2012 CREATING SHARED VALUE Report Hellos Healthy Hydration Water Responsibility Community Responsibility Packaging Responsibility Progress on Goals

2012 CREATING SHARED VALUE REPOrt hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals Creating Shared Value The Nestlé Waters North America 2012 Corporate Citizenship Report is our third to document our sustainability journey in North America. It highlights our approach to Creating Shared Value – a fundamental approach to the way we work that focuses on specific areas of business activity where value can best be created for both society and shareholders. To accomplish this, we seek ways to effectively impact key issues within our company walls and create value beyond our company doors. Consistent with previous reports, the 2012 report describes our commitment to corporate citizenship and sustainability, and highlights our many accomplishments in these areas during the past two years. We hope that its contents will further engage our employees and other stakeholders in this important effort to create shared value. Nestlé Waters North America (NWNA) is the largest bottled water company in North America by volume, with 10 North American leading bottled water brands. As part of the Nestlé S.A. family of companies, Nestlé Waters North America embraces the tenets of Creating Shared Value. Globally, these focus areas are nutrition, water and rural development. We align with these areas through our focus areas in North America: water as healthy hydration, water responsibility, building community vitality and packaging responsibility. For more information, please go to www.nestle.com/csv. Nestlé in society pyramid Nutrition, water, rural development Creating Shared Value Protect the future Sustainability Laws, business Compliance principles, codes of conduct 2 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals Table of Contents Page Creating Shared Value 2 12 Letter from Our CEO and Our Chairman 4 Company Profile 5 About This Report 7 Stakeholder Engagement 9 Goals and Targets Overview 2012 11 Page 18 Water as Healthy Hydration 12 Consumers can rely on Nestlé Waters for convenient water choices and the assurance of our rigorous quality standards in everyday life, as well as in times of crisis. Vital Backup to Community Drinking Water Supplies 16 Supporting Access to Water 16 Our Commitment to Quality and Transparent Reporting 17 Page Water Responsibility 18 32 Water efficiency and sustainable water management practices are key to our long-term success; and we work with partners to improve water resources. Key Components of Our Water Management Approach 19 Water Stewardship 21 Advocating for the Importance of Water 28 Building Community Vitality with Our Employees 32 Intrinsic to our long-term success is creating a positive work Page environment for our employees and, with them, engaging with 39 local communities to create shared value. Commitment to Employees 33 Commitment to Communities 35 Packaging Responsibility and Operational Sustainability 39 Inside our facility walls we are continuously improving our operational and packaging environmental footprint. At the same time, we are going beyond internal improvements and creating shared value for society by improving recycling rates through Extended Producer Responsibility for packaging and printed paper, among other ways. Page Energy Efficiency and Renewable Energy 40 51 Packaging Innovation and Recycling 43 Creating Shared Value by Extending Packaging Responsibility 47 Progress on Goals 51 Progress on 2008 Goals 51 Progress on 2010 Goals and Targets 55 3 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals Letter from Our CEO and Our Chairman Dear Stakeholders, Today, with 10 North American leading bottled water brands, NWNA is the largest bottled water company in North America by volume. We’re proud that we provide a product that We can help solve helps people live healthier lifestyles. Our company’s growth and evolution have been guided pressing social and by the tenets of our corporate citizenship, which is exemplified by our commitment to Creating Shared Value. We believe that we can help solve pressing social and environmental issues by environmental taking responsibility for our operations, but also working outside our facility walls. This report also reflects the key learnings from a dialogue between our leadership and citizenship teams, issues by taking with experts in climate change and emissions reduction, environmental and water issues, land responsibility for conservation and community engagement, sustainable development, and shareholder interests. our operations, Our focus on sustainable packaging began more than 20 years ago, when we started to lightweight our bottles. Since that