The Nestlé Policy on Nestlé Commitment on Water …

1 Policy Mandatory July 2014. Policy Mandatory February 2013. Appendix to The nestl Policy on Environmental Sustainability The nestl Policy on Environmental Sustainability nestl Commitment on Water Stewardship nestl recognises that the long term success The nestl Commitment on Water Stewardship of the company is built upon effective Water has been prepared to guide and align nestl 's stewardship in the watersheds where its raw efforts to complement nestl 's Corporate materials are sourced from, where its factories Business Principles, the nestl Policy on are located, and where suppliers and consumers Environmental Sustainability, the nestl Supplier live. It believes that effective Water stewardship Code, Responsible Sourcing Guidelines, and will require that provisions are made firstly for Water Guidelines for Suppliers of Agricultural Water to meet the human right to Water , then to Raw Materials.

2 This Commitment should be ensure that ecosystems are able to function, and specifically read in conjunction with the nestl . finally to ensure that Water is used efficiently for Commitment on Natural Capital. agricultural and industrial use. nestl believes that Governments have to take the lead in establishing Specifically nestl commits to: over-arching Water policies within which nestl . and other Water users can operate. nestl is 1. Work to achieve Water efficiency across willing to assist in this process, is committed our operations, by to develop its business in a way that facilitates Ensuring that our operations do not effective Water stewardship in the geographies compromise the right to Water of local that it sources from and operates within, and communities is committed to focus upon measures that are Excelling in the efficient use of Water in all our cost effective and relevant within a watershed.

3 Facilities Water is an important natural resource for nestl : Conducting Water resource reviews across agriculture is the major user of Water and nestl existing and new factory sites is one of the worlds' largest buyers of agricultural Concentrating interventions in priority raw materials from farms and forests. nestl watersheds uses Water at over 460 factories globally, and Stimulating innovation in Water use efficiency consumers use Water to prepare and consume by investing in Lighthouse Projects . our products. Implementing programmes to reduce Water nestl has a long history of leadership on Water withdrawal, reuse Water and use alternative stewardship1 through continuous improvement in Water sources such as rainwater harvesting the efficient use of Water at its factory operations and innovative programmes with farmers. More recently it has been an advocate for collaborative action globally and at a watershed level on Water stewardship.

4 In 2010, nestl formally reconfirmed its public support for the human right to Water and sanitation, as adopted by the United Nations General Assembly and the United Nations Human 1 Water Stewardship for a Water user is about Rights Council. acknowledging the responsibilities and implementing the actions, individually and/or collectively, needed for the sustainable management of shared Water resources within a watershed nestl Commitment on Water Stewardship 1. 2. Advocate for effective Water policies and 5. Raise awareness of Water access and stewardship, by conservation, by Engaging in and supporting public Policy Supporting our employees to understand and dialogues at the global level, such as the 2030 make better informed decisions that will lead to Water Resources Group, the Alliance for Water effective Water stewardship Stewardship, and the CEO Water Mandate.

5 Supporting the human right to Water and Engaging in collaborative Policy and Water sanitation by ensuring that all nestl facilities conservation activities at a national/sub- provide access to clean Water and sanitation national/watershed levels to their employees, and assist the provision of Improving corporate reporting on Water clean Water and improved sanitation to priority stewardship communities adjacent to selected factories and locations2 where nestl is sourcing agricultural 3. Treat the Water we discharge effectively, by commodities Setting strict targets for Water discharge Supporting education programmes (such quality, for Water returning to the environment as Project WET) at schools and in local Operating treatment plants, where municipal communities infrastructure is inadequate or insufficient to Promote products and behaviours that can meet our environmental standards help consumers to lower their use of Water .

6 Ensuring that our operations do not and provide them with information to help compromise the right to Water & sanitation of them minimise Water use when preparing our local communities products Sharing good practices for sustainable 4. Engage with suppliers, especially those in Water use with other companies and other agriculture by stakeholders Incorporating Water management requirements into the agricultural commodity 6. Report publicly on a regular basis on the Responsible Sourcing Programme and the Tier progress of meeting this Commitment . 1 Supplier Audit Programme Prioritising interventions per commodities (eg sugar), especially in Water scarce locations and important Water areas Providing training and support to farmers on Water quality, reducing Water usage as well as retaining soil moisture Undertaking R&D activities on plant varieties and processing to reduce Water usage 2 As identified following the implementation of the Rural Development Framework 2 nestl Commitment on Water Stewardshi