Creating Shared Value Report 2019 en

Creating Shared Value
and meeting our commitments
Progress Report 2019

Nestlé. Enhancing quality of life and
contributing to a healthier future.
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 02
A message from our Global Compact LEAD company in recognition

of our ongoing commitment to achieving the
Last year, we also committed to achieve zero
net greenhouse gas emissions by 2050,
03 Creating Shared Value
Chairman and CEO UN Sustainable Development Goals (SDGs). stepping up our climate change mitigation 05 Our 2020 commitments
efforts and embracing the most ambitious and progress
This report provides a detailed overview of
aim of the Paris Agreement. Among other
how Nestlé is making a difference across our 06 For individuals and families
Nestlé. Enhancing quality of three impact areas – individuals and families,
measures, we are expanding our range of
plant-based food options that have a better 07 Offering tastier and
life and contributing to a communities and the planet.
environmental footprint and can contribute to healthier choices
healthier future. In early 2019, we accelerated actions to a balanced diet.
13 Inspiring people to lead
tackle plastic waste and make good on our
Our work extends beyond the environment. healthier lives
Creating Shared Value lies at the very heart of ambition to make 100% of our packaging
We also announced a new gender-neutral
how we do business at Nestlé. Our approach is recyclable or reusable by 2025. We more 21 Building, sharing and
parental leave and support policy for our
built on the conviction that business can be a recently announced an investment of up to applying nutrition
employees, as part of our broader efforts to
force for good, by simultaneously creating CHF 2 billion to boost the market for food- knowledge
support diversity and inclusion. Our aim is to
value for shareholders and for society at large. grade recycled plastics and to accelerate the
support families and help provide children 24 For our communities
development of innovative sustainable
In 2019, we reaffirmed our support for the UN with the best start in life. 25 Enhancing rural
packaging solutions.
Global Compact. We were again named a development and livelihoods
In this report, you will find more details about
our progress as a company in the areas where 31 Respecting and promoting
we can make the biggest impact. The work human rights
carried out during 2019 brought us closer to
fulfilling our 2020 commitments. We are on 36 Promoting decent
track to meet most of them and we will employment and diversity
continue to work hard to achieve the others. 40 For the planet
We look back on the work achieved over the 41 Caring for water
last decade with pride. Looking ahead, we
remain as committed as ever to Creating 46 Acting on climate change
Shared Value in 2020 and beyond. 49 Safeguarding the
environment
55 Reporting and governance
56 About this report
Paul Bulcke U. Mark Schneider 57 Independent assurance
Chairman Chief Executive Officer
statement
58 Our key performance
indicators
Creating Shared Value In order to achieve these ambitions, we have

formulated a series of public commitments
that we operationalize across our business.
Creating Shared Value (CSV) We report on our progress every year.
Particular emphasis is on global initiatives to
is fundamental to how we do promote healthier lives for children, help
business at Nestlé. We believe young people access economic opportunities
that our company can only be and demonstrate our protection of water
resources. We also act decisively to tackle the
successful in the long term current plastic pollution challenge and are
by creating value both for our working to become carbon neutral.
shareholders and for society.
Measuring shared value
Our activities and products
We continue to explore ways to better
should make a positive difference measure our impact and the shared value
to society while contributing to we create. Our goal is to invest with greater
confidence and continue to build trust with
Nestlé’s ongoing success.
stakeholders by demonstrating tangible
results. We welcome work in this area so
The business case for Creating that it can inform our own methodology
Shared Value and stimulate further debate on this
important topic.
Creating Shared Value is about ensuring
long-term sustainable value creation for Read more about CSV
shareholders while tackling societal issues at

Read more about our reporting and governance
the same time. Companies that create shared
value demonstrate that business can be a
force for good.
We focus our work on three interconnected
impact areas: the individuals and families
who place their trust in our products and
brands; the communities where we operate;
and the planet. We are driven by our purpose
to enhance quality of life and contribute to a
healthier future. Our 2030 ambitions are:
• For individuals and families, to help
50 million children lead healthier lives.
• For our communities, to improve 30 million
livelihoods in communities directly
connected to our business activities.
• For the planet, to strive for zero
environmental impact in our operations.
Focusing on our Our 2018 materiality assessment

In 2018, the materiality process was evolved
materiality assessment integrated with the
Enterprise Risk Management process,
material issues to bring both non-financial and financial risk

identification together and to connect it more
harnessed the perspectives of mainstream
investors, and engaged with key markets and
growth categories.
closely to business operations. In addition to
Trends affecting our industry identifying and prioritizing issues from
The food and beverage industry is impacted internal and external stakeholders, the 2018
by a range of trends. Changes in consumer
tastes and a growing interest in personalized
Nestlé materiality matrix (as assessed in 2018)
nutrition are transforming how we develop
our product portfolio. As knowledge about
the impact of plastic pollution grows, we must Natural resource and water stewardship Supply chain stewardship
Climate change Over- and under-nutrition
continue to investigate alternative materials
and delivery systems. The scale and
Major
complexity of our global supply chain present
an increased risk of human rights abuses.
Therefore, we work hard to ensure our
standards and policies are upheld. To
determine which global trends have the
Importance to stakeholders
biggest impact for Nestlé, we regularly

Women’s empowerment Rural development and poverty alleviation Food and product safety
conduct a thorough materiality analysis. Community relations Human rights Changing consumer demographics and trends
The materiality process

Business ethics Product packaging and plastic
Significant
Responsible marketing and influence

Our comprehensive materiality analysis is Product quality
Food and nutrition security
carried out every two years. This helps us
Resource efficiency, (food) waste and
to identify the economic, social and the circular economy
environmental issues that matter most Land management in the supply chain
to our business and our stakeholders.

Conducting a thorough analysis in this Animal welfare Product regulation and taxation
way helps to identify issues to be covered Employee safety, health and wellness Geopolitical uncertainty
in our reporting and to decide where to Decent employment and equal opportunities Responsible use of technology
Moderate
Data privacy and cyber security

focus our internal resources.
Moderate Significant Major
Impact on Nestlé’s success
For individuals and families For our communities For the planet
Note: Natural disasters, identified as an issue relevant to Nestlé, fell under the negligible category and so has been omitted from our materiality matrix
Our 2020 commitments and progress

Status of our commitments
New In progress Achieved
For individuals and families For our communities For the planet
Enabling healthier and happier lives Helping develop thriving, resilient communities Stewarding resources and the environment
Our 2030 ambition is to help 50 million children lead Our 2030 ambition is to improve 30 million livelihoods in Our 2030 ambition is to strive for zero environmental
healthier lives communities directly connected to our business activities impact in our operations
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 address Roll out our Nestlé Work to achieve Provide climate Improve the
and beverages that are nutrition information on nutrition knowledge from economics among the human rights impacts needs YOUth initiative water efficiency and change leadership environmental
nutritious, especially for packs, at point-of-sale the first 1000 days farmers who supply us across our business across all our operations sustainability across our performance of
Promote
mothers-to-be, new and online through to healthy aging activities operations our packaging
Improve food Enhance gender transparency and
mothers, and infants and
Offer guidance on Build biomedical availability and dietary Improve workers’ balance in our workforce Advocate for proactive, long-term Reduce food loss
children
portions for our products science leading to diversity among the livelihoods and protect and empower women effective water policies engagement in and waste
Further decrease health-promoting farmers who supply us children in our agricultural across the entire value and stewardship climate policy
sugars, sodium and Leverage our Provide meaningful
products, personalized supply chain chain
saturated fat marketing efforts to Implement Engage with and accurate
nutrition and digital
promote healthy cooking, responsible sourcing in Enhance a culture of Advocate for healthy suppliers, especially environmental
solutions
Increase vegetables, eating and lifestyles our supply chain and integrity across the workplaces and healthier those in agriculture information and dialogue
fiber-rich grains, pulses, promote animal welfare organization employees
Empower parents, Raise awareness on Preserve natural
nuts and seeds in our
caregivers and teachers Continuously Provide effective water conservation and capital
foods and beverages
to foster healthy improve our green coffee grievance mechanisms improve access to water
Simplify our behaviors in children supply chain to employees and and sanitation across our
ingredient lists and stakeholders value chain
Support Roll out the Nestlé
remove artificial colors
breastfeeding and protect Cocoa Plan with cocoa
Address under- it by continuing to farmers
nutrition through implement an industry-
micronutrient fortification leading policy to market
breast-milk substitutes
responsibly
Inspire people to
choose water to lead
healthier lives
Partner for
promoting healthy
food environments
For individuals and families 2030 ambition: To help 27.2 million children reached
Enabling healthier and happier lives 50 million children through Nestlé for Healthier Kids
in 2019
lead healthier lives
each year Offering tastier and healthier choices
We offer healthier versions of existing
Food is a pillar of culture, bringing people
products by reducing sugars, sodium and fat
together and providing nutrition that is key to
and increasing whole grains, vegetables and
good health. To ensure a healthy future for all
micronutrients. We are also making our
through sustainable nutrition, we must work
ingredient lists clearer and simpler to enable
together. At Nestlé, this is a responsibility we
consumers to better understand exactly what
take seriously.
they are eating and drinking (pages 7–12).
Good nutrition is vital. Poor nutrition or
malnutrition, on the other hand, contributes Inspiring people to lead healthier lives
to a number of growing public heath We have designed a range of projects and
challenges, with an estimated 149 million campaigns aimed at supporting parents and
children under 5 stunted and 49 million caregivers, providing them with the
wasted, and a further 40 million overweight information they need to build healthy habits
(WHO). We are continuously developing our for their families. We encourage children to
product portfolio to offer consumers more get active through mobile apps, websites and
affordable, nutritious and natural options sports competitions. Additionally, a range of
and services to support a healthier, more national campaigns provide a platform to
sustainable lifestyle and an enhanced highlight the benefits of healthy habits.
quality of life. (pages 13–20).
We invest in robust research programs, Building, sharing and applying
developing a knowledge base to deliver
nutritious products tailored to the needs of nutrition knowledge
people, especially children, mothers and We continuously engage with healthcare
mothers-to-be. Improving diets and professionals to share our current nutrition
establishing healthy behaviors globally is a joint knowledge. We are focusing our efforts on
effort. We share the findings of our research accelerating the development of innovative
with members of the health community products that address consumer nutritional
worldwide to encourage collaboration. needs, working to bring them to market
faster. With an increasing trend toward
We have identified the three following focus personalized nutrition, we are expanding our
areas to help us achieve this goal. work in this area to ensure we meet our
consumers’ demands (pages 21–23).
Offering tastier and healthier choices

Why it matters
Consumers are increasingly making informed
decisions about the foods and beverages
they consume and their nutritional value.
Taste, however, remains the main deciding
factor when people choose what to eat. We
aim to make a meaningful impact on people’s
diets and offer healthier versions of existing
products that still retain the taste consumers
expect. Through our products, services and
research, we are developing a more
personalized approach to nutrition. This
means not only supporting changing
consumer preferences but also providing
affordable nutrition for all.
Our contribution
We are increasing our focus on natural,
Our commitments to offering tastier Our work on offering tastier and plant-based foods and beverages. By
and healthier choices healthier choices contributes to removing artificial colors and adding
the following SDGs: micronutrients and whole grains, as well as
08 Launch more foods and beverages
reducing sugars, sodium and saturated fat in
that are nutritious, especially for
our existing products, we are improving the
mothers-to-be, new mothers, and
nutritional profile across our portfolio.
infants and children
Simplifying ingredient lists also makes it

How we map our material issues to
09 Further decrease sugars, sodium the UN SDGs and their targets easier for consumers to understand the
and saturated fat content of their food and make better-
informed choices.
10 Increase vegetables, fiber-rich grains,
pulses, nuts and seeds in our foods
and beverages
11 Simplify our ingredient lists and
remove artificial colors
12 Address under-nutrition through
micronutrient fortification
Launching more Why it matters

Nutrition is fundamental to ensuring healthy
Expanding our all-natural offerings
Increasingly, consumers want products that
nutritious products development in children. It can be a challenge

for parents to ensure their kids are eating and
include natural ingredients. Recognizing this
trend, in Europe we launched the Nesquik All
living well. If healthier versions of foods do Natural range, which includes Nesquik All
not taste good, kids simply will not eat them. Natural, an instant cocoa beverage to be
Our commitment prepared with milk, and our new Nesquik All
Our aim is to help parents by providing foods
Launch more foods and and beverages, including more plant-based Natural Porridge, which contains whole grain
oats and less than 5 g of total sugars per
beverages that are nutritious, options, that are nutritious and that kids love.
serving. With parents seeking more nutritious
especially for mothers-to-be, What we are doing and natural food options for their families,
new mothers, and infants We are committed to delivering more
and children in Europe falling far below
recommended dietary fiber intake levels,
and children nutritious products to kids and families.
Nesquik All Natural Porridge contributes to a
We are also accelerating the transformation
Our objective nutritious breakfast. Learn more about how
of our product portfolio as we add more
By 2020: In both developed and developing we are developing our products to offer kids
products that offer consumers choice, Developing healthy snacks
countries, design and launch foods and a healthy and nutritious breakfast.
including reduced-sugar and no-added- for kids in Brazil
beverages that address the daily nutritional sugar options. In particular, we are rapidly Launching organic cereals for kids Ninho is a plant-based,
needs and key nutritional gaps of infants, growing our range of organic foods and Nestlé Ceregrow, launched in India in 2019, ready-to-drink product,
children up to age 12, new mothers and beverages for children and families, as well is a ready-to-cook children’s breakfast launched in Brazil in 2019.
mothers-to-be as our plant-based offerings. cereal made from 100% organic wheat, The drink, for children aged
In progress milk and ragi. In addition to containing natural four and over, contains a mix
Transforming our portfolio
ingredients, Ceregrow is also a good source of oats, peas and real fruit.
In 2019, we introduced 1398 new nutritious
of vitamins, minerals and iron for children.
products for babies, children, mothers-to-be

Read more online
or new mothers. The products contain less Read more about this commitment
sugar and salt, more vegetables, fiber-rich
grains, milk, lean proteins, and essential
vitamins and minerals. Examples of products
include Milo, with reduced-sugar and
no-added-sugar options in Asia, Oceania and
South America, and further continuation of
Nescau reduced-sugar products in Brazil.
Reducing sugars, Why it matters

Overconsumption of sugars, sodium
We continue to seek new ways of lowering
sugar levels, including through investing in
sodium and fat

breakthrough technologies. To date, we have
and saturated fat contributes to dietary
achieved an overall 3.5% reduction, equivalent
and health problems. This includes
to around 45 000 tonnes of sugars. We are
increased risk of obesity, diabetes and
working to reach our 5% target through
cardiovascular disease.
Our commitment investment in research and development
Further decrease sugars, To help reduce consumption of these (R&D) to develop new technologies, and the
nutrients and contribute to improving public introduction of new reduced-sugar and
sodium and saturated fat health, we are undertaking complex no-added-sugar products.
reformulations of our foods and beverages.
Reducing sodium in our products
When we make these changes, we must be
Our sodium-reduction objective applies to
Our objectives careful not to alter how our products taste or Reducing saturated fat in
feel, as this could encourage consumers to products not yet aligned with our sodium
By 2020: Reduce the sugars we add in our Asian noodles
choose less healthy alternatives. targets based on the WHO’s recommended
foods and beverages by 5% to support In 2019, we introduced a locally
maximum daily intake of 2000 mg. We aim to
individuals and families in meeting global grown, nutritionally superior oil
recommendations* What we are doing deliver an overall 10% sodium reduction by
into the production of our
the end of 2020. We need to keep meeting our
In progress Reducing sugar content popular Asian noodles. We plan
consumers’ preferences while gradually
The World Health Organization’s (WHO) to launch the new noodles, with
reducing levels of sodium. Breakthrough
By 2020: Reduce the sodium we add in our strictest conditional recommendation is significantly reduced levels of
solutions that maintain the taste consumers
products by 10% to support individuals and to reduce daily intake of free sugars to saturated fat, in 2020.
prefer allow us to make reductions, not only in
families in meeting global recommendations* less than 5% of total energy intake.
products in scope but also in those already Read more online
In progress Currently, 45% of our products meet this
meeting WHO recommendations. Across our
recommendation, another 45% fall under our
culinary range, by the end of 2019 we had
By 2020: Complete the 10% commitment sugars commitment and 10% are not relevant
removed more than 6500 tonnes of salt.
taken in 2014, to reduce saturated fat by 10% as their sugar content is regulated, for
in all relevant products that do not meet the example, by CODEX (international food Read more about this commitment
Nestlé Nutritional Foundation (NF) criteria standards and codes of practice).
with respect to saturated fat*
In progress
Reducing sugars
All Nestlé foods and beverages
45% 45% 10% Our foods and beverages

out of scope of this
Our foods and beverages Our foods and beverages commitment as their sugar
that provide less than 5% in scope of our content is regulated (for
sugars (added)* commitment** example, by CODEX)
* These results apply to products within the scope of our

commitment, not to our global product range as many * For example, milk powder, culinary products, coffee and waters
of our products already meet recommended levels ** For example, confectionery products, Nesquik, Milo and coffee mixes
Adding vegetables, Why it matters

