Creating Shared Value and Sustainability Report 2020 - Nestlé. Unlocking the power of food to enhance quality of life for everyone, today and for ...
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Creating Shared Value and Sustainability Report 2020 Nestlé. Unlocking the power of food to enhance quality of life for everyone, today and for generations to come.
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 2
A message from our Chairman and CEO
Nestlé. Unlocking the power Despite the clear challenges of the past year, we
have continued to respond to consumer demands
Contents
of food to enhance quality of and do our part for the planet by developing
products that deliver great taste and nutritional
2 Creating Shared Value
life for everyone, today and value while minimizing their environmental impact. 3 Our journey
For example, we have significantly invested in plant- 4 Individuals and families
for generations to come based products, launching Garden Gourmet brand’s
Sensational Burger and Sensational Vuna, our vegan
5 Communities
tuna alternative, in Europe. 6 Planet
7 What’s next?
2020 was an extraordinary and challenging Our commitment to supporting youth opportunities
8 Our 2020 commitments
year. The COVID-19 pandemic severely has also not wavered. Amid the pandemic, we
and progress
have scaled up online training to ensure continuity
impacted everyone’s lives and created of our internship and apprenticeship programs. 9 For individuals and families
much instability and uncertainty. We have made significant progress on our journey
10 Offering tastier and
to sustainable packaging too. This included the
healthier choices
investment of USD 30 million (CHF 26.4 million) in
Nestlé responded immediately and with clear 16 Inspiring people to
the Closed Loop Leadership Fund to lead the shift
priorities, activating and implementing measures lead healthier lives
from virgin plastics to food-grade recycled plastics
to keep our people safe, and ensuring the supply of
in the US. 24 Building, applying and
essential foods and beverages to consumers.
sharing nutrition knowledge
In 2020, we reaffirmed our support for the UN Global
We also provided care for our communities, as
Compact and were again named a LEAD company 27 For our communities
well as financial and in-kind support to business
in recognition of our ongoing determination to help 28 Enhancing rural development
partners. For example, we joined forces with the
achieve the UN Sustainable Development Goals and livelihoods
International Federation of the Red Cross and Red
(SDGs). We are defining new ambitions that will
Crescent Societies to provide urgently needed 34 Respecting and
push us to go further and faster, drive progress on
help for emergency services and caregivers and to promoting human rights
social issues and support a healthy food system.
strengthen healthcare systems. Our Always Open 39 Promoting decent
for You platform supported the food service industry We have set new commitments to achieve 100% employment and diversity
by extending credit terms, suspending rental fees reusable or recyclable packaging by 2025 and to
on coffee machines and offering free products when achieve net zero greenhouse gas emissions by 43 For the planet
those businesses are able to reopen. 2050, supported by our Net Zero Roadmap with 44 Caring for water
tangible, time-bound targets to reduce emissions,
It is in times as challenging as these that we can 49 Acting on climate change
within and beyond our operations. Our actions
truly demonstrate how business can be a force for 52 Safeguarding the environment
include working with 500 000 farmers and 150
good. This is what Creating Shared Value (CSV) has
000 suppliers to support them in implementing
always been about, focusing energy and resources
regenerative agricultural practices, planting 57 Independent assurance
where we can make the greatest positive impact on
hundreds of millions of trees within the next 10 years statement
people and the planet.
and completing the company’s transition to 100%
Last year, the time frame for many of our public renewable electricity by 2025.
U. Mark Schneider Paul Bulcke Further detail about our report
commitments came to an end. We have made
Chief Executive Officer Chairman This report provides a detailed overview of scope, strategy and governance,
progress that everyone at Nestlé can be proud of,
how Nestlé is making a difference across our KPIs and materiality, as well as
having fulfilled the majority of our commitments.
three impact areas – individuals and families, our GRI and UNGPRF indices can
We are intensifying our efforts to close the small
communities and the planet. We know that amazing be found in the Creating Shared
gaps on the few that remain.
things should and can happen when we Value and Sustainability Report
all work together. This belief is at the heart of CSV 2020 Appendix
and will drive our business in 2021 and beyond.
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 3
Our journey
A timeline of our achievements over the years:
from the birth of Nestlé to the evolution of
Creating Shared Value (CSV), and beyond.
2010 2016 2020
1867 2002 The Nestlé Cocoa Plan and Nescafé Plan
are both launched. They are designed
The 2030 CSV ambitions
are refined and targets set
The ambitious Nestlé
Net Zero Roadmap is
Nestlé is founded by Partnership with the to develop sustainable cocoa and for the next five years launched, following
Henri Nestlé, who International Federation coffee supply chains, improve social the announcement of
develops farine lactée to of Red Cross and Red conditions in farming communities Nestlé’s 2050 climate
tackle high infant mortality Crescent Societies signed and ensure profitability commitment in 2019
to collaborate on HIV
prevention, WASH in
cocoa supply chains, and 2018
disaster relief, including joint Nestlé for Healthier
COVID-19 relief in 2020 Kids is launched
globally, reaching
1997 29 million children
Nestlé sets in the first year of
its Nutrition, launch to improve
Health and how they eat, drink
Wellness and live
vision
2011 2019
Nestlé is the first Nestlé inaugurates the
food company to Institute of Packaging
1982 2006
work with the Fair Sciences to advance
Labor Association the development of
Nestlé is one of the first companies The CSV approach is formally to tackle child labor safe, functional and
to develop policies based on the adopted, followed by the first risk in the cocoa sustainable packaging
WHO International Code of Marketing CSV Forum in 2009, beginning supply chain
of Breast‑milk Substitutes. In 2011,
Nestlé becomes the first breast‑milk
regular engagement between
stakeholders and our leadership
2017
Nestlé needs YOUth, which
substitute company to be included in
aimed to support 10 million
the FTSE4Good Index
young people in their search for
All pictures taken before the COVID-19 pandemic employment, is launched globally
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 4
Individuals and families
Nestlé for Fighting
Healthier micronutrient
Kids deficiencies
80 million children 196 billion+
have received nutrition education
and over 4000 nutritious foods servings
and beverages have been of micronutrient fortified foods
launched since 2016 with and beverages provided in emerging
support from our flagship Nestlé countries with high vulnerability of
for Healthier Kids initiative. deficiencies during 2020.
