Creating Shared Value
and Sustainability
Report 2021
We unlock the power of food
to enhance quality of life for everyone,
today and for generations to come.
A message from our
Chairman and CEO
Creating Shared Value by
advancing regenerative
food systems at scale
Contents
2	 2021 performance summary
4	 Our focus areas
and commitments
5	Advancing regenerative
food systems at scale
8	Research and Development
to advance food systems
10	 Our approach to
Creating Shared Value
12	Contributing to nutritious
and sustainable diets
13	 Healthier and tastier choices
17	Healthier lives through
nutrition knowledge
20	 Helping to protect, renew
and restore natural resources
21	Climate and nature
30	Water
34	Packaging and circularity
38	Strengthening communities
39	Produced sustainably
43	 Human rights
47	Youth opportunities
50	Operating responsibly
51	 Our people
56	 Ethical business
59	About this report
Paul Bulcke
Chairman
U. Mark Schneider
Chief Executive Officer
Climate change actions can take time to take effect but,
even as our company has grown and revenues increased,
we are seeing a reduction in emissions. We have passed
‘peak carbon’ and decoupled our emissions from growth,
charting an even more sustainable future for our company.
Human rights play a key role in enabling a just transition
to regenerative food systems. In December 2021, we
released our new Human Rights Framework and Roadmap.
Through implementing this framework, and with
powerful collaborations, we will enhance due diligence
and develop action plans to address our most salient
human rights issues.
Advancing regenerative food systems at scale is the only
path forward for meeting people’s nutritional needs as
the world’s population grows. Consumers also feel this
urgency. We have continued to respond to consumer
demand and do our part for the planet by developing
products that deliver great taste and nutritional value
while minimizing their environmental impact.
We launched new plant-based products such as Vuna
and Wunda. We also reaffirmed our support for the UN
Global Compact and were again named a LEAD company
in recognition of our ongoing determination to help
achieve the UN Sustainable Development Goals (SDGs).
Additionally, we supported the equitable distribution of
COVID-19 vaccines through a CHF 2 million donation to
the Go Give One campaign created by the World Health
Organization Foundation to support COVAX AMC, the
worldwide initiative aimed at equitable vaccine access.
Our Creating Shared Value and Sustainability Report for
2021 provides more details on how Nestlé is advancing
regenerative food systems at scale – and explains the
interconnected nature of the challenge and the work that
lies ahead. Bureau Veritas has long provided independent
assurance of the information included in this report.
Now, EY has also provided independent assurance
of selected key performance indicators (KPIs), as shown
in the performance summary on the following page
and indicated throughout the report.
We know we cannot achieve our goals alone. When we
work together, we can accelerate the just transition at the
same time as protecting, renewing, and restoring the planet
and ensuring food systems can continue to nourish people
for generations to come.
We continued to accelerate our sustainability efforts in 2021,
even though the COVID-19 pandemic meant it was another
challenging year. Keeping our people safe and ensuring
consumers have access to our foods and beverages has
remained central to Nestlé’s activities around the world.
Climate change is increasingly impacting the farmers
and communities with whom we work. The degradation
of forests, land, soil, and waterways threatens farmers’
livelihoods and jeopardizes the availability and affordability
of quality food. Building on our Net Zero Roadmap, we are
taking action to help address these threats by advancing
regenerative food systems at scale.
Evolving farming practices to protect and enhance
ecosystems while regenerating the land is essential,
though this transition will only be fair and just if we put
people first. With this in mind, we are offering farmers
technical, scientific, and financial support to begin adopting
regenerative agriculture practices, to reward them for both
quality ingredients and environmental benefits.
To accelerate the transformation towards net zero
emissions and equitable, regenerative food systems, we
are delivering on our commitment to invest CHF 1.2 billion
by 2025 in regenerative agriculture practices and have
committed to sourcing 50 percent of our key ingredients
through such methods by 2030. This will contribute to
achieving our ambition to halve our greenhouse gas
emissions by 2030 and reach net zero by 2050.
We also continue our work to eliminate deforestation
in our primary meat, palm oil, pulp and paper, soya
and sugar supply chains by 2022. By 2025, we aim to
achieve the same for our coffee and cocoa supply chains.
Over the last 10 years, we have worked hard to assess
and address the risks of deforestation together with our
partners and suppliers, as well as directly with farmers
and farming communities.
Paul Bulcke, Chairman (left), and U. Mark Schneider, Chief Executive Officer (right).
Welcome to the Nestlé Creating
Shared Value and Sustainability
Report 2021. We have defined focus
areas based on the issues that are
most material to our stakeholders
and to our business. In this report
we cover our strategic approach
and performance in each focus
area, supported with expert voices
and case studies.
Cover image: The Nestlé Cocoa Plan.
Nestlé is investing in cocoa communities such
as Didoko, Côte d’Ivoire, to help children access
good quality education.
This report is interactive:
Links to external sources
Links within the document
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 2
4.0million tonnes
Greenhouse gas emissions
(CO2
e) reductions achieved
through Nestlé projects since
2018. We initiated an additional
9.7 million tonnes CO2
e of
removals in 2021, giving a total
13.7 million tonnes CO2
e
2.3million m3
Water use reduction
in our factories
16.3%Key ingredients
produced sustainably
97.2%Deforestation-free in our primary
meat, palm oil, pulp and paper,
soya and sugar supply chains
74.9%Plastic packaging
designed for recycling
8.1%Virgin plastic reduction
versus 2018 baseline
124.6billion
Number of servings of affordable
nutrition with micronutrient
fortification (MNF)
1.44million
Number of young people
around the world with access
to economic opportunities
27.2%Women in the top 200+
senior executive positions
2021 performance
summary
KPIs on this page are EY assured.
The EY limited assurance report
and conclusion can be found at
www.nestle.com/assurance-statement
Our Reporting Scope and Methodology
for ESG KPIs document provides
details and definitions and can be
found at www.nestle.com/esg-kpis
Read more about independent
assurance of this report on page 59.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 3
Produced sustainably
We aim for 100% of key raw
material volumes to be produced
sustainably by 2030. We aim to
achieve sustainable and resilient food
supply chains in which growers and
environments are protected.
Human rights
By 2022 year-end, we will publicly
launch action plans for each of our 10
salient issues, and report our progress
against them by 2025.
Youth opportunities
By 2030, our ambition is to
help 10 million young people
around the world have access
to economic opportunities.
Climate
We aim to achieve net zero greenhouse
gas emissions no later than 2050, even
as our company grows:
	– By 2025 we will reduce our
emissions by 20% from 2018 levels
	– By 2030 we will reduce our
emissions by 50% from 2018 levels
	– By 2050 we will reach net zero
Nature and biodiversity
Delivering on our climate
commitments can bring intrinsic
co-benefits for nature and biodiversity
through activities such as:
	– 100% deforestation-free primary
supply chains by end-2022
for meat, palm oil, paper and pulp,
soya and sugar, and end-
2025 for coffee and cocoa
	– Planting 200
million trees by 2030
	– Moving to a Forest Positive
strategy – helping to
conserve and restore
forests and ecosystems
Water
Nestlé Waters will use its expertise
to strive toward the regeneration
of local water cycles through the
implementation of more than 100
projects for its 48 sites by 2025.
Across Nestlé, we will continue to
work to achieve good water resource
management throughout our
operations and agricultural
supply chains.
Packaging and circularity
By 2025, 100% of our packaging
will be recyclable or reusable and
we will reduce our use of virgin
plastics by one third.
Enhancing quality of life for people,
families and pets with accessible,
nutritious and sustainable options.
Minimizing our impact on the world’s resources, contributing to a future in which they
are available for generations to come.
Contributing to
nutritious and
sustainable diets
Helping to protect, renew and restore natural resources
Nutrition
We aim to make safe, tasty and
sustainable food that is nutritious,
accessible and affordable.
It’s important that we provide
accurate relevant information
about our products, that we market
them responsibly and that we
promote healthy diets through
education, nutritional science and
other initiatives.
Boosting the well-being of communities and enabling
a just transition to regenerative practices.
Operating responsibly
Creating a positive business environment and empowering
our employees to make sustainable business decisions.
Our people
We respect and encourage
all our employees; we value their
potential regardless of race, ethnicity,
gender, national origin, religion,
gender identity, sexual orientation,
age and different abilities.
We aim to increase the proportion
of women in our top 200+ senior
executive positions to 30% by 2022.
Strengthening communities
About Nestlé
276 000
Employees across
all our operations
186
Countries we sell in
87.1billion
Group sales in CHF
Our focus
areas and
commitments
17
Sustainable Development
Goals (SDGs)
We continue to support the
United Nations SDGs and are
working hard to help achieve
them. Find out more about our
SDG contributions throughout
this report.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 4
Advancing
regenerative
food systems at scale
Research and Development to advance food systems 8
Our approach to Creating Shared Value 10
We are the Good food, Good life company.
That’s why we are taking action to advance
regenerative food systems at scale.
Creating Shared Value (CSV) is at the heart
of Nestlé’s approach to achieving our purpose:
to unlock the power of food to enhance quality
of life for everyone, today and for generations
to come. We have sought to build our business
approach on decisions that are not just good
for us and our shareholders, but for society
and the planet as well.
In September 2021, we announced our intention
to advance regenerative food systems at scale.
This means supporting the development of food
systems that protect, renew and restore the
environment, improve the livelihoods of farmers
and enhance the resilience and well-being of
farming communities. This is what we mean
by a just transition. Farmers and communities
should be supported through this change and
benefit from it.
Our commitments on regenerative agriculture,
farmer livelihoods and child labor risks, as well
as our Forest Positive strategy and Nestlé Waters
pledge are good examples of the potential to
positively impact a wide range of interconnected
issues, while remaining firmly grounded in a
metric-driven, outcome-focused approach.
Over the course of this report, you will see how
we are building on the work we have done
over the past decade to move in this direction,
including the launch and implementation of our
Science Based Targets initiative (SBTi)-aligned
Net Zero Roadmap.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 5
NESTLÉ EXPERT
A journey
inspired
by nature
The importance
of regeneration
EXTERNAL EXPERT
This is big.
Here’s why
Regenerative agriculture
could be the answer
Paul Hawken, Founder, Project
Regeneration and Author, Regeneration,
Ending the Climate Crisis in One
Generation, and special advisor to Nestlé
The initiative to regenerate food systems worldwide
places Nestlé at the forefront of corporate leadership.
As the world’s largest food company, Nestlé faces
extraordinary challenges in the years and decades to come.
These relate directly to the production and creation of food
by farmers, some of whom have been suppliers to Nestlé
for five generations. Farmers are dealing with increasingly
disruptive weather – drought, floods, heat, and wind –
impacts that can easily tip farmers’ harvests from gain to
loss. These impacts and more will increase in magnitude
as weather patterns continue to become more erratic.
“Regenerative food systems are not aspirational, they
are pragmatic. They benefit the entire supply chain, the
whole of the company, and all of global society. The food
and agriculture sector together is the largest contributor
to global warming. At the same time, the growing and
production of nutritious food is the greatest contributor
to human health and well-being. The adoption of
regenerative agricultural techniques harmonizes these
seemingly opposing issues into one initiative.
“Soil is a community, not a commodity. Regenerative food
systems create biologically rich and healthy soils. Healthier
soils sequester and store significant amounts of carbon,
and can substantially reduce global greenhouse gas
emissions. Carbon-rich soils create strong and vigorous
plants that are more nutritious. Biologically rich soils hold
10 to 20 times more water than conventionally farmed
Rob Cameron, Global Head of Public
Affairs and ESG Engagement, Nestlé
With a history of over 150 years, Nestlé has always taken
the long-term view. For decades, we have applied ourselves to
creating shared value wherever we operate and have strived
to be a force for good. But as we examine the world today and
look to the future, it is clear that profound change is required.
“The food systems of which we are a part have delivered
great benefits to the world and withstood great shocks –
not least in recent years. But the multiple threats of climate
change, unprecedented biodiversity loss, social inequality
and risks to human rights, to name but a few, demand a
fresh approach. We need our food systems to be a source
of solutions to such challenges, not a cause of them.
That is the opportunity and regenerative thinking is the
means to grasp it.
“The natural world has an in-built capacity to grow, evolve
and thrive. In nature, there is no such thing as waste;
everything is regenerative. It is time for business to be
inspired by nature – to move from a linear “take-make-uselose”
model that extracts value, to one that is circular, and
operates in the interests of the system as a whole to sustain
and enhance its health.
“This should surely be our goal now. Not only is there
a clear and urgent need for us (and the wider industry)
to take these steps, there is also a compelling business
case for Nestlé to show leadership.
“Our customers and consumers are increasingly concerned
to know the impact of the products they buy. Our investors
are seeking to understand that our operations deliver
positive outcomes in the widest sense. And our people
want to work for a company that makes a positive impact.
“Nestlé’s regenerative journey begins in agriculture.
Regenerative agriculture is rooted in practices that help
improve soil health and fertility, store carbon, retain
moisture and protect and restore biodiversity. But
regeneration at its heart is about people – this is why
we are focused on a just transition – one that inspires,
enables and rewards people in their actions and is fair
in meeting their needs. Farmers’ livelihoods and those
of their communities must be protected.
“The word ‘journey’ is so well used it is almost a cliché –
but there is a reason for this: it is because regeneration is a
journey and like all journeys it begins with some first steps,
experimentation, and a lot of learning. But the direction is
clear: inspired by nature, Nestlé will strive to help create a
resilient future for our planet, its people and our company.
As we look to the next 150 years, nothing less will do.
Engaging our people
The move towards regenerative
food systems marks such a
profound development in our
thinking that we have conducted
a major internal communication
campaign around the topic –
mobilizing 276  000 people to think
differently. As part of the internal
campaign we:
	– Held training sessions
and raised awareness
through different events
around the world
	– Conducted (and continue to
conduct in 2022) live internal
interviews with experts
	– Used internal platforms
to share videos, imagery,
news and more
	– Recruited internal
Ambassadors
	– Launched a regeneration
in action playbook
“Regenerative food systems
are not aspirational, they are
pragmatic.They benefit the
entire supply chain, the whole
of the company, and all of
global society.”
What advancing
regenerative food systems
at scale means to Nestlé
We are very clear in our intention,
and each word explains a specific
part of our shift in thinking and the
acceleration of our activities:
	– Advance by raising our voice
and using our influence
to drive progress in
collaboration with others
	– Regenerative to help
protect, renew and restore
farmland and landscapes
	– Food systems encompass
every actor, activity, process
and product in growing,
raising, making, delivering
and consuming food
	– At scale because the
planet, communities and
individuals need global,
systems-level change
areas. These soils resist erosion and act as reservoirs in
times of drought and sponges in times of torrential rain,
making crops more resilient to the vagaries of climatic
change. From butterflies to bees, cover crops feed and
nourish pollinators, which are responsible for one-third
of everything we eat. Water coming from regenerative
farms is cleaner, with less pollutants that can damage
rivers, fish, and seas. For the farmer, the cost of inputs
and equipment go down over time – and profits go up.
Reducing and eliminating pesticides and herbicides
means better health for the soil and for workers and farm
families. Employing regenerative techniques, the income
for small holder farms increases, income that can be
devoted to children’s education.
“The adoption of regenerative agricultural techniques
is a framework that improves every aspect of what
Nestlé produces and every facet of the world it touches,
nourishes and supports. It is a vitally important and crucial
undertaking, the benefits of which will grow and proliferate
now and far into the future.
Advancing regenerative food systems at scale
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 6
Tackling our Scope 1 and 2 direct and indirect
businessemissions
Benefitting people, nature and the climate through systems thinking
Improving
operational efficiency
Reducing our emissions
By moving to renewable energy
sources at our sites and switching
to lower-carbon alternatives in
our logistics.
Regenerative agriculture
Carbon capture in soil
and plant biomass
By working with farmers as they
shift to regenerative ways of
growing ingredients for food.
Forest Positive strategy
Helping conserve and restore
forests and natural ecosystems
By moving from managing deforestation
risks to helping to conserve and restore
forests and natural ecosystems, while
promoting sustainable livelihoods
and working to respect and promote
human rights.
Water
Managing water resources
By improving efficiency and
helping to restore natural resources.
Rural development
and livelihoods
Supporting communities
By sourcing ingredients that are
produced sustainably we seek to make
a positive contribution to individuals,
communities and the planet.
Human rights
Safeguarding people
By respecting and advancing human
rights in our value chain, we are building
a foundation that contributes to a resilient
future for our planet and its people.
M
inim
izingourScope3indirectvaluechainemissions
Netzeroby2050
Net zero by 2050
Our path to net zero by 2050
at the latest, with actionable
steps and key milestones
across our value chain.
Advancing regenerative food systems at scale
A just transition
Regenerative food systems put people at the center.
The aim is to provide resilient and fair livelihoods and
dignified work that enable people across the world
to support themselves and their families.
The path to regenerative agriculture is a long-term journey
with challenges. This is why we will help farmers by
offering investment, rewarding good practices and offering
technical and scientific guidance. This, together with the
respect and promotion of human rights, will contribute
to a just transition to regenerative food systems.
The bigger picture
Advancing regenerative food systems is about co-creating
a resilient future for our planet and its people, working
to nurture communities, to improve the livelihoods
of our partners and the well-being of our consumers,
and to revitalize natural ecosystems.
This is why the effort requires understanding and support
from all the actors involved, from governments and nongovernmental
organizations to our peer companies and
competitors, financial institutions and commodity traders.
We all have a part to play in helping to make regenerative
food systems a reality.
Naturally interconnected
Our planet’s water, soil and carbon
storage are intrinsically linked, and
critical for the sustainability of our
food systems. Our approach reflects
this interconnectivity.
When we help replenish and restore
the environment, we simultaneously
contribute positively to nature and
biodiversity in our soils, oceans and
forests. We impact the future of
youth, farmers and rural communities,
and we promote respect for human
rights, livelihoods and animal welfare.
For Nestlé, interconnected thinking
also means that our research and
development (R&D), sourcing, product
packaging, logistics and consumer
offering become relevant for the
world we live in today: a world that
urgently needs decarbonization
for its survival, as well as social
equity and opportunity through
diversity and inclusion.
With the severity of climate change
impossible to ignore, embracing
a whole new way of thinking is
now urgent. Systemic change is
required. For Nestlé, embarking on
a journey toward regenerative food
systems is how we can contribute
to achieving the scale of change
required for society.
By considering all these factors we
can all play our role in advancing
regenerative foods systems at scale.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 7
At Nestlé, our Research and Development (R&D)
organization has over 4 100 R&D experts across 23 facilities
worldwide, and we invest CHF 1.7 billion every year. This
gives us the unique ability to discover and develop products
and solutions that are produced with careful consideration
for natural resources and social impacts, contributing
toward advancing regenerative food systems at scale.
4 100
R&D experts at Nestlé
We need to consider if we make a change in a product,
is the impact positive overall? How do we adjust the
different elements of our products while ensuring safety
and quality is not compromised? And how exactly do
we ensure benefits for people and the planet as well
as the business?
R&D plays a key role in helping Nestlé answer these
questions. Through R&D we can unlock the power
of food by offering more tasty, nutritious, affordable
and sustainable products for everyone today, and for
generations to come. We believe that safe, great tasting,
nutritious foods, which are produced within sustainable
and resilient food systems, are essential for a healthy
population and a healthy planet.
A unique innovation capacity
The R&D organization at Nestlé is uniquely formed to
advance purpose-driven innovation across all our product
categories. We have an extensive infrastructure and stateof-the-art
facilities, along with broad and deep expertise in
plant science, food science, nutrition, food safety, culinary
matters, regulatory matters, manufacturing and packaging.
Our R&D capacity means that we can further discover
and develop novel science and technology solutions for:
	– Launching more nutritious and delicious plant-based
products, including meat and dairy alternatives, across
brands and categories
	– Developing more climate-friendly milk by reducing
methane emissions
	– Developing higher-yielding coffee and climate-changeresilient
cocoa varieties
	– Breeding and selecting more nutritious, tastier pulse
varieties with a lower-carbon impact, in collaboration
with farmers
	– Moving toward more recyclable and reusable packaging
	– Creating more affordable nutrition products
	– Meeting personalized dietary and health needs
Further downstream, our R&D organization helps to develop
and introduce new process technologies that lower emissions
and provides guidance on how our product developers can
achieve lower-carbon recipes by substituting ingredients
while maintaining key product attributes. Where possible,
we are also upcycling agricultural by-products to reduce
food waste and nutrient loss, while unlocking new revenue
streams for farmers.
Plastics and packaging
Our R&D organization discovers and develops technologies
for more sustainable packaging as we look to meet our
commitment for all Nestlé packaging to be recyclable
or reusable by 2025.
Our state-of-the-art Nestlé Institute of Packaging Science
employs around 50 packaging experts. They work
alongside over 200 other R&D packaging experts across
our global R&D centers, as well as with academic partners,
suppliers and start-ups. Their work is helping move toward
paper packaging; increasing the use of recycled, bio-based
and biodegradable content in our packaging; simplifying
our packaging; and piloting refillable and reusable systems.
Research and
Development
to advance
regenerative
food systems
We use breakthrough science and
technology across our value chain
to help reduce environmental impacts
and generate positive benefits.
Advancing regenerative food systems at scale
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 8
Creating Shared Value (CSV) is at the
heart of Nestlé’s business strategy.
It is the way we operate, building
long-term value for society and
shareholders at a meaningful scale.
Our plan ‘to advance regenerative
food systems at scale’ is an extension
of our approach to CSV. This approach
supports our company purpose to
unlock the power of food to enhance
quality of life for everyone, today and
for generations to come. It aims to
help us to achieve our commitment to
halve our greenhouse gas emissions
by 2030, reach net zero by 2050 and
support a just transition.
Our
approach
to Creating
Shared Value
The Sustainability Committee also oversees compliance of
specific pledges, the regulatory environment and guidelines
related to our product portfolio.
The Executive Board is responsible for Nestlé’s
sustainability strategy management, through the ESG
and Sustainability Council.
The ESG and Sustainability Council provides governance,
strategic leadership and execution guidance and makes
recommendations to the Executive Board and decisions
on behalf of the Executive Board within its delegated
authority. The Council advises Nestlé’s Executive Board on
making informed and science-based decisions and it drives
the focused and aligned actions to deliver our Net Zero
Roadmap for example.
The Council is chaired by the Group’s Executive Vice
President (EVP) Head of Strategic Business Units and
Marketing and Sales. It also pulls together the geographical
business scopes led by our three EVP Zone CEOs and
functional leadership at the Executive Board level. It meets
every month and reports progress to the full Executive
Board regularly.
To drive implementation and execution of strategies at
the operational level, an ESG Strategy and Deployment
Unit was also created. The ESG Strategy and Deployment
Unit reports to the EVP Head of Operations. It is the
responsibility of this unit to define Nestlé’s sustainability
strategies with the evolving environment and our ESG
commitments in mind.
This team of sustainability experts then both coordinates
and monitors our sustainability activities around the
world. Its role encompasses providing practical guidance
and expertise for markets at the same time as having
oversight of internal ESG sustainability data gathering
and external disclosures.
The new ESG Strategy and Deployment Unit
develops, implements and monitors strategy.
The new ESG and Sustainability Council reviews
and approves the strategy.
Corporate Business Principles
Our Corporate Business Principles form the basis of our
culture, our values and our CSV strategy. The principles
are available in various languages and we have a formal
commitment to provide all employees with training on
them. The ongoing implementation of relevant business
codes, policies, processes and tools ensures compliance.
We monitor their application and effectiveness through
various channels, including our CARE audits.
The Corporate Business Principles are reviewed by our
Executive Board and aligned with international best
practice and standards such as the UN Global Compact
(UNGC) Principles.
Risk Management and Materiality
Every two years, we carry out a comprehensive materiality
assessment. This helps us to identify the economic, social
and environmental topics that matter most to our business
and our stakeholders. Conducting a thorough analysis
in this way not only helps identify topics to cover in our
reporting but also supports decisions on where to focus
internal resources.
The assessment is undertaken by an independent third
party to ensure complete confidentiality and impartiality.