Our studies show that many people,
Adding more fiber and whole grains to
our breakfast cereals
fiber and whole grains especially children, do not consume enough

sources of fiber, vitamins, minerals and
Roughly 11 million deaths worldwide are
associated with poor diet (The Lancet), with
nutrients, found in food such as vegetables, whole grains being one of the biggest
grains, bran, pulses, nuts and seeds. This dietary shortfalls. Since 2003, we have
Our commitment increased the use of whole grains by 50%,
risks harming their growth, development
Increase vegetables, fiber-rich and health. and today over 99% of our breakfast cereals
meet the CODEX requirement of at least 3 g
grains, pulses, nuts and seeds There is also a lack of awareness and of whole grain per 100 g serving as the source
in our foods and beverages understanding among consumers of the of fiber.
importance of these vital ingredients. In some
Our objectives parts of the world, Nestlé products are one of In 2019, whole grain was the main ingredient
By 2020: Add to our products at least the leading sources of whole grain intake. It is in over 99% of our ready-to-eat breakfast
Satisfying consumers with
750 million portions of vegetables, important that we continue to encourage cereals for children and teenagers, and in
healthier pizza
300 million portions* of nutrient-rich grains, 100% of our cereals carrying the green banner
greater consumption of nutrient-rich foods. To satisfy the needs of health-
pulses and bran, and more nuts and seeds are made with a minimum 8 g of whole grain
Through activities such as our participation in conscious consumers looking
per serving, achieving our objective.
Achieved the global Whole Grain Initiative, we are to consume more vegetables,
helping to increase consumer awareness of Although we have achieved our two our California Pizza Kitchen
By 2020: In addition to whole grain already the importance of whole grains and promote objectives for 2020, we continue to work business is leveraging on-trend
being the main ingredient in our ready-to-eat their consumption. toward our overall commitment of increasing ingredients to create a
breakfast cereals for children and teenagers, vegetables, fiber and whole grains. As an cauliflower crust.
all our Nestlé-branded cereals that carry What we are doing example, our Nesquik breakfast cereals
Green Banner will be a source of fiber** In addition to putting more of these vital contain over 50% whole grains as well as
and made with whole grain*** ingredients into our recipes, we promote being a source of vitamins****, iron****,
Achieved healthy cooking at home and provide calcium**** and fiber.
nutritional advice on packs and online.
Read more about this commitment
Calculating increases of serving sizes is highly
complex. In 2018, our cautious approach
to the data led us to underestimate the
increases achieved. In 2019, we strengthened
and refined our data gathering and analysis,
implementing new tools to ensure robust,
transparent figures. We are now confident
that we have met our 2020 objective, with
403 million portions of fiber-rich grains and
2.76 billion portions of vegetables added
* A portion of fiber-rich grains is the amount of grain by the end of 2019, measured against the
product (variable, depending on the type of grain, type baseline of 2016.
of product, etc.) that contains 16 g of whole grains
** All products that carry 3 g or more of fiber per 100 g
on pack nutrition table
*** Having a minimum of 8 g of whole grain per serving ****Except in countries in which fortification is not permitted
Simplifying Why it matters

Increasingly, people want to know what is in
Simplifying ingredient lists
We continued simplifying our recipes in our
ingredient lists the foods and beverages they consume – and

whether the ingredients are nutritious, fit into
beverage, dairy, food, professional, waters,
confectionery, ice cream, nutrition and Nestlé
a healthy lifestyle and are sustainably sourced Health Science businesses.
and manufactured. We can meet these We have set up and reinforced an internal
Our commitment
expectations by being clear about what our cross-disciplinary team to consider how
Simplify our ingredient lists products contain, how we express this on products can be simplified by only using
and remove artificial colors packs and by getting rid of ingredients that ‘kitchen cupboard’ ingredients – ingredients
may be unfamiliar to consumers. that people know and love and are likely to
Our objectives find at home. Our entire Maggi portfolio in
By 2020: Continue removing What we are doing Nestlé Russia is now made with ‘kitchen
unfamiliar ingredients We are transforming products by removing cupboard’ ingredients. We are continuously
In progress artificial colors and ingredients that working to reformulate and innovate our
consumers do not recognize. We also provide products to contain more instantly
By 2020: Remove all artificial colors simpler labels with clear information. recognizable ingredients.
Launching a simplified, natural
from our products*
Removing artificial colors Among the products launched in 2019 using cocoa powder in Europe
In progress
In 2019, we continued to remove artificial simple, natural ingredients and flavors were Launched in Europe in 2019,
colors from our food and beverage recipes. Nestlé Coffee-Mate Natural Bliss plant-based Nesquik All Natural offers a
Currently, 1.67% by weight of the colorants Half and Half (half almond milk and half cocoa beverage with a simplified
used in our foods and beverages is defined coconut cream) and Nestlé Coffee-Mate ingredients list containing just
as artificial. Natural Bliss Oat Milk creamers. Nescafé five natural ingredients. The
Coffee Protein Smoothie, launched in the US, powder also uses less sugar and
We continue to seek non-artificial color
is made from real coffee and contains no is sold in recyclable paper
solutions that are acceptable in both
artificial flavors, carrageenans (a seaweed packaging.
performance and cost. However, there
extract) or sweeteners. Nestlé Cold Whipped
are challenges. Sometimes it is difficult to
Latte, also launched in the US, includes seven
Read more online
change to non-artificial colors that provide
all-natural ingredients.
the same consumer experience and meet
demands for affordable pricing. Wherever Read more about this commitment
this is an issue, we work with suppliers to
find suitable solutions.
* This objective does not currently apply to our pet

food products
Micronutrient Why it matters

Around one-third of the world’s population
• Increase micronutrient accessibility
through partnerships, new routes to market
fortification
and affordability strategies.
lacks essential vitamins and minerals (Global
Nutrition Report). This can lead to serious In 2019, we focused our activities in our Zone
health issues, such as impaired growth and AOA (Asia, Oceania and sub-Saharan Africa),
physical and intellectual development, as running projects in eight countries.
Our commitment
well as compromised immunity.
Address under-nutrition Delivering solutions
It is estimated that by 2025, the We are continuing to fortify relevant foods and
through micronutrient nutrition crisis will cost society around beverages with the micronutrients most
fortification USD 3.3 trillion (CHF 3.12 trillion) per year commonly lacking in local diets. In 2019, we
(Global Access to Nutrition Index). Nestlé delivered 185.4 billion fortified servings
Our objectives is helping tackle this by fortifying foods (including 9 billion from our joint venture Cereal
By 2020: Reach millions of children and and beverages with micronutrients that are Partners Worldwide (CPW)), incorporating at
families with fortified foods and beverages unavailable or lacking in local diets, focusing least one of the Big 4 micronutrients (iron,
In progress particularly on children and families in iodine, vitamin A and zinc, as defined by the
developing and high-priority countries. WHO) in 64 countries with higher vulnerability
By 2020: Initiate or support collective to micronutrient malnutrition.
action to reduce micronutrient deficiencies What we are doing
in 10 countries Of our popularly positioned products for
Micronutrient deficiencies are a serious
lower-income consumers, 87% were fortified
In progress public health challenge. We believe we can Tackling iron deficiency in
with at least one of the Big 4. As a result of
help tackle it by fortifying a significant Sri Lanka
By 2020: Continue to develop the supply our global efforts, we ranked first out of the
proportion of our nutritious foods and
chain for biofortified crops and expand our 22 largest food and beverage manufacturing At the request of the Sri Lankan
beverages. Collective action is key to
fortified portfolio companies assessed by the 2018 Access to Government, we implemented
achieving more. We work with governments,
Nutrition Index (ATNI) in the category of a series of multi-pronged
In progress non-governmental organizations (NGOS),
Addressing Undernutrition. The next initiatives in the country to raise
the professional nutritional community and
assessment will be in 2020. awareness of iron deficiency,
retailers to:
supporting health professionals
• Raise micronutrient fortification (MNF) We aim to use more biofortified maize in
in the field and using chat bots
on the agenda at political, research or cereal products, particularly in Nigeria. In
to speak with consumers.
consumer levels. addition to using as much biofortified maize
as possible, we actively participate in
Read more online
• Advocate the inclusion of MNF in
workshops and forums on biofortified crops.
national nutrition plans.
• Build multi-stakeholder platforms in Read more about this commitment
support of MNF.
• Develop education or social
marketing campaigns with
governments and other bodies.
• Further research into MNF deficiencies.
Inspiring people to lead healthier lives

Why it matters This strategy helped us to progress faster in
implementing our commitment to double
Approximately 1.9 billion adults globally are
outreach by 2020 by focusing the
obese or overweight, with 462 million more
communication actions of our bigger brands
underweight. Adding to the problem,
for more impact.
52 million children under the age of 5 have
low weight for their height and 40 million are We support individuals and families
overweight or obese (WHO). throughout their lives, from conception to old
age. Our dedicated R&D teams create healthy
Regardless of demographic, there has been
products that address a range of nutritional
a clear upward trend in the levels of refined
requirements. Additionally, we run a variety of
grains and sugars in global diets and a
campaigns and collaborate with other industry
decrease in nutrient-rich foods such as fruit,
partners to offer information on topics such as
vegetables and whole grains (Global Nutrition
healthy hydration and infant nutrition,
Report). At Nestlé, we want to help consumers
encouraging people to live healthier lives.
live healthier lives by providing transparent
nutrition information and inspiring them with
healthier recipes and lifestyle tips.
Our contribution
Our commitments to inspiring people Our work on inspiring people to
We are on track to meet most of our
to lead healthier lives lead healthier lives contributes to
commitments by 2020. We have been able
the following SDGs:
14 Apply and explain nutrition information on to achieve this by developing a range of
packs, at-point-of-sale and online programs to promote healthier lives globally,
in line with the SDGs related to zero hunger,
15 Offer guidance on portions for our products
good health and reducing inequalities.
16 Leverage our marketing efforts to promote
Through our brands, we promote healthy
healthy cooking, eating and lifestyles
cooking and eating as well as active lifestyles
17 Empower parents, caregivers and teachers
How we map our material issues to encourage adults and children to lead
to foster healthy behaviors in children to the UN SDGs and their targets healthier lives, while we continuously work
to provide clear and easily understandable
18 Support breastfeeding and protect
nutrition and portion information both on
it by continuing to implement an industry-
packs and online.
leading policy to market breast-milk
substitutes responsibly
19 Inspire people to choose water
to lead healthier lives
20 Partner for promoting healthy
food environments
Providing nutritional Why it matters

Our consumers want to make informed
In June 2019, we announced our support for
Nutri-Score as the preferred front-of-pack
information
labeling initiative for food and beverage
decisions about their food and beverage
products in Continental Europe. We are
choices. We have a responsibility to
committed to implementing it at scale,
communicate about our products
starting in countries that already support the
transparently and comprehensively, including
Our commitment initiative. Nutri-Score is a color-coded system
ingredients and nutritional values.
Apply and explain nutrition that classifies products according to their
It is important that we provide consumers with nutritional profile, with a scale from A
information on packs, at easy-to-understand information. We align (healthier choices) to E (less healthy choices).
point-of-sale and online with external front-of-pack labeling initiatives Read more about Nutri-Score on our website.
to ensure the nutritional information of our
Our objective Updating the Nestlé Nutritional Compass
foods and beverages is visible and clear.
By 2020: Continue providing detailed product The Nestlé Nutritional Compass has been
nutrition facts with daily value percentages, What we are doing displayed on our product packaging since
ingredients and allergens, and add special diet Improving nutrition information on packs 2005 and is now featured on 96.4% of
information, nutrition labeling explanations packaging. The Compass brings together
As regulations for front-of-pack nutrition
and healthy eating tips on all our relevant nutritional information, explanations of what
labeling vary from market to market, there are
packs, as well as on our websites and e-retailer this information means for consumers and
challenges associated with identifying a
sites, to better enable informed choices how the product fits into a balanced and
global approach that is quickly and easily
In progress healthy diet. Research performed by the
understandable for consumers. We started
Consumer Goods Forum found that 55% of
implementing Guideline Daily Amount (GDA)
consumers want more information on social,
in 2014, which is now present on 88% of our
health, environmental and safety issues
products, as part of our wider commitment to
related to products. We are now in the
provide consumers with transparent
process of investigating how best to display
information about the nutritional value of
this on our packaging. Developing Ask Nestlé in India
our products.
Governments around the world are Read more about this commitment Helping parents better
increasingly endorsing interpretive front-of- understand the unique nutrition
pack labeling initiatives, such as the Health requirements of their children, we
Star Rating in Australia, the color-coded developed Ask Nestlé in India.
initiative in the UK and Ireland, and warning The online portal provides
labels in some Latin American countries. information on nutritional needs
In such cases, we are committed to as well as an easy-to-understand
implementing local initiatives across our recipe directory.
relevant product portfolio.

Read more online
Offering portion Why it matters

Globally, there is a lack of understanding about
What we are doing
Expanding on-pack portion guidance
guidance what a good food portion looks like. Although
sizes in general are increasing, intake of
Currently, Nestlé Portion Guidance is provided
on 61.9% of our products.
nutrient-rich foods such as vegetables and The intention of the Nestlé Portion Guidance
whole grains are simultaneously declining – initiative is to engage consumers on
Our commitment
which can contribute to adverse health considering responsible portions, right at the
Offer guidance on portions outcomes (Cochrane). point-of-sale and moment of usage – in other
for our products We are well placed and committed to words, when their decision about foods and
contributing to solutions through our Nestlé beverages quantity is made.
Our objectives
Portion Guidance initiative, designed to help In addition, we strive to provide our consumers
By 2020: Continue providing guidance on
consumers make informed food choices as with nutrition information per portion of
portions globally on all children’s and family
part of a balanced diet. product in the nutritional information table.
product packs and add frequency of
In countries where portion guidance is closely
consumption indications on relevant products
regulated, we follow the local regulations
In progress
deemed relevant to our consumers. Partnering for portion sizes
in Australia
By 2020: Extend our guidance on portions Read more about this commitment
to our consumer recipes, and relevant In Australia, we are chairing an
teenager and adult products Industry Best Practice Guide
In progress
Working Group, as part of the
Government’s Healthy Food
By 2020: Gradually increase the proportion Partnership strategy. This
of guidance on portions provided through collaborative initiative is
product form, pack design, serving device designed to tackle the numbers
or dispenser to make it even more intuitive of overweight and obese in
than on-pack messaging the country.
In progress

Read more online
Marketing Why it matters

Our expertise is in making nutritious foods
Partnering with the Global Alliance
for Responsible Media
healthy choices and beverages that support a healthy

lifestyle. We want to share it with consumers
To guide our online marketing efforts this year,
we continued our participation in the World
worldwide. Through the scope and power of Federation of Advertisers (WFA). Through the
our marketing, we are promoting more WFA, we are partnering with 16 other
Our commitment advertisers, including global companies such
nutritious options to consumers – responsibly
Leverage our marketing and transparently. as Unilever, Adidas and P&G, to form the
Global Alliance for Responsible Media. The
efforts to promote healthy We target our marketing efforts toward Alliance will work with publishers and
cooking, eating and lifestyles parents and caregivers, helping them to make platforms to ensure safe online environments.
informed decisions on how to keep their It also forms part of Nestlé’s wider strategy of
Our objective children and families healthy. We have also being safe, transparent and accurate in our
By 2020: Double the outreach of our developed robust guidelines to restrict advertising on digital platforms.
efforts to promote healthy cooking and marketing that targets children.
eating and healthy lifestyles for individuals, Leading the industry in marketing
families and their pets What we are doing compliance
Encouraging cooking with
In progress Implementing standards for marketing Since making our commitment to market Maggi in Thailand
to children healthy choices in 2016, we have stepped up
Maggi’s Mum and Me cooking
efforts to promote healthy cooking, eating
In 2017, we implemented a robust standard on club in Thailand helps children
and lifestyles. This represents a 67% increase
marketing products to children with the learn cooking skills from
in marketing expenditure in 2019 (versus
development of our Policy on Marketing their parents.
2016) toward products that actively support
Communication to Children, one of the
healthy lifestyles.
strictest policies of its kind in our industry.
Read more online
In line with this policy, we have further Read more about this commitment
committed not to advertise to children under
the age of 6, and to only market products to
children between the ages of 6 and 12.
Products that we do market to children must
meet the Nestlé Nutritional Profiling System.
In 2019, we audited our Indian operations for
marketing to children compliance, with the
results of this review made publicly available.
This was identified as a best practice for the
industry by ATNI in their India spotlight, which
was released in June 2019.
Promoting healthy Why it matters

