Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé

Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value
and meeting our commitments

Progress Report 2019
Nestlé. Enhancing quality of life and
contributing to a healthier future.
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
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.
                                                                 packaging solutions.                                                                                       25	Enhancing rural
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
                                                                                                                                                                            55 Reporting and governance
                                                                                                                                                                            56 About this report
                                                                                                                  Paul Bulcke              U. Mark Schneider                57	Independent assurance
                                                                                                                  Chairman                 Chief Executive Officer
                                                                                                                                                                            58	Our key performance
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance               Creating Shared Value Progress Report 2019   03

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.
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value   Individuals and families   Communities                         Planet                  Reporting and governance                                                                                                        Creating Shared Value Progress Report 2019   04

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
                                                                                                                                                                    harnessed the perspectives of mainstream
                                                                    to bring both non-financial and financial risk
                                                                                                                                                                    investors, and engaged with key markets and
                                                                    identification together and to connect it more
                                                                                                                                                                    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
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

                                                                                                                                                                         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

                                                                                                                                                                         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
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value       Individuals and families     Communities    Planet    Reporting and governance                                                                                                    Creating Shared Value Progress Report 2019        05

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
 mothers-to-be, new             and online                    through to healthy aging                               activities                                                 operations                       Promote                our packaging
 mothers, and infants and                                                                      Improve food                                              Enhance gender                                     transparency and
 children                            Offer guidance on              Build biomedical      availability and dietary         Improve workers’         balance in our workforce         Advocate for           proactive, long-term             Reduce food loss
                                portions for our products     science leading to          diversity among the        livelihoods and 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             products, personalized                                 supply chain                   chain                                                                                    Provide meaningful
 saturated fat                  marketing efforts to          nutrition and digital            Implement                                                                             Engage with                                        and accurate
                                promote healthy cooking,      solutions                   responsible sourcing in         Enhance a culture of          Advocate for healthy    suppliers, especially                                   environmental
       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
 nuts and seeds in our                Empower parents,                                                                                                                               Raise awareness on                                      Preserve natural
 foods and beverages            caregivers and teachers                                       Continuously                Provide effective                                     water conservation and                                  capital
                                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
 remove artificial colors              Support                                                Roll out the Nestlé
                                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
                                     Inspire people to
                                choose water to lead
                                healthier lives
                                     Partner for
                                promoting healthy
                                food environments
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value   Individuals and families   Communities   Planet   Reporting and governance                                                              Creating Shared Value Progress Report 2019   06

                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).
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value   Individuals and families   Communities   Planet   Reporting and governance                                                                    Creating Shared Value Progress Report 2019   07

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
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                   Creating Shared Value Progress Report 2019   08

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.
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value    Individuals and families   Communities     Planet     Reporting and governance                                                                         Creating Shared Value Progress Report 2019   09

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
Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                                  Creating Shared Value Progress Report 2019   10

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,                   greater consumption of nutrient-rich foods.        100% of our cereals carrying the green banner
                                                                                                                                                                                             To satisfy the needs of health-
pulses and bran, and more nuts and seeds                         Through activities such as our participation in    are made with a minimum 8 g of whole grain
                                                                                                                                                                                             conscious consumers looking
                                                                 the global Whole Grain Initiative, we are          per serving, achieving our objective.
         Achieved                                                                                                                                                                            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 fiber
** 	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
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                 Creating Shared Value Progress Report 2019   11

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
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                    Creating Shared Value Progress Report 2019   12

Micronutrient                                                    Why it matters
                                                                 Around one-third of the world’s population
                                                                                                                   •	Increase micronutrient accessibility
                                                                                                                      through partnerships, new routes to market

                                                                                                                      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.
Creating Shared Value   Individuals and families   Communities   Planet   Reporting and governance                                                                          Creating Shared Value Progress Report 2019   13

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
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                   Creating Shared Value Progress Report 2019   14

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

                                                                                                                    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
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                  Creating Shared Value Progress Report 2019   15

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
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                   Creating Shared Value Progress Report 2019   16

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.
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                              Creating Shared Value Progress Report 2019   17

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
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                   Creating Shared Value Progress Report 2019   18

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.
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                               Creating Shared Value Progress Report 2019   19

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.
Creating Shared Value   Individuals and families   Communities     Planet   Reporting and governance                                                                  Creating Shared Value Progress Report 2019   20

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
Creating Shared Value   Individuals and families   Communities   Planet   Reporting and governance                                                                         Creating Shared Value Progress Report 2019   21

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.
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