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
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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
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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, King eld,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 O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Brea, CA hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
Brand Portfolio*
Regional Spring
** Tea Brands
U.S. National
U.S. and Canada Imported
*Brand portfolio as of December 31, 2012 **Acquired in 2012. Not reflected in this report. 6 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
About This Report
This third corporate citizenship report reflects Nestlé Waters North America’s commitment to improving performance and maximizing the creation of shared value for stakeholders and society. It builds on goals set and reported on in our 2008 and 2010 Corporate Citizenship Reports.
Our goals and related targets are evolutionary, and here we report on the progress meeting them and updates to them. We established 28 goals in 2008 to advance our citizenship initiatives and drive sustainability performance. These goals and targets were updated and new ones set in 2010. We’ve made good progress on these goals, achieving the majority of them. Our next report, including progress on our 2012 goals and targets, will be published in two years.
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The data and case studies contained in this report pertain to fiscal years 2011 and 2012 (January 1 through December 31). Data are collected from each NWNA company-owned and operated facility and aggregated to represent performance for the entire enterprise The material against goals, targets and key performance indicators. Internal subject matter experts verify issues of highest the statements and data contained in this report, and NWNA’s key leadership reviews the full report. All references to currency are in U.S. dollars, unless otherwise noted. While we priority to make every effort to capture all information as accurately as possible, it is neither feasible NWNA and its nor practical to measure all data with absolute certainty. Where we have made estimates or exercised judgment, we have endeavored to highlight that within this report. stakeholders
The boundaries of this report cover the entire enterprise of Nestlé Waters North America in both the United States and Canada, including spring sourcing sites and operations, manufacturing plants, administrative offices and distribution facilities. In June 2011, NWNA acquired Sweet Leaf Tea Company, which includes bottled tea brands Sweet Leaf® and Tradewinds®. The acquisition represents less than packaging 1 percent of NWNA’s total portfolio. responsibility In this report, we focus on our water portfolio.
We used the Global Reporting Initiative’s (GRI) G3 Guidelines as a source for best practices in reporting and responsible source for conducting a materiality assessment. management Defining what is material and worthy of inclusion in the 2012 Corporate Citizenship Report involved examining NWNA’s mission and strategic business objectives, defining the broader sustainability context, identifying issues that are critical to society and intersect with our business, as well as engaging stakeholders and collecting their feedback. local operations Engagement with our stakeholders is fundamental to the evolution of our sustainability and corporate citizenship strategy. A cross-functional citizenship team comprised of individuals representing every department in the company drives this reporting process. This team is co-chaired by two members of the executive team – the head spring source siting of corporate affairs and the head of operations.
More information on the corporate citizenship and sustainability practices of our water and climate change parent company, Nestlé S.A., can be found in the Nestlé Creating Shared Value Report 2012, which is also aligned with the Global Reporting Initiative’s (GRI) G3 Guidelines disaster preparedness/ and is independently assured by 2011 report GRADE Bureau Veritas. As a subsidiary vital water backup of Nestlé S.A., our report is not independently audited.
We’d like your feedback and comments on the Nestlé Waters North America 2012 Corporate Citizenship Report. Please contact [email protected].
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Stakeholder Engagement Our stakeholders include our employees, shareholders, retail customers, our home/office direct delivery customers, the consumers who purchase our products, the local communities in which we operate or have a presence, a range of non-governmental organizations (NGOs) relevant to our business, and the Socially Responsible Investing community, which promotes sustainable It’s mutually business practices throughout the corporate community. It’s mutually important to have ongoing important to communication and engagement between NWNA and our stakeholders, and to collaborate and partner to develop solutions to pressing issues. have ongoing Direct Dialogue on Citizenship: North American Stakeholders’ Citizenship 360 Forum communication Experts in climate change and emissions reduction, environmental and water issues, land and engagement conservation and community engagement, sustainable development and shareholder between NWNA interests met with members of the company’s leadership and citizenship teams in July 2012. The Chatham House Rule, which promotes open exchange of information, was in effect to and our foster a robust, candid dialogue. stakeholders.
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Poland Spring, MAINE
Focus on Water Management and Increased Recycling While local stakeholders express Water is NWNA’s core product and this reality puts the company in the broader debate about confidence in how Poland Spring how water resources are managed. NWNA has comprehensive water management practices, manages its spring resources, the including the stewardship of our spring sources and our operational water usage. Beyond company agrees that beyond our our own environmental footprint, the company and stakeholders agree water resources need own environmental footprint, water greater attention, especially in areas where water is scarce and/or where aquatic habitats are resources need greater attention. altered by poor water management practices.
Packaging waste, especially plastic bottles, was the other focus of the forum. Specifically, the group discussed how to reclaim more recyclable PET plastic from the solid waste stream and increase collection of this valuable material through better recycling options. As an advocate for reinventing recycling, NWNA will continue to lead efforts aimed at increasing recycling NWNA will rates. Participants agreed NWNA’s leadership helps to advance the policy discussion. continue to lead
Local Feedback: Community Stakeholder Interviews efforts aimed In 2012, we also met with local citizens in the towns of Hollis, Fryeburg and Kingfield, at increasing Maine, homes to some of our bottling plants and spring sources, to invite their feedback on the effect of our local operations, our management of spring sources and our support of recycling rates. local communities. Participants The feedback has generally been positive about Poland Spring, which is how NWNA is known agreed NWNA’s in Maine. Stakeholders tend to view Poland Spring more like a local employer and less like a big company. They credit Poland Spring for bringing well-paying jobs with good benefits to leadership helps their communities. They also recognize the support Poland Spring has provided for schools to advance the and water education programs. And they expressed confidence in how Poland Spring manages its spring sources and maintains acres of surrounding open space lands. policy discussion.
Several stakeholders said our trucks pose the main concern for residents and community life, which is feedback we take seriously. We are in the process of addressing this issue, for example, by modifying trucking routes. 10 Direct Production Facilities Direct Production Facilities Los Angeles, CA Los Angeles, CA Livermore, CA Livermore, CA Phoenix, AZ Phoenix, AZ Hilliard, OH A Hilliard, OH A Houston, TX E Houston, TX E F B F B Woodridge, IL C Woodridge, IL C D D Lorton, VA Q H Lorton, VA Q H Framingham, MA O T Framingham, MA O T Jersey City, NJ Jersey City, NJ L R L R G G Retail Production Facilities Retail Production Facilities P I P I Guelph, ON Canada Guelph, ON Canada W M W M Hope, BC Canada EE Hope, BC Canada EE AA BB J AA J Cabazon, CA S Cabazon, CA BB S Ontario, CA K Ontario, CA K U U Sacramento, CA V Sacramento, CA V Denver, CO Denver, CO N N Zephyrhills, FL Z Zephyrhills, FL Z Greenwood, IN X Greenwood, IN X Hollis Center, ME Hollis Center, ME Y Y hellos healthy hydration King eld,water ME responsibility community responsibilityCC packagingKing eld, ME responsibility progress on goalsCC Poland Spring, ME DD Poland Spring, ME DD Stanwood, MI Stanwood, MI Breinigsville, PA Breinigsville, PA Red Boiling Springs, TN Red Boiling Springs, TN Dallas, TX Dallas, TX Hawkins, TX Hawkins, TX Pasadena, TX Pasadena, TX Goals and Targets OverviewLorton, VA 2012 Lorton, VA Carlisle, OH Carlisle, OH
Administrative O ces Administrative O ces Stamford, CT Stamford, CT Guelph, ON, Canada Guelph, ON, Canada Raynham, MA Raynham, MA Coppell, TX Coppell, TX goal Brea, CA Target Brea, CA
Water is essential to human health and wellness. Consumers can rely on NWNA for Water as healthy hydration convenient water choices and the assurance of our rigorous quality standards in everyday life, as well as in times of crisis.
• Advocate for water as essential • Continue educating and encouraging North Americans to lower their caloric intake to human health and wellness. from beverages. • Help provide safe drinking water • Partner with AmeriCares, the American Red Cross, Canadian Red Cross and others to in times of need. effectively distribute backup bottled water. • Exceed regulatory requirements for • Continue to advocate for federal standards on public disclosure of bottled water product quality and transparent reporting. quality information.
Water efficiency and sustainable water management practices are key to our long-term water responsibility success, and we strive with our partners to improve water resources.
• Communicate, advocate and • Compile, review and share water availability research at potential new spring sources lead sustainable water stewardship with stakeholders. practices. • By 2015, better understand potential climate change scenarios in source regions based on reputable research and share findings with stakeholders. • Partner with communities and stakeholders to support two watershed improvement projects per year through 2015. • Reach more than 100,000 youth, educators and community members about the importance of water through our support of leading water education entities by 2014.
community responsibility Intrinsic to our long-term success is creating a positive work environment for our employees and with them, engaging with local communities to create shared value.
• Be a preferred local employer and • Create an enriching work environment that fosters employee engagement, safety, health actively contribute to local and wellness, diversity, career development, community involvement and volunteerism, as economic vitality. well as by providing competitive compensation and benefits. • Operate with transparency and • Respond to local community concerns and increase community understanding of our engage with our local communities. operations by actively engaging with community members. • Increase volunteer hours by 20 percent by 2014. • Hold an open house at facilities in each of our brand regions by 2015.
Inside our facility walls we are continuously improving our operational and packaging Packaging Responsibility AND footprint. At the same time, we are going beyond internal improvements by creating Operational Sustainability shared value for society by seeking to improve recycling rates through Extended Producer Responsibility (EPR) programs for packaging and printed paper.
• Continuously reduce our carbon • Implement aspects of our renewable energy plan. intensity, aiming for 100 percent • Reduce carbon intensity by 20 percent across the NWNA value chain by 2013. renewable energy. • By 2020, develop the next generation of our recyclable bottles, with a lighter • Support the market for recycled environmental footprint, made from post-consumer recycled or renewable materials. materials by continuing to increase • By 2015, recycle 97 percent of the solid waste generated in our administrative offices, the use of recycled content in our Direct delivery branches and plant facilities. packaging, as feasible. • Collaborate and lead our industry in a shared commitment to increase U.S. recycling • Advance policies expanding all rates to 60 percent for PET beverage bottles by 2018. In Canada, recycle 85 percent of packaging recycling to capture the bottles we produce. every beverage container • Work with partners to have EPR legislation introduced and considered for passage in at least produced. two states by 2014. • Throughout Canada, complete one EPR pilot project each year through 2014 to encourage the establishment of EPR as a policy. • Define economic benefits of EPR through research studies by 2013.
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Water as Healthy Hydration
Water is essential to human health and wellness. Consumers can rely on NWNA for convenient water choices and the assurance of our rigorous quality standards in everyday life, as well as in times of crisis.
Our mission is to provide consumers with one of the healthiest beverage options among the 1 billion packaged beverages purchased daily: bottled water.1 But, providing healthy options is not enough. Calories from sugared drinks have more than doubled in the past 40 years.2 More than 65 percent of adults and 33 percent of children in the U.S.,3 and more than 30 percent of Canadians 4 are overweight or obese. Much of the increase in calories consumed during the last 30 years comes from beverages.5
Much more needs to be done to arm people with the information they need to make healthy, balanced choices about the beverages in their diets.
1 Beverage Marketing Corporation. 2 Nestlé S.A. “The Nestlé water management report.” March 2007: 17. 3 “The Future Costs of Obesity: National and State Estimates of the Impact of Obesity on Direct Health Care Expenses.” November 2009. United Health Foundation, the American Public Health Association and Partnership for Prevention, based on research by Kenneth E. Thorpe, Ph.D., Emory University. 4 Gotay, Carolyn C., Peter T. Katzmarzyk, Ian Janssen, Marliese Y. Dawson, Khatereh Aminoltejari and Nicci L. Bartley. “Updating the Canadian Obesity Maps: An Epidemic in Progress.” Canadian Journal of Public Health. Vol. 104, No. 1 (2013). 5 Bleich, Sara N., Y. Claire Wang, Youfa Wang and Steven L. Gortmaker. “Increasing consumption of sugar-sweetened beverages among US adults: 1988-1994 to 1999-2004.” The American Journal of Clinical Nutrition. Vol. 89, No. 1 (2009): 372-381. 12 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Direct Production Facilities Framingham, MA Los Angeles, CA O T Jersey City, NJ Livermore, CA L R Phoenix, AZ G Retail Production Facilities Hilliard, OH P I Guelph, ON Canada A Houston, TX E W M Hope, BC Canada F B EE Woodridge, IL C Cabazon, CA AA BB D J Lorton, VA Q H S Ontario, CA Framingham, MA K Sacramento, CA O T U Jersey City, NJ V Denver, CO L R N Zephyrhills, FL G Z Retail Production Facilities Greenwood, IN P I X Guelph, ON Canada Hollis Center, ME W M Hope, BC Canada EE Y King eld, ME CC Cabazon, CA AA BB J Poland Spring, ME S Ontario, CA DD Stanwood, MI K Sacramento, CA U Breinigsville, PA V Denver, CO hellos healthy hydrationRed Boiling Springs, TNwater responsibility communityN responsibility packaging responsibility progress on goals Zephyrhills, FL Z Dallas, TX Greenwood, IN X Hawkins, TX Hollis Center, ME Pasadena, TX Y King eld, ME CC Lorton, VA Poland Spring, ME Carlisle, OH DD Stanwood, MI Breinigsville, PA Administrative O ces Red Boiling Springs, TN Stamford, CT Dallas, TX Guelph, ON, Canada Hawkins, TX Raynham, MA Pasadena, TX Coppell, TX Lorton, VA goal – A key elementBrea, CA in our sustainability journey is to advocate for water as essential to humanCarlisle, OH health and wellness. Administrative O ces Limit calories Stamford, CT Guelph, ON, Canada Raynham, MA TARGET – ToCoppell, continue TX educating and encouraging North Americans to lower their from beverages to Brea, CA caloric intake from beverages. 10-15% of daily
NWNA helps educate North American consumers about healthy hydration and making caloric intake. This balanced beverage choices by partnering with leading health organizations to get the word means no more out to consumers, educators, practitioners and policymakers. than 200-300 Advocating with Leading Health Organizations beverage calories In 2012, we partnered with the U.S. Department of Agriculture and the U.S. Department of Health and Human Services to promote the 2010 Dietary Guidelines for Americans with the for adults recommendation to “drink water instead of sugary drinks.” consuming
We also partnered with the Academy of Nutrition and Dietetics to sponsor 2,000 total the Optimal Hydration Symposium at the Academy’s Food & Nutrition calories Conference & Expo. The symposium featured physicians and nutritionists, 6 including the well-known researcher Adam Drewnowski, who made the each day. case for hydration to help combat obesity.