Adopting good nutrition and exercise
habits. The campaign reached more than
200 million parents worldwide.
behaviors in children practices from an early age gives children a

better chance of growing up to be fit and
Through increased efforts, in 2019, we
supported 27.2 million children through the
healthy. Malnutrition continues to grow as an program in over 84 countries around the
issue on a global scale: more than 340 million world. This contributes to our objective of
Our commitment
children and teenagers are overweight or reaching 50 million children cumulatively
Empower parents, caregivers obese (WHO), and many others suffer from from 2016 to 2020, and is a milestone toward
and teachers to foster healthy under-nutrition. our wider 2030 ambition to help 50 million
children every single year. Read more about
behaviors in children We bring together current public health data
how we are partnering with retailers through
with findings from Nestlé research to create
Our objective Nestlé for Healthier Kids on our website.
products and offer services that support the
By 2020: Support 50 million children healthy growth of children. Read more about this commitment
through our nutrition education and behavior
change programs, an important milestone What we are doing
toward our wider 2030 ambition Supporting children to live healthier lives Adopting a fruit or vegetable
In progress The Nestlé for Healthier Kids initiative brings in Argentina
together several programs that promote Encouraging children to eat more
healthy eating in children as well as programs fruit and vegetables, Nestlé
designed to equip parents with all the launched the Adopt a Fruit, Adopt
information they need to reach their child’s a Vegetable initiative in
nutritional requirements. It drives actions Argentina. The initiative was a
supporting our global ambition to support collaborative effort with the
50 million children every year by 2030. supermarket Carrefour.
The initiative also acts as a platform from
Read more online
which we continue to research and develop
more nutritious products for kids. This
includes reducing the amount of sugars,
saturated fat and salt in our products while
increasing the nutrient, fiber and vegetable
content. Read more about how we are
developing healthier products.
In 2019, two communication campaigns
across 40 markets highlighted the progress
made in the nutritional improvement of our
portfolio. It also provided an opportunity to
raise awareness of the importance of cooking
together with children to improve their eating
Supporting Why it matters

Good nutrition in the first 1000 days, from
Marketing BMS responsibly
We are committed to implementing the WHO
breastfeeding conception until two years old, is essential

for mother and baby. We support the
Code as outlined by national governments as
well as our own policies and procedures,
WHO’s recommendation that mothers whichever is stricter. We audited 33 countries
(who can) should exclusively breastfeed on WHO Code compliance in 2019. We aim to
Our commitment retain our FTSE4Good score in the 2020
infants for the first six months of life, followed
Support breastfeeding and by the introduction of adequate nutritious review. We also want to encourage the entire
BMS industry to work toward achieving the
protect it by continuing to foods alongside breastfeeding up to
highest level of marketing compliance. We
two years and beyond.
implement an industry-leading strive to be industry leaders in applying the
policy to market breast-milk However, some new mothers may be unable, WHO Code, even when stricter than our
or choose not, to breastfeed or decide to offer own policies.
substitutes responsibly mixed feeding. We want to support these
mothers with breast-milk substitutes (BMS) Supporting new mothers
Our objectives We want to do everything to help ensure Launching Materna Opti-Lac
that address infant nutritional needs, as well
By 2020: Advocate for a breastfeeding- as science-backed information about what mothers have comfortable, secure areas In 2019, we launched Materna
friendly environment by supporting the is best for early infant nutrition. where they can breastfeed. In 2019, we Opti-Lac in Hong Kong to support
set-up of breastfeeding rooms in provided breastfeeding rooms in all our breastfeeding. Materna Opti-Lac
communities where we operate What we are doing facilities with more than 50 female employees. contains a patented probiotic
In progress We also installed 5912 rooms for public use in strain, L. fermentum LC40,
Ensuring compliance throughout
countries where we operate. naturally found in the breast milk
our business
Ongoing: Ensure the practices of the of healthy mothers.
We developed our Nestlé Policies and
Nutrition business consistently meet Read more about this commitment
Procedures for the Implementation of the
Read more online
the FTSE4Good Index Breast Milk
WHO International Code of Marketing of
Substitutes criteria
Breast Milk Substitutes to ensure the
In progress
Code is implemented throughout our
organization. In 2019, 1428 Nestlé employees
Ongoing: Continue to strengthen our policy
completed training on breastfeeding, the WHO
and procedures to maintain industry
Code and Nestlé policies and procedures.
leadership on the implementation of the
WHO Code In 2019, we launched the Code of Interaction
In progress with Healthcare Professionals and Institutions
for Nestlé Nutrition Business Units. This
Ongoing: Continue to report publicly on document sets out the principles for engaging
our progress on the implementation of our with healthcare institutions and professionals
policy on the WHO Code on BMS and the types of interactions our
In progress employees can have with healthcare
professionals to avoid conflicts of interest.
Encouraging Why it matters

The water intake recommendation for the
In 2019, we ran a social media campaign
across nine key markets, including Mexico
healthy hydration
and China, promoting the benefits of healthy
average adult is about 1.5 liters each day, a
hydration. The campaign also served to
level that many people do not reach.
highlight the results of studies done by
Water is necessary for a whole host of body market research organizations IPSOS and
Our commitment functions. We want to ensure people get Kantar on the hydration behaviors and habits
Inspire people to choose enough hydration each day as part of a of adults and children around the world.
healthy lifestyle. We know good hydration
water to lead healthier lives habits need to start early. That’s why we
Gathering global information on hydration
have made it a priority to develop programs In 2018, we achieved our objective to release
Our objective an open-access platform where anyone can
that encourage children to drink enough
By 2020: Launch national campaigns water daily. download information on global drinking
promoting healthy hydration with public habits. We have also put together easy-to- Wild About Water: making
water a fun choice for
and private partners in 10 countries What we are doing understand information summarizing our
children worldwide
Achieved global research into children’s attitudes
Launching national campaigns
to drinking water and preferences for The majority of children do not
The majority of children do not drink the drink the daily recommended
water compared to sugary drinks. Find out
recommended daily amount of water, a amount of water, and this is, in
more about global hydration on the Nestlé
statistic that Nestlé is committed to part, because they find it boring
Waters website.
improving. We continue to develop to drink. Our global Wild About
campaigns to encourage better hydration. Read more about this commitment Water campaign was designed
55 countries now formally include the Choose to get children excited about
Water module in their Nestlé for Healthier Kids drinking water, with bottles
initiatives. In 2019, these countries launched specially designed to look like
99 programs that address the module, animals and with exciting facts
including TummyFish, an app released in the about animal hydration.
United Arab Emirates to get children excited
about drinking water. Find out more about our
Read more online
healthy hydration app on our website.
Health-promoting Why it matters

Knowledge of the importance of proper
affects our bodies. Through our outreach
efforts, we have engaged with approximately
food environments
70 000 industry professionals to date.
nutrition is on the rise globally. At the same
time, greater accessibility and availability of Collaborating for Healthier Lives
nutritious products mean the healthy choice In 2019, within the retail sector, we partnered
is increasingly the easier one. We believe that with 18 retailers, 58 manufacturers and 27
Our commitment
we, and the wider food and beverage stakeholders (public health authorities,
Partner for promoting industry, have a role to play in supporting academia, NGOs, and city officials) through
healthy food environments people to make informed choices to lead the Consumer Goods Forum Collaboration for
healthier lives. Healthier Lives global program. Through joint
Our objective action, in stores (including digital) and
Partnering with retailers represents an
By 2020: Partner with retailers and food opportunity to inspire behavior change and communities, we work to promote healthy
professionals to foster environments that promote healthier lives. Through offering diets and lifestyles. The program is being
promote healthier diets and lifestyles brands and services that are good for deployed in the following markets: Colombia,
In progress consumers, their families and the planet, the US, Japan, Turkey, Central America, the
manufacturers and retailers can encourage UK, France, Mexico and China.
more healthy and sustainable shopping Nestlé actively participated in all the country
patterns in consumers. initiatives, offering a range of products,
services and consumer information.
What we are doing Additionally, we are contributing to research
Inspiring people to cook
Engaging with industry professionals to define metrics to measure initiative results. Our Worldchefs Academy is an
In 2019, we maintained our commitment to This will supplement a global learning tool online learning portal that
engaging with professionals in the food that will allow the learning to be disseminated provides free foundational-level
industry to share current information on and to scaling up the Consumer Goods Forum culinary information to anyone
out-of-home nutrition. Through our Nestlé Collaboration for Healthier Lives program. interested in pursuing a career
Professional LinkedIn page, we engage with in the culinary industry. In 2019,
over 84 000 people globally. Our page acts Read more about this commitment 5177 young people were trained
as a platform through which we can share globally through the academy.
information on developments in the food
service industry as well as tips from chefs
about healthy eating with relevant audiences.
Learn more about how we leverage this
platform to widen our reach on our website.
Expanding our reach further, we continue
to connect with professionals through our
Worldchefs Academy and through
International Chefs Day, an event held on
October 20 each year. The theme for 2019
was How Healthy Food Works, and events
focused on teaching children how food
Building, sharing and applying nutrition knowledge

Why it matters Today, we have the most advanced science
and innovation network in the food industry,
The foods and beverages babies and children
with around 23 R&D locations and more than
consume play a vital role in shaping their
3900 employees. In 2019, we invested
future health and development, both mentally
CHF 1.7 billion in our research activities. We
and physically. In the same way, what we
also collaborate with leading universities,
consume as adults can influence our health
research organizations, start-ups and other
later in life. However, many babies, children
innovation partners. These partnerships help
and adults worldwide suffer from under-
us widen our scope by generating new ideas
nutrition or over-nutrition, with potentially
that can help us address key public health
serious consequences, both for themselves
challenges and much more.
and for society. By understanding more about
these issues, we can develop products that We also continue to engage with, and
help consumers of all ages to enjoy healthier, support, healthcare and nutritional
more nutritious diets. professionals around the world, providing
training, disseminating information and
Our contribution learning, and facilitating the sharing of
Through our global network of research and best practice.
development centers, we study everything
Our commitments to building, sharing and Our work on building, sharing and from maternal and children’s health to healthy
applying nutrition knowledge applying nutrition knowledge aging and pet care. We take a holistic
contributes to the following SDGs: approach that focuses on nutrition and
22 Build and share nutrition knowledge from
physical activity, and their combined impact
the first 1000 days through to healthy aging
on health. This includes expanding our
23 Build biomedical science leading to health- personalized nutrition work, which enables
promoting products, personalized nutrition consumers to find the right nutritional

How we map our material issues
and digital solutions solutions for their particular circumstances.
to the UN SDGs and their targets
Our work is helping us build a deep
understanding of nutritional science and
develop products that enable us to fulfill our
purpose: enhancing quality of life and
contributing to a healthier future.
Sharing nutrition Why it matters

It is well known that what we eat and drink as
2 years of age. In 2019, we presented our
study at two international congresses – the
knowledge
10th International Symposium on Diabetes,
children sets the foundation for our adult
Hypertension, Metabolic Syndrome and
lives. However, as we get older our nutritional
throughout life
Pregnancy in Florence, Italy, and the
needs change. At Nestlé, we carefully study
International Diabetes Federation Congress
the links between health and nutrition
in Busan, Korea.
throughout all the stages of life – from babies
and children to expectant mothers and Contributing to the knowledge of
Our commitment
healthy aging. healthcare professionals
Build and share nutrition In 2019, in addition to our global NNI website,
knowledge from the first 1000 What we are doing we operated 18 local websites, reaching
Nestlé believes healthcare professionals are 373 653 registered healthcare professionals,
days through to healthy aging best placed to advise consumers on nutrition. scientists and nutrition practitioners across
Our objectives We support and engage healthcare 178 countries. These included websites
By 2020: Build knowledge on the professionals (HCPs) around the world developed in French to make scientific
associations between nutrition and lifestyle, through communications, training, courses, knowledge accessible to French-speaking
Contributing to the knowledge
and biomarkers of health in mothers and workshops, websites and other initiatives. doctors in the Central and West Africa of healthcare professionals
children through the EpiGen collaboration Region, a region where we have many
Through our not-for-profit Nestlé Nutrition The NNI has supported
projects to support local communities.
In progress Institute (NNI), we share our cutting-edge, fellowships for doctors from
science-based nutrition content with HCPs, Sharing knowledge with nutrition scientists developing countries. For
By 2020: Build further knowledge on while our Medical Affairs division engages Nestlé actively participates in conferences, example, we have almost tripled
dietary intake, eating behaviors and healthcare professionals and brings this such as the 2019 Asian Congress of Nutrition, the number of fully certified
lifestyles in infants and children knowledge to clinical practice. held in Bali, Indonesia. The conference pediatric gastroenterologists we
In progress attracted more than 3000 scientists from all have trained in African countries,
Improving the health of mothers and babies
over the world. Nestlé hosted three symposia from 9 in 2011 to 27 in 2019.
By 2020: Develop a deeper understanding We continued our work with the EpiGen
and one plenary session, which included
of dietary intake, preferences and lifestyle Global Research Consortium on the NiPPeR
Read more online
presentations from distinguished academics
habits during aging (Nutritional Intervention Preconception and
with whom we collaborate. Topics covered in
In progress During Pregnancy to Maintain Healthy
the symposia included nutrient profiling of
Glucose Metabolism and Offspring Health)
food, the double burden of malnutrition, and
metabolic health study in 2019. NiPPeR aims
nutritional needs for Indonesian children.
to establish whether specific combinations of
nutrients and probiotics can improve the Read more about this commitment
health of mothers and babies. Recruitment of
study participants is now complete: more
than 550 babies will be followed until they are
Enhancing Why it matters

Around the world, people are living longer.
Developing a nutritional score for Nestlé
website recipes
biomedical science However, healthcare systems may not be able

to provide the support an older population
To help consumers prepare nutritionally
balanced, home-cooked meals, we’ve
requires. Biomedical science – which focuses developed a meal nutritional score for recipes
on how cells, organs and systems function in on our website. Each recipe is rated based on
Our commitment daily nutritional requirements using a
the human body to help healthcare – enables
Build biomedical science us to understand, treat and help prevent scientifically validated algorithm developed
by Nestlé Research. Consumers can see
leading to health-promoting disease at all stages through life. Our work
how nutritionally balanced recipes are and,
also helps us see the role nutrition, as well as
products, personalized genetics, family history, environment and where needed, get suggestions for
nutrition and digital solutions lifestyle, has in health and well-being. complementary dishes.
In late 2019, the system was piloted in Mexico
Our objectives What we are doing and went live. To date, 96% of all recipes
By 2020: Develop digital nutrition profiling We are developing our work in nutritional (more than 5000) on our Mexico website have
for calculating nutrient intakes, as well as for profiling to enable more personalized a meal nutritional score. We plan to roll out
making recommendations for nutritional Combating aging through a
solutions for consumers. Cellular nutrition – the rating system to at least five more Nestlé
balance, into a comprehensive tool to assist new class of nutrition
which uses plant nutrients to support cells in recipe websites in 2020.
individuals and families to lead happier and the body – and its potential benefits for health Nestlé Health Science has
healthier lives are also a key focus area. In particular, we are Read more about this commitment invested in and partnered with
In progress exploring its role in tackling aging. Swiss-based Amazentis, licensing
the rights to cutting-edge
By 2020: Develop new interventional Developing personalized nutrition technology that uses nutrition to
nutritional solutions driven by studies and In 2019, Nestlé Health Science expanded its revitalize mitochondria, boosting
diagnostic profiling. These programs will operations into personalized nutrition with the cellular health.
focus on key areas such as metabolism, acquisition of Persona, a leading US-based
gastrointestinal and brain health, healthy personalized vitamin business. Persona uses
Read more online
aging, skin health and pets a proprietary algorithm, taking into account a
In progress consumer’s lifestyle, history and individual
needs, to develop a customized nutritional
assessment. This enables consumers to
discover the right nutritional solutions for their
specific needs. Persona is expanding globally
as Nestlé Health Science looks to increase its
overall personalization portfolio.
For our communities 2030 ambition: Our global youth initiative,

