Good Food, Good Life - Creating Shared Value and meeting our commitments 2018 Progress report - Nestle
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Good Food, Good Life Creating Shared Value and meeting our commitments 2018 Progress report Nestlé. Enhancing quality of life and contributing to a healthier future
Creating Shared Value Individuals and families Communities Planet Reporting and governance
Welcome to this 2018 Creating Shared Value progress report.
Aimed at shareholders, stakeholders and other interested parties,
this report shares detailed information about our issues, impacts 3 Creating Shared Value
and performance against our commitments during the year. 5 Our 2020 commitments
and progress
Nestlé. Enhancing quality of life and contributing to a healthier future.
6 For individuals and families
A message from our Chairman and CEO 7 Offering tastier and
healthier choices
13 Inspiring people to
At Nestlé, we believe that business diversity and inclusion within our
lead healthier lives
results and positive societal impact company is another example. We
21 Building, sharing and
should be mutually reinforcing. are accelerating our efforts in this
applying nutrition knowledge
To be successful in the long term, area with a particular focus on
we must create value for both increasing the number of women in 24 For our communities
our shareholders and for society. senior executive positions globally.
25 Enhancing rural development
We call this approach to business
and livelihoods
Creating Shared Value and it is When it comes to addressing
31 Respecting and promoting
an integral part of our strategy. global sustainability challenges,
human rights
one of our key ambitions is to lead
Improving the nutrition, health and the way in shaping a waste-free 36 Promoting decent employment
and diversity
wellness profile of our foods and future. We are committed to
beverages is at the heart of what making our packaging 100% 40 For the planet
we do. We want to contribute to recyclable or reusable by 2025, and
healthier lives, with a particular have already taken specific action 41 Caring for water
emphasis on childhood nutrition. on this initiative earlier this year. 46 Acting on climate change
Our Nestlé for Healthier Kids 49 Safeguarding the environment
initiative brings together all our As in previous years, we reaffirm
efforts – from product our support for the UN Global 55 Reporting and governance
reformulation to supporting Compact. As a founding member 56 About this report
parents and caregivers. of UN Global Compact LEAD, we
recognize the importance of this Paul Bulcke Mark Schneider 57 Independent assurance
We are also driven to positively platform for driving corporate Chairman Chief Executive Officer statement
contribute to the communities sustainability leadership and
58 Our key performance indicators
where we live and work. Our Global collective engagement toward the
Youth Initiative is just one of the 2030 Agenda for Sustainable
many ways we make an impact. Development.
We have expanded our efforts here
to address youth unemployment We welcome your feedback on this
and help 10 million young people report, our commitments and our
access economic opportunities by performance.
2030. Our commitment to foster
Creating Shared Value progress report 2018 2
Creating Shared Value Individuals and families Communities Planet Reporting and governance
Creating Shared Value
Creating Shared Value (CSV) is fundamental to how we do business at Nestlé.
We believe that our company will be successful in the long term by creating value,
both for our shareholders and for society. Our activities and products should make
a positive difference to society while contributing to Nestlé’s ongoing success.
Focus on key areas To better connect financial with
non-financial value creation and
Long‑term value creation requires reporting, we worked with Ernst &
focus. In consultation with experts, Young (EY) and Valuing Nature to
we chose to prioritize the three conduct an impact assessment to
areas where our business intersects calculate the societal and business
the most with society: nutrition, value generated by our Global Youth
rural development and water. Value Initiative (GYI). Launched in 2017, the
creation is only possible with a solid GYI is expected to create 10 million
foundation of compliance and a economic opportunities for young
culture of respect, as well as a firm people over the next decade. The
commitment to environmental study revealed that the initiative
and social sustainability. Our generated a positive business return
impact on these focus areas is on investment, and an even higher
measured by progress against societal return. More details on the
publicly stated commitments, results and methodology have been
which are informed by our published on our website.
materiality assessment and regular
feedback from external groups. This impact valuation methodology
has been peer-reviewed by FSG
The business case for and continues to be refined
Creating Shared Value through application to other
We cannot maximize long-term projects. We are currently
sustainable value creation for conducting an impact valuation of
shareholders at the expense of our Caring for Water initiative.
other stakeholders. We believe that
societies will not support a business We also participated in the work
that harms our communities and of the Embankment Project for
overall sense of well-being. Creating Inclusive Capitalism (EPIC), which
Shared Value helps ensure that we aims at shaping the broader
remain relevant with consumers. conversation on long-term
value creation.
Read more about CSV
Read more about our
reporting and governance
Creating Shared Value progress report 2018 3
Creating Shared Value Individuals and families Communities Planet Reporting and governance
Focusing on our process, harnessed the
Natural resource and water stewardship Supply chain stewardship
perspectives of mainstream
material issues investors, and involved key markets
Climate change Over- and under-nutrition
and growth categories.
Major
The materiality process
Materiality is about identifying
This was our first materiality
the issues that matter most to
exercise since switching from the
our business and our stakeholders.
Global Reporting Initiative (GRI) G4
Importance to stakeholders
Every two years, we plot
Guidelines to the GRI Standards. Women’s empowerment Rural development and poverty alleviation Food and product safety
the economic, social and
We worked with DNV GL, an Community relations Human rights Changing consumer demographics and trends
environmental issues that are of Business ethics Product packaging and plastic
independent organization, to
Significant
Responsible marketing and influence
most concern to our external
conduct the assessment using a Product quality
stakeholders against those that Food and nutrition security
formal materiality process to ensure
pose risks or present opportunities Resource efficiency, (food) waste and
alignment with the GRI Standards. the circular economy
to Nestlé. Conducting a thorough Land management in the supply chain
materiality analysis in this way not
The issues identified were placed
only helps us to identify issues we Animal welfare Product regulation and taxation
on a matrix, their position relative to
need to cover in our reporting, but Employee safety, health and wellness Geopolitical uncertainty
the degree of stakeholder interest Decent employment and equal opportunities Responsible use of technology
also helps us to decide where to
Moderate
and potential business impact. Data privacy and cyber security
focus our internal resources.
