Nestlé in the United States
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Nestlé in the United States Creating Shared Value Report 2015 G4-28, G4-29, G4-30 Performance Summary Nestlé’s performance indicators provide a focus for measuring and reporting Creating Shared Value, sustainability and compliance. This performance summary forms part of our communication on progress for the United Nations Global Compact Principles. Unless otherwise stated, performance indicators are for the year ending December 31, 2015. The references in the GRI column relate to the applicable indicator from the Global Reporting Initiative (GRI) G4 guidelines. We report against GRI G4 guidelines and indicators, in line with the material issues we need to address. The issues are identified through our stakeholder engagement process and they also shape the public commitments we have made. To provide transparency for our stakeholders, we’ve included the GRI G4 Content Index located at the end of this report, where we have indicated the correlation between GRI indicators, our key performance indicators and our commitments. This reporting year was important not just for Nestlé but for the United Nations, civil society and the private sector as a whole. In September 2015, 193 Member States of the UN adopted 17 new Sustainable Development Goals (SDGs) to define global priorities from now until 2030. We are reviewing our commitments against the SDGs and believe we should focus on specific goals where, by the nature of the business we are in, we feel we can maximize our impact on a global scale. Nestlé has worked with dairy farmers throughout its 150-year history. In this photo, farmers deliver milk to the Anglo-Swiss Condensed Milk Company factory in Cham, Switzerland in 1899. Nestlé in the United States: Nutrition, Health Environmental Rural Development and Creating Shared Value and Wellness Sustainability Water Responsible Sourcing Social Impact Appendix Contents Companion Reports Nestlé in the United States: 3 A Message from the 7 Nestlé in the United States Creating Shared Value Chairman and CEO of 8 Stakeholder Engagement and Nestlé USA Material Issues 5 Nestlé in the U.S. 9 2015 Stakeholder Convening Highlights 2015 6 Creating Shared Value: A Long-Term Perspective Nutrition, Health and 10 About Nestlé Nutritional 13 Providing Choices Wellness Foundation 13 Leading the Industry in 10 Reducing Sugars Nutrition and Health Research Nestlé in society: 11 Reducing Sodium 15 Building Knowledge Creating Shared Value and meeting our commitments 2015 11 Reducing Saturated Fats and Leadership in Children’s Removal of Trans Fat Nutrition 12 Delivering Clear Nutrition and 16 Providing Nutritionally Ingredient Information Sound Products Specifically Designed for Children Environmental 17 Our Environmental 19 Providing Climate Change Sustainability Performance Leadership 18 Improving Resource Efficiency 20 Promoting Transparency in Our Operations and Proactive, Long-Term Engagement in Climate Policy 19 Improving Environmental Annual Review 2015 Performance of Packaging Annual Review 2015 Water 21 Working to Achieve Water 22 Treating Discharged Water Efficiency Effectively 21 Advocating for Effective Water 22 Engaging with Suppliers, Policies Especially in Agriculture 22 Raising Awareness of Water Conservation 23 Implementing Responsible 25 Sustainable Fisheries Rural Development and Corporate Governance Report 2015 Sourcing Compensation Report 2015 Responsible Sourcing 25 Nestlé Cocoa Plan Financial Statements 2015 23 Sourcing High Risk 25 Continuously Improving Our Corporate Governance Report 2015 Commodities Green Coffee Supply Chain Compensation Report 2015 24 Farm Animal Welfare Financial Statements 2015 Social Impact 26 Our People 27 Assessing and Addressing 26 Rolling Out Project Human Rights Impacts in Our Opportunity Across All Our Supply Chain Operations 28 Promoting Healthy Lifestyles 26 Enabling All Employees to 28 Charitable Giving in Support Report Compliance of People and Their Pets 27 Putting Employee Safety and Wellness First Appendix 29 2015 Commitments 34 GRI Content Index Nestlé Purina Creating Shared Value Report 2014 30 Nutrition, Health and Wellness 36 Business Principles and 31 Environmental Sustainability Governance 32 Water 37 Resources 32 Rural Development and Responsible Sourcing 33 Our People, Human Rights and Compliance Nestlé in the U.S. – Creating Shared Value 2015 1 In July 2015, Nestlé partnered with Boys & Girls Clubs of America to launch the National Fitness Competition in Cleveland, Ohio. 2 Nestlé in the United States: Nutrition, Health Environmental Rural Development and Creating Shared Value and Wellness Sustainability Water Responsible Sourcing Social Impact Appendix G4-1 A Message from the Chairman and CEO of Nestlé USA Following the release of