Helping develop thriving, resilient communities To improve 30 million Nestlé needs YOUth, helped over
900 000 young people access
livelihoods in economic opportunities in 2019
communities directly
connected to our
business activities
As demand for resources increases, we need Respecting and promoting
to ensure a secure, long-term supply chain to
safeguard the future of our business and local
human rights
communities. That’s why we work with Respect for human rights is fully embedded in
farmers and suppliers across the world to our company’s purpose and values. There is
develop thriving, resilient communities and no place for human rights abuses in our
sustainable agricultural techniques. To business or our supply chains. Upholding the
support our efforts, we divide our focus human rights of everyone who works for or
between the following three key areas. with us is essential to make our business
activities and supply chains more resilient,
Enhancing rural development stable and sustainable (pages 31–35).
and livelihoods Promoting decent employment
Globally, demand for food is growing and
eating habits and behaviors are changing,
and diversity
with increasing preference for plant-based, A business thrives when it has a healthy,
natural products. At the same time, diverse and engaged workforce that reflects
agriculture faces many challenges, from an society. Cultural diversity makes businesses
aging farming population to the effects of stronger, as it brings innovation and
climate change. We want to help build a encourages different ways of thinking. We
sustainable, long-term supply of ingredients. have a particular focus on gender balance and
Through initiatives such as Farmer Connect, empowering women, while our new Nestlé
we aim to help farmers improve their Global Parental Support Policy extends
livelihoods and increase their incomes, while gender-neutral support to primary and
our agripreneurship program trains a new secondary caregivers. Through our Nestlé
generation of farmers and shows that needs YOUth initiative, we tackle the serious
agriculture can offer a viable career path for global issue of youth unemployment,
young people (pages 25–30). equipping young people with the skills
they will need in tomorrow’s workplace
(pages 36–39).
Enhancing rural development and livelihoods

Why it matters farmers. Agripreneurship grows and
improves key farming skills. It also plays a
Demand for food is growing, but an aging
major role in making farming more attractive
farming population, climate change, poor
to young people as a viable career choice,
agricultural practices, and old or diseased
helping to ensure a stable, long-term
plants all present threats to sustainable
supply chain.
supply chains. Many farmers and their
families and communities live on low incomes Encouraging farmers – especially
and often have periods without sufficient smallholders in developing countries – to
food to sustain themselves. At the same time, grow more protein-rich crops can be an
not enough young people see agriculture as important step in helping improve their own
an attractive, viable option. These challenges nutrition intake and diversifying income, as
must be overcome to meet demand and well as mitigating the effects of climate
secure long-term supplies of the raw change. We have programs and training in
materials we use. place to help farmers and their families learn
more about ways to improve their nutrition.
Our contribution Few companies in the food business are
As a major global food and beverage taking this kind of holistic approach to
company, we can make a difference. By nutrition provision.
Our commitments to enhancing rural Our work on enhancing rural working closely with farming communities,
Consumers are also increasingly aware of
development and livelihoods development and livelihoods civil society, industry peers and governments,
issues around responsible sourcing in supply
contributes to the following SDGs: we can identify the root causes of the
26 Improve farm economics among the chains, wanting to ensure that the products
challenges farmers face. Armed with this
farmers who supply us they buy have been sourced ethically. This is
information, we can apply our Theory of
particularly relevant to ensure human rights
27 Improve food availability and dietary Change model, which enables us to focus our
are upheld and the environment protected
diversity among the farmers who activities where they matter most and
throughout our supply chain. Our policies and
supply us measure our impact against desired long-
activities are intended to ensure that Nestlé
term outcomes.
28 Implement responsible sourcing in sources ingredients only where workers’
our supply chain and promote Through Farmer Connect, we work directly rights are protected and children have not
animal welfare with more than 550 000 farmers, helping been exploited. We also aim to ensure all
them to grow and thrive. We place a special animals in our supply chain are healthy and
29 Continuously improve our green
focus on agripreneurship, to identify and stress-free.
coffee supply chain
develop the most talented, progressive

30 Roll out the Nestlé Cocoa Plan with
cocoa farmers
Delivering impact Why it matters

Around the world, the farming population and
Improving farm economics around
the world
through Farmer the rural communities in which they live are

aging. We can increasingly expect to see this
Based on rural development assessments
carried out to understand the needs of
Connect impact our supply chain. Many farmers also

face economic pressures resulting from
farmers who supply us, we are implementing
programs to support them in seven priority
historically low food prices and are dealing locations. Having had results from four of the
with the effects of climate change. We locations in 2018, we obtained results from
Our commitment the three remaining countries – China, India
support farmers to meet these challenges.
Improve farm economics Our initiatives help make agriculture an and Pakistan – in 2019.
among the farmers who attractive career choice for young people, Developing agripreneurs
which is essential to ensuring the long-term
supply us sustainability of our supplies.
Each year, we provide training to more than
400 000 farmers. Around 20 000 are identified
as potential agripreneurs – those with the
Our objective What we are doing progressive attitudes necessary to grow and
By 2020: Improve farm economics in Our Farmer Connect program, through which develop their farms as successful future Ensuring healthy dairy cows
seven priority sourcing locations based we work directly with more than 550 000 businesses. As well as developing their own in Brazil
on the results of the Rural Development farmers, helps us to improve farm economics farms, they can pass their training on to other
Framework baselines Animal welfare is essential, and
and ensure viable agriculture. To identify and farmers, empowering them and supporting
In progress we want to source ingredients
prioritize local issues and suitable wider communities.
only from stress-free, healthy
interventions, and measure the outcomes,
This will also help build generations of loyal, animals. In Brazil, our Nido brand
we have adopted a Theory of Change (ToC)
successful farmers, creating stability in is piloting an initiative called
approach. Applied in our coffee and dairy
farming practices and supply chains, and CowSense that uses sensors to
supply chains, ToC enables us to address
high-quality produce. assess the movement,
these issues and develop bespoke solutions.
contentment and stress levels of
At the heart of our activities is agripreneurship, Creating sustainable farming methods
dairy cows so we can implement
our program for developing farmers – Today, sustainable, economically viable measures to eliminate elements
especially young farmers – who have the farming must also address material issues that cause stress.
dynamism, skills and mindset to make their such as soil health, biodiversity and water.
farms strong and sustainable businesses. Agripreneurship trains farmers in methods to Read more online
mitigate the impacts of climate change on
these issues, especially through reducing
greenhouse gas emissions and reducing their
carbon footprint.

Improving Why it matters

Our Rural Development Framework
Supporting coffee communities in Mexico
We are working with the Bancos de Alimentos
farmers’ diets assessments showed that shortage of food

can be a major problem for many farmers and
de México (BAMX) to extend its food bank
operations into the rural coffee communities
their families – up to 70% may spend up to and to implement an Impact Evaluation to
three months each year without enough food. measure results, particularly on mothers and
Our commitment young children. In 2019, 8553 households
Moreover, many farmers lack diversity in their
Improve food availability diets, with insufficient protein and nutrient- benefited from this work.
and dietary diversity among rich foods like dairy, fruit and vegetables. Providing clean water in Indonesia
A stable, long-term supply chain requires
the farmers who supply us healthy farmers and farming communities,
Poor sanitation must be addressed alongside
nutritional interventions. The Indonesian
Our objective and improving their diets is an important community empowerment program is focused
By 2020: Improve food availability and dietary contribution to achieving that. on providing clean water to communities. We
diversity in five priority sourcing locations, have built 8 clean water access points in
What we are doing 4 districts (cocoa and dairy), reaching
based on the results of the Rural Development
Framework baselines Our priority locations 2123 households. Tackling food insecurity in
In progress Nutrition and food security for farmers is a the Philippines
Empowering women in Côte d’Ivoire
complex problem with no easy solutions. Our assessments found that 77%
We have initiated tailored pilot programs to In Côte d’Ivoire, women often do not have
access to economic opportunities. We are of farmers in the Philippines
address challenges in Kenya, Mexico and experience food shortages at
the Philippines, with further programs in working with the FarmStrong Foundation to
help women set up their own businesses, some point each year. To help
Indonesia and Côte d’Ivoire either in place address this, we train farmers in
or in development. improving their livelihoods and their
household incomes. more productive farming
Boosting kitchen gardens in Kenya practices, such as diversification
In Kenya, we continue to train farmers and Read more about this commitment and increasing yields. Among
their partners in better nutrition. In 2019, we the initiatives are developing the
developed plans to help connect farmers with keeping of poultry for
local markets and reduce waste and improve consumption and implementing
food availability through better food our Nestlé for Healthier Kids
preservation methods. We are also fostering program to help ensure children
the use of kitchen gardens, providing seeds to eat well.
farmers to help them grow nutritious
Read more online
vegetables that are more resilient to climate
change and dry seasons, as well as providing
nutrition and cookery advice.
Implement Why it matters

A secure supply of high-quality agricultural
By the end of March 2019, 76% of our raw
materials, including soya, sugar, meat, pulp
Raw materials that are responsibly sourced,
% of the volume of our priority categories
responsible sourcing
and paper, and palm oil, were verified 2017 57%
ingredients is essential to ensuring the 2018 63%
deforestation-free. While we will not be able
long-term sustainability of our business. Our 2019 70%
to meet our target of raw materials being
responsible sourcing program plays a key role 2017 57%
completely deforestation-free by 2020, 2017 63%
toward achieving this. It helps us to know 2018
Raw materials that are traceable, 63%
Our commitment primarily due to not wanting to exclude 2018
2019
72%
70%
where our ingredients come from and how % of the volume of our priority categories
2019 76%
Implement responsible they are produced, and to address
smallholders and small-scale farmers from
2017 63%
our supply chain, we do expect the figure to be
sourcing in our supply chain environmental and social issues such as
above 90%. We will continue to work with
2018 72%
deforestation, human rights and animal 2019 76%
and promote animal welfare welfare. Through responsible sourcing
smallholder farmers and large suppliers to be
close to 100% deforestation-free within the
Our objectives practices, we can have a positive social and
next 3 years. Read more about our work to
environmental impact on the communities
By 2020: For Tier 1 suppliers, over 80% of the eliminate deforestation from our supply chains.
with which we work.
total spend and volume sourced from audited
Promoting human rights in our
and compliant suppliers What we are doing supply chains
In progress
We work with our suppliers and partners to Human rights abuses have no place in our
address supply chains risks. However, real business activities; respect for human rights
By 2020: For upstream, 80% of the spend
transformation requires working beyond our is embedded in our values, activities and
and volume of our priority categories to be
own supply chains. We are collaborating with policies. However, some of the most pressing
traceable and 70% to be responsibly sourced
NGOs and industry peers to create sector- human rights challenges are found in global
In progress
wide approaches, share know-how and bring agricultural supply chains. We have
solutions to scale. developed a set of salient issues to help us
maximize our impact and are training all our
Driving transparency
employees on human rights. By taking action
We believe that disclosing information about
to respect and promote the rights of workers
the sourcing of high-risk commodities is
in our supply chains, we can transform the
essential to build trust and ensure
lives of the most vulnerable. Read more about
accountability. We have published a list of
how we assess and address human rights
direct suppliers, upstream locations and
impacts across our business.
countries of origin, as well as total volume
sourced, for our 15 raw materials. We also Promoting animal welfare
advocate increased transparency, and We made good progress in 2019 on our
harmonized disclosure and reporting at commitment to source only cage-free eggs in
industry level. Europe by 2020 and are on track to meet our
target of 100%. We are working with the
Tackling deforestation
Global Coalition for Animal Welfare to explore
Over the past 10 years, we have invested in
how this commitment could be expanded to
ending deforestation across our supply chain.
the rest of the world.
We have developed an integrated approach,
combining supply chain mapping, Read more about this commitment
certification, on-the-ground verification,
satellite monitoring and landscape projects.
Responsible coffee Why it matters

Coffee is one of Nestlé’s most important
Improving farmer economics through
the Nescafé Plan
sourcing commodities. Globally, demand for coffee

continues to rise, but with limited arable land
Our field programs, which we have developed
through the Nescafé Plan, support measurable
available and with other crops competing improvements in productivity and quality.
with coffee for space, there are considerable Together with our partners on the ground, we
Our commitment continue to train farmers in best agricultural
challenges for producers. Further significant
Continuously improve our challenges include low coffee prices, primarily practices, cost management and business
skills. In 2019, 7228 farmer training sessions
green coffee supply chain resulting from temporary oversupply, and the
were carried out.
effects of climate change in coffee-growing
Our objectives regions across the world. Thanks to our partnership with the
By 2020: 70% of the total Nescafé coffee Rainforest Alliance, we measure our impact
supply to be responsibly sourced
What we are doing in 12 countries, enabling us to support the
In progress As per the Coffee Barometer report 2018, revitalization of coffee farms and achieve
Nestlé’s program to responsibly source better results for farmers and the environment.
By 2020: Nescafé to improve the quality, coffee and improve farmer livelihoods and
Improving labor rights in Mexico and Reviving coffee growing
quantity and sustainability of its coffee coffee landscapes is the largest in the world.
the Philippines in Zimbabwe
supply chain by distributing 220 million Our Nescafé Plan and Nespresso AAA
We worked with two NGOs, Verité and Through its Reviving Origins
coffee plantlets Sustainable Quality Program represent a
Certificadora de Productos Sustentables program, Nespresso invests in
In progress CHF 78.2 million investment in 2019.
(PPS), in 2019 to improve workers’ labor rights reviving coffee production in
We remain on track to meet our 2020 targets. in Mexico, and partnered with coffee certifier regions that have been blighted
By 2020: Nescafé to improve coffee In 2019, 65% of our total coffee supplies was 4C Services to conduct a scoping study in the by conflict, economic hardship
farm economics in at least four responsibly sourced, with some major Philippines. PPS then visited 293 medium to or environmental disasters. In
coffee-sourcing countries markets, such as Brazil, Japan and Thailand, large farms during harvest time to carry out 2019, we launched two new
In progress making significant advances. During the year, specific labor rights assessments. Nine farms coffees, Zimbabwe and Cafécito
we also passed the milestone of 200 million within, or related to, our supply chain were de Puerto Rico, bringing to life
By 2020: Nescafé to monitor and improved coffee plantlets distributed identified with Child Labor risks at the time of the work carried out with farmers
improve labor rights in at least two to growers. the visits. From these nine farms, we in these regions.
coffee-sourcing countries
The share of coffee in Nespresso’s permanent requested our suppliers to remove five from
In progress Read more online
range sourced through the Nespresso AAA our value chain. For the remaining four,

Sustainable Quality Program reached 95% in corrective actions were undertaken and
By 2020: Source toward 100% of the coffee
2019, keeping us on track to achieve our followed up locally as a condition for these
for Nespresso’s permanent range through
2020 objective. We are also positioned to farms to continue supplying us coffee. In the
its AAA Sustainable Quality Program on
meet our target of planting 5 million trees in Philippines, 4C Services identified issues
coffee sourcing
AAA coffee farms and landscapes to combat including noncompliance with local minimum
In progress
climate change. wage legislation and a low level of school
enrolment. We are assessing the situation and
identifying root causes and potential solutions
to address and rectify this.