These results represent the material
issues facing our business. The
Our 2018 materiality issues should not be viewed in
assessment isolation; they are increasingly
For 2018, the materiality process interconnected, and oftentimes Moderate Significant Major
was evolved to bring both changes in one can have an impact Impact on Nestlé’s success
nonfinancial and financial risk on others.
identification together and to For individuals and families For our communities For the planet
connect it more closely to business
operations. In addition to
identifying and prioritizing issues
How we map our material
from internal and external
issues across our value chain
stakeholders, the 2018 materiality
assessment integrated with the How we map our material
Enterprise Risk Management issues to the UN SDGs
Creating Shared Value progress report 2018 4
Creating Shared Value Individuals and families Communities Planet Reporting and governance
Our 2020 commitments and progress Status of our commitments
New In progress Achieved
For individuals Our 2030 ambition
is to help 50 million
For our Our 2030 ambition is to
improve 30 million
For the planet Our 2030 ambition
is to strive for zero
and families children lead communities livelihoods in communities Stewarding resources environmental impact
Enabling healthier healthier lives Helping develop directly connected to our for future generations in our operations
and happier lives thriving, resilient business activities
communities
Offering tastier and Inspiring people to Building, sharing and Enhancing rural Respecting and Promoting decent Caring for water Acting on Safeguarding
healthier choices lead healthier lives applying nutrition development and promoting employment climate change the environment
knowledge livelihoods human rights and diversity
Launch more foods Apply and explain Build and share Improve farm Assess and Roll out our Nestlé Work to achieve Provide climate Improve the
and beverages that are nutrition information on nutrition knowledge economics among the address human rights needs YOUth initiative water efficiency and change leadership environmental
nutritious, especially for packs, at point-of-sale from the first 1000 days farmers who supply us impacts across our across all our operations sustainability across our performance of our
mothers-to-be, new and online through to healthy aging business activities operations Promote packaging
mothers, and infants Improve food Enhance gender transparency and
and children Offer guidance on Build biomedical availability and dietary Improve workers’ balance in our workforce Advocate for proactive, long-term Reduce food loss
portions for our products science leading to diversity among the livelihoods and and empower women effective water policies engagement in and waste
Further decrease health-promoting farmers who supply us protect children in across the entire value and stewardship climate policy
sugars, sodium and Leverage our products, personalized our agricultural chain Provide meaningful
saturated fat marketing efforts to nutrition and digital Implement supply chain Engage with and accurate
promote healthy cooking, solutions responsible sourcing in Advocate for suppliers, especially environmental
Increase eating and lifestyles our supply chain and Enhance a culture healthy workplaces and those in agriculture information and dialogue
vegetables, fiber-rich promote animal welfare of integrity across the healthier employees
grains, pulses, nuts and Empower parents, organization Raise awareness Preserve natural
seeds in our foods and caregivers and teachers Continuously on water conservation capital
beverages to foster healthy improve our green Provide effective and improve access to
behaviors in children coffee supply chain grievance mechanisms water and sanitation
Simplify our to employees and across our value chain
ingredient lists and Support Roll out the Nestlé stakeholders
remove artificial colors breastfeeding and Cocoa Plan with cocoa
protect it by continuing farmers
Address to implement an
under-nutrition through industry-leading policy
micronutrient to market breast-milk
fortification substitutes responsibly
Inspire people to
choose water to lead
healthier lives
Partner for
promoting healthy
food environments
Creating Shared Value progress report 2018 5
Creating Shared Value Individuals and families Communities Planet Reporting and governance
For individuals
and families
Enabling healthier and happier lives
2030 Ambition To help 50 million children lead healthier lives.
Nestlé for by rigorous research, which we • Inspiring people to lead
Healthier Kids share with members of the health healthier lives: Adopting good
and nutrition communities nutrition and hydration habits
reached 29 million worldwide. from an early age is essential to
children in 2018 children’s development. Our
Nestlé for Healthier Kids programs help parents and
It’s never too early to build healthy educators improve nutrition
Food is not only a source of
eating habits. Officially launched in knowledge, promote home
nutrition, it is vital to our social
2018, Nestlé for Healthier Kids is our cooking and encourage active
fabric. In every country, in
flagship initiative for children and lifestyles (pages 12–20).
every culture, food brings
families. It brings together all our • Building, sharing and applying
people together. However, the
efforts, from product reformulation nutrition knowledge: Nestlé for
way we consume food, and the
to innovative nutrition and lifestyle Healthier Kids activities are built
kind of food we eat, has
services for parents and on scientific evidence, including
become a contributing factor to
caregivers. Our ambition is to help our studies into the eating habits
the public health challenges we
50 million children lead healthier and nutritional intake of infants
face today, such as obesity and
lives by 2030. and children. We also aim to
other forms of malnutrition, as
recognized by the World Health • Offering tastier and healthier understand, treat and help
Organization (WHO). In choices: We are committed to prevent a range of medical
addition, consumer food habits delivering more nutritious conditions by leveraging
are changing. In line with these products to kids and families by nutrition and life sciences
evolving issues, we are reducing sugars, sodium and (pages 21–23).
transforming our products, saturated fat in our products,
making them healthier and adding fiber-rich grains, Read more online
natural, to enhance quality of vegetables and micronutrients,
life and contribute to a healthier and phasing out artificial
future. Our work is supported ingredients (pages 6–11).
