Nestlé in Oceania Creating Shared Value Report 2014 - Nestle Australia
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Nestlé in Oceania Creating Shared Value Report 2014
Contents
2 A Message from Nestlé Oceania CEO Global Report
3 Highlights 2014
6 Our Brands
7 Stakeholder Engagement Investment & Divestments
Nutrition, Health & Wellness
8 Making our products heathier
8 Children’s products Nestlé in Society
Global CSV Report 2014
9 Reducing sodium, sugar and saturated fat
10 Portion guidance
10 Sensible confectionery sizes
11 Health Star Rating
11 Beyond the label
12 Marketing to children
12 Early childhood nutrition
13 Choose Wellness
13 Open House
14 Healthy Active Kids
16 Nutrition in Indigenous communities
16 Improving nutrition in the Pacific Islands
17 Training employees in nutrition
Environmental Sustainability Our People
18 Environmental indicators 2010-2015 30 Our workforce
18 Oceania 2014 31 Diversity
19 Waste and recycling 31 Employee engagement
20 Energy 32 NextGen
20 Transport and distribution 32 Training
21 Water 32 Reward and recognition
22 Responsible packaging 33 Safety
23 Responsible sourcing 33 Wellness
26 Sustainability Champions Network 33 Working smarter
Social Impact: Creating Shared
Value in Our Communities
27 Nestlé Community Environment Program
28 Milo Auckland Rugby Union
28 Milo and Cricket
28 Nestlé Golden Chef’s Hat Award
29 Feeding homeless cats and dogs
29 Donating food to those in a crisis
30 Supporting Red Frogs Australia
A Message from Nestlé Oceania CEO
Creating Shared Value is the approach we take
for our business to achieve superior shareholder
value while helping people improve their nutrition,
“
We believe that for a company to be
successful over the long term and
health and wellness. Besides nutrition, we focus
on water resource efficiency and conservation, and create value for our shareholders,
rural and community development, given their it must create value for society. At
critical importance to our business as well as to
our employees, farmers, suppliers, distributors and Nestlé, this means creating superior,
communities.
long term value by offering the finest
We recognise that being the world’s largest food and
beverage company brings both opportunities and products for our consumers, their
responsibilities. For this reason, Nestlé has made 38 families and pets to improve their
global commitments, each with specific objectives against
which we track and report each year. These commitments, nutrition, health and wellness.
and our progress against them, are detailed in the global
Nestlé in Society report which can be found online, giving We aim to enhance the lives of
stakeholders the opportunity to scrutinise our progress as
we actively manage our commitments to environmental, people and pets by offering healthier
social and economic sustainability. and tastier food and beverage choices
These commitments guide all of us at Nestlé, wherever
we are, in a collective effort to meet our objectives.
for all stages of life and to focus on
In this we are also guided by our Code of Business ways we can develop our business
Conduct, Corporate Business Principles and Management
and Leadership Principles. while at the same time improving
Our Nestlé in Society Oceania Report articulates how environmental conservation and
we live out those commitments and our responsibilities
in Oceania.
social stewardship.”
We’ve been in Oceania for well over 100 years. This means
we understand the importance of taking a long term
view, framed in a robust set of principles and values, with
respect for people, respect for cultures and respect for the
future of the world we live in at its core.
We welcome your feedback on our performance.
Trevor Clayton
CEO, Nestlé Oceania
2 Nestlé in Oceania
Highlights 2014
Global
1.7 million 73 FTSE4Good
We provided more Our Healthy Kids We remain the only infant formula
than 1.7 million women Global Programme manufacturer included in FTSE’s
in Asia and Africa reached more responsible investment index, based
with fundamental than 7.6 million on our performance in human rights,
businesses skills. children in 73 labour rights, responsible marketing
countries. of breast milk substitutes, and more.
Leader 376,000 11.4%
We were ranked number one by We trained 376,000 farmers. We’ve reduced
the charity Oxfam in its annual score Greenhouse Gas
card, ‘Behind the Brands’. emissions by 11.4%
The survey scores 10 food and since 2005.
beverage companies on their efforts
to improve food security.
Oceania
2 tonnes 16.2% 100%
Introduced a Reduced All products designed
paperless invoice waste-to-landfill for children met
system, saving two by 16.2%. Nestlé Nutritional
tonnes of paper Foundation criteria.
each year.
Leading the 640 million 497,527 kg
way Provided around 640 million serves of
micronutrient fortified foods to people
Provided 497,527kg
of food to support
Introduced a Portion living in the Pacific Islands. national food relief
Guidance symbol on charity, Foodbank.
packs to show how
much of the product
is a recommended
serve.
Nestlé in Oceania 3
Nestlé in Oceania
Nestlé Oceania is part of the Swiss-based global food and beverage Nestlé group.
Nestlé Oceania serves consumers across Australia, New Zealand, and countries throughout the Pacific including Fiji and
Papua New Guinea. Regional headquarters are located in Sydney, Australia.
Our operations include:
12 Factories 16 Nespresso
Retail
boutiques
5 Distribution
centres 20 Office
locations
Nestlé in Oceania numbers
5,496 3,671 270,032
employees product lines tonnes of product
in 2014
4 Nestlé in Oceania
Nestlé in Oceania
Key Locations
NEW ZEALAND
DARWIN
Cambria Park
Manukau
AUCKLAND
AUSTRALIA Gympie
Carole Park Marton (Purina)
BRISBANE (Chalet Patisserie)
Wellington
Smithtown
ADELAIDE Blayney Arndell Park
Blacktown Christchurch
PERTH (Purina) SYDNEY
Smeaton Grange (Purina)
Tongala Wahgunyah
Broadford
Altona MELBOURNE
Campbellfield
PACIFIC ISLANDS
PAPUA NEW GUINEA FRENCH POLYNESIA
Papeete,
Tahiti
Lae
Port Moresby
Suva
FIJI NESTLÉ OFFICE
NESTLÉ FACTORY
Noumea NESTLÉ DISTRIBUTION CENTRE
NEW CALEDONIA
NESTLÉ SALES OFFICE
Nestlé in Oceania *Cereal Partners Worldwide is a joint venture between Nestlé and General Mills 5
Our Brands
MER
COFFEE CREA
d Winning Since 1970
Awar
®
6 Nestlé in Oceania
Stakeholder Engagement
Investments & Divestments
Stakeholder Engagement Investments & Divestments
A fundamental aspect of Creating Shared Value is effective We completed significant investment projects at a number
communication and dialogue with our stakeholders. of our sites in 2014. These included:
In Oceania, we have a wide network of people, • Commissioning a new noodle line at the Lae factory –
organisations, communities and influencers whose the first of its kind in the Nestlé world.
input helps us to understand the issues important to our
• Finalising the $40 million move of Nescafé Café Menu
business. We identify the following groups as important to
from South Korea to the Smithtown factory.
our continuing business success.