The 2020 assessment results are available on our website.
Although these are the material issues facing our business,
they should not be viewed in isolation. They are increasingly
interconnected and can often impact each other. This is
why we are moving more toward an integrated, holistic
approach to managing sustainability and the associated risks
by fully integrating our materiality process with Nestlé’s
Enterprise Risk Management (ERM) process. This ensures
that sustainability issues are incorporated into the risks
and opportunities being considered across the company.
Our next materiality assessment is due in 2022.
As a business leader, we are committed to transparency
and action on climate-related risks and opportunities.
As such, we have aligned our reporting with the
recommendations of the Taskforce on Climate-related
Financial Disclosures (TCFD). Our TCFD-aligned
disclosures, including our analysis undertaken in 2021,
can be found on www.nestle.com/tcfd-report.
Stakeholders
Our global stakeholder network includes local communities,
suppliers, consumers, non-governmental organizations,
civil society organizations, academia, multilateral
organizations, governments, customers, our employees
and shareholders.
At Nestlé, we hold regular dialogue with these stakeholders
through various platforms, forums and meetings to help
advance our CSV strategy and to support our intention to
advance regenerative food systems at scale. Stakeholder
feedback also informs our approach to reporting and
disclosure and underpins our materiality process.
Our goal is 100% renewable electricity at all our sites by 2025.
Advancing regenerative food systems at scale
In 2021, we also implemented a set of environmental, social
and governance (ESG)-related key performance indicators
for the Executive Board.
ESG and Sustainability Governance Structure
In 2021, we launched a new structure for managing ESG
topics at Nestlé.
Our Board of Directors created a separate, dedicated
Sustainability Committee to review Nestlé’s sustainability
agenda and how our long-term strategy relates to our
ability to create shared value. In particular, the Sustainability
Committee reviews our plans and actions with regard to
climate change, plastics and packaging, water management
and responsible sourcing, while ensuring that Nestlé carries
out human rights due diligence and manages diversity,
inclusion and employee health and well-being appropriately.
Climate and decarbonization is a major material issue
(see right), influencing the development of our Net Zero
Roadmap in 2020 and the launch of our subsequent
regenerative agriculture plan. At the 2021 Annual General
Meeting, our shareholders strongly supported our detailed
Net Zero Roadmap.
ESG and Sustainability Governance
Our diverse Board of Directors oversees the direction of
our company. Since 2015, we have strengthened the Board
through the appointment of 11 new independent directors
with varied experience and expertise directly relevant to
Nestlé, in particular with respect to food systems, food
and beverages, digital and other topics.
As such, the Board of Directors, Chairman, CEO and
Executive Board supervise our CSV strategy and program.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 9
Our R&D approach
We invest CHF 1.7 billion every year in R&D. Our team of
scientists, engineers, nutritionists and regulatory specialists
work toward innovating nutritious, tasty, safe products,
while discovering solutions that help us move toward
regenerative food systems.
When developing products, we assess their environmental
impact to challenge our thinking and to better understand
the carbon emission impact. We use eco-design tools that
R&D has developed to enable us to estimate the carbon
footprint within a specific category or for a certain brand
and more importantly, identify where greenhouse gas
emissions reductions are possible.
As we look to the future, we see our ability to track
and lower the carbon footprint of our food and beverage
products advancing as we enhance our scientific
understanding and develop new technologies. We will
further increase the consumer options for nutritious and
affordable products with a lower environmental footprint.
CASE STUDY
Breakthroughs in
coffee breeding
In Nestlé’s Research center in Tours, France, our plant
scientists work to improve our understanding of the
resilience, productivity and taste of different coffee
varieties. They sort through volumes of data and analysis
and apply their knowledge to develop next-generation
coffee varieties with a lower environmental impact.
Read more about how our research is then
applied in experimental farms in growing
communities to achieve breakthroughs
CASE STUDY
Nestlé R+D
Accelerators
At 12 sites in eight countries, we bring together start-ups,
students and Nestlé intrapreneurs as small specialist R&D
incubator teams. We call this the Nestlé R+D Accelerator
network. Our R+D Accelerators bring highly differentiated
innovations to life in only six months. Each Accelerator
is located at a Nestlé R&D site and focuses on a specific
product category or region.
Since 2019, over 257 participants have benefitted from
the R+D Accelerator program and more than 90 products
have been tested in 19 countries.
Read more about how we are creating
opportunities and innovations
CASE STUDY
Plant-based nutrition
from Garden Gourmet
Olivier Oster, Global Brand Manager Plant Based
Meal Solutions and Chilled Products, Nestlé
“Garden Gourmet’s brand of plant-based food alternatives
recognizes what the rest of the world is coming to understand:
diets that include more plant-based products can still include
all the essential ingredients for good nutrition and taste, while
contributing to a healthy environment and sustainable future
for all. We push ourselves to go beyond sustainability norms
for a category that prioritizes sustainability by design.”
Read more about our plant-based offerings
CASE STUDY
Incoa: 100% cocoa
fruit chocolate
Cocoa pulp is a by-product of cocoa production that is often
discarded. Using a patented natural approach, we extract
the pulp to produce dark chocolate. Incoa is cocoa-pulp
sweetened chocolate, meaning it is made entirely from the
cocoa fruit, without any added refined sugar. It is a great
example of how we can avoid agricultural waste and unlock
potential new revenues for farmers.
Read more about this innovation
CASE STUDY
Partnerships for novel
recycling technologies
Experts at Nestlé’s R&D Center for Waters in Vittel,
France have been working on prototype bottles for
Perrier made from colored recycled PET materials. Using
innovative enzymatic recycling technologies, we can
optimize the number of recycling cycles for the iconic
green bottles, while still retaining the properties of virgin
plastics. The bottles were produced as part of the Carbios
global consortium.
Read more about how we are promoting
the industry-wide use of recycled PET plastic
Advancing regenerative food systems at scale | Research and Development
Our R&D organization has
over 4 100 experts across
23 facilities worldwide.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 10
Engaging on regeneration
Transforming food systems is key for society to
address urgent climate-related challenges and
achieve the Sustainable Development Goals. With
this in mind, on September 16, 2021, we hosted
an online stakeholder dialogue to launch our new
plan to advance regenerative food systems at scale.
For Nestlé, this marked the beginning of ongoing
stakeholder engagement on how to work toward this
goal and the challenges involved.
The event brought together representatives of civil
society organizations and multilateral institutions, policy
makers, business leaders, farmers, and Nestlé staff,
including executive board members, to discuss topics
such as ‘Regenerative food systems: what is needed
for a just transition?’. Our stakeholders highlighted
important themes for further investigation and guidance
on what matters to farmers, consumers and investors.
Talking to stakeholders about
positive water impact
In launching our Nestlé Waters pledge to advance the
regeneration of the water cycle to help create a positive
water impact everywhere our waters business operates
by 2025, we engaged with stakeholders across the
Middle East and North Africa and the European Union.
We asked 63 organizations that joined us for an online
call if our new pledge met their expectations and the
majority responded with positive feedback.
Key Opinion Leader Labs
We recognize that stakeholder engagement is not only
important at the corporate level, but can also help
guide sustainability initiatives at brand level. In 2021,
we organized a series of virtual roundtable events
to gain external perspectives from sustainability experts.
We initially ran two sessions for our Garden Gourmet
range of plant-based foods and one for Wunda, our
plant-based drinks range. Key opinion leaders from
respected international sustainability organizations
appreciated the transparency of the forum and
the opportunity to provide their input and expert
guidance on the brands’ sustainability strategies and
communications. The themes covered aligned with
each brand’s sustainability focus areas and provided
recommendations for Nestlé to consider.
These Key Opinion Leader Labs create interesting
and valuable engagement. They provide us with actions
and takeaways to enhance our brands and give our
brand teams direct contact with expert sustainability
stakeholders on the topics that matter to them.
At the same time, the Labs also help strengthen our
relationships with the stakeholders who take part.
After the success of the first three Labs, we plan
to run more in 2022 for other Nestlé brands.
UN Food Systems Summit dialogues
Nestlé Waters aims to have a positive water
impact everywhere it operates by 2025.
Advancing regenerative food systems at scale | Our approach to Creating Shared Value
The UN Food Systems Summit of September 2021 was
a historic opportunity to drive economic recovery from
the COVID-19 pandemic and get the world back on
track toward achieving all 17 Sustainable Development
Goals by 2030. Nestlé engaged in several ways. Our
CEO Mark Schneider, along with leaders working on
nutrition, agriculture and food policy, attended the PreSummit
discussions in Rome, Italy. He participated in
a panel on the role of business and the private sector
in food systems transformation. The dialogue focused
on soil health, farmer livelihoods, climate change,
innovation and resilience.
Throughout 2021, Nestlé also ran a series of Food Systems
Summit dialogues with key stakeholders to provide input
into the Summit on three important topics.
	– Mainstreaming regenerative agriculture:
This dialogue was co-convened with the Forum
for the Future of Agriculture. The objective was
how to broaden the appeal and implementation
of regenerative agriculture and to discuss solutions
for accelerating such practices globally
	– How to make nutritious diets more affordable,
accessible and adequate:
This dialogue was co-hosted with Tufts University.
Experts from academia, the UN, non-governmental
organizations and the private sector were present.
The discussion focused on food systems transformation
– the barriers and potential solutions, including
shifting behaviors toward healthy, sustainable diets
	– Innovation for food systems transformations:
This dialogue was co-organized with the Swiss Food
and Nutrition Valley. The focus was on exploring how
food systems can be transformed to help produce
and consume sustainable and healthy diets by 2030.
Nestlé CEO Mark Schneider
participated in the Pre-Summit of the
UN Food Systems Summit in Rome,
Italy, on July 27, 2021.
Stakeholder engagement
We engage with our shareholders
through investor meetings and
analyst calls. In 2021, our Chairman’s
Roundtables took place virtually with
investors in Asia, the Middle East,
North America, Switzerland, Germany,
the UK, France and the Netherlands.
Throughout the year we also consult
regularly with our CSV Council, an
external advisory council established
in 2009 and formed of a group of
experts from a broad range of fields,
from corporate responsibility, strategy
and sustainability to nutrition, water
and rural development. It provides
advice to the Executive Board to
ensure the sound development of
Nestlé’s long-term sustainability
strategy and the positive social and
economic impact of the CSV strategy.
It has no formal governance role.
When engaging with stakeholders, we
apply the Nestlé Corporate Business
Principle of ‘transparent interaction
and communication’ to foster
collaboration, knowledge sharing,
open discussion and deep dialogue.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 11
Contributing
to nutritious
and sustainable
diets
We aim to make safe, tasty and
sustainable food that is nutritious,
accessible and affordable.
As a food company with a global presence, our
extensive portfolio ranges from beverages and
meal solutions to confectionery and healthcare
nutrition products. We leverage our decades of
experience and our R&D expertise to offer safe,
affordable, sustainable, high-quality products
for people everywhere and across all life stages.
We are committed to developing products
that are good for you and good for the planet.
Tastier and healthier choices 13
Healthier lives through nutrition knowledge 17
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 12
Food and good nutrition are fundamental
to everyone’s health, well-being and
enjoyment, as well as being part of
people’s cultural identity. As such,
there is an increasing demand for
more nutritious food. Nestlé is working
tirelessly to help unlock the power
of food and meet these requirements.
Background
Populations are growing and many people around the
world are suffering from malnutrition, undernutrition,
vitamin and mineral deficiencies or obesity. This is because
they are either not getting enough food or eating too much
food with limited nutrients. In 2021, the UN Food Systems
Summit identified and drove commitments from all actors
toward the transformation of food systems to make them
more sustainable, equitable and resilient.
As a food innovator, Nestlé cares about making better
nutrition accessible while inspiring people to explore and
enjoy more and more food that supports their health. At the
same time, we are helping to advance food systems so that
they also contribute to regenerating the environment that
provides our raw materials.
Affordability is also a key concern. More than three billion
people are unable to afford a healthy diet. The economic
downturns resulting from the ongoing COVID-19 pandemic
delivered a major blow to world hunger levels, contributing
to a significant increase in undernourishment and increasing
the need for affordable nutrition products. This is why
we play our part in providing wide access to affordable
nutrition products and in contributing to food security.
Tastier and
healthier choices
Contributing to nutritious and sustainable diets
Our performance
Reduction in added sugar in products
since 2017 (%)
4.5
5.1
2020 2021
SDG contributions
We achieved our
extended 2020
commitment to reduce
the sugars we add in
our foods and beverages
by 5%
We made a new
commitment to reduce
sodium in frequently
consumed products by
2025 and 2030
We will make whole
grains the number one
ingredient in as many of
our cereals as possible
and advocate for policies
that help to increase
whole grains consumption
* Of which 11 billion were from Cereal
Partners Worldwide.
** The ‘big four’ micronutrients are iron, vitamin A,
iodine and zinc.
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
Our Reporting Scope and Methodology
for ESG KPIs document provides details
and definitions and can be found at
www.nestle.com/esg-kpis
Number of servings of total products with
micronutrient fortification*,
** (billion)
205.3
207.4
2020 2021
Number of servings of affordable nutrition
with micronutrient fortification** (billion)
120.0
124.6
2020 2021
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 13
distribution systems and marketing strategies
to encourage a global shift towards healthy diets
from sustainable food systems.
“Successful transformation of food systems also depends
on how we grow our food. The food and agriculture sectors
have to invest in nature-based solutions, technology and
innovation, particularly in ways that are inclusive, climate
smart and regenerative. Nestlé is already showing great
leadership in this area.
“Every business involved in any aspect of the food system
must play its part. Companies like Nestlé are already
demonstrating what is possible. Collectively, our job is to
scale these actions into ever-greater impact and by doing
so, ensure actual system change. 
“These actions must be prioritized and taken quickly.
We have only eight harvests until we reach 2030, the
Milestone Year for the Sustainable Development Goals.
From malnourishment to over-nourishment and from
fostering equitable livelihoods to supporting biodiversity
and reducing carbon emissions, we will solve many
challenges by getting this right.
EXTERNAL EXPERT
It’s time
to transform
our global
food systems
Diane Holdorf, World Business
Council for Sustainable Development
Executive Vice-President
Food and the system that produces it is our lifeblood.
Beyond basic human survival and health, it is entwined with
enjoyment, creativity, our culture and heritage. However,
the way we are producing and consuming food needs to
improve to deliver a food system that is equitable, net zero
and nature-positive, and one that nourishes all people.
“Sustainable nutrition – which ensures that food is accessible,
affordable and nutritious while being produced sustainably
– is integral to transforming food systems and tackling
the challenges we collectively face. Both businesses and
governments have key roles to play, with aligned strategies and
actions to achieve lasting results.”
“Behavioral change is a critical contribution to success.
Companies must support consumers in making healthy
and sustainable dietary choices, place a greater value on
nutritious food, and take action to heavily reduce food
waste. They must redesign their product formulations,
Contributing to nutritious and sustainable diets | Tastier and healthier choices
Approach
We take a scientific approach to nutrition, promoting
a balanced diet and meeting nutritional needs across
all stages of life. This is reflected in the breadth and depth
of our portfolio including (but not limited to), maternal
and infant nutrition and healthy ageing.
Our approach includes:
	– Offering more nutrient-dense products by increasing
positive nutrients and ingredients often lacking in diets,
such as whole grains or essential vitamins and minerals,
while continuing to reduce nutrients of concern such as
sodium and sugar
	– Making nutritious products more affordable
	– Providing more nutritious plant-based products
	– Providing nutritional solutions for diet-related ailments
through Nestlé Health Science
Our strategy helped us stay at the top of the 2021 Access
to Nutrition Initiative (ATNI) Global Index, which assesses
the 25 largest food and beverage manufacturers in
the world on their nutrition-related policies, practices,
and performance.
Affordable nutrition
At Nestlé, we have been contributing to the Sustainable
Development Goal of Zero Hunger (SDG 2) through our
Popularly Positioned Products (PPP) Affordable Nutrition
strategy, which aims to provide accessible and affordable
nutrition to lower-income consumers with a focus on
emerging countries. By leveraging our global footprint and
global expertise along the value chain, including in R&D,
we can offer a wide range of products and services that
cater to local consumer nutritional needs and tastes at price
points and in formats those living with a limited budget
(USD 2-4 a day) can afford. Our offer includes widely and
regularly consumed items such as dairy products and
porridges. Many of our affordable nutrition products also
contribute to addressing common deficiencies through
micronutrient fortification.
Performance
Improving the nutritional
quality of our products
We continue to work on sugar
and sodium reductions as part of
our efforts to improve the overall
nutritional profile of our products.
Between 2014 and 2020, we reported
the removal of more than 99 000
equivalent tonnes of sugars. However,
last year we reported that we still
fell just short of our commitment
to reduce sugars we add by 5% by
the end of 2020. We are pleased
to report that we did achieve this
reduction in 2021.
We achieved this result by
reformulating products including
Milo, Nesquik and Nescau, and
by investing in R&D to develop
new sugar reduction technologies
along with work on Cerelac infant
cereals products.
In an effort to drive progress toward
sodium reduction, the World Health
Organization (WHO) called on the
food industry to adopt standardized
targets for sodium levels for the
most relevant food and beverage
categories. Nestlé, as a member of
the International Food & Beverage
Alliance (IFBA), responded to the
request and developed a global
sodium reduction commitment with
standardized, stepwise, voluntary
targets to reduce sodium in our
global portfolios by 2025 and 2030
in key categories of frequently
consumed products. This new
commitment continues the progress
we made under our previous sodium
commitment and we will be sharing
updates in the coming years.
Looking beyond sugar and sodium
reductions, Nestlé has introduced
a new logo called ‘GRAINSMART™
Balance’. Its purpose is to make
it easier for consumers to choose
high-quality cereal products,
consume more high-fiber grains,
and reduce their added sugar intake.
#1
Access to Nutrition
Index ranking
#1
World Benchmarking
Alliance (nutrition) ranking
#2
World Benchmarking
Alliance (overall) ranking
out of 350 food and
beverage companies
The Access to Nutrition Index provides a rating of the
world’s largest food and beverage manufacturers in
contributing to addressing obesity, diet-related chronic
diseases and undernutrition.
For the second time running, in 2021 Nestlé achieved
first place in the ATNI Global Index, having been in the
top three since 2013, giving external recognition to our
nutrition-related governance, strategy and policies as well
as the healthfulness of our portfolio. Our PPP strategy for
making nutritious products affordable and accessible to
underserved consumers was recognized as an industry
leading practice.
The World Benchmarking Alliance represents organizations
working at global, regional, and local levels to shape the
private sector’s contributions to achieving the SDGs.
The Food and Agriculture Benchmark measures and ranks
350 of the world’s most influential food and agriculture
companies on their contributions to transforming the global
food system. In 2021, we led the World Benchmarking
Alliance in nutrition (and ranked second overall).
Global nutrition indexes
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 14
Nestlé Health Science
Nestlé Health Science offers an extensive portfolio
of science-based consumer health, medical nutrition
and supplement brands. It is a global leader in vitamins,
minerals, herbals and supplements.
In December 2021, Nestlé Health Science launched its
first prediabetes program in Malaysia. It is estimated that
approximately 7.5% of the world’s adult population has
suboptimal metabolic health and is considered prediabetic,
putting them at risk of developing type-2 diabetes and
cardiovascular diseases.
The program consists of a new food supplement – Nutren
GlucoSmart – which is made from mulberry leaf extract
and can be sprinkled over meals. Mulberry leaf extract is
clinically proven to help maintain normal blood glucose
levels after a meal. Secondly, a digital platform was created
to help provide weekly prediabetic meal plans in line
with local guidelines and recommendations for a healthy
and balanced diet.
Nuun, which was acquired by Nestlé Health Science in
2021, is now B Corp certified. The company’s focus on
balancing purpose and profit has made its everyday and
sports electrolyte hydration tablets a leading brand in the
United States. Nestlé Health Science is now expanding
the brand globally.
In 2021, we also launched SimpLink, a solution to make
tube feeding simpler and more hygienic. SimpLink lets
caregivers and patients connect a medical nutrition
bottle directly to a patient’s feeding tube, eliminating a
multi-step process with a syringe that can be messy or
lead to contamination. Designed by Nestlé scientists, it
makes nourishing tube-fed patients easier, cleaner and
more portable. Launched in Italy and the Nordics in 2021,
SimpLink is expected to expand into the Spanish and UK
markets in 2022.
Plant-based foods and beverages
We are rapidly expanding our plant-based range to meet
significant increases in consumer demand. In 2021, we
launched Garden Gourmet’s Vrimp – a new, plant-based
seafood alternative. Vrimp has an authentic texture and
flavor and is vegan, made with a combination of seaweed,
peas and konjac root. It was developed by Nestlé R&D
experts in Switzerland and Germany.
We also launched vEGGie, a nutritious, tasty alternative to
conventional eggs that is animal friendly. Containing soya
protein and omega-3 fatty acids, the product achieves a
Nutri-Score A in Europe.
Wunda, a new range of pea-based milk alternatives, is
made with yellow peas that provide high-quality protein
and offer strong nutritional value compared with most other
plant proteins on the market. Yellow peas are high in fiber,
low in sugar and fat, enriched with calcium and a source
of vitamins D, B2 and B12. The original, unsweetened and
chocolate recipes all achieve a Nutri-Score A in Europe.
Wunda uses FSC-certified cartons, 100% renewable energy
during manufacturing and is certified carbon neutral. The
chocolate variety uses Rainforest Alliance certified cocoa.
Wunda avoids the compromises that other milk alternatives
often face. Many such products have a specific taste, are
low in protein or don’t mix or foam well in hot beverages.
Wunda pea-based milk alternatives, which were developed
by our intrapreneurs in only six months in our R+D
Accelerator, are highly versatile and an excellent source of
protein and fiber. Wunda has been available in France, the
Netherlands and Portugal since 2021, with a rollout in other
European markets planned in 2022.
In October 2021, we published a paper that brought
together a roundtable of experts to define what nutrition
criteria would look like for plant-based, dairy-free
alternatives. This topic has not been addressed in detail
before and we are pleased to contribute to its development.
GRAINSMART™ Balance is based on a science-based
nutritional concept that was developed and validated by
Nestlé scientists in collaboration with experts from Tufts
University in Boston, U.S., Nutrition Research Australia and
the National University of Singapore. It consists of a defined
ratio between carbohydrates, fiber and sugars of 10:1:2.
This means for every 10g of carbohydrate there should
be a minimum of 1g of fiber and no more than 2g of free
sugars. We have used the logo on certain products, such as
Nesvita porridge and Nesquik All Natural Porridge in several
European countries, and will roll out its use in 2022.
All cereal products that carry our distinctive Green Banner
provide a minimum of 8g of whole grains per 30g serving.
In addition, 87% of our cereal products and 96% of our
cereal products aimed at kids and teens have whole grains
as the number one ingredient. We continued our successful
collaboration with the Whole Grain Initiative to support
International Whole Grain Day.
We also furthered our work on fortifying our affordable
nutrition products. Now 82% of our affordable nutrition
products for low-income consumers are fortified with
at least one essential micronutrient, such as iron, zinc,
vitamin A or iodine.
Advocacy and scientific dialogues
In support of the first ever UN Food Systems Summit held
in September 2021, Nestlé contributed to the summit by
co-hosting a dialogue session with Tufts University. A total
of 57 experts from academia, the UN, non-governmental
organizations and the private sector were present. We
discussed food systems transformation – the barriers and
potential solutions, including shifting behaviors toward
healthy, sustainable diets.
In support of the UN Food Systems Summit, we also coorganized
a dialogue with the Swiss Food and Nutrition
Valley that brought together over 60 participants from the
Swiss government, universities, start-ups, civil society and
industry. The focus was on exploring how food systems can
be transformed to help produce and consume sustainable
and healthy diets by 2030.
Contributing to nutritious and sustainable diets | Tastier and healthier choices
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 15
Quality and food safety
Safety and quality are our utmost priorities. They are an
integral part of Nestlé’s Corporate Business Principles
as well as being embedded in our purpose and values.