In a third strategic alliance in 2012, Nestlé and the National Education Association Health Information Network developed health education resources for grades K-3 teachers called Healthy Steps for Healthy Lives®.
The innovative program, linked with national curriculum standards, features three instructional activities – THINK Healthy, EAT Healthy and MOVE Healthy. In appealing interactive modules, kids learn the importance of beverage choices in a balanced diet.
Click here to learn more and download materials.
6Popkin, Barry M., Lawrence E. Armstrong, George M. Bray, Benjamin Caballero, Balz Frei and Walter C. Willett. “A new proposed guidance system for beverage consumption in the United States.” The American Journal of Clinical Nutrition. Vol. 83, No. 3 (2006): 529-542.
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Today’s consumers drink more soda and less water than recommended*
Up to 6 6
5
Cups 4
3 2.5
46% 2 Tap 1.4 Up to 1 1 54% Bottled Water
Recommended* Consumed Recommended* Consumed in 2012 in 2012 Water Soda
*Beverage Marketing Corporation
The Beverage Pyramid* The cornerstone of our communications on healthy hydration continues to be the Beverage Pyramid, which provides nutritional science from leading health experts to guide consumers on the recommended amount of calories consumed from beverages.
Water Essential for life; Up to 6 cups, 0 cal/cup helps the body to function properly
Unsweetened Coffee/Tea Antioxidants in tea and coffee may Coffee: Up to 4 cups, 0 cal/cup protect the body from the damaging Tea: Up to 8 cups, 0 cal/cup effects of free radicals
Lowfat Milk/Soy Key sources of vitamin D, calcium Up to 2 cups, 100** cal/cup and other important nutrients
Diet Drinks Calorie-free beverages with a sweet taste Up to 4 cups, 0 cal/cup
100% Juice/Sport Juice: Up to 1 cup, 115** cal/cup Juices provide some vitamins and nutrients. Sport: Based on duration and intensity of exercise Sports drinks help hydrate endurance athletes.
Soda/Juice Drinks Calorie-rich sweetened beverages Up to 1 cup, 110** cal/cup
1 cup = 8 fl. oz. *Beverage recommendations developed by panel of national health experts. ** Average caloric amount/cup Popkin, Barry M., Lawrence E. Armstrong, George M. Bray, Benjamin Caballero, Balz Frei and Walter C. Willett. “A new proposed guidance system for beverage consumption in the United States.” The American Journal of Clinical Nutrition. Vol. 83, No. 3 (2006): 529-542. 14 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
Reaching Consumers through Our Brands Our highly regarded bottled water brands can be powerful platforms for healthy hydration. Starting in 2010, the Hydration Movement challenged Americans to swap one 12 oz. sugary beverage a day for water, and thereby eliminate the initial target of about 50,000 calories a year. Swap one 12 oz. So far, more than 120,000 families have participated in the movement launched by the Nestlé® sugary beverage ® Pure Life brand. a day for water In 2012, Allentown, Pennsylvania, Mayor Ed Pawlowski launched his “Fruits and Veggies and eliminate on the Move” truck – an Allentown Health Bureau initiative supporting first lady Michelle Obama’s Let’s Move! campaign. Nestlé Pure Life contributed to this effort with Nestlé Pure about 50,000 Life Purified Water for children to enjoy with healthy snacks on the playgrounds. Allentown calories a year. was one of six cities from around the world to receive the 2012 Childhood Obesity Prevention Award from the U.S. Conference of Mayors for the initiative.
People say they would choose sugared beverages if bottled water was not available 63 percent of the time, according to market research.7 Armed with this data, NWNA produced two youth-oriented videos visualizing the helpful role water can play in a healthy lifestyle. Posted on YouTube in 2012, the “Hidden Calories from Beverages” videos illustrate the amount kids can consume daily, and point out that by avoiding them, kids can save 50,000 unnecessary calories a year. To date, the videos have received more than 500,000 views.
“Hidden Calories from Beverages”
“Bottled Water as a Choice”
With more than 500,000 views, these youth-oriented videos visualize the helpful role water can play in a healthy lifestyle.
7FRC Research Corporation. “Bottled Water General Market Tracking Study, Q4 2010-Q3 2011.”
15 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V hellos healthy hydrationDenver, CO water responsibility community responsibility packaging responsibility progress on goals N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Vital Backup to CommunityRed Boiling Springs, TN Drinking Water Supplies Direct Production FacilitiesDallas, TX Los Angeles, CA Hawkins, TX The tap water systemLivermore, – a CA marvelPasadena, TX of infrastructure and community value – can have Phoenix, AZ Lorton, VA vulnerabilities given itsHilliard, complexities OH Carlisle, OH and can be disrupted by accidentsA from a pipe breach to Houston, TX E F B Woodridge, IL Administrative O ces C D natural disasters. In timesLorton, VA like Stamford,these, CT bottled water providesQ aH reliable source of safe drinking water. Framingham, MA Guelph, ON, Canada O T Jersey City, NJ Raynham, MA Coppell, TX L R G Retail Production FacilitiesBrea, CA P I GOAL – HelpGuelph, provide ON Canada safe drinking water in times of need. W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Producing and deliveringDenver, CO ample quantities of water during major water outages requires a robust N Zephyrhills, FL Z industry operating acrossGreenwood, INNorth America that can provide theX instant large quantities of water Hollis Center, ME Y King eld, ME CC often needed. Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX NWNA’s products offerHawkins, easy TX and convenient ways to safely store a gallon of water per person Pasadena, TX per day as recommendedLorton, VA by emergency preparedness and relief organizations like the Red Carlisle, OH Producing and delivering Cross and Federal EmergencyAdministrative O ces Management Agency (FEMA). Stamford, CT ample quantities of Guelph, ON, Canada Raynham, MA water during major water target– PartnerCoppell, TX with AmeriCares, the American Red Cross, Canadian Red Cross and Brea, CA outages requires a robust others to effectively distribute backup bottled water. industry that can provide the instant large quantities Since 2010, we have donated millions of bottles of water to disaster relief agencies to support of water often needed. people impacted by emergencies, including major natural disasters. (Click here to learn more about our response in times of need.)
Superstorm Sandy Support
In late October 2012, Superstorm Sandy devastated shoreline communities in Connecticut, New York and New Jersey. Municipalities, guided by FEMA and other agencies, led preparedness efforts in likely impact areas by encouraging citizens and agencies to have bottled water on hand as reliable water backup in case their municipal supplies were affected.
Responding to Superstorm Sandy’s devastation, more than 100 trucks converged on the region from NWNA’s plants in Pennsylvania, Michigan, Texas and Maine, delivering more than 5 million bottles of water to hard-hit communities. Approximately 1,500 employees worked tirelessly to meet the acute needs of storm victims. As a company headquartered in New England, we were honored to offer helping hands.
Supporting Access to Water We support long-term, sustainable investments in public water infrastructure improvements here in the United States through mechanisms such as those envisioned in the Water Infrastructure Finance and Innovation Act, which was introduced in the U.S. Congress in early 2013. The program – modeled after the successful Transportation Infrastructure Finance and Innovation Act – would provide low-cost financing assistance for large water infrastructure projects through secured loans and loan guarantees to help rebuild the nation’s tap water backbone with minimum impact on the federal budget. 16 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D hellos healthy hydration water responsibility communityLorton, VA responsibility packagingQ responsibilityH progress on goals Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO Our Commitment to Quality and Transparent Reporting N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC We believe that access to adequate,Poland Spring, ME safe fresh water DD Stanwood, MI Sharing bottled water Breinigsville, PA and sanitation are basic humanRed Boiling Springs,rights, TN and whatever Dallas, TX quality reports with option they choose – tap, filteredHawkins, TX or in a bottle – people Pasadena, TX Lorton, VA should have access to qualityCarlisle, reports, OH as well as water consumers reinforces source disclosure. Administrative O ces Stamford, CT Guelph, ON, Canada the confidence people Raynham, MA Coppell, TX GOAL – Meet or exceedBrea, CA regulatory have in our products. requirements for quality and transparent reporting.
To ensure we are delivering our consumers the high-quality products they expect and deserve, we employ and continuously update state-of-the-art technology in our quality control processes.
Quality Control While municipal tap water provides safe water for numerous purposes – from industrial and domestic use to drinking – our bottled water is intended only for drinking and on-the-go convenience. Although the end use of bottled water and tap water is often different, bottled water quality is Every bottle tells a story regulated to at least the same safety standards as 040511 (Date Produced) tap. When it comes to concerns like lead and coliform 095 (Julian Date) WF01 (Production Plant) bacteria, federal regulations are more rigorous for 5 (Production Line) bottled water than for tap. 0034 (Military Time) BB04/18/14 (Best By Date)
Our sourcing and bottling processes begin with either Every one of our bottled water labels spring water or tap water and go through multistage contains a full ID card that tells a detailed processes to benefit quality, taste and safety. Safety and history about the water you’re about to Direct Production Facilities Los Angeles, CA drink: the brand and type of water, its quality protocols are overseenLivermore, CA by quality managers Phoenix, AZ birthplace and origin, and how to contact at our manufacturingHilliard, facilities, OH which maintain the A Houston, TX us. TheE label can lead us right back to F B Woodridge, IL C highest certification – ISO 22001. All of our facilities D Lorton, VA Q theH exact plant, bottling line and time the Framingham, MA O T undergo independentJersey inspections, City, NJ and our suppliers L productR was produced. G Retail Production Facilities P I are required to provideGuelph, certificates ON Canada of compliance W M Hope, BC Canada EE AA J confirming that the goodsCabazon, CA they provide meet regulatoryBB S Ontario, CA K U standards, as well as ourSacramento, internal CA quality standards. V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y Quality Reporting King eld, ME CC Poland Spring, ME DD Stanwood, MI We believe that whereBreinigsville, our PA water comes from and its finished product quality should be publicly Red Boiling Springs, TN available. Sharing thisDallas, information TX and making it easily accessible to consumers reinforces the Hawkins, TX Pasadena, TX confidence people haveLorton, VA in all of our bottled water products. That’s why information for all our bottled water productsCarlisle, also OH is available on our website. Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA target– ContinueCoppell, TX to advocate for federal standards on public disclosure of bottled Brea, CA water product quality information.
We support U.S. Senator Frank Lautenberg’s call for a federal standard for bottled water quality reporting and continue to work with partners to help advance this legislation. In 2011, we met our commitment to lead the industry by adding messages to our water product labels that direct consumers to either our website or a phone number to call for quality information. Storage and “best by” information also is available on our corporate and brand websites for all of our products. (Click here for more about our quality reporting and disclosure goals.)
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Water Responsibility
Many regions around the world face significant challenges related to water, including some in North America. The 2030 Water Resources Group (WRG), of which Nestlé S.A. is a founding member, engages in fact-based approaches to help countries achieve sustainable comprehensive solutions to water challenges. W ork to achieve water According to their new report, collective global water withdrawals are projected EFFICIENCy across our to exceed natural renewals by 60 percent by 2030. Water availability, quality and operations efficiency issues are affecting many areas. Leading in water resource management and excelling Sustainable water management practices are essential to protecting resources and in the reduction of direct ensuring the long-term supply of fresh water. Globally, Nestlé S.A.’s W.A.T.E.R. water use in all our facilities. commitments are focused on using less water, improving water efficiency, controlling the quality of discharged water, actively promoting better water practices at Nestlé and in our supply chains, and raising awareness of water conservation. A dvocate for effective WATER policies and In North America, as a company that relies on the continued availability of stewardship high-quality water, we are committed to being leaders in sustainable water Promoting public policies stewardship practices and the most efficient user of water within our industry. that place value on water at every level.