i Read more on page 20 Read more on page 15
i
Supporting Engaging
informed children
choices in cooking
98.3% of product 350 million
packaging based on net sales parents in over 35 markets
now displays the Nestlé Nutritional reached through the 2020
Compass, providing at-a-glance #cooktogether campaign.
information to help consumers
i Read more on page 20
make informed choices for a
healthy, balanced diet.
i Read more on page 17
All pictures taken before the COVID-19 pandemic
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 5
Communities
Cutting Growing
deforestation livelihoods
90% of our main forest-risk commodities 235 million
that we buy (palm oil, pulp and paper, soya, quality plantlets distributed to
meat and sugar) have been assessed as coffee growers to support higher
deforestation-free, as of December 2020. yields and incomes, exceeding
Over the past ten years, we have been using our original target by 15 million
a combination of tools, including supply chain by 2020.
mapping, risk assessments, certification, Read more on page 32
i
satellite monitoring and on-the-ground
verification, to ensure they are not linked
to deforestation.
i Read more on page 31
Tackling Nestlé
child labor needs
127 550 children
protected against the risk of
child labor since 2012 through
YOUth
support such as income-
generating activities, bridging 10 million young
classes, school kits, school people have been supported
renovation and building. by the Global Alliance for YOUth
that Nestlé founded in 2014.
i Read more on page 33 We also expanded Nestlé needs
YOUth initiative across our
operations to help empower
millions more young people to
begin careers or access training.
i Read more on page 40
All pictures taken before the COVID-19 pandemic
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 6
Planet
Caring
for
water
1.4 million
beneficiaries in the areas
surrounding our facilities
have increased access
to WASH projects.
We have worked with
Closing
local stakeholders and
organizations to achieve
this over the course of
88% of our packaging by weight is
reusable or recyclable. 15 markets now have
our commitment.
the loop
stakeholder alliances dedicated to addressing
i Read more on page 48 waste management and marine littering.
i Read more on page 53
Providing Achieving
climate zero waste
leadership 95% of our factories have now
reached zero waste for disposal
37%
status. All our factories have waste
reduction in greenhouse gas diversion processes in place and we
emissions per tonne of product since will continue to work toward achieving
2010. By launching our Net Zero Roadmap, 100% zero waste across our business.
we are aiming to halve emissions by 2030 i Read more on page 54
and be net zero by 2050.
i Read more on page 50
All pictures taken before the COVID-19 pandemic
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 7
What’s next?
Nestlé has worked to be a force To achieve this will require radical
action across our whole value chain,
for good since its foundation from switching to renewable energy
and the conclusion of our 2020 in our factories and offices, to looking
commitments is simply another for new innovative packaging solutions
step in this ongoing journey. for our products, to working with our
suppliers and farmers on future-
Now, we’re going further. proofing our food system.
It’s time
We’re doing this because we are the In fact, the majority of our impact comes
Good food, Good life company. We exist from agriculture – the way we grow and
to unlock the power of food to enhance produce the ingredients that make up our
for us to do
the quality of life for everyone, today products. This is why we’re focusing on
and for generations to come. And the more regenerative agricultural practices.
future of ‘Good food’ is at stake – from Our new commitments will build on
the ‘goodness’ of its nutritional content
even more.
our Net Zero Roadmap and our work in
to its reliable accessibility and regenerative agriculture. They will focus
affordability for all. on how we will work together to create
Now, as the global conversation a resilient future for our planet, and the
increasingly turns to stopping rising resources and communities upon which
temperatures and reversing years of we depend to feed the world.
biodiversity destruction, the way we
fulfill our purpose has never been more
important. In 2021, we will see a host of
global events, from the United Nations
Food Systems Summit to the Convention
on Biodiversity and the UNFCCC COP26.
It is also the year in which Nestlé will go
further and publish fresh commitments.
At this pivotal moment, Nestlé has not
only made a commitment to reach net
zero emissions across the whole of
our operations by 2050, we have
backed it up with the publication of
our detailed roadmap.
