Progress Report 2019 Creating Shared Value and meeting our commitments - Nestlé
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Creating Shared Value and meeting our commitments Progress Report 2019 Nestlé. Enhancing quality of life and contributing to a healthier future.
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 02
A message from our Global Compact LEAD company in recognition
of our ongoing commitment to achieving the
Last year, we also committed to achieve zero
net greenhouse gas emissions by 2050,
03 Creating Shared Value
Chairman and CEO
UN Sustainable Development Goals (SDGs). stepping up our climate change mitigation 05 Our 2020 commitments
efforts and embracing the most ambitious and progress
This report provides a detailed overview of
aim of the Paris Agreement. Among other
how Nestlé is making a difference across our 06 For individuals and families
Nestlé. Enhancing quality of three impact areas – individuals and families,
measures, we are expanding our range of
plant-based food options that have a better 07 Offering tastier and
life and contributing to a communities and the planet.
environmental footprint and can contribute to healthier choices
healthier future. In early 2019, we accelerated actions to a balanced diet.
13 Inspiring people to lead
tackle plastic waste and make good on our
Our work extends beyond the environment. healthier lives
Creating Shared Value lies at the very heart of ambition to make 100% of our packaging
We also announced a new gender-neutral
how we do business at Nestlé. Our approach is recyclable or reusable by 2025. We more 21 Building, sharing and
parental leave and support policy for our
built on the conviction that business can be a recently announced an investment of up to applying nutrition
employees, as part of our broader efforts to
force for good, by simultaneously creating CHF 2 billion to boost the market for food- knowledge
support diversity and inclusion. Our aim is to
value for shareholders and for society at large. grade recycled plastics and to accelerate the
support families and help provide children 24 For our communities
development of innovative sustainable
In 2019, we reaffirmed our support for the UN with the best start in life.
packaging solutions. 25 Enhancing rural
Global Compact. We were again named a development and livelihoods
In this report, you will find more details about
our progress as a company in the areas where
31 Respecting and promoting
we can make the biggest impact. The work
human rights
carried out during 2019 brought us closer to
fulfilling our 2020 commitments. We are on 36 Promoting decent
track to meet most of them and we will employment and diversity
continue to work hard to achieve the others. 40 For the planet
We look back on the work achieved over the 41 Caring for water
last decade with pride. Looking ahead, we
remain as committed as ever to Creating 46 Acting on climate change
Shared Value in 2020 and beyond. 49 Safeguarding the
environment
55 Reporting and governance
56 About this report
Paul Bulcke U. Mark Schneider 57 Independent assurance
Chairman Chief Executive Officer
statement
58 Our key performance
indicators
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 03
Creating Shared Value In order to achieve these ambitions, we have
formulated a series of public commitments
that we operationalize across our business.
Creating Shared Value (CSV) We report on our progress every year.
Particular emphasis is on global initiatives to
is fundamental to how we do promote healthier lives for children, help
business at Nestlé. We believe young people access economic opportunities
that our company can only be and demonstrate our protection of water
resources. We also act decisively to tackle the
successful in the long term current plastic pollution challenge and are
by creating value both for our working to become carbon neutral.
shareholders and for society.
Measuring shared value
Our activities and products
We continue to explore ways to better
should make a positive difference measure our impact and the shared value
to society while contributing to we create. Our goal is to invest with greater
confidence and continue to build trust with
Nestlé’s ongoing success.
stakeholders by demonstrating tangible
results. We welcome work in this area so
The business case for Creating that it can inform our own methodology
Shared Value and stimulate further debate on this
important topic.
Creating Shared Value is about ensuring
long-term sustainable value creation for Read more about CSV
shareholders while tackling societal issues at
Read more about our reporting and governance
the same time. Companies that create shared
value demonstrate that business can be a
force for good.
We focus our work on three interconnected
impact areas: the individuals and families
who place their trust in our products and
brands; the communities where we operate;
and the planet. We are driven by our purpose
to enhance quality of life and contribute to a
healthier future. Our 2030 ambitions are:
• For individuals and families, to help
50 million children lead healthier lives.
• For our communities, to improve 30 million
livelihoods in communities directly
connected to our business activities.
• For the planet, to strive for zero
environmental impact in our operations.
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 04
Focusing on our Our 2018 materiality assessment
In 2018, the materiality process was evolved
materiality assessment integrated with the
Enterprise Risk Management process,
material issues
harnessed the perspectives of mainstream
to bring both non-financial and financial risk
investors, and engaged with key markets and
identification together and to connect it more
growth categories.
closely to business operations. In addition to
Trends affecting our industry identifying and prioritizing issues from
The food and beverage industry is impacted internal and external stakeholders, the 2018
by a range of trends. Changes in consumer
tastes and a growing interest in personalized
Nestlé materiality matrix (as assessed in 2018)
nutrition are transforming how we develop
our product portfolio. As knowledge about
the impact of plastic pollution grows, we must Natural resource and water stewardship Supply chain stewardship
Climate change Over- and under-nutrition
continue to investigate alternative materials
and delivery systems. The scale and
Major
complexity of our global supply chain present
an increased risk of human rights abuses.
Therefore, we work hard to ensure our
standards and policies are upheld. To
determine which global trends have the
Importance to stakeholders
biggest impact for Nestlé, we regularly
Women’s empowerment Rural development and poverty alleviation Food and product safety
conduct a thorough materiality analysis. Community relations Human rights Changing consumer demographics and trends
The materiality process
Business ethics Product packaging and plastic
Significant
Responsible marketing and influence
Our comprehensive materiality analysis is Product quality
Food and nutrition security
carried out every two years. This helps us
Resource efficiency, (food) waste and
to identify the economic, social and the circular economy
environmental issues that matter most Land management in the supply chain
to our business and our stakeholders.