Nestlé S.A.’s 2015 report, Nestlé in Furthermore, we continued our ongoing efforts to conserve the United States is pleased to share our 2015 Creating water across all of our business units through advanced Shared Value Report focused on our core themes: Nutrition, technologies and water stewardship, such as at our Modesto Health and Wellness; Environmental Impact; Water; factory, and achieved further innovations across business lines Responsible Sourcing; and Social Impact. in optimizing product packaging. Since Nestlé’s beginnings more than 150 years ago, In 2015, we also furthered our efforts and commitments in Creating Shared Value has been at the heart of how we do responsible sourcing, supplier diversity, addressing human business and approach the future. Our firm belief is that for a rights and farm animal welfare issues in our supply chains, and company to prosper over the long term and create value for supporting local communities through employee training, shareholders, it must create value for society. We embed that recruitment and career opportunities. philosophy in everything we do. We are proud of our progress and welcome your feedback on When it comes to setting strategy, we take a long-term our commitments and performance. view. Our investments in nutrition science, environmental performance, supply chains and our people are designed to deliver long-term results to our business and society as a whole. We embrace sustainability as our ultimate goal, and Creating Shared Value is how we plan to get there. At Nestlé, we know that as the world’s largest food and Paul Grimwood beverage company, we have an opportunity to create Chairman and CEO of Nestlé USA immense positive impact. Our products reach nearly every household in the United States, with 97% of homes purchasing Nestlé brands. For the past 10 years we have worked to reduce sugar, sodium and saturated fat and remove trans fat from our products without sacrificing taste, positively impacting millions of consumers striving for better health and balanced diets. We are working to address childhood obesity, promote healthy habits and physical activity among school- age kids, and lead our industry in nutrition and health research. Environmental sustainability is an important part of Nestlé’s commitment to Creating Shared Value in society. In 2015, alongside industry peers, we used our voice to call for decisive action on climate change, encouraging governments to set measurable, science-based targets for carbon emissions reductions. Nestlé in the U.S. – Creating Shared Value 2015 3 4 Nestlé in the U.S. – Creating Shared Value 2015 Nestlé in the United States: Nutrition, Health Environmental Rural Development and Creating Shared Value and Wellness Sustainability Water Responsible Sourcing Social Impact Appendix Nestlé in the U.S. 2015 Highlights 1,222 89% We reformulated 1,222 food In 2015, we completed 522 products and pet products1 to supplier audits in the United consider nutrition or consumer States, 115% of our target. preference, including reduced This resulted in a three-year sodium, sugar, trans fat and total of 1,419 completed artificial colors and flavors, audits, of which 1,275 (89%) as well as increased essential were compliant to the Nestlé nutrients. Responsible Sourcing Program. 99% 35 By the end of 2015, 99% of In 2015, 35 Nestlé factories our children’s products2 met achieved zero waste to landfill all of the Nestlé Nutritional status in the U.S., 40% of our Foundation (NF)3 criteria for 100% target by 2020. children, which are based on nutrition science and dietary recommendations such as those published by the World Health Organization and the Health and Medicine Division (formerly Institute of Medicine). Global Leader A- 100 Top Nestlé ranked 2nd in the 2015 The CDP Water Program In November 2015, we assessment of the Global promotes sustainable corporate received a CDP Award Performer Access to Nutrition Index water stewardship. Nestlé from the environmental With a score of 89, Nestlé was (published in January 2016), participated for the second year sustainability ratings agency once again a top performer in which benchmarks the world’s running and in October 2015 CDP for having achieved a our industry in the 2015 Dow largest food and beverage received a “Leadership” score score of 100 A. Jones Sustainability Index, manufacturers on their of A-. which measures performance nutrition-related commitments, of the world’s sustainability practices and performance. leaders. Our score ranked us Nestlé ranked 1st in the in the 98th percentile. We also subcategories of breast-milk received an industry-leading marketing practices, general score of 99 out of 100 in the nutrition and under-nutrition. “environmental dimension.” FTSE4Good #2 Nestlé remains included Nestlé ranks second