Creating Shared Value and Sustainability Report 2020 Appendix

1 Creating Shared Value and Sustainability Report 2020. Appendix nestl . Unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Our material issues and the SDGs Responsible sourcing Human rights and the UNGPRF GRI Index Creating Shared Value and Sustainability Report 2020 Appendix 2. Table of contents About our reporting Data scope and methodologies UN Sustainable Development Goals Our ambitions and commitments are also closely Unless otherwise noted, the performance data aligned with the 17 UN Sustainable Development included in this Report corresponds to companies Goals (SDGs) (see page 11). 2 About our reporting Our Creating Shared Value and that are consolidated in our financial statements. 3 Reporting, strategy and governance UN Guiding Principles Reporting Framework Sustainability Report 2020 and Appendix Our safety and health data covers 287 832. The UNGP Reporting Framework (UNGPRF).

2 4 Independent assurance statement employees, while our environmental data refers provides our shareholders and stakeholders to factories and warehouses, with the exception offers comprehensive guidance for companies 5 Our key performance indicators with a summary of our 2020 performance of some recent acquisitions. Our climate change to Report on salient human rights issues. This is 7 Our material issues and the SDGs in line with the UN Guiding Principles on Business 8 Focusing on our material issues against our commitments. We provide disclosures conform with the Climate Disclosure and Human Rights. Our human rights reporting Standards Board framework requirements. We 9 Material issues across the Value chain further detailed information online. also follow the standards of the Greenhouse Gas meets the Tier 1 assurance indicators of the Protocol to establish our GHG inventory. UNGP Assurance Framework. For our responses 11 Materiality and the SDGs to the Framework in our Index of Answers see 12 How our global initiatives support the SDGs Reporting period, scope and boundaries See our response to the CDP Investor Information pages 26 45.

3 The Creating Shared Value and Sustainability Report Request for comprehensive details of our climate 13 Responsible sourcing 14 Responsible sourcing definitions 2020 and Appendix covers our global operations change disclosures and performance . Audience for the calendar year ending December 31, 2020. We maintain ongoing dialogue with a wide range 16 Responsible sourcing KPIs It contains data for wholly owned companies Reporting frameworks of stakeholders interested in this Report . They 17 No Deforestation Progress and subsidiaries but excludes joint ventures and Our Creating Shared Value and Sustainability include investors, non-governmental organizations, suppliers unless specifically stated. Market' Report 2020 and Appendix serve as a transparent ESG services, consumers and suppliers. 18 Theory of Change model refers to our business and/or activities at a national tool, outlining our performance in 2020. They 19 Human rights additional reporting level, while Zone' refers to a geographic group have been produced in compliance with several Currency conversion 20 Human rights governance of markets.

4 Reporting frameworks. All amounts in this Report have been converted 21 Salient human rights issues The Creating Shared Value and Sustainability Report to Swiss francs (CHF) using the exchange rates Global Reporting Initiative 22 Human rights journey 2020 is focused on progress to date against our The GRI is an international independent standards reported in the consolidated financial statements 24 nestl policy commitments commitments and objectives, which are based organization that helps businesses, governments of the nestl Group 2020. on the most material issues. These were updated and other organizations understand and 26 UN Guiding Principles Reporting Framework (UNGPRF) Index of Answers during our most recent materiality assessment in communicate their impacts on issues such as Contact us 2020. The process reviewed economic, social and climate change, human rights and corruption. This We hope you find this Report engaging and 46 Global Reporting Initiative (GRI) Index environmental issues that are of most concern Report has been prepared in accordance with the informative, and we continue to welcome your to our external stakeholders against those that Comprehensive option of the latest GRI Standards input and views: pose risks or present opportunities to nestl .

5 And the Food Processing Sector Supplement, and The results have informed the content of the Where to find more information externally assured by Bureau Veritas. For our full Creating Shared Value and Sustainability Report GRI Content Index, see pages 46 104. This document forms an integral part of nestl 's 2020 and our CSV web pages, in line with the UNGC Communication on Progress, together with: Global Reporting Initiative (GRI) Standards materiality UN Global Compact Communication on Progress Our Annual Review | Our CSV web pages principle (see the Reporting frameworks section). Every year, nestl submits its Communication on Progress to demonstrate its commitment to Go to , where you can the Ten Principles of the UN Global Compact also find more detailed governance information, (UNGC) on human rights, labor, environment and performance data, case studies and additional anti-corruption. audio and video content. Our Corporate Business Principles are the basis of our company's culture and are available as a PDF.