Conducting a thorough analysis in this Animal welfare Product regulation and taxation
way helps to identify issues to be covered Employee safety, health and wellness Geopolitical uncertainty
in our reporting and to decide where to Decent employment and equal opportunities Responsible use of technology
Moderate
Data privacy and cyber security
focus our internal resources.
Moderate Significant Major
Impact on Nestlé’s success
For individuals and families For our communities For the planet
Note: Natural disasters, identified as an issue relevant to Nestlé, fell under the negligible category and so has been omitted from our materiality matrix
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 05
Our 2020 commitments and progress
Status of our commitments
New In progress Achieved
For individuals and families For our communities For the planet
Enabling healthier and happier lives Helping develop thriving, resilient communities Stewarding resources and the environment
Our 2030 ambition is to help 50 million children lead Our 2030 ambition is to improve 30 million livelihoods in Our 2030 ambition is to strive for zero environmental
healthier lives communities directly connected to our business activities impact in our operations
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 address Roll out our Nestlé Work to achieve Provide climate Improve the
and beverages that are nutrition information on nutrition knowledge from economics among the human rights impacts needs YOUth initiative water efficiency and change leadership environmental
nutritious, especially for packs, at point-of-sale the first 1000 days farmers who supply us across our business across all our operations sustainability across our performance of
mothers-to-be, new and online through to healthy aging activities operations Promote our packaging
mothers, and infants and Improve food Enhance gender transparency 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 protect and empower women effective water policies engagement in and waste
Further decrease health-promoting farmers who supply us children in our agricultural across the entire value and stewardship climate policy
sugars, sodium and Leverage our products, personalized supply chain chain Provide meaningful
saturated fat marketing efforts to nutrition and digital Implement Engage with and accurate
promote healthy cooking, solutions responsible sourcing in Enhance a culture of Advocate for healthy suppliers, especially environmental
Increase vegetables, eating and lifestyles our supply chain and integrity across the workplaces and healthier those in agriculture information and dialogue
fiber-rich grains, pulses, promote animal welfare organization employees
nuts and seeds in our Empower parents, Raise awareness on Preserve natural
foods and beverages caregivers and teachers Continuously Provide effective water conservation and capital
to foster healthy improve our green coffee grievance mechanisms improve access to water
Simplify our behaviors in children supply chain to employees and and sanitation across our
ingredient lists and stakeholders value chain
remove artificial colors Support Roll out the Nestlé
breastfeeding and protect Cocoa Plan with cocoa
Address under- it by continuing to farmers
nutrition through implement an industry-
micronutrient fortification leading policy to market
breast-milk substitutes
responsibly
Inspire people to
choose water to lead
healthier lives
Partner for
promoting healthy
food environments
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 06
For individuals and families 2030 ambition: To help 27.2 million children reached
Enabling healthier and happier lives 50 million children through Nestlé for Healthier Kids
in 2019
lead healthier lives
each year Offering tastier and healthier choices
We offer healthier versions of existing
Food is a pillar of culture, bringing people
products by reducing sugars, sodium and fat
together and providing nutrition that is key to
and increasing whole grains, vegetables and
good health. To ensure a healthy future for all
micronutrients. We are also making our
through sustainable nutrition, we must work
ingredient lists clearer and simpler to enable
together. At Nestlé, this is a responsibility we
consumers to better understand exactly what
take seriously.
they are eating and drinking (pages 7–12).
Good nutrition is vital. Poor nutrition or
malnutrition, on the other hand, contributes Inspiring people to lead healthier lives
to a number of growing public heath We have designed a range of projects and
challenges, with an estimated 149 million campaigns aimed at supporting parents and
children under 5 stunted and 49 million caregivers, providing them with the
wasted, and a further 40 million overweight information they need to build healthy habits
(WHO). We are continuously developing our for their families. We encourage children to
product portfolio to offer consumers more get active through mobile apps, websites and
affordable, nutritious and natural options sports competitions. Additionally, a range of
and services to support a healthier, more national campaigns provide a platform to
sustainable lifestyle and an enhanced highlight the benefits of healthy habits.
quality of life. (pages 13–20).
We invest in robust research programs, Building, sharing and applying
developing a knowledge base to deliver
nutritious products tailored to the needs of nutrition knowledge
people, especially children, mothers and We continuously engage with healthcare
mothers-to-be. Improving diets and professionals to share our current nutrition
establishing healthy behaviors globally is a joint knowledge. We are focusing our efforts on
effort. We share the findings of our research accelerating the development of innovative
with members of the health community products that address consumer nutritional
worldwide to encourage collaboration. needs, working to bring them to market
faster. With an increasing trend toward
We have identified the three following focus personalized nutrition, we are expanding our
areas to help us achieve this goal. work in this area to ensure we meet our
consumers’ demands (pages 21–23).
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 07
Offering tastier and healthier choices
Why it matters
Consumers are increasingly making informed
decisions about the foods and beverages
they consume and their nutritional value.
Taste, however, remains the main deciding
factor when people choose what to eat. We
aim to make a meaningful impact on people’s
diets and offer healthier versions of existing
products that still retain the taste consumers
expect. Through our products, services and
research, we are developing a more
personalized approach to nutrition. This
means not only supporting changing
consumer preferences but also providing
affordable nutrition for all.
Our contribution
We are increasing our focus on natural,
Our commitments to offering tastier Our work on offering tastier and plant-based foods and beverages. By
and healthier choices healthier choices contributes to removing artificial colors and adding
the following SDGs: micronutrients and whole grains, as well as
08 Launch more foods and beverages
reducing sugars, sodium and saturated fat in
that are nutritious, especially for
our existing products, we are improving the
mothers-to-be, new mothers, and
nutritional profile across our portfolio.
infants and children
Simplifying ingredient lists also makes it
How we map our material issues to
09 Further decrease sugars, sodium the UN SDGs and their targets easier for consumers to understand the
and saturated fat content of their food and make better-
informed choices.