T reat effectively the WATER We discharge Setting strict targets for returning clean water to the environment.
E ngage with suppliers, ESpecially those in agriculture Helping to improve their water management with a focus on impacts at watershed level.
R aise awareness of WATER access and conservation Engaging employees, communities and consumers in the water imperative.
18 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Direct Production Facilities Framingham, MA Los Angeles, CA O T Jersey City, NJ Livermore, CA L R Phoenix, AZ G Retail Production Facilities Hilliard, OH P I Guelph, ON Canada A Houston, TX E W M Hope, BC Canada F B EE Woodridge, IL C Cabazon, CA AA BB D J Lorton, VA Q H S Ontario, CA Framingham, MA K Sacramento, CA O T U Jersey City, NJ V Denver, CO L R N Zephyrhills, FL G Z Retail Production Facilities Greenwood, IN P I X Guelph, ON Canada Hollis Center, ME W M Hope, BC Canada EE Y King eld, ME CC Cabazon, CA AA BB J Poland Spring, ME S Ontario, CA DD Stanwood, MI K Sacramento, CA U Breinigsville, PA V Denver, CO Red Boiling Springs, TN N Zephyrhills, FL Z Dallas, TX Greenwood, IN X hellos healthy hydrationHawkins, TX water responsibility community responsibility packaging responsibility progress on goals Hollis Center, ME Pasadena, TX Y King eld, ME CC Lorton, VA Poland Spring, ME Carlisle, OH DD Stanwood, MI Breinigsville, PA Administrative O ces Red Boiling Springs, TN Stamford, CT Dallas, TX Guelph, ON, Canada Hawkins, TX Raynham, MA Pasadena, TX Coppell, TX Lorton, VA GOAL – Communicate,Brea, CA advocate and lead in the area of sustainable water Carlisle, OH
stewardship practices.Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA We have met our Coppell, TX targets –Brea, Compile, CA review and share water availability research at potential new spring sources with stakeholders. commitment to make • By 2015, better understand potential climate change scenarios in source regions publicly available our based on reputable research and share findings with stakeholders. • Partner with communities and stakeholders to support two watershed improvement process for managing projects per year through 2015. and monitoring our • Reach more than 100,000 youth, educators and community members about the importance of water through our support of leading water education entities by 2014. spring sites.
Key Components of Our Water Management Approach
Understanding Our Water Footprint Our Global Environmental Footprint (GEF) assessment tool, which measures the total volume of fresh water used to produce our products from source to bottle, is helping us identify new opportunities to reduce our water use. The GEF measures water use at every step in a product’s life cycle, allowing for benchmark comparisons between products and processes that inform our water reduction priorities and new initiatives at our plants.
In 2012, we conducted a pilot program to map our water use at our Dallas, Texas, facility to pinpoint where water may be lost during the manufacturing process. The preliminary findings revealed opportunities for further improvement. Since then, we have mapped the water use in all of our facilities to help us focus on potential areas of future water savings to further reduce our operational water footprint.
Managing and Monitoring Our Springs Guided by a field staff of 10 natural resource managers (NRMs), we carefully select and monitor our springs so they remain sustainable sources of high-quality water – now and for future generations. Many of our spring sources have been in operation as water sources for a long time. Today, we manage 40 spring sites and spend millions of dollars each year maintaining them and more than 14,000 acres of watershed land as open space, helping to safeguard the local ecosystems.
Our NRMs, who are professionally trained geologists, hydrogeologists and engineers, follow a rigorous monitoring process that includes four key elements: water recharge, water levels, water flows and water use. We have met our commitment to make publicly available our gilmore pond, canada process for managing and monitoring our spring sites. Each spring requires a tailored approach because of their differing geologic and climatic conditions. The sites are visited and observed regularly, and local environmental surveys are conducted at least every five years to monitor the long-term health of the habitats around our springs, as well as to ensure our withdrawals do not exceed natural renewal levels over the long term.
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Increasing Water Use Efficiency While we are an obvious user of water, we are extremely efficient with our water use and one of the most efficient producers in the industry. While our production volume continues to rise, our optimization efforts have led to a 3.2 percent reduction of water per unit produced from 2008-2012.
Water Use and Efficiency
17.0
16.3 16.0 15.5 15.4
1.40 1.38 1.37 1.35 1.35
2008 2009 2010 2011 2012
Total water use (billions of liters) Water use intensity (liters/liter produced)
4.0** Water Efficiency Among the vast category of packaged * beverages, bottled water has one of the by Beverage Type lightest water footprints in general; and, in particular, bottled spring water requires minimal water for processing.
2.0 ** On average, we use 1.35 gallons of water to produce 1 gallon of water. In comparison, it takes 2 gallons of water to produce 1 gallon of soda 1.35 and 4 gallons of water to produce 1 gallon of beer. Gallons of Water Used per Gallon of Product Produced
*”Water Stewardship Benchmarking Study.” December 2012. Beverage Industry Environmental Roundtable. **Does not include water for growing or NWNA Soda Beer processing agricultural ingredients Bottled Water
Managing Wastewater We continue to minimize our wastewater generation by increasing efficiencies in our bottle filling process and developing ways to use less water for cleaning. We actively seek new ways to repurpose water, such as using reclaimed water in our cooling towers. As we use less water, we create less wastewater. Some plants also have adopted wastewater practices that benefit our neighbors and the environment by employing tertiary treatment and spray irrigation.
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Our Water Resource Review Process From source to bottle, we examine all aspects of our water use for efficiency, quality, sustainability and taste. Our Water Resource Review (WRR) program is an internal audit process designed to evaluate compliance with regulatory and internal standards. Focused on the key components of our water operations – water resources, transportation, treatment and wastewater – NWNA’s hydrologic experts examine our water use as it relates to quantity, quality, regulatory compliance, site protection and stakeholder relations. The WRR helps to raise awareness of the importance of these issues at a local operational level and share best practices.
Water Stewardship
Creating Shared Value by Sharing Our Research Beyond what we do in our own operations, we seek opportunities to create shared value with the communities where we source our water. Through our stakeholder discussions, we learned that the information we collect during our siting process could be useful to local partners and benefit the communities where we source water.
crystal springS, Florida
21 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX hellos healthy hydrationPasadena, TX water responsibility community responsibility packaging responsibility progress on goals Lorton, VA Carlisle, OH
Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX target – Compile,Brea, CA review and share water availability research at potential new spring sources with stakeholders. We only select Before we use a spring source for our business, we must fully understand the water availability of that spring. To do this, our natural resource managers carefully study the watersheds of springs that have potential sites, examining spring and other surface flows, groundwater levels and recharge the capacity to quantity. We only select springs that meet our high quality standards and have the capacity to supply our bottling needs without exceeding natural renewal levels over the long term. supply our bottling needs without Science-based information generated through research and constructive collaboration is critical to sustainable natural resource management, and we believe this approach is the best model exceeding natural for water resource management. renewal levels over the long term. ∞
saco river, hollis, maine
22 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX hellos healthy hydrationPasadena, TX water responsibility community responsibility packaging responsibility progress on goals Lorton, VA Carlisle, OH
Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX target – ByBrea, CA 2015, better understand potential climate change scenarios in source regions based on reputable research and share findings with stakeholders.
We recognize today’s changing climate could impact our spring sources and surrounding lands. As a result, we commissioned a third-party review of climate research in 2011 to learn more about the regional effects of climate change on water resources. While the study is still underway, preliminary results indicate that climate change models are predicting modified Equipped with rainfall patterns and increased incidences of extreme weather events. Such changes could affect sound scientific our spring sources and the communities in which we operate. Equipped with sound scientific information, we will be able to better manage our risks related to climate change. We also information, we believe others could benefit from this knowledge, so we are committed to sharing this research will be able to about the effects of climate change with interested local communities and stakeholders. better manage our risks related to climate change.
ºC (+ –) > or < future = X
23 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K hellos healthy hydration water responsibility communityU responsibility packaging responsibility progress on goals Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Partnering for Water:Breinigsville, Watershed PA Improvement and Water Education Red Boiling Springs, TN Dallas, TX Leadership in water stewardshipHawkins, TX practices means going beyond at our own sources and facilities Pasadena, TX to promote sustainableLorton, VApractices in the local communities where we work and live through Carlisle, OH
partnership, educationAdministrative and O ces advocacy. Stamford, CT Guelph, ON, Canada Raynham, MA We hope to Coppell, TX target – PartnerBrea, CA with communities and stakeholders to support two watershed improvement projects per year through 2015. implement two
Watersheds are critical to supporting human, animal and aquatic life, watershed maintaining biodiversity and contributing to the well-being of our improvement communities. Transcending county, state and national borders, if one watershed is compromised, many people can be projects per year. affected. Conversely, when even one watershed is well-managed, many can benefit.
For many years, we have partnered 2013 with leading not-for-profit organizations and local community stakeholders to conduct watershed improvement projects that create shared value in communities across the country. Our efforts as stewards of these critical lands – often with partners – help to bring back healthy habitats for fish, waterfowl and wildlife, which also improves water quality and aesthetics for people living nearby. Through 2013 our partners, we help educate about water resources and make improvements on the ground. 2014
2014
2015
2015
Katahdin Lake, MAINE*
* Not associated with an NWNA source. 24 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
Collaborating for Healthy Watersheds through Fisheries and Wetland Restoration Projects Each year, we support several ongoing watershed improvement initiatives, in addition to our 2015 watershed target. From Maine, home to our Poland Spring® brand, and Florida, where we source spring water for our Zephyrhills® Natural Spring Water brand, to the springs that support our Montclair® brand in Canada, our ongoing watershed initiatives are concentrated near our spring sites and their surrounding watersheds, and range from annual environmental education festivals, grants and cleanup events, to a decade-long reforesting initiative.
For example, since 2003 Nestlé Waters Canada has partnered with Friends of Mill Creek to support restoration projects in the Mill Creek watershed in Ontario. We annually support their Stewardship Ranger program, which hires four local high school students and a crew leader to undertake fisheries and stream rehabilitation works each summer, exposing students to real work experience, including stream bed regrading, tree planting and culvert replacement.
See the map on page 30 to learn more about our involvement in specific projects since 2010, and where we focused our efforts.
In 2011, we worked in California with The Nature Conservancy to restore a damaged in-stream salmon habitat. We partnered with Ducks Unlimited to improve the wetland areas around the spring sources for our Ozarka® Natural Spring Water brand in Hawkins, Texas. In 2012, we undertook the restoration of a fish hatchery to more natural conditions at Ruby Mountain Springs in Chaffee County, Colorado. And, we partnered with the Mill River Collaborative to develop a flood plain meadow along the river corridor to protect water quality in Stamford, Connecticut, our headquarters community.
Through our watershed projects, we work to return fish to our waterways and provide healthy habitats for waterfowl and wildlife, which depend on healthy aquatic systems for survival. Our efforts also restore natural beauty for the enjoyment of surrounding communities and improve access to outdoor recreational activities like fishing and hunting. Beautifying watersheds and wetland environments also can improve local property values, as in the case of Stamford’s Mill River Collaborative.
Since 2003, Nestlé Waters Canada has partnered with Friends of Mill Creek to support restoration projects in the Mill Creek watershed in Ontario.
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PROJECT brief PROJECT brief
Promoting Wetland Conservation with Creating Shared Value in Our Own Backyard: Ducks Unlimited Restoring Stamford, Connecticut’s Mill River Basin Through our Ozarka® Natural Spring In 1641, Stamford, Connecticut’s Mill River Water brand, we partnered with Ducks was dammed for milling. Over the years, the Unlimited, a global leader in wetlands altered habitat destroyed much of the river’s conservation. This effort improved water aquatic life and native plant life. At NWNA, resources and wetlands around the springs we saw the damage firsthand, as the river that support our facility in Hawkins, flows below our new headquarters. To return fish to the river and restore the local Texas, as well as wetland restoration along ecosystem, we entered a partnership with the Mill River Collaborative in 2012 to the entire Texas Gulf Coast. Conserving help fund the development of a flood plain meadow, which filters surface water, wetlands provides critical habitat for cleansing it before it enters the river. This is part of a massive renewal project to waterfowl and other wildlife, and improves create a natural park environment at the center of an urban landscape. It also overall watershed health. With our investment, demonstrates how to sustainably use native plants to create a buffer along the Ducks Unlimited is conducting local river to protect water quality, support local ecology and minimize damage from science-based research, allowing the floods. Reintroduced to the river, river herring – a keystone fish and the river’s organization to continue to monitor and once predominant inhabitant – are bringing with them other fish, migratory birds evaluate habitat programs in the region and small aquatic mammals. and improve overall wetland health. “In addition to capital On World Water Day, the Mill River Collaborative came to our headquarters to contributions, Nestlé educate our employees about the importance Waters sent enthusiastic of watersheds. NWNA employees have volunteer crews during the since been active participants in the project, spring, summer and fall, volunteering hundreds of hours planting donating over 200 hours native seedlings, removing invasive brush of community service and and removing trash from the river, gaining demonstrating leadership firsthand appreciation for watershed restoration. Through this project, we hope local homeowners as year-round contributors and other businesses along the Mill River to our river stewardship and its tributaries will adopt a similar program.” approach, and that visitors will learn the – Milton Puryear, Executive importance of riparian buffers, the vegetated Director of Stamford, Connecticut’s areas along the stream that protect water Mill River Collaborative quality. Watch a time-lapse video of the Mill River Collaborative restoration project here.