• Completing a $65m upgrade and building a new
facility to produce wet cat food at the Nestlé Purina
factory in Blayney, creating an extra 100 jobs.
Key External Stakeholders • Relocating manufacture of Butter Menthols and
• Academia Soothers Liquid Centre from the Czech Republic
to the Blacktown factory.
• Communities
In February we announced the sale of the performance
• Consumers nutrition business, under the PowerBar and Musashi
• Customers brands, to USA based company Post Holdings.
• Governments
• Industry and trade associations
• International organisations
• Nutritionists and dietitians
• Non-governmental organisations
• Suppliers
As we continue to grow and develop as a business, it is
vital that we keep open lines of communication with our
stakeholders. For this reason, we meet regularly with
NGOs, academics, governments and others to listen
and learn from their criticisms and encouragement.
This dialogue strengthens and informs our efforts in
understanding and acting on relevant topics that are
The Nestlé Purina Factory at Blayney underwent a
specific to each of the countries we operate in $65 million upgrade.
throughout Oceania.
Nestlé in Oceania 7
Nutrition, Health & Wellness
Nestlé’s mission is to Making our
The system drives renovation of
existing products and development
lead the industry in products healthier of new ones, with a focus on
nutrition, health and nutrients such as sodium, trans fat,
wellness. Our mission Providing nutritionally sound saturated fat, sugar and energy.
products is one of our key
of “Good Food, Good objectives as a nutrition, health
• In 2013, 65% of our products
(by sales) and 73% of children’s
Life” demonstrates and wellness company. products met Nutritional
our commitment to In Oceania, dietitians work across Foundation criteria.
supporting healthy our businesses to ensure that • In 2014, 75% of products and
living and enhancing these values are embedded in our 100% of children’s products
company, and that nutrition is a key met Nutritional Foundation
quality of life every day element of planning new products criteria, achieving our target.
and at every stage for and reviewing older ones, and
our consumers, their ensuring effective implementation
of our commitments.
families and their pets.
All of our products are reviewed
In Oceania we are as part of a healthy balanced diet. Children’s
At the core of this review is the
continually striving to Nestlé Nutritional Foundation
products
improve the nutritional criteria, which is based on
profiles of our products nutrition science and public health At the end of 2014, 100% of
dietary recommendations from our children’s products met
and to reduce added leading organisations such as Nutritional Foundation criteria
sugars, sodium and fat. the World Health Organization following a rigorous two year
We work to provide and the Institute of Medicine. project to improve our products.
The criteria is regularly reviewed
easy-to-understand by nutrition experts and product
This required an individual solution
for each product, involving, as
nutritional information specialists to incorporate the latest
appropriate, reducing fat, sugar or
to help everyone make developments in public health and
sodium or adjusting portion sizes
science. Our products are evaluated
smart choices. We are against these criteria, using the
suitable for children.
working to address Nestlé Nutritional Profiling System, Where a children’s product could
issues such as obesity which determines their nutritional not be adjusted to meet the
value and whether they achieve Nutritional Foundation criteria for
in children and adults the Nestlé Nutritional Foundation children, we removed it from sale.
through education, Status.
research and creative
partnerships.
75% 100%
of products met of children’s
Nutritional products met
Foundation Nutritional
criteria, Foundation
achieving our criteria,
target in 2014. achieving our
target in 2014.
8 Nestlé in OceaniaReducing sodium, sugar
and saturated fat 30% 19%
In 2014 we reduced In 2014 we reduced
Nestlé has made global sodium by 30% for sugar by 19% in our
confectionery and confectionery and
commitments to reduce
snacks products snacks products
sodium, sugar and saturated which did not which did not
fats in our products which meet Nutritional meet Nutritional
do not meet Nutritional Foundation criteria. Foundation criteria.
Foundation criteria, and to
remove trans fats.
In Oceania, we have long had
a commitment to renovate our
products. It is our experience
that for change to be successful,
it must be made slowly to allow
consumers to adjust to the new
taste; dramatic changes may
be rejected.
Over the years we have gradually
reduced the sodium in our
Maggi noodle and recipe mix
ranges. In 2014 we reduced
sodium in Maggi 2 Minute
Chicken Noodles by 10%, with
further reductions planned
across the range in 2015.
During the year we reduced
sodium by 30% for those
confectionery and snacks products
which did not meet Nutritional
Foundation criteria, well ahead of
the global goal of 10% over three
years. We also reduced sugar by
19%, and saturated fat by 23%.
Nestlé adopted a policy early
in 2014 to remove trans fat
from our products by 2015, UNCLE TOBYS Muesli Bars
and only naturally occurring
partially hydrogenated vegetable Recognising the preference of schools and parents for products made
oils would be excluded. We began without nuts, we removed nuts from the recipes of the entire range
working with the CSIRO to of Uncle Tobys muesli bars, and from the snacks factory. This followed
help us remove trans fat from an extensive project, including consulting closely with Allergy and
Le Snak, with a target set down Anaphylaxis Australia, to understand the needs and expectations of
for 2016. those managing allergies. The removal of nuts involved shutting down
our snacks factory for a week to clean out any traces of nuts from the
production line.
Nestlé in Oceania 9Nutrition, Health & Wellness
Portion Sensible
guidance confectionery sizes
Research has shown that Recognising the importance of portion size in treat consumption, we
controlling portion size can be reviewed the size of a number of confectionery products to align with
a powerful and effective tool Australian Dietary Guidelines which state that a discretionary food serve
in helping people maintain a should make up no more than 7% (600kj) of the daily energy intake of
balanced diet. an average healthy adult. We used lower kilojoule limits for products
typically consumed by children.
Consumers’ perceptions of
appropriate serving sizes for food A range of approaches was taken to resize the confectionery products to
have slowly increased, and as a more appropriate serving sizes. These included:
result, many people are eating
more and more.