10 Increase vegetables, fiber-rich grains,
pulses, nuts and seeds in our foods
and beverages
11 Simplify our ingredient lists and
remove artificial colors
12 Address under-nutrition through
micronutrient fortification
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 08
Launching more Why it matters
Nutrition is fundamental to ensuring healthy
Expanding our all-natural offerings
Increasingly, consumers want products that
nutritious products development in children. It can be a challenge
for parents to ensure their kids are eating and
include natural ingredients. Recognizing this
trend, in Europe we launched the Nesquik All
living well. If healthier versions of foods do Natural range, which includes Nesquik All
not taste good, kids simply will not eat them. Natural, an instant cocoa beverage to be
Our commitment prepared with milk, and our new Nesquik All
Our aim is to help parents by providing foods
Launch more foods and and beverages, including more plant-based Natural Porridge, which contains whole grain
oats and less than 5 g of total sugars per
beverages that are nutritious, options, that are nutritious and that kids love.
serving. With parents seeking more nutritious
especially for mothers-to-be, What we are doing and natural food options for their families,
new mothers, and infants We are committed to delivering more
and children in Europe falling far below
recommended dietary fiber intake levels,
and children nutritious products to kids and families.
Nesquik All Natural Porridge contributes to a
We are also accelerating the transformation
Our objective nutritious breakfast. Learn more about how
of our product portfolio as we add more
By 2020: In both developed and developing we are developing our products to offer kids
products that offer consumers choice, Developing healthy snacks
countries, design and launch foods and a healthy and nutritious breakfast.
including reduced-sugar and no-added- for kids in Brazil
beverages that address the daily nutritional sugar options. In particular, we are rapidly Launching organic cereals for kids Ninho is a plant-based,
needs and key nutritional gaps of infants, growing our range of organic foods and Nestlé Ceregrow, launched in India in 2019, ready-to-drink product,
children up to age 12, new mothers and beverages for children and families, as well is a ready-to-cook children’s breakfast launched in Brazil in 2019.
mothers-to-be as our plant-based offerings. cereal made from 100% organic wheat, The drink, for children aged
In progress milk and ragi. In addition to containing natural four and over, contains a mix
Transforming our portfolio
ingredients, Ceregrow is also a good source of oats, peas and real fruit.
In 2019, we introduced 1398 new nutritious
of vitamins, minerals and iron for children.
products for babies, children, mothers-to-be
Read more online
or new mothers. The products contain less Read more about this commitment
sugar and salt, more vegetables, fiber-rich
grains, milk, lean proteins, and essential
vitamins and minerals. Examples of products
include Milo, with reduced-sugar and
no-added-sugar options in Asia, Oceania and
South America, and further continuation of
Nescau reduced-sugar products in Brazil.
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 09
Reducing sugars, Why it matters
Overconsumption of sugars, sodium
We continue to seek new ways of lowering
sugar levels, including through investing in
sodium and fat
breakthrough technologies. To date, we have
and saturated fat contributes to dietary
achieved an overall 3.5% reduction, equivalent
and health problems. This includes
to around 45 000 tonnes of sugars. We are
increased risk of obesity, diabetes and
working to reach our 5% target through
cardiovascular disease.
Our commitment investment in research and development
Further decrease sugars, To help reduce consumption of these (R&D) to develop new technologies, and the
nutrients and contribute to improving public introduction of new reduced-sugar and
sodium and saturated fat health, we are undertaking complex no-added-sugar products.
reformulations of our foods and beverages.
Reducing sodium in our products
When we make these changes, we must be
Our sodium-reduction objective applies to
Our objectives careful not to alter how our products taste or Reducing saturated fat in
feel, as this could encourage consumers to products not yet aligned with our sodium
By 2020: Reduce the sugars we add in our Asian noodles
choose less healthy alternatives. targets based on the WHO’s recommended
foods and beverages by 5% to support In 2019, we introduced a locally
maximum daily intake of 2000 mg. We aim to
individuals and families in meeting global grown, nutritionally superior oil
recommendations* What we are doing deliver an overall 10% sodium reduction by
into the production of our
the end of 2020. We need to keep meeting our
In progress Reducing sugar content popular Asian noodles. We plan
consumers’ preferences while gradually
The World Health Organization’s (WHO) to launch the new noodles, with
reducing levels of sodium. Breakthrough
By 2020: Reduce the sodium we add in our strictest conditional recommendation is significantly reduced levels of
solutions that maintain the taste consumers
products by 10% to support individuals and to reduce daily intake of free sugars to saturated fat, in 2020.
prefer allow us to make reductions, not only in
families in meeting global recommendations* less than 5% of total energy intake.
products in scope but also in those already Read more online
In progress Currently, 45% of our products meet this
meeting WHO recommendations. Across our
recommendation, another 45% fall under our
culinary range, by the end of 2019 we had
By 2020: Complete the 10% commitment sugars commitment and 10% are not relevant
removed more than 6500 tonnes of salt.
taken in 2014, to reduce saturated fat by 10% as their sugar content is regulated, for
in all relevant products that do not meet the example, by CODEX (international food Read more about this commitment
Nestlé Nutritional Foundation (NF) criteria standards and codes of practice).
