global palm oil
Our work on safeguarding the environment the environmental impact of our supply chains from 2019. The program will be
products. We evaluated and addressed extended to cover pulp and paper and soya
the sustainability hotspots for 22 product supply chains at a later stage.
categories, and continue to build on
How we map our material our efforts.

“We want to be a leader in developing the most sustainable packaging

Tackling plastic waste solutions for our food and beverage products. To achieve this, we are
enhancing our research capabilities to develop new packaging materials
Our vision is that none of our packaging, and solutions. Through this, we hope to address the growing packaging
including plastics, ends up in landfill or as litter. waste problem, in particular plastics.“
Mark Schneider, CEO, Nestlé
We believe that there is an urgent recyclers, developing design will start rolling out plastic-free 2. Shaping a waste-free future
need to minimize the impact of guidelines for flexible packaging, as packaging in 2019 and Milo will
• Nestlé is the first food company
packaging on the environment. Our well as the infrastructure needed to introduce paper-based pouches
to partner with Project STOP, a
vision is that none of our packaging, collect, sort and recycle it across in 2020.
frontline initiative aimed at
including plastics, ends up in landfill the continent.
• Nestlé Waters will increase the addressing the leakage of plastic
or as litter, on land or in our oceans.
recycled PET content in its into the ocean, through
In 2018, we therefore announced Plastic pollution is a complex issue
bottles to 35% by 2025 at global partnerships with cities and
our commitment to make 100% of that requires a holistic view and a
level and will reach 50% in the governments in Southeast Asia.
our packaging recyclable or well-orchestrated effort. We are
United States, with specific
reusable by 2025. This is in line with taking the following steps to tackle • We signed the New Plastics
focus on Poland Spring. In
the Ellen MacArthur Foundation’s the issue: Economy Global Commitment,
addition, Nestlé Waters will
New Plastics Economy (NPEC), an initiative led jointly by The solutions that are functional, safe
increase the recycled PET
which seeks to address plastic 1. P
ioneering alternative Ellen MacArthur Foundation and sustainable. Based in
content for its European brands
waste and pollution at its source. materials and UN Environment. Lausanne, Switzerland, the institute
Acqua Panna, Buxton, Henniez
• Creation of the Institute for and Levissima to 50% by 2025. 3. Driving new behavior will employ around 50 people and
The NPEC seeks to address plastic include a state-of-the-art laboratory
Packaging Sciences to evaluate
waste and pollution at its source. At • Nestlé has a global partnership • All 4200 Nestlé facilities complex as well as facilities for
and develop various sustainable
the 2018 Our Oceans conference in with Danimer Scientific to worldwide are committed to rapid prototyping. In collaboration
packaging materials and
Indonesia, we signed the NPEC develop a marine biodegradable eliminating single-use plastic with our global R&D network,
collaborate with industrial
Global Commitment. The and recyclable bottle for its items that cannot be recycled. academic partners, suppliers and
partners.
Commitment aims to rethink the water business. start-ups, the institute will evaluate
• Nestlé employees worldwide will
future of plastics by applying • Between 2020 and 2025, we will the safety and functionality of
• Nestlé has initiated a dedicate their volunteering days
circular economy principles, in phase out all plastics that are various sustainable packaging
collaboration with PureCycle to the removal of litter and
which plastic never ends up as non-recyclable or hard to recycle materials. It will focus its research
Technologies to produce participate in clean-up activities
waste. We are also leading an NPEC for all our products worldwide. on key areas such as recyclable,
food-grade recycled on World Ocean Day (June 8).
working group (Pioneer Project biodegradable or compostable
• Starting in February 2019, Nestlé Polypropylene.
SEA) on mapping plastic material
will begin to eliminate all plastic
Nestlé Institute of polymers, functional paper, and
and waste flows in Southeast Asia. • We have joined NaturALL Bottle Packaging Sciences new packaging concepts and
straws from its products.
In Europe, we are a member of Alliance, which aims to develop technologies to increase the
We also announced, in 2018, the
CEFLEX: a Circular Economy for • Roll out paper packaging for 100% bio-based PET to be used recyclability of plastic packaging.
creation of the Nestlé Institute of
Flexible Packaging, a consortium of Nesquik in the first quarter of for our water business.
Packaging Sciences, which aims to Read more online
more than 100 organizations 2019, and for the Yes! snackbar in
discover and develop packaging
ranging from material producers to the second half of 2019. Smarties