6 See the awards and recognition we have received. Our material issues and the SDGs Responsible sourcing Human rights and the UNGPRF GRI Index Creating Shared Value and Sustainability Report 2020 Appendix 3. Reporting, strategy Doing business right Ethical principles are fundamental to how we Talking to the right people We always seek the advice of the best experts and Our performance in leading indices We are not driven by awards and recognition. and governance operate. This means zero tolerance for fraud, advocates to make our CSV business approach as Nonetheless, we are proud to have our efforts and bribery and corruption and increased efforts in the robust as it can be. achievements in Sustainability acknowledged by protection of personal data and open disclosure of world-leading ratings and rankings agencies: Stakeholder engagement tax payments. Our governance systems and approach Ethical business nestl maintained its strong to business ethics are fundamental to our Collaborating for major change standing in the FTSE4 Good Index with an overall 2020 ESG Rating organization.

7 We publicly share these, Being transparent at all times Collaboration is an essential element to tackle of This is significantly higher global issues like rising obesity, child labor and as well as our comprehensive reporting The tax we pay is an integral part of Creating climate change. than the Food Products subsector average. processes, as outlined here. Shared Value (CSV), and we believe it is good . Partnerships and collective action practice to openly disclose information about nestl was ranked 1st out of our taxes as part of being a responsible and 22 global food and beverage transparent organization. Awarding good work manufacturers in the 2018 Access to Nutrition Index (ATNI). The goal Taxation The nestl CSV Prize aims to reward and support of the ATNI is to facilitate improved innovative solutions to address global challenges. diets and a reduction in the global Putting our values at the heart of what we do Creating Shared Value Forum problems of both obesity and under-nutrition.

8 Building our business on clear principles and sound governance maintains trust in the nestl In 2020, nestl was rated AA by the brand and reduces risk in the Value chain. Bringing new ideas to life MSCI ESG Research according to Through the CSV Prize and our open platform its performance on environmental, . Governance and policies HENRi@ nestl , we aim to nurture the ideas and social and governance (ESG) issues. innovations that will shape the future. estl retained its place in the N. Prioritizing key issues Supporting innovative ideas CDP's Climate and Water A lists and To ensure our Sustainability efforts keep up with a submitted a response to the Forest changing world, we conduct a materiality analysis questionnaire for the first time. every two years. Aligning our ambitions and commitments nestl 's answer to the 2020 CDP. Materiality with the UN Sustainable Development Climate change questionnaire Goals (SDGs) nestl 's answer to the 2020 CDP.

9 Our commitments and ambitions are closely Water questionnaire aligned with the 17 SDGs. nestl 's answer to the 2020 CDP. Contributing to the Global Goals Forest questionnaire We were ranked 2nd within the packaged food industry in Ceres'. Feeding Ourselves Thirsty, an analysis comparing the water risk management of 42 countries. Our material issues and the SDGs Responsible sourcing Human rights and the UNGPRF GRI Index Creating Shared Value and Sustainability Report 2020 Appendix 4. Independent Summary Assurance Statement from Bureau Veritas UK Ltd assurance Bureau Veritas UK Ltd. (Bureau Veritas) has provided independent assurance to nestl SA. statement ( nestl ) over the Creating Shared Value and Sustainability Report 2020 ( the Report ') published on the nestl website ( csv). The assurance process was conducted in line with the requirements of the AA1000 Assurance We engaged a third-party organization, Standard (AA1000AS v3) Type 2 at moderate level Bureau Veritas, to provide independent of assurance.

10 The scope of Bureau Veritas' work assurance for this Creating Shared Value was limited to nestl 's head office based activities where nestl consolidates and reconciles data and Sustainability Report 2020. This provided by its markets/countries of operation. process aims to provide assurance to The assurance was provided over all data and text included in the Report and included an evaluation nestl 's stakeholders of the accuracy, of the Report 's alignment to GRI Standards and reliability and objectivity of the reported the RE100 criteria. It also included a review of information and to confirm that it covers nestl 's human rights reporting against the Tier 1'. Assurance Indicators of the UN Guiding Principles our most material issues. Reporting Framework. Bureau Veritas' full assurance statement includes certain exclusions, observations of good practices, recommendations for improvement, and a detailed assurance methodology and scope of work.