with respect to saturated fat*
In progress
Reducing sugars
All Nestlé foods and beverages
45% 45% 10% Our foods and beverages
out of scope of this
Our foods and beverages Our foods and beverages commitment as their sugar
that provide less than 5% in scope of our content is regulated (for
sugars (added)* commitment** example, by CODEX)
* These results apply to products within the scope of our
commitment, not to our global product range as many * For example, milk powder, culinary products, coffee and waters
of our products already meet recommended levels ** For example, confectionery products, Nesquik, Milo and coffee mixes
Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 10
Adding vegetables, Why it matters
Our studies show that many people,
Adding more fiber and whole grains to
our breakfast cereals
fiber and whole grains especially children, do not consume enough
sources of fiber, vitamins, minerals and
Roughly 11 million deaths worldwide are
associated with poor diet (The Lancet), with
nutrients, found in food such as vegetables, whole grains being one of the biggest
grains, bran, pulses, nuts and seeds. This dietary shortfalls. Since 2003, we have
Our commitment increased the use of whole grains by 50%,
risks harming their growth, development
Increase vegetables, fiber-rich and health. and today over 99% of our breakfast cereals
meet the CODEX requirement of at least 3 g
grains, pulses, nuts and seeds There is also a lack of awareness and of whole grain per 100 g serving as the source
in our foods and beverages understanding among consumers of the of fiber.
importance of these vital ingredients. In some
Our objectives parts of the world, Nestlé products are one of In 2019, whole grain was the main ingredient
By 2020: Add to our products at least the leading sources of whole grain intake. It is in over 99% of our ready-to-eat breakfast
Satisfying consumers with
750 million portions of vegetables, important that we continue to encourage cereals for children and teenagers, and in
healthier pizza
300 million portions* of nutrient-rich grains, greater consumption of nutrient-rich foods. 100% of our cereals carrying the green banner
To satisfy the needs of health-
pulses and bran, and more nuts and seeds Through activities such as our participation in are made with a minimum 8 g of whole grain
conscious consumers looking
the global Whole Grain Initiative, we are per serving, achieving our objective.
Achieved to consume more vegetables,
helping to increase consumer awareness of Although we have achieved our two our California Pizza Kitchen
By 2020: In addition to whole grain already the importance of whole grains and promote objectives for 2020, we continue to work business is leveraging on-trend
being the main ingredient in our ready-to-eat their consumption. toward our overall commitment of increasing ingredients to create a
breakfast cereals for children and teenagers, vegetables, fiber and whole grains. As an cauliflower crust.
all our Nestlé-branded cereals that carry What we are doing example, our Nesquik breakfast cereals
Green Banner will be a source of fiber** In addition to putting more of these vital contain over 50% whole grains as well as
and made with whole grain*** ingredients into our recipes, we promote being a source of vitamins****, iron****,
Achieved healthy cooking at home and provide calcium**** and fiber.
nutritional advice on packs and online.
Read more about this commitment
Calculating increases of serving sizes is highly
complex. In 2018, our cautious approach
to the data led us to underestimate the
increases achieved. In 2019, we strengthened
and refined our data gathering and analysis,
implementing new tools to ensure robust,
transparent figures. We are now confident
that we have met our 2020 objective, with
403 million portions of fiber-rich grains and
2.76 billion portions of vegetables added
* A portion of fiber-rich grains is the amount of grain by the end of 2019, measured against the
product (variable, depending on the type of grain, type baseline of 2016.
of product, etc.) that contains 16 g of fiber
** All products that carry 3 g or more of fiber per 100 g
on pack nutrition table
*** Having a minimum of 8 g of whole grain per serving ****Except in countries in which fortification is not permittedCreating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 11
Simplifying Why it matters
Increasingly, people want to know what is in
Simplifying ingredient lists
We continued simplifying our recipes in our
ingredient lists the foods and beverages they consume – and
whether the ingredients are nutritious, fit into
beverage, dairy, food, professional, waters,
confectionery, ice cream, nutrition and Nestlé
a healthy lifestyle and are sustainably sourced Health Science businesses.
and manufactured. We can meet these We have set up and reinforced an internal
Our commitment
expectations by being clear about what our cross-disciplinary team to consider how
Simplify our ingredient lists products contain, how we express this on products can be simplified by only using
and remove artificial colors packs and by getting rid of ingredients that ‘kitchen cupboard’ ingredients – ingredients
may be unfamiliar to consumers. that people know and love and are likely to
Our objectives find at home. Our entire Maggi portfolio in
By 2020: Continue removing What we are doing Nestlé Russia is now made with ‘kitchen
unfamiliar ingredients We are transforming products by removing cupboard’ ingredients. We are continuously
In progress artificial colors and ingredients that working to reformulate and innovate our
consumers do not recognize. We also provide products to contain more instantly
By 2020: Remove all artificial colors simpler labels with clear information. recognizable ingredients.
Launching a simplified, natural
from our products*
Removing artificial colors Among the products launched in 2019 using cocoa powder in Europe
In progress
In 2019, we continued to remove artificial simple, natural ingredients and flavors were Launched in Europe in 2019,
colors from our food and beverage recipes. Nestlé Coffee-Mate Natural Bliss plant-based Nesquik All Natural offers a
Currently, 1.67% by weight of the colorants Half and Half (half almond milk and half cocoa beverage with a simplified
used in our foods and beverages is defined coconut cream) and Nestlé Coffee-Mate ingredients list containing just
as artificial. Natural Bliss Oat Milk creamers. Nescafé five natural ingredients. The
Coffee Protein Smoothie, launched in the US, powder also uses less sugar and
We continue to seek non-artificial color
is made from real coffee and contains no is sold in recyclable paper
solutions that are acceptable in both
artificial flavors, carrageenans (a seaweed packaging.
performance and cost. However, there
extract) or sweeteners. Nestlé Cold Whipped
are challenges. Sometimes it is difficult to
Latte, also launched in the US, includes seven
Read more online
change to non-artificial colors that provide
all-natural ingredients.
the same consumer experience and meet
demands for affordable pricing. Wherever Read more about this commitment
this is an issue, we work with suppliers to
find suitable solutions.