Improve packaging performance

Our commitment: Improve the environmental performance of our packaging.
Why it matters Since 2015, we have avoided Reducing plastic in bottles

the use of 118 710 tonnes of In 2018, Nestlé Waters North
Plastic waste, and in particular packaging, keeping us on track America introduced a new 700 ml By 2020: Continue to systematically
plastic-based marine pollution, is to meet our objective. Nestlé Pure Life® bottle made from analyze and optimize our packaging
one of the biggest environmental portfolio, avoiding the use of at least
100% recycled plastic. We have
issues the world is facing today. Our total global plastic and 140 000 tonnes from 2015 to 2020.
also reduced the plastic content
Packaging is a major contributor to laminate use in packaging in 2018 In progress 118 710 tonnes of
of our half-liter water bottles by packaging have been avoided
such waste. At the same time, it was 1.7 million tonnes. 65%, saving a cumulative amount since 2015.
remains important for purposes such The plastics types used were of over 300 000 tonnes of plastic By 2020: Drive alliances with relevant
as protecting foods and beverages PET (Polyester) (48.3%), PE since 1994. stakeholders to address packaging waste
during transportation, extending the (Polyethylene) (24.1%), PP management and marine littering
shelf life of food and preventing food (Polypropylene) (11.8%), PO in 10 relevant markets.
In Europe, we are members of the
waste. This makes it essential not (Polyolefin) (1.1%), Laminates In progress 8 alliances with
European Federation of Bottled
just to reduce the amount of (10.8%) and PVC/PS/PA/PC/ABS The packaging of relevant stakeholders to address
Waters, which pledged in May packaging waste management and
packaging used, but to make (Polyvinyl Chloride/Polystyrene/ 2018 to collect 90% of all PET the future marine littering in 10 relevant markets.
packaging recyclable or reusable. Polyamide/Polycarbonate/ bottles by 2025, use at least 25% Doing his part to help protect
Acrylonitrile-butadiene-styrene) recycled PET in water bottles by the environment is motivation
(1.7%), Not Allocated (2.2%).
What we are doing 2025, invest further in eco-design for Xavier Caro as he works to
and research on non-fossil-based develop new packaging
We used 4.7 million tonnes of plastic materials, and engage materials at Nestlé’s Product
packaging material in 2018 In an In 2018, we saved further with consumers. Technology Center in
effort to more accurately track the
CHF 43.2 million Germany. He has dedicated
use of packaging materials, we his career to making
moved to measuring data based on through packaging
packaging more sustainable.
sales, rather than procurement reduction projects
spend. As a result, it is not possible Read the full story
to provide a comparison with
2017 data.