PROJECT brief
The Nature Conservancy’s “Wood for Salmon” Project Today, many salmon populations, which play a vital role in stream ecosystems and “Salmon are the ‘canary in the the local economy, are threatened because of rising water temperatures, among coal mine’ of watershed health, other factors. A decline in salmon populations is one of the first indicators of and restoring their populations is diminished ecosystem health. In California, The Nature Conservancy (TNC) is critical to improving ecosystem spearheading a multiyear effort to restore damaged in-stream habitat for salmon. For example, only 1 percent of the historic population of California coho salmon health and water quality. We thank exists. Through applied research, TNC scientists demonstrated how felling trees in Nestlé Waters for recognizing the streams restores cooler water temperatures and restricts flow in the winter, providing importance of restoring salmon in sheltered conditions for salmon to spawn and fingerlings to survive. California.” – Brian Stranko, Regional Director, In 2011, we supported TNC’s efforts with a The Nature Conservancy contribution to enable more scientific research and environmental advocacy for priority salmon streams throughout the state of California, including restoration demonstration projects to educate about the project’s benefits and collaboration with state agencies. In 2012, legislation that supports TNC’s “Wood for Salmon” approach was signed into law. It supports the restoration Watch a video on how The Nature of 72 threatened salmon populations of coho salmon, as well as Chinook and steelhead salmon, Conservancy is working to restore in 3,000 miles of waterways from Santa Cruz, California, to the Oregon border. salmon populations, one log at a time.
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PROJECT brief
Ruby Mountain Springs Hatchery Reclamation Project in Chaffee County, Colorado In 2012, we worked with local ecologists from Colorado Mountain College (CMC) to restore a fish hatchery at Before: Hatchery Ruby Mountain Springs buildings dot the to more natural landscape conditions by enhancing the wetland and riparian habitat of the spring site. Wetlands protect water quality, regulate water quantity and provide an excellent wildlife habitat. By late summer, wildlife had begun returning to the area, including ducks, geese and muskrat, and numerous trout fingerlings had populated the pond. We continue to work with the students at CMC to monitor the success of the project.
To develop the restoration plan for the hatchery site, we engaged a stakeholder committee of regulatory, scientific and educational experts with a diverse knowledge base to develop a comprehensive and feasible plan. This committee includes fishery biologists, wildlife biologists and amphibian specialists from Colorado After (Artist’s Division of Wildlife, representatives rendering): Site from Trout Unlimited, Ducks Unlimited, restored to more Chaffee County, Chaffee County High natural conditions School, NWNA and Apex Development Services, CMC natural resource managers and adjacent landowners. Through this data-driven and multistakeholder collaborative approach, we were able to best understand and meet local water concerns, ultimately creating shared value for the hatchery’s surrounding communities, ecosystem and our business.
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Advocating for the Importance of Water Addressing water challenges, including today’s daily consumption habits, requires an increased awareness of the importance of water.
An Average U.S. Water Footprint – One Person, Every Day*
Amount of water – 22 gallons 0.07 gallon – embedded in the foods we eat 100 gallons 125 gallons – taken to support our energy consumption – both at home** and on the road
– used to provide material goods and services
– consumed by American household 700 gallons 1,056 gallons activities, including residential irrigation, showers, faucets and toilets
– lost through U.S. water infrastructure
– amount of bottled water consumed
* Figures calculated from the latest data available (2005) from the U.S. Geological Survey and correlating data from Beverage Marketing Corporation. For more information on these numbers, see the National Geographic “Water Footprint Calculator Methodology and Tips.” ** Water footprint only includes electricity used at home and does not factor in oil or other heating fuels.
28 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX hellos healthy hydrationHawkins, TX water responsibility community responsibility packaging responsibility progress on goals Pasadena, TX Lorton, VA Carlisle, OH
Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA target –Coppell, Reach TX more than 100,000 youth, educators and community members about the importance of water through Brea, CA our support of leading water education entities by 2014.
This target, established in 2010, helps us advance these efforts, with good progress continually being made.
We are actively involved with water education efforts, locally and nationally, to help ensure that future generations are poised to carefully manage – and value the importance of – our planet’s most precious resource.
For many years, we have supported a variety of water- related programs, educating children on the importance of water and watersheds. Since the beginning of this program in 1996, we have reached more than 25 million North American students.
● Bream Fishermen Association Education Projects Florida Panhandle ● Watershed Projects Brookie Buddies Maine
Crystal Springs Invasive Species Removal Zephyrhills, Florida Keep America Beautiful Cleanup Seedling Planting at Erin Spring Zephyrhills, Florida Wellington, Canada Cypress Springshed Stormwater Management Ponds Lovewell Pond Association Plant Survey Planting 20,000 Pine Seedlings Florida Fryeburg, Maine in the Big Cypress Watershed South Florida Ducks Unlimited Partnership Madison Blue Spring State Park Clean-Up Hawkins, Texas Madison Blue Spring, Florida Project WET, Southern Maine Children’s Water Festival, Envirothon Ferry Beach Ecology School Maine Volunteer Lake Monitoring Program Maine Southern Maine Auburn, Maine Ruby Mountain Springs Restoration Friends of Mill Creek Make a Splash with Project WET Chaffee County, Colorado Aberfoyle, Canada Crystal Springs Preserve, Florida Saco River Clean Up Great Suwannee River Cleanup Make a Splash with Project WET Fryeburg, Maine Madison Blue Spring, Florida Lee, Florida Salt Lick Creek Basin Clean-Up Gulf of Maine Research Institute Make a Splash with Project WET Red Boiling Springs, Tennessee Portland, Maine Mecosta, Michigan “Wood for Salmon” Project with Hollis Pine Tree Reforesting Project Make a Splash with Project WET The Nature Conservancy Hollis and York, Maine Red Boiling Springs, Tennessee Northern California
Hope Mountain Centre for Outdoor Living Mineola Nature Preserve Wekepeke Watershed Project Hope, British Columbia, Canada Mineola, Texas Sterling, Massachusetts
HydroMania Mousam Lake Watershed Grant Ward Brook Watershed Conservation Grant Allentown, Pennsylvania Acton/Shapleigh, Maine Fryeburg, Maine
Ice Mountain Stewardship Fund North Florida Springs Alliance Little Muskegon River, Michigan North Florida
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Educational Partnerships Inspire and Inform Millions
partnership case partnership case partnership case
Crystal Springs Preserve, Florida Gulf of Maine Research Institute, Crystal Springs, in rural Florida, is the Maine primary source spring for our Zephyrhills® In 2006, our Poland Spring® brand Natural Spring Water brand. Through our formed a partnership with the Gulf of unique partnership, the spring also serves Maine Research Institute (GMRI) that as a world-class environmental education supports LabVenture!, an immersive center that teaches thousands of students marine science program offering about the ecology of springs and the students the opportunity to act as importance of conservation. With 525 acres scientists for a day at a marine research of nearly pristine wilderness and learning facility. Through our continued support, facilities built with our contribution, Crystal nearly 50,000 Maine students have Springs Preserve offers free field trips and benefited from GMRI’s LabVenture! inspiring learning activities for students of program, which promotes science all ages, from all over the world. literacy and inspires Maine’s future workforce.
Mineola Nature Preserve, Texas The state-of-the-art Mineola Nature Preserve alongside East Texas’ Sabine River boasts 193 species of birds, wildlife, buffalo, longhorn cattle, a natural wetlands environment and numerous hiking trails. In 2011, our Ozarka® Natural Spring Water brand provided funds for a Pullen Pond – a constructed 2-acre pond – and comprehensive educational aquatic loop features, bringing even more life and educational opportunities to the Preserve.
partnership case
Project WET Educates Millions of Children about Water We continue to be the largest corporate sponsor of Project WET (Water Education for Teachers) in the U.S., Canada and around the world. Through our decade-long partnership, we have helped educate more than 25 million students and 200,000 teachers on water resource management, hydration and health, and environmental stewardship in the U.S. For example, in 2011 we helped Project WET launch DiscoverWater.org, an online teaching tool that brings important water lessons to life and encourages today’s children to be tomorrow’s responsible stewards of water resources. This innovative tool is aligned with National Science Education Standards and has been successfully field-tested with educators and children. 30 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
partnership case
More Partnerships: Raising Trout, Connecting to Wetlands and Science Literacy Other educational ventures include Brookie Buddies – inspired by Trout Unlimited’s Trout in the Classroom model – which allows students to raise trout from eggs to fingerlings while learning about water quality and ecosystem connectivity. In Canada, we partner with Hope Mountain Center for Outdoor Learning’s Young Stewards Program, which uses a hands-on approach to help grade-school students develop a personal connection to the wetlands surrounding the largest watershed in British Columbia. We are also exploring a partnership with a Canadian-based educational organization that supports science literacy, which would touch 60,000-75,000 children each year.
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Building Community Vitality with Our Employees
Our commitment to building community vitality starts with a positive work environment for our employees, which includes being a good employer that operates in an open and transparent manner. We create shared value in our communities through engagement with our employees and our communities to help address local needs and concerns.
32 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C Direct Production Facilities D Los Angeles, CA Lorton, VA Q H Livermore, CA Framingham, MA O T Phoenix, AZ Jersey City, NJ L R Hilliard, OH A G Retail Production Facilities E Houston, TX P F I B Woodridge, IL Guelph, ON Canada C M W D Lorton, VA Hope, BC Canada Q H EE AA BB J Framingham, MA Cabazon, CA O T S Jersey City, NJ Ontario, CA K Sacramento, CA L R U V G Retail Production Denver,Facilities CO P I N Guelph, ON CanadaZephyrhills, FL Z W M Hope, BC Canada Greenwood, IN EE X Hollis Center, ME AA J Cabazon, CA BB S Y King eld, ME CC Ontario, CA K hellos healthy hydrationPoland Spring, ME water responsibility communityU responsibility packaging responsibility progress on goals Sacramento, CA V DD Denver, CO Stanwood, MI N Zephyrhills, FL Breinigsville, PA Z Greenwood, IN Red Boiling Springs, TN X Hollis Center, ME Dallas, TX Y King eld, ME Hawkins, TX CC Pasadena, TX Poland Spring, ME DD Stanwood, MI Lorton, VA Breinigsville, PA Carlisle, OH Red Boiling Springs, TN Commitment toDallas, TXEmployeesAdministrative O ces Hawkins, TX Stamford, CT Pasadena, TX Guelph, ON, Canada Lorton, VA Raynham, MA Carlisle, OH Coppell, TX goal – Be a preferredBrea, CA local employer and contribute to local economic vitality. All of our factories Administrative O ces Stamford, CT Guelph, ON, Canada are third-party Raynham, MA Target – CreateCoppell, TX an enriching work environment that fosters employee engagement, Brea, CA safety, health and wellness, diversity, career development, community involvement and certified to the OHSAS volunteerism, as well as providing competitive compensation and benefits. (Occupational
Creating a Culture of Safety: Our Journey to Zero Health and Safety Our goal includes providing a safe and healthy work environment for each of our employees. Management This includes infusing our culture with the importance of safety. Since 2006 we have made continuous improvements in our safety performance and strive to be among Systems) standard the top performers in the food and beverage industry. 18001:2007.
All of our factories are third-party certified to the OHSAS (Occupational Health and Safety Management Systems) standard 18001:2007. Compliance with regulatory standards comprises the foundation of the OHSAS standard, along with proper incident investigation, determination of incident root cause and appropriate corrective actions to prevent future recurrence.
We focus on the prevention of injury using a problem identification system we call Leading Indicators. This is an effective risk management approach, which helps to solve problems before they occur.
Safe Behavior Observations Our ultimate goal is for our employees to go home in the same condition in which they came to work. To make this goal a reality, regular safety observations are conducted as employees go about their work. Feedback is given and received in a spirit of mutual cooperation and a desire to focus on continuous improvement of safety by adhering to established safe work practices. People have a tendency to drift from desired safety practices. Feedback sessions help employees understand why this drift can be dangerous and allow open dialogue about recommended safety practices.
case study
Driver Safety Driver safety is critical. Driver selection, training and supervision are carefully monitored, and we now use technology to enhance our driver safety efforts. Some of this technology also will improve environmental performance.
Telematics technology is similar to the black boxes used on airplanes, remotely collecting data on how vehicles are being driven and their engine performance. In 2012, NWNA conducted a yearlong pilot on 115 delivery trucks. The tests showed that telematics encourages safer driving behaviors. We plan to install telematics systems across our whole fleet of 1,600 delivery trucks in 2013.
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Health and Wellness Health and wellness is a major priority in our workplace today. During the past two years we’ve launched HealthWorks, an initiative to encourage employees to make healthy choices at work and at home. We continue to see participation in the program grow – employees are walking at lunch, joining in exercise classes on-site and taking advantage of discounts for preventative screenings, among many other healthy behaviors.