Creating Shared Value progress report 2018 6
Creating Shared Value Individuals and families Communities Planet Reporting and governance
Why it matters Our contribution
Around the world, about 2 billion people lack The UN Sustainable Development Goals (SDGs)
essential micronutrients in their diet (Global present a unique opportunity for tackling the
Nutrition Report). Our own studies strengthen underlying causes of malnutrition on a global
existing, independent evidence that children scale. We are contributing to the goals by
around the world don’t consume enough whole working with partners to help address all forms
grains or vegetables, or have sufficient calcium of malnutrition and encourage healthy diets.
and vitamin D in their diets. The elderly and To do so, we’re continuing to develop and
people living with severe intolerances are also launch more nutritious foods and beverages
vulnerable to poor nutrition. as well as more sustainable products, simplify
ingredient lists and remove artificial colors,
Millions of people overconsume foods and while adding micronutrients where they are
beverages high in sugars, salt and fat, deficient in local populations. We are also
contributing to a rapid rise in noncommunicable committed to reducing the amount of sugars,
diseases such as type 2 diabetes and obesity. sodium and saturated fat in our products, in line
On the other hand, demand for organic products with WHO recommended intake levels.
Offering tastier and without artificial colors and flavors is growing,
as is the market for vegetarian options and We want to make a meaningful impact and to
healthier choices
healthier foods. move fast to get healthier versions of existing
products on the shelf and to the consumer.
However, we have to take the time to get it right.
If the new, healthier version doesn’t taste good,
Our commitments to offering Addressing the public health issues of consumers will simply buy a less nutritious
tastier and healthier choices under-nutrition and obesity or being alternative that better suits their tastes.
p.8 aunch more foods and beverages
L overweight at a global scale requires
that are nutritious, especially for governments, health authorities, civil
mothers-to-be, new mothers, society and the private sector to work
and infants and children
together. To that end, we use our R&D
p.9 Further decrease sugars, sodium
and saturated fat network, our expertise and our brands
p.10 Increase vegetables, fiber-rich to help address malnutrition in all its
grains, pulses, nuts and seeds in forms, creating nutritious options that
our foods and beverages are also tasty and convenient, to support
p.11 Simplify our ingredient lists and a healthy diet.
remove artificial colors
p.12 Address under-nutrition through
Our work on offering tastier and healthier choices
micronutrient fortification
contributes to the following SDGs:
How we map our material
issues to the UN SDGs
Creating Shared Value progress report 2018 7
Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Launching more nutritious products
Our commitment: Launch more foods and beverages that are nutritious,
especially for mothers-to-be, new mothers, and infants and children.
Why it matters Making nutrition affordable Ensuring quality nutrition
Progress against our objectives
Income level should not determine for babies
Nestlé was founded on a promise
whether someone can or can not In Europe, we launched NaturNes By 2020: In both developed and
to deliver nutritious food to those
enjoy nutritious food. We’ve Bio in 2018, a new generation of developing countries, design and launch
who need it. Today, that spirit is foods and beverages that address the
launched a range of popularly baby foods that delivers better
reflected in our goal to transform daily nutritional needs and key nutritional
positioned products to enable nutrition and taste. Made with gaps of infants, children up to age 12,
our recipes, making it easy for
consumers at all income levels to organic ingredients, the NatureNes new mothers and mothers-to-be.
people around the world to
access quality food that provide range (including carrots, spinach), In progress Over 1300 new
consume healthy, affordable and
nutritional value at an affordable uses a unique steam cooking products were launched in 2018
tasty foods and beverages. addressing specific nutritional needs
price and portion size. process that helps preserve and gaps of babies, children, expecting
nutrients and flavor. Recipes take women or new mothers.
What we are doing Meeting the nutritional needs into account the right balance of
Meeting demand
of the next generation micronutrients, the quality of
In Latin America, we expanded our essential fatty acids, and for flexitarian and
In 2018, we launched over 1300
range of nutritional products potentially allergenic ingredients vegetarian diets
new nutritious products for babies,
through the acquisition of food and other ingredients that could be
children, expecting women or new The demand for plant-based
company Terrafertil. Its flagship harmful to a baby’s fragile system.
mothers. We also transformed foods is increasing. To satisfy
brand, Nature’s Heart, provides
existing products, adding more that need, we’ve created new
healthy, plant-based natural snacks Read more about product
vegetables, whole grains, milk, lean products such as Coffee-mate
that are good sources of vitamins quality and safety
proteins, and essential vitamins Natural Bliss creamers, Lean
and iron. Meanwhile, following
and minerals. By total sales, 82.5% Cuisine plant-based meal
30 years of research, Nestlé has
achieved a new scientific
of our foods and beverages now 82.5% of all options and our Garden
have Nestlé Nutritional Foundation
breakthrough to develop an infant Nestlé products, Gourmet range in Europe and
(NF) status, up from 82.1% in 2017, the Middle East.
formula containing human milk
including 93.1% of our products including 93.1% of those
oligosaccharides, which are key
consumed by children (compared consumed by children, Read more about our
components of breast milk.
with 92.5% in 2017). have achieved NF status Garden Gourmet case study
Creating Shared Value progress report 2018 8
Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Reducing sugars, sodium and fat
Our commitment: Further decrease sugars, sodium and saturated fat.