Reducing food loss and waste

Our commitment: Reduce food loss and waste.
Why it matters We have already implemented and waste. Nestlé UK and Ireland
actions to reduce losses, including also launched an initiative that aims
About one-third of food intended improved collection systems. As a to redistribute meals across the
Ongoing: As a member of Champions
for human consumption is lost or result, milk losses from farm to UK. Delivered in partnership with 12.3, accelerate progress toward halving
wasted. Nutrient-rich foods, such factory in 2018 were measured at Company Shop and WRAP, the food waste by 2030.
as fruit and vegetables, are lost at just 0.3% of production. Waste Not, Want Not methodology In progress We are implementing
high rates – up to 50% – and there is will assess the main causes of food actions to reduce food losses across
also a significant environmental our value chain.
Partnering to reduce waste waste within food operations and
impact. This loss and waste is due reduce them at source where By 2020: Achieve zero waste for disposal
Nestlé Nordic has joined the in our sites.
to a range of issues in production, possible. By 2019, any surplus food
Denmark Against Food Waste In progress Volume of waste for
handling and storage, processing should be redistributed to
initiative, which brings together Tackling food waste in disposal reduced by 91.6% (since 2008).
and packaging, distribution and commercial and charitable
manufacturers and retailers to Latin America and the By 2020: Make date labels
consumption. The social, organizations rather than being
reduce waste in Denmark by 50% understandable to our consumers to
environmental and economic costs used for animal feed or anaerobic Caribbean reduce food waste at consumption stage.
by 2030. The first step has seen
arising from food loss and waste digestion, and the project aims to In progress We continue to develop
participants commit to measuring Nestlé helped launch
range from avoidable water use and redistribute 2 million extra meals. initiatives to make food date labels more
and publishing progress on food #SinDesperdicio (‘without understandable for consumers.
GHG emissions to food insecurity. The approach has already been
waste annually. We also partnered waste’), a platform led by the
with the Inter-American tested at several Nestlé factories. Inter-American Development
We have estimated our own losses
Development Bank to support its Bank and supported by other
along our entire value chain at 12%. We are also measuring the
This includes the losses upstream
#SinDesperdicio (‘without waste’) major food and technology Milk losses in our dairy
environmental and nutritional companies. Taking a holistic
of the raw materials that we buy,
initiative in Latin America and the
impact of food loss and waste, key
chain were just 0.3% of
Caribbean. Read our case study to approach, it aims to fight
and the losses in manufacturing, measurements that are too often back against the 127 million
production in 2018
find out how we used food date
distribution and at the overlooked.
labels to help prevent food being tons of food lost and wasted
consumption stage.
discarded when it is still good to eat. every year in Latin America Read about food availability
Reporting food loss and waste and the Caribbean. and dietary diversity
What we are doing In 2018, Nestlé UK and Ireland Since 2016, we have been reporting
Read the full story
worked with other members of the the food loss and waste generated
Reducing milk losses IGD and WRAP Food Waste in our factories according to the
We are measuring the milk loss Measurement Task and Finish World Resources Institute’s Food
from farm to factory gate in 30 Group to develop guidance on Loss and Waste Protocol.
countries in our dairy supply chain. measuring and reporting food loss

Promoting sustainable consumption

Our commitment: Provide meaningful and accurate environmental information
and dialogue.
Why it matters Our website now features a wide smoothies with whole grain rice and
range of stories, advice and fruit juice, and Häagen-Dazs has
Product information can help information on ways to lead launched a vegan ice-cream line.
By 2020: Improve the availability and
consumers behave more healthier lives and consume food consistency of fact-based environmental
sustainably; for example, by more sustainably – from reducing Helping improve food systems information for consumers on our digital
recycling more or using less energy. sugar and healthy snacking to and other channels.
Through our work as member of
Our international scale and reach enjoying meatless meals and In progress More than 85% of our
the FReSH project, we’ve helped corporate web pages have fact-based
give us direct access to millions of portion guidance. Articles are create a toolkit to encourage environmental information available for
people, enabling us to share written by subject experts and sustainable consumption. A consumers.
information that could make a offer practical, easy-to-follow collaboration between FReSH and
positive difference on a global scale. advice. KU Leuven University, the project
has explored how to make
Nestlé brands offering more Telling real coffee-
What we are doing sustainable choices
successful interventions to make
growing stories
food systems work better. In
Making information available In the US, we offer on-pack October 2018, we published the Grown Respectfully tells the
to consumers guidance through our Thoughtful toolkit, a holistic assessment stories of the real-life farmers
The availability and consistency Portion box, found on two-thirds of of food system activities and who have signed up to the
of fact-based environmental our foods and beverages. The box their outcomes. Nescafé Plan. By telling their
information for consumers on provides suggested portion sizes stories, we aim to make
our digital and other channels and has helpful information not More than 85% of our environmental information
has improved by 15% since 2017. found on the nutrition facts label. real and relevant and promote
corporate web pages
Now more than 85% of our dialogue with our consumers.
corporate web pages have In addition, our Lean Cuisine brand have environmental
environmental information now offers plant-based options, information available Read the full story
available for consumers. Nestlé Brazil sells 100% plant-based for consumers