In 2014 we introduced an
on-pack Portion Guidance device, King Sizes say goodbye
a simple visual tool to help We deleted King size bars in the Kit Kat Chunky
consumers know exactly how range in September, replacing them with the Kit
much of a product constitutes Kat Chunky Share Bar, down from 78 grams to
a recommended serve. The 70 grams per bar. We also introduced a less rich
consumer friendly icon is tailored 55 gram Kit Kat Chunky Caramel bar in October,
to each product; illustrating reducing it from three fillings to one filling.
exactly how much of that product
represents a recommended
portion size in line with the
Australian Dietary Guidelines Reshaping our chocolate blocks
serve sizes. Recognising that consumers have multiple cues
Introduced initially to that tell them what an appropriate portion size
confectionery, the Portion is, we reshaped our chocolate blocks, without
Guidance device will be rolled out changing their total weight. Now one row – the
more widely across our range. amount typically eaten by a consumer in one sitting
– is an appropriate portion size.
Perfect Portion:
On pack Reducing Killer Pythons
illustration To much media fanfare we reduced the size of the
provides clear
serve size
Allen’s Killer Python from 47g to 24g each. It also
direction. became one of the first products in our range to
include the Portion Guidance device.
100%
By 2015 the Resealable Packaging
Portion Guidance In support of sensible confectionery consumption,
Device will be on
we also began rolling out resealable packs together
100% of kids’ and
family confectionery with on-pack messages encouraging sharing.
and snacks products. New packaging keeps products fresh and reminds
consumers that packs are multiserve.
10 Nestlé in OceaniaHealth Star
Rating
In July we announced that we
would introduce the Health Star
Rating system (HSR) on our
packaging, following approval
of the scheme by governments
in Australia and New Zealand.
The HSR system is a
government-led labelling initiative
introduced to help people
compare the healthiness of similar
packaged foods. The system
scores the overall nutritional value
of packaged foods, taking into
account a wide range of nutrients
to help consumers compare
foods so they can make healthier
choices.
Nestlé also commenced rolling
out its own program of consumer
education on the HSR system
through a range of channels.
By 2015 all relevant products will
carry a Health Star Rating on pack.
Beyond the Label
In April, Maggi led the launch of Beyond the Label QR codes on pack
providing consumers with detailed product information relating to nutrition,
consumption and environmental impact.
By the end of 2014, 200 of our products featured the QR codes on pack.
5.0
HEALTH STAR
RATING
100% 200
By 2015 all relevant By the end
products will of 2014, 200
carry a Health Star products featured
Rating on pack. the QR codes
on pack.
Nestlé in Oceania 11Nutrition, Health & Wellness
The global Nestlé Nutrition
Marketing to Early childhood Institute (NNI) continues to
children nutrition help develop the next wave of
researchers in the field of early
Responsible, clear and ethical The benefits of proper nutrition nutrition in our region. In Australia
marketing is an ongoing during the critical first 1000 and New Zealand, NNI recognised
commitment for Nestlé globally. days of a child’s life on their emerging researchers from the
It is underpinned by our global growth and development Dietitians Association of Australia,
policy, and supported by local are well established. Good the Nutrition Society of Australia,
initiatives around marketing to nutrition during pregnancy and the DOHaD Society of Australia-
children. breastfeeding, and appropriate New Zealand and the Perinatal
complementary foods, can set a Society of Australia-New Zealand.
In 2014, there were two
child on the right path to lead a During the year, Australia also
instances where complaints
healthy life in the future. hosted the 4th South-East Asian
about advertising of Nestlé
products were made to the While breastfeeding is best for NNI Regional Symposium which
Australian Advertising Standards babies, when it is not available, focused on the importance of
Bureau (ASB) claiming they were scientifically developed infant protein nutrition during the first
marketing to children. In both formulas are the only appropriate 1000 days of life. More than 80
instances, the ASB determined alternative. Nestlé’s expertise health professional delegates
that Nestlé had not marketed to means we have a unique from nine countries attended the
children. opportunity to help healthcare two day symposium.
professionals and parents ensure
The audit program of the
infants receive appropriate
Responsible Marketing to Children
nutrition during this critical
Initiative (RCMI), to which Nestlé
window of life.
is a signatory, found five instances
of non-compliance under this code Our active support of
relating to a Wonka television breastfeeding includes providing
commercial being aired in information materials to
inappropriate time slots. This was healthcare professionals and
a result of network action (bonus mums, and supporting our own
spot allocation) or agencies not employees who are breastfeeding.
complying with our directives During Breastfeeding Week,
regarding placement. we provided additional lactation
education for employees from a
We will continue to provide
qualified lactation consultant.
instructions to our media buying
agencies to ensure compliance In 2014 we supported a follow-
with Nestlé’s RCMI commitment up of the Feeding Queensland
along with the company’s policies Babies study conducted by the
and external commitments Children’s Nutrition Research
around advertising to children. Centre in Brisbane. This is an
Continuing Education:
We will continue to strive for zero important Australian study looking Professor Maria Makrides,
non-compliance and to focus at trends in infant feeding practice Executive Director
on broader initiatives relating compared with current guidelines. Women’s and Children’s
to children, such as product Research Institute in Adelaide.
renovations and nutritional
educational initiatives.
12 Nestlé in OceaniaChoose
Wellness
Following a successful pilot
early in the year, Nestlé held
‘Choose Wellness’ events to
showcase our products and
the expertise we have to help
people adopt a healthy, active
lifestyle at six major shopping
centres in September in Sydney,
Melbourne and Brisbane.
The events offered free cooking
demonstrations, interactive
education activities on how to
read food labels, healthy eating
advice from Accredited Practicing
Dietitians and diabetes testing
from nurses from the Diabetes
Council. As well, Olympic
medallists together with Uncle
Tobys Ambassadors, Cate and
Bronte Campbell, helped children
navigate a climbing wall and other
Choose Wellness events: our team of MILO celebrates 80th birthday: at the
activities. nutritionists spoke to consumers at the Sydney Royal Easter Show, the same
Choose Wellness events at Westfield event where it was first unveiled
Nearly 200 Nestlé employees
Shopping Centres. to the world.
volunteered their time to talk to
consumers about our products
and hand out product samples.