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 8
Our 2020 commitments and progress Status of our commitments
Achieved Extended or partially 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 Enhancing rural Respecting and Promoting decent Caring for water Acting on Safeguarding
healthier choices lead healthier lives and applying development and promoting employment climate change the environment
nutrition 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 water Provide climate Improve the
and beverages that are nutrition information on nutrition knowledge from economics among the human rights impacts needs YOUth initiative 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 transparency
mothers-to-be, new and online through to healthy aging activities operations our packaging
Improve food Enhance gender and proactive, long-term
mothers, infants and balance in our workforce
Offer guidance on Build biomedical availability and dietary Improve workers’ Advocate for effective engagement in Reduce food loss and
children and empower women
portions for our products science leading to diversity among the livelihoods and protect water policies and climate policy waste
Further decrease health-promoting farmers who supply us children in our agricultural across the entire value stewardship
Leverage our marketing chain Provide meaningful
sugars, sodium and products, personalized supply chain
efforts to promote healthy Implement responsible Engage with suppliers, and accurate
saturated fat nutrition and digital Advocate for healthy
cooking, eating and sourcing in our supply Enhance a culture of especially those in environmental
solutions workplaces and healthier
Increase vegetables, lifestyles chain and promote animal integrity across the agriculture information and dialogue
employees
fiber-rich grains, pulses, welfare organization
Empower parents, Raise awareness on Preserve natural
nuts and seeds in our
caregivers and teachers to Continuously improve Provide effective water conservation and capital
foods and beverages
foster healthy behaviors in our green coffee supply grievance mechanisms improve access to water
Simplify our ingredient children chain to employees and and sanitation across our
lists and remove artificial stakeholders value chain
Support breastfeeding Roll out the Nestlé
colors
and protect it by Cocoa Plan with cocoa
Address under- continuing to implement farmers
nutrition through an industry-leading policy
micronutrient fortification to market breast-milk
substitutes responsibly
Inspire people to
choose water to lead
healthier lives
Partner for
promoting healthy
food environments
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 9
For
individuals
and families
2030 ambition
To help 50 million children lead healthier
lives each year
In this section
10
Offering tastier and healthier choices
16 Inspiring people to lead healthier lives
24 Building, sharing and applying
nutrition knowledge
Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 10
Offering tastier and healthier choices
Our commitments to offering Why it matters We have also renovated some of our most iconic
tastier and healthier choices products to reduce sugars, sodium and saturated
Food and good nutrition are fundamental to our
11
Launch more foods and fat, and have been adding positive nutrients
health. What we eat also brings us well-being and
beverages that are nutritious, and micronutrients, together with whole grains,
enjoyment; and it is part of our cultural identity.
especially for mothers-to-be, vegetables, nuts and seeds.
new mothers, and infants In recent years, there has been an increasing
We work hard to help many of the world’s most
and children demand for food that is healthier for people and
vulnerable people by improving the affordability
the planet.
12
Further decrease sugars, of nutrient-dense products. We have been further
sodium and saturated fat This shift in thinking has occurred at a time when expanding the reach of our micronutrient fortified
our populations are growing and many people favorites and launching new products such as
13 Increase vegetables, fiber-rich globally suffer from malnutrition. This is due either fortified porridge in Southeast Africa. In addition,
grains, pulses, nuts and seeds to not getting enough food or eating too much we have partnered with like-minded institutions
in our foods and beverages food with limited nutrients. In 2020, the COVID-19 to scale up research and drive awareness of
pandemic reinforced just how important it is for micronutrient deficiencies.
14
Simplify our ingredient lists and
remove artificial colors people to have access to healthy, great tasting
15
Address under-nutrition through
and affordable food. Looking ahead
micronutrient fortification Nestlé is passionate about making better nutrition We will keep innovating to create more accessible,
accessible while inspiring people to explore and affordable and nutritious products that are good
enjoy food that supports their health. for people and for our planet. This is how we will
live up to our purpose: unlocking the power of food
At the same time, we are helping to reshape
to enhance quality of life for everyone, today and
food systems so that they also contribute to
for generations to come.
regenerating the environment that provides our
raw materials.
What we achieved
Unlocking the power of food is central to all that we
do at Nestlé. By setting ambitious commitments,
we have been able to deliver real change and
innovation in food and nutrition.
As part of this work, we have launched distinctive
food concepts that are both healthier and more
sustainable, including Sensational Vuna, a vegan
tuna alternative, and a plant-based Nesquik drink.
Our work on offering tastier and
healthier choices contributes to the
following SDGs:
ow we map our material issues
H
to the UN SDGsCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 11
Launching more Our action and achievements in 2020
Addressing the multiple nutritional needs
Overall achievements
Since the start of our commitments, we have Offering innovative alternatives with
nutritious products
of children launched over 4000 nutritious products that help plant-based beverages
In 2020, we were able to continue addressing give children and families better choices. We have
multiple aspects of child nutrition thanks to our made it easier for parents to find good food kids
broad range of brands. We continued to reduce love, as many of the products we have launched
excess sugar, salt and fats across our portfolio, as under our commitment are fortified with essential
Our commitment well as add in key nutrients such as fibers, proteins, micronutrients and have less added sugar or salt.
Launch more foods and beverages that are vitamins and minerals. We have also offered more plant-based products
and expanded our range of organic choices with
nutritious, especially for mothers-to-be, We also addressed other important aspects of
natural ingredients.
child health, such as food allergies. In August,
new mothers, infants and children we announced the acquisition of Aimmune These have included new options from favorite
Achieved Therapeutics, Inc., a biopharmaceutical company brands like Nesquik, Gerber and Cheerios.
that develops treatments for potentially life-
Throughout, our efforts have been informed by
threatening food allergies. Aimmune’s recently
Our objective research from our Nestlé Feeding Infants and
launched Palforzia is the only peanut allergy drug
Toddlers Study (FITS) and our Kids Nutrition and
By 2020: In both developed and developing to be approved by the US Food and Drug
Health Study (KNHS). In many cases, these guided
countries, design and launch foods and beverages Administration (FDA) for use by children.
our reformulation efforts so they met local
that address the daily nutritional needs and key
Supporting affordable, accessible nutrition nutritional needs. We are proud of achieving
nutritional gaps of infants, children up to age 12,
In 2020, we launched our Nestlé Cerevita Instant our 2020 commitment and will use the valuable
new mothers and mothers-to-be
Sour Porridge, an affordable, nutritious solution for learnings we have gained to lay strong foundations
Achieved
Southeast African consumers. for our future work.
Made with whole grains and cereals, it is fortified
with key vitamins, fiber and protein to help tackle In 2020, we continued to expand our dairy
New nutritious products for kids and families
local nutritional challenges. We leveraged our alternatives range with the launch of a
science and technology capabilities to develop a 2017 1040 plant-based, ready-to-drink version of
porridge that is adapted to local taste preferences 2018 1300 Nesquik chocolate drink in Europe.
and nutritional requirements while minimizing 2019 1398 Made from 100% natural ingredients, the
production costs to ensure affordability. 2020 1210 new recipe features a combination of oats,
peas and sustainably sourced cocoa. As a
result, this kids’ favorite is a good source of
Looking ahead plant-based protein.