Why it matters in public health-sensitive nutrient sugar and sweetness. We are also
Progress against our objectives
reduction. In both adults and helping to change consumer tastes,
Overconsumption of sugars, children, WHO recommends offering popular ready-to-drink
By 2020: Reduce the sugars we add in
sodium and saturated fat can reducing the daily intake of free products with various sugar and our foods and beverages by 5% to
contribute to dietary and health sugars to less than 5% of total no-added sugar options. support individuals and families in
problems and to increases in energy intake (conditional meeting global recommendations*.
obesity, diabetes and recommendation). Currently, Reducing sodium in In progress 0.8% of sugar
cardiovascular disease. Reducing removed from our foods and beverages.
around 45% of our foods and our products
consumption of these nutrients can beverages provide less than 5% By 2020: Reduce the sodium we add in
Our team in the Middle East has our products by 10% to support
contribute to improving public sugars (added), enabling consumers
been gradually continuing to individuals and families in meeting global
health. So we are undertaking to use those products while meeting recommendations*.
reduce sodium in Maggi soup. We
complex reformulations of our the WHO’s strict conditional Reducing sugar in our In progress 2% of sodium
have also removed ingredients that
foods and beverages to be part of recommendation. Of the 55% chocolate drinks removed from our foods and beverages.
consumers do not easily recognize
the solution. We do this carefully, remaining, 45% are in scope of our By 2020: Complete the 10%
and increased vegetable content Nestlé Indonesia launched an
ensuring that these changes don’t sugars commitment and 10% are commitment taken in 2014, to reduce
per bowl in the Maggi 11 improved Milo chocolate malt saturated fat by 10% in all relevant
affect the taste or texture of our not relevant as their sugar content is
Vegetables Soup. We have also drink with 25% less sugar. products that do not meet the NF criteria
products, which may cause regulated; for example, as per with respect to saturated fat*.
reduced sodium in this product In Singapore, we have
consumers to switch to less CODEX. We’re committed to In progress We have achieved 7%
by 25% since 2015. introduced the first Milo
healthy alternatives. reducing the sugars in the products of this objective and we are working on
powder with no added table the remaining 3% gap.
in scope by an average of 5% by the
Implementing our saturated sugar or artificial or natural
end of 2020 while retaining the *
These results apply to products
What we are doing tastes consumers enjoy. To date, we
fat commitments sweeteners, just more natural within the scope of our commitment,
Improvements to the manufacturing goodness from malt and milk. not to our global product range as
Our commitment to reducing have already implemented a 0.8% many of our products already meet
reduction, equivalent to around process of our popular Asian noodles recommended levels.
sugars, sodium and saturated Read more about our
10 000 tonnes of sugar. successfully reduced oil content Milo case study
fatty acids by 12%–16% per serving in the
We are actively working to reduce updated products launched in 2018.
Reducing sugar content
sugars, sodium and saturated fat in Next year, with the use of a locally 10 000 tonnes of
We are gradually reducing sugar in
products that can make a significant
cocoa malt beverage products
produced, nutritionally superior oil sugar removed
impact for our consumers. By containing 80% less saturated fat,
while also offering natural from our foods
aligning our commitment to WHO the saturated fat content will be
recommendations, we are leading alternatives with significantly less
reduced even further.
and beverages since
January 1, 2017
Creating Shared Value progress report 2018 9
Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Adding vegetables, fiber and whole grains
Our commitment: Increase vegetables, fiber-rich grains, pulses,
nuts and seeds in our foods and beverages.
Why it matters What we are doing We make every effort to ensure
Progress against our objectives
that in the process of increasing
Vegetables, grains, bran, pulses, Helping individuals and the nutritional profile of our foods
By 2020: Add to our products at least
nuts and seeds are all excellent families achieve balanced diets and beverages we don’t make our 750 million portions of vegetables,
sources of fiber, vitamins, minerals products less appealing to 300 million portions of nutrient-rich
We are increasing the amount of
and nutrients. Our studies about consumers through changes to grains, pulses and bran, and more nuts
vegetables, fiber-rich grains, and seeds.
kids’ eating patterns and gaps in texture, taste or appearance.
pulses, nuts and seeds in our In progress 170 million portions
their nutrition suggest that they
recipes through product innovation of vegetables added to our foods and
don’t eat enough of these Adding vegetables and
and renovation and remain on track beverages and 484 million portions of
ingredients, impacting their promoting fresh ingredients fiber-rich grains, pulses, nuts and
to achieve our objective by 2020.
growth, development and health. seeds, versus the baseline of 2016.
By the end of 2018, we had added We have been increasing the
So we’re putting more of them in
170 million portions of vegetables
Getting more whole By 2020: In addition to whole grain
amount of non-starchy vegetables in
our recipes. We also help families
(in the culinary category) and 484 grain† from breakfast already being the main ingredient in
our recipes, especially in our our ready-to-eat breakfast cereals for
by promoting healthy cooking at cereals
million portions of fiber-rich grains, prepared meals, sauces, dressings children and teenagers, all our
home and providing nutritional Nestlé-branded cereals that carry Green
pulses, nuts and seeds versus the and condiments. Getting children to Through Cereal Partners
advice on-pack and online. Banner will be a source of fiber* and
baseline of 2016. We have also eat vegetables can be particularly Worldwide (CPW), our joint made with whole grain**.
delivered more than 25 billion challenging; we aim to help parents venture with General Mills, In progress 96% of children’s
servings of whole grains since and caregivers by including we have set whole grain or teenagers’ breakfast cereals sold
2005, when we first started adding vegetables in snacks, sauces and requirements for our have more whole grain than any
them to our products. other ingredient.
innovations such as the new line of breakfast cereals. We want
Makaron pasta mixes (Poland),
*
All products that carry 3 g or more of
cereals that are popular with fiber per 100 g on pack nutrition table.
which provide vegetables in an easy children and teenagers to
Achieved goal to add to prepare mix. contain more whole grain
**
Having a minimum of 8 g of whole
grain per serving.
484 million portions than anything else. Our
of fiber-rich foods prominent on-pack Whole
Grain Tick helps parents
to our products
easily identify Nestlé cereals
containing at least 8 g of
whole grain per serving.
Read about CPW research
into whole grains † Whole grain refers to whole, unprocessed
grains containing 100% of the original kernel,
including bran, germ and endosperm.
Creating Shared Value progress report 2018 10Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Simplifying ingredient lists
Our commitment: Simplify our ingredient lists and remove artificial colors.
