Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
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Creating Shared Value and meeting our commitments Progress Report 2019 Nestlé. Enhancing quality of life and contributing to a healthier future.
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 02 A message from our Global Compact LEAD company in recognition of our ongoing commitment to achieving the Last year, we also committed to achieve zero net greenhouse gas emissions by 2050, 03 Creating Shared Value Chairman and CEO UN Sustainable Development Goals (SDGs). stepping up our climate change mitigation 05 Our 2020 commitments efforts and embracing the most ambitious and progress This report provides a detailed overview of aim of the Paris Agreement. Among other how Nestlé is making a difference across our 06 For individuals and families Nestlé. Enhancing quality of three impact areas – individuals and families, measures, we are expanding our range of plant-based food options that have a better 07 Offering tastier and life and contributing to a communities and the planet. environmental footprint and can contribute to healthier choices healthier future. In early 2019, we accelerated actions to a balanced diet. 13 Inspiring people to lead tackle plastic waste and make good on our Our work extends beyond the environment. healthier lives Creating Shared Value lies at the very heart of ambition to make 100% of our packaging We also announced a new gender-neutral how we do business at Nestlé. Our approach is recyclable or reusable by 2025. We more 21 Building, sharing and parental leave and support policy for our built on the conviction that business can be a recently announced an investment of up to applying nutrition employees, as part of our broader efforts to force for good, by simultaneously creating CHF 2 billion to boost the market for food- knowledge support diversity and inclusion. Our aim is to value for shareholders and for society at large. grade recycled plastics and to accelerate the support families and help provide children 24 For our communities development of innovative sustainable In 2019, we reaffirmed our support for the UN with the best start in life. 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 environment 55 Reporting and governance 56 About this report Paul Bulcke U. Mark Schneider 57 Independent assurance Chairman Chief Executive Officer statement 58 Our key performance indicators
Creating Shared Value 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.
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 Major complexity of our global supply chain present an increased risk of human rights abuses. Therefore, we work hard to ensure our standards and policies are upheld. To determine which global trends have the Importance to stakeholders biggest impact for Nestlé, we regularly Women’s empowerment Rural development and poverty alleviation Food and product safety conduct a thorough materiality analysis. Community relations Human rights Changing consumer demographics and trends The materiality process Business ethics Product packaging and plastic Significant Responsible marketing and influence Our comprehensive materiality analysis is Product quality Food and nutrition security carried out every two years. This helps us Resource efficiency, (food) waste and to identify the economic, social and the circular economy environmental issues that matter most Land management in the supply chain to our business and our stakeholders. Conducting a thorough analysis in this Animal welfare Product regulation and taxation way helps to identify issues to be covered Employee safety, health and wellness Geopolitical uncertainty in our reporting and to decide where to Decent employment and equal opportunities Responsible use of technology Moderate Data privacy and cyber security focus our internal resources. Moderate Significant Major Impact on Nestlé’s success For individuals and families For our communities For the planet Note: Natural disasters, identified as an issue relevant to Nestlé, fell under the negligible category and so has been omitted from our materiality matrix
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 responsibly Inspire people to choose water to lead healthier lives Partner for promoting healthy food environments
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).
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
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.