Protecting natural capital

Our commitment: Preserve natural capital.
Why it matters pulp and paper and soya supply nutrient-depleted soil. In 2018,
chains at a later stage. Our supply Nestlé Purina funding helped to
The success of our business relies a chain is currently estimated to be drive grower group engagement to
By 2020: 70% of the volume of our
great deal on the sources of our raw 77% deforestation free for our top bring adoption of soil health 14 priority categories of raw materials
materials: land, soil, trees and water. five commodities linked to practices to at least 30 million acres. have been assessed against our
We work collaboratively to protect deforestation risks. Responsible Sourcing Standard
the health of these habitats, requirements and are compliant, or
Protecting the oceans improvement plans to preserve natural
focusing on shared water resources, Improving water quality capital are ongoing.
We understand how vital the
eliminating deforestation from our
In the US, Nestlé Purina is working oceans are, both for the resources In progress 63% of the volume of
supply chain, improving soil our 14 priority categories of raw
with farmers and other partners to they provide and their role in
management, protecting the
create wetlands and woodlands regulating global temperatures.
Assessing impacts materials are responsibly sourced.
oceans and preserving biodiversity. on biodiversity
along the Wabash River in Indiana In 2018, our largest shareholder,
and Illinois, allowing nutrients and Norges Bank, issued Ocean Biodiversity is challenging to
What we are doing sediment to be removed before Sustainability, a detailed document measure. Compared with
water re-enters the river. To date, highlighting the importance of GHG emissions, there is no
Stopping deforestation we have engaged with 13 farmers oceans and its expectations of simple metric, so many
We made a ‘no deforestation’ and our funding has enabled companies in managing the projects do not take outcomes
commitment in 2010 stating that 150 acres of floodplain to be oceans sustainably. Nestlé firmly on biodiversity into account.
none of our products or packaging restored, as well as a super gauge subscribes to the expectations Nestlé has been leading a
would be associated with installed in 2018 to provide water set out in this document. project with NGOs, national
deforestation by 2020. To quality data. governments and
accelerate this commitment in international organizations to
palm oil, we have partnered with Restoring depleted soil 77% of our global address this. We’ve developed
Airbus and TFT to implement Nestlé Purina is also working with a methodology to evaluate the
Starling, a satellite-based service,
supply chain is effect of biodiversity initiatives
The Nature Conservancy to help
to monitor 100% of our global palm fund the ReThink Soil initiative in the
deforestation free for and provide a valuable tool for
oil supply chains from 2019. The US Midwest, aimed at improving our commodities with decision makers.
program will be extended to cover soil management and restoring the greatest risk Read the full story

Reporting and governance

Our governance systems and approach to business ethics are fundamental
to our business. We provide detailed information on the topics below as well as
our comprehensive reporting processes online.
Our performance in leading indices

Doing business right Putting our values at the Advocating for change We are not driven by awards and recognition,
Ethical principles are fundamental to heart of what we do Our advocacy priorities are guided by but we’re proud to have our sustainability efforts
how we operate. This means zero our purpose to enhance quality of life and achievements acknowledged by world-
Building our business on clear
tolerance for fraud, bribery and and contribute to a healthier future. leading ratings and rankings agencies:
principles and sound governance
corruption, protection of personal data maintains trust in the Nestlé brand and
and open disclosure of tax payments. reduces risk in the value chain. Nestlé has been consistently listed in
the FTSE4Good responsible
Ethical business Governance and policies Public policy and advocacy investment index since 2011.
Ranked first out of 22 global food and

beverage manufacturers in the 2018
Prioritizing key issues Talking to the right people Collaborating for major Access to Nutrition Index™ (ATNI).
To ensure our sustainability efforts We always seek the advice of the best
change
Ranked second in the Food Products
keep up with a changing world, we experts and advocates to make Collaboration is an essential element industry of the 2018 Dow Jones
conduct a materiality analysis every Creating Shared Value as robust as it in our bid to tackle global issues Sustainability Index (DJSI), scored 100
two years. can be. like rising obesity, child labor and for Health and Nutrition performance,
and hold the leadership scores in the
climate change. Environmental and Social Dimensions.
Materiality Stakeholder engagement Partnerships and collective action

Retained our place in CDP’s
Climate A list.
Awarding good work Bringing new ideas to life Working toward the
The Nestlé CSV Prize is awarded every Through the CSV Prize and our open UN SDGs
two years to help expand initiatives that platform HENRi@Nestlé, we aim to Creating Shared Value is closely
address nutrition, water and rural nurture the ideas that will determine aligned with the UN’s 17 Sustainable
development. the future. Development Goals.
Creating Shared Value forum Supporting innovation Contributing to the Global Goals