It can be difficult to find food and beverage options It also uses less sugar than milk-based
that support healthy development and that children Nesquik, while still offering the familiar
love. We will continue to support parents by Nesquik taste in a naturally lactose-free
offering new and innovative products that are product. The new recipe has even been
tasty and address key nutritional needs in infants, certified by The Vegan Society.
children and new mothers.
Read more about this story and others onlineCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 12
Reducing sugars,
Adding healthier fat to old favorites:
Our action and achievements in 2020 Overall achievements McKay Museo
Reformulating products to address We have removed the equivalent of 60 000 tonnes
sodium and
nutritional challenges of sugar since 2017 – over 30% more than the
Many people around the world are consuming amount removed between 2014 and 2016. We have
too much sugar, sodium and saturated fat. We also achieved almost 10 000 tonnes of salt reduction
saturated fat
are working on reducing these ingredients in in foods and beverages since 2017. That is around
our products without compromising on taste. 3.5 times more than the amount removed between
2013 and 2016. As well as these achievements, we
Reducing added sugars
are proud to have met the 10% reduction for
In our efforts to reduce added sugar, we have
saturated fat set in 2014. Taken together, this
Our commitment focused on some of our most popular brands,
represents an important increase in our offering
including Nesquik and Milo. We have achieved an
Further decrease sugars, sodium and overall reduction of 4.5% toward our ambitious
of tasty products with improved nutrition.
saturated fat 5% goal. This has been achieved through Looking ahead
Partially achieved investment in research and development (R&D)
to develop new technologies, and the introduction We have a gap of 0.5% to meet our commitment to
of new reduced-sugar and no-added-sugar reduce added sugars by 5% by the end of 2020, as
Our objectives products from confectionery brands including our reformulation work slowed down due to
KitKat and Les Recettes de l’Atelier. COVID-19. However, our efforts to reduce sugar
By 2020: Reduce the sugars we add in our foods
continue. For example, we developed a new
and beverages by 5% to support individuals and Cutting sodium patented technology that significantly reduces
families in meeting global recommendations* We have achieved a reduction in sodium added Mckay is a pioneer brand in the biscuits
Extended
sugar while enriching products with healthy fibers.
to our products across some of our most iconic category, with over 125 years of history and
This new technology was introduced in Milo
brands. For example, in 2020, we implemented tradition in the Chilean market. In 2020, we
products in Southeast Asia in 2020, and will be
By 2020: Reduce the sodium we add in our a new recipe for Maggi Tablet Light bouillon reformulated our popular McKay Museo
further rolled out in 2021.
products by 10% to support individuals and cubes sold in Côte d’Ivoire, with a 15% reduction biscuits for children. While the previous
families in meeting global recommendations* in sodium. We will continue to reduce sodium at a pace ingredient list was simple, it contained
Extended that supports consumer preferences. We will ingredients that we are looking to reduce,
Although our achievement is below our 10% target, also continue to use unsaturated oils rich in including sugars and saturated fat.
our progress against a large portfolio of globally essential fatty acids and replace saturated fats
By 2020: Complete the 10% commitment taken
popular products represents a meaningful After reformulating the product, the
in 2014, to reduce saturated fat by 10% in all whenever possible.
improvement in reducing sodium intake in biscuits now contain natural ingredients
relevant products that do not meet the Nestlé
people’s diets. We will continue to work toward We remain committed to continuously improving such as fruit juice and date paste for
Nutritional Foundation (NF) criteria with respect
our commitment to help individuals and families the nutritional value of our products and setting sweetening. In addition, palm fat has been
to saturated fat*
meet global recommendations. strong nutritional targets for our innovations. In this replaced with sunflower seed paste. These
Achieved
context, we are exploring new ways to add healthier changes mean the biscuits are free of
Reducing saturated fat ingredients and enhance the overall environmental nutrient warning labels.
We have met our saturated fat objective. In the sustainability of our products.
course of this work, we have reduced the levels of Read more stories online
saturated fat in many products, including in brands
such as Maggi. Another key achievement was
replacing palm oil with a more nutritious, locally
grown, high-oleic sunflower oil in our popular
Asian noodles, which reduced saturated fat by
around 70%.
*These results apply to products within the scope of our
commitment, not to our global product range, as many
of our products already meet recommended levelsCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 13
Adding vegetables, Our action and achievements in 2020 Helping families consume more vegetables In Germany, our Maggi brand has piloted a new
Every second, our Maggi brand is used to prepare soup range called Krumm Glücklich (‘Crooked but
Many people all over the world do not have
over 21 000 food portions globally, while every Happy’), made from vegetables that were destined
fibers and whole
enough vegetables, pulses, nuts, fibers and whole
minute, consumers add more than 250 tonnes of to become food waste. The soup offers a simple
grains in their diets. We are working to increase the
fresh ingredients to their Maggi meals. To way to help people consume more of their daily
quantity of these elements in great tasting products
grains
encourage people to add vegetables to the dishes recommended intake of vegetables while helping
that are easily accessible.
they prepare using these products, we provide tools tackle food waste at the same time. If the pilot
We achieved both of our objectives in 2019 but such as online recipes and nutritional advice. An proves popular, the soup will be launched
still continued to go further during 2020. example of this is our MyMenu IQ guide, which commercially in early 2021.
helps people to balance their meals.