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
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 fortification and affordability strategies. lacks essential vitamins and minerals (Global Nutrition Report). This can lead to serious In 2019, we focused our activities in our Zone health issues, such as impaired growth and AOA (Asia, Oceania and sub-Saharan Africa), physical and intellectual development, as running projects in eight countries. Our commitment well as compromised immunity. Address under-nutrition Delivering solutions It is estimated that by 2025, the We are continuing to fortify relevant foods and through micronutrient nutrition crisis will cost society around beverages with the micronutrients most fortification USD 3.3 trillion (CHF 3.12 trillion) per year commonly lacking in local diets. In 2019, we (Global Access to Nutrition Index). Nestlé delivered 185.4 billion fortified servings Our objectives is helping tackle this by fortifying foods (including 9 billion from our joint venture Cereal By 2020: Reach millions of children and and beverages with micronutrients that are Partners Worldwide (CPW)), incorporating at families with fortified foods and beverages unavailable or lacking in local diets, focusing least one of the Big 4 micronutrients (iron, In progress particularly on children and families in iodine, vitamin A and zinc, as defined by the developing and high-priority countries. WHO) in 64 countries with higher vulnerability By 2020: Initiate or support collective to micronutrient malnutrition. action to reduce micronutrient deficiencies What we are doing in 10 countries Of our popularly positioned products for Micronutrient deficiencies are a serious lower-income consumers, 87% were fortified In progress public health challenge. We believe we can Tackling iron deficiency in with at least one of the Big 4. As a result of help tackle it by fortifying a significant Sri Lanka By 2020: Continue to develop the supply our global efforts, we ranked first out of the proportion of our nutritious foods and chain for biofortified crops and expand our 22 largest food and beverage manufacturing At the request of the Sri Lankan beverages. Collective action is key to fortified portfolio companies assessed by the 2018 Access to Government, we implemented achieving more. We work with governments, Nutrition Index (ATNI) in the category of a series of multi-pronged In progress non-governmental organizations (NGOS), Addressing Undernutrition. The next initiatives in the country to raise the professional nutritional community and assessment will be in 2020. awareness of iron deficiency, retailers to: supporting health professionals • Raise micronutrient fortification (MNF) We aim to use more biofortified maize in in the field and using chat bots on the agenda at political, research or cereal products, particularly in Nigeria. In to speak with consumers. consumer levels. addition to using as much biofortified maize as possible, we actively participate in Read more online • Advocate the inclusion of MNF in workshops and forums on biofortified crops. national nutrition plans. • Build multi-stakeholder platforms in Read more about this commitment support of MNF. • Develop education or social marketing campaigns with governments and other bodies. • Further research into MNF deficiencies.
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 information labeling initiative for food and beverage decisions about their food and beverage products in Continental Europe. We are choices. We have a responsibility to committed to implementing it at scale, communicate about our products starting in countries that already support the transparently and comprehensively, including Our commitment initiative. Nutri-Score is a color-coded system ingredients and nutritional values. Apply and explain nutrition that classifies products according to their It is important that we provide consumers with nutritional profile, with a scale from A information on packs, at easy-to-understand information. We align (healthier choices) to E (less healthy choices). point-of-sale and online with external front-of-pack labeling initiatives Read more about Nutri-Score on our website. to ensure the nutritional information of our Our objective Updating the Nestlé Nutritional Compass foods and beverages is visible and clear. By 2020: Continue providing detailed product The Nestlé Nutritional Compass has been nutrition facts with daily value percentages, What we are doing displayed on our product packaging since ingredients and allergens, and add special diet Improving nutrition information on packs 2005 and is now featured on 96.4% of information, nutrition labeling explanations packaging. The Compass brings together As regulations for front-of-pack nutrition and healthy eating tips on all our relevant nutritional information, explanations of what labeling vary from market to market, there are packs, as well as on our websites and e-retailer this information means for consumers and challenges associated with identifying a sites, to better enable informed choices how the product fits into a balanced and global approach that is quickly and easily In progress healthy diet. Research performed by the understandable for consumers. We started Consumer Goods Forum found that 55% of implementing Guideline Daily Amount (GDA) consumers want more information on social, in 2014, which is now present on 88% of our health, environmental and safety issues products, as part of our wider commitment to related to products. We are now in the provide consumers with transparent process of investigating how best to display information about the nutritional value of this on our packaging. Developing Ask Nestlé in India our products. Governments around the world are Read more about this commitment Helping parents better increasingly endorsing interpretive front-of- understand the unique nutrition pack labeling initiatives, such as the Health requirements of their children, we Star Rating in Australia, the color-coded developed Ask Nestlé in India. initiative in the UK and Ireland, and warning The online portal provides labels in some Latin American countries. information on nutritional needs In such cases, we are committed to as well as an easy-to-understand implementing local initiatives across our recipe directory. relevant product portfolio. Read more online
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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