About this report

Our 2018 Creating Shared Value progress report provides our shareholders and
stakeholders with a summary of our 2018 performance against our commitments.
We provide further detailed information online.
Reporting period, scope We use boundaries based on Reporting frameworks Our human rights reporting has been
Where to find more information
and boundaries operational control as this better Global Reporting Initiative evaluated as per Tier 1 assurance
reflects the reality of our operations. indicators of the UN Guiding This document forms an integral
This report covers our global This report has been prepared in part of Nestlé’s UN Global Compact
Principles Assurance Framework.
operations for the calendar year accordance with the GRI Standards: (UNGC) Communication on Progress,
Data scope and methodologies We address our responses to the
ending December 31, 2018. It Comprehensive option of the 2016 together with:
Unless otherwise noted, the framework in our Creating Shared
contains data for wholly owned Global Reporting Initiative’s (GRI) Our reports are available online
performance data included in this Value progress report.
companies and subsidiaries, but Standards, and the Food Our purpose
Nestlé – Annual Review 2018

excludes joint ventures and report corresponds to companies
Good Food, Good Life
Processing Sector Supplement,

Nestlé. Enhancing quality of life and contributing to a healthier future.
Annual Review 2018
Audience
We are dedicated to
advancing nutrition, health,
and wellness in a way that is
sustainable and responsible.
that are fully consolidated in our

Through our portfolio of
suppliers, unless specifically

products and services,
we offer people and their
and externally assured by Bureau

pets, tastier, healthier and
convenient choices for
all life stages and all times
of the day.
stated. ‘Markets’ refers to our financial statements. Veritas. See the full GRI Content We maintain ongoing dialogue with
business and/or activities at a a wide range of stakeholders
Front cover Contents Accompanying reports
Index. The GRI index is a nonprofit

Milo: Energy with purpose 2 Letter to our shareholders Corporate Governance Report 2018
Milo is an integral part of Nestlé’s Compensation Report 2018
efforts to promote healthier lifestyles 6 Pursuing our value-creating Financial Statements 2018
by encouraging sports and healthy strategy
eating habits amongst kids.
Each year the brand supports
10 Innovating for a changing world
grassroots programs, working with 14 Connecting through our brands
different partners to make a positive Online
difference in the lives of more than 30 Creating Shared Value
Nestlé. 22 million children.
42 Financial review You can find more information
Enhancing quality of life

about the Nestlé Group at
Our safety and health data covers

57 Corporate Governance and
interested in this report. They

www.nestle.com
Compliance
and contributing
national level, while ‘Zone’ refers to

Find out more about Creating Shared
65 Shareholder information Value at www.nestle.com/csv
to a healthier future.
organization that promotes _AR_2018_cover_EN.indd 1-4 19.02.19 13:47
geographic groups of markets. 308 000 employees, while economic sustainability and leads include investors, nongovernmental 2018 Annual 2018 Creating Shared
our environmental data refers organizations, think tanks, Review Value report
in the field of nonfinancial reporting.
This report is focused on progress to factories and warehouses, foundations, organizations, ESG
to date against our commitments with the exception of some UN Global Compact services, consumers and suppliers. Go to www.nestle.com/CSV, where you
and objectives, which are based on recent acquisitions. ‘Communication on Progress’ can also find more detailed governance
information, performance data, case
the most material issues. These
Every year, Nestlé submits its CoP
Currency conversion studies, and additional audio and
were updated during our most Our climate change disclosures All amounts cited in this report video content.
to demonstrate its commitment to
recent materiality assessment in conform with the Climate have been converted to Swiss
the Global Compact and the Ten Our Human Rights Index and
2018. The process reviewed Disclosure Standards Board francs (CHF) using the exchange
Principles on human rights, labor, GRI Content Index are available as
financial, operational and framework requirements. We also rates reported in the consolidated separate PDFs.
environment and anti-corruption.
reputational impacts throughout follow the standards of the financial statements of the Nestlé Our Corporate Business Principles are the
our value chain, as well as Greenhouse Gas (GHG) Protocol to Group 2018. basis of our company’s culture and are
UN Guiding Principles
assessing the issues that most establish our GHG inventory. available as a PDF.
Reporting Framework
influence the decision making of Contact us
our stakeholders. The results have See our response to the CDP The UNGP Reporting Framework
Investor Information Request for offers comprehensive guidance for We hope you find this report
informed the contents of this
comprehensive details of our companies to report on salient engaging and informative, and
progress report and our CSV web
climate change disclosures and human rights issues. This is in line continue to welcome your input Explore our full GRI Content Index
pages, in line with the GRI 2016
performance. with their responsibilities, as set and views: creatingsharedvalue@
Standards materiality principle
out in the UN Guiding Principles nestle.com See the awards and recognition
(see Reporting frameworks). we’ve received
on Business and Human Rights.