Together with 52,000 sample Open
bags, Nestlé handed out more House
than 100,000 portion plates which
demonstrate what a balanced
meal looks like, and a range of In September we invited some
educational materials on topics of Australia and New Zealand’s
such as the Health Star Rating leading nutritionists to hear our
system, Australian Dietary nutrition, health and wellness
Guidelines and Glycemic Index. journey and the work behind the
scenes on our continuous product
improvement program.
Talking nutrition: Dietitians and
In New Zealand, we welcomed academics visit Nestlé in New Zealand
100,000 21 public health dietitians and
academics to our inaugural
at our Open House event.
Portion plates Open House while in Australia,
handed out at 13 nutritionists and key opinion
Choose Wellness leaders attended our second
events.
Sydney event.
Nestlé in Oceania 13Nutrition, Health & Wellness
Healthy Active Kids
The Nestlé Healthy Kids Program is in 73 countries and continues to
grow. In each country, we work with government, health institutes
and other partners to ensure that the program is locally relevant and
will make a difference, allowing kids to live healthier lives now and in
the future.
In 2014 in Australia, we rolled out a number of initiatives:
Healthy Active Kids website
We relaunched the website in January as a
more comprehensive resource for parents
and teachers. As a result, we achieved:
- 340% increase in views
- 194% increase in teachers accessing
the site
Healthy Active Kids: Our global
Healthy Active Kids school grants program helps children lead
More than 1000 schools applied to win one of five grants worth healthier lives.
$5000. The winning schools used the grants to support a program or
activity that would help their students be healthier and more active.
IAAF Nestlé Healthy Active Kids Program
As part of our global partnership with the
International Association of Athletics Federation,
we worked with Athletics Australia to introduce
athletics to the Australian Government’s Active
After-Schools program from May 2014. The program
gives children in after school programs access to
a professionally designed athletics program aimed
at building skills and encouraging participation.
Nestlé Healthy Kids Club
We launched the Nestlé Healthy Kids Club to support the children
73
The Nestlé Healthy
in our employees’ lives, whether they are their kids, grandchildren,
Kids program
godchildren or family friends. The Club is designed to promote a operates in
healthy lifestyle for children over the age of six. 73 countries.
14 Nestlé in OceaniaHealthy Active Kids
In New Zealand, our programs
included:
Be Healthy Be Active
This free teaching tool and student
resource focuses on teaching
the benefits of good nutrition
and regular physical activity for
students in years 7 and 8.
The program, developed in
partnership with the Millennium
Institute of Sport and Health
and the New Zealand Nutrition
Foundation, features lesson
guides, nutrition posters, online
journals, interactive activities and
downloadable healthy nutrition
booklets.
In 2014 the program reached
Be Healthy Be Active:
45,000 students. The Nestlé Healthy Kids partnership with the IAAF in New Zealand is building skills in
athletics – here with the support of British gold medallist and vice chairman of the
International Association of Athletics Federations, Lord Sebastian Coe.
Cook for Life
45,000 More than 600 young people from
South Auckland took part in Cook
New Zealand for Life, a program which teaches
students took teenagers and young people aged
part in the
13 to 18 how to make affordable,
Be Healthy
Be Active progam healthy food and improve their
in 2014. cooking skills. In 2015 the program
will launch a cookbook.
600
young people in
New Zealand took
part in the
Cook for Life
program.
Healthy Active Kids: Cook for Life
Nestlé in Oceania 15Nutrition, Health & Wellness
We also piloted the Maggi
Nutrition in Indigenous Pop-Up Kitchen in Coonamble, Improving nutrition in the
communities NSW. A team of our nutritionists Pacific Islands
and culinary experts gave 150
The Nestlé Aboriginal Youth students aged 12 to 17 two Healthy and nutritious food is
Development Program (AYDP) days of hands-on cooking often not readily available or
was conceived to make a demonstrations and nutrition tips affordable to many people in
contribution to close the during the August event. the Pacific, and many do not get
gap in Australia between the vitamins and minerals they
Indigenous and Non-indigenous need for good health.
Australians. With communities
For this reason, Nestlé offers
facing social and health
affordable nutrition through a
problems, life expectancy is
range of fortified products that
below the rest of the general
help to reduce the occurrence of
population, and health
micronutrient deficiencies.
conditions such as diabetes and
heart disease are wide spread. Foods such as Maggi 2 Minute
Noodles and Maggi Chicken
We believe our knowledge and
Bouillon cubes, as well as
expertise in nutrition, health and
Milo, Bear Brand and Sunshine
wellness can contribute to helping
milk powders are fortified with
Australia’s indigenous people
essential vitamins, calcium,
improve their diet and lifestyle.
iodine, iron and zinc which are
During 2014 we continued to recognised as deficient in the
support Role Models and Leaders local population. As a result, more
Australia (RMLA), a not-for-profit than 60% of our products sold in
organisation which operate Pacific region countries are now
Girls’ Academies across the Helping girls and young women: fortified.
nation and is the largest provider through the Mother Daughter program
we give families the skills to make In 2014, we provided more than
of educational initiatives that
healthy meals. 640 million serves of fortified food
empower girls through leadership,
to the population of 9.6 million in
sport and education. We extended
the Pacific region, an increase of
our Mother Daughter Nutrition
28% from 500 million serves in
Program to operate in all Girls’
2013. In association with these
Academies to help educate girls
programs, we also work with
and young women to make
regional governments to reduce
healthy meals with the resources
macronutrients of public health
available to them.
concern.
We formed a new partnership
with Tamworth Local Aboriginal
Land Council to run school holiday
programs for at-risk youth in the
region. During 2014 more than 40
Nestlé employees spent a week
in the community volunteering at 640 million
the school holiday camps. In 2014, we provided
more than 640 million
serves of fortified food
to people in the
South Pacific.