We take care of food safety and quality from the field to
the consumer’s home. We carefully check all incoming
materials, processes and products in our factories.
In addition, with more than 800 experts dedicated to
specialized analytical testing across 20 laboratories
worldwide, we also test our products more than ever
before, performing more than four million tests every year.
We take steps not only to meet internationally recognized
standards in food safety and quality management, but also
pride ourselves in being a standard-setter, driving efforts to
raise the bar in our industry using rigorous processes and
best-in-class scientific techniques.
Ninety-seven percent of our manufacturing and R&D sites
are certified to FSSC22000 - a program recognized by the
Global Food Safety Initiative (GFSI). Despite COVID-19
restrictions, all our sites maintained their GFSI certification.
One audit was moved to 2022 while keeping the
certification valid. In addition, 100% of corrective actions
are addressed and managed within agreed timeframes.
We have programs in place to support our suppliers and
co-manufacturers to also adopt GFSI-recognized food
safety programs.
In 2021, there were nine product recalls with a potential
food safety impact, which were due to foreign bodies risk
and inaccurate labeling. Foreign body prevention remains
a key focus area with cross-functional
teams analyzing each root cause,
driving actions and sharing learnings
to drive food safety culture and prevent
recurrence. Equally, we drive global and
local initiatives to eliminate labeling
defects, including further standardizing
our practices and learning by sharing.
We take immediate steps to resolve
potential or actual safety or quality
issues and implement practices to
prevent any repeat occurrence. This
is key to maintaining people’s trust
in our products.
These safeguards give us confidence
that our strict safety and quality
criteria are being met.
Outlook
Our direction of travel is clear. We
will continue to make every effort
to contribute to healthy diets while
reducing the environmental impact
of our products.
As such, adding more nutritious
products to our portfolio remains a
priority, as does affordable nutrition
and micronutrient fortification.
This is a complex endeavor as we
take multiple factors into account,
including nutrient quality and density
and bioactives as well as safety, taste,
texture, affordability and accessibility,
and sustainability.
Building on the solid foundations we
have already put in place over many
years, we will continue to strengthen
our contribution to advancing
regenerative food systems at scale.
Performance
Access to affordable nutrition is a global challenge, with
three billion people unable to afford healthy diets. The
current public health crisis, coupled with the economic
effects of the pandemic, has made this situation harder
for many vulnerable consumers, particularly in emerging
countries, and exacerbated key nutrient deficiencies.
With the aim of bringing people more nutritious foods,
Nestlé has developed a nutritious sorghum-based porridge
that upcycles a Milo side stream to fully valorize raw
materials and avoid nutrient loss.
The sorghum side stream from the Nestlé factory in
Agbara, Nigeria is highly nutritious but is typically not used
during the production of malt for Milo. Now, the sorghum
is blended with cereals such as wheat and maize to meet
regional needs and tastes, under our Golden Morn brand.
The product is fortified with GRAINSMART™ Protect,
a smart combination of micronutrients to support
the immune system.
Using this side stream helped reduce the cost of
ingredients and has allowed Nestlé to develop a nutritious
breakfast option that lower-income families can afford.
Developed by experts at Nestlé’s R&D Center in Abidjan,
Côte d’Ivoire, together with the company’s global R&D
network and local markets, the porridge is now being
tested with consumers in Côte d’Ivoire, ahead of a
regional launch in 2022.
By fully valorizing
agricultural ingredients
CASE STUDY
Creating affordable,
nutritious porridges
“Ensuring that everyone can
enjoy affordable, nutritious
foods is a priority for Nestlé.
Our teams developed the
recipe for this porridge to suit
local nutritional needs and
tastes. Using the sorghum
side stream is a double win. It
provides us with an affordable
source of protein and fiber –
and helps to reduce food waste
and nutrient losses.”
Tesfalidet Haile, Head
of Nestlé’s R&D Center
in Abidjan, Côte d’Ivoire
Contributing to nutritious and sustainable diets | Tastier and healthier choices
88%
Ingredients sourced from
Tier 1 supplier facilities
certified to a Global Food
Safety Initiative (GFSI)
recognized food safety
certification program
(% by cost)*
Global Food Safety Initiative (GFSI) audits
in our facilities
Major and minor non-conformance rate 2.85
Major non-conformance corrective
action rate
4.25
Minor non-conformance corrective
action rate
1.56
* Based on cost as per the SASB definition, rather
than as a percentage of Tier 1 supplier sites as
stated in 2020. When considering sites against
the previous Nestlé definition, 89% were GFSIcertified
or at least Global Market Program basic
level in 2021, versus 85% in 2020.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 16
Background
Nutrition is a foundation stone of health. It has also been at
the core of our company’s purpose for more than 150 years.
Good nutrition is a critical part of every infant and mother’s
health. It contributes to stronger immune systems, a lower
risk of non-communicable diseases and longevity. However,
currently the world faces the triple burden of malnutrition,
undernutrition, vitamin and mineral deficiencies and
obesity. Consequently, people seek guidance to achieve
a balanced diet, age-appropriate portions and nutritious
home cooking.
The previous chapter shows how we are improving the
nutritional quality of our products. However, we can also
help reduce the global burden of non-communicable
diseases by helping people make informed choices
and promoting balanced and adequate diets at every
stage of life.
To help people and families live
healthier lives, it is important that we
provide accurate relevant information
about our products, that we market
them responsibly and that we promote
healthy nutrition through supporting
education, sharing nutritional science
and other initiatives.
Healthier lives
through nutrition
knowledge
Contributing to nutritious and sustainable diets
SDG contributions
Approach
We aim to inspire people to live healthier lives in four main
ways: on-pack nutrition information and portion guidance,
shared insights, responsible marketing and our Nestlé
for Healthier Kids initiative (N4HK) (see case study on
following page).
On-pack nutrition information and portion guidance
Consumers expect to know what is in the food they are
purchasing. This is why we provide nutritional information
on products we sell. In addition, how much people eat can
be as important as what they eat. Launched in 2013, the
Nestlé Portion Guidance initiative aims to help consumers
understand what constitutes an appropriate portion
of our products.
Shared insights
We can help promote healthy diets and lifestyles by sharing
research and information.
Responsible marketing
Our Executive Board approved
an update to the Nestlé Marketing
Communication to Children Policy
in 2021. Global guidelines are
designed and reviewed by a crossfunctional
working group that
includes Global Public Affairs, Global
Marketing, N4HK leadership and
Legal and Compliance. In addition, we
keep leading the way by publishing
our annual compliance report on our
policy for implementing the WHO
Code on the Marketing of Breastmilk
Substitutes. This report provides
insight on Nestlé’s robust WHO Code
compliance system and highlights
that when cases of non-compliance
are discovered Nestlé takes swift
actions to address them.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 17
Contributing to nutritious and sustainable diets | Healthier lives through nutrition knowledge
Performance
On-pack nutrition and portion guidance
A new GRAINSMART™ Balance logo was introduced
in 2021 to help consumers recognize products
with high-quality carbohydrates.
Shared insights
Following a successful pilot in Ghana, in 2021, we rolled
out our Live Strong with Iron campaign in Central and
West Africa. The campaign features our own employees
as ambassadors for the consumption of iron-rich foods.
Responsible marketing
Responsible marketing to children
To help children live healthy lives, we make sure that
our foods and beverages are marketed responsibly.
Our industry leadership and commitments to responsible
marketing have been widely acknowledged. Nestlé ranked
third in the ATNI Global Index relating to marketing,
including marketing to children.
Additionally, we helped to raise industry standards in
marketing to children as a contributor to the updated IFBA
Global Responsible Marketing Policy. We have updated
the Nestlé Marketing Communication to Children Policy
accordingly, with the main changes being restricting the
marketing of indulgent products to children under 13, and
extending existing marketing limitations in primary schools
to secondary schools.
Breast Milk Substitutes
In 2021, we made several new commitments in response
to the Breast Milk Substitute Call to Action from the World
Health Organization, Save the Children, UNICEF and other
civil society groups. The responsible marketing of breastmilk
substitutes, feeding bottles and teats is crucial to
maximizing nutrition for babies through breastfeeding
as well as maintaining public trust. Nestlé pledged to
unilaterally stop promotion of infant formula in all countries
for babies aged 0-6 months, extending the provisions of
our existing policy to the United States, Canada and Japan,
where no regulations currently exist.
In addition, we will advocate for the regulation of marketing
of infant formula for babies up to 12 months of age globally.
We also committed to strengthening our advocacy practices
in line with the Responsible Lobbying Framework.
As a result of our policies and focus on implementation, we
achieved an increase of 12 percentage points in the Access
to Nutrition Breast Milk Substitute and Complementary
Foods Index 2021. Our business was assessed as highly
compliant in Mexico and the Philippines, the two countries
Nestlé for Healthier Kids (N4HK) is a worldwide
initiative to help parents raise healthier and happier
children. It promotes healthy eating and lifestyle
habits for children aged 3 to 12 years. The four
pillars of our work are:
	– More fruits and vegetables
	– More water
	– More movement (physical activity)
	– Eating portion sizes appropriate for the
age of the child
We believe that developing healthy eating habits in
kids starts before you even get to the kitchen – it
includes meal planning, shopping and preparation.
Our campaign encourages families to involve
children at every stage because cooking can be
an adventure, and each adventure can be an
opportunity to teach healthy habits.
We also try to make healthy eating fun for families
with creative suggestions, such as adopting the
theme of a fairy tale, where fresh ingredients
are the main characters. Making the process fun
can help overcome obstacles and enable parents
and kids to create their own healthy stories
of good eating.
We have also created short, catchy videos that
encourage families to let kids pick their own fruits
for breakfast, make shopping lists and handle
ingredients. We even turn the preparation of
drinking water into a fun process by showing
how to infuse it with fruits.
We work with social media influencers to help get
our message across. They share ideas for involving
kids in the kitchen, managing the daily challenges of
feeding kids and making healthy and creative dishes.
N4HK is our effort to answer children’s nutritional
needs while providing nutrition education.
Following a successful 2020 campaign, we
updated N4HK in 2021 to continue providing
nutritious recipes for parents to cook with their
children and to build awareness of the importance
of involving children in meal preparation.
Making fruits and
vegetables fun through
family meal preparation
Nestlé for
Healthier
Kids
CASE STUDY
Channel 2021
TV 98.7%
Websites 100%
Social media 83.4%
Influencers 100%
Total 95.5%
Compliance with Nestlé Marketing
Communication to Children policy**
24
Countries with breast-milk
substitute compliance audits
(18 in 2020)
where breast milk substitute manufacturers’ marketing
practices were assessed. We also maintained inclusion
in the FTSE4Good BMS index (first inclusion in 2011).
See our annual compliance report for more insight on
Nestlé’s robust WHO Code compliance system.
In 2021, there were no material sanctions (over CHF 10 million)
due to product labeling or marketing violations.*
* No sanctions related to product labeling or marketing violations occurred
in 2021 above the indicated materiality threshold.
** For this reporting year, EU pledge monitoring results for TV, Influencers,
Websites and Social Media are used as a proxy for the Compliance with
Nestle Marketing Communication to Children Policy. We will keep using
recognized monitoring systems to report against this KPI.
CASE STUDY
The Parenting Index
We firmly believe that our commitment to
supporting families in the first 1 000 days of life
is one that can only be deepened by a greater
awareness of the realities of being a parent in the
twenty-first Century. The launch of Nestlé’s The
Parenting Index in 2021 supports this commitment.
The index provides a fascinating snapshot of the
views of over 8 000 parents from 16 countries.
This first-of-its-kind study reveals perceptions
and realities about the ‘ease of parenting’.
The Parenting Index is another strand in The
Nestlé Parenting Initiative, through which we
work with other employers, governments and
broader communities to address the challenges
that parents face.
We are committed to commissioning this index
on a biennial basis to continue to benchmark
and monitor change. The data, which are publicly
available, can be used by companies and
governments in their parenting policy reviews.
Outlook
We remain committed to providing transparent on-pack
nutrition information and portion guidance, to marketing
our products responsibly and to promoting healthy diets
and lifestyles. We will also continue to help parents foster
healthy eating habits in their children.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 18
At Nestlé Health Science, it is important to share our
knowledge and discoveries at scientific conferences and
symposia. At these events for technical experts, scientists,
academics and opinion leaders, we introduce our research
and data on nutrition science, helping attendees understand
how Nestlé helps to foster healthier lives.
“Take, for example, the symposium that we hosted in
June 2021, at the American Diabetes Association’s Virtual
81st
Scientific Sessions, on Nutritional Approaches for
the Prevention and Remission of Type-2 Diabetes and
Weight Management. We invited experts in the health
nutrition field to join us in discussing the role of nutrition
intervention on the pathophysiology and management
of obesity, type-2 diabetes and associated diseases.
During the event we also hosted a personalized virtual
booth, providing attendees with the opportunity
to interact with experts from Nestlé Health Science
and learn about our research and innovation for diabetes
and weight management.
“One important development we shared at the conference
was research on a product that helps people with type-2
diabetes to manage the disease. Diabetes affects some
537 million people around the world and controlling
blood sugar levels is a challenge for many. So, we have
developed a highly concentrated whey protein microgel
Odd Erik Johansen,
Global Clinical Development Lead,
Cardio-Metabolism,
Nestlé Health Science
In improving
nutrition
science is key
Contributing to nutritious and sustainable diets | Healthier lives through nutrition knowledge
CASE STUDY
The Global Nutrition
and Health Atlas
Dantong Wang, Nestlé Research Senior Scientist
“We wanted to make nutrition and health data accessible in a
quick, interactive and user-friendly format, which is why we
partnered withTufts University. We felt it would be useful to the
public, to researchers, to policymakers and to people everywhere
who want to have an overview of what the nutrition and health
situation is globally or nationally.
Read more aboutt the Global Nutrition and Health Atlas
Enabling healthy
food environments
Nestlé Professional is our dedicated food service division,
working with schools, hotels, aspiring chefs, baristas and
future food service leaders. Since 2015, over 151 000 people
have followed our LinkedIn page.
In 2021, we partnered with the Culinary Arts Academy in
Switzerland, one of the world’s top-ranked culinary schools.
We worked with students to promote healthier diets and
lifestyles, using our expertise in nutrition, plant-based foods
and sustainability to set creative cooking challenges.
With our partner, Worldchefs, we delivered a series of
webinars for interested participants in the out-of-home
industry. The webinars were free of charge and shared
knowledge of best business practices, consumer trends,
plant-based and coffee category knowledge, nutrition
and sustainability. We issued 2 545 digital certificates to
participants from all over the world, allowing them to add
the course to their CVs and LinkedIn profiles.
With Worldchefs we also celebrate International Chefs
Day annually. In 2021, through local events and a range
of digital resources, chefs engaged children on the impact
food production and consumption has on the environment.
A child-friendly sustainability booklet helped to bring the
2021 theme – Healthy Food for the Future – to life for over
90 000 children.
In 2021, Nestlé Professional USA
committed USD 1 million to the
National Restaurant Association
Educational Foundation to support
young people from all backgrounds
in pursuing a future in the restaurant,
food service and hospitality industry.
7 000
Students have completed
the Worldchefs Academy
course since 2018
Our partnership with the Culinary
Arts Academy in Switzerland is
helping to promote healthier diets
and lifestyles.
NESTLÉ EXPERT
that simplifies pre-meal whey protein ingestion
and improves blood sugar control, reducing post-meal
blood sugar spikes, improving the body’s insulin response
and clearing glucose in the blood.
“Results have been encouraging. In clinical trials
of the microgel, glucose levels were reduced by 22%
in participants ingested with whey protein and insulin
response was significantly higher.
“It’s all part of our effort to find new ways that nutrition
can support people’s health, and then to share our
discoveries through avenues that demonstrate the strong
scientific basis of our work.
“There is a strong interconnection between
nature, food and medicine in the world. While
there are still many stones to be turned in this
area, Nestlé is doing its part to make lives
better and healthier.”
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 19
We can move beyond just minimizing
our impact on resources and instead take
a regenerative approach with the help
of our partners.
The way we approach sustainability is evolving.
This is visible through our work on climate,
nature, water and packaging.
Building on our Net Zero Roadmap, our new
efforts related to regenerative agriculture, our
Forest Positive strategy and the Nestlé Waters
pledge lie at the heart of this change. These
pioneering approaches are now inspiring the
direction of travel for the entire business.
Helping to protect,
renew and restore
natural
resources
Climate and nature 21
Water30
Packaging and circularity 34
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 20
Climate
and nature
We recognize how
deeply connected food
systems are to the planet’s
resources. It is imperative
to our business and our
future that we take the
lead and inspire others
to help protect, renew
and restore the resources
we all depend on.
Background
Food systems have an important impact on the climate.
Agricultural activities, such as land-use change and
agricultural expansion, are linked with approximately one
third of global greenhouse gas emissions and with an
accelerated loss of biodiversity, habitats and ecosystems.
At the same time, the effects of climate change have
already begun to impact food systems. Altered weather
patterns are affecting growing seasons and making crop
yields less predictable, while increases in extremes such as
droughts and floods are threatening food security.
We must act now to help avoid the worst potential climate
scenarios and protect people whose livelihoods depend on
agriculture from the changes we know are coming.
Our intention to advance regenerative food systems
at scale recognizes that, when it comes to climate
and nature, it is no longer enough to simply aim to do
no harm. We must aspire to help protect, renew
and restore the planet’s resources.
SDG contributions
Our performance
97.2%
Deforestation-free in our
primary meat, palm oil,
pulp and paper, soya and
sugar supply chains
(90.0% in 2020)
We will reach net zero
by 2050 at the latest, even
as our business continues
to grow
By 2025, we will reduce absolute emissions by 20%
from 2018 levels
By 2030, we will reduce absolute emissions by 50%
from 2018 levels
We will achieve
and maintain 100%
deforestation-free
primary supply chains
By 2022 for meat, palm oil, pulp and paper, soya
and sugar, and by 2025 for coffee and cocoa
Helping to protect, renew and restore natural resources
GHG emissions for Scope 3: all other indirect
emissions** (million tonnes of CO2e)
114.00
113.72
2020 2021
GHG emissions for Scope 2: emitted indirectly
(market-based) (million tonnes of CO2
e)
1.91
1.61
2020 2021
GHG emissions for Scope 1: emitted directly
(million tonnes of CO2e)
3.26
3.37
2020 2021
* Baseline restated due to acquisitions, divestitures
and adjusted scope.
** Includes emissions that are not in scope for net zero
roadmap calculations above.
63.7%
Renewable electricity
sourced at year end
(50.5% in 2020)
“Turning our climate roadmap into practice enabled us to
decouple greenhouse gas emissions from company growth.The
combination of the carbon reduction projects with the longerterm
removals we have initiated is paving our way to net zero.”
Benjamin Ware, Head of Climate Delivery and Sustainable
Sourcing, Nestlé
4.0
Million tonnes of absolute
CO2
e reductions in 2021
9.7
Million tonnes of CO2
e
removals secured since 2018
13.7
Million tonnes of CO2
e
cumulative reductions
achieved and removals
secured since 2018
Net Zero Roadmap scope: greenhouse gas (GHG) emissions reductions
Against 2018 baseline (million tonnes of CO2
e)
2018 2021 2030
94.4
98.4
4.0 Reductions
Business as usual
Actual emissions
2019 2020
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
EY reviewed for consistency
Our Reporting Scope and Methodology
for ESG KPIs document provides details
and definitions and can be found at
www.nestle.com/esg-kpis
Peak carbon
93*
50% reduction from
2018 levels by 2030
Total Scope 1, 2 and 3 GHG emissions
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 21
27.2%
Global fleet of vehicles
switched to lower-emission
options (17.6% in 2020)
Approach
In 2020, we launched our Science Based Targets initiative
(SBTi)-aligned Net Zero Roadmap, a science-based plan
that expands on our climate ambitions. Thanks to this plan,
we are putting peak carbon behind us and are on track to
achieve our emissions reduction targets for 2025 and 2030.
Because climate intersects every part of our company,
it forms one of the five workstreams of our new central
ESG Strategy and Deployment Unit.
Strategies for all emissions
A detailed analysis of emissions against our 2018 baseline
showed 95% of our greenhouse gas (GHG) emissions
came from activities in our supply chain (such as farming
and shipping) and just 5% from our own operations.
Dairy and livestock ingredients are our largest single
source of emissions – accounting for approximately half
the emissions associated with producing our ingredients.
We identified that to make progress toward our net
zero ambition we must focus primarily on our upstream
supply chain. This led to us developing two main strategic
approaches for tackling our Scope 3 emissions:
Forest Positive and Regenerative Agriculture.
Performance
As a result of GHG reduction projects being scaled up
in our operations and supply chain, we have put peak
carbon behind us following two consecutive years of
emissions reduction, while our business has grown.
We have reduced absolute GHG emissions by
4.0 million tonnes.
We restated the 2018 baseline emissions in scope for
our Net Zero Roadmap from 92 million tonnes to 93
million tonnes, due to acquisitions, divestitures and
adjusted scope.* Without action, business growth would
have increased our emissions to 98.4 million tonnes by
the end of 2021.
However, we have achieved 4.0 million tonnes of GHG
emissions reductions (CO2
e) through our climate program.
While our year-end emissions of 94.4 million tonnes
were still higher than in 2018, our performance clearly
demonstrates a downward trajectory. We continue to roll
out our climate program to reduce emissions as much as
possible, aiming for net zero by 2050 at the latest.
Helping to protect, renew and restore natural resources | Climate and nature
Carbon reductions,
removals and neutrality
To achieve net zero emissions, we need to reduce
emissions as much as possible. Switching to source our
ingredients from regenerative agriculture by 2030 will
help us do so, as will investing in sustainable logistics,
packaging and manufacturing activities.
Our Net Zero Roadmap also includes carbon removals.
As a company with a large land footprint, we are committed
to making a significant contribution to decarbonization
through natural climate solutions projects in our value
chain. These ‘insetting’ projects take place within our
supply chain and the landscapes where we source our raw
materials, and help restore forests, wetlands and peatlands,
or improve land management. Our projects can also help
generate additional benefits for communities and protect
natural ecosystems that are under threat.
Together these activities form the basis for our
SBTi-aligned target and Net Zero Roadmap.
In addition to the carbon reductions and removals in our value
chain, in the short-to-medium term our brands are investing
in carbon credits to compensate for emissions relating to their
products. We purchase high-quality carbon credits that help
fund natural climate solutions and other activities outside our
value chain, including tree planting, forest protection and,
in some cases, social programs for rural communities.
Brands can communicate the resulting carbon neutral
status to consumers – as long as they can prove
the GHG reduction and commit to significantly and
progressively reducing their GHG emissions in line with
the Net Zero Roadmap.
CASE STUDY
The Brands
Climate Hub:
Helping
our brands
reach carbon
neutrality
Gaëlle Nuttall, Global Climate
Change Manager, leading the
Brands Climate Hub
“We have improved our ability
to help brands on their climate
journeys. Every Nestlé brand
performing a Life Cycle
Assessment now uses the
same methodology and the
studies are critically reviewed
by an independent third party.
The Brands Climate Hub
team performs the Life Cycle
Assessments and ensures that
all GHG reduction roadmaps
and carbon credit sourcing
follow Nestlé guidelines, in
compliance with high-quality
industry standards.”
Read more about our Brands Climate Hub
* Adjusted scope reflects improved methodology for calculating
transport emissions.
Waste
composition
Hazardous
waste generated
Non-hazardous
waste generated Total
Metals 79 39 581 39 660
Plastics 482 60 178 60 660
Sludge 83 307 129 307 212
Organic material 187 789 698 789 885
Other 11 917 358 894 370 811
Total 12 748 1 555 480 1 568 228
Total weight of waste generated in 2021
and a breakdown of this total by composition
of the waste (metric tonnes)
In addition to reducing emissions, a future in which the
average global temperature is expected to rise by 1.5
degrees requires food and agriculture companies to invest
in carbon removals connected to their value chains. We
have already begun this process, initiating projects that will
sequester 9.7 million tonnes of CO2
e over project lifetimes
through our Global Reforestation Program.