Why it matters inspired by the regional cuisines of Focusing on natural colors
Progress against our objectives
Punjab, Mumbai, Chennai and We complement this approach
Consumers increasingly expect to West Bengal, bringing local by removing artificial colors, and By 2020: Continue removing
know what is in the foods and consumer tastes and preferences other additives such as emulsifiers, unfamiliar ingredients.
beverages they buy. They want to into innovation. from our foods and beverages. In progress We’re transforming
be able to recognize the ingredients our culinary products by simplifying
During 2018, the volume of in-scope
listed on the label for a variety of Supported by a network of nutrition recipes and replacing ingredients that
artificial colors we purchased fell consumers don’t easily recognize.
reasons, such as ensuring that the experts, we are working to find by 13.2%.
content is nutritious, that it fits a suitable replacements for the By 2020: Remove all artificial colors
lifestyle or health concern, or that from our products*.
ingredients we plan to phase out We are also working with markets In progress 13.2% decrease
it is sustainably manufactured. over the next couple of years. We and business units around the in artificial colors (based on
This means providing simple, clear have already started researching tonnage purchased).
world to overcome the challenges
information about our products, options, both within our own R&D of changing the remaining artificial *
This objective does not currently
and removing unfamiliar and manufacturing operations and apply to our pet food products.
colorant compounds in our
ingredients from our recipes. in collaboration with suppliers. formulations, such as the difficulty
in matching the brilliance or hue of Ruby chocolate comes
Measuring our progress to the UK
What we are doing artificial colors and the higher cost
We have set up a system that of some non-artificial colors.
Developed in collaboration
A move toward ‘kitchen enables us to track the change in
with Swiss chocolatier Barry
cupboard’ ingredients weight of ingredients we use in our
Callebaut, our new Ruby
Through the Maggi Simply Good recipes and those ingredient names
chocolate KitKat
initiative, we’re transforming our that are disliked or not understood
demonstrates Nestlé’s
by consumers. Along with this,
culinary products by simplifying 13.2% decrease commitment to developing
recipes, and replacing ingredients we collect information on concrete
in artificial colors new, innovative products
that consumers don’t easily cases in which ‘unfamiliar’
without the use of
recognize with more familiar ingredients have been or are being
artificial ingredients.
alternatives, such as vegetables, removed from our recipes. These
herbs and spices. Nestlé India’s case stories are communicated Read more about our Ruby
recent Maggi Masalas of India through this and other publications chocolate case study
noodle range, for example, was to illustrate the extent of our work.
Creating Shared Value progress report 2018 11Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Micronutrient fortification
Our commitment: Address under-nutrition through micronutrient fortification.
Why it matters daily allowance of the respective companies assessed by the
Progress against our objectives
micronutrients, helping reduce the 2018 Access to Nutrition Index™
About a third of the world’s risk of wide-scale deficiencies. In (ATNI) in the category of
By 2020: Reach millions of children
population suffers from India, where the latest National Addressing Undernutrition. and families with fortified foods
deficiencies in essential vitamins Family Health Survey showed 53% and beverages.
and minerals (Global Nutrition of women and 22.7% of men have Supporting collective action In progress 106 million children
Report), leading to impaired iron deficiency, 2 billion servings on addressing nutritional gaps and families reached with fortified
growth, physical and intellectual foods and beverages.
of our Maggi iron-fortified Masala
In 2018, we participated in 10
development and compromised noodles were sold in 2018. This By 2020: Initiate or support collective
initiatives, both global and local in action to reduce micronutrient
immunity. Such impacts will cost was the first full year since the
nature, to reduce micronutrient deficiencies in 10 countries.
society an estimated USD 2.1 trillion product was launched to help
deficiencies, including: In progress In 2018, we
(CHF 2.12 trillion) every year by reduce the deficiency level. In India participated in 10 initiatives, both
2025 (ATNF). In response, we and Pakistan, our fortified cereal • Organizing an awareness-raising global and local in nature, to reduce
fortify popular foods and beverages for infants, Cerelac, is our most event with GAIN, Cargill, the micronutrient deficiencies.
with micronutrients that are effective product for reducing International Federation for Supporting Egypt’s By 2020: Continue to develop the supply
unavailable or deficient in local Spina Bifida and Hydrocephalus, chain for biofortified crops and expand
deficiency levels. battle against anemia our fortified portfolio.
diets, focusing on children and Harvest Plus and the
In progress We are prepared to
families in developing and high- We delivered 184.7 billion servings Government of Sudan to discuss With the world’s second-
buy at least 1000 tonnes of biofortified
priority countries. of fortified foods and beverages possible solutions at the UN highest prevalence of iron maize from Nigeria a year, and are
incorporating at least one of the Committee on World Food deficiency anemia (IDA) always seeking new collaborations to
costing the nation billions of build the supply chain.
Big 4 micronutrients (iron, iodine, Security hosted by the Food and
What we are doing vitamin A and zinc) in 64 countries Agricultural Organization (FAO). dollars, Egypt’s new 2030
with higher vulnerability to Vision understandably
Making fortified foods • Developing an advocacy toolkit to
micronutrient malnutrition in 2018. includes a focus on better
and beverages accessible help our markets bring fortification health and nutrition. Can a By the end of 2018,
Of our popularly positioned
and affordable up the political agenda. multichannel campaign to our fortified foods and
products for lower-income
To ensure our efforts reach people consumers, 83.9% were also • In our Central and West African reach 10 million people over beverages had reached
on lower incomes, we fortify market, sharing our expertise in the next five years help to
affordable products like Maggi
fortified with at least one of the Big 106 million children
4 (as defined by the WHO). As a bouillon fortification at the halve IDA levels by 2030?