Nestlé Cocoa Plan Why it matters

The Nestlé Cocoa Plan aims to help farmers
We made further progress on distributing
new, higher-yielding cocoa plants to farmers
in Ghana, but in Côte d’Ivoire the government
address the challenges they face through
does not allow companies to distribute
Our commitment three pillars – better farming, better lives and
planting material.
better cocoa. Activities such as training in
Roll out the Nestlé Cocoa better agricultural practices, distributing Better lives
Plan with cocoa farmers higher-yielding plants, promoting gender Tackling child labor
equality and tackling child labor help farmers In 2019, we released our second Report on
Our objectives to improve the quality of their products as Tackling Child Labor, providing further
By 2025: Source all cocoa for Nestlé well as their income and livelihoods. insights into the progress made by our Child
confectionery through the Nestlé Labor Monitoring and Remediation
Cocoa Plan What we are doing System (CLMRS).
New Through the Nestlé Cocoa Plan, we have
The number of children leaving child labor –
announced we intend to source 100% of the
By 2020: Source 230 000 tonnes of being free from carrying out hazardous tasks
cocoa for Nestlé confectionery – around
cocoa through the Nestlé Cocoa Plan across two inspection visits in six months –
300 000 tonnes – by 2025 and so will
Discontinued* increased to 2459 (29% of children who have Helping cocoa
continue our tonnage growth. This renewed
received two visits) in 2019. Our focus on communities save
objective was introduced as we will not meet
education saw four more schools refurbished The Village Savings and Loans
our previous 2020 objective of sourcing
or built, and we maintained our cooperation Association (VSLA) program
230 000 tonnes of cocoa through the Nestlé
with the Jacobs Foundation on bridge enables communities to save,
Cocoa Plan.
schools, helping at-risk children reintegrate invest and loan to those needing
Tackling deforestation into normal schools. assistance. Currently, 2773
Deforestation remains a major issue in cocoa farmers within the Nestlé Cocoa
Better cocoa
regions, and Nestlé continues to be part of Plan participate in VSLAs.
Certification challenges
the Cocoa & Forests Initiative to combat this.
Some of our co-operatives failed certification Read more online
We distributed over 420 000 shade trees
audits in 2019 and despite assistance were
globally in 2019 and completed the mapping
unable to pass re-audits. This is unfortunate
of all Nestlé Cocoa Plan farmers in Côte
both for the farmers and for Nestlé, but is a
d’Ivoire and Ghana. Read more about our
result of more rigorous auditing, which is in
approach to deforestation.
the long-term interest of the credibility
Better farming of certification.
Improving farming practices
We continued our focus on farmer coaching
Read more about this commitment, including
detailed information on the Nestlé Cocoa Plan KPIs
and pruning. So far, 729 farms have been
pruned, which will result in increased yields
and incomes. Farmer demonstration plots
have shown up to a threefold
productivity increase.
* Despite significant progress, we will not meet our
2020 objective and so have revised our plans and
announced a renewed objective for 2025
Respecting and promoting human rights

Why it matters Issues around human rights go far beyond
any company’s supply chain, and solving
Human rights abuse has no place in all our
them is a long-term challenge. In 2019, the
activities. We take our responsibility to ensure
FLA created a new committee dedicated to
human rights are respected and upheld
agricultural supply chains to coordinate
throughout our value chain very seriously.
efforts on these issues. As a business that
Safeguarding the people who work for or
has been working with the FLA and others to
with us helps build a resilient, stable and
lead on human rights for many years, Nestlé
sustainable supply chain. It is an essential
has been appointed to chair this new
part of how we as a business live our values.
committee, enabling us to drive its future
Our contribution work across the industry.
Our human rights work is embedded in our
activities and policies, supported by training
on key topics for all employees. Our biggest
challenges are found in our supply chains,
and we have a particular focus on addressing
these issues.
Tackling human rights abuses requires a
Our commitments to respecting and Our work on respecting and
collaborative effort with suppliers,
promoting human rights promoting human rights
governments, NGOs and other stakeholders.
contributes to the following SDGs:
32 Assess and address human rights In particular, we work closely with expert
impacts across our business activities organizations such as the Danish Institute for
Human Rights (DIHR), the Fair Labor
33 Improve workers’ livelihoods and protect
Association (FLA), the International Cocoa
children in our agricultural supply chain
Initiative, Verité, Issara Institute, Earthworm
34 Enhance a culture of integrity across the Foundation and Proforest. These
organization collaborations help us understand the

How we map our material issues challenges and their underlying causes.
35 Provide effective grievance mechanisms to the UN SDGs and their targets
Together, we design and implement
to employees and stakeholders
interventions that have a real impact.
Assess and address Why it matters

Our values embed respect for the human
Rolling out human rights training
Throughout 2019, we continued to roll out our
human rights impacts rights of everyone who works for or with us,
throughout our business activities. We
human rights training program, developed
with the DIHR. 23 708 additional employees
believe that upholding the human rights of received this training in 2019. We will
everyone who works for or with us is essential continue to train as many employees as
Our commitment possible; however, we will not meet our
to making our business activities and supply
Assess and address human chains more resilient, stable and sustainable. objective of training all Nestlé employees on
Tackling child labor in our
human rights by 2020. While the program
rights impacts across our cocoa supply chain
What we are doing was initially developed as an online training
business activities tool, two-thirds of our employees do not have All chocolate for KitKat is
Working with the Danish Institute of Human
access to computers, so an offline platform sourced through the Nestlé
Our objectives Rights (DIHR), we have identified a set of
has also been developed. Cocoa Plan. Through our Cocoa
By 2018 (2020): Carry out six human 11 salient human rights issues. These are the
Plan we work to improve the lives
rights impact assessments in our upstream issues that carry the risk of the most severe Implementing action plans of farmers and address the root
supply chain* negative impact (defined by the scope, scale We have continued to work with partners to causes of child labor in our cocoa
and remediability of the impact) on rights implement action plans. We have made much
In progress supply chain.
holders through our activities and business progress on child labor in Côte d’Ivoire and
By 2019: Have a functioning governance relationships, and that have the highest Ghana, as well as in our hazelnut supply chain Read more online
structure in place in all markets that looks likelihood of occurrence. in Turkey.
after human rights risks and opportunities We are currently reviewing these issues, An effective governance structure
Achieved determining how we can focus our activities A toolkit for Market Compliance Officers to
for the biggest positive impact. We are support the establishment of a governance
By 2020: Train all Nestlé employees on developing a list of sites, commodities and structure to manage risks and opportunities
human rights geographies where our salient issues arise, associated with human rights at market level
In progress to ensure the risks are measured and tangible was launched in 2018. As of 2019, all markets
action plans are in place. have the structure in place.
* Our partner the Fair Labor Association has an ongoing

program of assessments in our upstream supply chain,
which will inform our human rights work. Because of
this, we have extended this objective to 2020
Protecting workers Why it matters

Nestlé is opposed to all violations of human
Providing effective grievance mechanisms
We work with suppliers and partners to
and children rights, including breaches of labor rights. In

total, 7 of our 11 salient issues involve labor
ensure workers in our supply chain have
access to effective grievance mechanisms,
Tackling Child Labor
2019 Report
rights and are associated with our agricultural and we are using new technology to
supply chains. We have a particular focus on strengthen this. In 2019, we piloted a project
Our commitment reaching nearly 6000 workers at Sime Darby
protecting children so they can gain an
Improve workers’ livelihoods education to help them and their Plantation, a palm oil supplier in Malaysia.
The system uses a cutting-edge mobile
and protect children in our communities have better futures.
platform to assess human rights risks, deliver
agricultural supply chain What we are doing mitigation plans and track progress, while
workers can access communication channels
Our objective Tackling child labor
in the form most appropriate for them. In
By 2020: Start reporting on the number of Our second Report on Tackling Child Labor
Thailand, we are working with the Issara
workers in agricultural supply chains having confirms that our Child Labor Monitoring and
Institute to give workers access to a
benefited from our interventions on all salient Remediation System (CLMRS) is working
smartphone app that provides them with
labor rights issues well. By the end of 2019, we had identified Reporting on child labor
shared information, advice and support.
In progress
more than 20 000 cases of child labor, issues
Read more about our work to promote Our second Report on Tackling
we could not have identified before the
human rights. Child Labor in our cocoa
CLMRS was implemented. The high number
supply chain was published
of cases illustrates the deep-rooted nature of Read more about this commitment in December 2019. Covering
the issues, which go far beyond our own
sourcing in Côte d’Ivoire, the
supply chain. It also demonstrates the
report highlights the scale
effectiveness of our system in identifying
and root causes of child labor,
them – without which they cannot be
and our efforts to provide
addressed. This information provided through
remediation for children
our CLMRS means we are able to address
and families.
incidences of child labor more effectively.
The report also details our remediation Read more online

activities, such as providing birth certificates
and access to education. CLMRS means that
Nestlé can assess the magnitude of the issue
of child labor in the supply chain. Our child
labor report is part of our efforts to be as
transparent as possible about the issue, the
causes and the actions we take to address it.
Read more about our work in the cocoa
supply chain.
Our culture of business Why it matters

A strong culture of business ethics and
Reinforcing compliance through leadership
Our corporate toolkit is now available to all
CARE audits 2019
Audits carried out 198

ethics and integrity integrity is an enabler for our business and
operations, enhancing and strengthening a
managers, encouraging them to reflect on
their role as leaders. This toolkit can be Locations covered 362
accessed globally through an e-learning Improvement 293
mindset of ‘doing the right thing for the right
platform and by new employees as part of opportunities (gaps)
reason’. Through this, we continuously foster
Our commitment their induction program. Developed in identified
creating shared value for our business and
Enhance a culture of integrity activities, as well as for our consumers, English, the materials can be translated by Gaps closed 125
markets according to their needs.
across the organization shareholders and communities. in year
The toolkit includes actual (adapted) case
Our objectives What we are doing studies, as well as press articles and videos of Read more online
By 2019: Markets reinforcing compliance We believe there are two key elements for further examples and discussions. The training
as a leadership responsibility based on a compliance: reinforces the roles and responsibilities of
corporate toolkit for training managers leaders to do the right thing.
1. Enabling and protecting: our Compliance
on business integrity Program is an enabler for Nestlé’s business Measuring compliance through CARE audits
Achieved and operations and protects Nestlé’s Our compliance audit program, CARE,
reputation. independently assesses compliance with key
By 2020: A proactive review is conducted
2. Doing the right thing, for the right reason, principles. Detailed information on the audit
for our compliance activities and policies in
based on respect and mutual trust. findings.
light of our evolving product portfolio
In progress We encourage employees and external Read more about this commitment
stakeholders to report any practice or
behavior at Nestlé that is inappropriate or
illegal. We believe that businesses only thrive
when they are ethically sustainable and
reflect stakeholder needs.
We also continually foster a culture of
compliance, including statements from
Market Heads, Compliance Officers’ annual
messages to employees, campaigns, posters
and newsletter articles. This reinforces a
‘speak up’ culture and awareness, as well as
trust in the Nestlé Integrity Reporting System.
Grievance mechanisms Why it matters

To uphold mutual trust and respect and
Engaging employees on our internal
reporting system
Nestlé Integrity Reporting System (2019)
Number of messages 1740
and remediation ensure a sustainable supply chain, it is

essential that employees and other
In 2019, we received 1740 messages through
the Integrity Reporting System, covering
received
Number of cases 1496
stakeholders have access to safe, effective issues including abuse of power and/or
closed
grievance mechanisms. These mechanisms mobbing/bullying, labor practices and
Our commitment discrimination. We also received 1360 Number of cases 474
must ensure remediation for any violations substantiated
Provide effective grievance that are substantiated. questions from employees seeking
compliance advice, demonstrating that
mechanisms to employees
What we are doing employees are engaging with the system. Tell us (2019)
and stakeholders
In 2019, we carried out a major review of the Number of messages 1178
effectiveness of our external (Tell us) and Raising awareness of our external reporting received
Our objectives
internal (Nestlé Integrity Reporting System) channel – Tell us
By 2019: Review grievance systems’ Number of cases 907
grievance mechanisms, including a three- Tell us is an independently operated system closed
effectiveness with internal and external
year trend analysis of grievances. available to all stakeholders. We have been
stakeholders to define improvement Number of cases 53
scaling up awareness of the program through
opportunities The review confirmed the systems’ overall substantiated
the Nestlé website.
Achieved effectiveness, with some learning points.
For example, while there is active use of the In 2019, we worked closely with Nestlé’s Public Read more online
By 2020: Grievance systems improvements systems in some countries, others have low Affairs and Nestlé Waters’ Sustainability
implemented in pilot markets volumes of complaints. We are working to teams to incorporate Tell us into Customer
In progress understand this and build sufficient trust in Relation Program guidance and questionnaires
the system. There is also a potential lack of used by Nestlé Waters. Communication
knowledge and awareness of the Integrity pilots are currently planned for Nestlé
Reporting System in some countries. Waters factories in five countries, using
To address this, we reinforced a ‘speak up’ existing channels. In collaboration with our
culture and communication around the Nestlé Responsible Sourcing team, we are working
Integrity Reporting System in some countries on the visibility of the existing systems in
in 2019. our value chain. Our aim is to build an overall
picture of the various grievance mechanisms
In all cases, we have effective remediation
in use, review their effectiveness and evaluate
processes, including action plans and
the way forward.
communication back to employees on actions
taken. We use benchmarks for the number of
messages received and substantiation rates.
Promoting decent employment and diversity

Why it matters proportion of women in top senior executive
positions to 30% by 2022, championing
Nestlé employs more than 291 000 people
equality throughout our business. We also
around the world, from over 150 nationalities.
run programs and initiatives designed to
Our products are sold in 193 countries, and we
empower women throughout our value chain.
have more than 400 factories in 85 countries
across the globe. Youth unemployment is a priority issue for
Nestlé. We participate in a number of
A business thrives when it has a healthy,
initiatives across the world to help tackle
diverse and engaged workforce that reflects
youth unemployment, part of our ambition to
society. Cultural diversity makes businesses
help 10 million young people access
stronger, bringing innovation and encouraging
economic opportunities by 2030. We believe
different ways of thinking. However, women
this is very much an issue where the private
continue to be under-represented across the
sector can make a significant contribution. As
world, in business management and
a major employer globally, we are in a position
agricultural communities alike. At the same
to provide training and skills development to
time, levels of youth unemployment are high,
help equip young people for the workplace of
contributing to global poverty and damaging
the future.
communities and their futures. For businesses
like Nestlé, supporting young people to find Our Nestlé Global Parental Support Policy,
Our commitments to promoting decent Our work on promoting decent launched in 2019, is a progressive policy that
employment, training and skills is essential to
employment and diversity employment and diversity recognizes the diverse structures of modern
securing a pipeline of future talent to ensure
contributes to the following SDGs: families. The new policy provides gender-
37 Roll out our Nestlé needs YOUth initiative long-term success.
across all our operations neutral parental support for all employees.
Our contribution Primary caregivers will be entitled to
38 Enhance gender balance in our
Diversity and inclusion are embedded in our 18 weeks’ support (an increase from 14),
workforce and empower women across
practices at all levels throughout our operations. and secondary caregivers, who previously
the entire value chain
They were defined as being among our had no entitlement to leave, are now
39 Advocate for healthy workplaces and priorities for 2019 and included as a topic at the guaranteed 4 weeks’ leave.

How we map our material issues Nestlé stakeholder convening in March for the
healthier employees
first time. Nestlé was also included in the
Bloomberg Gender-Equality Index.
We have a particular focus on gender
balance. Through our Nestlé Gender Balance
Acceleration Plan, we aim to increase the
Opportunities for Why it matters

Around the world, more than 170 million
Launching the Global Alliance for YOUth
Over the past three years, the Alliance for
young people people are unemployed (International Labour

Organization), of whom more than one-third
YOUth has offered more than 215 000 jobs,
apprenticeships and traineeships to young
are aged between 15 and 24. We believe that people in Europe and, more recently, South
the private sector has an important role to America. In 2019, it expanded worldwide with
Our commitment the launch of the Global Alliance for YOUth at
play to equip young people for their future.
Roll out our Nestlé needs Nestlé, as a major employer, can make a the World Economic Forum in Davos,
Switzerland.
YOUth initiative across all positive difference, providing employment,
training and skills development opportunities.
our operations Through apprenticeships, training programs
The Global Alliance for YOUth is a business-
driven movement, with 20 founding
and other initiatives, we equip young people members: ABB, Adecco, BBVA, Cargill,
Our objective
with essential skills for the workplace. Cemex, Engie, EY, Facebook, Firmenich,
By 2020: Nestlé needs YOUth initiative
Mercer, Mastercard, Microsoft, Nestlé,
commits to deliver: What we are doing Nielsen, Publicis, Rockwell Automation, SAP,
• 45 000 to 50 000 apprenticeship and Nestlé needs YOUth, our global youth Starbucks, Vodafone and White & Case.
traineeship opportunities Developing tomorrow’s
initiative, focuses on three Action Areas: These organizations are passionate about
entrepreneurs
• Continued readiness-for-work events • Employment and employability, providing working together to help young people
Working with Ashoka, the world’s
globally, with an increasing number of apprenticeships, internships, training and around the globe get the necessary skills to
leading social entrepreneurs
employees involved in such events job opportunities for young people. thrive in the world of work, today and
network, as well as SociaLab,
• Enhanced collaboration with external tomorrow. The Alliance has so far supported
•
Agripreneurship, aimed at developing the which supports socially oriented
partners to motivate them to join and to 10 million young people to build employability
next generation of farmers. businesses, and UNESCO, we
increase impact skills and aims to help 15 million by 2022.
• Entrepreneurship, which supports organized the ‘Comprometidos’
• 20 000 to 25 000 job opportunities for young people to become entrepreneurs
Read more about this commitment Challenge for young
people under 30 years of age every year and sponsors sustainable entrepreneurs in Latin America.
In progress entrepreneurial projects. Teams were invited to find
solutions to issues such as
In 2019, Nestlé needs YOUth helped sustainable packaging, education
900 000 young people around the world. and digital transformation, with
more than 700 entries from 19
countries. Ten finalists took part
in a week of training in Buenos
Aires to accelerate their ideas and
received online mentoring. The
winning team will be announced
in 2020.