Our commitment
Promoting whole grains Overall achievements
Studies show that people who eat 70 g of whole In addition, we have added more vegetable and
Through product reformulations and new
Increase vegetables, fiber-rich grains, grains a day lower their risk of cardiovascular fiber-rich grain content to many of our Maggi
launches, we are providing millions more servings
products themselves. These reformulations are
pulses, nuts and seeds in our foods disease mortality by 23% and reduce their risk
of cancer mortality by 20%. That is why the particularly helping families with children to of healthy ingredients such as vegetables, pulses,
and beverages majority of our cereals now feature whole grain increase their vegetable intake. brans and whole grains. Following more than
10 years of reformulation, whole grains are now
Achieved as the main ingredient.
Bringing more plant-based products to market the main ingredient in over 88% of our breakfast
To promote the value of whole grains in healthy To meet the demand for products that are better for cereal recipes.
diets, we are a proud supporter of the Whole Grain people and the planet, we have launched several
Our objectives plant-based options this year, such as Garden
Initiative. This was launched to increase global
By 2020: Add to our products at least 750 million whole grain consumption and is helping support Gourmet’s Sensational Burger in Europe, plant- Looking ahead
portions of vegetables, 300 million portions* of the 2017 Vienna Whole Grain Declaration. based Milo in Australia and Sensational Vuna, our Achieving our commitments in this area is only
nutrient-rich grains, pulses and bran, and more vegan tuna alternative in Switzerland. the start. We will draw on our experiences so far
nuts and seeds to redouble our efforts and launch many more
Achieved in 2019 nutritious products in the coming years.
By 2020: In addition to whole grain already being
the main ingredient in our ready-to-eat breakfast
cereals for children and teenagers, all our Nestlé- Promoting International Whole Grain Day
branded cereals that carry Green Banners will be a
source of fiber** and made with whole grain*** Whole grains are key for a healthy diet, but many • Consistency in dietary guidelines with an
Achieved in 2019 people do not consume enough of them. We are emphasis on whole grains.
tackling this by making them a core ingredient in • Clear front-of-pack labels that recognize the
many of our cereals and by supporting visible important contribution of whole grains to
initiatives that promote whole grains. In 2020, we healthy diets.
took part in International Whole Grain Day with a
• Education and marketing campaigns on the
month-long social media campaign aimed at
benefits of whole grains.
inspiring and educating more people on how to
increase their whole grain intake. In addition, we promoted the International
Whole Grain Day webinar, featuring the
We also reaffirmed our commitment to increasing
Whole Grain Initiative, the Food and Agriculture
whole grains in our foods and voiced our support
Organization and a host of global leaders.
for international governments and policymakers
to ensure: Read more about this story online
*A portion of fiber-rich grains is the amount of grain
product (variable, depending on the type of grain, type
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 servingCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 14
Simplifying Our action and achievements in 2020 The KitKat Chocolatory Cacao Fruit Chocolate was
launched in 2019 through our KitKat Chocolatory in
Food plays a big part in how people take care of Coloring Smarties with
Japan, followed by Australia and Brazil in 2020. In
ingredient lists
themselves and their families. Consumers are natural ingredients
2021, we will significantly expand the range of
increasingly demanding that the products they buy
products using this manufacturing technique.
have recognizable ingredients with more natural
formulations they understand and trust. We have also used simple formulations with
fewer ingredients in our Les Recettes de l’Atelier
Our commitment Removing unfamiliar ingredients
confectionery brand. For sale in France, Spain,
In 2020, we continued to improve the formulation
Simplify our ingredient lists and remove of our products by removing unfamiliar ingredients
Italy, the UK, the Netherlands and the Czech
Republic, the brand’s products are made with 100%
artificial colors in several iconic brands, including Nesquik, Maggi,
sustainably sourced cocoa and do not contain
La Lechera, Nescafé and Starbucks.
Achieved any artificial colors, flavors or preservatives.
For our reformulation of Nesquik, we replaced
The changes we have made to both KitKat and Les
maltodextrin with oat flour, added 65% more cocoa
Recettes de l’Atelier are also helping to improve
Our objectives and cut the number of ingredients from 12 to 8.
incomes for cocoa farmers globally by using cocoa
By 2020: Continue removing unfamiliar ingredients exclusively from the Nestlé Cocoa Plan.
Finding alternatives for artificial colors
Achieved
Only 1% by weight of all colorants used in our foods
For our Smarties confectionery products,
By 2020: Remove all artificial colors* from
and beverages is defined as artificial. Replacing all Overall achievements we developed new recipes free of artificial
artificial coloring while still meeting technical and
our products** Over the course of our commitment, we have colors globally, with the final removals
regulatory requirements is a complex undertaking;
Achieved
however, we are determined to close the small reworked many of our most iconic brands to have having taken place in Australia, Canada
remaining gap. We will continue to innovate with simpler ingredient lists. As a result, it is now easier and South Africa.
alternatives containing more natural elements that for consumers to understand what goes into our
products and make choices that align with their The artificial colors have been replaced with
our consumers enjoy. natural ingredients from foods that provide
needs and their values.
Making chocolate simpler color properties, such as sweet potato
At Nestlé, we are always looking for new ways to spirulina, turmeric and beetroot.
simplify ingredient lists in line with evolving consumer Looking ahead
In addition, our Smarties brand is now
expectations. As part of this, we explored whether We will soon finalize our work to remove the small
using recyclable paper packaging for its
chocolate, usually made of multiple ingredients, amount of artificial colors still used in our products
confectionery products worldwide.
could be made from the cocoa fruit alone. and to meet our commitment. We will continue to
reformulate and innovate to create products with Read more about this story and others online
The result is our KitKat Chocolatory Cacao Fruit simple, understandable and natural ingredients.
Chocolate, which is the first chocolate to use the
beans and pulp of the cocoa tree’s fruit as the only
ingredients. The pulp naturally sweetens the
chocolate, eliminating the need for refined sugars
and cutting down on production waste.