condiments and noodles, cereals Bouillon Summit organized by the
and families
result of our global efforts, we
and children’s milks. We include at ranked second out of the 18 largest Bill and Melinda Gates Foundation Read more about our in eight countries
least 15% of the recommended food and beverage manufacturing and Helen Keller International. Egypt case study
Creating Shared Value progress report 2018 12Creating Shared Value Individuals and families Communities Planet Reporting and governance
Why it matters Our contribution
The link between noncommunicable diseases In line with the UN SDGs covering zero hunger,
and malnutrition in all its forms is well- good health and reduced inequality, we’re
established. More than 1.9 billion adults are helping individuals and families throughout their
overweight, and 41 million children are lives, from conception to old age. We work with
overweight or obese, raising the risk of dying our many partners around the world to promote
from heart disease, stroke, diabetes and some balanced diets, age-appropriate portions and
cancers (WHO). At the same time, around home cooking. We provide clear nutritional
45% of deaths of children aged under 5 are information and easily understandable guidance
linked to under-nutrition. on-pack and in our marketing communications.
Through our brands, we promote activities and
For many of us, finding the time to eat well isn’t sports programs that inspire people – especially
always easy. People increasingly consume food children – to eat well and exercise more.
on the go or prepare convenience meals. Even
when people do try to eat healthily, they are In 2017, we achieved the objectives we set out in
faced with conflicting nutritional advice and our commitment to market to children only
Inspiring people to lead confusing labels. choices that help them achieve a nutritious diet.
This commitment is now embedded through a
healthier lives
new policy on marketing to children in 2018.
Our commitments to inspiring Malnutrition comes in many forms:
people to lead healthier lives under-nutrition, obesity or being Launching organic versions of family-
p.14 Apply and explain nutrition information overweight, and micronutrient favorite breakfast cereals
on packs, at point-of-sale and online deficiencies. Combating malnutrition
We want to make it easier for individuals and
p.15 Offer guidance on portions for remains one of the greatest global
our products families to make healthy choices with the
health challenges. We work with many
p.16 Leverage our marketing efforts to brands they love. In September 2018, we
promote healthy cooking, eating partners around the world to encourage launched organic versions of family-favorite
and lifestyles balanced diets, healthy hydration and Nestlé breakfast cereal brands Chocapic,
p.17 Empower parents, caregivers and active lifestyles. Nesquik and Cheerios.
teachers to foster healthy behaviors
in children
p.18 Support breastfeeding and protect The range is made with the same high-quality
it by continuing to implement an ingredients you would expect from a Nestlé
Our work on inspiring people to lead healthier lives
industry-leading policy to market breakfast cereal, and officially certified
contributes to the following SDGs:
breast-milk substitutes responsibly
organic. Similar to their conventional versions,
p.19 Inspire people to choose water to
the new organic varieties contain whole grain
lead healthier lives
as the number one ingredient and are free
p.20 Partner for promoting healthy food
environments
How we map our material from artificial colors and preservatives.
issues to the UN SDGs
Creating Shared Value progress report 2018 13Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Providing nutritional information
Our commitment: Apply and explain nutrition information on packs,
at point-of-sale and online.
Why it matters permitted by national regulations. Improving and extending
Progress against our objectives
This outlines the nutritional additional information online
We have a responsibility to composition of a typical serving by
Consumers are demanding more By 2020: Continue providing detailed
communicate about our foods displaying the contribution of the
nutritional information, but with product nutrition facts with daily value
and beverages, including the product to someone’s daily intake. percentages, ingredients and allergens,
limited space on-pack we remain
ingredients they contain and their and add special diet information, nutrition
committed to providing that detail labeling explanations and healthy eating
nutritional value, in an easy-to- We continue to provide relevant
through corporate websites, brand tips on all our relevant packs, as well as on
understand way so that consumers nutrition information on the back our websites and e-retailer sites, to better
sites and/or e-commerce
can make informed choices. of our product packaging, using enable informed choices.
platforms. We are currently
With the growing use and our Nestlé Nutritional Compass®. In progress 87.3% of our relevant
reviewing the main online
capabilities of mobile devices, This provides a standardized products have GDA-based labels
platforms for providing nutrition and 95.6% of our products sold
we’re able to share more nutritional table and tips on how
information and reshaping our worldwide display the Nestlé
information online and aren’t the product fits into a healthy Nutritional Compass®.
initiatives and will report on
limited by the space available on lifestyle. The Nestlé Nutritional 73.7% of relevant foods and
progress in future reports.
our packaging. Compass is displayed on 95.6% beverages designed for children
of our sales. Providing online carry GDA-based labels.
information
What we are doing We continue to engage with health 73.7% of relevant We liaise with governments
Empowering consumers authorities, stakeholders and the
food and beverage industry to
foods and beverages and industry associations
through clear labeling on-pack designed for children to improve the availability
evaluate new labeling approaches
To help individuals and families of nutrition information to
that could harmonize labeling carry GDA-based labels
make informed choices about our consumers. In the United
foods and beverages, we provide
schemes between different (based on children’s States, Nestlé has joined the
countries while complying with all
clear, science-based nutritional reference values) SmartLabel® transparency
regulatory requirements. We have
information on-pack. We display initiative, providing online
also joined voluntary initiatives
guideline daily amounts (GDAs) on information about nutrition,
locally, such as the ones in the UK
front-of-pack on 87.3% of our ingredients and allergens
and Australia.
relevant products, wherever for around 87% of its
applicable portfolio.
Read the full story
Creating Shared Value progress report 2018 14Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Offering portion guidance
Our commitment: Offer guidance on portions for our products.