Empowering women Why it matters

From under-representation and a lack of
Improving women’s livelihoods
We remain on track to achieve our
equal pay in business management to 2020 objective to improve women’s
restricted access to training, tools and livelihoods in the priority locations.
Our commitment
finance for agricultural workers, women In Brazil, Iran and India, we are surveying
Enhance gender balance continue to face challenges throughout the farmers to assess the levels of equality in our
in our workforce and global workplace. Building gender equality supply chain. The surveys explore issues such
empower women across and supporting women’s rights, education as the tasks carried out by men compared to
and empowerment are critical to creating those carried out by women and pay
the entire value chain shared value for our business. Throughout differences. We are also working to improve
our value chain, we work to tackle the the livelihoods of women in our hazelnut
Our objective challenges women face, with particular supply chain in Turkey. Find out more about
By 2020: The livelihoods of women have been focus on our five priority sourcing locations – our work in our hazelnut supply chain.
improved in five priority sourcing locations Brazil, India, Iran, Kenya and Rwanda.
In progress Many more examples of our activities and
What we are doing initiatives across our business and value
chain to empower women can be read online.
Accelerating gender balance in our business
Having achieved our 2018 objective of
increasing the managerial positions in Nestlé Empowering women in
held by women, we launched our Gender coffee communities
Balance Acceleration Plan in March 2019. Through the Nescafé Plan, we are
The plan aims to increase the proportion working with our partner Coffee
of women in the group’s top 200 senior Management Services to
executive positions to 30% by 2022. Read empower 5000 women coffee
more about how Nestlé is supporting farmers in Kenya and a further
women’s empowerment. 1800 in Rwanda. Having trained
participants in co-operative
leadership, coffee production,
confidence building and self-
development, we are now
focusing on supporting them on
sustainable, efficient coffee
growing. In all, we aim to support
more than 18 000 coffee farmers
over three years.

Workplace health Why it matters

Nestlé’s purpose of ‘enhancing quality of life
Nestlé’s proactive approach to health
includes participating in key external forums
and safety
and networks. In 2019, we:
and contributing to a healthier future’ begins
with each and every one of us. Our aim is to • Continued to be part of the Consumer
inspire our employees to make informed Goods Forum, as a member of the
decisions about their health and safety. Employee Health & Wellbeing working
Our commitment
group, with other food and beverage
Advocate for healthy What we are doing companies. Participants share expertise
workplaces and healthier Supporting employees’ health and best practices, producing resources
such as guidelines and toolkits to support
employees We made good progress toward our
members in the implementation of health
commitment in 2019 through our three major
global programs – Know Your Numbers and well-being initiatives for employees.
Our objectives
By 2020: Offer our employees education, (KYNP), #HealthyLives and Stress and • Hosted the European Health Network Encouraging employees to
early screening and programs that support Resilience. conference, enabling industry experts to eat healthier
healthier lifestyle choices KYNP is designed to help us better exchange best practices and to drive the Through our #HealthyLives
In progress understand our employees’ health profile and employee health agenda forward. training program, we are
the impact of health issues on productivity so • Participated in Mental Health and Well- encouraging our employees to
By 2020: Continue leading through we can design evidence-based interventions. make healthier food and drink
being – Impact on Business, a conference in
industry forums The program includes an initial screening choices at work. To support this,
Barcelona, where Nestlé was invited to
In progress (biometrics and health risk assessment), present its approach to mental health. 96% of our canteens now offer a
followed by professional guidance leading to healthy meal option.
targeted health support. By the end of 2019, Promoting safety in the workplace
KYNP was available to 73% of employees, In early 2019, we developed and deployed
who can choose whether or not they wish to Caring Leadership in Safety (CLiS) to simplify
participate. The program has been and improve safety effectiveness; within
particularly successful in Brazil, where there 5 months, 13 markets had adopted CLiS. This
are already 13 421 participants (92%), and in program will continue to be deployed
Turkey, with 1321 employees (79%) taking in all markets.
part. Read more about KYNP, #HealthyLives
During the year, we incorporated data on near
and Stress and Resilience.
misses with high-risk potential into our safety
and health performance analysis, enabling us
to identify preventative measures across the
value chain.

For the planet 2030 ambition: A third of our factories (189) now
Stewarding resources
and the environment
To strive for zero use 100% renewable electricity
environmental impact
in our operations
Our business must contribute to ensuring Acting on climate change

that society lives within planetary
Climate change cannot be addressed
boundaries. This means protecting
without driving transformative action. In
biodiversity and natural resources while
2019, we committed to achieve zero net
encouraging others to act responsibly. Our
greenhouse gas (GHG) emissions by 2050.
ambition is to strive for zero environmental
We are speeding up the transformation
impact in our operations. We have public
of our product portfolio to include more
commitments to use responsibly sourced
climate-friendly ingredients. We are also
ingredients and renewable resources,
focusing on scaling up renewable energy
operate more efficiently, eliminate waste
use and developing agricultural initiatives for
and manage water responsibly.
carbon storage, reforestation and biodiversity
It is important that we target our efforts to protection. Taking these steps will help us
tackle the most pressing environmental to cut our GHG in line with the ‘Business
issues, including the impact of plastic Ambition for 1.5°C’ pledge we signed
packaging, deforestation, the use of (pages 46–48).
resources and the loss of biodiversity.
These specific focus areas are all part of Safeguarding the environment
our broader environmental ambitions and the Our business relies on healthy forests, soils
following three impact areas. and oceans for the supply of ingredients.
As such, we are committed to protecting
Caring for water natural resources and biodiversity and
Water is a precious resource that we are minimizing our environmental impact. We
committed to protecting. We believe access work with industry partners to address
to water is a basic human right. Through our biodiversity loss and we are committed to
Caring for Water initiative, we are upgrading achieving deforestation-free supply chains.
our facilities to reduce water use while also As part of our vision for a waste-free future,
working with suppliers, especially in our our packaging institute is instrumental to
agricultural supply chains, to improve water achieving our 2025 aim of 100% recyclable
use efficiency. We engage with key or reusable packaging (pages 49–53).
stakeholders in communities where we
operate to improve access to potable water
and hygiene services (pages 41–45).
Caring for water

Why it matters as a company. Our efforts are externally
reviewed, and we received a score of 100 in the
As the climate changes, water-related issues
Water-Related Risks section of the 2019 Dow
will continue to grow in importance. While
Jones Sustainability Index.
this is a global issue, the impacts are felt on a
very local level, with droughts in some We are driving change within our operations,
localities and flooding in others. Farmers rely investing in technologies to improve the
on water to grow the crops we source for our water efficiency of our manufacturing
ingredients, making water-related risks a processes. However, our efforts do not stop
critical issue for us – one that we want to at our own operations. We engage actively
leverage our resources to alleviate. with suppliers, stakeholders and local
communities to develop and implement
The uneven distribution of water availability
collective actions to address water scarcity. In
worldwide is compounded by demographic
2019, we extended an existing partnership
changes such as population growth and
with the International Federation of Red Cross
urbanization. These factors are putting
and Red Crescent Societies to bring drinking
increasing strain on available water sources,
water infrastructure to more communities in
with only 7 in 10 people able to access safely
the Ashanti and Eastern regions of Ghana.
managed drinking water services and 4 in 10
having access to safely managed sanitation Caring for Water
Our commitments to caring for water Our work on caring for water
services (WHO/Unicef). By 2030, the global demand for water will
contributes to the following SDGs:
42 Work to achieve water efficiency and exceed supply by 40% (UN Environment).
sustainability across our operations Our contribution Through our flagship Caring for Water
Preserving water resources is not something initiative, we are addressing the issue in
43 Advocate for effective water policies
one company can do alone. Reducing strain on four areas:
and stewardship
water requires the collaboration of a range of • Agricultural supply chains
44 Engage with suppliers, especially those partners, from suppliers to governments and • Communities
in agriculture civil society. To target our actions, we launched • Factories

How we map our material issues in 2018 a flagship initiative, Caring for Water. • Watersheds
45 Raise awareness on water conservation to the UN SDGs and their targets
We have created a playbook that outlines all
and improve access to water and R
ead more about our Caring for Water global initiative
the tools and information needed to
sanitation across our value chain
implement and deliver on water stewardship
Improving water Why it matters

Water is vital to Nestlé’s operations, and we
Reducing water use in our facilities
We are on track to meet our 2020 commitment
efficiency are aware of our responsibility to use it as

efficiently as possible. We annually assess
for Water Resource Reviews of our facilities,
with six completed in 2019. These audits are
the water-related risks at our facilities – key to the continuous improvement in our
combining the level of water stress in the operations, leading to actions in areas where
Our commitment efficiency and water management can
regions where we operate and our water use –
Work to achieve water to determine the factories where water issues improve. Additionally, water stewardship
efficiency and sustainability matter most. plans have been implemented at 27 factories,
across our operations with all 27 certified by the Alliance for Water
As many of our facilities are located in Stewardship by the end of 2019, including
Our objectives water-stressed areas, we are permanently three sites in Pakistan.
By 2020: Reduce direct water withdrawals working to preserve local water resources
through robust auditing processes and In 2019, we implemented 371 water-saving
per tonne of product in every product projects at our factories, saving 3.5 million m3
category to achieve an overall reduction technology improvements to ensure best-in-
of water. We are also applying some of these
of 35% since 2010 class water efficiency in our operations.
technologies to other areas of our business to
Preserving water with Nestlé
In progress What we are doing increase the percentage of water being
Pure Life
recycled and reused.
By 2020: Carry out 40 new Water Resource Improving water use efficiency Nestlé Waters has been engaged
Reviews in selected manufacturing facilities To ensure the constant improvement of Read more about this commitment in long-term collaborative
in all greenfield sites our water use efficiency, all factories apply solutions, at both factory and
In progress the ‘reduce, reuse, recycle’ approach. We watershed level, to preserve
continually invest in innovative technologies the quantity and quality of
and initiatives to reduce water use within local resources.
our facilities and to improve the efficiency
of our processes. By the end of 2019,
we had achieved an overall reduction of
water withdrawal per tonne of product of
31% since 2010, with a total withdrawal of
121 million m3. Considering the growth and
changes in our product portfolio, this is a
significant achievement.
Direct water withdrawal reduction, % variation since 2010

per tonne of product in our manufacturing operations
2010 to 2016 25%
2010 to 2017 29%
2010 to 2018 30%
2010 to 2019 31%
Water stewardship Why it matters

Water is a shared resource. Protecting it
We continue to support the AWS Standard
and have implemented it in 27 locations.
advocacy
Using the AWS Standard and targeting
must be a shared effort as well, especially
third-party certification of our manufacturing
in areas of scarcity. That is why we participate
facilities, we can demonstrate that we have
in partnerships and long-term projects
best practices in place for water management
to develop and evaluate solutions to the
Our commitment and conservation. We have committed to
challenges we face with regard to
Advocate for effective water water stewardship.
have all our Nestlé Waters factories certified
policies and stewardship by AWS by 2025. Other relevant food and
What we are doing beverage factories will also follow the
Our objectives same process.
Addressing water scarcity together
By 2020: Continue to build the 2030 Water Engaging with employees
Reducing strain on global water sources
Resources Group public-private partnership
cannot be achieved by one person or even Advocating for better water stewardship is a
by adding one more state or country per year
one company. It must be a collaborative business-wide endeavor. That is why we
In progress
effort. Multi-stakeholder platforms (MSPs) engage employees in what Nestlé is doing to
bring together companies, local governments improve industry standards. In 2019, we Joining WASH4Work
By 2020: Continue supporting the Alliance
and other relevant stakeholders to create hosted an internal livestream seminar on our 2019 saw us formally join the
for Water Stewardship Standard by
water solutions. Targeting our efforts in areas Caring for Water initiative. Around 350 WASH4Work initiative,
implementing it in five new locations
where we operate, Nestlé is a member of employees followed the seminar, with senior encouraging greater private
Achieved
MSPs in countries such as Bangladesh, Peru members of Nestlé Waters, Operations and a sector engagement in SDG
and South Africa. Learn more about how CSV Council member answering their efforts. Through this initiative,
these MSPs are driving changes in questions on Nestlé’s water use. we will improve access to water,
water efficiency. sanitation and hygiene (WASH)
Expanding our commitments in the workplace, in communities
Nestlé participates in several MSPs, including where our employees live and
the 2030 Water Resources Group (WRG), the across supply chains.
UN CEO Water Mandate and the Alliance for
Water Stewardship (AWS). These platforms
provide a strong support network for local
stakeholder engagement.
To date, the 2030 WRG has projects in
14 locations. Since 2018, the 2030 WRG
has been hosted by the World Bank, moving
from the International Finance Corporation.
This relocation has enabled the group to
scale up efforts.
Engaging with Why it matters

Most of our impact on water sources comes Making irrigation more accessible
our suppliers from agricultural activities in our supply
chains. It is by focusing our efforts here that
to farmers
Monitoring soil moisture before irrigating
we can have the greatest impact. We work farms can improve water use efficiency by
with our suppliers to improve the water 10–15%. However, often the technology
Our commitment
efficiency of their activities, tailoring efforts designed to do this monitoring is highly
Engage with suppliers, to address the specific water management expensive, meaning it is not a viable option
especially those in agriculture needs of various locations. for many farmers. We partnered with the
Institute of Water Informatics at LUMS
Our objective What we are doing University, Pakistan, to develop a more
By 2020: Implement all action plans defined We take pride in the close, hands-on cost-effective irrigation smart sensor. It
for improved water management in our relationships we have built with our suppliers, produces the same results but at a 10th of the
upstream supply chain for coffee, sugar, and we work with them across our price, costing between USD 200 (CHF 193.8)
dairy and cereals in high-priority locations agricultural supply chains to ensure water is and USD 250 (CHF 242.25). The sensors can
In progress used as efficiently as possible. As of 2019, we help farmers to reduce water use by up to 12%
have established 10 projects in 9 water- while increasing crop productivity by 15%.
stressed areas. Read more about this technology.
We work closely with farmers to improve the Read more about this commitment
water efficiency of their practices. In 2019, we
collaborated with the Swiss Government and
the Neumann Foundation to identify long- Improving irrigation efficiency
term solutions to water use efficiency during in Vietnam and Brazil
times of drought in Vietnam and Brazil. Read Water availability is a critical issue
more about how we are collaborating to for coffee farmers in Vietnam.
save water. Through our More Coffee with
Less Water project, in partnership
with the Swiss Government and
the Neumann Foundation, we
have worked with 50 000 coffee
farmers to improve irrigation
efficiency, resulting in water
savings of around 50 million m3
of water since 2013 with no loss
in product yield. The project
included the development of
WeGAP, an app that provides
farmers with advice on water
requirements.
Read more online

Access to water, Why it matters

Access to safe water, sanitation and hygiene
Introducing WASH for business
We achieved our target to provide access to
sanitation and hygiene (WASH) is a basic human right, and yet only
7 in 10 people have access to safely managed
WASH to 600 000 beneficiaries in 2017, three
years ahead of time, but that does not mean
drinking water services and 4 in 10 to safely we will stop there. Encouraging people in
managed sanitation services (WHO/Unicef). local communities to take ownership of their
Our commitment access to water, sanitation and hygiene
As a global business, we recognize our ability
Raise awareness on water to help address the situation and to contribute facilities, we have continued to develop water
conservation and improve to providing clean, potable water to people delivery systems. At the end of 2019,
access to water and sanitation based on local needs and resources. 896 168 people around the world were
benefiting from our WASH programs.
across our value chain Bringing WASH services
What we are doing to Ghana
Our objectives Developing tools for due diligence In August 2019, we expanded
By 2020: Implement detailed guidelines We want to direct our efforts to best address our partnership with the
on human rights to water and sanitation the needs of our communities. To improve International Federation of
due diligence in all Nestlé markets and key dialogue and engagement with the Red Cross and Red Crescent
agricultural supply chains communities surrounding our factories, we Societies to develop a safe
In progress developed a dedicated Community Relations WASH project in Ghana. The
Process tool in 2019 and piloted it in five project will provide relief from
By 2020: 600 000 beneficiaries in local countries: Colombia, Iran, Mexico, Pakistan strain on current potable water
communities have access to water, and South Africa. With this tool, factory sources, which are insufficient
sanitation and hygiene projects around managers and local staff can identify key for local communities.
our manufacturing facilities and key stakeholders in the communities where we
agricultural supply chains This development is part of our
operate and start a dialogue with them.
Achieved commitment to reaching 60 000
Concerns from local communities can be
people in communities from
identified and addressed if necessary. The
where we source cocoa.
tool will be rolled out throughout our markets
in 2020. Read more online