* This objective does not currently apply to our pet
food productsCreating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 12
Micronutrient Why it matters
Around one-third of the world’s population
• Increase micronutrient accessibility
through partnerships, new routes to market
fortification
and affordability strategies.
lacks essential vitamins and minerals (Global
Nutrition Report). This can lead to serious In 2019, we focused our activities in our Zone
health issues, such as impaired growth and AOA (Asia, Oceania and sub-Saharan Africa),
physical and intellectual development, as running projects in eight countries.
Our commitment
well as compromised immunity.
Address under-nutrition Delivering solutions
It is estimated that by 2025, the We are continuing to fortify relevant foods and
through micronutrient nutrition crisis will cost society around beverages with the micronutrients most
fortification USD 3.3 trillion (CHF 3.12 trillion) per year commonly lacking in local diets. In 2019, we
(Global Access to Nutrition Index). Nestlé delivered 185.4 billion fortified servings
Our objectives is helping tackle this by fortifying foods (including 9 billion from our joint venture Cereal
By 2020: Reach millions of children and and beverages with micronutrients that are Partners Worldwide (CPW)), incorporating at
families with fortified foods and beverages unavailable or lacking in local diets, focusing least one of the Big 4 micronutrients (iron,
In progress particularly on children and families in iodine, vitamin A and zinc, as defined by the
developing and high-priority countries. WHO) in 64 countries with higher vulnerability
By 2020: Initiate or support collective to micronutrient malnutrition.
action to reduce micronutrient deficiencies What we are doing
in 10 countries Of our popularly positioned products for
Micronutrient deficiencies are a serious
lower-income consumers, 87% were fortified
In progress public health challenge. We believe we can Tackling iron deficiency in
with at least one of the Big 4. As a result of
help tackle it by fortifying a significant Sri Lanka
By 2020: Continue to develop the supply our global efforts, we ranked first out of the
proportion of our nutritious foods and
chain for biofortified crops and expand our 22 largest food and beverage manufacturing At the request of the Sri Lankan
beverages. Collective action is key to
fortified portfolio companies assessed by the 2018 Access to Government, we implemented
achieving more. We work with governments,
Nutrition Index (ATNI) in the category of a series of multi-pronged
In progress non-governmental organizations (NGOS),
Addressing Undernutrition. The next initiatives in the country to raise
the professional nutritional community and
assessment will be in 2020. awareness of iron deficiency,
retailers to:
supporting health professionals
• Raise micronutrient fortification (MNF) We aim to use more biofortified maize in
in the field and using chat bots
on the agenda at political, research or cereal products, particularly in Nigeria. In
to speak with consumers.
consumer levels. addition to using as much biofortified maize
as possible, we actively participate in
Read more online
• Advocate the inclusion of MNF in
workshops and forums on biofortified crops.
national nutrition plans.
• Build multi-stakeholder platforms in Read more about this commitment
support of MNF.
• Develop education or social
marketing campaigns with
governments and other bodies.
• Further research into MNF deficiencies.Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 13
Inspiring people to lead healthier lives
Why it matters This strategy helped us to progress faster in
implementing our commitment to double
Approximately 1.9 billion adults globally are
outreach by 2020 by focusing the
obese or overweight, with 462 million more
communication actions of our bigger brands
underweight. Adding to the problem,
for more impact.
52 million children under the age of 5 have
low weight for their height and 40 million are We support individuals and families
overweight or obese (WHO). throughout their lives, from conception to old
age. Our dedicated R&D teams create healthy
Regardless of demographic, there has been
products that address a range of nutritional
a clear upward trend in the levels of refined
requirements. Additionally, we run a variety of
grains and sugars in global diets and a
campaigns and collaborate with other industry
decrease in nutrient-rich foods such as fruit,
partners to offer information on topics such as
vegetables and whole grains (Global Nutrition
healthy hydration and infant nutrition,
Report). At Nestlé, we want to help consumers
encouraging people to live healthier lives.
live healthier lives by providing transparent
nutrition information and inspiring them with
healthier recipes and lifestyle tips.
Our contribution
Our commitments to inspiring people Our work on inspiring people to
We are on track to meet most of our
to lead healthier lives lead healthier lives contributes to
commitments by 2020. We have been able
the following SDGs:
14 Apply and explain nutrition information on to achieve this by developing a range of
packs, at-point-of-sale and online programs to promote healthier lives globally,
in line with the SDGs related to zero hunger,
15 Offer guidance on portions for our products
good health and reducing inequalities.
16 Leverage our marketing efforts to promote
Through our brands, we promote healthy
healthy cooking, eating and lifestyles
cooking and eating as well as active lifestyles
17 Empower parents, caregivers and teachers
How we map our material issues to encourage adults and children to lead
to foster healthy behaviors in children to the UN SDGs and their targets healthier lives, while we continuously work
to provide clear and easily understandable
18 Support breastfeeding and protect
nutrition and portion information both on
it by continuing to implement an industry-
packs and online.
leading policy to market breast-milk
substitutes responsibly
19 Inspire people to choose water
to lead healthier lives
20 Partner for promoting healthy
food environmentsCreating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 14
Providing nutritional Why it matters
Our consumers want to make informed
In June 2019, we announced our support for
Nutri-Score as the preferred front-of-pack
information
labeling initiative for food and beverage
decisions about their food and beverage
products in Continental Europe. We are
choices. We have a responsibility to
committed to implementing it at scale,
communicate about our products
starting in countries that already support the
transparently and comprehensively, including
Our commitment initiative. Nutri-Score is a color-coded system
ingredients and nutritional values.