16 Nestlé in OceaniaIn Papua New Guinea, the
Improving nutrition in the Nestlé Hamamas Day interactive Training employees in
Pacific Islands continued roadshows have been operating nutrition
successfully since 2010. The
In addition, over the past three roadshows help villagers learn In line with our ambition to be
years we have progressively the basics of nutrition, healthy the world’s leading Nutrition,
reduced sodium in Maggi noodles diet, lifestyle and hygiene, giving Health and Wellness company,
sold and made in Fiji to meet the those living in even the most we believe nutrition is
targets of the Fijian Government remote parts of the country the everyone’s business at Nestlé.
and World Health Organization. opportunity to learn how to cook
healthy meals that complement For this reason, we now train all
This initiative has removed 33
the local diet and palate. In 2014, our employees using our internally
tonnes of salt from the Fijian diet.
we ran roadshows in 388 villages. developed Nutrition Quotient
In Papua New Guinea, new programme (NQ) which is
machinery installed at our factory In Fiji, the focus of the Khana designed to ensure everyone has
helped reduce the fat content Vinaka village roadshow program a strong foundation of nutritional
in Maggi noodles. This resulted moved to secondary school knowledge. An interactive
in a reduction of 330 tonnes of students. The program had e-learning program covering
saturated fat from the local diet previously travelled to villages subjects such as carbohydrates,
over a two year period. demonstrating how to cook vitamins, antioxidants and protein
healthy meals with the ingredients was developed, with other
In partnership with initiatives available to them. In the revised in-depth modules delivered
to improve the recipes of our version of the program, more face-to-face by the nutrition team.
products, we also run cooking than 1110 students took part in
and healthy nutrition programs for hands-on cooking classes, which Following the launch of the
local communities. also incorporated advice on online program for office-based
exercise and strategies to adopt a employees in 2013, we completed
healthy lifestyle. training for all English speaking
employees with computer access
in 2014, excluding those who
work for Purina PetCare.
For those without computer
33 tonnes access, we rolled out a series of
nutrition posters at factories in
We have removed Australia, New Zealand and Papua
33 tonnes of salt New Guinea.
from the Fijian
diet in the past From 2015 all new employees will
three years. participate in NQ training as part
of their induction.
100%
All new employees
will undergo our
nutrition training
program in 2015.
Improving nutrition in Fiji: Nestlé
Khana Vinaka village roadshow.
Nestlé in Oceania 17Environmental Sustainability
Our goal is that Nestlé Environmental Oceania 2014
products will not only indicators 2010-2015
be tastier and healthier
but also better for Over the past five years Oceania Reducing our environmental
has made significant progress in footprint in 2014:
the environment. In key environmental indicators.
Oceania, we continually
aim to reduce our
water and energy
use and our waste as
10%
Energy
3.3%
We’ve reduced
part of lessening the Greenhouse Gas
emissions by 3.3%
environmental impact
4.1%
in 2014.
of our operations.
Water
Environment
management and
protection is embedded
in our Corporate 5.1%
Greenhouse Gas 16.2%
Business Principles, Emissions Our waste
and we look to exceed management
programs have
regulatory standards
5.1%
reduced
waste-to-landfill
wherever possible. Waste for disposal by 16.2%.
Each manufacturing site
has individual plans,
called Eco-Reduction
Plans, that identify site-
specific improvement
2 tonnes
A paperless invoice
opportunities and system is saving
two tonnes of
become a key focus for paper a year.
each site in identifying
and implementing
efficiency measures.
18 Nestlé in OceaniaCutting down on waste
Waste and
The cereal and snacks factory at
recycling Wahgunyah, in Victoria, one of our
largest manufacturing sites, was
We are on track to achieve zero also the biggest contributor of
waste-to-landfill by 2017 in waste to landfill in 2013, producing
Oceania – three years ahead of 130 tonnes a month.
the global target. After a waste survey and audit,
In 2014 we reduced waste-to- an on-site recycling education
landfill by 16.2%, exceeding our program was introduced, together
target of a 10% reduction and with colour coded bins, an
bringing waste to 3,906 tonnes. initiative to compact waste, and
Nine sites within our region a new program to collect excess
exceeded the previous year’s food waste to sell as stockfeed.
targets for reducing waste. By May, the factory had halved
the amount of waste for landfill it
Since 2008 we have reduced
generated, and set a 2015 target
waste-to-landfill by almost 30%.
Cereals factory: Waste hulls from of keeping waste to 45 tonnes
We moved to paperless invoicing, cereals are now used as stockfeed. a month, which it is on track to
saving more than two tonnes achieve.
of paper annually. This system
eliminates the need for paper
invoices as well as the need to
print faxes or emails.
Turning waste into wares
We formed a partnership with TerraCycle, a company specialising in
difficult-to-recycle items, to recycle Nescafé Dolce Gusto used coffee
capsules into new products and materials.
The capsules are recycled into two streams; residual coffee grounds are
sent to an industrial composting facility while the plastic capsules are
melted down and made into a range of sustainable products such as park
benches, pavers and a range of home accessories. The partnership has
reduced the number of used pods going to landfill and a percentage goes
to a not-for-profit organisation.
TerraCycle also provides a route for recycling Nespresso Coffee capsules.
WASTE IS RECYCLED OR UPCYCLED
WASTE IS SENT INTO VARIOUS PRODUCTS
TO TERRACYLE
PRODUCTS CAN BE SENT
BACK TO TERRACYCLE
Nestlé in Oceania 19Environmental Sustainability
Energy Transport and
distribution
Our energy reduction strategy Nestlé Oceania has a complex
has two core activities: and diverse supply chain and
improving how we use energy depends on its suppliers in
across our operations, and order to produce and deliver
expanding the use of renewable high quality goods.
energy.
Manufacturing across a range
In 2014, our energy use per tonne of food and beverage categories
of product increased by 0.7%, means we procure a large
against a target of a 2% reduction. variety of commodities from
This reflected changes in product diverse locations. We work in
mix, trials linked to new product collaboration both with regional
lines and some planned reduction agencies and our global head
products not fully complete by office to manage procurement in
year end. Hot coffee: Spent coffee grounds are an efficient, effective and ethical
used as an energy source at the
Nescafé factory in Gympie. manner.
Around 29% of the energy used
in our factories in 2014 came from Nestlé Oceania moved more than
renewable sources, exceeding 270,032 tonnes of product, and
the global renewable energy the raw materials that made it, in
target of 20% by 2020. Most of As we work towards cementing 2014. For this reason, improving
our renewable energy comes Eco Reduction plans into our sites the efficiency and performance
from sawdust and spent coffee in 2015, Oceania is targeting an of our distribution network can
grounds. energy reduction of 0.3% per reduce costs, improve delivery
tonne of product. to customers and reduce
Percentage of energy that is
environmental impacts.
renewable at our sites:
• Smithtown – 84%
• Gympie – 68%
• Cambria Park – 33%
• Marton – 10%
29% 270,032 tonnes
of the energy used In 2014 Nestlé
in our factories Oceania produced
in 2014 came from and distributed
renewable sources. 270,032 tonnes
of product.