time, we have reduced the PET plastic content in our most but also working popular half-liter size bottle by 60 percent. We are beginning to incorporate rPET into some of outside our our brands. In the future, we hope all bottles are recycled and captured for reuse, but for that to happen we need better recycling systems. facility walls. Current recycling systems are often antiquated, inefficient and unable to meet the growing marketplace demand for recycled materials. As a result, valuable resources go to waste. Right now, we believe that the best solution is a concept we’ve been promoting for some time: Extended Producer Responsibility (EPR) for packaging and printed paper. EPR is a model for recycling that shifts the responsibility for recycling to industry and helps to increase access to curbside recycling and recycling away from home – not just for bottles, but for all product We feel it is our packaging. We are fostering ways to more efficiently collect and transport used product packaging to recyclers, thereby increasing the supply of rPET for our containers. responsibility, along with other We recognize that we have to minimize our operational footprint – and we are continuously working to do this. However, society is facing large-scale sustainability challenges that require packaged goods all sectors to work together to create positive solutions for water and energy. We hope companies, to this report encourages more participation in collaborative problem solving, the continued development of environmentally sensitive packaging and support for convenient, universally improve recycling available recycling. systems. Tim Brown, CEO Kim Jeffery, Chairman 4 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals Company Profile Direct Production Facilities Nestlé Waters North America (NWNA) is the largest bottled water and third-largest nonalcoholic Los Angeles, CA beverage company in North America by volume. Our product portfolio includes spring, purified, sparkling, drinking, distilled, mineral and flavored bottled waters sold through retail outlets Livermore, CA and distributed directly to home and office delivery customers. We have the nation’s largest Phoenix, AZ refillable beverage delivery system, serving more than 1 million customers. Ready-to-drink tea, including naturally brewed and organic iced teas, joined our product line in 2011. Hilliard, OH Houston, TX Headquartered in Stamford, Connecticut, NWNA has grown during the last three decades to include 7,500 employees and 29 production facilities throughout the U.S. and Canada. Woodridge, IL Lorton, VA NWNA manages more than 40 spring sites on more than 14,000 acres – all with regional heritages that we treasure and protect. NWNA was the first beverage manufacturer in the Framingham, MA country to build a plant certified by the U.S. Green Building Council for Leadership in Jersey City, NJ Environmental Efficiency and Design (LEED). Today, we have 10 LEED-certified facilities, encompassing 3.7 million efficient square feet. Retail Production Facilities NWNA is a subsidiary of Paris-based Nestlé Waters S.A.S., the leading global bottled water Guelph, ON, Canada company, which is a global business unit of the world’s largest food company, Nestlé S.A., Hope, BC, Canada based in Vevey, Switzerland. Nestlé S.A. strives to be the world’s best nutrition, health and wellness company and is the largest private funder of health and nutrition research globally. Cabazon, CA As a subsidiary, NWNA is not publicly traded. Its parent company, Nestlé S.A., is listed on Ontario, CA the SWX Swiss Exchange under the symbol NESN. Sacramento, CA Denver, CO Facility Locations Direct Production Facilities Zephyrhills,Los FLAngeles, CA Madison,Livermore, FL CA Phoenix, AZ Greenwood, IN Hilliard, OH A Hollis Center,Houston, ME TX E F B Kingfield,Woodridge, ME IL C D Poland Spring,Lorton, ME VA Q H Stanwood,Framingham, MI MA O T Carlisle, JerseyOH City, NJ L R Breinigsville, PA G Retail Production Facilities P I Allentown,Guelph, PA ON Canada W M Red BoilingHope, Springs, BC Canada TN EE AA J Dallas, TXCabazon, CA BB S Hawkins,Ontario, TX CA K Sacramento, CA U Pasadena, TX V Denver, CO Z N AdministrativeZephyrhills, Offices FL Greenwood, IN X Stamford, CT, Headquarters Hollis Center, ME Y Guelph, Kingeld,ON, Canada ME CC Raynham, MA Poland Spring, ME DD Coppell,Stanwood, TX MI Brea, CABreinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX *Size is measured here by volume. **Teas were added to Nestlé’s product line in 2011. Pasadena, TX 5 Lorton, VA Carlisle, OH Administrative Oces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Brea, CA hellos healthy hydration water responsibility community responsibility

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