Why it matters With clear information on-pack,
Progress against our objectives
Nestlé Portion Guidance also helps
Around the world, expanding consumers consider appropriate
By 2020: Continue providing guidance
portion sizes are contributing to portion sizes when consuming our on portions globally on all children’s
imbalanced eating habits and foods and beverages. With an and family product packs, and add
leading to adverse health engaging and intuitive way of frequency of consumption indications
outcomes. Conversely, smaller on relevant products.
providing guidance through
In progress 65.4% of our
portions of vegetables, whole portions, we aim to help individuals children’s and family product packs
grains and milk cannot deliver the and families understand the provide Nestlé Portion Guidance™.
required levels of daily nutrition. nutritional value of our foods and By 2020: Extend our guidance on
As the largest global food beverages by redefining their portions to our consumer recipes, and
manufacturer, we have a unique portion habits. relevant teenager and adult products.
opportunity to help guide In progress We work with dietitians
individuals and families to pursue a Physical and online guidance in the US to help them better engage
with their communities on portion
healthy diet through informed on serving sizes guidance and consumer recipes.
choices and our Nestlé Portion
Nestlé Portion Guidance is made By 2020: Gradually increase the proportion
Guidance™ initiative. Using our products to make a difference of guidance on portions provided through
available in a variety of ways,
product form, pack design, serving device
through product form, pack design, Through our Nestlé Portion Guidance™ initiative, we encourage or dispenser to make it even more intuitive
What we are doing website content illustrations and, age-appropriate portion sizes on our products and packs. This helps than on-pack messaging.
when possible, a serving device or equip consumers when they plan, buy, prepare and serve products. In progress 12.2% of our
On-pack information about dispensing machine. We also aim Our recipe websites share this guidance with home cooks and children’s and family portfolio provide
appropriate portions to make our recipe sites more people seeking more detailed information – such as Nestlé France’s
Nestlé Portion Guidance through
product form and 12.6% do so through
Based on dietary recommendations accessible, searchable and user Croquons La Vie website, which, using colorful visuals, allows pack design.
from leading organizations such friendly by displaying portion consumers to compose balanced meals with recipes and portion
as the WHO, as well as scientists, information. Of our children’s and sizes adapted to their needs.
policymakers and health family products, 65.4% provide 65.4% of our children’s
practitioners, Nestlé Portion Nestlé Portion Guidance, with Read the full story
and family products
Guidance is designed to encourage 12.2% through product form and provide Nestlé
age-appropriate portion sizes. 12.6% through pack design. The
figures related to extending our
Portion Guidance
It helps redefine portions,
particularly for energy-dense guidance on portions to relevant
foods and beverages. teenager and adult products will
be reported by 2020.
Creating Shared Value progress report 2018 15Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Marketing healthy choices
Our commitment: Leverage our marketing efforts to promote
healthy cooking, eating and lifestyles.
Why it matters What we are doing Progress against our objectives
We interact with billions of Through Nestlé for Healthier Kids,
By 2020: Double the outreach of our
individuals and families every day, we’re focusing on delivering
efforts to promote healthy cooking and
with our products, services and communication, information and eating and healthy lifestyles for
communications. We want to put knowledge to parents and individuals, families and their pets.
our expertise and global reach to caregivers around good nutrition. In progress In 2018, we increased
good use, inspiring consumers to Our Maggi brand provides recipes the amount of marketing expenditure
on healthier categories by 30%
cook at home, eat a balanced diet promoting the use of vegetables (compared to 2016), to promote
and exercise more. and other fresh ingredients in healthier cooking, eating and lifestyles
healthy, tasty, balanced home- among individuals and families.
We want all children to have a cooked meals. In Thailand, we
healthy start in life. That is why we have launched cooking clubs that
follow strict standards regarding provide advice, mostly online, on
advertising and marketing and do not preparing balanced meals; and in
market to children under 6 years of Australia, Maggi aims to make
age. We only market foods and weeknight cooking achievable
beverages to older children (aged through its marketplace line of
6–12) that are part of a nutritious and stir-fry mixes.
balanced diet. These products must
Maggi promotes healthy home cooking in new
meet strict nutrition criteria under our We are also focusing activities on
Policy on Marketing Communication breakfast foods. In many cases, online series
to Children. children are not eating healthy Aligned with one of its Simply Good commitments – to raise awareness
breakfasts or are skipping breakfast and contribute to people’s knowledge of healthy lifestyles, cooking
altogether. We know the importance and nutrition – Maggi has launched a new online series, Yelo Pèppè.
of a nutritional breakfast, and that an This 13-week nutrition education series celebrates contemporary
on-the-go solution is better than no African cuisine and highlights the many challenges that modern
breakfast at all. So, in the US market, families face in trying to balance healthy diets and the demands of
we have launched ready-to-drink modern life. The weekly program, available on Maggi’s YouTube
breakfast beverages to provide the channel, also allows viewers to access recipes and nutrition tips.
essential nutrients kids need, such
Read the full story
as Nesquik SuperBreakfast protein
breakfast milk drink for kids.
Creating Shared Value progress report 2018 16Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Promoting healthy behaviors in children
Our commitment: Empower parents, caregivers and teachers
to foster healthy behaviors in children.
Why it matters ambition to help 50 million children
Progress against our objectives
lead healthier lives by 2030.
Today, around 41 million children
By 2018: Maintain existing Nestlé
under 5 years of age are considered Supporting parents and Healthy Kids Global Programs, while
overweight or obese, and 155 million caregivers in the first 1000 measuring their impact on children based
are stunted due to under-nutrition. on five globally defined goals: eat
days of life nutritious and diverse meals, manage
Adopting good nutrition practices
from an early age gives children a Nestlé Start Healthy Stay Healthy portions, choose water, play and be
active, and maintain good hygiene habits.
better chance of growing up fit and provides science-based nutrition
In progress 9.6 million parents in
well. We use public health data and services to parents and caregivers in
over 50 countries are currently
our own research to inform our the critical first 1000 days from registered with Nestlé Start Healthy
products and services; in turn, these conception to a child’s second Stay Healthy.
give parents, caregivers and birthday. Our services, mainly online, By 2020: Support 50 million children
teachers the tools and advice they include an engaging e-learning through our nutrition education and
course that turns the latest scientific behavior change programs, an important
need to keep kids active and healthy. milestone toward our wider 2030 ambition.
findings into simple, practical
In progress 29 million children
feeding advice. There are currently reached by Nestlé for Healthier Kids
What we are doing 9.6 million parents in over 50 programs in 86 countries around
countries registered with Nestlé the world.