HealthWorks is an initiative to encourage employees to make healthy choices at work and at home.
Compensation and Benefits At NWNA, we maintain a strong focus on ensuring that our pay and benefits programs are competitive The specific with local employment standards and meet the needs elements of Work-Life of our workforce. This is especially important for Nestlé’s Total Environment Fixed Pay many of the rural communities in which we operate, Reward strategy where we’ve heard from our employees that our allow us to compensation and benefits are better than most attract, retain other local employers, and thus bolster local economic and engage our stability. We have fulfilled our 2010 target in this Total Reward area, and we will continue to regularly monitor and employees. benchmark our pay and benefits programs to ensure Personal Growth and Variable Pay this goal continues to be met. Development Diversity and Inclusion During the past two years, we have placed an even Employee higher priority on building a formal diversity and Benefits inclusion strategy and structure. Our Aspirations and Beliefs state that every employee should feel valued and understand how his or her contributions impact our business goals. In addition, we believe that the company must uphold employment standards and practices that ensure equal opportunity and achieve a diverse workforce that represents both our consumers and the communities where we work and live.
In 2011, we created the Women’s Leadership Steering Committee, a cross-functional group that brings women together to identify the barriers to gender equity in the workplace. This group acts Aspirations and as an important advisory group to senior leaders as we examine ways to promote the advancement Beliefs: Honesty, of women to key positions within the organization and remove potential barriers to employment satisfaction and career growth. Integrity, Teamwork and Respect for Employee Engagement Our commitment to our communities begins with our employees because they are the key to our Each Other, the success and their engagement is essential. We are rolling out Nestlé Continuous Excellence (NCE), Environment and Our a global improvement initiative that enhances employee engagement by involving employees in problem solving at all levels of the business. Supporting practices that empower our employees Communities. increases operating efficiency and reduces waste through greater innovation. We survey employees to gather feedback, assess engagement and identify areas for improvement. Where NCE is underway, employees at all levels feel empowered to contribute to make a difference.
34 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D hellos healthy hydrationLorton, VA water responsibility communityQ H responsibility packaging responsibility progress on goals Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Direct Production Cabazon,Facilities CA BB S Ontario, CA Commitment toLos Angeles,Communities CA K U Livermore, CA Sacramento, CA V Denver, CO Phoenix, AZ N Zephyrhills, FL Z Hilliard, OH A Houston, TX Greenwood, IN E X F B Transparency and CommunityWoodridge, IL Hollis Center, Engagement ME C D CC Y Lorton, VA King eld, ME Q H Poland Spring, ME Our work takes placeFramingham, in communities, MA and it depends onO them.T Through ourDD plants, offices, Jersey City, NJ Stanwood, MI Breinigsville, PA L R G distribution branches andRetail Production spring FacilitiesRed Boiling source Springs, TN sites, we are connected to more than 130 communities P I Guelph, ON CanadaDallas, TX W M across North America.Hope, We BC Canada know Hawkins, TX that two-way communication is EEat the heart of productive Cabazon, CA Pasadena, TX AA BB J Lorton, VA S Ontario, CA K Carlisle, OH U community relationships:Sacramento, listening CA to stakeholders and respondingV to feedback by sharing the Denver, CO N intentions of and informationZephyrhills, FL Administrative about O ces our company. Z Greenwood, IN Stamford, CT X Hollis Center, ME Guelph, ON, Canada Y King eld, ME Raynham, MA CC Coppell, TX Poland Spring, ME DD goal – OperateStanwood, MI transparentlyBrea, CA and engage with our local communities. Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX We set this goal to fosterPasadena, TXstrong relationships with our community stakeholders. By listening to Lorton, VA and understanding theirCarlisle, OHneeds, we discover opportunities to partner and create shared value. Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Target – RespondBrea, CA to local community concerns and increase understanding of our operations by engaging with members of local communities.
Siting and Community Commitment Framework In 2011, we launched our community siting framework, which outlines how we work with In Cascade Locks, Oregon, our engagement with local academic and nonprofit communities where we seek to source spring water. stakeholders led to a scientific study. The results of the study concluded that The framework codifies the best practices learned over time by engaging with community slight changes in water temperature would stakeholders. It is a checklist of sorts meant to ensure that we approach all siting projects by not adversely impact coldwater trout and listening to and communicating with stakeholders, as well as sharing with new communities salmon habitats along the Columbia River. what we commit to do throughout the siting process and thereafter.
For example, this two-way approach is proving helpful in Cascade Locks, Oregon, where the siting process is underway for a potential new bottling facility. Following this framework, we engaged local academic and nonprofit stakeholders who provided feedback that led to a scientificstudy , which helped address concerns about water temperature. The results concluded that slight changes in water temperature would not adversely impact coldwater trout and salmon habitats along the Columbia River. This data enabled us to respond reassuringly to questions from the community and ease the initial concerns of local stakeholders.
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Local Stakeholder Engagement Sometimes there are questions about what we do and how we do it. To ensure that we are operating transparently and local needs are being met, we encourage employees to get involved in the community. Their involvement increases our understanding of community needs and concerns, and helps answer questions about our operations. Of course, many of our employees do this naturally, since they are linked to the community through neighbors, friends and family. Because much of our operations are technical, we’ve developed training for our employee spokespersons that provides the most up-to-date information, boosts their business operations knowledge and prepares them for reaching out to the community.
Opening Our Facilities to the Community We have invited community members to tour our facilities and participate in our events so they understand the nature of our business, how we operate and our effect on the community – from the number of people we employ, to the water we use, and how we manage water sources. We’ve formalized this engagement by hosting regional open houses at our facilities.
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Open House Hollis, Maine
“Nestlé Waters brings
Direct Production Facilities a clean, safe industry to Los Angeles, CA Livermore, CA Phoenix, AZ East Texas and opportunity Hilliard, OH A Houston, TX E F B Woodridge, IL C D for hundreds of our Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R neighbors and friends in G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE this area. They have AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V donated bottled water Denver, CO N Zephyrhills, FL Z Greenwood, IN X for local events, financially Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD supported local charities, Stanwood, MI Breinigsville, PA Red Boiling Springs, TN businesses and schools, Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA and they are responsive Carlisle, OH
Administrative O ces in times of need. We are Stamford, CT Guelph, ON, Canada Raynham, MA grateful for the good-paying Coppell, TX Target – HoldBrea, CA an open house at facilities in each of our brand regions by 2015. jobs they provide and their commitment and In 2012, we hosted a community open house at our facility in Hope, British Columbia, that enabled local community members to meet employees, tour the plant, ask questions, provide involvement in our feedback and enjoy a community barbeque. The Hope open house attracted nearly 500 community.” community members. – Texas State Representative Bryan Hughes, District 5 On the other side of the continent, more than 2,000 community members attended a similar Mineola, Texas open house in Hollis, Maine. Click here to watch a video of the Hollis open house.
We are expanding this initiative to encourage dialogue around our work and contributions.
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Creating Shared ValueDirect Productionthrough Facilities Volunteerism Los Angeles, CA Livermore, CA NWNA has a rich traditionPhoenix, AZ of supporting employee involvement in the community through an Hilliard, OH A Houston, TX E active volunteer program to link employee interests to the needsF of the Bcommunity. Volunteers Woodridge, IL C D Lorton, VA Q H can participate in company-sponsoredFramingham, MA events or can helpO buildT mutually beneficial relationships Jersey City, NJ L R with local organizations. G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA One example of creating shared value for our communities is our 20-yearK community partnership U Sacramento, CA V Denver, CO N with the Southern CaliforniaZephyrhills, FL Mountains Foundation (SCMF). A highlightZ of our partnership is Greenwood, IN X Hollis Center, ME our work with the SCMF Urban Conservation Corps – a workforce Ydevelopment program that King eld, ME CC Poland Spring, ME DD helps young people buildStanwood, MIskills by participating in stewardship projects. This partnership was Breinigsville, PA launched by our employeeRed Boiling Springs, experts TN in natural resource management who saw a natural fit Dallas, TX Hawkins, TX between the skills promotedPasadena, TX by this program and the needs of our workforce. NWNA supports Lorton, VA this program throughCarlisle, our OH volunteers who serve as mentors and by assisting with project Administrative O ces development. Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Target – IncreaseBrea, CA the number of volunteer hours 20 percent by 2014.
In 2011, we aligned our giving and volunteerism with our key focus areas – sustainability, water and health. We launched our volunteer program, Water Works, in June 2011 powered by a team of volunteer coordinators from our plants and branches, who plan events and organize employees. We added an online volunteer registration site in 2012, which enables employees to find local volunteer opportunities.
To further raise awareness of volunteering, we launched the first-ever companywide volunteer month in September 2012. More than 250 employees from 20 locations got involved, volunteering 1,492 hours and forging relationships with new community partners across the country.
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Packaging Responsibility and Operational Sustainability
At Nestlé Waters North America, our focus on sustainability is at the heart of our commitment to Creating Shared Value.
We continuously strive to optimize our environmental footprint through time-tested methods and by researching and piloting innovative approaches to energy and waste reduction that eventually can be applied on a larger scale. We have enjoyed many successes over the years in improving our own performance, but realize our reductions alone will not solve our shared sustainability challenges. So, we are sharing our learning, engaging constructively in public policy and empowering our employees and partners to actively magnify our contribution.
39 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y hellos healthy hydrationKing eld, ME water responsibility communityCC responsibility packaging responsibility progress on goals Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA Carlisle, OH Energy Efficiency andAdministrative O cesRenewable Energy Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Goal – ContinuouslyBrea, CA reduce our carbon intensity, aiming for 100 percent renewable energy.
We work hard to reduce the energy we use and are continuously raising the bar with new targets for improvement. Since 2007, we have reduced our emissions per liter produced by 19.2 percent across our value chain based on our life cycle analysis.
Greenhouse Gas Emissions – Full Value Chain* 250.0 Total 200.0
Direct Production Facilities Los Angeles, CA Livermore, CA 150.0 Phoenix, AZ Hilliard, OH A Reduced Houston, TX E F B Woodridge, IL C D Lorton, VA Q H 100.0 Framingham, MA O T carbon Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada eq/liter produced W M
2 Hope, BC Canada EE J intensity AA 50.0 Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z by nearly X g C O Greenwood, IN Hollis Center, ME 0.0 Y King eld, ME CC Poland 2007Spring, ME 2008 2009 2010 DD 2011 Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX *2012 numbers are not yet available Hawkins, TX Pasadena, TX % Lorton, VA 20 Carlisle, OH
Administrative O ces Reducing Our CarbonStamford, Intensity CT Guelph, ON, Canada Raynham, MA Coppell, TX Target– ReduceBrea, CA carbon intensity by 20 percent across the NWNA value chain by 2013.
Since first conducting our inventory of greenhouse gas emissions, we have taken numerous steps to reduce our carbon intensity – the amount of CO2 emissions relative to production volume.
In 2011, we nearly met our 2013 target due to our reduction efforts, including: • Lightweighting our bottles and all plastic packaging, including our sparkling water brands in 2012. Energy Consumption and Efficiency • Operating 10 U.S. Green Building Council LEED-certified facilities, covering 3.7 million square feet, 896 and diverting 22,000 tons of waste 81 material from landfills annually. This includes nine production facilities and 77 863 our headquarters building in Stamford, Connecticut, which was awarded LEED Gold certification in 837 2011. Click here for more information 826 about NWNA LEED-certified facilities. 71 • Using hydrogen fuel cell forklifts and Energy Star® coolers at our 68 manufacturing facilities. 66 • Producing 98 percent of our single-serve 722 PET bottles on-site at our bottling facilities and saving 6.6 million gallons of fuel per year. • Piloting an energy-efficient lighting 2008 2009 2010 2011 2012 program in 2012 at one of our Direct delivery facilities located in North Total Energy Consumption (MkWh) Energy Intensity (kWh/1,000 L) Haven, Connecticut. Plans for expanding the pilot are underway. • Using light-saving measures and Although our production volume continues to rise, our energy consumption has decreased since 2008. heat energy recovery in our plants. 40 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
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Improving Energy Performance One Facility at a Time One example of how we are retrofitting facilities to help shrink our energy footprint is our Direct delivery facility in North Haven, Connecticut. In the fall of 2011, we upgraded lighting fixtures to reduce our GHG emissions, save on electricity costs and reduce air pollution. The pilot project was successful, avoiding more than 70,000
pounds of CO2 emissions and saving approximately 100,000 kWh of electricity each year. This is equivalent to saving 51,603 pounds of coal and 6,637 gallons of oil, and providing nearly 13 homes with electricity for a We upgraded lighting fixtures year. While the impacts may to reduce our GHG emissions, seem small, we hope save on electricity costs and to expand the lighting reduce air pollution. retrofit program, beginning with our Somerset, New Jersey facility, and later to The pilot project saved some of our other 60 Direct approximately 100,000 kWh delivery facilities. of electricity each year.