Apply and explain nutrition that classifies products according to their
It is important that we provide consumers with nutritional profile, with a scale from A
information on packs, at easy-to-understand information. We align (healthier choices) to E (less healthy choices).
point-of-sale and online with external front-of-pack labeling initiatives Read more about Nutri-Score on our website.
to ensure the nutritional information of our
Our objective Updating the Nestlé Nutritional Compass
foods and beverages is visible and clear.
By 2020: Continue providing detailed product The Nestlé Nutritional Compass has been
nutrition facts with daily value percentages, What we are doing displayed on our product packaging since
ingredients and allergens, and add special diet Improving nutrition information on packs 2005 and is now featured on 96.4% of
information, nutrition labeling explanations packaging. The Compass brings together
As regulations for front-of-pack nutrition
and healthy eating tips on all our relevant nutritional information, explanations of what
labeling vary from market to market, there are
packs, as well as on our websites and e-retailer this information means for consumers and
challenges associated with identifying a
sites, to better enable informed choices how the product fits into a balanced and
global approach that is quickly and easily
In progress healthy diet. Research performed by the
understandable for consumers. We started
Consumer Goods Forum found that 55% of
implementing Guideline Daily Amount (GDA)
consumers want more information on social,
in 2014, which is now present on 88% of our
health, environmental and safety issues
products, as part of our wider commitment to
related to products. We are now in the
provide consumers with transparent
process of investigating how best to display
information about the nutritional value of
this on our packaging. Developing Ask Nestlé in India
our products.
Governments around the world are Read more about this commitment Helping parents better
increasingly endorsing interpretive front-of- understand the unique nutrition
pack labeling initiatives, such as the Health requirements of their children, we
Star Rating in Australia, the color-coded developed Ask Nestlé in India.
initiative in the UK and Ireland, and warning The online portal provides
labels in some Latin American countries. information on nutritional needs
In such cases, we are committed to as well as an easy-to-understand
implementing local initiatives across our recipe directory.
relevant product portfolio.
Read more onlineCreating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 15
Offering portion Why it matters
Globally, there is a lack of understanding about
What we are doing
Expanding on-pack portion guidance
guidance what a good food portion looks like. Although
sizes in general are increasing, intake of
Currently, Nestlé Portion Guidance is provided
on 61.9% of our products.
nutrient-rich foods such as vegetables and The intention of the Nestlé Portion Guidance
whole grains are simultaneously declining – initiative is to engage consumers on
Our commitment
which can contribute to adverse health considering responsible portions, right at the
Offer guidance on portions outcomes (Cochrane). point-of-sale and moment of usage – in other
for our products We are well placed and committed to words, when their decision about foods and
contributing to solutions through our Nestlé beverages quantity is made.
Our objectives
Portion Guidance initiative, designed to help In addition, we strive to provide our consumers
By 2020: Continue providing guidance on
consumers make informed food choices as with nutrition information per portion of
portions globally on all children’s and family
part of a balanced diet. product in the nutritional information table.
product packs and add frequency of
In countries where portion guidance is closely
consumption indications on relevant products
regulated, we follow the local regulations
In progress
deemed relevant to our consumers. Partnering for portion sizes
in Australia
By 2020: Extend our guidance on portions Read more about this commitment
to our consumer recipes, and relevant In Australia, we are chairing an
teenager and adult products Industry Best Practice Guide
In progress
Working Group, as part of the
Government’s Healthy Food
By 2020: Gradually increase the proportion Partnership strategy. This
of guidance on portions provided through collaborative initiative is
product form, pack design, serving device designed to tackle the numbers
or dispenser to make it even more intuitive of overweight and obese in
than on-pack messaging the country.
In progress
Read more onlineCreating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 16
Marketing Why it matters
Our expertise is in making nutritious foods
Partnering with the Global Alliance
for Responsible Media
healthy choices and beverages that support a healthy
lifestyle. We want to share it with consumers
To guide our online marketing efforts this year,
we continued our participation in the World
worldwide. Through the scope and power of Federation of Advertisers (WFA). Through the
our marketing, we are promoting more WFA, we are partnering with 16 other
Our commitment advertisers, including global companies such
nutritious options to consumers – responsibly
Leverage our marketing and transparently. as Unilever, Adidas and P&G, to form the
Global Alliance for Responsible Media. The
efforts to promote healthy We target our marketing efforts toward Alliance will work with publishers and
cooking, eating and lifestyles parents and caregivers, helping them to make platforms to ensure safe online environments.
informed decisions on how to keep their It also forms part of Nestlé’s wider strategy of
Our objective children and families healthy. We have also being safe, transparent and accurate in our
By 2020: Double the outreach of our developed robust guidelines to restrict advertising on digital platforms.
efforts to promote healthy cooking and marketing that targets children.
eating and healthy lifestyles for individuals, Leading the industry in marketing
families and their pets What we are doing compliance
Encouraging cooking with
In progress Implementing standards for marketing Since making our commitment to market Maggi in Thailand
to children healthy choices in 2016, we have stepped up
Maggi’s Mum and Me cooking
efforts to promote healthy cooking, eating
In 2017, we implemented a robust standard on club in Thailand helps children
and lifestyles. This represents a 67% increase
marketing products to children with the learn cooking skills from
in marketing expenditure in 2019 (versus
development of our Policy on Marketing their parents.
2016) toward products that actively support
Communication to Children, one of the
healthy lifestyles.
strictest policies of its kind in our industry.
Read more online
In line with this policy, we have further Read more about this commitment
committed not to advertise to children under
the age of 6, and to only market products to
children between the ages of 6 and 12.