Combining our actions into Start Healthy Stay Healthy.
one flagship initiative
We also develop innovative foods
Fostering healthy habits in Russia
Nestlé for Healthier Kids brings
together all our efforts that support and beverages to meet the key Seven-year-old Mikhail, from Moscow, is one of 8 million children 29 million children
parents, caregivers and teachers, nutritional needs of mothers-to-be, to benefit from Nestlé Russia’s award-winning Good Nutrition reached by
ranging from product reformulation new mothers and children, as well program since the project’s inception. Running for nearly two
as more sustainable foods. Our decades, the initiative complements the school curriculum with
Nestlé for Healthier Kids
to education and lifestyle services.
This program now encompasses a Completely Gerber range of baby 120 hours of additional nutrition education, provided over three programs globally
range of our key initiatives foods in North America is being years. Using materials created in partnership with the Institute
including Nestlé Start Healthy Stay relaunched with increased of Developmental Physiology, one of the teachers involved, Read more about Nestlé
Healthy, Choose Water and our vegetable and grain content and Irina Viktorovna Kazarina, promotes the six habits defined by for Healthier Kids
Good Nutrition program to name a organic options; and in Europe we the Nestlé for Healthier Kids global program.
few. Launched in May 2018, Nestlé have launched NaturNes Bio, a
Read the full story
for Healthier Kids is present in 86 range of baby foods using
countries and supports our organic ingredients.
Creating Shared Value progress report 2018 17Creating Shared Value Individuals and families Communities Planet Reporting and governance Read more about this commitment
Supporting breastfeeding
Our commitment: Support breastfeeding and protect it by continuing to
implement an industry-leading policy to market breast-milk substitutes responsibly.
Progress against our objectives
Why it matters We foster breastfeeding-friendly External recognition By 2018: Ensure that all provisions
workplaces through our Maternity for our efforts supporting breastfeeding in our Maternity
The nutrition mothers and babies Protection Policy. We also support Protection Policy are implemented.
Nestlé has been consistently listed
receive during the first 1000 days of the efforts of the UN-backed Every Achieved We have implemented
in the FTSE4Good responsible
life is critical for a baby’s growth and Woman Every Child movement to our Maternity Protection Policy across
investment index since 2011. In May all our markets.
development. Studies have found promote breastfeeding. We have
2018, we remained in the top two in
that the period from conception set up breastfeeding rooms on our By 2020: Advocate for a breastfeeding-
the breast-milk substitute (BMS) friendly environment by supporting the
through pregnancy and up to a premises with more than 50 female
sub-index of the Access to Nutrition set-up of breastfeeding rooms in
child’s second birthday can help employees (425 sites). We have communities where we operate.
Index™ (ATNI). Nestlé’s FTSE4Good
shape our children’s future eating also installed 5437 breastfeeding In progress 5437 breastfeeding
membership was also confirmed
habits. That’s why we support the rooms for public use in India, rooms for public use installed in India,
again, following the June 2018
WHO’s recommendation to Bangladesh and China.
Bangladesh and China.
index review. We appreciate the
exclusively breastfeed infants for Ongoing: Ensure that the practices of the
recognition from independent third Reaching out to mothers Nutrition business consistently meet the
the first six months of life, followed Supporting World
by the introduction of adequate
parties, as this helps us build around the world FTSE4Good Index Breast Milk
Breastfeeding Week transparency in our processes. Substitutes criteria.
nutritious complementary foods, To celebrate World In progress Nestlé’s FTSE4Good
along with sustained breastfeeding We engaged thousands of
Read more about BMS Breastfeeding Week in membership was also confirmed
up to two years and beyond. healthcare professionals through compliance record Link again, following the June 2018
August 2018, we embarked
conferences, workshops and index review.
on a series of campaigns
partnerships with hospitals to Ongoing: Continue to strengthen our
around the world – both to
What we are doing reach an estimated 75 million 5883 Nestlé raise awareness about the
policy and procedures to maintain
industry leadership on the
people during World Breastfeeding
Promoting breastfeeding Nutrition employees issue and to make our implementation of the WHO Code.
Week this year. In Egypt, we
involved in marketing company a friendlier place In progress 28 countries audited
at Nestlé and beyond organized an online educational
for breastfeeding mothers. (internally and externally) against the
We promote the benefits of session on the country’s most breast-milk substitutes Nestlé Policy and Procedures for
From Ecuador to Egypt and
breastfeeding through dedicated popular forum for women, while completed training on the from Mexico to Poland, our
Implementation of the WHO
International Code of Marketing of
campaigns for World Breastfeeding our media campaigns reached WHO Code in 2018 multimedia campaign Breast-milk Substitutes.
Week. This includes an online 2.5 million people in Poland and
reached millions of mothers Ongoing: Continue to report publicly on
platform where parents can find 3 million in Ecuador.
globally, raising awareness our progress on the implementation of
tips, advice and information on of breastfeeding. our policy on the WHO Code.
breastfeeding and how to support In progress 5883 Nestlé Nutrition
their baby in the 1000 days from Read the full story employees completed training on
breastfeeding and the WHO Code.
conception to their second birthday.
Creating Shared Value progress report 2018 18You can also read