Reducing Our Fleet Emissions We have an environmental and financial incentive to make our fleet as efficient as possible. The fewer miles we drive, the less fuel we use, which cuts our carbon emissions and operational costs. In operations, we are continually working to optimize our delivery routes by using the latest technology to reduce shipping distances. Through the installation of a telematics system, reduction in truck engine idle time could save as much as $1 million in fuel costs and approximately
295 tons of CO2 emissions. We plan to install telematics across our fleet of 1,600 delivery trucks in 2013.
By implementing a regional distribution approach for our domestic retail bottled water brands, we now transport our water an average of just 350 miles. Going forward, we will focus on ways we can further reduce our shipping miles and emissions.
As we aim for 100 percent renewable energy in our operations, we continue to seek more ways to reduce our transportation emissions. In 2008, we set a goal to upgrade 25 percent of our Direct delivery fleet to zero emission vehicles by 2020. While current technology doesn’t allow us to feasibly incorporate a large number of zero emission electric vehicles into our fleet, we have been testing and piloting alternative vehicles that have a lower carbon footprint. In 2012, we purchased 18 advanced diesel vehicles that are specially designed to deliver very low emissions. Also in 2012, we purchased two additional hybrid vehicles, which are demonstrating a 25 to 30 percent increase in fuel economy. Our intention is to push for fleet emissions reductions, and we will work to develop a comprehensive strategy to do this and develop a new goal for our 2014 report.
41 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V hellos healthy hydrationDenver, CO water responsibility community responsibility packaging responsibility progress on goals N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Advancing Our Shift Redto Boiling Renewable Springs, TN Energy Dallas, TX Hawkins, TX In 2010, we set a targetPasadena, to TX identify short- and long-term opportunities for deploying renewable Lorton, VA energy sources in our Carlisle,operations. OH Based on our findings, we will develop a renewable energy
Administrative O ces plan to advance our shiftStamford, CTto renewables, where feasible. Guelph, ON, Canada Raynham, MA Coppell, TX Target– ImplementBrea, CA aspects of our renewable energy plan.
In the fourth quarter of 2012, we completed the installation of two wind turbines at our Cabazon, California plant. Once the turbines – which produce an average of 12,900,000 kWh annually – reach full capacity, we expect they will generate up to 30 percent of the plant’s total energy – enough to power 1,100 U.S. homes.
In 2012, we also began working with the Rocky Mountain Institute to develop a renewable energy road map for our company. It will help us identify opportunities to use renewable energy – such as wind, solar and biomass – at each of our facilities across the country. In addition, the road map will help us overcome the financial hurdles that limit the incorporation of renewable energy today. Two recently installed wind turbines will provide up to 30 percent of the energy for our Cabazon, California plant. See the wind turbines in action here.
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Packaging Innovation and Recycling
We constantly evaluate our products and packaging designs to improve their environmental performance and use closed-loop processes. Innovating around our packaging improves our efficiency from an operational standpoint, saves virgin material and helps safeguard against volatile commodity prices. We continuously explore ways We approach packaging innovation in two ways. The first is to continuously explore ways to lightweight our bottles and reduce packaging. Second, we incorporate more recycled PET to lightweight plastic – or rPET – into our bottles while reducing our dependence on virgin PET. Critical to using more rPET in our bottles is ensuring adequate availability, as demand for rPET currently our bottles exceeds supply. and reduce While we believe PET and rPET are the most sustainable and viable materials of choice, we packaging. continue to explore other packaging materials produced from renewable resources. As we research alternatives, our main focus is ensuring sustainability throughout our supply chain and identifying materials that will help us continue to reduce our environmental footprint.
Reuse also plays a critical role in our sustainable packaging efforts. Our 5-gallon bottle is the leading returnable bottle in the industry, and approximately 90 percent are now made with PET. We clean and refill our 3- and 5-gallon bottles 20 to 25 times, after which they are recycled.
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Lightweighting Our Packaging During the past 18 years, we have reduced the PET plastic content of our half-liter water bottles by 60 percent, saving more than 3 billion pounds of plastic. We are currently working on plans to lightweight our bottles again.
0.5 Liter Weight Reduction
25 grams 24
20 grams 19 17.5
15 grams 14.6
10.5 10 grams 9.5
5 grams
1990 1995 2000 2005 2010 2013
We are also in the initial stages of lightweighting our regional sparkling water brand bottles by converting to a new finish, beginning with our Poland Spring® brand. We estimate the conversion will result in a 6 percent weight reduction for our half-liter bottles and a 15 percent reduction in the weight of our caps, resulting in a 4 to 6 percent reduction in energy use. Our sparkling water bottles will have a slightly heavier finish than our Eco-Shape® bottles to withstand the pressure created by carbonation. Since 2010, we Additional Packaging Innovation Efforts We continue to streamline our packaging corrugate, labels, cardboard and shrink wrap, while have reduced our maintaining structural safety and quality. We also are packaging our most popular sizes using use of corrugated pads – corrugated trays without sides – and using 21 lb. paper, down from the industry standard of 26 lbs. In select facilities, we’ve even moved to offset-stack cases packaged without material by nearly any corrugated cardboard – case wrap only. These efforts are producing tremendous reductions and savings: Since 2010, we have reduced our use of corrugated material by nearly 25,000 tons 25,000 tons or 25%. or 25 percent. Moving forward, we plan to reduce the case height of all non-half-liter bottles, shorten our case wrap and eliminate corrugate in case packages wherever practicable. We also plan to reduce the size of our 8 oz. label, which will cut our material use and allow for greater operational efficiency in our factories.
Since 2007, we’ve reduced our packaging by nearly a million tons.
PET PET PET CAPS PET CARDBOARD FILM CAPS PET CARDBOARD FILM CAPS PET CARDBOARD FILM CAPS PET CARDBOARD FILM CAPS PET CARDBOARD FILM CAPS PET CARDBOARD PAPER FILM 45,000 tons 900,000 tons 25,000 tons 300 tons 83,500 tons
44 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX hellos healthy hydrationPasadena, TX water responsibility community responsibility packaging responsibility progress on goals Lorton, VA Carlisle, OH
Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Target – ByCoppell, 2020, TX develop the next generation of our recyclable bottles made from Brea, CA post-consumer recycled or renewable materials with a lighter footprint.
Since 2010, we have made good progress toward reaching our target of developing the next generation of lighter, 100 percent post-consumer or renewable bottles. However, the demand for rPET material is greater today than the current available supply. There simply isn’t enough rPET out there – or available at an affordable price – to use it solely as material for our bottles. Instead, we have focused recent efforts on key product launches of new rPET water brands, incorporating 50 percent rPET into the bottles. Each rPET brand raises awareness about the benefits of recycled plastic and encourages more recycling.
Our rPET Bottled Water Brands: Supporting the Market for Recycled Materials
rPET Bottled Water Brand Campaign Availability
0.5 L Deer Park® 50% rPET Recycling Works! Mobile Tour (2011) Washington, D.C.
700 ml resource® 50% rPET Electrolytenment (2012) Select U.S. markets
0.5 L Arrowhead® 50% rPET Recycling is a Beautiful Thing (2012) California
0.5 L Montclair® 100% rPET Canada
Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA Carlisle, OH
A Win for the Environment,Administrative a Win O ces for Business: Creating Demand for Recycled Materials Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Goal – Support the Brea,market CA for recycled materials by continuing to increase the use of recycled content in our packaging, as feasible.
Recapturing packaging makes environmental sense and makes business sense. The global competition for virgin commodities is increasing steadily. A greater supply of domestic high-quality recycled materials protects us from the volatility of global markets.
45 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K hellos healthy hydration water responsibility communityU responsibility packaging responsibility progress on goals Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Improving Recycling:Breinigsville, Our PA Path to Zero Waste Red Boiling Springs, TN Dallas, TX Part of our companywideHawkins, TX approach to the Nestlé Continuous Excellence (NCE) program is to Pasadena, TX achieve a zero-waste Lorton,future. VA Increasing recycling in our operations and throughout our supply We hope to recycle Carlisle, OH chain is one of the best ways to accomplish this. Administrative O ces 97% of the solid Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX waste generated in Target – ByBrea, 2015, CA recycle 97 percent of the solid waste generated in our administrative offices, Direct delivery branches and plant facilities. our administrative
Recycling Initiatives offices, Direct delivery To work toward meeting this target, we have continued to improve our in-house recycling branches and plant process and introduce new initiatives since 2010, focusing on: • Recycling plastic, boxes, cardboard, shrink wrap and pallet strapping at our operational facilities. facilities. • Recycling our 3- and 5-gallon containers and repurposing them into new products once they reach end of life, typically after 20-25 uses. • Becoming an e-Stewards® Certified Recycler through the e-Stewards Initiative and recycling e-waste at our administrative offices. • Employing the Nestlé certified green IT program at our headquarters to reduce our footprint. • Participating in the EPA’s Safety-Kleen Program in our HOD fleet shops.
Our Direct delivery facilities have many streams of waste that we recycle, including truck/auto parts, used engine oil, light bulbs, shrink wrap, cardboard, plastics, glass and other packaging materials. We are in the process of compiling and streamlining the data from our 60 facilities to look for best practices and make further improvements.
Results As an e-Stewards Certified Recycler, which we achieved through a Basel Action Network e-waste project that prevents human and environmental harm from toxic materials in electronics, we recycle our computer hardware, toner cartridges and other supplies. In 2012, we recycled more than 7,500 pounds of e-waste, diverting the equivalent of 28 refrigerators of toxic waste from landfills.
Recycling Rate and Total Waste at Our Manufacturing Facilities In 2012, we recycled more than 7,500 pounds of e-waste, 98% 97% 97% 3,164 diverting the equivalent of 28 94% refrigerators of toxic waste from landfills.
1,650 84%
798 696 642
2008 2009 2010 2011 2012
Waste (ton U.S.) Recycling Rate
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Creating Shared Value by Extending Packaging Responsibility
At NWNA, we believe recycling is the foundation of a sustainable society. When done right, it reduces litter in our communities, helps protect the planet by conserving natural resources and reducing greenhouse gas emissions, and saves businesses and organizations money by reducing energy and raw material costs. We can create shared value by advancing policies that expand 29% recycling for all packaging to help capture every beverage container produced. recycled
Today, the recycling systems in North America are failing to keep pace with supply and demand and struggling to meet the needs of the marketplace. In the U.S., some states are doing a better job than others, but too often, outdated collection methods discourage consumer participation, pose risks to collection workers, cost too much and send too many valuable materials to landfills. According to the Environmental Protection Agency, only 34 percent of municipal solid waste (MSW) is currently being recycled,8 and recycling rates for polyethylene terephthalate (PET) beverage Recycling rates for containers have stalled at a paltry 29 percent.9 As You Sow, a shareholder advocacy organization, polyethylene terephthalate estimated the value of discarded post-consumer packaging being buried in U.S. landfills – valuable (PET) beverage containers material like aluminum, cardboard and PET – at $11.4 billion in 2010.10 have stalled at a paltry 29 percent.8 8 United States. Environmental Protection Agency. Solid Waste and Emergency Response (5306P). “Municipal Solid Waste Generation, Recycling, and Disposal in the United States: Facts and Figures for 2010,” EPA-530-F-11-005. December 2011.
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Direct Producer Responsibility In 2011, our Poland Spring® Direct home and office delivery business piloted a recycling program on Long Island, New York, where we not only dropped off products for customers, but also picked up our single-serve, post-consumer containers for recycling, filling the otherwise empty trucks. The program has been very successful – and is key to our goal of capturing and reusing every beverage container produced so we can include more recycled plastic in our bottles. Each month, we collect thousands of containers from our customers, which we then deliver to a partner recycler to be processed into rPET and eventually incorporated back into our bottles. Moving forward, we plan to expand the program to the rest of New York and to adjacent Connecticut, impacting nearly 135,000 residential customers and generating an estimated 210,000 pounds of rPET for use in our bottles.
11“How Corporate America Might Just Save Recycling,” Amy Westervelt, 4/27/12, Forbes
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Reinventing Recycling The most significant effort we’ve undertaken in our journey to advance recycling in the U.S. is “Recycling stands at to deepen our commitment to Extended Producer Responsibility (EPR) for packaging and printed the nexus point of paper, a model that would bring the financial responsibility of recycling to the industry, as well as several critical issues increase access to curbside recycling and recycling away from home – not just for bottles, but for all product packaging. of our time, including business competition In the past 10 years, more than 70 EPR laws have been passed in 32 states, covering products for increasingly scarce such as mercury lamps, thermostats, mobile phones, batteries, paint, carpet, pesticide containers, electronics, fluorescent lamps and automobile switches. EPR models for packaging are already resources, shrinking in place in many countries like Germany, France, the Netherlands and certain parts of Canada, municipal and state where they have successfully increased recovery rates for packaging. budgets, climate change Under an EPR system, brand owners of packaging and printed paper pay for the cost of recycling and unemployment.” their products, instead of local taxpayers. Brand owners – usually through an industry-run – Michael Washburn, stewardship organization – contract with haulers or cities to collect and process packaging and Vice President, Sustainability paper. EPR would increase recycling rates, reduce government spending and use private sector efficiencies to reduce the costs of recycling.
Current System for Packaging Under the current system, the consumer pays twice – once for the product and once for disposal/recycling.