20 Nestlé in OceaniaWater
Rainwater runs the factory
While Papua New Guinea enjoys
The availability and quality of good annual rainfall, the factory
water is critical to producing at Lae was not leveraging the
the agricultural commodities resource. At the same time, poor
that are our raw ingredients, to local infrastructure and frequent
manufacturing quality products disruption to water supply made
for our consumers and to it difficult for the site to rely on
maintaining safe operations of town-water.
our sites. For this reason, water
A team from the factory
is a key focus for Nestlé.
developed a plan to allow the
In 2014, the amount of water used site to operate almost entirely
at our factories increased by 1.3% on treated rainwater. The site’s
Improving flow of containers
per tonne of product, against water tanks were increased to
The business faced a backlog a targeted 2% reduction. The capture 1748kj of water, which
of shipping containers at its major contributors to the increase is then treated onsite and used
distribution site in Lae, Papua included changes in product mix, throughout the factory.
New Guinea, with empty trials relating to new product lines,
containers sitting in the yard for By the end of 2014, 90% of the
and some reduction projects not
up to three months. water used at the factory was
completed by the end of the year.
treated rainwater. The factory
The team needed to find a Despite the overall increase in is on target to use treated
way to reduce the number water usage, a number of sites rainwater for 100% of its needs
of containers from 250 to reduced water consumption as by 2015.
80 while addressing double a result of their Eco Reduction
handling, reducing storage costs, Plans. In particular, Blayney,
improving the flow of containers which produces pet food for
around the supply chain network Nestlé Purina, reduced water
and boosting the freshness consumption by 18.2% during
of the product to consumers. the year, while the factory in Lae,
The challenges of transport in Papua New Guinea reduced water
Papua New Guinea, such as usage by 28.2% over the same
poor road infrastructure and period.
landslides which can block the
only route for up to three weeks,
heightened the challenge.
The team worked with suppliers
to understand and address the
challenges and developed a new
18.2% 90%
The Nestlé Purina By the end of 2014,
container tracking tool for the
factory cut its water 90% of the water
yard. This resulted in substantial usage by more used at the Lae
cost savings and a dramatic than 18%. factory in Papua
drop in idle containers. New Guinea was
treated rainwater.
Nestlé in Oceania 21Environmental Sustainability
Responsible
Packaging
Product packaging is crucial to prevent food waste, guarantee quality
and inform consumers. Improving the way we design our packaging, the
type of materials we use and the impact on the environment can make
an important contribution to environmental performance across the
product life cycle, and is an ongoing focus across our businesses.
Since 2007 every pack Nestlé has designed has been through the rigorous
PIQET program to assess its lifecycle. In late 2014 we replaced PIQET with
EcodEX (Ecodesign for Sustainable Product Development and Introduction)
to expand the scope of our packaging assessment. This new tool enables us
to assess the overall environmental performance of packed food products
throughout the entire life cycle, from ingredient sourcing to consumer use Nestlé partners with
and disposal. Planet Ark
As part of our ongoing packaging assessment program we undertook 10 We were the first company in
projects to improve the packaging design and as a result, reduced the amount Australia to sign up to a new
of material we used by 203 tonnes in 2014. online tool created by Planet Ark
These projects included: to help evaluate the recycling
criteria of our existing and future
packaging.
Nescafé Blend 43 & The Packaging Recyclability
Nescafé Gold compact pouches Evaluation Portal (PREP) is
The new compact pouch allows nearly 30% more able to identify the impacts
packs to be stacked on each pallet, reducing truck of combinations of different
movements, and greenhouse gas emissions packaging materials in the
compared with the glass jar. recycling stream early in the
design phase. The tool will also
assist in developing disposal
messages on pack.
Carnation resealable plastic can design
A new resealable plastic can design for
Carnation light cooking cream resulted in
lower environmental impacts.
Nescafé Short Black
Removing the dark tint from Nescafé Short
Black glass jars, allowing the jars to be recycled
203 tonnes
We reduced the
amount of material
During the year, our ongoing partnership with Arthritis Australia continued; we used in our
we work with them to improve the accessibility of our products, making them packaging by 203
easier to open for those with limited hand function. Butter Menthol, Soothers tonnes in 2014.
and Anticol introduced an easy opening re-sealable pouch
and special design features to make the packs more accessible.
22 Nestlé in OceaniaNestlé Cocoa Plan Nescafé Plan
Responsible Sourcing
The Nestlé Cocoa Plan aims The Nescafé Plan was launched
to encourage farmers to enter globally in 2010 to bring
cocoa farming as a livelihood of together Nestlé’s commitments
Our Responsible Sourcing choice, to improve the lives of on coffee farming, production
Guidelines focus on critical cocoa farmers and the quality and consumption.
social and environmental of cocoa we purchase, and for
challenges, with specific Over the 10 years of the Nescafé
cocoa-growing communities
requirements for high priority Plan, we are investing more than
to thrive.
ingredients, including cocoa, CHF500 million ($AU620 million)
coffee, palm oil, sugar, paper This is done by enabling farmers globally to help farmers produce
and dairy. It also provides to run profitable farms, through sustainable coffee and improve
a framework for us to work providing higher yielding cocoa their lives at the same time.
with suppliers to improve plants, training farmers and
The plan includes:
sustainability performance. rewarding them financially for
good quality cocoa. • Doubling the amount of
Nescafé coffee bought
It’s also about improving social
directly from farmers and
conditions by eliminating child
their associations.
labour and facilitating school
attendance and by sourcing • Purchasing 180,000 tonnes of
sustainable, good quality cocoa coffee from farmers every year.
in a way that ensures long term
• Bringing Nescafé supplier farms
supply, respects the environment
up to at least a basic level of
and provides traceability down to
externally recognised
farmer groups.
compliance 4C by 2015.
Globally, Nestlé purchased
• Distributing 220 million
400,000 tonnes of cocoa in
high-yield disease resistant
2014 with about a fifth sourced
plantlets.
through the Nestlé Cocoa Plan.
We also distributed around 1.6 • Reducing the amount of water
million plantlets and trained used in our coffee operations by
45,833 farmers. 30% and energy by 20%
by 2020.
