1 Policy Mandatory February 2013. The nestl Policy on Environmental Sustainability Policy Mandatory Issuing department February 2013 Safety, Health and Environmental Sustainability Target audience Public, all employees Approver Executive Board of nestl Repository All nestl Principles and Policies, Standards and Guidelines can be found in the Centre online repository at: This Policy is also registered as Copyright All rights belong to Nestec Ltd., Vevey, Switzerland. 2013, Nestec Ltd. Appendices This Policy is complemented with more detailed commitments on specific Environmental issues available at Design Nestec Ltd., Corporate Identity & Design, Vevey, Switzerland Production brain'print GmbH, Switzerland Paper This report is printed on BVS, a paper produced from well-managed forests and other controlled sources certified by the Forest Stewardship Council (FSC). Commitment of the CEO to environmentally sustainable business practices At nestl , the recognised world's leading This also means delighting consumers by giving Nutrition, Health and Wellness company, we them another reason to trust nestl and enjoy believe that to be successful over the long-term our products, and living up to employees' and we need to create value for our shareholders external stakeholders' expectations about our and for society as a whole.
2 We call this Creating Environmental responsibility and practices. Shared Value (CSV). As an essential prerequisite nestl is therefore committed to: for CSV we not only have to comply with all meaningful and accurate Environmental applicable legal requirements and The nestl information and dialogue based on scientific Corporate Business Principles but also ensure evidence about our products, activities and that the principle of sustainable development is services at corporate, market and product embedded in our activities, brands and products. brand level;. independent Environmental auditing, verification and certification of our practices and along our supply chain;. Environmental awareness training and education for our employees, alongside effective communication with employees and recognition of their initiatives and Creating Shared Value Nutrition, water, rural development achievements towards Environmental improvement;. Sustainability proactive long-term engagement and Protect the future partnerships with stakeholders, including Compliance regulators, scientists, customers, business Laws, business principles, codes of conduct partners, civil society organisations and the community, in order to define, implement This means protecting the future by making and evaluate solutions to the complex the right choices in an environment where water Environmental challenges we are facing.
3 Is increasingly scarce, natural resources are constrained and biodiversity is declining. All of As the Chief Executive Officer of nestl , these elements are vital for feeding a growing I am determined to provide the leadership and world population and for the development of resources to make sure that this commitment nestl . Moreover, climate change may exacerbate is fully integrated throughout the Company. our Planet's Environmental challenges. nestl is therefore committed to: full compliance with all applicable legal Environmental requirements and our internal requirements where specific Environmental legislation is non-existent or insufficient;. the continual improvement of the Environmental performance of our activities, products and services and prevention of pollution through the nestl Environmental Management System (NEMS) which complies with the international ISO 14001 standard;. the systematic assessment and optimisation of Environmental impacts in the design of new and renovated products.
4 The responsible sourcing of ingredients, packaging materials and other goods and services from suppliers who comply with the nestl Supplier Code and demonstrate continual improvement of their Environmental performance;. so that nestl 's products will be not only tastier and healthier but also better for the environment Paul Bulcke along their value chain. Chief Executive Officer The nestl Policy on Environmental Sustainability 1. Meeting our commitment We apply a product life cycle approach involving 3. Manufacturing our partners from farm to consumer and Manufacturing comprises all processes that beyond. Specific to our food and beverage are necessary to transform perishable business we focus on water preservation, raw materials into safe and value-added food natural resources efficiency, biodiversity products for consumers. conservation, air emissions reduction, climate Building on the ISO 14001 certification of change adaptation, and zero waste. our factories, we aim to do more with less by eliminating all types of waste, with a key focus 1.
5 Research and Development on what is valuable for both the environment nestl Research and Development centres and our consumers. We thus improve our have two primary objectives: to create new overall efficiency, quality and Environmental products and processes and to improve those performance. that already exist. We aim to use the most efficient technologies In order to have Environmental Sustainability and apply best practices in order to further being more and more built into products, our optimise energy and water consumption, Sustainability by Design Programme systematically minimise waste generation, utilise sustainably- assesses and optimises the Environmental managed renewable energy sources, recover performance across the entire value chain at the value from by-products and control and eliminate earliest stage in the development of new and emissions, including greenhouse gases. renovated products. We use safe natural refrigerant alternatives for Our global Sustainability by Design Network industrial refrigeration installations and implement champions the continuous improvement of new solutions to improve their performance.