Disposal
Product and Packaging Packaging $11.4 billion wasted due to disposal of recyclable materials. Price of Handling
Price of Product Packaging
Producer Consumer Recycling
EPR System for Packaging Under EPR, the cost of recycling and disposal services are built into product cost, with ultimate responsibility shifted to the producer.
Product and Packaging Recycled Packaging
Price of Product Producer Recycled Packaging
Price of Handling
Consumer Packaging Packaging
Recycling System for All Packaging
49 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD hellos healthy hydrationStanwood, MI water responsibility community responsibility packaging responsibility progress on goals Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA Carlisle, OH
Expanding EPR in CanadaAdministrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Target – ThroughoutBrea, CA Canada, complete one EPR pilot project each year through 2014 to encourage establishment of EPR as a policy in each province.
In 2010, we supported the launch of an EPR program in Manitoba. Known as the “hybrid recycling model,” it features four key elements: curbside recycling, public spaces recycling, commercial/ institutional recycling and continuous public education.
An EPR program in Manitoba, known as the “hybrid recycling model,” features four key elements: curbside recycling, public spaces recycling, commercial/institutional recycling and continuous public education.
The early results of this program are encouraging. After just one year, the province’s diversion program in Portage la Prairie experienced a 95 percent diversion rate – the rate of beverage containers getting out of the waste stream and into the recycling stream – in parks, arenas and Direct Production Facilities Under an EPR system, brand streetscapes. NWNA Losis Angeles, hoping CA to use learnings from this program to inform EPR efforts in the Livermore, CA Phoenix, AZ owners of packaging and U.S. Building on its success,Hilliard, OH we will strive to complete one EPR pilot projectA per year in Canada Houston, TX E F B printed paper pay for the Woodridge, IL C through 2014 to encourage the establishment of EPR as provincial Dpolicy. Lorton, VA Q H Framingham, MA O T cost of recycling their Jersey City, NJ L R G Retail Production Facilities products instead of local Working with Partners P I Guelph, ON Canada W M Hope, BC Canada EE AA J taxpayers. In 2011, we took partCabazon, in CAa dialogue, which convenedBB moreS than 30 organizations to determine Ontario, CA K U a common vision for Sacramento,an EPR CA program that could work in U.S.V states. Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y As a result, we now areKing eld, engaging ME with a broad range of stakeholderCC groups, including consumer Poland Spring, ME DD Stanwood, MI product companies, beverageBreinigsville, PA companies, various trade associations, commodity groups, private Red Boiling Springs, TN haulers, municipalities,Dallas, state TX legislatures, environmental NGOs, grocery retailers, the forest Hawkins, TX Pasadena, TX product industry, packagingLorton, VA manufacturers and others. Our goal is to build on this broad coalition of partners toCarlisle, support OH the introduction of EPR legislation. Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Target – WorkCoppell, TX with partners to have EPR legislation introduced and considered for Brea, CA passage in at least two states by 2014.
We have become deeply involved with Recycling Reinvented, a U.S.-based nonprofit organization committed to advancingDirect Production recycling Facilities rates through an EPR model that would require brand Los Angeles, CA Livermore, CA owners to develop andPhoenix, fund AZ effective recycling programs. We are directly supporting Recycling Hilliard, OH A Houston, TX E Reinvented’s efforts, both through funding and the leadership of F our chairman,B Kim Jeffery, Woodridge, IL C D Lorton, VA Q H as a member of the organization’sFramingham, MA board. Recycling ReinventedO T is striving to introduce EPR Jersey City, NJ L R legislation in six U.S. states in 2013. Targets include several states withoutG deposit laws that Retail Production Facilities P I Guelph, ON Canada W M have robust curbside Hope,recycling BC Canada in their cities now and reasonableEE distribution of recycling AA J Cabazon, CA BB S systems in rural areas.Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME In preparation for this legislative effort – and to help dispel misconceptionsY about EPR – we King eld, ME CC Poland Spring, ME DD plan to support RecyclingStanwood, MI Reinvented and our other partners in 2013 with research studies Breinigsville, PA to help us define andRed Boilingdemonstrate Springs, TN the tangible economic benefits of EPR. These studies will Dallas, TX Hawkins, TX examine how EPR, ledPasadena, by TX industry, will impact household expenditures for recycling, affect Lorton, VA municipal tax burdensCarlisle, and OH change the amount of material captured in curbside and public space
Administrative O ces recycling programs inStamford, several CT representative states. Guelph, ON, Canada Raynham, MA Coppell, TX Target – DefineBrea, CA economic benefits of EPR through research studies by 2013. Kim Jeffery and Robert F. Kennedy Jr. discuss the benefits of EPR at the Recycling Reinvented, in partnership with NWNA, issued a request for proposals to qualified 23rd annual SRI (Sustainable, consulting firms and research companies in December 2012. A third-party research entity was Responsible, Impact Investing) selected and the work was commissioned in the first quarter of 2013, with results due by the Conference (October 2012) end of the year.
50 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
Progress on 2008 Goals
In 2008, we established 28 goals to advance our citizenship initiatives and drive performance. We’ve made good progress on these goals, achieving the majority of them. Our goals are evolutionary, and thus we also report in this section on the updates to them, progress in meeting them and their related targets. For more background on all 28 goals, please see the Progress on 2008 Goals section of our website.
51 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA Carlisle, OH
Administrative O ces Stamford, CT Not associated with an NWNA source. Guelph, ON, Canada Raynham, MA Coppell, TX Goal – Refine processBrea, CA for managing and monitoring our spring sites; make it publicly available by 2011.
We’ve refined our long-term monitoring processes used by our Natural Resource Managers, focusing on four key elements: water recharge, water levels, water flows and water use. The sites are also visited and observed regularly, and studies monitor the long-term health of the habitats around our springs. For more information, please see the Building Community Vitality with Our Employees and Water Responsibility sections.
52 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA Carlisle, OH
Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Goal – Convert remainderBrea, CA of our virgin PET bottles to antimony-free resin by 2011.
Consumer health and product safety are non-negotiable at Nestlé Waters North America. NWNA rigorously tests PET resins before they are used in the manufacture of our bottles. We are committed to ensuring that our products meet or exceed all FDA and EPA regulations for bottled and drinking water at the local and federal level. Our products and packaging are rigorously controlled and regularly tested to ensure the highest quality standards.
Direct Production Facilities We began the shift to antimony-freeLos Angeles, CA PET resin prior to 2010 and reported progress in our last Livermore, CA Phoenix, AZ Corporate Citizenship Report.Hilliard, Though OH we’ve made progress – 31 percent of ourA contracted Houston, TX E F B Woodridge, IL C supply of virgin resin was antimony-free at the end of 2012 – we have furtherD to go to achieve Lorton, VA Q H Framingham, MA O T this goal. This is because of theJersey City,limited NJ availability of antimony-free resin and because NWNA L R G Retail Production Facilities alone doesn’t create enough demand for suppliers to produceP more ofI this resin. We continue to Guelph, ON Canada W M Hope, BC Canada EE AA J pursue virgin antimony-free resinCabazon, CA and advance strict quality BBguidelinesS for our suppliers. Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Antimony is an element foundGreenwood, in theIN Earth’s crust. It is used in trace amountsX as a catalyst in the Hollis Center, ME Y production of plastic PET (polyethyleneKing eld, ME terephthalate). Antimony is stableCC and safe in this form, Poland Spring, ME DD Stanwood, MI but in extreme conditions, a Breinigsville,minimal PA amount of antimony may leach from PET bottles into water. Red Boiling Springs, TN These levels are well below safeDallas, TX limits set by regulatory authorities and do not pose a health risk Hawkins, TX Pasadena, TX to consumers. Lorton, VA Carlisle, OH
Administrative O ces Our goal is to continue Stamford, CT Guelph, ON, Canada educating and encouraging Raynham, MA Goal – CollaborateCoppell, with TX partners to reduce average caloric intake to levels Brea, CA North Americans to lower recommended by Beverage Guidance Panel by 2018. their caloric intake from beverages. In 2010, we reframed this goal to be an ongoing target focused on consumer education about making informed beverage choices. As currently restated, we plan to continue educating and encouraging North Americans to lower their caloric intake from beverages. Our progress is discussed in Water as Healthy Hydration. 53 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN hellos healthy hydrationDallas, TX water responsibility community responsibility packaging responsibility progress on goals Hawkins, TX Pasadena, TX Lorton,Direct Production VA Facilities Carlisle,Los Angeles, OH CA Livermore, CA AdministrativePhoenix, AZ O ces Stamford,Hilliard, OH CT A E Guelph,Houston, ON, TX Canada F B Woodridge, IL C Goal – IntroduceRaynham, a zero-emissions MA HOD (Home, Office, Direct)D and service Coppell,Lorton, VA TX Q H Brea,Framingham, CA MA O T center delivery vehicleJersey City,by NJ 2015; upgrade 25 percent of these vehicles to zero emissions L R G Retail Production Facilities by 2020. P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U To date, we have achieved ourSacramento, 2015 CA goal with our purchase of a small,V limited-capacity, Denver, CO N Zephyrhills, FL Z zero-emissions electric vehicle,Greenwood, operating IN from our Mercado del AguaX store in the Bronx, New HollisDirect Center,Production ME Facilities Y York. We have been workingKing eld,Los to Angeles, identifyME CA other technologies that can helpCC us move 25 percent PolandLivermore, Spring, CA ME DD Stanwood,Phoenix, AZ MI of our Direct fleet to zero emissionsBreinigsville,Hilliard, OH PA by 2020, but currently the feasibility of thisA technology RedHouston, Boiling TX Springs, TN E F B Dallas,Woodridge, TX IL C advancing to meet our needs seems unlikely. Therefore, we are exploring alternativeD fuel Hawkins,Lorton, VA TX Q H Pasadena,Framingham, TX MA O T technology to reduce our carbonLorton,Jersey City, VA NJfootprint and we will be investigating a future goal for our fleet L R Carlisle, OH G Retail Production Facilities for the 2014 report. For more information, please see EnergyP EfficiencyI and Renewable Energy. AdministrativeGuelph, ON Canada O ces W M Stamford,Hope, BC Canada CT EE AA J Guelph,Cabazon, ON, CA Canada BB S Raynham,Ontario, CA MA K U Goal – Reduce HODCoppell,Sacramento, TX fleetCA particulate matter emissions byV 36 percent and nitrous Brea,Denver, CA CO N Zephyrhills, FL Z oxide emissions by 40Greenwood, percent IN by 2013. X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Since 2008, we have achievedBreinigsville, a 27 PA percent decrease in particulate matter and a 37.5 percent Red Boiling Springs, TN decrease in nitrous oxide. WeDallas, are TX on track to reach our goals and continue to reduce our Hawkins, TX Pasadena, TX emissions by reducing miles drivenLorton, VA and retiring our older vehicles every year. Carlisle, OH
Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Goal – Reduce plasticCoppell, TX in half-liter bottles by an additional 15 percent and reduce Brea, CA plastic in all other PET bottles by 20 percent combined weight by 2010.
In late 2009, we launched our next-generation Eco-Shape® half-liter bottle, which weighs 9.3 grams on average and contains 60 percent less plastic than our original half-liter PET bottle introduced in the mid-1990s. This next-generation bottle contains an average of 25 percent less plastic than our first Eco-Shape bottle introduced in 2007.
Direct Production Facilities Los Angeles, CA Since 2008, we have also reducedLivermore, CA the amount of Phoenix, AZ Hilliard, OH A plastic in our 1.5-liter and 1-literHouston, TXEco-Shape bottles, E F B Woodridge, IL C D and reduced their weight fromLorton, 31 VA grams to 26 grams Q H Framingham, MA O T Jersey City, NJ L R and from 23 grams to 19.6 grams, respectively, G Retail Production Facilities P I Guelph, ON Canada achieving a 15.4 percent combined weight average W M Hope, BC Canada EE AA J Cabazon, CA BB S reduction. We further lightweightedOntario, CA these bottles in K U Sacramento, CA V Denver, CO 2011 and 2012, converting our 1.5-liter Eco-Shape N Zephyrhills, FL Z Greenwood, IN X bottle to 24.1 grams and ourHollis 1-liter Center, ME Eco-Shape bottles Y King eld, ME CC to 17.6 grams. These incrementalPoland Spring, reductions ME helped us DD Stanwood, MI Breinigsville, PA surpass our goal, achieving aRed significant Boiling Springs, TN combined Dallas, TX weight average reduction of Hawkins,22.9 TX percent. Pasadena, TX Lorton, VA Carlisle, OH Administrative O ces Stamford, CT Guelph, ON, Canada Goal – Advance goalRaynham, of MA 60 percent Coppell, TX recycling rate for PET Brea,beverage CA bottles by 2018.
In 2010, we expanded this goal to include recycling at our operations in Canada. As it reads in our 2010 Goals and Targets, we plan to “lead our industry in a shared commitment to increase U.S. recycling rates to 60 percent for PET beverage bottles by 2018. In Canada, recycle 85 percent of the bottles we produce.” We are on track to achieving this target. For more information, please see Packaging Responsibility and Operational Sustainability.