Scope 1 and 2 emissions
All of our Scope 1 and 2 emissions are included in our
Net Zero Roadmap, and our actions to address them
are contributing to our absolute emissions reductions.
In 2021, we increased the percentage of renewable
electricity sourced to 63.7% (2020: 50.5%), in line with our
commitment to source 100% renewable electricity across
our sites globally by 2025. The increase was due to many
sites in Argentina, Australia, Mexico, New Zealand and
Russia achieving 100% renewable electricity.
Through our Green Fleet Project, we are shifting to electric,
biofuel, hybrid or plug-in hybrid vehicles. In 2021, our
Green Fleet increased from 17.6% to 27.2% across our entire
corporate fleet.
Scope 3 emissions
Our total reported Scope 3 emissions include some
categories that are not currently covered by our SBTi-aligned
GHG emissions reduction target. These include consumer
use of sold products, and purchased services, leased
assets, capital goods, and investments. As a result, our
total reported Scope 3 emissions are higher than the actual
emissions reported for 2021 against our net zero baseline.
Most of our Scope 3 emissions reductions are the result
of interventions in our livestock and dairy supply chains,
as well as our Global Reforestation Program. Read more
about net zero dairy and our Forest Positive strategy.
Sustainable transport
We continued to roll out our lean-logistics transportation
hub (T-Hub) to more markets, to further reduce our supply
chain emissions with advanced transport analytics for our
distribution activities.
We also worked toward further reductions in our
transportation emissions utilizing the Global Logistics
Emissions Council (GLEC) Framework:
	– Investments in IT systems enabled us to better fill
vehicles and improve journey planning
	– Our S.Pellegrino brand used fleet vehicles powered
by liquefied natural gas (LNG), as the fossil fuel with
the lowest carbon intensity, and is moving to Bio-LNG
for both land and sea transport
	– We piloted zero-emission tailpipe technology together
with logistics partners
	– In Switzerland, we introduced a hydrogen-powered
truck to deliver Nespresso products, while in Sweden
we are trialing an electric truck
We are also implementing projects to reduce Scope 3
emissions across our broader supply chain. In one such
example, we worked with a specialized consultancy
in Spain to produce a TV advertising campaign more
sustainably. This included using recycled props and
wardrobe to avoid purchasing and disposing of new
costumes. We sourced locally produced food and
introduced more plant-based menu items for the cast and
crew, along with implementing recycling systems on site.
2020 2021
Energy consumption
(Gigajoules)**
81 385 568 82 779 476
Energy consumed that is
renewable energy (%)
23.1 25.3
Energy consumed that was
supplied from grid electricity (%)
12.2 10.2
Energy consumption
EY reviewed
for consistency
** Excludes energy consumption at head offices and distribution centres.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 22
Helping to protect, renew and restore natural resources | Climate and nature
best options to reduce and sequester carbon. Different
farms will have several pathways to choose from based on
personal preferences. To address this, we have identified
160 farming archetypes arranged into eight categorical
clusters as a basis for localized pathways
for market-led approaches.
“It is important for us to illustrate on existing farms what
a transformation may look like in their region. These farms
support the dialogue with our suppliers and help us to
identify what further research, training, support tools
and financing may be required. By doing this, we aim
to remove uncertainties, minimize risk and reduce the
hurdles to uptake.
“The most impactful commitment is our
approach to use regenerative agriculture
to progress toward net zero.”
“Early results from these reference farms are very
encouraging, opening the possibility for dairy farms to not
only move toward net zero, but to potentially remove more
carbon than they emit. The most impactful commitment is
our approach to use regenerative agriculture to progress
toward net zero.
Scaling emissions reductions
“We are not only piloting future farm models. In many
cases, we have also accelerated existing programs in dairy
to professionalize or support a just transition in our supply
chain that takes into consideration the farms’ profitability.
This scaling is about creating greater CO2
e reductions. The
practices we look at include enriching animal diets, planting
multi-species pasture, improved production management,
biogas digesters, fertilizers and solar panels.
Sequestering carbon
“Improving soil health is one of the best things we can do
on farms. Building rich, deep, healthy soils has the potential
to sequester carbon and to enhance water percolation and
retention, which results in better climate resilience. All of
this positively impacts the farms’ biodiversity by creating
natural habitats for plants and animals. Soil health can
be improved by reducing tillage, keeping the soil covered
using cover crops such as oats, mustard, clover, peas,
beans, amaranth or millet. Switching to multi-species
pastures, planting trees and hedgerows, and establishing
riparian buffers or silvopasture productions systems further
improves the carbon footprint and biodiversity of the farms.
“Beyond this, when coupled with low-stress milk production
systems managed by skilled people, the practices that
are put in place to improve soil health can also boost milk
production and with that farmers’ livelihoods.
Net zero farm pilot, South Africa
“After just one year, the results of our pilot studies have
been very positive. Our lead test farm in South Africa
reduced its cow herd by 100 animals, yet increased its total
milk yield by 12% since the start of the trial. It has reduced
emissions from electricity by 24% thanks to energy-saving
measures and seen a 53% increase in active carbon in the
soil, sequestering 4 700 additional tonnes of CO2. Significant
carbon sequestration potential remains. Chemical fertilizer
(mainly nitrogen) usage was lowered by 70%, being replaced
with a balanced introduction of additional organic fertilizers
from chicken manure. Pasture yields remain consistent.
“There were admittedly some challenges. Low rainfall meant
that in some fields, pastures needed to be re-established,
exposing the top soil and affecting the potential to improve
its health. There were also some practical problems
associated with the smell of the organic fertilizer and
administrative challenges in selling electricity to the grid.
On balance, we are satisfied and the pilot farm interventions
are being replicated by other dairy farmers who have been
frequently visiting the pilot farm themselves.
“This is an approach that genuinely has the potential
to contribute to a meaningful impact on climate change,
not just for Nestlé but for the whole industry.
NESTLÉ EXPERT
Net zero
dairy
Transforming our
dairy supply chains
Robert Erhard, Global Head of
Dairy, Corporate Sustainable
Agriculture Development
Arguably, the most important thing we have been
working on in dairy during 2021 has been the development
of net zero dairy farms. Our dairy supply chain is present
in 27 countries and we also work with our supply chains
through cooperatives around the world. In 2018, most of
our GHG emissions were Scope 3 and came from sourcing
ingredients. Dairy is the single biggest source of these
emissions, so tackling them can have a major impact on
our efforts to reach net zero.
“We leverage our R&D expertise that ranges from
agricultural sciences, nutrition, food safety, analytics
through to product development to discover novel solutions
that help us to further reduce carbon emissions in dairy.
We are establishing research farms to test new solutions
that will be upscaled across over 30 reference farms around
the globe. On these everyday farms we test climatefriendly
and regenerative agriculture farming practices
with academic partners and the farming community in the
respective geographic locations. Our aim is to transparently
transform these farms into net zero farms as a reference
for others to learn from.
“Regional adaptation is important. The dairy footprint is
an accumulation of emissions coming from different steps
in the production system, each of which have a variety of
practices. Equally, solutions need to take account of the
Product portfolio and packaging
We are investing in science and technology solutions that
help reduce our carbon emissions. We look at different
areas, such as ingredients, production processes,
packaging and others. We assess R&D projects early
in their lifespans for potential impact on climate.
Brands such as Garden Gourmet, our plant-based food
range, and the Nestlé Health Science brands Persona and
Garden of Life are leading the way in building agricultural
supply chains based on regenerative practices.
Advocacy
Throughout 2021, we engaged in climate-related advocacy
to encourage rapid and sustained reductions in GHG
emissions through government policies and private sector
leadership. Examples include:
	– Joining global calls to action in partnership with
organizations including the World Economic Forum,
We Mean Business and Glasgow is our Business
	– Speaking at multiple events at COP26 to support
global progress on emissions reductions
	– Market-level advocacy such as linking our net zero
ambition with Nationally Determined Contributions
in the Philippines and joining calls to action for
specific countries, including Japan, to speed up
emissions reductions
	– Advocating for global carbon accounting rules that
incentivize companies in the land-use sector to invest
and collaborate at landscape level, through active
involvement in multi-stakeholder platforms and the
organization of two webinars on the topic
95% of our GHG emissions
come from activities in our
supply chain.
We also joined the Taskforce on
Nature-related Financial Disclosures
working group in 2021 to advance
the collective understanding of how
to report on risks and dependencies
related to the natural environment.
This complements our membership
of the Corporate Engagement
Program run by the Science Based
Targets Network.
Outlook
We will continue reducing our
GHG emissions across all scopes.
This includes further developing
and implementing our approach to
Regenerative Agriculture and our
Forest Positive strategy.
We will work with governments and
international organizations to help
implement promises made at the UN
climate change conference COP26,
particularly around reducing the risk
of deforestation and building a robust
and reliable carbon market. One of
our main advocacy objectives for
2022 is to help place regenerative
food systems at the heart of national
climate plans and to encourage policy
makers to make it a central focus
for COP27 in Egypt.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 23
CASE STUDY
The Cool Farm Tool:
Helping farmers
understand their
environmental footprint
Agriculture contributes significantly to global GHG
emissions. To help farmers deal with the new world
of climate-conscious agriculture, Nestlé’s internal experts
and external partners are using the Cool Farm Tool
to assess the footprint of our ingredients.
This online GHG, water and biodiversity calculator,
developed by the Cool Farm Alliance in which Nestlé
participates, helps farmers assess their environmental
footprint. Farmers can get a better understanding of the
situation on their farm, revealing emissions hotspots and
potential mitigation approaches. It is a useful tool for
working toward a healthier planet.
CASE STUDY
Farmers are proving
it is possible
The Net Zero Initiative is a program in the United States
co-funded by Nestlé. Here are some of the experiences
of farmers involved with the program:
Jon Rebiero, Manager, Trinkler Dairy Farm,
California, United States
“Our family has been dairy farming for three generations
and we have been supplying fresh milk to Carnation every
day since 2014 to make their evaporated milk.
“Trinkler Dairy Farm is the first partner farm within the
Net Zero Initiative. We are piloting new technologies and
sustainable farming practices to show others that it is really
possible to make dairy farms emissions free.
“Today on the farm, we use various sustainable practices:
all of our manure that is produced by the cows is either
used to fertilize crops or it is dried and used for bedding.
All the water that our farm produces is either used to
irrigate our crops or recycled back through the water
troughs and soakers. Nothing leaves the farm as waste.”
“All the practices we have introduced are
contributing to soil that is healthy, that is pulling
carbon out of the air and banking it. Not only
that, but the healthier soil then grows healthier
crops, which in turn, bank even more carbon
from the atmosphere.”
Austin Allred, Royal Dairy Farmer, Washington, United States
Helping to protect, renew and restore natural resources | Climate and nature
NESTLÉ EXPERT
The time is now
Patricia Stroup, Chief Procurement
Officer, Nestlé
I grew up on a dairy farm, and later spent 10 years as a
dairy farmer, co-owner and manager of dairy farms in North
Carolina and Pennsylvania. You could say that is where my
career was born.
“My team at Nestlé and I believe that the best procurement
practices let us bring the best products to our consumers.
We have a three-pillar strategy: best supply, best value and
best care for the planet. The latter is where net zero farms
are key.
“We have already begun informing our suppliers about our
net zero transition. We are encouraging them to embrace
lower-carbon, more sustainable farming practices, or we
will have to consider switching our sourcing to farms that
do. We recognize this transition will be a challenge for
farmers and are offering significant support, including
financial and technical help. We realize each farm is unique.
They will move at different speeds and need different
approaches and levels of support. But the direction of
travel is clear. We have seen what is possible – sectors
such as dairy can transform into low-carbon, zerocarbon
or perhaps even carbon-negative industries with
higher productivity and multiple additional benefits to
communities and nature. Now that we know this, there
can be no turning back.
“It is an incredibly exciting time!
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 24
Forests absorb approximately 2.6 billion tonnes of carbon
dioxide every year. This is the equivalent to one-third of the
CO2
released from burning fossil fuels. As home to 80%
of land-based species, forests are also just as critical to
the preservation of nature’s biodiversity, according to the
UN. They provide nutrition, shelter, energy, medicine and
livelihoods to around 1.6 billion people.
But as the global population grows, and demand for
food along with it, forests and other natural ecosystems
are increasingly at risk of being converted into farmland.
Only through a broad approach that includes assessing
deforestation risks, forest conservation and restoration,
respecting community and land rights and investing in
sustainable production landscapes can we aim to support
a forest positive future.
Approach
Launched in June 2021, our Forest Positive strategy
builds on our decade-long work to end deforestation
in our supply chains.
Forest Positive means moving beyond just managing
deforestation risks in our supply chain to targeting a
positive impact on our broader sourcing landscapes.
Our strategy aims to help conserve and restore the
world’s forests and natural ecosystems while promoting
sustainable livelihoods and respecting human rights,
including empowering Indigenous Peoples and Local
Communities to be stewards of critical natural ecosystems.
Understanding the drivers of deforestation and creating
the right incentives for forest conservation and the
preservation of natural ecosystems are key to our
approach. This is why we will go beyond our supply chain.
Our actions will include rewarding suppliers for practices
that keep trees standing, regenerate the land and
respect human rights.
I. Deforestation-free
supply chains
We will achieve and maintain 100% deforestationfree
supply chains using tools such as supply chain
mapping, on-the-ground assessments, certification
and satellite monitoring.
By 2022 for meat, palm oil, pulp and paper,
soya and sugar primary supply chains
By 2025 for coffee and cocoa
II. Long-term forest
conservation and restoration
in our supply chains
We will ensure proactive action to help keep forests
standing and restore degraded forests and natural
ecosystems while respecting the rights of Indigenous
Peoples and Local Communities.
Nestlé will grow 200 million trees by 2030
III. Sustainable landscapes
We will embark on Forest Positive engagement at
scale to help transform the key landscapes we source
from for the future.
Nestlé will support 15 sustainable landscape
initiatives by 2023
FOCUS SECTION
Forest
Positive
Helping to protect, renew and restore natural resources | Climate and nature
Global Reforestation Program
Our Global Reforestation Program (GRP)
aims to grow 200 million trees by 2030
in our sourcing landscapes. This is a
key part of our Forest Positive strategy.
By helping to conserve and restore
natural ecosystems in our production
regions and improve agricultural
production, we aim to create a positive
impact on people, nature and climate.
Our projects will include growing trees
to restore natural forest landscapes,
introducing agroforestry systems for
suitable crops such as cocoa and
coffee, and supporting other natural
ecosystem restoration activities. The
projects will also have co-benefits,
including helping to improve soil health
and water conservation, restoring
degraded lands, contributing to
biodiversity, mitigating climate change
and supporting local livelihoods and
the rights of Indigenous People and
Local Communities.
So that planted trees can survive
and thrive, we follow a project
cycle for every intervention, which
includes country- and projectlevel
assessments and stakeholder
engagement to ensure proper
selection of the projects and
the places where we implement
them, as well as long-term
monitoring of impact.
For each project, verification or
certification processes ensure
that a robust set of carbon
best practice principles are
implemented and respected.
Phase 4
Implementation
and monitoring
Phase 2
Pre-feasibility
study
Phase 3
Project activation
Phase 1
Investigation
Phase 1: Steps of
initial investigation
	– Map Nestlé’s sourcing locations
	– Conduct investigation and scoping
	– Identify project opportunities
in a country or region meeting
project criteria
	– Conduct due-diligence screening
for carbon-claims challenges and
opportunities due to local context
Phase 3: Process to
activate a project
	– Develop project design document
and monitoring plan, to include:
	– Detailed project plan
	– Timelines
	– Costs
	– Carbon calculations
	– Sign contract and scope of work
	– Allocate funding
	– Activate partners and
local partnerships
Phase 2: Elements assessed
in pre-feasibility study
	– Insetting eligible* locations
	– Scale of reforestation potential
	– Carbon sequestration potential
	– Indicative project costs
	– Risks
	– Environmental and social
co-benefit opportunities
	– Applicable carbon
accounting methodologies
Phase 4: Actions to
implement and monitor
	– Grow seedlings in nurseries
	– Plant trees
	– Conduct short- and long-term
monitoring of trees planted,
carbon sequestered and other
co-benefit outcomes
Global Reforestation Program phasesThe conservation and restoration of forests and other key
natural ecosystems forms part of our Net Zero Roadmap.
Sustainable livelihoods and respecting human rights are
part of our Human Rights Framework and Roadmap.
Our Forest Positive strategy
* The Nestlé Insetting Framework allows us to
identify which Natural Climate Solutions projects
to invest in and implement in collaboration with
our partners and suppliers along our value chain.
Our Global Reforestation Program aims to plant 200 million trees by 2030 in our sourcing landscapes to create a positive
long-term impact on people, nature and the climate. Projects will help restore natural forest landscapes, introduce
agroforestry systems for suitable crops and support other natural ecosystem restoration activities.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 25
Helping to protect, renew and restore natural resources | Climate and nature
Our progress toward deforestation-free primary supply chains
Background
In 2010, Nestlé committed to
deforestation-free primary supply
chains. Our Responsible Sourcing
Standard is the tool that we use to
operationalize our commitment.
Objectives
Our objective is to ensure that
the raw materials that we buy do
not originate from:
	– Areas converted from High Carbon
Stock forests and habitat such as
peatland, wetlands and savannas
	– Areas converted from
natural ecosystems
	– Peatlands of any depth, except where
farming practices protect peat
	– International Union for
Conservation of Nature-protected
areas categories I-IV
	– UNESCO World Heritage Sites
and wetlands on the Ramsar List
Cut-off dates
	– Meat, palm oil, pulp and paper, sugar:
December 31, 2015
	– Soya: Aligned to sectoral cut-off dates
where they exist (e.g. Amazon Soy
Moratorium). When no sectoral cutoff
date exists, we apply December 31,
2015 as a cut-off date
Our approach
To implement our no-deforestation
commitment, we take a risk-based
approach. We map our supply chains to
know where the raw materials that we
buy come from. In at-risk origins, we
take steps to verify that our purchases
are not contributing to deforestation
or conversion of natural habitats.
Based on this approach, the
following volumes are assessed as
deforestation-free:
Traceable to low-risk origin = Volumes
have been traced back to regions
classified as at low risk of deforestation
using tools such as Maplecroft. The
traceability exercise is carried out in
collaboration with our partners (e.g.
Earthworm Foundation and Proforest) or
using technology (e.g. SupplyShift).
Assessed on the ground = Volumes
have been assessed through on-theground
assessments, including by
High Carbon Stock Approach and High
Conservation Value assessments, by our
partners (e.g. Earthworm Foundation,
Proforest, SGS) and/or through
certification such as Roundtable on
Responsible Soy and Proterra (soya),
Forestry and Stewardship Council
and PEFC (paper) and Roundtable
on Sustainable Palm Oil. Only
segregated volumes are accepted
as deforestation-free.
Assessed from the sky = Volumes
have been assessed through satellite
monitoring of production sites (farms,
mills or supply area) in our supply chain
identified through a traceability exercise.
Unknown = Not traced or being traced
but not yet deforestation-free.
90% assessed as deforestation-free
423 kilotonnes
98% assessed as deforestation-free
521 kilotonnes
98% assessed as deforestation-free
1 238 kilotonnes
99% assessed as deforestation-free
243 kilotonnes
97% assessed as deforestation-free
4.3 million tonnes
9%
2%
2%
1%
1%
80%
94%
99%
83%
6%
18%
4%
3%
Unknown
55%
Traceable to
low-risk
origins
25%
Assessed
from the
sky
16%
Assessed
on the
ground
Deforestation-free
by 2022
commitment status
EY reviewed
for consistency
Palm
oil
Pulp and
paper
Soya Meat
98% assessed as deforestation-free
1 864 kilotonnes
3% 30%
29%
38%
Sugar
Performance
To date, 97.2% of our primary supply
chains have been assessed as being
deforestation-free across our five
key raw materials: meat, palm oil,
pulp and paper, soya and sugar. We
are expanding the use of satellite
technology to monitor our coffeeand
cocoa-sourcing landscapes
for deforestation risks, starting
with the Americas.
We continued our work on landscape
initiatives, including in the critical
conservation and restoration of
the Cavally Forest Reserve in Côte
d’Ivoire, and have made other
important investments as part of our
action plan to support the Cocoa
and Forests Initiative to help end
deforestation and restore forests
in Côte d’Ivoire and Ghana. We
also completed forest footprints in
Sumatra and the North and East
Kalimantan provinces of Indonesia.
In 2021, we formed an external
advisory council of independent
experts to advise on the
implementation of our Forest
Positive strategy. 
Global Reforestation Program
For our initial projects, we have partnered with global
tree-planting experts such as One Tree Planted and PUR
Projet, as well as carbon accounting initiatives Biodiverse
Carbon and South Pole.
Together, we have set the foundations for a long-term,
credible and robust program. One example is a project
recently launched in the Philippines, where we have secured
2.5 million bamboo clumps and one million native trees in one
of our coffee-sourcing regions. Bamboo thrives in degraded
lands and sequesters carbon quickly. It also provides
livelihood opportunities by harvesting the top of the plant
to make paper, wood or textile products. 
In 2021, we also started a reforestation project in Nicaragua,
where we have secured 8.6 million trees for planting. We
also secured 7.5 million trees for planting in Colombia and
five million trees in Honduras. To date, our projects have
secured a total of 24.6 million trees for planting in regions
we source from, contributing toward our overall reforestation
goal with 9.3 million tonnes of CO2
e removals initiated over
project lifetimes.
24.6
Million trees secured
for planting in 2021
9.3
Million tonnes CO2e secured
through tree-planting
projects initiated
EY reviewed
for consistency
EY reviewed
for consistency
EY reviewed
for consistency
EY reviewed
for consistency
EY reviewed
for consistency
EY reviewed
for consistency
EY reviewed
for consistency
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 26
Helping to protect, renew and restore natural resources | Climate and nature
Securing community land rights represents a
critical and cost-effective solution to conserving forests,
sequestering carbon and contributing to the prosperity
of billions of rural rights-holders by 2030. By prioritizing
community rights, companies like Nestlé can advance
their vision of a forest positive future as well as global
conservation and climate goals.
“Making up a global population of 2.5 billion, Indigenous
Peoples, local communities and Afro-descendant Peoples
customarily claim almost half of the world’s lands and
forests yet have legal rights to less than 20%.
“Customary and formal claims frequently overlap with
companies’ sourcing areas, restricting positive forest and
livelihood outcomes in supply chains. Furthermore, few
countries explicitly recognize communities’ rights to carbon
in customary lands.
“While companies struggle to monitor these local and
persistent impacts, emerging legislation in the European
Union and United Kingdom targeting human rights and
deforestation violations will challenge the agricultural sector
to address lands rights issues.
“At the same time, recognition of the rights of local peoples
represents a powerful solution to achieving forest positive
strategies. Forests owned or managed by communities
have lower rates of deforestation and higher levels of
biodiversity, yet investment in securing collective land
tenure languishes relative to other priorities.
“By leveraging supply chains and influence, as well as
by financially supporting land rights efforts, companies
like Nestlé can make even more progress toward a forest
positive future.
EXTERNAL EXPERT
Securing
land rights
How supporting
Indigenous Peoples
can help achieve
climate and nature goals
Andy White, Former
Rights and Resources
Group, Coordinator
and
Bryson Ogden, Rights
and Resources Group,
Associate Director,
“Forests owned or managed by
communities have lower rates
of deforestation and higher
levels of biodiversity.”
Outlook
Over the last 10 years we have gained a better
understanding of the dynamics and drivers of
deforestation, as well as effective tools to assess
risks and address them. This knowledge will
help bridge the small remaining gap between
97.2% and 100% deforestation-free primary
supply chains for meat, palm oil, pulp and paper,
soya and sugar by 2022, as well as for coffee
and cocoa by 2025.
We have committed to carrying out a global
forest footprint for key forest-risk areas in
and around our supply chains by the end of
2023. Learnings from our forest footprints in
Sumatra and North and East Kalimantan in
Indonesia are already informing our Forest
Positive strategy. This will help us identify areas
of future risk and opportunities for forests,
peatlands and customary land rights in and
around our supply chains and take proactive
action. In 2022, we will develop and publish an
action plan on Indigenous Peoples and Local
Communities’ land rights.