Independent assurance statement

We engaged a third-party organization, Bureau Veritas, to provide independent
assurance for this 2018 progress report. This process aims to provide assurance
to Nestlé’s stakeholders over the accuracy, reliability and objectivity of the reported
information, and to confirm that it covers our most material issues.
Summary Assurance Statement from

Bureau Veritas UK Ltd
Bureau Veritas UK Ltd. (Bureau Veritas) has
provided independent assurance to Nestlé SA
(Nestlé) over the 2018 Nestlé in society: Creating
Shared Value progress report (‘the CSV Report’)
published on the Nestlé website (https://www.
nestle.com/csv). The assurance process was
conducted in line with the requirements of the
AA1000 Assurance Standard (2008) Type 2 at
moderate level of assurance. The scope of
Bureau Veritas’ work was limited to Nestlé’s
head office based activities where Nestlé
consolidates and reconciles data provided by its
markets/countries of operation. The assurance
was provided over all data and text included in
the CSV Report and included an evaluation of
the CSV Report’s alignment to GRI Standards
and the RE100 criteria. It also included a review
of Nestlé’s human rights reporting against the
‘Tier 1’ Assurance Indicators of the UN Guiding
Principles Reporting Framework. Bureau
Veritas’ full assurance statement includes
certain exclusions, observations of good
practices, recommendations for improvement,
and a detailed assurance methodology and
scope of work.
The full assurance statement with Bureau

Veritas’ independent opinion can be found at :
https://www.nestle.com/csv/performance/
downloads.
London, March 2019

Our key performance indicators

Nestlé’s key performance indicators (KPIs) provide a focus for measuring and reporting
Creating Shared Value, sustainability and compliance. The performance summary below
forms part of our Communication on Progress for the United Nations Global Compact
Principles. Unless otherwise stated, performance indicators are for the calendar year
ending December 31, 2018.
To provide transparency for our stakeholders, we have indicated the The references in the GRI column relate to the applicable indicator from the 2016 GRI
correlation between our KPIs, our commitments and Global Reporting Standards. We report against these standards in line with our material issues, which are
Initiative (GRI) indicators in the table below. identified through our stakeholder engagement process and shape our public commitments.
Nestlé in society and Creating Shared Value key performance indicators GRI Standards 2018 2017 Page
Economic
Total Group sales (CHF million) (a) 91 439 89 791 AR p1
Net profit (CHF million) (b) 201-1, FP4 10 135 7183 AR p43
Nutrition
Products meeting or exceeding Nestlé Nutritional Foundation profiling criteria (as % of total sales) (c) 201-1 82.5 82.1 8
Percentage of total sales volume of consumer products which have been changed for nutrition and health FP7 9.1 8
considerations
Products analyzed and improved or confirmed via 60/40+ program (sales, CHF million) (d) 416-1 32 823 35 086
Products containing Branded Active Benefits (sales, CHF million) (e) Discontinued 6110
Products featuring Nestlé Nutritional Compass® labeling (% of sales worldwide) (f) 417-1 95.6 97.3 14
Products with guideline daily amounts (GDA) labeling on front of pack (% of sales) (g)
417-1 87.3 89.4 14
Products with specific Portion Guidance (sales, CHF million) (h) 417-1 Discontinued 40 100
Popularly Positioned Product SKUs (h) Discontinued 4746
Popularly Positioned Products (sales, CHF million) (h)
Discontinued 12 200
Nestlé television advertising to children under 12 in compliance with policies on responsible marketing (%) 417-3 Discontinued 97.4
Total number of countries where the Nestlé Policy and Instructions for Implementation of the WHO International 417-3 28 26 18
Code of Marketing of Breast-milk Substitutes practices were audited
Infant formula marketing staff in higher-risk countries trained on the WHO Code (% of staff) (i) 103-2 98.5 100
Rural development
Farmers trained through capacity-building programs 203-1 440 000 431 000
Direct procurement markets covered by SAIN programs (%) (j)
Discontinued 95
Percentage of purchased volume fully compliant with the Nestlé Supplier Code (k) FP1 61 57 28