54 hellos healthy hydration water responsibility community responsibility packaging responsibility progress on goals
Progress on 2010 Goals and Targets
In 2010, we set long-term goals with short-term targets to help us achieve our objectives. This section reports on the targets that have been met and explains any changes to our long-term goals. Goals and targets that we continue to work on are detailed in the report.
55 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE Cabazon, CA AA BB J Direct Production Facilities S Ontario, CA Los Angeles, CA K Sacramento, CA U Livermore, CA V Denver, CO Phoenix, AZ N Zephyrhills, FL Z Hilliard, OH Greenwood, IN X A Houston, TX E Hollis Center, ME F B Woodridge, IL C CC Y King eld, ME D Lorton, VA Q H Poland Spring, ME Framingham, MA DD Stanwood, MI O T Jersey City, NJ Breinigsville, PA L R Red Boiling Springs, TN G Retail Production Facilities Dallas, TX P I Guelph, ON Canada Hawkins, TX W M Hope, BC Canada EE Pasadena, TX Cabazon, CA AA BB J Lorton, VA S hellos healthy hydrationOntario, CA water responsibility community responsibility packaging responsibility progress on goals Carlisle, OH K U Sacramento, CA V Denver, CO Administrative O ces N Zephyrhills, FL Z Stamford, CT Greenwood, IN X Guelph, ON, Canada Hollis Center, ME Raynham, MA Y King eld, ME CC Direct Production FacilitiesCoppell, TX Poland Spring, ME Los Angeles, CA Brea, CA DD Goal – BeLivermore,Stanwood, a leader CAMI in sustainable water stewardship practices. Phoenix,Breinigsville, AZ PA Hilliard,Red Boiling OH Springs, TN A Houston,Dallas, TX TX E F B Woodridge,Hawkins, TX IL C D During the past two years,Lorton,Pasadena, VA TX we’ve made good progress againstQ H our targets and have recently Framingham,Lorton, VA MA O T JerseyCarlisle, City, OH NJ expanded the goal to include water stewardship, educationL andR advocacy. For more information G RetailAdministrative Production O ces Facilities P I about the new goal andGuelph,Stamford, ONassociated CT Canada targets, please see Water Stewardship. W M Hope,Guelph, BC ON, Canada Canada EE Raynham, MA AA J Cabazon, CA BB S Coppell, TX Ontario, CA K Brea, CA U Sacramento, CA V Target –Denver, Optimize CO water use ratios by product type over 2009 levels. N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Direct Production Facilities Through our programPoland of Spring, continuous ME excellence, we have optimized DDwater use ratios for all of Stanwood, MI Los Angeles, CA our products. As we growBreinigsville, PAourLivermore, product CA line, we will continue to monitor, report and improve Red Boiling Springs,Phoenix, TN AZ Dallas, TX Hilliard, OH A our water usage through ourHouston, Global TX Environmental Footprint (GEF) assessmentE tool. For more Hawkins, TX F B Woodridge, IL C Pasadena, TX D information about waterLorton, VA usageLorton, VApractices and the new target, pleaseQ H see Key Components of Carlisle, OH Framingham, MA O T Jersey City, NJ L R Our Water ManagementAdministrative Approach O ces . G Retail Production Facilities Stamford, CT P I Guelph, ON Canada Guelph, ON, Canada W M Raynham, MA Hope, BC Canada EE AA J Coppell, TX Cabazon, CA BB S Target –Brea, Add CA languageOntario, CA to labels about how to access our waterK quality U Sacramento, CA V Denver, CO N reports (2011). Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD We have met this goal. Currently,Stanwood, MI the majority of NWNA labels, including most 3- and 5-gallon Breinigsville, PA products, have both a toll-freeRed Boiling phone Springs, TN number and a website address to access quality testing Dallas, TX Hawkins, TX results. The remaining 3- andPasadena, 5-gallon TX product labels that have just one – a website or a phone Lorton, VA number – are currently beingCarlisle, revised OH to provide both. We plan to continue to label every new
Administrative O ces and existing bottled water productStamford, CT with this information. Guelph, ON, Canada Raynham, MA Coppell, TX Goal – AdvocateBrea, for CA water as essential to human and environmental health.
We established this goal in 2010 to advance our leadership on these issues. We have divided this goal to emphasize the importance of water to human health and hydration. We separately focus on water and environmental health in the Water Responsibility section of this report.
56 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX hellos healthy hydrationLorton, VA water responsibility community responsibility packaging responsibility progress on goals Carlisle, OH
Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Goal – Ensure the Brea,materials CA we use are designed for recyclability.
Today, all of our bottles and packaging materials are recyclable. Yet, recycling rates in North America are still too low. Because of this, we refined our 2010 goal to focus more on the use of recycled content in our bottles, to raise awareness of the value of recycled materials and to encourage higher recycling rates.
For more information, please see Packaging Innovation and Recycling.
Target – Complete a comprehensive assessment of our materials and packaging footprint by 2011; use findings to make future waste reductions and promote second-life use.
Using our Global Environmental Footprint (GEF) assessment tool, we comprehensively assessed our packaging to better understanding the specific materials that, beyond PET, contribute most to our overall packaging footprint. We conducted the initial assessment of our various products in 2009 and confirmed that we are reducing all of our packaging materials, including our card- board, film, labels, and shrink wrap.
Through our continuous excellence approach and our innovative assessment tools, such as the GEF, we continue to analyze our materials and packaging footprint, using the lessons to make ongoing reductions.
Target – Continue to provide total compensation and benefits for our employees in the 50th-75th percentile compared to other local consumer product manufacturing companies. Direct Production Facilities Los Angeles, CA Livermore, CA At NWNA, we maintainPhoenix, a AZ strong focus on ensuring that our pay and benefits programs are not Hilliard, OH A Houston, TX E F B only competitive withWoodridge, local IL employment standards – but meet the needsC of our workforce. This D Lorton, VA Q H is especially importantFramingham, for many MA of the rural communitiesO in whichT we operate, where we’ve Jersey City, NJ L R G learned from internal Retailstakeholders Production Facilities that our compensation and benefits are better than other P I Guelph, ON Canada W M most local employers Hope,– and BC Canada a critical component of the local economicEE stability. AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N We have fulfilled ourZephyrhills, 2010 FL target in this area, but will continue to regularlyZ monitor and bench- Greenwood, IN X Hollis Center, ME Y mark our pay and benefitsKing eld, ME program to ensure we continue to meetCC this goal. Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA Carlisle, OH
Administrative O ces Stamford, CT Direct Production Facilities Guelph, ON, Canada Los Angeles, CA Raynham, MA Livermore, CA Coppell, TX Target –Phoenix, Complete AZ a comprehensive assessment of our materials and packaging Brea, CA Hilliard, OH A Houston, TX E footprint by 2011; use findings to make future waste reductionsF andB promote second-life use. Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R Using our Global Environmental Footprint (GEF) assessment tool, we comprehensivelyG assessed Retail Production Facilities P I Guelph, ON Canada W M our packaging to betterHope, BCunderstand Canada the specific materials that, beyondEE PET, contribute most to AA J Cabazon, CA BB S Ontario, CA K our overall packaging footprint. We conducted the initial assessmentU of our various products Sacramento, CA V Denver, CO N in 2009 and confirmedZephyrhills, that FL we are reducing all of our packaging Zmaterials, including our Greenwood, IN X Hollis Center, ME cardboard, film, labels and shrink wrap. Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Through our continuousRed Boiling excellence Springs, TN approach and our innovative assessment tools, such as the Dallas, TX Hawkins, TX GEF, we continue to analyzePasadena, TX our materials and packaging footprint, using the lessons to make Lorton, VA ongoing reductions. Carlisle, OH Administrative O ces Stamford, CT Guelph, ON, Canada Target –Raynham, Continue MA to provide total compensation and benefits for our employees Coppell, TX in the 50th-75thBrea, CA percentile compared to other local consumer product manufacturing companies.
At NWNA, we maintain a strong focus on ensuring that our pay and benefits programs are not only competitive with local employment standards, but also meet the needs of our workforce. This is especially important for many of the rural communities in which we operate, where we’ve learned from internal stakeholders that our compensation and benefits are better than most other local employers and a critical component of the local economic stability.
We have fulfilled our 2010 target in this area, but will continue to regularly monitor and benchmark our pay and benefits programs to ensure we continue to meet this goal. 57 Direct Production Facilities Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T Jersey City, NJ L R G Retail Production Facilities P I Guelph, ON Canada W M Hope, BC Canada EE AA J Cabazon, CA BB S Ontario, CA K U Sacramento, CA V Denver, CO N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI Breinigsville, PA Red Boiling Springs, TN Dallas, TX Hawkins, TX Pasadena, TX Lorton, VA hellos healthy hydrationCarlisle, OH water responsibility community responsibility packaging responsibility progress on goals
Administrative O ces Stamford, CT Guelph,Direct Production ON, Canada Facilities Raynham,Los Angeles, MA CA Coppell,Livermore, TX CA Brea,Phoenix, CA AZ Target –Hilliard, Build OH on our diversity and inclusion strategy and Aaccountability structure. Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T We always have stressedJersey City, the NJ value of a diverse and inclusive culture, and have placed an even L R G Retail Production Facilities P I higher priority on improvingGuelph, ON Canada our diversity and inclusion strategy and structure during the past W M Hope, BC Canada EE AA J two years. To do this,Cabazon, we CArallied senior leadership supportBB S and embedded more formal training Ontario, CA K U Sacramento, CA V and education into ourDenver, leadership CO development program to equip leaders with the skills N Zephyrhills, FL Z necessary to lead andGreenwood, motivate IN diverse teams. We also have launchedX mentoring initiatives aimed Hollis Center, ME Y at women, conductedKing eld, executive ME round-table discussions to understandCC and address potential Poland Spring, ME DD Stanwood, MI barriers to an inclusiveBreinigsville, work PA environment, and implemented changes to our talent succession Red Boiling Springs, TN Dallas, TX process to identify andHawkins, support TX diverse employees with development earlier in their careers. Pasadena, TX Lorton, VA Carlisle, OH
We will continue to monitorAdministrative O ces our progress against this target going forward. Stamford, CT Guelph, ON, Canada Raynham,Direct Production MA Facilities Coppell,Los Angeles, TX CA Target –Brea,Livermore, Use CA CA our new community siting framework developed with BSR, train Phoenix, AZ relevant teamsHilliard, andOH develop mechanisms for ongoing review ofA the framework. Houston, TX E F B Woodridge, IL C D Lorton, VA Q H Framingham, MA O T After two years of planningJersey City, NJ – including assistance from BSR, a global organization dedicated to L R G Retail Production Facilities P I accelerating sustainability,Guelph, ON Canadato help guide us through the process – we launched the framework W M Hope, BC Canada EE AA J in the second quarterCabazon, of 2011. CA It is now being used toBB guideS engagement with every new Ontario, CA K U Sacramento, CA V community where weDenver, seek CO to source spring water. N Zephyrhills, FL Z Greenwood, IN X Hollis Center, ME Y The framework targetKing eld, established ME in 2010 remains similar, but withCC the launch behind us, we’ll Poland Spring, ME DD Stanwood, MI now focus on ensuringBreinigsville, the PA framework’s sustainability as a business practice via training and Red Boiling Springs, TN Dallas, TX ongoing review. This Hawkins,explains TX why “Use our new community siting framework developed with Pasadena, TX BSR” has been removedLorton, VAfrom the target. For more information, please see the Commitment to Carlisle, OH
Communities section.Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Coppell, TX Target –Brea, Roll CA out our new community support and volunteering guidelines by Direct Production Facilities the end of 2011.Los Angeles, CA Livermore, CA Phoenix, AZ Hilliard, OH A Houston, TX E F B Woodridge, IL C The new guidelines were developed and rolled out last year. The firstD step, which was completed Lorton, VA Q H Framingham, MA O T in 2011, was to launchJersey the City, NJ companywide volunteer program and develop a team of volunteer L R G Retail Production Facilities coordinators across the country to help rally and organizeP employees.I The continuation of these Guelph, ON Canada W M Hope, BC Canada EE AA J efforts was the launchCabazon, of CAan online registration site, WaterBB S Works, in early 2012. This online Ontario, CA K U portal helps match employeesSacramento, CA with local volunteer opportunitiesV and allows them to log NWNA Denver, CO N Zephyrhills, FL Z and/or independent volunteerGreenwood, IN hours. X Hollis Center, ME Y King eld, ME CC Poland Spring, ME DD Stanwood, MI In addition, we launchedBreinigsville, the PA first volunteer month in September 2012, a time we used to Red Boiling Springs, TN educate employees aboutDallas, TX volunteer opportunities and get them involved in different volunteer Hawkins, TX Pasadena, TX activities throughout theLorton, VA month. For more on our volunteer efforts, please see Creating Shared Value through VolunteerismCarlisle, OH . Administrative O ces Stamford, CT Guelph, ON, Canada Raynham, MA Target –Coppell, Track TX volunteering hours by 2012 and set a target for improvement Brea, CA in 2013.
Our employees logged 7,200+ hours in 2012, more than double their achievement in 2011. We have set a target for a 20 percent improvement by 2014.
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