Products that we do market to children must
meet the Nestlé Nutritional Profiling System.
In 2019, we audited our Indian operations for
marketing to children compliance, with the
results of this review made publicly available.
This was identified as a best practice for the
industry by ATNI in their India spotlight, which
was released in June 2019.Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 17
Promoting healthy Why it matters
Adopting good nutrition and exercise
habits. The campaign reached more than
200 million parents worldwide.
behaviors in children practices from an early age gives children a
better chance of growing up to be fit and
Through increased efforts, in 2019, we
supported 27.2 million children through the
healthy. Malnutrition continues to grow as an program in over 84 countries around the
issue on a global scale: more than 340 million world. This contributes to our objective of
Our commitment
children and teenagers are overweight or reaching 50 million children cumulatively
Empower parents, caregivers obese (WHO), and many others suffer from from 2016 to 2020, and is a milestone toward
and teachers to foster healthy under-nutrition. our wider 2030 ambition to help 50 million
children every single year. Read more about
behaviors in children We bring together current public health data
how we are partnering with retailers through
with findings from Nestlé research to create
Our objective Nestlé for Healthier Kids on our website.
products and offer services that support the
By 2020: Support 50 million children healthy growth of children. Read more about this commitment
through our nutrition education and behavior
change programs, an important milestone What we are doing
toward our wider 2030 ambition Supporting children to live healthier lives Adopting a fruit or vegetable
In progress The Nestlé for Healthier Kids initiative brings in Argentina
together several programs that promote Encouraging children to eat more
healthy eating in children as well as programs fruit and vegetables, Nestlé
designed to equip parents with all the launched the Adopt a Fruit, Adopt
information they need to reach their child’s a Vegetable initiative in
nutritional requirements. It drives actions Argentina. The initiative was a
supporting our global ambition to support collaborative effort with the
50 million children every year by 2030. supermarket Carrefour.
The initiative also acts as a platform from
Read more online
which we continue to research and develop
more nutritious products for kids. This
includes reducing the amount of sugars,
saturated fat and salt in our products while
increasing the nutrient, fiber and vegetable
content. Read more about how we are
developing healthier products.
In 2019, two communication campaigns
across 40 markets highlighted the progress
made in the nutritional improvement of our
portfolio. It also provided an opportunity to
raise awareness of the importance of cooking
together with children to improve their eatingCreating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 18
Supporting Why it matters
Good nutrition in the first 1000 days, from
Marketing BMS responsibly
We are committed to implementing the WHO
breastfeeding conception until two years old, is essential
for mother and baby. We support the
Code as outlined by national governments as
well as our own policies and procedures,
WHO’s recommendation that mothers whichever is stricter. We audited 33 countries
(who can) should exclusively breastfeed on WHO Code compliance in 2019. We aim to
Our commitment retain our FTSE4Good score in the 2020
infants for the first six months of life, followed
Support breastfeeding and by the introduction of adequate nutritious review. We also want to encourage the entire
BMS industry to work toward achieving the
protect it by continuing to foods alongside breastfeeding up to
highest level of marketing compliance. We
two years and beyond.
implement an industry-leading strive to be industry leaders in applying the
policy to market breast-milk However, some new mothers may be unable, WHO Code, even when stricter than our
or choose not, to breastfeed or decide to offer own policies.
substitutes responsibly mixed feeding. We want to support these
mothers with breast-milk substitutes (BMS) Supporting new mothers
Our objectives We want to do everything to help ensure Launching Materna Opti-Lac
that address infant nutritional needs, as well
By 2020: Advocate for a breastfeeding- as science-backed information about what mothers have comfortable, secure areas In 2019, we launched Materna
friendly environment by supporting the is best for early infant nutrition. where they can breastfeed. In 2019, we Opti-Lac in Hong Kong to support
set-up of breastfeeding rooms in provided breastfeeding rooms in all our breastfeeding. Materna Opti-Lac
communities where we operate What we are doing facilities with more than 50 female employees. contains a patented probiotic
In progress We also installed 5912 rooms for public use in strain, L. fermentum LC40,
Ensuring compliance throughout
countries where we operate. naturally found in the breast milk
our business
Ongoing: Ensure the practices of the of healthy mothers.
We developed our Nestlé Policies and
Nutrition business consistently meet Read more about this commitment
Procedures for the Implementation of the
Read more online
the FTSE4Good Index Breast Milk
WHO International Code of Marketing of
Substitutes criteria
Breast Milk Substitutes to ensure the
In progress
Code is implemented throughout our
organization. In 2019, 1428 Nestlé employees
Ongoing: Continue to strengthen our policy
completed training on breastfeeding, the WHO
and procedures to maintain industry
Code and Nestlé policies and procedures.
leadership on the implementation of the
WHO Code In 2019, we launched the Code of Interaction
In progress with Healthcare Professionals and Institutions
for Nestlé Nutrition Business Units. This
Ongoing: Continue to report publicly on document sets out the principles for engaging
our progress on the implementation of our with healthcare institutions and professionals
policy on the WHO Code on BMS and the types of interactions our
In progress employees can have with healthcare
professionals to avoid conflicts of interest.Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 19
Encouraging Why it matters
The water intake recommendation for the
In 2019, we ran a social media campaign
across nine key markets, including Mexico
healthy hydration
and China, promoting the benefits of healthy
average adult is about 1.5 liters each day, a
hydration. The campaign also served to
level that many people do not reach.
highlight the results of studies done by
Water is necessary for a whole host of body market research organizations IPSOS and
Our commitment functions. We want to ensure people get Kantar on the hydration behaviors and habits
Inspire people to choose enough hydration each day as part of a of adults and children around the world.