We are evaluating and validating restoration
opportunities in our sourcing landscapes and
considering other metrics beyond carbon
removal, such as for biodiversity, water quality,
livelihoods and Indigenous Peoples and Local
Communities’ land rights. We require long-term
monitoring for our Global Reforestation projects
as it takes time for trees to grow and sequester
carbon, and because we need to ensure the
permanence of the impacts.
We continue to be involved in the Consumer
Goods Forum Forest Positive Coalition,
the Cocoa and Forest Initiative, the Cocoa
Coalition and the Tropical Forest Alliance as we
advocate for greater transparency and more
collective action from companies, governments
and civil society.
Our global forest footprints help us to identify areas
of future risk and opportunities for forests, peatlands
and customary land rights near our supply chains.
NESTLÉ EXPERT
Connecting carbon,
communities and
landscapes
Emily Kunen, Global Climate
Delivery Leader, Forests and
Global Sustainable Sourcing
Leader, Palm Oil
Our reforestation efforts are focused in and around
our supply chains. These are projects connected to our
business activities and build upon a decade’s work to
map and create more responsible supply chains. We
have developed an insetting framework that helps us
focus our actions.
Read more about our partners and projects
We aim to grow 200 million trees by 2030 to restore natural forests.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 27
We joined the Taskforce on Nature-related Financial
Disclosures working group in 2021, to advance collective
understanding of how to report on risks and dependencies
related to the natural environment.
Working closely with a team from the International Union
for Conservation of Nature (IUCN), Nespresso developed
a Biodiversity Performance framework to identify species,
habitats and related ecosystems services that are priorities
for company actions across coffee landscapes. It also
covers high-priority impacts, such as the loss of forest
habitats and waterways.
Global aggregation of data related to regenerative and
organic agriculture (measuring native soil invertebrates
and native insect populations), and conserving natural
landscapes (benefiting people and habitats) will provide a
comprehensive picture of impacts on biodiversity.
Approach
Regenerative agriculture is an approach to farming that
aims to improve soil health and soil fertility, as well as
protecting water resources and biodiversity. Restoring soil
health helps draw down and capture increased levels of
carbon in soils and plant biomass. Healthier soils are also
more resilient to the impacts of climate change and can
increase yields, helping improve farmers’ livelihoods.
We know that regenerative agriculture plays a critical role in
improving soil health, restoring water cycles and increasing
biodiversity for the long term. These outcomes form the
foundation of sustainable food production and contribute to
achieving our ambitious climate targets. This is why Nestlé
is investing CHF 1.2 billion by 2025 to spark regenerative
agriculture across the company’s supply chain.
Our approach will always seek to put farmers at the center
– supporting solutions that are right for their regions and
crops. This is why we have 540 sourcing specialists and
more than 4500 support staff that are assisting with the
transition toward regenerative agriculture.
Our strategy begins with pilot studies at farms to validate
new technologies and nature-based solutions. As pilots
prove successful we are expanding into reference farms
of agripreneurs, or entrepreneurial farmers, in different
countries and regions across the world, as soils and climate
requirements will differ. From reference farms we try to
scale the approach to the larger agripreneur community,
helping to further advance and improve their business
models. We plan to roll this out at scale through our Farmer
Connect program, with this transformation benefiting the
larger community.
We are also encouraging industry alignment on common
frameworks and metrics for regenerative agriculture.
Performance
We are piloting net zero dairy farms to assess the potential
for farms to be managed in a regenerative way that is not
only carbon neutral, but carbon negative.
Our efforts to advocate for regenerative agriculture
continued in 2021, including organizing an independent
dialogue on the subject as part of the UN Food Systems
Summit and at the United Nations climate forum COP26
and organizing other policy discussions, such as on
the formation of the European Commission’s Farm
to Fork strategy. We contributed to industry efforts
at aligning frameworks and actions on regenerative
agriculture through forums such as the Sustainable
Agriculture Initiative Platform and by supporting the
launch of REGEN 10, an acceleration platform for scaling
regenerative and resilient food systems to 50% of world
production in a decade.
Regenerative agriculture at Nestlé
Biodiversity
Increase plant and animal biodiversity
above and below the ground
Soil
Scale-up farming practices that help protect
soil health and increase soil organic matter
Water
Reduce chemical farm inputs, optimize
organic fertilization, biological pest control
and irrigation techniques
Livestock
Integrate livestock and optimize grazing
in farming systems where feasible
FOCUS SECTION
Regenerative
agriculture
Helping to protect, renew and restore natural resources | Climate and nature
Nespresso has developed
a Biodiversity Performance
framework with the IUCN.
Farmer
Outlook
By 2025, Nestlé will invest CHF 1.2 billion to spark
regenerative agriculture across our supply chains.
We will fund pilot projects and co-invest with farmers
to help them transition to regenerative agriculture,
as well as pay premiums for regenerative agriculture
goods. These actions are important for boosting the
market for regenerative raw materials and enhancing
farmer livelihoods.
On biodiversity, Nestlé will continue following and
contributing to the development of a robust framework
for making science-based targets on nature. An internal
working group will assess the comprehensiveness
of existing commitments on climate and nature
and determine potential further steps in this area.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 28
CASE STUDY
Educating suppliers
on our vision of
climate change and
regenerative agriculture
We spent a good deal of time in 2021 helping our core
suppliers become more aware of the threat of climate
change and adopt more regenerative agricultural practices.
The process for suppliers is not easy. They have to ensure
that their supply chains and farmers are making changes.
The first step toward this is fully understanding the changes
that are required. We published a major FAQ document
and held webinars to answer questions, with hundreds
of vendors participating.
We also support projects to help suppliers learn more
sustainable practices. For example, the Earthworm
Foundation’s Living Soils Initiative (Projet Sols Vivant) works
with some 30 farmers producing potatoes, sugar beet,
wheat and vegetables in the north of France, providing
technical support and financial tools to help the farmers
improve soil health and, in doing so, hold more carbon in
the soil. Retaining carbon not only prevents carbon dioxide
from being released into the atmosphere, where it can
contribute to climate change, but also enhances water
retention and helps release nutrients for plant growth,
increasing crop yields.
In the United States, our Purina PetCare brand started
a project to support environmental stewardship on
50 000 acres of farmland. We work with farmers and
agriculture retailers to help them adopt sustainable
practices. The project measures the outcomes of their
sustainability efforts, quantifying the impact of conservation
practices across areas such as nitrogen efficiency,
erosion, soil quality, greenhouse gas emissions and
carbon sequestration.
Overall, we plan to invest CHF 3.2 billion by 2025 to
address climate change, and CHF 1.2 billion of that
is targeted at sparking more regenerative agriculture
practices across our supply chain. With 115 projects cofinanced
by Nestlé and vendors, we expect that by 2030,
half of our key agricultural raw materials will come from
regenerative sources.
“We’ve spent a lot of time
building internal expertise on
climate – training our buyers
and category team members
and creating awareness – so
we can go out and engage with
our vendors on these topics.
Now the focus is on educating
and training suppliers and
ramping up initiatives. It’s all
part of our determination to
get regenerative agriculture
moving in the right direction.”
Arnd Weinlaeder, Purchasing
Group Manager, Nestlé
CASE STUDY
Learning from the birds
to restore biodiversity
Birds are a good indicator of healthy coffee farms. If birds
are doing well, the populations of other animals are likely
doing well too, with benefits to water, soil and forests. This
is why Nespresso has been collaborating with the Cornell
Lab of Ornithology at Cornell University in Ithaca, New
York, United States to develop a Biodiversity Progress Index
using avian observation.
The first implementation of the Index has been in Costa
Rica and Colombia, where a program called Nuestro Café,
Nuestras Aves (Our Coffee, Our Birds) was rolled out.
The program deployed more than 80 sound-recording
units to collect and analyze audio recordings of birdsong,
and engaged with farmers and family members on birdcounting
projects and other activities. So far, communities
have found more than 200 species of birds on participating
AAA coffee farms, bringing home the idea that thriving bird
populations go hand in hand with healthy coffee farms.
Based on the results of the index, regenerative practices
will be implemented to foster and restore biodiversity in
AAA coffee production landscapes.
But this is just the tip of the iceberg. Nespresso has
profoundly embraced the idea of supporting biodiversity
and has recently finished an 18-month long consultation
process with the IUCN. The outcome is a framework
that will help Nespresso monitor biodiversity performance
at a total company level.
Learn more about biodiversity at Nespresso
“One thing I’ve come to appreciate is the
relationship between high-quality coffees,
healthy ecosystems and thriving communities.
Biodiversity supports the ecological services
that farmers, their coffee crops, the communities
and ultimately all of us depend on.”
Guillaume le Cunff, CEO, Nespresso
Helping to protect, renew and restore natural resources | Climate and nature
Long-tailed Manakin
by Guillermo Saborio
Vega / Macaulay Library.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 29
Water
Nestlé Waters will
advance the regeneration
of the water cycle to help
create a positive water
impact everywhere
our waters business
operates by 2025
Across Nestlé, we will
continue to work to
achieve good water
resource management
throughout our
operations and
agricultural supply chains
Water use reduction in factories
(million m3
)
1.69
2.30
2020 2021
19
Nestlé Waters sites certified
to the AWS Standard
(41 in 2020. Reduction is due
to divestment of our North
American waters business)
Our performance
SDG contributions
Helping to protect, renew and restore natural resources
Protecting the quality
of natural waters
and stewarding
water resources is
deeply connected to
regeneration. We rely
on water throughout
our agricultural supply
chains and operations
and recognize our role in
helping to ensure access
to sufficient clean water.
Background
Water is a finite natural resource. We recognize the
need to play our part in helping to protect, restore and
renew water sources: in Nestlé Waters, our bottled-water
business; throughout our agricultural supply chain and
production operations; and in the communities wherever
Nestlé has an impact.
As the climate changes and populations grow, the
availability of clean, safe water is under threat. Water stress,
where demand exceeds the amount of good quality water
available, is a growing problem. By 2050, it is estimated
that more than half the world’s population will be affected
by water stress unless action is taken. Often, it is the most
vulnerable communities – those lacking infrastructure and
most exposed to increasing annual temperatures – that
face the most challenging water-related impacts.
Water is a vital resource for farmers – without it they cannot
grow the raw materials we source to produce our foods
and beverages. In fact, agriculture accounts for 70% of all
water withdrawals worldwide and agricultural inputs such
as fertilizers can also affect the quality of water sources.
In some regions, increased water consumption to grow and
produce food for an expanding and increasingly urbanized
population is contributing to increased pressure on the
natural water cycle.
The water cycle does not operate in isolation. Forests help
regulate precipitation – for example, about half of Europe’s
rainfall comes from forest evapotranspiration. Disruptions
to the water cycle can impact livelihoods, through drought
or flooding. It is estimated that up to one million species
rely on freshwater habitats. Millions more, including
humans, rely on these species as a food source.
Taking a local approach to water management supports
farmers and communities where it is needed most and has
the potential to positively effect natural water cycles.
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
Our Reporting Scope and Methodology
for ESG KPIs document provides details
and definitions and can be found at
www.nestle.com/esg-kpis
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 30
We monitor water
efficiency and the
quality of the water
we discharge.
Nestlé factories
Nestlé Waters
pledge: We will
advance the
regeneration of
the water cycle
to help create a
positive water
impact everywhere
our water business
operates by 2025.
Nestlé factories
serving our
Nestlé Waters
business
We promote and
implement better
water management
practices in waterstressed
areas. This
is to help protect
watersheds and
ensure regeneration
of the water cycle.
Agricultural
supply chain
We believe
businesses have
a role to play in
helping to ensure
that more people
have access to
safe water.
Water in
communities
We work together
with local
stakeholders to
address watershed
challenges.
Water
partnerships
and advocacy
Nestlé factories
Over many years, we have implemented programs
to continuously improve water efficiency at our factories
and have worked at reducing water withdrawals, even
as production volumes increase.
We monitor water withdrawals at 100% of our factories
using flow meters and monitor water quality using sensors
and probes, including water discharged to third parties or
back into surface water bodies. We promote the recycling
and re-use of water where possible.
Our Nestlé Waters business
Our bottled-water business, including brands such as
Perrier, S.Pellegrino, Vittel and Buxton, aims to advance
the regeneration of the water cycle to help create a positive
water impact everywhere it operates by 2025.
Our plan is to implement more than 100 projects around
our 48 global waters sites, supported by a CHF 120 million
investment. From 2025 onwards, our aim is for these
projects to help nature retain more water than our
bottled- water business uses.
All projects are measurable, using the World Resources
Institute’s Volumetric Water Benefit Accounting
methodology. This methodology provides consistency
in analyzing water management activities and helps
focus our activities on addressing current and future
shared water challenges. Using this methodology,
a newly created external panel will review the relevance
and sustainability of the projects and give feedback
on whether they are helping to address local challenges
and opportunities. Nestlé Waters will strive toward
continued reporting of water usage at each of its sites
and on what its projects contribute to the area.
Water stewardship is key to our business, so we have
commited to certifying all our Nestlé Waters sites to the
Alliance for Water Stewardship (AWS) Standard by 2025.
Now our pledge goes beyond our operations to help with
shared water challenges.
Foundations of the Nestlé Waters pledge
Building water
stewardship
foundations
Water
neutrality
locally
Share our
knowledge
Help
to protect
source and
catchment
Contribute to
communities
Save water
Certify as
per AWS
Standard
Positive
water impact
20302029202820272026202520242023
Volumetric water benefit (VWB) 
Withdrawals  Balance
Mm3
/Year
20222021
Regeneration
Nestlé Waters will advance
the regegeration of
the water cycle to help create a
positive water impact everywhere
our water business operates by 2025.Water stewardship across Nestlé
We aim to take a holistic approach to water stewardship that considers our operations, our bottled-water business,
our agricultural supply chains and the communities affected throughout.
Approach
The impacts of water stress are already being felt locally
by communities, including by farmers and consumers.
As such, our approach to water stewardship must be local,
or context-based, too.
Nestlé uses various sets of publicly available data from
four independent sources to evaluate the water stress
at our factory locations. Each Nestlé site receives a score,
allowing us to identify a list of Where It Matters locations
to prioritize actions.
Our context-based approach involves a three-step
roadmap from local to wider catchment level: compliance
as a minimum, then best practice in water resources
management, and collective action.
Nestlé performs regular assessments of local water
resources and water use inside and outside its factories,
including possible future risks. We engage with
stakeholders and monitor external research findings.
Our approach to water management is overseen by the
Nestlé ESG and Sustainability Council, supported by the
ESG Strategy and Deployment Unit. We are currently
defining how best to support the management of water
resources through the transition to regenerative agriculture
and in delivering on our broader Forest Positive strategy
and net zero commitments.
Helping to protect, renew and restore natural resources | Water
We perform regular assessments of local water resorces and promote better
water management practices in water-stressed areas.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 31
Water withdrawals at our factories by product categories
(m3
per tonne of product)
Category 2010 2021
% reduction
since 2010
Milk products 5.5 3.58 35
Confectionery 7.2 3.08 57
Nutrition and healthcare 13.6 8.39 38
PetCare 1.2 1.16 3
Powdered and liquid beverages 13.9 5.93 57
Prepared dishes and cooking aids 5.5 3.13 43
Bottled water 1.7 1.52 11
Total water consumption
(Millions m3
/y)
56.20
39.03
2020 2021
Percentage of water withdrawn in
regions with ‘high’ or ‘extremely
high’ baseline water stress
25.00
35.40
2020 2021
Percentage of water consumed in
regions with ‘high’ or ‘extremely
high’ baseline water stress
30.00
49.10
2020 2021
Total water withdrawal from
all areas (Millions m3
/y)
115.40
98.00
2020 2021
Agricultural supply chain
Supporting watersheds and the regeneration of the water
cycle, particularly in water-stressed areas, is a priority
action that forms part of our approach to regenerative
agriculture. This contributes toward conserving and
restoring farmland and the associated ecosystems.
Essential to this is optimizing organic fertilization, soil
conservation, structure and organic matter content,
and improving irrigation technology.
Building on our extended 2020 commitment, we continue
to engage with suppliers, especially those in agriculture,
on water resource management. We use the Nestlé
Responsible Sourcing Standard to specify to the more than
150 000 direct suppliers and more than 500 000 farmers
we work with what we expect in terms of water use and
water management practices. It sets out basic, mandatory
standards as well as important and urgent sustainability
practices, including water resources management.
Traceability is key in identifying areas of water risk in our
supply chains. Using commodity-based assessments and
the Water Footprint Network methodology, we assess
the water footprint of key agricultural commodities and
highlight opportunities for actions aimed at better water
management practices.
Water in communities
We recognize that access to safe drinking water and
sanitation is a basic human right, and that safe water,
sanitation and hygiene (WASH) contribute to health,
well-being, personal dignity and community resilience.
Ensuring access to safe drinking water and sanitation for
Nestlé employees is our priority as a business. Supporting
access to water for the communities surrounding our direct
operations and in our agricultural supply chains helps
strengthen our business and society.
Nestlé supports WASH projects in schools and villages near
its operations and in its supply chains around the world.
Water partnerships and advocacy
Water is a shared resource, so caring for it must be through
collaborative actions.
In 2008, a group of business leaders – from the World
Economic Forum’s Global Agenda Council on Water
Security and its International Finance Corporation –
came together to establish the 2030 Water Resources
Group (2030 WRG). Nestlé has been a member of this
consortium from the start and a dedicated supporter
ever since. The 2030 WRG has a simple purpose: to
build strong partnerships in pursuit of more sustainable
water management.
Since 2008, we have been part of the CEO Water Mandate,
a UN Global Compact initiative that unites business leaders
on water, sanitation and Sustainable Development Goals.
Our involvement in the CEO Water Mandate also includes
membership of the WASH4Work initiative, which asks
businesses to take action to address WASH challenges
in the workplace, in communities where the business
operates and in supply chains. As of 2021, the World
Business Council for Sustainable Development’s WASH
Pledge, of which we are also a signatory, has also become
part of the WASH4work initiative.
Performance
We continuously strive to improve water savings at Nestlé
factories. In 2021, we delivered absolute savings of 2.3
million m3 of water through more than 150 projects. Total
water withdrawals at Nestlé factories were 98 million m3
(2020: 115 million m3). This reduction is in part due to the
divesture of a significant part of our bottled-water business
in North America during 2021.
Direct water withdrawals per tonne of total product show
that Bottled water and PetCare are the most water-efficient
categories while our Confectionery, Powdered and liquid
beverages and Prepared dishes and cooking aids categories
show the greatest improvements compared to 2010
(see table).
We monitor water quality,
including water discharged to
third parties or back into surface
water bodies.
Helping to protect, renew and restore natural resources | Water
EY reviewed
for consistency
EY
reviewed for
consistency
EY
reviewed for
consistency
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 32
Outlook
In 2022, we will launch a new strategic approach to water
in agriculture that will support our net zero commitment
and specifically our goal to source 50% of key ingredients
through regenerative agricultural methods by 2030.
The approach is based on two key areas. The first is to
build on the foundations that have already been put in
place. Our agronomists will continue to train farmers
throughout our supply chains on good water management
practices. Where we have identified watershed preservation
actions that we can take together with farmers and local
stakeholders, these will be actioned. These are largely
targeted at watersheds where our supply chain is exposed
to higher water risks and will include both reducing
farmer dependency on water and ensuring the sustainable
availability of water.
The second area is about innovatively regenerating local
water cycles in direct proportion to our local agricultural
water footprint. We will put programs in place to help
ensure that water is not used beyond what is naturally
regenerated, in order to achieve a positive water balance
at the watershed level.
We presented our proposed new approach at the
Stockholm World Water Week 2021 Nestlé workshop,
which was attended by leading water experts and
stakeholders. We received positive feedback that the
right approach is to go beyond the farm to address
watershed issues.
In the coming years, we will set up action plans and
monitor our progress and engagement with local key
stakeholders where collective action is needed. Our initial
focus will be on our coffee and dairy supply chains.
Nestlé Waters will also help support the regeneration of
water cycles and will continue to identify and implement
additional projects to address local shared water challenges.
As we move forward, we believe nature-based solutions
will provide volumetric water benefits by maintaining or
improving watershed replenishment. This will be achieved
through reforestation that prevents runoff and through
long-term wetland preservation.
In our operations, in 2021, we successfully carried out
five Water Resource Reviews, up from two in 2020.
Travel restrictions due to the COVID-19 pandemic
again prevented us from meeting our extended 2020
commitment of 40 Water Resource Reviews in total.
We spent 2021 developing future plans following the end
of our 2020 commitments and will begin implementing
these new plans in 2022 and beyond.
In July 2021, we announced our pledge to help create
a positive water impact everywhere our bottledwater
business operates by 2025. While this pledge
is still relatively new, we are already implementing
several projects:
	– Buxton: Land conservation and natural flood
management approaches in Derbyshire, UK
	– Vittel: River restoration in Vosges, France
	– Nestlé Pure Life: Drip irrigation support for farmers
in Sheikhupura, Pakistan
	– Nestlé Pure Life: Water treatment, filtration and pipeline
infrastructure in Benha, Egypt (see adjacent case study)
Across our bottled-water business, at the end of 2021,
we certified 19 sites to the AWS Standard, compared to
41 in 2020. This number reduced due to the sale of Nestlé
Waters North America, but accounts for 40% of remaining
water bottling sites.
CASE STUDY
Local water
stewardship
To play our part in helping protect water supplies in
Egypt’s Delta region, Nestlé Egypt has undertaken
several projects, including rehabilitating a canal that
provides irrigation for agricultural land around the
village of Kafr Arbeen.
We cleaned organic waste from the old canal,
repoured the walls and floors with cement to stop
leakage and improved the velocity of the water so it
reaches as much agricultural land as possible. Now we
are working with the local water authority to renovate
the village’s water station and help provide residents
with access to clean and safe water.
Read more about our support for local
water projects
CASE STUDY
Collaborative action
Working together with partners is a key part of our
strategy. Back in 2013, Nespresso began working
with the International Union for Conservation of Nature
and the Brazilian non-governmental organization IPE
(Instituto de Pesquisas Ecológicas) to launch
the Cerrado Waters Consortium.
The consortium, which now also includes Nescafé,
has helped bring the wider farming community
together in order to address the issue of water
availability and its wider impacts.
Today, 96 hectares of the project area have been
protected and restored, and over 300 hectares are
under climate smart agriculture management.
Read more about our work with the Cerrado
Waters Consortium
Around the world we are training
farmers to implement practices that
help them to save water and contribute
to watershed replenishment.
Helping to protect, renew and restore natural resources | Water
5
Water Resource Reviews
carried out in 2021 (2 in 2020)
Supporting farmers to care for water
In Pakistan and South Africa, where drought and water
stress are of concern, Nestlé is working with dairy farmers
to implement the use of water sensors and develop watersaving
techniques for animal feed production.
In Brazil, Nestlé is supporting farmers to install water
meters and improve manure-management techniques.
Together with Embrapa, the Brazilian Agricultural Research
Corporation, we are working on projects to train farmers
in good farming and manure-management practices.
A major project in Vietnam, which successfully concluded
in 2019 in partnership with the Swiss Agency for
Development and Cooperation, has trained close to
50 000 farmers on best irrigation practices. This project
resulted in 50 million m3
of water saved annually and
generated more than USD 8 million in the local economy
of smallholder coffee growers. Based on these successful
results, Nestlé now has a similar project in Brazil.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 33
SDG contributions
We will make 100% of our
packaging recyclable or
reusable* by 2025
We will reduce our use of
virgin plastics by one third
by 2025
Our performance**
* As per Ellen MacArthur Foundation definitions.
** Data are based on Nestlé-branded products
sold by Nestlé fully owned entities. We are
improving data collection and preparing
*** Sustainability Accounting Standards Board
Process Foods Standard FB-PF-410a.1
Portfolio and scope change statement:
The shifts in percentages designed for recycling
were due to several factors including divestments
and acquisitions of businesses, the shift to paper
packaging and the changing mix of products
sold due to different lifestyles experienced during
COVID-19 and data quality improvements. These
factors impacted both the relative quantities sold,
the design for recycling and recyclability in this
reporting scope.