Acting on climate change

Why it matters We have received external recognition for
our efforts, achieving a score of 94 in the
Climate change impacts are already apparent
Environmental dimension of the 2019 Dow
in shifting weather patterns, extreme weather
Jones Sustainability Index and of 100 for
events and reduced resource availability.
Water, the highest possible score. We
Everyone, globally, will feel the effect of these
disclose our efforts to the CDP annually, and
changes, from the farmers who supply Nestlé
in 2019 maintained our position in the A list in
to the consumers who enjoy our products.
the Climate Change section.
Under current forecasts, global temperatures
We were also named as a Global Compact
could rise by 3–4°C, an increase that would
LEAD company in 2019 for our ongoing
drastically impact people and the planet
commitment to the Ten Principles of the UN
alike. Interventions and business initiatives
Global Compact and support of the SDGs.
must be developed with increased urgency to
deliver global reductions in greenhouse gas We know that climate change cannot be
(GHG) emissions and higher levels of resolved without collaboration. We will
resilience throughout the value chain. continue to develop more robust and wide-
reaching initiatives as we move into the final
Our contribution year of our 2020 commitments and work
In 2019, we scaled up our efforts to reduce our toward 2050 ambitions. In 2019, we worked
Our commitments to acting on climate change: Our work on acting on climate with Lancaster University to assess the
environmental impact, as well as that of our
change contributes to the impact of various climate change scenarios
47 Provide climate change leadership suppliers. We announced a new ambition to
following SDGs: on our business and how we can disclose
achieve zero net GHG emissions by 2050, in
48 P
romote transparency and proactive,
line with the UN climate pledge. To guide our the results in line with Task Force on
long-term engagement in climate policy
efforts, we have identified several key actions: Climate-related Financial Disclosures
fight deforestation in partnership with other (TCFD) recommendations.
organizations; reduce food loss and waste;
work with dairy farmers to reduce GHG
emissions; develop alternative packaging

solutions; and help suppliers manage soils
through regenerative agriculture and tree
planting. We are also investing more in
renewable energy in our factories.
Climate change Why it matters

Climate change is already having a global
while emissions from distribution operations
fell by 10.6%. In 100 major warehouses,
leadership
emissions have been cut by 35% to date
impact. Food and agriculture is one of the
versus 2014, exceeding our 2020 target. This
sectors that will be most impacted by climate
was achieved through sourcing renewable
change, and it is imperative that we act to
energy, improving vehicle capacity utilization,
limit GHG emissions and build resilient
Our commitment and creating and rigorously monitoring
farming systems so we can continue to
Provide climate change leadership provide food for the world. This is, however,
action plans.
a systemic issue, and collaboration between Setting a 1.5°C target
Our objectives
businesses, consumers and governments As climate science has developed, so has our
By 2020: As a member of RE100, aim to is needed to safeguard the climate and ambition to reduce our operational impact. In
procure 100% of our electricity from renewable environment for future generations. September 2019, we announced plans to
sources with the shortest practical timescale
accelerate our commitment to tackle climate
In progress What we are doing change. With the expiration of our 2°C
Increasing our renewable energy science-based target at the end of 2020, we
By 2020: Reduce greenhouse gas (GHG) Rolling out plant-based
procurement have committed to achieving zero net GHG
emissions (Scope 1 and 2) per tonne of product products for the planet
In 2019, we continued our commitment to emissions by 2050 and aligning our efforts
in every product category to achieve an overall By launching more plant-based
procuring 100% of electricity from renewable with the ambitious 1.5°C target outlined in the
reduction of 35% in our manufacturing products with a smaller
sources. 189 of our factories (approximately most recent Intergovernmental Panel on
operations versus 2010 environmental footprint, we can
one-third) now purchase 100% renewable Climate Change report.
In progress support our aim to achieve net
electricity, including our facilities in Western
More than 90% of our GHG emissions occur zero emissions by 2050.
Europe and most facilities in Latin America.
By 2020: Reduce GHG emissions per tonne along our value chain*. We will address these
Progress is underway to bring biomass Read more online
of product by 10% in our distribution through a range of product developments
boilers to some of our facilities in Spain and
operations versus 2014 and collaborative actions with our suppliers.
Malaysia, replacing current natural gas
In progress Read more about how we are developing our
installations. Learn more about our renewable
climate change mitigation strategy.
energy procurement.
By 2020: Reduce GHG emissions per tonne
Replacing synthetic refrigerants
of product by 10% in the 100 major Cutting our emissions
We are phasing out synthetic refrigerants
warehouses we use versus 2014 Innovation is key to achieving significant
with high global-warming potential, such as
Achieved reductions in GHG emissions. More than
hydrofluorocarbons (HFCs) in our industrial
100 new projects have been identified in the
refrigeration systems. We are expanding our
By 2020: Expand the use of natural Europe, Middle East and North Africa
use of natural alternatives, including CO2,
refrigerants, which do not harm the ozone (EMENA) area, including upgrading to LED
ammonia, water, air and hydrocarbons. In
layer and have a negligible impact on climate lighting, optimizing energy consumption
2019, we installed eight new units that use
change, in our industrial refrigeration systems during non-production times, increasing
natural refrigerants.
In progress biomass steam usage versus gas usage and
recovering heat energy. Read more about this commitment
In 2019, overall Scope 1 and 2 emissions per

tonne of product fell by 34% versus 2010, * O
ur GHG emissions are estimated following the GHG
Protocol Corporate Value Chain (Scope 3) Accounting
and Reporting Standard
Proactive engagement Why it matters

Climate change is a global issue and not
Engaging with investors
We know our investors want to support
on climate change one that can be tackled by just one person,

one organization or one government. If
companies that act sustainably and are
transparent about their activities and
greenhouse gas (GHG) emissions are to be developments. We maintain a dialogue with
stabilized, let alone reduced, it is going to over 360 investors from across the globe
Our commitment through the Climate Action 100+ initiative.
take everyone working together to combat
Promote transparency and damaging practices. Following the redefinition The initiative was designed to ensure that
proactive, long-term engagement of the ‘safe’ limit of climate change from 2°C 100 systematically important GHG emitters,
in climate policy to 1.5°C by the Intergovernmental Panel on including Nestlé, take necessary actions
Climate Change, policy changes and climate against climate change. We also engaged
Our objective initiatives need to be more ambitious than with investors through our collaboration with
By 2020: Implement the Guide for ever before. As a global company, Nestlé is the WBCSD to understand what information
Responsible Corporate Engagement in Climate well positioned to advocate for, and promote, they are interested in seeing reported and
Policy developed by CDP, the UNGC, Ceres, long-term engagement in climate policy, both areas where we can enhance our disclosures.
The Climate Group, the WWF and the World within and outside our organization. Read more about this commitment Assessing our resilience in
Resources Institute
various climate change
In progress What we are doing scenarios
Assessing our resilience We have collaborated with
In June 2019, the Task Force on Climate- Lancaster University, UK, to
related Financial Disclosures (TCFD) released build a more robust review of the
a status report, noting a low level of corporate impact of different climate
disclosure on the resilience of business scenarios on three of our key
strategies under different climate scenarios. commodities: coffee, wheat and
While we already report risks of climate dairy. Our first disclosure on the
change to our performance under the project was made in our Annual
financial review section of our annual report, Review 2019 (p65), in line with
in 2020 we are – for the first time – disclosing TCFD requirements.
the risks to Nestlé of climate change in our
annual financial report, in line with the Read more online
recommendations of the TCFD. We are one
of six food, agriculture and forest products
companies collaborating with the World
Business Council for Sustainable
Development (WBCSD) to create sector
guidance best practice for addressing TCFD
requirements and recommendations.
Safeguarding the environment

Why it matters Our contribution
We depend on forests, soil, oceans and the In 2018, we announced our ambition to make
climate – not only for a sustainable supply 100% of packaging recyclable or reusable by
of ingredients but also to maintain 2025 in a bid to prevent any of our packaging
environmental conditions suitable for life. ending up as litter in landfill or in the oceans.
Yet, globally, resources are being used in an We made strong progress in this area in 2019,
unsustainable manner. Indeed, if the whole with the roll-out of recyclable and recycled
world consumed at the same rate as the packaging for several of our brands. Our
richest countries, we would need between first-in-the-industry packaging science
three and five Earths to sustain consumption institute is enabling us to accelerate work on
(Global Footprint Network). If these sustainable packaging solutions.
unsustainable habits go unchecked, the
The topic of biodiversity is of particular
knock-on effects on people, natural habitats
importance for business in 2020, with both
and animals will be drastic. Predictions
the 15th Convention on Biological Diversity
state that if we take a business-as-usual
Conference of the Parties and the IUCN
approach to production, waste and diets,
World Conservation Congress taking place.
by 2050 the extinction rate could reach
Driven by this, the One Planet Business for
1043 extinctions per million species (Eat-
Biodiversity (OP2B) coalition, of which Nestlé
Our commitments to safeguarding the Our work on safeguarding the Lancet Commission report).
is a signatory, is an opportunity for Nestlé and
environment: environment contributes to the
While we consume more resources, we are other members to demonstrate leadership in
following SDGs:
50 I mprove the environmental performance simultaneously producing more waste, with a biodiversity protection. Through this initiative,
of our packaging predicted 3.4 billion tonnes of waste we will work with other member companies
produced annually by 2050 (World Bank). to accelerate transformational change in food
51 Reduce food loss and waste
Each year, approximately 8 million tonnes of and agriculture systems to protect
52 P
rovide meaningful and accurate plastic is dumped in the ocean (Plastic biodiversity, for the benefit of people and
environmental information and dialogue Oceans), while a third of all food produced for planet alike. In 2019, Nestlé rolled out a new
human consumption is wasted or lost (FAO). business approach, centered around
53 Preserve natural capital
protecting and restoring natural spaces and
working with farmers to diversify their crops
and land use.
Improve packaging Why it matters

The issue of packaging waste, notably plastic
Managing packaging waste and
marine littering
performance waste, is of particular public concern.

However, packaging is necessary for food
Collective action is vital to ensuring packaging
stays out of the environment. In 2019, we
safety and quality, protecting food in achieved our commitment to drive alliances
transportation, extending its shelf life and with relevant stakeholders in 10 markets. We
Our commitment now have 15 initiatives running across the
reducing food waste. This makes food and
Improve the environmental beverage packaging a unique challenge for world, including Project STOP, a collaborative
performance of our packaging Nestlé and our industry. We must develop project to prevent leakage of waste into the
solutions that reduce packaging volume and environment. Read more about how Project
Our objectives impact without compromising on protection. STOP is improving community recycling
By 2020: Continue to systematically analyze We envision a future without waste, and this efforts and infrastructure.
and optimize our packaging portfolio, means not only increasing plastic recycling, Through our Nestlé Cares program, launched
avoiding the use of at least 140 000 tonnes but also identifying alternatives, whether in in June 2019, 13 000 employees participated
from 2015 to 2020 the form of new delivery systems or materials. in beach cleanups in over 80 countries. With
Achieved the help of over 900 partners, such as NGOs,
What we are doing local governments and schools, 140 tonnes of
Developing packaging-free
By 2020: Drive alliances with relevant delivery systems and reuse
Achieving our plastic ambition waste was collected, separated and recycled.
stakeholders to address packaging models
We have already achieved our 2020
waste management and marine littering Developing our approach to packaging In a few selected countries,
objectives, but we know we must go much
in 10 relevant markets Several products, including our Yes! Nestlé Purina now sells dry pet
further, which is why we are now focused
Achieved snackbars and Poland Springs water, food without packaging to
on a new commitment to make 100% of our
now come in recyclable or 100% recycled customers who can bring and
packaging recyclable or reusable by 2025.
packaging. We are also piloting alternative fill their own containers.
This is ambitious, with much work required
to achieve it, but we are determined to get delivery systems to offer consumers
Read more online
there. In 2019, 87% of our packaging was the same products they know without

recyclable or reusable. We used 4.6 million the single-use packaging. To guide our
tonnes of packaging material in 2019 (2018: activities beyond 2020, we have developed a
4.7 million tonnes). three-pillar roadmap. Read more about our
packaging plans.
We are also working to increase recycled
content. In 2019, 26% of packaging used in R
ead more about this commitment, including
information on the global plastic tonnage and
our operations contained recycled materials.
use by type
For plastic packaging, we used 2% recycled
plastic. Of our packaging materials, 37%
were renewable. We have exceeded our
commitment to eliminate 140 000 tonnes of
packaging by 2020. In 2019, the volume of
packaging avoided since 2015 rose to
142 663 tonnes.
Reducing food loss Why it matters

Approximately 1.3 billion tonnes of food is
Reducing operational waste
Thanks to concentrated efforts, we are on
and waste lost or wasted annually (FAO). Half of this is

nutrient-rich foods such as fruit and
track to achieve zero waste for disposal in all
Nestlé sites, achieving absolute reductions of
vegetables (WWF). Food losses are 96% since 2009. In 2012, we began work in our
measured not only by nutritional value losses on-site restaurants, engaging employees in
Our commitment cutting food waste. In our headquarters
but also by environmental impact. It has been
Reduce food loss and waste estimated that, by 2050, greenhouse gas restaurant, we have been measuring and
(GHG) emissions from food loss and waste reducing food loss and waste for the same
Our objectives time period. As of 2018, the initiative has
could reach 5.7–7.9 Gt CO2e annually (WWF).
By 2020: As a member of Champions 12.3, Food loss and waste occurs throughout the resulted in food waste per tray decreasing
accelerate progress toward halving value chain, from farm production, handling from 70.32 g per day to 47.25 g, amounting to
food waste by 2030 and storage issues to packing and distribution 838.67 tonnes less food waste annually
In progress at the factory and, finally, during consumption (between 2012 and 2018). All waste produced
by the consumer. is recycled into liquid fertilizer or transformed
By 2020: Achieve zero waste for disposal into biogas. Next year, we will be piloting
in our sites What we are doing automated weight technologies to measure Clarifying what food
In progress daily food waste in different factories. labels mean
Cutting supply chain food losses
In Europe and North America,
As an active member of Champions 12.3, we
By 2020: Make date labels understandable Read more about this commitment per capita waste is 95–115 kg
continue our work toward target 12.3 of the
to our consumers to reduce food waste at every year (FAO). Often this is a
UN SDGs: by 2030, halve per capita global
consumption stage result of poor meal planning or
food waste at the retail and consumer levels
In progress misunderstanding of food labels.
and reduce food losses along production and
We are simplifying our labels to
supply chains, including post-harvest losses.
make it easier to understand the
In 2019, we identified five key commodities
difference between ‘best before’
upstream in our supply chain where losses
and ‘use by’ to help reduce
were most significant: palm oil, cereals, dairy,
unnecessary food waste.
fruit and vegetables. Taking this information,
we can locate hotspots for food waste and
loss and work with farmers to devise
solutions. Read more about how we work
with farmers to cut food losses.
Promoting sustainable Why it matters

Consumers want to act more sustainably.
Cutting waste in the home
Sustainable consumption throughout our
consumption With our international scale and reach,

we are ideally situated to provide product
value chain is only possible if our consumers
feel engaged. That is why we have developed
information that helps them do so. With direct a series of guides, stories and advice on how
access to millions of people across the world, they can cut food waste in the home. From
Our commitment recipes using leftovers to meal planning to
we can use our products and platforms to
Provide meaningful and encourage positive change in terms of reduce unnecessary food purchases, learn
accurate environmental recycling, energy efficiency and sustainable how we are inspiring consumers.
information and dialogue food choices on a global scale.
Our objective What we are doing

By 2020: Improve the availability and Providing consumers with
consistency of fact-based environmental environmental information
information for consumers on our digital We want our consumers to be able to access
and other channels environmental information easily, which is Highlighting the benefits of
In progress why 84% of the pages on our corporate leftovers in Greece
website now display fact-based information
Through an online video series,
in a visible and easy-to-understand format.
Maggi consumers in Greece are
However, we do not want to keep
encouraged to explore the
environmental information just online. We are
benefits of utilizing leftover food
currently looking to update our Nestlé
in healthy and tasty recipes. The
Nutritional Compass to allow for sustainability
Change Your Taste campaign has
initiatives to be presented on packs as well.
had 2.5 million views to date over
several social media platforms
and is having a positive impact on
consumers, helping them to get
creative with leftovers.
Read more online

Protecting natural Why it matters

We are a business that relies on raw
Halting deforestation
By the end of March 2019, 76% of our
capital materials. To ensure our success and protect

the planet, we must work with suppliers and
agricultural raw materials are confirmed as
deforestation-free. While we will not meet our
farmers to help them improve their practices. target of being completely deforestation-free
by 2020, we anticipate being above 90% by
Our commitment Water scarcity is a growing problem globally, 2020. We are working with smallholder
Preserve natural capital while deforestation continues as areas are farmers and large suppliers alike to be close
cleared for agricultural activities. We must to 100% deforestation-free within the next
Our objective make use of the tools and expertise available three years. To this end, we will continue to
By 2020: 70% of the volume of our 15 priority to us and do what we can to protect these act on different fronts:
categories of raw materials have been natural resources that are essential for a
• Using technology developed in partnership
assessed against our Responsible Sourcing sustainable supply of our raw materials.
with organizations such as Airbus,
Standard requirements and are compliant,
or improvement plans to preserve natural What we are doing including satellite monitoring and
blockchain, to drive transparency and
capital are ongoing Protecting, restoring and diversifying ensure accountability.
In progress natural capital Monitoring deforestation in
• Supporting smallholder farmers to conserve our supply chain
In 2019, 70% of the volume of our 15 priority
forests while improving their livelihoods.
categories of raw materials was responsibly Over the last 10 years, we have
sourced. As we continue to work toward our • Advocating for greater disclosure and for the developed an integrated
overall commitment to preserve natural creation of sector-wide approaches to share approach to address
capital we must maintain and improve on this. know-how and bring solutions to scale. deforestation risks in our supply
We have developed a three-pronged chains through supply chain
approach toward natural capital: protect, mapping, certification, on-the-
restore and diversify. This approach supports ground verification, satellite
our aims to reduce deforestation and monitoring and landscape
minimize our impact on the ocean as well as projects. Satellite imagery from
working with farmers to restore natural the Starling system, which we
environments and support biodiversity. developed in collaboration with
Read more about our approach. Airbus and Earthworm
Foundation, has also aided our
efforts and is now being used to
monitor our entire palm oil
supply chain.
Read more online