*There is no internationally agreed legal definition of
what is an ‘artificial’ color. Nestlé’s position regarding
these substances is based on our factual ingredient
and processing knowledge
**This objective does not currently apply to our pet
food productsCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 15
Micronutrient Our action and achievements in 2020 systems to accelerate transformational change,
helping to both protect biodiversity and improve the
In many parts of the world, getting vital nutrients Tackling iron deficiency in Africa
livelihoods of farmers in our supply chains.
fortification
from food alone is simply not possible. Nestlé is
passionate about addressing this need by fortifying In addition, we remain committed to expanding our
commonly consumed foods and beverages with large-scale voluntary efforts to make affordable and
essential micronutrients. fortified products more accessible.
Our commitment Providing fortified food to millions
In 2020, we delivered 196.6 billion* fortified Overall achievements
Address under-nutrition through servings of foods and beverages. Of our popularly Our iconic and popular brands such as Maggi, Bear
micronutrient fortification positioned products for lower-income consumers, Brand or Cerevita give us a powerful platform to
Achieved
81% were fortified with at least one of the Big 4 provide accessible fortified products for vulnerable
micronutrients. These are iron, iodine, vitamin A populations – which is particularly important during
and zinc. Their benefits include helping prevent the COVID-19 pandemic. Research in 2018 showed
poor health and productivity loss, supporting brain that we had reached over 100 million households
Our objectives
development and maintaining normal function of with children across eight countries with high
By 2020: Reach millions of children and families
the immune system. vulnerability of micronutrient deficiencies.
with fortified foods and beverages
Achieved Reducing micronutrient deficiencies By making small changes to our popular products,
We work with partners and governments across we can positively impact diets. India’s 2015-16
By 2020: Initiate or support collective action to the world to help promote awareness around National Family Health Survey showed, for example, Iron deficiency is a public health problem that
reduce micronutrient deficiencies in 10 countries micronutrient deficiency. We also invest in that 53% of females and more than 22% of males impacts millions of women and children
Achieved improving access to fortified foods, supporting between the ages of 15 and 45 suffered from across Central and West Africa. To promote
research and hosting awareness campaigns. anemia, frequently caused by iron deficiency, with awareness and drive behavior change, we
By 2020: Continue to develop the supply chain for We have collaborated with stakeholders an almost equal split across rural and urban India. launched the Live Strong with Iron campaign.
biofortified crops and expand our fortified portfolio in 10 countries in recent years: Burkina Faso, In line with our Micronutrient Fortification Policy,
The campaign will run for three years and
Achieved Cameroon, Côte d’Ivoire, Egypt, Ghana, Myanmar, our Maggi 2-Minute Masala Noodles were fortified
feature our own employees as ambassadors
Nigeria, the Philippines, Senegal and Sri Lanka. with 15% of the daily iron requirements in 2017.
for the consumption of iron-rich foods. We
As our product is core to about 70% of urban diets
Examples include our support for the Egyptian are also collaborating closely with civil
in India – amounting to more than 2.5 billion
Government’s 2030 vision to combat iron deficiency society, stakeholders, including media, and
servings eaten each year – this change had a huge
in mothers-to-be and children under 3 years of age. government on the issue.
reach, playing a meaningful role in combating one
of India’s leading micronutrient deficiencies. A 2020 consumer survey in Ghana found
Furthermore, in partnership with the University of
Ibadan, we participated in a study into kids’ nutrition high awareness of the importance of iron
and health in Nigeria. Looking ahead and the sources of common iron-rich foods
(78%) among respondents, but fewer than
Reframing our biofortification approach We will continue to innovate around affordable and half (49%) actually consumed these foods
In recent years, we have worked closely with accessible nutrition, and to further enlarge our regularly. Many consumers did not realize
stakeholders in Nigeria and Zimbabwe to develop fortified foods and beverages offering. how vulnerable they were to iron deficiency
supply chains for biofortified maize. We have used We also want to inspire the next generation to anemia, highlighting the importance of the
this maize in some of our porridge recipes in Nigeria. innovate in this space. To this end, we have campaign’s focus on promoting awareness.
We believe in the potential of biofortification and will developed an initiative to support young students in Read more about this story and others online
continue engaging with stakeholders to inform Africa on projects related to affordable nutrition.
them of the benefits of these crops. Going forward,
we will focus on broader food and agricultural
*We have made adjustments to the scope of reporting
to cover a larger number of countries in 2020 compared
with 2019. Our focus is now on all emerging countries
as per the UN definitionCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 16
Inspiring people to lead healthier lives
Our commitments to inspiring Why it matters Throughout the COVID-19 pandemic, we have
people to lead healthier lives remained committed to encouraging healthier
Encouraging individuals and families to lead
17
Apply and explain nutrition choices. Home cooking, in particular, has
healthier lives is extremely important. We
information on packs, at-point- become a more important feature of family life.
contribute to this by offering clear nutrition
of-sale and online By launching campaigns to get children involved
information and intuitive portion guidance to
in meal preparation, we help encourage healthy
18
Offer guidance on portions for ensure consumers have the facts they need to
habits that can last a lifetime.
our products make good food choices.
We actively promote the value of water for healthy
19
Leverage our marketing efforts From supporting breastfeeding to encouraging
hydration, as demonstrated by our Be Heroes at
to promote healthy cooking, good nutrition, healthy hydration and regular
Home campaign, launched in 2020 across eight
eating and lifestyles exercise, we promote healthier lifestyles from birth.
countries. Meanwhile, more than 8000 chefs
We know that children who are taught to eat well
worldwide have been supported with education
20
Empower parents, caregivers and exercise regularly are more likely to grow up
services to better understand what the out-
and teachers to foster healthy to be fit, healthy adults.
of-home food industry will look like in a post-
behaviors in children
pandemic world.