3.8 million
Total weight of
packaging in tonnes
(4.5 million in 2020)
85.4%
Packaging recyclable
or reuseable***
Packaging
and circularity
Packaging, and the
management of end-oflife
plastic packaging
materials in particular, is
an area of major societal
concern. Through
advanced packaging
R&D, packaging
portfolio transformation
and support for the
development of recycling
infrastructure, we
are working toward a
future where none of
our packaging ends up
in landfill or as litter in
the environment.
Helping to protect, renew and restore natural resources
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
Our Reporting Scope and Methodology
for ESG KPIs document provides details
and definitions and can be found at
www.nestle.com/esg-kpis
Background
Packaging helps protect food and beverages, ensure
product quality and safety, and prevent food waste. It can
also provide important information, such as the origins of
ingredients and nutritional content. Packaging is optimized
to protect food and beverages by using durable materials
such as glass, metals, paper and plastics.
Globally, the amount of packaging that is inappropriately
managed at the end of its life is a serious and persistent
environmental problem. Up to 13 million tonnes of plastic
end up in the ocean every year, endangering marine
animals, birds and fish. Inadequate waste management
can also create hazardous conditions for people.
The infrastructure to collect, sort, reuse and recycle
packaging varies not only by country, but also by
municipality. While packaging recycling schemes have
helped to start a circular economy for recovered materials,
many regions are not yet able to manage packaging,
food and other end-of-life materials in a circular way. In
less-developed countries, municipal authorities often
do not have the resources to implement suitable waste
management strategies.
Reducing waste, increasing recyclability and circularity, and
managing recovered materials effectively are critical for
society, and consumer goods companies play an important
role. We are making the sustainable transformation of our
packaging an urgent priority.
At Nestlé, we use many materials for packaging that all
need to meet stringent food safety requirements and have
environmental impacts that we need
to consider carefully before making
any change. We are making good
progress in meeting our targets to
have all packaging designed for
recycling by 2025, and we will work
with public authorities and other
players in the development of the
necessary infrastructure that will
allow its effective recycling.
Packaging accounts for around 10%
(or 9.5 million tonnes of CO2
e) of our
in-scope carbon footprint. Improving
packaging design, production
processes, recycling rates and endof-life
management can therefore
make a notable impact on our efforts
to reach net zero emissions by 2050.
Packaging is currently essential
to us, but through innovation
we are striving to minimize the
environmental impact it has.
-8.1-4.0 -33.0
Virgin plastic reduction (versus 2018 baseline) (%)
2018 2020 2021 2025
“We are making good progress toward
our target to have all packaging designed
for recycling by 2025. Converting all
our straws from plastic to paper is an
excellent example of this.”
George Galanos, Head of
Packaging Sustainability
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 34
Approach
Our vision is ambitious: a world in which none of Nestlé’s
packaging, including plastics, ends up in landfill or as litter
on land or in seas, oceans and waterways. Our approach to
packaging is overseen by the Nestlé ESG and Sustainability
Council, together with business leadership, with support
from the ESG Strategy and Deployment Unit, the public
affairs and legal departments, and Nestlé’s R&D scientists.
In 2019, Nestlé joined the Ellen MacArthur Foundation’s
New Plastics Economy initiative. We pledged to work
across the industry to create a circular economy for plastic,
starting with packaging – eliminating unnecessary plastic
in our packaging and innovating to make the plastic that
we do need recyclable and reusable.*
Our intention is to follow the nine Golden Rules, which are
voluntary, independent and time-bound commitments on
which all members of the Consumer Goods Forum’s Plastic
Waste Coalition for Action are aligned in order to drive
progress in packaging design and development toward
a circular model.
The second golden rule is to ‘Remove problematic elements
from packaging’. As such, we have identified several plastic
types, including polystyrene, that are unlikely to be included
in municipal recycling systems around the world. Since 2019,
we have been phasing out materials included in our
Negative List from our packaging.
Helping to protect, renew and restore natural resources | Packaging and circularity
* As per Ellen MacArthur Foundation definitions.
Less packaging Better packaging Better system
Reduce Reuse and refill Redesign Recycle Rethink behaviors
Reducing our use of plastic packaging
material in general and virgin
plastics in particular
Scaling reusable and refillable
systems to eliminate the need for
disposable packaging
Pioneering alternative
packaging materials
to facilitate recycling
Supporting infrastructure
that helps to shape
a waste-free future
Rethinking behaviors
of Nestlé, retail
partners and consumers
54321
Our five-pillar strategy
Pillar 1: Less packaging - Reduce
We are reducing packaging materials by removing
unnecessary plastic lids, accessories, layers and films. For
example, in Egypt, we have eliminated plastic bottle cap
tear-off bands from Nestlé Pure Life water bottles, getting
rid of 240 tonnes of PVC annually. We are also eliminating
close to 2 300 metric tonnes annually by removing Gerber
baby food over-cap lids.
Pillar 2: Less packaging - Reuse and refill
We are testing and scaling different models of singleuse
packaging-free delivery and reusable and refillable
solutions. For example, in Canada, we established new
refillable packaging pilots through our partner TerraCycle’s
online Loop platform, which allows people to order refills
for home delivery. Once products are consumed, containers
are collected from homes or at drop-off locations in
store, cleaned and put back into circulation. In France,
we are offering this service in partnership with leading
supermarket chain Carrefour, where Nesquik, Ricoré coffee
and Chocapic Bio (organic) cereals are now available
in reusable Loop containers. Vittel and S.Pellegrino
natural mineral waters in Carrefour stores in Paris can
also be purchased in reusable glass bottles from Loop
with a deposit. Customers get their deposits back, paid
directly into their bank accounts, once they have returned
their used bottles.
Similarly, in Canada, Häagan-Dazs can be purchased in
reusable containers, while other refillable pilots are ongoing
with major retailers in the country, as well as in the United
States. for dairy, coffee and waters.
Pillar 3: Better packaging - Redesign
We are continuously working to develop novel technologies
and innovative packaging solutions. For example, we
are well on our way to eliminating all plastic straws from
our products, using paper as an alternative material. The
innovation required Nestlé to develop an entirely new
supply chain to meet a key technical challenge: bendable
paper straws that are durable enough for consumers, while
meeting rapid dissolvability criteria for paper recycling.
To achieve this result, we worked with suppliers and our
R&D packaging experts on new paper technologies and
manufacturing processes, as well as a new scientific
methodology to test the safety and reliability
of our paper straws.
Several pilots launched in 2019 and continued through 2021
in key markets to reach an annual quantity of 4.5 billion
paper straws while eliminating 1 632 tonnes of plastic.
Paper straws for ready-to-drink products have been rolled
out across various locations, including Pakistan, Malaysia,
Indonesia, Brazil and the Dominican Republic. The paper is
sustainably sourced and certified by the FSC.
Worldwide, we transitioned our Smarties range of products
to recyclable paper packaging, a first for any global
confectionery brand. This transition helped eliminate
plastic from approximately 250 million packs sold
globally each year.
We have also started to replace the plastic- and aluminumlayered
packaging of Nesquik with grease-resistant
coated paper. In 2021, we began changing the wrappers
of organic Maggi bouillon cubes in France, from a multilayer
laminate that included aluminum to recyclable and
sustainably sourced paper.
Pillar 4: Better system - Recycle
Greater uptake of recycling in our markets requires
improved waste management infrastructure and changes
in behavior – for Nestlé, retail partners and consumers alike.
In Indonesia, Nestlé became the first food company to
partner with Project STOP, a collaboration with cities and
governments in Southeast Asia to prevent ocean plastic
leakage. The project is aimed at creating sustainable,
circular and low-cost systems for end-of-life materials
that capture as much value as possible. It supports many
existing local initiatives and waste pickers in coastal areas
and collected around 70 tonnes of waste and nine tonnes
of plastic waste per day in 2021.
Nestlé Egypt is committed to recovering and recycling as
much plastic as it sells. In 2021, this amounted to 18 000
tonnes of PET through the Dorna initiative, a collaboration
with the Egyptian Ministry of Environment, together with
partners CID Consulting and PayMob. Dorna aims to boost
waste collectors’ collection capacity with monthly targets
and monetary incentives.
Pillar 5: Better system –
Rethink behaviors
We are working with consumers,
retailers and communities to
encourage and stimulate responsible
behavior. Through partnerships and
new programs, our goal is to help
make recycling an easy seamless
process. For example, in the UK, we
teamed up with our competitors to
create Podback, a unique coffee pod
recycling system (see case study on
the following page).
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 35
Material difference
Our Nestlé Institute of Packaging Sciences allows
us to accelerate packaging innovation and to deliver
on our commitments. Inaugurated in 2019, it is the
only research institute of its kind in the food industry.
The institute’s team of full-time scientists is dedicated
to conducting cutting-edge research on the safety and
functionality of new sustainable packaging materials,
including paper, and it is helping to transition our
packaging from multi-material to mono-material
polymers. Other areas of innovation include more
simplified packaging, refillable designs, alternative
delivery solutions and high-performance technology
for paper barriers as well as increasing recycled
and bio-based content and compostable
and biodegradable materials.
The team collaborates with more than 200 other
packaging experts throughout Nestlé’s global R&D
network, as well as with research institutions,
start-ups and suppliers to test and pioneer
packaging solutions.
Helping to protect, renew and restore natural resources | Packaging and circularity
Fit for purpose
Packaging must be fit to meet local circumstances,
whether we are innovating for protection in hot and
humid climates, designing packaging that can be
recycled through local infrastructure or focusing on
preventing materials leakage where infrastructure
does not exist. This is why our packaging roadmaps
are developed on a regional basis. Selected countries
serve as models for our markets and zones, ensuring
packaging delivers safe and nutritious food, while
adapting to different products and geographies.
2021 2024
Paper/plastic combo
Laminated paper with
paper content <50%
Dark/opaque PET bottles
Any color that is not transparent
clear, transparent green or
transparent blue cannot be used
PVC
Liners for metal press-twist
closures and coffee capsule
sealing layer
2022
Materials to be phased out from Nestlé packaging*
Overly complex design
Packaging that is not
functionally needed
Undetectable items
Rigid plastic items not
detectable by commonly
used Near Infrared
sorting technology
Polystyrene
Trays, dairy pots, ice cream
lids and coffee lids
ePS
Trays, tubs, sleeves and
transportation protections
Regenerated cellulose**
Twist wraps and windows
PET-G
Labels and sleeves
PVDC
Coating on plastics,
paper and paperboard
PVC
Liners for metal twist-off
closures and printing inks
*The above measures shall be subject to more stringent local
legislation mandating earlier phase-outs or changes by either
material type, product or date.
** Except for applications designed for composting.
Delivering safe and nutritious food
Safety and quality Pre-portion
Avoid food waste Information
Adapting to product and geography
Product sensitivity Climate
Route-to-market Legislation
Collective action
Tackling plastic pollution requires incentives for systems
change. We advocate for a legislative framework for
circularity through our work with the Ellen MacArthur
Foundation, the Consumer Goods Forum’s Plastic Waste
Coalition for Action, the World Economic Forum’s Plastic
Action Partnership and the Plastic Pact.
We are helping to make food-grade recycled plastics
(aside from recycled PET, which is already commonly
used in plastic drinks bottles) more cost-competitive
compared to virgin plastics. By 2025, we are allocating
more than CHF 1.5 billion to pay a premium to suppliers
to help create a market for these materials.
We proactively support well-designed and effective
mandatory Extended Producer Responsibility schemes
and prioritize our support for improving recycling
rates and infrastructure in the countries representing
the majority of our plastic footprint. We continue our
Neutrality initiative in 12 countries, where we are focusing
on collecting the same amount of plastic waste we have
sold as plastic packaging.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 36
Packaging pieces placed on the market (billion)
352.0
338.0
2020 2021
Performance
We are making progress through our five-pillar strategy
to support a future where no packaging ends up in landfills
or as litter. The virgin plastic used in our packaging has
reduced by 8.1% since 2018 (adjusted baseline).* At yearend
2021, 93.5% of our total packaging and 74.9% of our
plastic packaging was designed for recycling.**
Several factors have affected the percentage of plastic
types used in our packaging by weight (see table), including
acquisitions and divestments, packaging reduction
initiatives, a shift toward paper packaging, product mix
changes and data quality improvements. These factors
impacted both the quantities and recyclability of plastic
packaging sold.
Of our total packaging, 85.4% by weight was recyclable in
2021 and 39.5% was made from renewable materials. Of
our plastic packaging, 49% was recyclable or reusable.***
CASE STUDY
Teaming up with
competitors for coffee
pods recycling
in the UK
To increase the adoption of consumer recycling,
people need easy ways to dispose of their recyclable
household materials. To this end, we have joined with
Jacobs Douwe Egberts to create Podback, a first-ofits-kind
coffee pod recycling system in the UK.
Read more about Podback
Outlook
In the coming year, we will continue to help develop wellfunctioning
collection, sorting and recycling programs to
promote the circular economy of packaging and to help
reduce the impact on the environment.
Successful recycling depends on local authorities providing
adequate collection, sorting and processing infrastructure.
We will invest in R&D and new technologies that explore
and improve systems for recycling and the management
of recovered and end-of-life materials. Our CHF 250
million sustainable packaging venture fund will continue
to target investment opportunities for the development of
innovative packaging, refill systems and recycling solutions
toward these efforts.
We will continue to test, learn and pilot different systems
that allow people to reuse and refill packaging and access
different delivery methods for our products, whether instore
or for home delivery.
At the same time, we will also be working to improve
labeling as an important step in helping consumers
to understand how to dispose of our products properly.
Helping to protect, renew and restore natural resources | Packaging and circularity
Material 2020 2021
PET (Polyester) 39.0% 32.1%
PE (Polyethylene) 17.8% 18.1%
PP (Polypropylene) 15.5% 19.4%
PO (Polyolefin) 7.8% 5.4%
Laminates 19.1% 24.1%
Others 0.8% 0.9%
Percentage of global plastic used in our
packaging by weight and type (% of total)
Smarties was the first Nestlé
confectionery brand to make a
complete transition to recyclable paper
packaging for its range of products.
We are supporting a future where
none of our packaging ends up in
landfill or litter on land or in seas,
oceans and waterways
The above factors, combined with our progress in reducing,
rethinking and redesigning packaging for individual
products, resulted in a decrease in the weight of packaging
materials used to 3.8 million tonnes (2020: 4.5 million
tonnes) and in the number of packaging pieces placed on
the market to 338 billion (2020: 352 billion).
In 2021, we saw Extended Producer Responsibility (EPR)
laws enacted in around 16 countries and EPR being
discussed by the governments of several more countries.
These laws could help the development of the necessary
infrastructure to collect, sort and recycle packaging
materials. We will continue to collaborate with governments
and other stakeholders in the expansion of these schemes,
which is a critical condition for the achievement of the
circularity ambition.
39.5%
Packaging made
from recycled and/or
renewable materials*
* The baseline for our virgin plastic reduction KPI has been recalculated
to reflect the changes in our product portfolio through acquisitions and
divestments (e.g., Nestle Waters North America (NWNA), which was divested
in 2021). Plastic types used in our packaging in 2020 have not been restated
and still include NWNA, for consistency with prior year reporting.
** Our Reporting Scope and Methodology for ESG KPIs document provides
details and definitions and can be found at www.nestle.com/esg-kpis.
*** As per Ellen MacArthur Foundation definitions.
EY reviewed
for consistency
* Sustainability Accounting Standards Board
Process Foods Standard FB-PF-410a.1
** Data are based on Nestlé-branded products
sold by Nestlé fully owned entities. We are
improving data collection and preparing
baseline recalculations for acquisitions,
divestments and changes in portfolio scope
for future reporting.
Plastic packaging designed for recycling** (%)
74.8
74.9
100.0
2020 2021 2025
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 37
Helping to boost the well-being of
communities and support a just transition
to regenerative food systems.
People must be at the heart of the transition
to regenerative food systems.
Sustainable production, respect for human
rights and investing in women and youth
are at the core of Nestlé’s activities to help
boost rural development and livelihoods and
strengthen communities. We seek to play our
part in tackling child labor risks, improving
animal welfare, increasing farmer incomes
and investing in the next generation.
From enabling access to education for children,
farmers and communities, to investing in
local infrastructure, working with partners to
map supply chains and provide raw material
certifications, we use the many tools at
our disposal to support communities and
help them thrive.
Produced sustainably 39
Human rights 43
Youth opportunities 47
Strengthening
communities
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 38
Background
We rely on secure supplies of high quality, sustainably
produced ingredients.
Many of the environmental and social challenges in our
supply chains have their roots in or are exacerbated by
poverty. Rural development and livelihoods are therefore
important topics at Nestlé, as is animal welfare in the
supply chains of specific ingredients such as dairy,
meat and eggs.
This is another reason why we are embracing regenerative
agriculture. By improving soil organic matter, regenerative
agriculture helps to drive soil fertility, while at the same
time making key nutrients more available, helping soil
to retain water and drain better, and supporting the
conservation and restoration of biodiversity. Together,
these benefits help improve the resilience of farmland to
climate change and have the potential to help improve
farmers’ livelihoods.
As a food company with a global
footprint, we can support agricultural
communities to improve their livelihoods
and quality of life. By promoting
regenerative food systems and
supporting a just transition, we can help
farmers create resilient businesses and
earn a living income.
Produced
sustainably
Strengthening communities
Our performance
Cocoa sourced through the Nestlé Cocoa Plan (%)
48.0
50.6
100.0
2020 2021 2025
Certified sustainable palm oil
(2021 data comprises Roundtable on
Sustainable Palm Oil certifications and
credits as follows: 19.7% segregated, 1.1%
mass balance, 47.5% book and claim, 2.5%
independent smallholder book and claim)
58.10
71.10
100.0
2020 2021 2023
16.3%
Key ingredients produced
sustainably in 2021*
SDG contributions
We will source:
–	100% sustainably
produced key
ingredients* by 2030
–	 100% certified
sustainable palm oil
by 2023
–	 100% sustainable
cocoa and coffee
by 2025
Coffee produced sustainably (Sourced either
through the Nescafé Plan or the Nespresso
AAA Sustainable QualityTM
Program) (%)
75.0
82.80
100.0
2020 2021 2025
* Key ingredients applies to 14 key agricultural raw
materials that cover 95% of our annual sourcing by
volume: coffee; cocoa; dairy; sugar; cereals and grains;
hazelnuts; palm oil; pulp and paper; soya; vegetables;
spices; coconut; fish and seafood; and meat,
poultry and eggs.
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
EY reviewed for consistency
Our Reporting Scope and Methodology
for ESG KPIs document provides details
and definitions and can be found at
www.nestle.com/esg-kpis
76.3%
Cage-free eggs
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 39
Approach
Our Sustainable Sourcing team ensures that the raw and
packaging materials and the services we source have been
produced in accordance with our Responsible Sourcing
Standard. This Standard sets out our non-negotiable
requirements and ways of working with regard to sourcing
and production for supply chain tiers, going back to the
origins of the goods and services we buy.
In coffee and cocoa, the Nespresso AAA Sustainable
QualityTM
Program, the Nescafé Plan and Nestlé Cocoa Plan
provide additional requirements specific to these
raw materials.
Our key partners and sourcing teams also carry out regular
farm visits and assessments against our Responsible
Sourcing Standard, in addition to third-party audits
and certification where relevant.
Finally, while our main consideration is the people within
our direct supply chain and their immediate families,
we also support activities that reach into the wider
community, such as building schools, providing access
to water and sanitation and running women’s literacy
and numeracy programs.
Beyond responsible sourcing
Building on years of work with suppliers and farmers to
source key raw materials that are traceable and responsibly
sourced, we are now raising the bar with a more
comprehensive and systematic approach to assessing,
addressing and reporting on social, environmental and
animal welfare risks in our supply chain.
Our new approach will help build the foundations to
advance regenerative food systems at scale. Going
forward, we are focusing on the systematic deployment
of our responsible sourcing requirements through our
supply chain to help transform agricultural production
practices in a way that has a positive impact on people,
nature and climate.
To measure progress, we have defined a new ‘produced
sustainably’ key performance indicator (KPI) for our 14
priority raw materials that combines multiple requirements
(see adjacent box). This replaces our two previous
commitments and related KPIs that came to a close
in 2020: percentage of volume traceable and percentage
of volume responsibly sourced. As our new KPI is more
ambitious than the previous ones, results are not
comparable with prior years’ performance.
Performance
In 2021, we continued to make
steady progress in all areas of our
sustainable sourcing.
Transparency
Multiple commodity- and issuespecific
reports were released during
the year, such as our Nescafé Plan
report and our Forest Positive report.
Environment
In 2021, we scaled up our ambition
to support the transition to more
regenerative agricultural practices.
We are defining a new KPI to
measure our progress toward
sourcing 20% of our key ingredients
through regenerative agriculture
methods by 2025.
For more information on our
environment work, see Section 1
and Section 3 of this report.
Human rights
In December 2021, we published
Nestlé’s Human Rights Framework and
Roadmap. Please see the following
chapter for more details.
Animal welfare
Animal welfare is a key consideration
for us. We have rapidly expanded our
procurement of cage-free eggs, with
100% of our eggs now certified cagefree
in the United States and Europe
and 76.3% worldwide. We are on
track to achieve 100% cage-free eggs
globally by 2025.
In dairy, we use advanced sensors
and monitoring techniques to
check the well-being of the cattle
providing our milk. The introduction
of more varied pastures allows
cows to graze outdoors for longer
periods of the year.
The four key pillars of activity
for Nestlé’s approach to
sustainable sourcing
Transparency
Improve traceability of the
origins of our raw materials
and understanding of how
they are produced
Environment
Contribute to conserving
and restoring the environment
and natural resources
Human rights
Help protect and promote
the rights of people in
our supply chains
Animal welfare
Contribute to continuously
improving how the animals in
our supply chains are treated
Strengthening communities | Produced sustainably
What does ‘produced
sustainably’ mean?
Our new ‘produced sustainably’ KPI builds on our
Responsible Sourcing Standard, which sets out
basic non-negotiable standards and important
sustainability practices that we ask our suppliers
and their employees, agents and subcontractors to
respect and adhere to at all times when conducting
business with us.
It applies to 14 key agricultural raw materials that cover
95% of our annual sourcing by volume: coffee; cocoa;
dairy; sugar; cereals and grains; hazelnuts; palm oil;
pulp and paper; soya; vegetables; spices; coconut;
fish and seafood; and meat, poultry and eggs.
‘Produced sustainably’ means the origin of
the key ingredient is known and the direct
supplier is progressing to address social and
environmental performance.
The minimum criteria to define if a raw material
is produced sustainably are:
	– Traceable back to the point of origin (farm or
group of farms)
	– Human rights and environmental due-diligence
systems are in place to assess, address and
report on the potential or actual impacts in
the supply chain
	– The tier-1 supplier is measurably progressing in
addressing actual or potential human rights and
environmental impacts identified in its supply
chain, as well as animal welfare where applicable
For each key raw material in scope, specific
criteria have been defined to take into account
their specificities.
435 500
Farmers trained
through Farmer Connect
Treating animals in our supply chain with dignity and making sure they are
kept healthy are important considerations for our sustainable sourcing.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 40
Strengthening communities | Produced sustainably
Supporting livelihoods
Outlook
In 2022, we will work to increase the volumes we source
that meet our new and more robust ‘produced sustainably’
definition. We will also continue working toward our target
of sourcing 20% of our key ingredients through regenerative
agriculture by 2025.
The Nestlé Cocoa Plan continues to make progress toward
sourcing 100% of all the cocoa we source by 2025. We will
also continue to work with independent farmers and tier-1
suppliers toward our goal of having 100% of our key forest-risk
commodities assessed as deforestation-free by end of 2022,
building on the 97.2% achieved at the end of 2021. We have
committed to achieve deforestation-free cocoa and coffee by
2025. In 2022, we launched an Income Accelerator Program
that aims to improve the livelihoods of cocoa families. See
page 46 for more details.