Reporting and governance

Our governance systems and approach to business ethics are
fundamental to our organization. We publicly share these, as well
as our comprehensive reporting processes, as outlined below.
Our performance in leading indices

Doing business right Prioritizing key issues Awarding good work We are not driven by awards and recognition.
Ethical principles are fundamental to To ensure our sustainability efforts keep The Nestlé CSV Prize is awarded every Nonetheless, we are proud to have our
how we operate. This means zero up with a changing world, we conduct a two years to recognize and promote efforts and achievements in sustainability
tolerance for fraud, bribery and materiality analysis every two years. initiatives that address nutrition, water acknowledged by world-leading ratings and
corruption and increased efforts in the and rural development. rankings agencies:
protection of personal data and open Materiality
disclosure of tax payments. Creating Shared Value Forum
Nestlé has been consistently listed

Ethical business
Talking to the right people in the FTSE4Good responsible
We always seek the advice of the best Bringing new ideas to life investment index since 2011.
experts and advocates to make our CSV Through the CSV Prize and our open
Being transparent at all times business approach as robust as it can be. platform HENRi@Nestlé, we aim to Nestlé was ranked 1st out of 22
The tax we pay is an integral part of nurture the ideas and innovations that global food and beverage
Stakeholder engagement manufacturers in the 2018 Access
Creating Shared Value (CSV), and we will shape the future.
to Nutrition Index (ATNI).
believe it is good practice to openly
disclose information about our taxes as Supporting innovative ideas
part of being a responsible and Collaborating for Nestlé was rated AA by MSCI ESG
Research for its performance on
transparent organization. major change environmental, social and
Collaboration is an essential element to

Aligning our ambitions and governance (ESG) issues.
Taxation
tackle global issues like rising obesity, commitments with the UN Nestlé maintained its top scores in
child labor and climate change. Sustainable Development the 100th percentile in the categories
Putting our values Partnerships and collective action Goals (SDGs)

of Health & Nutrition and
Enviromental Policy, as well as
at the heart of what we do Our commitments and ambitions are receiving a score of 100 in the
Water category.
Building our business on clear principles closely aligned with the 17 SDGs.
and sound governance maintains the
Contributing to the Global Goals Retained our place in CDP’s
trust in the Nestlé brand and reduces Climate A list and rejoined CDP’s
risk in the value chain. Water A list.
Governance and policies

About this report Data scope and methodologies

Unless otherwise noted, the performance
UN Global Compact Communication
on Progress
Where to find more information
This document forms an integral
data included in this report corresponds to Every year, Nestlé submits its Communication part of Nestlé’s UN Global
Our 2019 Creating Shared Value companies that are consolidated in our on Progress to demonstrate its commitment Compact (UNGC) Communication
Progress Report provides our financial statements. to the Ten Principles of the UN Global on Progress, together with:
Compact and support of the SDGs on
shareholders and stakeholders Our safety and health data covers 275 557 human rights, labor, environment and
with a summary of our 2019 employees, while our environmental data anti-corruption.
performance against our refers to factories and warehouses, with the
exception of some recent acquisitions. UN Guiding Principles Reporting
commitments. We provide further Framework
Our climate change disclosures conform with
detailed information online. the Climate Disclosure Standards Board
The UNGP Reporting Framework offers
comprehensive guidance for companies to
framework requirements. We also follow the report on salient human rights issues. This is
standards of the Greenhouse Gas Protocol to Our Annual Our CSV
in line with the UN Guiding Principles on Review web pages
establish our GHG inventory.
Reporting period, scope Business and Human Rights. Our human
rights reporting meets the Tier 1 assurance
and boundaries See our response to the CDP Investor
indicators of the UNGP Assurance Framework.
Information Request for comprehensive
This report covers our global operations for Go to www.nestle.com/CSV,
details of our climate change disclosures We address our responses to the Framework
the calendar year ending December 31, 2019. where you can also find more
and performance. in our Index of Answers.
It contains data for wholly owned companies detailed governance information,
and subsidiaries but excludes joint ventures Reporting frameworks Audience performance data, case studies
and suppliers unless specifically stated. and additional audio and video
Our CSV report serves as a transparent tool, We maintain ongoing dialogue with a wide
‘Markets’ refers to our business and/or content.
outlining our performance in 2019. It has been range of stakeholders interested in this
activities at a national level, while ‘Zone’
produced in compliance with several report. They include investors, non- Our Human Rights Index and GRI
refers to a geographic group of markets.
reporting frameworks. governmental organizations, ESG services, Content Index are available as
This report is focused on progress to date consumers and suppliers. separate PDFs.
Global Reporting Initiative
against our commitments and objectives,
The Global Reporting Initiative (GRI) is an Our Corporate Business
which are based on the most material issues. Currency conversion Principles are the basis of our
international independent standards
These were updated during our most recent All amounts in this report have been converted
organization that helps businesses, company’s culture and are
materiality assessment in 2018. The process to Swiss francs (CHF) using the exchange rates
governments and other organizations available as a PDF.
reviewed economic, social and environmental reported in the consolidated financial
understand and communicate their impacts Read more:
issues that are of most concern to our statements of the Nestlé Group 2019.
on issues such as climate change, human
external stakeholders against those that pose
E xplore our full GRI Content Index
rights and corruption. This report has been
risks or present opportunities to Nestlé. The
prepared in accordance with the
Contact us
See the awards and recognition we
results have informed the content of this We hope you find this report engaging have received
Comprehensive option of the 2016 GRI
progress report and that of our CSV web and informative, and we continue to welcome
Standards, and the Food Processing Sector
pages, in line with the GRI 2016 Standards your input and views:
Supplement, and externally assured by Bureau
materiality principle (see Reporting creatingsharedvalue@nestle.com.
Veritas. See the full GRI Content Index.
frameworks).
Independent assurance Summary Assurance Statement

from Bureau Veritas UK Ltd
statement Bureau Veritas UK Ltd. (Bureau Veritas) has
provided independent assurance to Nestlé
SA (Nestlé) over the Creating Shared Value
We engaged a third-party
Progress Report 2019 (‘the CSV Report’)
organization, Bureau Veritas, to published on the Nestlé website
provide independent assurance (https://www.nestle.com/csv). The assurance
for this 2019 progress report. This process was conducted in line with the
requirements of the AA1000 Assurance
process aims to provide assurance Standard (2008 with 2018 addendum) Type 2
to Nestlé’s stakeholders of the at moderate level of assurance. The scope of
accuracy, reliability and objectivity Bureau Veritas’ work was limited to Nestlé’s
head office based activities where Nestlé
of the reported information and consolidates and reconciles data provided by
to confirm that it covers our most its markets/countries of operation. The
material issues. 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 2020
Our key performance Nestlé in society and Creating Shared Value key performance indicators 2019 2018 Page GRI
Standards
indicators Economic
Total Group sales (CHF million) (a) 92 568 91 439 AR p1
Net profit (CHF million) 12 609 10 135 AR p49 201-1, FP4

Nestlé’s key performance
(b)
Nutrition
indicators (KPIs) provide metrics
Products meeting or exceeding Nestlé Nutritional Foundation profiling criteria (as % of total sales) (c) 80.5 82.5 201-1
to measure and report Creating
Percentage of total sales volume of consumer products which have been changed for nutrition and health considerations 8.4 9.1 FP6, FP7
Shared Value, sustainability
Products analyzed and improved or confirmed via 60/40+ program (sales, CHF million) (d)
34 166 32 823 416-1
and compliance. The following Products featuring Nestlé Nutritional Compass labeling (% of sales worldwide) (e) 96.4 95.6 14 417-1
performance summary forms Products with guideline daily amounts (GDA) labeling on front of pack (% of sales) (f) 88 87.3 14 417-1
part of our Communication Children’s and family products that provide Nestlé Portion Guidance (%) 61.9 65.4 15 417-1
on Progress to implement the Nestlé television advertising to children under 12 in compliance with policies on responsible marketing (%) 98.6 99.2 417-3
principles of the United Nations Total number of countries where the Nestlé Policy and Procedures for the Implementation of the WHO International
33 28 18 417-3
Code of Marketing of Breast Milk Substitutes practices were audited
Global Compact (UNGC). Unless
Infant formula marketing staff in higher-risk countries trained on the WHO Code (% of staff) (g) Discontinued 98.5 103-2
otherwise stated, performance
Total number of Nestlé employees who had completed training in Breastfeeding and the WHO Code 1428 5883 18 103-2
indicators are for the calendar Rural development
year ending December 31, 2019. Farmers trained through capacity-building programs 429 800 440 000 203-1
Percentage of purchased volume fully compliant with the Nestlé Supplier Code (h)
66 61 42 FP1
Water (l)
Total water withdrawal (million m3) 121 127 42 303-1
Total water withdrawal (m3 per tonne of product) 2.28 2.33 303-1
To provide transparency for our stakeholders,
we have indicated the correlation between Environmental sustainability
our KPIs, our commitments and Global Production volume

Reporting Initiative (GRI) indicators in the Total production volume (million tonnes) 53 54.2 102-7
table opposite.
Materials
The references in the GRI column relate to Raw materials used (million tonnes) 25 24 301-1
the applicable indicator from the 2016 Materials for packaging purposes (million tonnes) 4.6 4.7 50 301-1
GRI Standards. We report against these
Packaging source optimization (kilotonnes saved) 24 15 301-1
Standards in line with our material issues,
which are identified through our stakeholder Energy
engagement process and shape our public Total on-site energy consumption (petajoules) 87.8 88.1 302-1
commitments. Total on-site energy consumption (gigajoules per tonne of product) 1.66 1.63 302-1
Total on-site energy consumption from renewable sources (% total) 20 18.7 302-1
Total direct energy consumption (petajoules) 59.4 60 302-1
Total direct energy consumption from renewable sources (% total direct) 12 12.5 302-1
Total indirect energy consumption (petajoules) 67.9 67.7 302-1

a) Does not include joint ventures

Nestlé in society and Creating Shared Value key performance indicators 2019 2018 Page GRI
Standards b) Includes Nestlé’s share in net result of joint ventures
Environmental sustainability continued c) Total Nestlé (F&B except CPW, NHSc, Pharma,
Nespresso, CPW and businesses not in GLOBE
Biodiversity reporting) excluding non-edible products (78.4% in
Total size of manufacturing sites located in protected areas (hectares) (i) Discontinued 18.8 304-1 2016 with comparable baseline)
Emissions, effluents and waste d) In the 60/40+ program, Nestlé products tested with
consumers must be preferred over the competitor’s.
Direct GHG emissions (million tonnes CO2eq) 3.3 3.3 305-1, 305-2 Assessment results are valid for a maximum of three
years if all parameters remain equal
Direct GHG emissions (kg CO2eq per tonne of product) 62 62 305-1, 305-2
e) PetCare, Gerber Life, Nestlé Health Care Nutrition,
Indirect GHG emissions (million tonnes CO2eq) 2.3 2.5 305-1, 305-2
Wyeth Nutrition, other Nestlé Health Science
Indirect GHG emissions (kg CO2eq per tonne of product) 43 46 305-1, 305-2 businesses and non-Nestlé-branded products in
Nestlé Waters are out of scope
Total water discharge (million m )3
67 75 306-1
f) Includes all F&B and Nestlé Waters except plain water.
Total water discharge (m3 per tonne of product) 1.27 1.39 306-1 It excludes joint ventures, Nestlé Nutrition, Wyeth
Average quality of water discharged (mg COD/l) 55 41 306-1 Nutrition, Nestlé Health Science and specific category/
country exemptions
By-products (kg per tonne of product) 31.5 30.6 306-2
g) As of 2019, the KPI on infant formula marketing staff in
Waste for disposal (kg per tonne of product) 0.3 0.6 306-2 higher-risk countries trained on the WHO Code is no
longer reported. Moving forward it will be included in
Environmental sustainability governance
the total number of employees trained in
Manufacturing sites certified against ISO 14001 (% of total manufacturing sites) 96 96 103-2 Breastfeeding and the WHO Code
Human rights and compliance h) In 2016, scope extended to include service and indirect
materials with target of 50%
Total number of significant product recalls or incidents of noncompliance 12 6 416-2
i) Nestlé has decided to no longer report the total size of
Total number of FTSE4Good countries of concern, and number in which human rights impact assessments have manufacturing sites located in protected areas. As a
Discontinued 12 103-2
been carried out on Nestlé operations (j) measure of biodiversity this is now no longer seen as a
Number of employees trained on human rights 125 321 101 613 412-1 materially important way to communicate our
dependency and impact upon biodiversity
Our people
j) Tracking discontinued in 2019. Nestlé has moved to
Total workforce (number of employees) (k) 275 628 308 301 102-8 conducting human rights impact assessments in the
Total rate of new employee hires (%) (k) 12.6 11.1 401-1 upstream supply chain
k) Covers Nestlé employees registered in HR system
Total rate of employee turnover (%) (k)
17.3 15.7 401-1
(approximately 84% of all employees)
CARE gaps identified related to Business Integrity (l) 49 67 102-17
l) CARE, our global external audit program, is conducted
Of which: Minor 25 32 102-17 by three audit companies and verifies that all
employees and sites we own or operate comply with
Major 1 0 102-17 local legislation, our Corporate Business Principles
Critical 0 0 102-17 and Code of Business Conduct. The audits take place
every three years
Observation 23 35 102-17
m) Training hours are based only on information recorded
Total number of fatalities (employees, on-site contractors and on-site members of public) (k) 5 3 403-2 in the Learning Management System (LMS). The
numbers would be higher if manually recorded training
Average hours of training per year per employee (m) 23.8 42.4 404-1
hours were considered. Training hours per employee
Leadership positions held by women (%) (n) 42 43.2 38 405-1 covers 100% employees in the system
Local Management Committee members native to country in developing countries (%) (k)
85.5 83.01 202-2 n) Nestlé has changed the definition of this KPI and
moved from a definition driven of the job catalogue to
a definition based on grades

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Creating Shared Value

and meeting our commitments

Progress Report 2019

A message from our Global Compact LEAD company in recognition

Creating Shared Value In order to achieve these ambitions, we have

Focusing on our Our 2018 materiality assessment

material issues to bring both non-financial and financial risk

biggest impact for Nestlé, we regularly

The materiality process

Responsible marketing and influence

to our business and our stakeholders.

Data privacy and cyber security

Moderate Significant Major

Impact on Nestlé’s success

Our 2020 commitments and progress

New In progress Achieved

Offering tastier and healthier choices

Launching more Why it matters

nutritious products development in children. It can be a challenge

Reducing sugars, Why it matters

sodium and fat

45% 45% 10% Our foods and beverages

*  These results apply to products within the scope of our

Adding vegetables, Why it matters

fiber and whole grains especially children, do not consume enough

Simplifying Why it matters

ingredient lists the foods and beverages they consume – and

* This objective does not currently apply to our pet

Micronutrient Why it matters

Inspiring people to lead healthier lives

Providing nutritional Why it matters

Offering portion Why it matters

Marketing Why it matters

healthy choices and beverages that support a healthy

Promoting healthy Why it matters

behaviors in children practices from an early age gives children a

Supporting Why it matters

breastfeeding conception until two years old, is essential

Encouraging Why it matters

Health-promoting Why it matters

Building, sharing and applying nutrition knowledge

Sharing nutrition Why it matters

Enhancing Why it matters

biomedical science However, healthcare systems may not be able

For our communities 2030 ambition: Our global youth initiative,

Enhancing rural development and livelihoods

Delivering impact Why it matters

through Farmer the rural communities in which they live are

Connect impact our supply chain. Many farmers also

Read more about this commitment

Improving Why it matters

farmers’ diets assessments showed that shortage of food

Implement Why it matters

Responsible coffee Why it matters

sourcing commodities. Globally, demand for coffee

Read more about this commitment

Nestlé Cocoa Plan Why it matters

Respecting and promoting human rights

Assess and address Why it matters

Read more about this commitment

* Our partner the Fair Labor Association has an ongoing

Protecting workers Why it matters

* These results apply to products within the scope of our

* This objective does not currently apply to our pet

* Our partner the Fair Labor Association has an ongoing