6 This programme across the different businesses We incorporate Environmental Sustainability and categories. objectives when we build, construct and renovate facilities. 2. Sourcing of Raw Materials nestl sources its raw materials either directly 4. Packaging from farmers or from primary processors The packaging of our products is crucial to or traders. We prefer to use agricultural prevent food waste, guarantee our high quality materials which are locally available. We foster standards and inform our consumers. We: Environmental Sustainability in the supply optimise the weight and volume of our chain through: packaging;. the Responsible Sourcing Audit Programme lead the development and use of materials which requests key vendors to demonstrate from sustainably-managed renewable compliance with nestl 's Environmental resources considering packaging and product standards through independent third party performance requirements;. audits; if corrective actions are required nestl , support initiatives to recycle or recover energy together with auditors, will guide vendors in from used packaging.
7 Upgrading their practices; use recycled materials where there is an the Responsible Sourcing Traceability Environmental benefit and it is appropriate. Programme which promotes transparency in our extended supply chains back to the farm or feedstock, implementing our commitments on no-deforestation, responsible use of water, sustainable fisheries and animal welfare, and addressing other specific Environmental aspects;. the Farmer Connect Programme which supports the farming communities where we source agricultural raw materials, and provides technical assistance on sustainable production methods; we also optimise the delivery of raw materials up to the factory;. the Sustainable Agriculture Initiative at nestl . which shares best practices and lessons learned. 2 The nestl Policy on Environmental Sustainability 5. Distribution 8. Human Resources Delivering the products in highest quality and We educate all employees to live by the nestl . on time from the factory to customer is a vital corporate business principle on Environmental part of our business.
8 To continuously enhance Sustainability We make nestl resourceful and efficiency and Environmental performance in therefore, we: distribution, we: train all employees on this Policy ;. optimise distribution networks and route create conducive workplace conditions that planning across all our operations; help all employees take personal responsibility explore opportunities to improve for protecting the environment by promoting transportation, use sea and rail instead application of this Policy to day-to-day activities of road; at the workplace as well as at home;. expand driver training both from a safety ensure Environmental Sustainability is covered and Environmental efficiency perspective, as part of relevant training, workshops use telematics and latest technology on our and meetings to raise commitment of our vehicles where practical, and recommend the employees, suppliers, business partners and same to our suppliers; the community at large;. support the development and use of safe promote corporate and personal responsible and efficient natural refrigerant solutions for behaviour towards the environment through commercial applications and progressively publishing success stories and recognising phase out HFCs appliances.
9 Positive initiatives to embed these practices within nestl and the local community. 6. Marketing & Consumer Communication Marketing's most fundamental commitment is 9. Regulation to delight consumers every day, everywhere, We carefully monitor, evaluate and communicate thereby building trust. As part of building regulatory developments so that they are trust, we: reflected in our strategies. To promote an integrate Environmental Sustainability into effective regulatory system with respect to our products, and brand communication Environmental Sustainability , we: where applicable; engage with regulators and other relevant help consumers make informed stakeholders to foster environmentally efficient choices through credible, substantiated and effective laws and regulations;. communication; support internationally recognised standards leverage relevant contact points ( digital, and voluntary initiatives designed to protect packaging and point-of-sale) to inform the environment.
10 Consumers of Environmental improvements, oppose discriminatory measures;. as well as action they can take when using our favour the harmonisation of Environmental products and handling used packaging; laws, regulations and standards in order support and shape the development of to develop trade and help consumers'. Environmental communication best practices understanding. and standards, working in collaboration with industry, government and public forums. 7. Corporate Communication Communication on the topic of Environmental Sustainability is an increasingly important part of our corporate communication strategy involving media relations and engagement with non- governmental organisations, special interest groups, governments and public authorities. Our nestl in Society website features our activities on Environmental Sustainability and water. A strategic priority for us is to engage stakeholders and develop key partnerships. Our proactive engagement with stakeholders on Environmental topics includes regular external stakeholder convenings and meetings.