In dairy, we will continue to develop our net zero dairy farm
pilot studies – gradually expanding and implementing the
learnings to other farms around the world.
CASE STUDY
The Nestlé
Cocoa Plan
Supporting bright futures
for cocoa farmers
Better cocoa, better farming and better lives are the three
foundational pillars of the Nestlé Cocoa Plan. Our ambition
is to source 100% of the cocoa we use in our products
through the Nestlé Cocoa Plan by 2025.
We offer farmers training and resources to help increase
their yields. We have also distributed over 16 million higheryielding
cocoa plants to replace aging, less productive
ones. Additionally, we are helping farmers develop
alternative income sources such as beekeeping and
empowering women to earn their own incomes. At the
same time, we are working to protect the environment. We
are tackling deforestation, trialing agroforestry and planting
2.8 million shade trees by the end of 2022.
We also contribute to communities. In Ghana, for example,
we have partnered with the International Federation of Red
Cross and Red Crescent Societies to bring safe water and
sanitation facilities to around 38 000 people (2019-2021).
Keeping children in school and supporting the human
rights of farming communities are equally crucial
to improving livelihoods in the cocoa sector and form
part of our initiatives.
Read more about the Nestlé Cocoa Plan
198 000
Tonnes of cocoa sourced annually through
the Nestlé Cocoa Plan
50.6%
Cocoa sourced through the Nestlé Cocoa
Plan (48% in 2020)
1 038 904
Forest and fruit trees distributed globally
(669 305 in 2020)
152 236
Farmers in the Nestlé Cocoa Plan (124 053 in 2020)CASE STUDY
Community solutions
for Cavally forest and
cocoa growers
West Africa is one of our largest cocoa-sourcing regions
and a focus of the Nestlé Cocoa Plan. In Côte d’Ivoire,
we are working with the government’s forest agency,
SODEFOR, and the non-profit organization Earthworm
Foundation on a three-year program in the Cavally Forest
Reserve, one of 234 classified forests in the country.
“Forest preservation and restoration has an
essential role to play in securing the future for
cocoa farming, and Cavally is a great example of
what we can do together with local communities,
the government and an expert foundation.”
Darrell High, Head of the Nestlé Cocoa Plan
Read more here
The transition to regenerative
agriculture must be a just and
equitable one. Our approach is to
help farmers improve their incomes
in multiple ways, such as training
in good agricultural practices and
providing access to diversified
income sources. Improving incomes
also helps tackle child labor risks
and deforestation.
Agronomy
Our global team of 1 000 agronomists
helps farmers optimize production
and reduce costs through techniques
such as pruning and chemical
fertilizer optimization. In dairy, we are
helping farmers introduce cover crops
to pastures to reduce feed costs.
Providing financial assistance
In some rural areas, there is a lack
of financial infrastructure to allow
farmers to save or borrow money. The
Nestlé Cocoa Plan has helped farmers
access basic financial services
through the creation of 270 village
savings and loans associations.
Agripreneurship
The Nescafé Plan provides training
to many of our farmers in basic
business skills such as bookkeeping.
In addition, in Southeast Asia our
operations have introduced the
Farmer Business Schools (FBS)
concept in collaboration with the GIZ
Sustainable Cocoa Business Project.
Since its introduction in 2018 over
10 000 farmers have been trained.
FBS is a comprehensive learning
approach that targets changing the
mindset of smallholder farmers to
become entrepreneurs, with some
participants more than doubling net
farm income in 12 months.
Diversification
We encourage farmers to reduce
their exposure to global market
prices for their main crop (and boost
biodiversity) through ‘intercropping’ –
planting other crops in their fields. We
also encourage income diversification
through activities such as beekeeping
and biogas and renewable
energy generation.
Women’s empowerment
Data from the Nestlé Cocoa Plan
clearly demonstrates a link between
higher levels of women’s education
and reduced risks of child labor.
Activities such as founding women’s
groups, developing income-generating
activities and providing literacy and
numeracy courses are all part of
our efforts to support women, their
families and wider communities.
Premiums
In Ghana and Côte d’Ivoire, Nestlé
was one of the first companies to
purchase 2020/2021 cocoa with the
governments’ joint Living Income
Differential premium. We believe it
can be a useful tool to complement
our efforts to improve the lives of
farmers and their communities
through the Nestlé Cocoa Plan.
Our evolving regenerative agriculture
approach also envisions the use
of cash incentives for vulnerable
smallholders supplying ingredients
grown using regenerative methods.
Direct investments will also help
support farmers during this time.
EY reviewed
for consistency
EY reviewed
for consistency
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 41
CASE STUDY
Nescafé Plan impact monitoring
Through the Nescafé Plan, sustainable
coffee sourcing, regenerative agriculture
and community resilience are intertwined.
The power
of coffee
CASE STUDY
Good for coffee
farmers and good
for the planet
Marcelo Burity, Head of Green Coffee Development, Nestlé
“Sustainable sourcing means many things for coffee
because, as in any agricultural commodity, there are
many aspects to consider. Deforestation-free sourcing,
forest restoration, regenerative agriculture, living
income, human rights and child protection are all
areas that interact and are mutually reinforcing.”
Read more about our approach to sustainable coffee
Economics
Measuring farmer
earnings and
earning power from
coffee and other crops
–	 Net farm and
household income
–	 Coffee, farm and
off-farm revenue
–	Productivity
–	 Cost of production
–	Renovation
and rejuvenation
–	 Farm diversification
–	 Adoption of best
agricultural practices
Social
Measuring our impact on
farm families and workers
–	 Bookkeeping records
–	 Financial literacy
–	 Gender and youth
participation
–	 Safe working conditions
Environment
Measuring water, soil
and biodiversity
–	Watershed
conservation and
agricultural water use
–	 Soil health
and conservation
–	 Crop nutrition
and protection
–	 Weed management
–	Agroforestry
and shade coverage
–	Biodiversity
and intercropping
General
–	 Farm and farmer
characteristics
–	 Farmer satisfaction
with the Nescafé Plan
program
–	 Challenges to
coffee production
–	 Farmer view
on future outlook
CASE STUDY
Nespresso
sustainability
and Reviving
Origins
Abraham Leno, Executive Director,
Eastern Congo Initiative
For almost 20 years Nespresso
has been helping farmers build
sustainable livelihoods through
the Nespresso AAA Sustainable
QualityTM
Program.
“Nespresso’s funding of Asili, the
social enterprise powered by Eastern
Congo Initiative in Congo, will help
farmers secure a brighter future
– building meaningful livelihoods
and bringing world-class essential
services, such as clean drinking water
and affordable healthcare, to families.
It is transformational change like
this that allows hope to flourish
and communities to heal.”
Read more here
92.6%
Nespresso coffee sourced
via the Nespresso AAA
Sustainable QualityTM
Program (93.0% in 2020)
81.5%
Nescafé coffee sustainably
sourced (75.0% in 2020)
Strengthening communities | Produced sustainably
Dorotée Uwimbabazi, coffee farmer,
Kiguri, northwestern Rwanda
In my experience, women tend to use better farming
practices. We usually know how much our household
spends and what it needs. So, we accept training sessions
that are offered to the community and focus even more
time when it comes to learning how to make our land
more productive.
“I received training with Nestlé agronomists through
the Kahawatu Foundation. They have taught me about
weeding, pruning and the benefits of shade trees to
protect my crops. When the leaves shed, they also
help my soil as mulch. I receive follow-up visits to put
everything into practice, and I share what I learn with other
growers in my village.
“Before working with Kahawatu, I was producing 500
kilograms or less from 700 coffee trees. Now I’m expecting
to produce around 600 kilograms.
“But the yields can only be sold once a year. The agronomists
stress financial planning so that our incomes can be
secured year round, and we are well-prepared for the
next harvest. I have always grown tomatoes, cassava,
soya beans and cucumbers to make sure I do not rely
on just one crop.
“Coffee, though, has always been a source of happiness
for my family. I invest my earnings back into our plot
and do my planning. That means buying materials that I
will need for the next year and allocating an amount for
laborers since I cannot do it alone. My husband is working
elsewhere, but his income contributes to the expenses.
“Our standard of living has improved with our income from
coffee. Our savings have gone toward good investments
like goats, which we can keep to feed the family or to
sell if we must. I was able to buy more land – and added
200 coffee trees.
“The Kahawatu Foundation has helped us to not only
grow coffee, but to secure a better future for our children.
We can afford to give all four of them an education.
Women in coffee
The Nescafé Plan partners with organizations on the
ground, such as the Kahawatu Foundation in Rwanda,
to help make coffee farming more profitable.
In Rwanda, about three quarters of registered land
is directly or jointly owned by women. The Kahawatu
Foundation partnership is empowering women’s voices
in farmer groups and supporting young people to become
leaders in their trade. Through tailored agricultural training
programs the partnership is reaching more than 3 000
female farmers today.
Dorotée Uwimbabazi is one of these farmers. As the
daughter of coffee farmers in the village of Kiguri in
northwestern Rwanda, she became a coffee farmer herself
to provide for her family. She is one of many women in her
producer organization (see right for her story).
Case study from the Nescafé Plan Report.
EY reviewed
for consistency
EY reviewed
for consistency
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 42
Human
rights
By the end of 2022,
we will publish salient
issue action plans for
our 10 salient issues.
This will include key
performance indicators on
human rights and will be
published as part of our
salient issue action plans
By 2025, we will be
reporting on our progress
on implementing our
salient issue action plans
SDG contributions
Human rights are inextricably linked
to our shared future. By respecting
and advancing them in our value chain,
we are building a foundation that
contributes to a resilient future
for our planet and its people.
Background
Respecting and advancing human rights is necessary for a
transition to just and equitable food systems. It enables fair
and resilient livelihoods, promotes safe and dignified work,
and rewards farmers for quality ingredients and positive
contributions to the environment and communities.
People and respect for human rights are at the core of
Nestlé’s culture and values. We are committed to raising
awareness, promoting best practices and empowering
people across our own operations and supply chains.
We were early adopters of frameworks like the United
Nations Guiding Principles on Business and Human Rights
and the Organisation for Economic Co-operation and
Development Guidelines for Multinational Enterprises.
At the same time, we piloted many programs to assess
and address risks on the ground.
Our commitment to respecting and promoting human
rights is a key part of advancing regenerative food systems
at scale, which is focused on transforming farming
practices at the heart of the food systems while enabling
a just and equitable transition. We aim to use our scale,
experience and resources to contribute to this vision.
Strengthening communities
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 43
Our human rights
framework
infographic to
Re-design
Approach
A just transition to regenerative food
systems demands a multifaceted
approach that prioritizes and protects
people. Our newly published Human
Rights Framework and Roadmap is
the foundation of this approach.
Developed over 2019 and 2020 by
our Human Rights Community, the
framework and roadmap incorporates
stakeholder recommendations and
input from external organizations,
including business and human
rights experts.
Our Human Rights Framework
Our new framework puts due
diligence at the core of our approach
and defines the five enablers that
support our work.
Our board-level Sustainability
Committee aims to ensure that
we carry out due diligence and
report on our most severe risks to
human rights, while our ESG and
Sustainability Council manages
salient issues (see right) in the
upstream supply chain. It is supported
by the work of the Human Rights
Community, gathering more than
20 people from different functions
with human rights responsibilities.
Stakeholder engagement and
partnerships have long been an
important part of our strategy. We
partner (and have partnered) with
a wide range of organizations on
human rights issues, such as the
Danish Institute of Human Rights,
the Fair Labor Association and
the International Cocoa Initiative,
among many others.
Our CARE program monitors internal
human rights compliance at Nestlé
facilities through external audits.
Our salient issues
Our salient issues are those human rights at risk of the most
severe negative impact on people through our activities or
business relationships. By the end of 2022, we will develop
and publish a dedicated action plan for each of our salient
issues. These will articulate our strategy for assessing,
addressing and reporting on each salient issue, defining
what we need to do across our value chain, as well as what
collective action can be taken.
Yann Wyss, Senior Manager, Social
Impact Global Public Affairs and ESG
Engagement, Nestlé
“Human rights due diligence is more than
just a compliance issue. If done well, it
should help actively improve people’s lives
and make a real difference in communities.”
Strengthening communities | Human rights
Right to water and sanitation
Living income and living wage
Forced labor and responsible recruitment
Health and safety at work
Freedom of association and collective bargaining
Indigenous Peoples and Local Communities’ land rights
Data protection and privacy
Child labor risks and access to education
Right to food and access to nutritious, affordable
and adequate diets
Gender equity, non-discrimination and non-harassment
Governance
and incentives
We will integrate human
rights at all levels of our
governance structure.
Policies and
control systems
We will leverage our policies
and control systems to
ensure human rights are
embedded throughout
the organization.
Engagement
and advocacy
We will engage with key
stakeholders and advocate
for smart due diligence
legislation and collective
action on the ground.
Strategic
partnerships
We will partner with
thought-leading and
boots-on-the-ground
organizations.
Transparency
and reporting
We will provide a high
level of transparency of the
progress we make and the
challenges we face.
Enabler 1 Enabler 2 Enabler 3 Enabler 4 Enabler 5
These action plans will help create crucial synergies across Nestlé.
Our experience has taught us that to be effective, our action plans will need to be built on the following enablers:
Our Human Rights
Framework
Due diligence is at the
heart of our new Human
Rights Framework
To enhance our due diligence,
we are developing and
implementing dedicated action
plans for each of our salient issues.
As
sess – Address – Rep
ort
Enabler 5
incen
tives
control
systems
Governa
nce and Polici
es
and
Enab
ler1
and
ad
vocacy
Engag
em
ent
Enab
ler3
Enab
ler2
partne
rships
Stra
tegic
Enab
ler4
Due
Diligence
Salient Issues
Action Plan
Transparency and reporting
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 44
Households covered by CLMRS to prevent
and address child labor risks
57525
69318
2020 2021
Households covered by CLMRS to prevent
and address child labor risks
10711
2020 2021
Children covered by CLMRS to prevent
and address child labor risks
86134
94748
2020 2021
Children covered by CLMRS to prevent
and address child labor risks
2325
5978
2020 2021
Total number of children who received support
(cumulative)
127550
156974
2020 2021
Total number of children who received support
(cumulative)
2399
2809
2020 2021
Performance
After launching mandatory human rights training for all
employees, we identified in 2020 a handful of countries
with gaps in terms of the number of employees trained.
These were mainly low-risk countries with a substantial
number of factory workers with no computer access and
where in-person training was made difficult because of
COVID-19 restrictions. By the end of 2021, we closed
this gap in most countries. In addition, it is part of the
mandatory training for all new employees, which will
ensure that all future employees are trained.
In 2021, we improved our grievance mechanism
by integrating our former Integrity Reporting System
(for employees) and our external platform (for all other
stakeholders) into an independently operated system
called ‘Speak Up’.
In June 2021, our UK and Australian markets worked
together to produce their first joint Modern Slavery and
Human Trafficking report to address the requirements
of their countries’ modern slavery acts. This demonstrates
the collaboration and consistency of our coordinated
global approach.
57 892
Employees trained
on human rights in 2021
Promoting human rights in agricultural supply chains
Our efforts to source sustainably have enabled us
to make important progress in promoting human rights
in agricultural supply chains.
In 2021, we launched a detailed labor rights action plan for
palm oil. We are working toward a palm oil supply chain
where all workers, at all tiers of production, work and live
in safe and healthy conditions, are provided contracts
detailing their working conditions, are paid fairly, have the
right to associate freely and collectively bargain and have
access to grievance mechanisms.
Our long-term Forest Positive strategy, announced in
2021, is helping us to find ways to integrate further
protection for tenure-based rights for Indigenous People
and Local Communities into our approach, while at
the same time helping smallholder farmers to develop
sustainable livelihoods.
Child labor risks and access to education
We were the first company in the cocoa sector to introduce
a Child Labor Monitoring and Remediation System
(CLMRS), and many companies have now adopted it as a
leading tool that helps tackle child labor risks by working
directly with communities on the ground. Our CLMRS
prioritizes access to education, including building and
renovating schools and securing birth certificates for
registration, and tackling rural poverty through income
diversification programs and support.
The CLMRS is a six-step process that starts with raising
awareness. Community Liaison People visit farmers and
cooperatives, and based on visits and surveys, identify
children at risk. Families of children identified receive
further visits where they are advised and supported by the
Community Liason People. Regular follow-up visits allow us
to measure how many children have been prevented from
entering child labor or have stopped doing hazardous work.
Each year, we identify some children in our supply chain
who are at risk of engaging in child labor. We carry out
follow-up visits with each of these children and record the
number who report that they are no longer at risk during
two consecutive visits. In 2021, the number of children who
reported no longer being at risk at the two most recent
visits was 6 307 in Côte d’Ivoire and 738 in Ghana.
Collaborating to reimagine fairer food systems
In 2021, Nestlé partnered with Tufts University to convene
a UN Food Systems Summit dialogue with stakeholders
to discuss the nexus between regenerative food systems
and the right to food.
In total, 57 participants from academia, non-governmental
organizations, the private sector and UN organizations
discussed the major barriers and corresponding levers
to making healthy diets affordable, accessible and
adequate for everyone, including the responsibilities
of different stakeholders in ensuring access to safe
and nutritious food for all, collectively moving toward
the 2030 SDGs.
Child Labor Monitoring
and Remediation
System performance
Côte d’Ivoire
Côte d’Ivoire
Ghana
Ghana
156 974
Cumulative total number of
children who have received
support (127 550 in 2020)
2 809
Cumulative total number of
children who have received
support (2 399 in 2020)
6 307
Number of children identified
who reported no longer
engaging in child labor at the
two most recent follow-up visits
(4 838 in 2020)
738
Number of children identified
who reported no longer
engaging in child labor at the
two most recent follow-up visits
(693 in 2020)
Strengthening communities | Human rights
1 897
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 45
Outlook
While our Human Rights Framework and Roadmap outlines
our approach and priorities, we will continually adapt our
strategies to meet realities on the ground.
In January 2022, to expand our work to tackle poverty
as a root cause of child labor risks, we launched a novel
approach that aims to support farmers and their families
in the transition to more sustainable cocoa farming. The
Income Accelerator Program will pay cash incentives
directly to farming families for activities such as school
enrollment, sustainable agricultural practicexs, agroforestry
and income diversification. The incentives will encourage
behaviors and agricultural practices that are designed to
steadily build social and economic resilience over time.
These incentives are paid on top of the premium introduced
by the governments of Côte d’Ivoire and Ghana that Nestlé
pays and the premiums Nestlé offers for Rainforest Alliance
certified cocoa. The payments are not linked to production
volumes and reward cocoa-farming families for the benefits
they provide to the environment and local communities.
By incentivizing practices such as generating diversified
incomes, for example through growing other crops, raising
livestock such as chickens, beekeeping or processing other
products like cassava, we are also building on our previous
commitment to improve food availability and dietary
diversity among the farmers who supply us.
85
Company and supplier
representatives in Turkey’s
hazelnut supply chain
received training in labor
rights issues in 2021
CASE STUDY
Harvesting the future
Nestlé began working with the Fair Labor Association (FLA)
in Turkey in 2012 to help seasonal workers in our hazelnut
supply chain address challenges relating to labor conditions
and child labor risks.
To help improve recruitment and employment practices
for seasonal migrant workers, we needed to address
the root causes across all the seasonal jobs that workers
move between in Turkey’s agriculture sector.
As a result, in 2019, we joined Harvesting the Future, a multisectoral,
multi-geography and multi-stakeholder project led
by the FLA to help supply chain partners address working
conditions for their shared seasonal workforce.
The program in 2021 focused on child protection and child
labor risk emediation, elimination of hazardous work for
workers under the age of 18, improved access to basic
services and greater adherence to responsible recruitment
practices, grievance mechanisms and living wages.
So far, 85 company and supplier representatives have
received training in these areas. A total of 12 suppliers
have launched child labor risk monitoring and remediation
programs, and we increased awareness and registration
of labor intermediaries. 
Read more here
The palm oil supply chain is far
reaching and complex. Millions of
workers, from plantations to mills
and refineries, are part of our palm
oil sourcing journey. We want to help
our suppliers build a palm oil supply
chain free from human rights issues
such as forced labor, discrimination
and health and safety hazards.
Our approach between 2010 and
2017 was based on conducting
site assessments against our
Responsible Sourcing Standard.
We worked with our suppliers and
partners to develop time-bound
action plans to address the gaps
found and supported suppliers,
mills, plantations and smallholders
in our supply chain to address
specific labor rights risks such as
forced labor and child labor, through
targeted interventions.
After conducting a labor rights
assessment of Nestlé’s Indonesian
palm oil supply chains, we
developed our first dedicated
Action Plan on Labor Rights in
Palm Oil Supply Chains in 2018
with the collaboration of the Danish
Institute for Human Rights and
Earthworm Foundation.
With our partner Verité, we then
conducted a Management Systems
Assessment of how we manage
labor rights risks in our palm oil
supply chain globally. In 2019,
Verité deepened this assessment
by conducting in-depth reviews
of two of our suppliers in order
to understand how the Nestlé
Responsible Sourcing Standard
translates into practices throughout
the supply chain.
Verité conducted comprehensive
labor and occupational health and
safety assessments of seven mills
and 11 estates across Malaysia and
Indonesia that collectively employ
over 4 000 workers, including
interviews with over 200 workers.
The results and recommendations
made in this assessment, together
with our previous experience and
learnings, led to the revision of our
labor rights approach in palm oil.
Working with Verité, we developed,
and are now implementing, a
Program Assurance Framework
which focuses on strengthening
management systems for assessing,
addressing and remediating labor
rights issues. We are also continuing
to train palm oil suppliers and
producers on the guidelines and
tools that we have helped to develop
over the years, that explain specific
labor-related issues and how they
can be addressed.
To address labor rights issues
we have learnt that it is critical to
incorporate changes into broad
landscape initiatives where we
determine priority issues and deploy
solutions to improve conditions
for workers. This is why we are
supporting several landscape
approaches that address labor rights
within their scope.
We are collaborating with partners
and suppliers to systematically
deploy more comprehensive labor
rights requirements through our
supply chains. Together with workers,
governments, multilateral and nongovernmental
organizations, peer
companies, certification bodies,
individual experts and our partners,
as well as with various industry
associations and multi-stakeholder
platforms, we are working to better
understand and help tackle the root
causes of crucial labor rights issues.
Leveraging participation in multistakeholder
platforms, particularly
in the Consumer Goods Forum
Forest Positive Coalition, we are also
advocating for the development of
regulations, policies, programs and
incentives to create a conducive
environment for labor rights.
Our vision is one of a sustainable palm
oil sector, where nature is protected
and restored, where human rights,
including labor rights, are respected,
and where workers and smallholder
farmers are offered decent work and
livelihoods. As we implement our
Palm Oil Labor Rights Action Plan,
we will continue to test new tools
and approaches to ensure a strong
and relevant approach for the future.
Strengthening communities | Human rights
Our Human Rights Framework and Roadmap
guides our approach to protecting people in
our supply chains.
“Nestlé and Verité developed
the Program Assurance
Framework to take into
account macro, labor and
operational risks in the supply
chain. The framework is
based on key labor data from
refineries and their direct
and indirect supply bases.
It looks at suppliers’ systems
and whether they are set up
to address endemic and longstanding
labor issues.”
Melizel Asuncion, Senior Director for
Operations, Verité Southeast Asia
Continuing to strengthen
our approach
Palm oil and
labor rights
CASE STUDY
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 46
11 598
Apprenticeship and
traineeship opportunities
7 422
Young farmers trained
through the Nestlé
Agripreneurship Program
23 899
Job opportunities
for people under 30
1 291 306
Young people impacted
through digital events (e.g.
career fairs, educational
webinars, e-learning
programs) that focus on
upskilling young people and
make them more employable
(819 678 in 2020)
* Delivered specifically through Nestlé
needs YOUth initiative
As the global economy has slowed during the COVID-19
pandemic, it was young people who were the most
impacted, with a disproportionate number losing their jobs.