Water (l)
Total water withdrawal (million m3) 306-1 75 74.2
Total water withdrawal (m3 per tonne of product) 303-1 2.33 2.36
Environmental sustainability
Production volume
Total production volume (million tonnes) 102-7 54.3 55.6
Materials
Raw materials used (million tonnes) 301-1 24 24.4
Materials for packaging purposes (million tonnes) 301-1 4.7 4.9 51
Packaging source optimization (kilotonnes saved) 301-1 15] 22.56
Energy
Total on-site energy consumption (petajoules) 302-1 88.3 92.9
Total on-site energy consumption (gigajoules per tonne of product) 302-1 1.63 1.63
Total on-site energy consumption from renewable sources (% total) 302-1 21.9 19.2
Total direct energy consumption (petajoules) 302-1 60.2 62.0
Total direct energy consumption from renewable sources (% total direct) 302-1 12.4 11.9
Total indirect energy consumption (petajoules) 302-1 67.8 73.3
Biodiversity
Total size of manufacturing sites located in protected areas (hectares) 304-1 18.8 18.8
Emissions, effluents and waste
Direct GHG emissions (million tonnes CO2eq) 305-1, 305-2 3.3 3.5
Direct GHG emissions (kg CO2eq per tonne of product) 305-1, 305-2 62 64
Indirect GHG emissions (million tonnes CO2eq) 305-1, 305-2 2.5 2.7
Indirect GHG emissions (kg CO2eq per tonne of product) 305-1, 305-2 47 48
Total water discharge (million m3) 306-1 75 74.2
Total water discharge (m3 per tonne of product) 306-1 1.39 1.34
Average quality of water discharged (mg COD/l) 306-1 41 83.8
By-products (kg per tonne of product) 306-2 30.5 29.9
Waste for disposal (kg per tonne of product) 306-2 0.6 1.1
Environmental sustainability governance
Manufacturing sites certified against ISO 14001 (% of total manufacturing sites) 103-2 96 97

Human rights and compliance

Total number of significant product recalls or incidents of noncompliance 416-2 6 12
Total number of FTSE4Good countries of concern, and number in which human rights impact assessments 103-2 12 12
have been carried out on Nestlé operations
Number of employees trained on human rights 412-1 101 613 96 599 32
Our people
Total workforce (number of employees) (m) 102-8 308 000 322 887 56
Total rate of new employee hires (%) (m) 401-1 11.1 10.7
Total rate of employee turnover (%) (m) 401-1 15.7 13
CARE gaps identified related to Business Integrity (n) 102-17 67 10
Of which: Minor 102-17 32 10
Major 102-17 0 0
Critical 102-17 0 0
Observation 102-17 35
Lost-time injuries and illnesses rate (per million hours worked) (employees, on-site contractors and on-site 403-2 Discontinued 1.66
members of public) (o)
Total recordable injuries and illnesses rate (per million hours worked) (employees, on-site contractors and 403-2 Discontinued 2.87
on-site members of public) (p)
Total number of fatalities (employees, on-site contractors and on-site members of public) (m) 403-2 3 2
Average hours of training per year per employee (q) 404-1 4.49 31.93
Leadership positions held by women (%) (r) 405-1 43.2 37.5 38
Local Management Committee members native to country in developing countries (%) (m)
202-2 83.01 78.0
a) Does not include joint ventures. g) Includes all F&B and Nestlé Waters except plain water. It excludes joint n) CARE, our global external audit program, is conducted by three audit
b) Includes Nestlé’s share in net result of joint ventures. ventures, Nestlé Nutrition, Wyeth Nutrition, Nestlé Health Science and companies and verifies that all employees and sites we own or operate
specific category/country exemptions. comply with local legislation, our Corporate Business Principles and
c) Total Nestlé (F&B except CPW, NHSc, Pharma, Nespresso, CPW and Code of Business Conduct. The audits take place every three years.
businesses not in GLOBE reporting) excluding non-edible products h) Tracking discontinued in 2018. New metrics to be defined in 2019.
(78.4% in 2016 with comparable baseline). i) We follow the FTSE4Good breast-milk substitute marketing criteria, o) Nestlé is not monitoring lost time anymore as we are more proactive to
which classify countries as ‘higher-risk’ if they have mortality rates for look at recordables.
d) In the 60/40+ program, Nestlé products tested with consumers must be
preferred over the competitor’s. Assessment results are valid for a under-fives of more than 10 per 1000, or more than 2% acute p) Nestlé is separating injuries from illnesses as we see mixing them is
maximum of three years if all parameters remain equal. malnutrition among under-fives. All other countries are ‘lower-risk.’ misleading information, since the maturity in reporting illnesses is still
j) Program discontinued. under development.
e) As of 2018, the KPI on sales of Products containing Branded Active
Benefits (BABs) is no longer reported. While we continue to implement k) In 2016, scope extended to include service and indirect materials with q) Training hours are based only on information recorded in the Learning
BABs where relevant, moving forward they will be included under total target of 50%. Management System (LMS). The numbers will be higher if manually
health claims made and will no longer be tracked as a separate recorded training hours were considered. Training hours per employee
l) Includes joint ventures. covers 100% employees in the system.
external measure.
m) Covers Nestlé employees registered in HR system (approximately 84% r) Nestlé has changed the definition of this KPI and moved from a
f) PetCare, Gerber Life, Nestlé Health Care Nutrition, Wyeth Nutrition, of all employees).
other Nestlé Health Science businesses and non-Nestlé-branded definition driven of the job catalogue to a definition based on grades.
products in Nestlé Waters are out of scope. Unfortunately, we are not able to calculate backwards and hence not
able to provide adjusted figures for 2017.