21
Support breastfeeding and What we achieved
protect it by continuing to
implement an industry-leading
One of the most important ways we encourage Looking ahead
balanced diets is by providing clear information
policy to market breast-milk We are proud to have inspired many people to lead
on the nutritional value of our products, on packs
substitutes responsibly healthier lives. Now we must build on our work to
and beyond.
encourage informed food choices, going beyond
22
Inspire people to choose water simply ensuring consumers understand nutritional
Fifteen years ago, we began adding nutritional
to lead healthier lives values. This means highlighting the impact our
guidance and facts to the back of our packaging
23
Partner for promoting healthy through our Nestlé Nutritional Compass. Today, products have on the planet and the communities
food environments it is on 98.3% of our products worldwide, based where they are produced.
on net sales figures.
We will continue to add increasingly transparent
Since 2011, we have been an industry leader in on-pack nutrition communication that is both
promoting breastfeeding and marketing breast- intuitive and meaningful. This will help people
milk substitutes responsibly. We were the first make informed decisions related to our products
company to receive FTSE4Good recognition for and the portions they need to consume as part
our efforts. To ensure we comply with our policy of a healthy and balanced diet.
and procedures for the implementation of the
World Health Organization’s International Code of
Marketing of Breast-milk Substitutes (WHO Code),
Our work on inspiring people to lead we audit company-wide activities and report
healthier lives contributes to the annually on our findings.
following SDGs:
ow we map our material issues
H
to the UN SDGsCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 17
Providing Our action and achievements in 2020
Expanding nutrition information
Overall achievements
Since 2005, when we first implemented the Nestlé Scoring meals with MyMenu IQ
nutritional
People want to know more about what they eat and Nutritional Compass – our nutritional information
drink and the impact on their health, and this means tool with tips on how to include our products in a
understanding the nutritional composition of their balanced and healthy diet – we have empowered
information
favorite products. We provide transparent nutrition millions of consumers to make educated decisions
facts across as many platforms as possible, about Nestlé products. By 2020, we had applied it to
supporting consumers to make the right food 98.3% of our packaging.
choices for themselves and their families.
In 2014, we also began introducing Guideline Daily
Our commitment Every year, we make more nutrition information Amount (GDA) information. This is now present
available to consumers and, as a result, successfully on 82.9% of our products, offering consumers
Apply and explain nutrition information completed our commitment in 2020. Wherever transparent information on our nutritional values.
on packs, at point-of-sale and online relevant, we support and implement voluntary
Percentages for these two guidance systems are
Achieved front-of-pack nutrition labeling schemes, helping
measured against net sales. As such, any
consumers to make informed and healthier choices
percentage decreases year on year are not reflective
easily at point-of-sale.
of decreases in the number of products they are
Our objective In June 2019, we announced the front-of-pack available on.
By 2020: Continue providing detailed product nutrition labeling scheme Nutri-Score as our
nutrition facts with daily value percentages, preferred system in Continental Europe. Since then,
ingredients and allergens, and add special diet we have been implementing it at scale, wherever it
Looking ahead
information, nutrition labeling explanations and is permitted. Products displaying this intuitive We are expanding our on-pack communication,
Cooking is an important part of life for many
healthy eating tips on all our relevant packs, as well system are now on shelves in eight countries: offering information beyond nutrition alone. This will
of our consumers. To help provide simple
as on our websites and e-retailer sites, to better Austria, Belgium, France, Germany, Luxembourg, include sharing compelling stories about how our
nutritional advice, we have launched a new
enable informed choices Portugal, Spain and Switzerland. products are not only beneficial to the health of
meal-scoring service on our recipe websites
Achieved individuals and families, but also to the communities
Nutri-Score offers a holistic assessment of foods in Mexico and Central and West Africa.
where they are developed and to the planet. Through
and beverages, giving each product a color-coded this information, we hope to better connect with MyMenu IQ is a scientifically validated
score from A–E based on nutritional value. For consumers on the topics that matter most to them. nutritional service that ranks the nutritional
Nestlé, it already appears on several brands, balance of meals on a scale of 0 to 100. This
including Garden Gourmet plant-based products, empowers individuals and families to
Nesquik chocolate-flavored milk, Nestlé Dessert choose recipes that support a healthier,
chocolate, Maggi culinary products, and breakfast more balanced diet.
cereals such as Nestlé Fitness and Chocapic.
By the end of 2020, MyMenu IQ had been
Our plan is to implement Nutri-Score labels on launched in 6 countries and 10 websites
around 7500 products by 2022. globally, with more to come in 2021.
Read more stories onlineCreating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 18
Offering portion Our action and achievements in 2020 Simplifying portion guidance through This guidance has been a key feature on our product
packaging design packaging since 2013 and we have worked hard to
How much people eat can be just as important as
Since the beginning of the commitment period, bring it to more products each year. In 2020, 64.2%
guidance
what they eat. That is why we have long been
we have gradually increased guidance on portions of our children’s and family products, based on net
committed to providing easy-to-understand portion
we provide through product form, pack design, sales, offered portion guidance on packs worldwide.
information on our products. Initially, our
serving device or dispenser. By doing so, we are
commitment focused on providing guidance on
making it easier for consumers to understand
children’s products. We then applied the lessons
recommendations at a glance. While we do not
Looking ahead
Our commitment learned in the development of portion advice for Historically, the portion guidance we have provided
currently use quantitative measurements to
Offer guidance on portions for teenagers and adults.
track this guidance, we will continue to identify on products for children, teenagers and families
refers to an ideal portion size. We are currently
our products Providing better portion guidance ways to bring our consumers even more intuitive
evaluating the impact of moving this guidance to a
In 2019, we began chairing the Industry Best portion information.
