“Good Food Good Life” The Nestlé approach to Sustainability

Creating Shared Value

• Founded 1866 in Switzerland • “think globally and act locally”• Nutrition, Health and Wellness Company• Strong portfolio of brands and innovations driving growth• 480 factories; about half in developing countries ,276 050 employees• Fortune global 500 listing , World's most profitable corporation• Dow Jones sustainability rankings, Top performer food organisation

Facts about Nestlé: World’s Largest Food & Beverage Company

Nestle Controversies• Aggressive promotion of Infant milk Formula Caused replacement of breast milk• Coco Pops Advertisement on children's channels Promotion of An unhealthy breakfast• Unethical Procedures in developing countries Unfair trade practices e.g. COCOA , Maggie India Raw Material, Labour Issues, Misleading Advertising

Child Labour/ Low wages to the workers Palm Oil Animal Abuse

Creating Shared Value - 3 Focus areas

Value for Society: rural development; reduced impact on energy/water availability/waste/packaging Value for Nestlé: sustainable profitable growth by meeting increasing demand, risk and cost reduction

Environmental Sustainability Water Usage

• Water usage reduced by 58%, 1999-2008

• 68% Production increased • Value for Society – Reduced impact on water availability/ waste /

packaging/vocal advocacy

• Value for Nestle - risk and cost reduction

Energy Emissions• Energy consumption down 47% per tonne

• GHG emissions down 52% per tonne of product 1998 – 2007

• Value for Society – Reduced Carbon Footprint

• Value for Nestle - risk and cost reduction

Environmental Sustainability - Packaging

Value for Society: reduced impact on waste/packaging

Value for Nestlé: risk and cost reduction

Rural Development :- agriculture/sourcing and trainingRegional Development Centres

• Value for Society: knowledge sharing, improved agricultural & water management practices

• Value for Nestlé: quality supplies from motivated, enabled farmers

Creating Shared Value with coffee farmers• Direct purchasing• AAA Sustainable Quality™ Programme

• Value for Society: coffee farmers grow income, farm more sustainably

• Value for Nestlé: quality supplies from motivated, enabled farmers

Rural Development : Opening Milk Districts

Nestlé's various Industries

Providing Shared value and Nutrition • Product innovation/renovation

• Health benefits: Branded Active Benefits

• Micronutrients: vitamins, minerals and trace elements

• Reducing: Trans fatty acids, Salt, Sugar Content removed

Value for Society: improved access to quality, scientifically enhanced nutrition products

Value for Nestlé: income growth opportunity

Wellness and health for School Children Nutrition education to children

Reaching out to community and kids (ROCKS) - Nestles 2005 Initiative

Increasing suppliers income and bringing micronutrient fortification

• Micro- entrepreneurs• Affordable fortified milks, nutritional sachets

Value for Society: income creation, Skills transfer, microfinance, micronutrient fortification

Value for Nestlé: route to market growth

Providing training to other SME’s in the food industry

Value for Society: Skill Transfer, reduce obesity, nutritious and hygienic products

Value for Nestlé: route to market growth, Competitive advantage

Nestle Carbon Footprint

• Climate Disclosure Leadership Index Award • Disclosure and performance In Carbon Disclosure Project (CDP) Investor programme• Producers’ list by Dow Jones Sustainability Index, for their initiative in decreasing and

carbon outflows• Reduction of GHG emissions by 24% during the period of 2002 till 2012• Nestle switched to Natural resources and cleaner fuels to improve energy proficiency• In 2015 will further reduce the GHG discharges per tonne of product by 35% • Nespresso agro-forestry programme- The planting of trees offers a way for the

company to compensate the carbon footprint within its own value chain