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Good Food, Good Life

Creating Shared Value and

Nestlé. Enhancing quality of life and

Welcome to this 2018 Creating Shared Value progress report.

A message from our Chairman and CEO 7 Offering tastier and

Creating Shared Value progress report 2018 2

Creating Shared Value

Focus on key areas To better connect financial with

Read more about CSV

Read more about our

Focusing on our process, harnessed the

and growth categories.

Creating Shared Value progress report 2018 4

Our 2020 commitments and progress Status of our commitments

New In progress Achieved

For individuals Our 2030 ambition

Creating Shared Value progress report 2018 5

2030 Ambition To help 50 million children lead healthier lives.

Nestlé for by rigorous research, which we • Inspiring people to lead

Creating Shared Value progress report 2018 6

Why it matters Our contribution

Offering tastier and without artificial colors and flavors is growing,

How we map our material

Creating Shared Value progress report 2018 7

Launching more nutritious products

Why it matters Making nutrition affordable Ensuring quality nutrition

Creating Shared Value progress report 2018 8

Reducing sugars, sodium and fat

cardiovascular disease. Reducing removed from our foods and beverages.

What we are doing tastes consumers enjoy. To date, we

Creating Shared Value progress report 2018 9

Adding vegetables, fiber and whole grains

Why it matters What we are doing We make every effort to ensure

Creating Shared Value progress report 2018 10

Simplifying ingredient lists

Why it matters inspired by the regional cuisines of Focusing on natural colors

Creating Shared Value progress report 2018 11

Why it matters daily allowance of the respective companies assessed by the

Creating Shared Value progress report 2018 12

Why it matters Our contribution

Our commitments to inspiring Malnutrition comes in many forms:

Creating Shared Value progress report 2018 13

Providing nutritional information

Why it matters permitted by national regulations. Improving and extending

Creating Shared Value progress report 2018 14

Offering portion guidance

Why it matters With clear information on-pack,

Creating Shared Value progress report 2018 15

Marketing healthy choices

Why it matters What we are doing Progress against our objectives

Creating Shared Value progress report 2018 16

Promoting healthy behaviors in children

Why it matters ambition to help 50 million children

Creating Shared Value progress report 2018 17

Progress against our objectives

Creating Shared Value progress report 2018 18

Encouraging healthy hydration

Why it matters Boosting healthy

Creating Shared Value progress report 2018 19

Health-promoting food environments

Creating Shared Value progress report 2018 20

Why it matters We use the findings from our long-term studies

Building, sharing and

A message from our Chairman and CEO 7 Offering tastier and