Achieved more realistic portion size that aligns more closely
Practice Guide Working Group in Australia, as part
with how much consumers actually eat.
of the Australian Government’s Healthy Food Overall achievements
Partnership (the Partnership). The working group is
Our objectives The Nestlé Portion Guidance initiative was
developing an Industry Best Practice Guide to
By 2020: Continue providing guidance on portions established to help consumers understand what
support and inspire the broader food industry to
globally on all children’s and family product packs appropriate portions of our products look like.
improve guidance on servings.
and add frequency of consumption indications on
relevant products Throughout 2020, the working group undertook an
Achieved analysis of current policies and data to better
understand the efficacy of potential strategies. Draft Providing pre-portioned superfood drinks with nesQino
By 2020: Extend our guidance on portions to our recommendations have been developed, with the
aim of launching a new strategy to guide serving With the launch of our new nesQino brand, we
consumer recipes, and relevant teenager and
recommendations in both the retail and out-of- are bringing personalized superfood drinks to
adult products
home sectors by the end of 2021. consumers in single-serve form.
Achieved
Offering more intuitive portion messaging People can choose from a range of ingredients,
By 2020: Gradually increase the proportion of In 2020, Nestlé Brazil updated the Nutrition, Health including fruits, vegetables, nuts, seeds, roots,
guidance on portions provided through product and Wellness section of its website to offer a more microalgae and probiotics, tailoring the product
form, pack design, serving device or dispenser to interactive user experience. New infographics and to their personal requirements.
make it even more intuitive than on-pack messaging reference articles share clear information on A specially designed cup blends everything
Achieved adequate portions for different product categories, together, while our smartphone app enables
while interactive calculators show consumers the people to choose whether they want to enjoy
nutritional impact of their food and portion choices. their drink hot or cold. Consumers can also
We have extended these tools beyond the corporate explore recipes and nutritional information to
website, with various brand websites and social identify the perfect, all-natural combination.
media platforms featuring them too. We have also Read more stories online
shared the content with external audiences, such as
healthcare professionals, to increase our reach.Creating Shared Value Individuals and families Communities Planet Creating Shared Value and Sustainability Report 2020 19
Marketing healthy Our action and achievements in 2020 Overall achievements We audit our Marketing to Children practices
annually. In 2020, the results once again showed
Developing marketing to promote We are committed to marketing products and
strong compliance, particularly across our television
choices
healthy lifestyles encouraging consumer choices responsibly and
advertising. We are also monitored by the voluntary
Offering nutritious foods and beverages is one way transparently. We are a member of the World
EU Pledge initiative, as well as by its partner the
to help people live healthier lives. We also need to Federation of Advertisers (WFA) and, in 2019,
European Advertising Standards Alliance, in six EU
inspire people to make better lifestyle choices. We became a founding member of the WFA Global
countries. Nestlé demonstrated 98.9% compliance
do this by supporting our consumers, especially Alliance for Responsible Media (GARM). The
with EU Pledge criteria and 98.6% with the stricter
Our commitment parents and caregivers, to select products and Alliance provides a forum for like-minded industry
Nestlé Marketing Communication to Children Policy.
Leverage our marketing efforts to promote activities that are better for them and their families. peers, media companies and digital platforms to
ensure safe online spaces for viewers and advertisers. Since 2019, we have implemented industry-
healthy cooking, eating and lifestyles We have continually increased the proportion of
In addition, it contributes to our wider strategy for leading practices in the monitoring of our policy,
our marketing spend that goes toward promoting
Achieved safe, transparent and accurate advertising. and commissioned yearly external audits with
healthier choices. By the end of 2020, we had
independent verifiers Ernst & Young (EY) for a
achieved close to a 106% increase of the share of We are helping to build GARM’s capabilities year on
selection of our markets. For example, in 2020,
expenditure on products that actively support year to reach a standardized approach to harmful
Our objective our Marketing to Children activities in Russia
healthy lifestyles since we began our commitment. content, with GARM creating a new working charter
By 2020: Double the outreach of our efforts to were audited, with the report publicly available
in 2020.
promote healthy cooking and eating and healthy Throughout 2020, several of our brands played an on our website.
lifestyles for individuals, families and their pets active role in encouraging families to stay healthy Alongside a dedication to building better online
Achieved during the COVID-19 pandemic. By sharing healthy spaces, we are committed to marketing our Looking ahead
recipes and simple tips online, our Maggi brand is products and services in a responsible and
championing the goodness of home cooking. transparent manner. While we achieved our We will continue working with organizations such
Meanwhile, Milo is engaging more children to keep objective in 2017 to only market choices to children as the WFA and the International Food and
active at home. that help them achieve a nutritious diet, this is an Beverage Alliance (IFBA) to improve responsible
action we remain dedicated to. industry marketing of products designed primarily
for children. Within Nestlé, we continually review
our own Marketing to Children practices and will
continue to do so, especially across our digital
platforms. We understand the sensitivity of this
Promoting home cooking with Maggi recipes topic and strive to lead the industry in marketing
to children responsibly.
Since the start of the COVID-19 pandemic,
We know that many consumers want to act in ways
cooking at home has become an even more
that lessen their impact on the planet. We will
important part of life for many families. To
develop our outreach efforts to encourage the
support this, our Maggi brand now offers simple,
consumption of foods with stronger environmental
nutritious online recipes that bring healthy Maggi
credentials, as well as greater nutritional benefits.
products together with fresh ingredients.
For example, by highlighting the value of a well-
Globally, our recipe websites usually receive balanced diet, with increased consumption of
approximately 30 million views every month. plant-based products, we can show consumers
Since the pandemic, however, these pages have how they can have a smaller environmental
seen a 34% increase in traffic, highlighting the footprint, contributing to efforts to safeguard
important role Maggi has played in encouraging the environment.
healthy meals at home.
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