healthy lifestyle. We know good hydration
water to lead healthier lives habits need to start early. That’s why we
Gathering global information on hydration
have made it a priority to develop programs In 2018, we achieved our objective to release
Our objective an open-access platform where anyone can
that encourage children to drink enough
By 2020: Launch national campaigns water daily. download information on global drinking
promoting healthy hydration with public habits. We have also put together easy-to- Wild About Water: making
water a fun choice for
and private partners in 10 countries What we are doing understand information summarizing our
children worldwide
Achieved global research into children’s attitudes
Launching national campaigns
to drinking water and preferences for The majority of children do not
The majority of children do not drink the drink the daily recommended
water compared to sugary drinks. Find out
recommended daily amount of water, a amount of water, and this is, in
more about global hydration on the Nestlé
statistic that Nestlé is committed to part, because they find it boring
Waters website.
improving. We continue to develop to drink. Our global Wild About
campaigns to encourage better hydration. Read more about this commitment Water campaign was designed
55 countries now formally include the Choose to get children excited about
Water module in their Nestlé for Healthier Kids drinking water, with bottles
initiatives. In 2019, these countries launched specially designed to look like
99 programs that address the module, animals and with exciting facts
including TummyFish, an app released in the about animal hydration.
United Arab Emirates to get children excited
about drinking water. Find out more about our
Read more online
healthy hydration app on our website.Creating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 20
Health-promoting Why it matters
Knowledge of the importance of proper
affects our bodies. Through our outreach
efforts, we have engaged with approximately
food environments
70 000 industry professionals to date.
nutrition is on the rise globally. At the same
time, greater accessibility and availability of Collaborating for Healthier Lives
nutritious products mean the healthy choice In 2019, within the retail sector, we partnered
is increasingly the easier one. We believe that with 18 retailers, 58 manufacturers and 27
Our commitment
we, and the wider food and beverage stakeholders (public health authorities,
Partner for promoting industry, have a role to play in supporting academia, NGOs, and city officials) through
healthy food environments people to make informed choices to lead the Consumer Goods Forum Collaboration for
healthier lives. Healthier Lives global program. Through joint
Our objective action, in stores (including digital) and
Partnering with retailers represents an
By 2020: Partner with retailers and food opportunity to inspire behavior change and communities, we work to promote healthy
professionals to foster environments that promote healthier lives. Through offering diets and lifestyles. The program is being
promote healthier diets and lifestyles brands and services that are good for deployed in the following markets: Colombia,
In progress consumers, their families and the planet, the US, Japan, Turkey, Central America, the
manufacturers and retailers can encourage UK, France, Mexico and China.
more healthy and sustainable shopping Nestlé actively participated in all the country
patterns in consumers. initiatives, offering a range of products,
services and consumer information.
What we are doing Additionally, we are contributing to research Inspiring people to cook
Engaging with industry professionals to define metrics to measure initiative results. Our Worldchefs Academy is an
In 2019, we maintained our commitment to This will supplement a global learning tool online learning portal that
engaging with professionals in the food that will allow the learning to be disseminated provides free foundational-level
industry to share current information on and to scaling up the Consumer Goods Forum culinary information to anyone
out-of-home nutrition. Through our Nestlé Collaboration for Healthier Lives program. interested in pursuing a career
Professional LinkedIn page, we engage with in the culinary industry. In 2019,
over 84 000 people globally. Our page acts Read more about this commitment 5177 young people were trained
as a platform through which we can share globally through the academy.
information on developments in the food
service industry as well as tips from chefs
about healthy eating with relevant audiences.
Learn more about how we leverage this
platform to widen our reach on our website.
Expanding our reach further, we continue
to connect with professionals through our
Worldchefs Academy and through
International Chefs Day, an event held on
October 20 each year. The theme for 2019
was How Healthy Food Works, and events
focused on teaching children how foodCreating Shared Value Individuals and families Communities Planet Reporting and governance Creating Shared Value Progress Report 2019 21
Building, sharing and applying nutrition knowledge
Why it matters Today, we have the most advanced science
and innovation network in the food industry,
The foods and beverages babies and children
with around 23 R&D locations and more than
consume play a vital role in shaping their
3900 employees. In 2019, we invested
future health and development, both mentally
CHF 1.7 billion in our research activities. We
and physically. In the same way, what we
also collaborate with leading universities,
consume as adults can influence our health
research organizations, start-ups and other
later in life. However, many babies, children
innovation partners. These partnerships help
and adults worldwide suffer from under-
us widen our scope by generating new ideas
nutrition or over-nutrition, with potentially
that can help us address key public health
serious consequences, both for themselves
challenges and much more.
and for society. By understanding more about
these issues, we can develop products that We also continue to engage with, and
help consumers of all ages to enjoy healthier, support, healthcare and nutritional
more nutritious diets. professionals around the world, providing
training, disseminating information and
Our contribution learning, and facilitating the sharing of
Through our global network of research and best practice.
development centers, we study everything
Our commitments to building, sharing and Our work on building, sharing and from maternal and children’s health to healthy
applying nutrition knowledge applying nutrition knowledge aging and pet care. We take a holistic
contributes to the following SDGs: approach that focuses on nutrition and
22 Build and share nutrition knowledge from
physical activity, and their combined impact
the first 1000 days through to healthy aging
on health. This includes expanding our
23 Build biomedical science leading to health- personalized nutrition work, which enables
promoting products, personalized nutrition consumers to find the right nutritional
How we map our material issues
and digital solutions solutions for their particular circumstances.
to the UN SDGs and their targets
Our work is helping us build a deep
understanding of nutritional science and
develop products that enable us to fulfill our
purpose: enhancing quality of life and
contributing to a healthier future.You can also read