By 2017 we expect to source
around 150,000 tonnes of cocoa
Sustainable Cocoa: Higher yielding,
disease resistant cocoa plants help through the Nestlé Cocoa Plan.
farmers produce sustainable cocoa.
In Oceania, we sourced 3953
tonnes of UTZ Certified cocoa
during the year. As a result, we
are able to claim that all our
Australian-made retail chocolate
bars and blocks and all our baking
chocolates are made from UTZ
3953 tonnes Certified cocoa.
$AU620 million
We sourced 3,953 Through the
tonnes of UTZ Nescafé Plan,
Certified Cocoa we are spending
during 2014. $AU620 million
improving the
lives of coffee
farmers.
Nestlé in Oceania 23Environmental Sustainability
The Nescafé Plan: Support of coffee farmers and their families in Papua New Guinea is
leading to higher quality, sustainably produced coffee beans. What is 4C?
4C is the baseline standard
for sustainability in the
Nescafé Plan in Oceania coffee sector. The 4C Code,
We have been implementing the Nescafé Plan in Papua New Guinea administered by the 4C
since 2012, identifying and assisting coffee farmers to grow 4C Association includes 28 social,
sustainable coffee. environmental and economic
principles for sustainable
In 2014 we continued to work with local partners to help coffee farming production, processing and
groups grow high quality 4C verified coffee, and as a result, improve the trading of green coffee. The
living conditions of their communities. A key component of this is our 4C Code also includes 10
agronomist who provides on the ground support and advice. Together Unacceptable Practices that
with a coffee exporting group, we are helping to establish farmer all 4C Members and producer
training schools and employ field officers who visit farms, teaching groups must eliminate before
growers how to produce higher coffee yields and run productive farms. they join the Association or
We are also supporting education through university scholarships, before claiming their coffee
and working with a farmer cluster to encourage schooling of younger is 4C compliant.
children.
An important part of our work in Papua New Guinea is supporting
women’s farming co-operatives in the Western Highlands to grow high
quality and sustainable coffee.
We sourced around 4,000 tonnes of 4C verified Arabica coffee beans
from Papua New Guinea in 2014, and a further 16,000 tonnes of of 4C
verified Robusta beans from various coffee producing countries. This
90%
resulted in around 90% of all the coffee used to go into the production In 2014, 90% of
the beans used to
of Nescafé Blend 43 at our Gympie factory being 4C verified in 2014. produce Nescafé
Blend 43 at our
In 2015 we are on target to ensure that 100% of the coffee is 4C
Gympie factory
verified, up from 75% in 2013. were 4C verified.
24 Nestlé in OceaniaPalm Oil
Globally, Nestlé has made a
commitment that its products
will not be associated with
deforestation.
In February we announced that
all the chocolate manufactured
at the Campbellfield factory had
transitioned to Roundtable on
Sustainable Palm Oil (RSPO)
segregated, certified sustainable
palm oil.
The use of segregated sustainable
palm oil ensures that it has been
kept within a system where it is
isolated from other palm oil – from
the mill and through the supply
chain until it leaves the factory.
This initiative is part of a larger In 2014 Nestlé Oceania purchased 6414 tonnes of palm oil.
global commitment we have
made to ensure our products are This was made up of:
not associated with deforestation. • 4,615 tonnes – RSPO Segregated
• 866 tonnes – Segregated and traceable back to the plantation
• 598 tonnes – RSPO Mass Balance
• 335 tonnes – GreenPalm certificates
In 2015 we will continue to move from palm oil covered by GreenPalm
certificates to more sustainably sourced palm oil.
We are on target to transition 97 tonnes of this palm oil to RSPO Mass
Balance, and a further 197 tonnes of the Book and Claim to RSPO
Segregated.
100%
All chocolate made
at our factory in
Australia uses
segregated,
certified
sustainable palm oil.
Nestlé in Oceania 25Environmental Sustainability
Oats
Sustainability Champions
Oats are one of our most Network
sourced commodities by
volume, and are used primarily
in our Uncle Tobys breakfast To be sustainable we need to
cereals and snack products. empower our employees to
help us. This year we created
As oats is a niche crop, it is critical the Sustainability Champions
to ensure we offer farmers a Network, groups of employees
competitive price at sowing time in corporate functions and in
to encourage them to include oats factories and tasked them with
in their crop rotation. supporting the company in its
For us to source oats that meet mission to achieve zero waste
our specifications for milling, to landfill.
nutrient levels and taste, we Since its inception, the
work closely with the National Champions have run a number
Oat Breeding Program run by of initiatives aimed at improving
the South Australian Research environmental indicators. This is
Development Institute (SARDI) helping extend environmental
– a partnership spanning nearly initiatives into offices as well
two decades. The National Oat Farmers create their own factories such as improved paper
Breeding program co-ordinates breakfast cereal use and recycling practices.
scientists and breeders to help For the last three years we
them develop oat varieties to have invited oats farmers to
meet the needs of farmers and the Uncle Tobys factory at
millers. These include producing Wahgunyah as part of the annual
oats with higher yields, disease Farmer Field Day.
resistance and certain milling
characteristics. The Farmer Field Day aims
to build strong and enduring
In 2014 we sourced 26,649 tonnes relationships with farmers and
of oats, with nearly 11,000 tonnes give them insights into the entire
sourced within 100km of the value chain. For most of the
Uncle Tobys factory at Wahgunyah 20 farmers who attended, it was
on the NSW and Victorian border. the first time they had seen
The projected oat harvest for 2015 how oats are milled and
is expected to be significantly processed into snack and
lower because of poor yields breakfast cereal products.
in NSW and Victoria which will
require us to source some oats
from Western Australia.
11,000 tonnes
of oats were sourced
within 100km of the
Uncle Tobys
factory in
Wahgunyah.
26 Nestlé in OceaniaSocial Impact: Creating Shared Value
in our communities
Our community Nestlé Community
partnerships, related Environment Program
programs and
sponsorship activities, The Nestlé Community Environment Program (NCEP), established in
2003 as part of the Nestlé Good Life Program, aims to have a positive
which come together impact on the environment in the communities in which we operate.
under the Nestlé Good
All Oceania factories are encouraged to undertake an annual community
Life Program, aim project focusing on improving the local environment. In the last 11 years the
to have the greatest NCEP program has supported community-based programs such as planting
possible impact by trees, water conservation, environmental learning, walking tracks and
school sustainable gardens and environmental education.
focusing on areas
where we believe we Projects at some of our
can add the most value; factories included:
food, nutrition and Broadford
health and wellness. We partnered with Broadford
Primary School in Victoria to
These are areas where establish a sustainable grassed
we can contribute our playing area with drought
expertise, scientific tolerant grass supported by a
computerised watering system.
insight and experience
Blacktown
to greatest effect. We We partnered with Conservation
also support a range Volunteers Australia to conduct
of environmental ‘Green Health’ bush care
activities at Nurragingy reserve
initiatives in our at Blacktown that involved bush
communities. regeneration and planting drought
resistant plants.
Sensory farm: studenta at Jones Hill
Smithtown Primary School in Gympie learn how to
grow their own vegetables.
We worked with Kempsey Shire
Council to upgrade a local park
with new play equipment, electric
BBQ and seating area.
Gympie
Cambria Park The factory in Gympie donated
Our factory in New Zealand more than $15,000 to help the
provided funding to develop Jones Hill State school build a
the gardens at Tangoroa and sensory garden that included
Papatoetoe schools. This project water features, native bees, an
is encouraging schools to become ant farm, a fish pond and array of
more environmentally sustainable foliage. The students can study
through growing their own the lifecycle of plants and insects
vegetables and learning about and improve understanding of
healthy eating. the environment through water
conservation, recycling and
environmental protection.
Nestlé in Oceania 27Social Impact: Creating Shared Value
in our communities
Nestlé Community Milo and cricket
Environment Program continued 30%
The number of
Tongala For more than 30 years, Milo young chefs entering
the Nestlé Golden
in regional Victoria, Nestlé Sports Development Programs
Chef’s Hat Award has
partnered with Kyabram College have inspired children to get increased by 30%.
to establish the Nestlé Agriculture out and enjoy the benefits of
and Sustainability Centre to physical activity early in life.
support ongoing agricultural
And for most of that time, Nestlé
education of students, families
Australia has partnered with
and the wider community.
Cricket Australia through our Milo
The project included landscaping
brands to support junior cricket
Nestlé Golden Chef’s
the site and establishing rainwater
development. Hat Award
tanks and a recycled watering
system to service the native In 2014, total participation rates
Nestlé Professional continued
plants, grasses and vegetable were up 23%, with a 30%
its support for Australia’s
garden. increase in schools participation
longest running culinary
driven by entry level programs
competition, the Nestlé Golden
include Milo in2Cricket, Milo T20
Chef’s Hat Award.
Blast and Active After School
Care. The competition is dedicated
Milo Auckland to helping junior and apprentice
Australian cricket captain Michael
Rugby Union Clarke was joined as Milo
chefs develop their cooking skills.
With the first event held in 1965,
Ambassadors by two rising cricket
the Nestlé Golden Chef’s Hat
Nestlé New Zealand and stars. James Faulkner and Holly
Award, run in partnership with the
Auckland Rugby have enjoyed a Ferling, both graduates of the Milo
Australian Culinary Federation, has
10 year partnership sponsoring in2Cricket program, were chosen
produced many great chefs.
junior registrations. as ambassadors to help support
the Milo T20 Blast and Milo 2014 saw the highest number
The sponsorship aims to
in2Cricket programs in partnership of entries in the competition’s
encourage young New Zealanders
with Cricket Australia. history, with a 30% increase in
to be active and embrace team
the number of young chefs
sport. Since the start of the
taking part.
sponsorship, junior registrations in
Auckland have grown by 85% to
7,500 children.
In a separate initiative, 137,000
school aged children took part
in a year-long calendar of events
focusing on exercise and nutrition.
The target is to reach 140,000
children in 2015.
Young and active: Milo in2Cricket gives Winning young chefs: Tara Bain and
children an introduction to cricket and the Rachel Male have earned themselves a
chance to learn skills such as teamwork name as two of Australia’s best young
and sportsmanship. chefs, named as Nestlé Golden Chef’s Hat
Award National Winners.
28 Nestlé in OceaniaDonating food to those
in crisis
In Australia, Nestlé continued
its long association with
Foodbank, an organisation
which distributes food to
a network of charities and
schools, which take it to those
in need.
New home: Our employees get the Hopping help: Red Frogs Australia helps
chance to volunteer at Animal Welfare During the year we donated keep kids safe.
League shelters around the country. nearly 500,000 kilograms
of food – enough to make up
6,663,370 meals.
As well, we supplied 3.8 million
Feeding homeless dogs serves of Uncle Tobys oats and
Supporting Red Frogs
and cats Vita Brits as part of Foodbank’s Australia
Key Staples Program to help
Our commitment to feed every satisfy the growing number Nestlé has supported the Red
dog and cat in Animal Welfare of Australians who don’t have Frogs Australia youth network
League Australia’s (AWLA) enough to eat. since 1997.
shelters around the country
We also step up in times of crisis, Red Frogs safeguards young
continues.
providing food to Foodbank to people at major events such
The donation by Nestlé Purina help communities affected by fire, as Schoolies Week, festivals
PetCare provides enough food to floor and natural disasters. and university parties
feed around 30,000 dogs and cats through harm minimisation
In New Zealand, we donated
in eight affiliated AWLA shelters. educational campaigns.
product to the value of $382,815
While the animals wait to be
to the Salvation Army to help in Red Frogs Australia was
re-homed they are fed a diet of
the charity’s relief efforts. established after its founder,
premium pet food Purina Pro Plan.
Andy Gourley, saw a need to help
Partnering with Animal Welfare young people stay safe during
League is just part of Nestlé Schoolies Week on Queensland’s
Purina’s broader commitment to Gold Coast. He soon discovered
ensuring that animals in shelters, that offering Allen’s Frogs Alive
as well as homes, receive quality to teenagers helped him make
nutrition and care. connections that enabled him to
make sure kids stayed safe and
In New Zealand we partner with
out of trouble. Since then, Red
animal welfare organisations
Frogs has grown to an army of
across the North and South Island,
1700 volunteers and is spreading
and in 2014 we donated $100,000
around the world.
worth of Purina Pro Plan and
Purina One to feed the cats and 3.8 million In 2014, Nestlé Australia donated
dogs in these shelters. We provided 16 tonnes of Allen’s Frogs Alive to
3.8 million serves the program.
of Uncle Tobys oats
to Foodbank.
Nestlé in Oceania 29You can also read