As economic recovery continues, young people must not be
left behind. By creating the jobs young people need, we can
benefit from their skills, perspectives and abilities.
Outside our own operations, it is important for Nestlé to
inspire the next generation of farmers. This is particularly
true as urbanization draws more and more young people
to cities, causing the average age of farmers in many parts
of the world to rise well into the 50s.
Encouraging and supporting young people to develop
livelihoods in farming also creates an opportunity to train
them in regenerative agriculture methods from the start
of their working life.
Upskilling young people internally, in our supply chains and
in society in general, is good for us, for individuals and for
communities. As a major employer, we can make a positive
difference, providing employment as well as digital and
physical training and skills development opportunities to
young people. We can also use our position as a global
company to inspire other multinational businesses, driving
collective action to create more training and employment
opportunities than we could achieve alone. This is why the
Nestlé needs YOUth initiative exists and why we founded
the Global Alliance for YOUth, together with 24 other
international private sector companies.
Bringing young people into Nestlé keeps
us in touch with an ever-changing
world. Meanwhile, around the world we
face an ageing farmer population. This
is why inspiring young agripreneurs
and entrepreneurs and investing in
youth employability is at the heart
of regeneration.
Background
Young people bring fresh ideas and energy to the workplace.
They are a crucial part of any company’s long-term talent
pipeline. Providing opportunities for young people helps
bring more diverse perspectives into our workplace
and strengthens relations with local communities that
benefit from increased employment. Moreover, facilitating
youth employment by creating fair and legitimate
job opportunities supports respect for human rights,
specifically the right to work, with ‘just and favorable
remuneration’, as set out by the United Nations.
Youth
opportunities
By 2030, our ambition is
to help 10 million young
people around the world
have access to economic
opportunities 
SDG contributions
Our performance*
Young people around the world with access
to economic opportunities (millions)
0.04
0.400.44
0.971.41
1.042.45
1.443.89
2017 2018 2019 2020 2021
Cumulative total
Strengthening communities
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
EY reviewed for consistency
Our Reporting Scope and Methodology
for ESG KPIs document provides details
and definitions and can be found at
www.nestle.com/esg-kpis
Yearly total
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 47
Approach
Our work to create opportunities for young people is run
through our Nestlé needs YOUth initiative. The initiative
is managed centrally by a youth project lead and has
three pillars of activity: Agripreneurship, Entrepreneurship
and Employability.
Under each of the three pillars we create broad and diverse
opportunities for youth, with varied levels of engagement
and potential impact on the future of the individuals
involved. For example, we provide online training and
content and make it widely available to increase their level
of employability. This also helps raise awareness among
young people about the challenges of today’s world of
work and how to overcome them. We also provide on-thejob
training opportunities for young individuals through
programs such as Nesternship and our R+D Accelerators.
All the opportunities we create contribute to internally
reported metrics in support of our three pillars and our
2030 commitment.
Performance
We continued working toward our 2030 commitment
to help 10 million young people around the world have
access to economic opportunities. In 2021, we succeeded
in creating 1.44 million opportunities through the Nestlé
needs YOUth initiative, bringing the cumulative total since
we announced our commitment in 2017 to 3.89 million.
The roll-out of Nestlé needs YOUth across our operations
is part of our work toward our 2030 ambition.
Agripreneurship
In September 2021, when we announced our plan to
advance regenerative food systems at scale, we engaged
with key opinion leaders around critical related issues.
One of these discussions focused on ‘empowering young
agripreneurs’ and how we can work together with our
stakeholders to make agriculture more attractive to young
people. The discussions provided valuable insights that we
can use for programs, communications and education tools.
In 2021, we continued our longstanding Agripreneurship
Program, with a focus on Farmer Business Schools. These
help to teach farmers relevant business skills with the aim
of making their farms more financially robust. Through this
program, we identified around 15 447 agripreneurs in 2021
who we are training to become future-fit farmers. Those
that are under 30 contributed to our overall total of 7 422 of
young farmers trained through the Nestlé Agripreneurship
Program in 2021.
Entrepreneurship
In August we announced the inauguration of our largest
R+D Accelerator to date, in our fundamental research
center in Lausanne, Switzerland. The R+D Accelerator
concept was launched in 2019 and provides a unique
opportunity for youth start-ups, students and entrepreneurs
to bring their innovations to market quickly.
The internal and external teams have full access to Nestlé’s
infrastructure and R&D experts from around the world.
Since 2019, over 257 participants have benefitted from the
R+D Accelerator program and more than 90 products have
been tested in 19 countries.
During 2021, Nestlé Middle East and North Africa has been
supporting the Swiss-Middle East Circular Economy for
Youth Initiative. Starting in March, student innovator teams
from the region were identified and given mentorship by
Swiss universities and companies, including Nestlé. Six
teams were selected as finalists and pitched their projects
to a jury at the Swiss Pavillion at Expo 2020 in Dubai,
delayed a year due to COVID-19, but finally held in October
2021. Plasticycle was the winning team, and in 2022 it
will be receiving training and a special on-site bootcamp
provided by Nestlé in Switzerland.
Employability
On October 7 and 8, 2021, Nestlé Colombia hosted the
VI Pacific Alliance Youth Summit, with the live virtual
participation of more than 35 000 young people from Chile,
Colombia, Mexico and Peru. Various high-level government
representatives from the four countries also participated,
including the President of Colombia, Iván Duque.
The summit focused on providing awareness, inspiration
and educational content for young people in these countries.
In addition, our online internship program, Nesternship,
was further expanded in 2021, helping young people
around the world gain valuable professional experience.
Geographical Zones that ran the program in 2020 also
improved the package for 2021. For example, Zone AOA
(Asia, Oceania, and Africa) added an e-Learning module
on interview skills as part of the assessment process,
together with a completion certificate for the module and
advice on strengths and improvement opportunities. See
the Nesternship case study to find out more about the
program in 2021.
Driven by the importance of coffee to Nestlé, in collaboration
with Federación Nacional de Cafeteros in Colombia, we also
launched a pilot training program called Nestlé Young Baristas.
Offering a blend of virtual and face-to-face training, the
seven-module program aims to provide holistic training that
creates youth employment opportunities for beneficiaries.
Nestlé needs YOUth initiative
Agripreneurship
Encouraging young people to create livelihoods as
farmers, to run their farms as businesses and to use
regenerative agriculture methods in support of a just
transition to regenerative food systems.
Entrepreneurship
Promoting fresh thinking and product innovation
through our R+D Accelerators in locations all over
the world.
Employability
Providing youth access to economic opportunities
by offering jobs, traineeships, internships (including
through digital Get Support events and our virtual
Nesternship program), apprenticeships and training.
“When we began to process
coffee six years ago, we
faced many technical
challenges. With support from
Cohonducafe and Nestlé, we
were able to get a new dryer,
which made a huge difference
to our efficiency. Recently I
was even offered a job doing
something else, but I turned it
down, because I’m in love with
coffee!And with the benefits
that come from having a new
dryer, I want to keep working
here on my farm.”
Luis Sagastume, a young
Honduran coffee farmer
Strengthening communities | Youth opportunities
We aim to inspire the next generation of farmers
and agripreneurs through our Nestlé needs
YOUth initiative.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 48
The Global
Alliance for YOUth
The Alliance is a business-driven movement of likeminded
organizations passionate about working
together to help young people around the globe get
the necessary skills to thrive in the world of work,
today and tomorrow. At present, 25 companies are
members of the Global Alliance, brought together
and led by Nestlé. The alliance members aim to
provide knowledge to help young people develop the
necessary skills to increase their chances of finding
a job, offer first-job experiences and promote and
support young entrepreneurs. The Global Alliance for
YOUth members joined forces at the World Economic
Forum in Davos in 2019 and is supported by the
International Labor Organization, the World Bank
and the Global Apprenticeship Network.
In April 2021, the alliance members announced that,
despite the challenges associated with COVID-19,
in 2020 its members had supported 20 million young
people with relevant training to develop the skills
to find a job or start a business.
The alliance’s primary theme for 2021 was resilience
and mental health. In support of International Youth
Day, the Global Alliance for YOUth published a
webinar bringing together speakers from Nestlé,
the World Economic Forum, Willis Towers Watson,
Facebook and Sodexo to give young people affected
by COVID-19 an increased level of confidence to find
work. A key part of the webinar was the launch of the
newly developed Resilience Model.
You can find more information on the
Global Alliance, including its members at:
www.globalallianceforyouth.org
> 20 million
Young people supported by the
Global Alliance for YOUth in 2020
Outlook
Moving forward, we will continue to invest in young people
and their futures across our three strategic pillars of activity.
Over the next 12 months we will begin exploring ways
to develop an entrepreneurship platform to help people
with ideas to connect more easily to the R+D Accelerator.
We will also add more technical training in regenerative
agriculture to our Agripreneurship Academy.
In 2022, we will launch a new Agripreneurship Academy –
online video-based training designed to attract and train
the next generation of farmers to work in a regenerative
way. The academy will address topics ranging from climate
change, agroforestry and soil health to animal welfare. The
videos will be available on YouTube, accessible anywhere
on any device, and often available in multiple languages.
The initial effort will focus on raising awareness of
regenerative farming. Following this we intend to introduce
more technical training to support regenerative agriculture.
In the coming year, we will be expanding our Nesternship
program into additional markets across Asia, Oceania
and sub-Saharan Africa. We will also continue to improve
the application portal for potential interns by adding
a new e-learning module. Similarly, the Nesternship
app will be enhanced with a chat feature and more
educational content.
Through the Global Alliance for YOUth, we will continue
to drive and promote positive impacts for young people
among our private sector partners and focus on key themes
such as resilience and agility, as well as to investigate the
important role of digital inclusion in youth opportunities.
The global pandemic presented many unprecedented
challenges for business. While many organizations and
individuals have adapted to a new reality, in which much
of our communication is digitalized and handshakes are a
thing of the past, the ripple effects of this are still being felt.
As we have seen, one major trend since the start of
2020 has been the negative effect on young people and
employment. Nestlé’s focus on youth has meant this
cannot be overlooked: we wanted to find a way to provide
young people with training and employment opportunities
during these difficult times.
This is why we launched our Nesternship program in Zone
Asia, Oceania and sub-Saharan Africa in 2020. It was
our first Nestlé Virtual Internship Program offering an
experiential online learning opportunity for young people.
Not only does it provide an experience tailored to interns’
preferences (for example, working remotely with countries
around the world), from the recruitment process to
the hands-on experience, it also gives them the opportunity
for self-paced learning, to find out more about our values,
and facilitates international peer-to-peer interaction. 
To help facilitate stronger engagement and connection,
in 2021 we also created a new tool for our ‘Nesterns’ to
access digital learning content at their fingertips. We
also launched the Nesternship smartphone app. It offers
learning resources on various topics, a chat feature to
interact with fellow Nesterns across Zone Asia, Oceania
and sub-Saharan Africa, notifications on upcoming events
and direct links to apply for job opportunities.
The Nesternship program and others like it help us to create
champions of regenerative agriculture and nurture a pipeline
of talent for the next generation of Nestlé leaders who share
our purpose and values.
Read more about how our research is applied in
experimental farms in growing communities to
achieve breakthroughs
CASE STUDY
“Challenging, inspiring and transformative are the
words that define my experience at Nestlé. Working
on inclusivity projects, employer branding and
youth engagement was an opportunity to hone
my professional and personal growth.” 
Minhaal Ayam Khan, Nestlé Pakistan 
“The Nesternship was a wonderful opportunity I got
from Nestlé Lanka. I connected with new friends
through online webinars and fun activities, and it
gave me great business exposure.“ 
Deepaja Kalupahana, Sri Nestlé
“I came into Nestlé with a strong feeling that
I would be able to explore new ways of being
creative through great mentorship, working
culture and impactful projects, and I was right!”
Elmy, Nestlé Malaysia
“My expectations were exceeded beyond doubt,
Nestlé Central and West Africa Region supports
and accommodates growth.  I also had the
privilege to meet so many Nesterns from all over
the world and form beautiful friendships.”
Maame Efua Kowa Williams, Nestlé
Central and West Africa
“It’s been a great experience, and I’ve discovered
so much about myself. I developed valuable skills
for both my personal life and future career.” 
Adwoa Ofosua Boateng, Nestlé Central
and West Africa
Our Nesternship
program
Strengthening communities | Youth opportunities
Virtual internships
across Europe, the
Middle East, Asia,
Oceania and
sub-Saharan Africa
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 49
Operating
responsibly
By creating a healthy, positive and ethical
environment, empowering our employees
to make sustainable business decisions
and putting the right systems in place,
Nestlé is building for the future.
Our environment is rapidly changing and so
are we. Our employees join Nestlé because
they want to be a ‘force for good’ and finding
people who share this goal is fundamental
to our ability to influence the move to more
regenerative food systems.
The way we operate, our systems, policies
and procedures and our integrity and ethics
are all essential to transformative action.
We are becoming an ever-more digital business,
which is helping us to drive efficiencies
and giving us greater supply chain insight.
However, increased digitalization comes with
a greater responsibility to protect the rights
of our consumers, suppliers, stakeholders
and employees by safeguarding their data
and using it respectfully.
Our people 51
Ethical business 56
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 50
Operating responsibly
Our
people
Our employees are at the heart of our
commitment to being a ‘force for good’.
It is thanks to their determination that
we can strive to advance regenerative
food systems at scale. Their health
and well-being is our priority.
We respect and encourage
all our employees: we value their
potential regardless of race, ethnicity,
gender, national origin, religion, gender
identity, sexual orientation, age and
different abilities, leaving no one behind.
Background
At Nestlé, we strive to make our business a great place
to work – now and in the future. We want to foster an
attractive and fulfilling environment offering exciting
opportunities and varied careers. Every aspect of how we
treat our employees is rooted in respect and we bring our
purpose and values to life through our diverse and inclusive
workforce. In addition, we recognize that employee health
is fundamental to a strong business. Healthier employees
tend to be happier, more engaged, higher performing and
more productive.
As stated by the International Labour Organization,
as much as being a public health crisis the COVID-19
pandemic has been an employment and social crisis.
It has had unequal effects on different groups of people.
For example, gender equality has lapsed as women took
on additional childcare and housework responsibilities.
Young people’s education has been disrupted and it has
become much harder to find a first job.
COVID-19 also accelerated a shift to more technologydriven
flexible work arrangements. E-commerce and teleservices
have boomed, artificial intelligence and automation
have driven efficiencies and businesses and employees
have had to change rapidly to keep pace. In 2021, it
became clear that continually adapting how employees
work – physical versus remote working or other methods
of physical distancing – has become an everyday reality.
At Nestlé, we responded to this shift.
We aim to increase
the proportion of women
in our top 200+ senior
executive positions to
30% by 2022
SDG contributions
Our performance
Women in the top 200+ senior
executive positions (%)
25.6
27.2
30.0
2020 2021 2022
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
Our Reporting Scope and Methodology
for ESG KPIs document provides details
and definitions and can be found at
www.nestle.com/esg-kpis
64%
Countries where Parental
Support Policy is fully rolled out
0.71
Recordable illness rate
per million hours worked
1.33
Recordable injury rate per million
hours worked (1.28 in 2020)
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 51
Approach Talent management
We manage talent on a global scale, ensuring that we
attract and hire the right candidates to be a ‘force for good’,
while empowering our employees to navigate their own
inspiring careers.
Talent attraction: Our employer branding
We align our approach to talent acquisition and retention
with our business strategy, purpose and values, so that our
company and our people share the same goals.
We recognize that people want to work for a company
that has values that align with their own, and sustainability
is a big part of that. We offer our employees the chance
to join a global corporation that encourages innovation
and change toward a better world. We have an important
role to play in contributing to preventing and managing
the impacts of climate change, and we seek to attract
and retain the best and brightest talent to help us
fulfill this task.
Talent development and retention
We provide a unique opportunity at Nestlé. The breadth
and depth of our operations is vast and we encourage our
people in finding new and exciting opportunities within
the company throughout their careers. We encourage
global mobility and work with our employees to fulfill their
needs in terms of flexibility, training, growth and reward.
Increased remote working has led to many of our face-toface
training courses moving online. We have worked hard
to ensure that despite the reduced physical contact our
courses achieve the same objectives in terms of supporting
and promoting the Nestlé purpose and values.
All our employees are empowered to drive their own
careers and supported by their line managers through
our performance management process and annual
performance goals. Our ‘SuccessFactors’ online system
provides a tool and resource both for managers and
employees to find guidance and to track this process.
Within ‘SuccessFactors’ we provide competency
frameworks and development planners for each
function, as well as digital library access to our iLearn
educational platform.
Diversity and inclusion
We focus our inclusion efforts on four key pillars of
diversity (gender balance, people with disabilities, LGBTQ+
community and race and ethnicity) and intersectionality
as an essential element of our approach working toward
equity and belonging. See our case study for more on our
approach to diversity and inclusion.
Our Gender Balance Acceleration Plan aims to increase the
proportion of women in our top 200+ senior executive posts.
We carefully monitor our succession planning to ensure
that we have the right pipeline for our most critical business
roles and provide career support and guidance through our
Senior Leader Development Roadmap (Corporate Mentoring
Program, Senior Leaders Development Assessment Center
and Senior Executive Program).
Employee health, safety and well-being
Employee health is fundamental for building sustainable
organizations, driving market performance and
demonstrating shareholder value.
Employee Health Strategy
Our employee health vision aims to inspire and empower
our people to choose a healthier future for themselves,
their families and our business.
Our approach involves:
	– Protecting our people through anticipation
and management of workplace health risks
	– Promoting health and well-being by offering programs
and solutions that encourage our people to take
responsibility and adopt an approach of ‘learn,
feel and choose’
	– Supporting our people during and after injuries and/or
illnesses, helping to create optimum health outcomes
	– Fostering an environment where employees experience
caring leadership
This approach is underpinned by the principles of respecting
privacy and personal choices, enabling informed decisionmaking
and supporting a healthy working environment and
working conditions.
Attracting, developing
and retaining talent while
preparing our workforce
for the needs of our
future business.
Talent
management
Diversity
and
inclusion
Employee
health, safety and
well-being
Organizational
design and change
management
Employee
relations and
engagement
Inspiring and
empowering our people
to choose a healthier
future for themselves,
their families and
our business while
providing a healthy
working environment.
Building a better
business that is
inclusive and equal for
genders, people with
disabilities, LGBTQ+
communities and all
races and ethnicities.
Based on our Corporate
Business Principles our
culture is supported by
regularly updated policies
and communicated
through our training.
Supporting Nestlé in its
goal to be a company
where employees are
treated with mutual
trust and fairness, and
where they feel engaged
with our purpose,
values and principles.
1. 2. 3. 4. 5.
Our approach to our people is realized
through five key areas:
Operating responsibly | Our people
How we promote
diversity and inclusion
Culture
Our inclusive culture leverages the differences
of our employees
Society
Our work in society is based on the way we
act and engage with our stakeholders
Innovation
Our innovations consider diverse consumers and
customers when we make and distribute our products
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 52
Nestlé Roadmap for Employee Health
To achieve our vision, in March 2021, we launched our
roadmap, outlining our priorities for 2021 to 2023 and
serving as a reference for our markets when developing
their Employee Health Strategies.
Employee relations and engagement
Our vision for employee relations is to support Nestlé in its
goal to be a company where employees are treated with
mutual trust and fairness and where they feel engaged
with our purpose, values and principles. We aim to provide
a compliant, safe and healthy work environment that is
contemporary and flexible, contributing to openness and
inclusiveness in all our interactions. We also believe in
being a business that collaborates with our employees,
employee representatives, employee organizations and
external labor stakeholders in order to contribute to the
business’s success.
Our Global
Parental Support
Policy
Enriching the quality of life
for all parents and families
Individual journeys to parenthood are very different,
so we have created an expanded and inclusive parental
support policy that applies to all employees in all
kinds of families. Our aim is to encourage an inclusive
culture in the company, supporting gender equality and
diversity everywhere.
By the end of 2022, all primary caregivers in the company
will gain the right to a minimum of 18 weeks’ paid leave
to care for new children. The primary caregiver is also
granted the right to extend their leave up to a total of six
months, in accordance with local laws and regulations or
local practices. In addition, for the first time, secondary
caregivers will be given four weeks’ minimum leave.
The policy is gender neutral and applies whether children
are biological or adopted as minors.
The policy is applicable to all Nestlé markets, as a
minimum standard on parental support for Nestlé
employees worldwide.
“I am very grateful for the
opportunity to take one
month’s paternity leave. It
has allowed me to spend time
with my baby and support my
wife during and after delivery,
and even to sleep a bit later
after short nights!”
Omar Cedrati, Demand Planning
Manager, Cereal Partners Worldwide,
Nestlé Middle East
Nestlé Roadmap for Employee Health 2021-2023
CASE STUDY
Operating responsibly | Our people
Foundations Governance
and capabilities
Health promotion Communication
and networking
–	Employee
health standards
and reporting
–	 Crisis management
plan
–	 Medical assistance
program for
business travelers
and expatriates
–	 Direct employee
health support
–	Ergonomics
–	 Strengthen employee
health community
–	Employee
Health Council
–	Employee
health dashboard
–	Evidence-based
approach
–	Education
and awareness
–	 Driving actions
through programs:
- 	 Physical activity
- 	 Healthy eating
- 	 Mental health
- 	Comprehensive
health check
–	 Employee health
communication
strategy
–	Stakeholder
management
–	Networking
Respecting privacy
and personal choices
Enabling informed
decision-making
Supporting a healthy working environment
and healthy working conditions
Our principles
Under each specific pillar (foundations, governance and
capabilities, health promotion and communication and
networking), we detail key milestones and deliverables for
progressing with the Employee Health agenda at Nestlé.
Our vision
Inspiring and empowering our people to choose a healthier future
for themselves, their families and our business.
We work closely together with the International Union
of Food Workers to ensure that the needs of our entire
workforce are addressed properly. This relationship has
been particularly important during the pandemic to ensure
the safety and health of our employees, while managing
business continuity and supporting local communities.
We review our policies and guidance documents regularly,
refreshing and updating them where needed or launching
new policies to fill any new needs. In April 2021, we
launched a new Policy Against Discrimination, Violence
and Harassment at Work, which is being progressively
rolled out in our markets until
the end of 2022.
Toward the end of 2021, we launched
our Global Guidance for Providing
Support to Employee Victims of
Domestic Violence or Abuse. We
are one of the first companies in the
world to have such guidance in place.
It outlines a framework for markets
to support employees experiencing
or surviving domestic violence,
and follows our policy against
discrimination, violence
and harassment at work.
This guidance is meant to support
all employee victims and survivors
of domestic violence, regardless
of gender identity. It aims to:
	– Guide markets on adopting
and implementing measures
of support for employees who
are experiencing or surviving
domestic violence
	– Raise awareness of all employees
on domestic violence and remove
fears of stigmatization at work
for employee victims
In addition, 2021 was also a critical
roll-out year for our Global Parental
Support Policy. By the end of 2021,
64% of countries had fully rolled out
the new policy and we are on track
to complete the roll out in 2022.
1 2 3
We empower employees
to navigate their own
inspiring careers.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 53
Operating responsibly | Our people
Performance
Talent management
During 2021, we aligned our employer branding and
recruitment communications with the corporate brand
and internal regeneration messaging. Nestlé as a ‘force
for good’ is now the bedrock of all our recruitment
communications in all channels and parts of the world.
In 2021, we also became more targeted in our recruitment
drives, by headhunting in-demand skills groups using more
specialist channels to reach potential candidates. We also
moved to a proactive recruitment strategy: rather than simply
recruiting for open positions, we now target skills and roles
we regularly recruit for on an ongoing basis.
We measure our success based on our ability to attract
high-caliber candidates who are seeking an employer with
purpose. We monitor engagement with our recruitment
communications and the traffic we drive to our careers site.
We are evaluating the skills we will need such as greater
digital and AI capabilities. We are now clear about the
capabilities we need to recruit and the development journeys
we need to encourage our employees to embark on.
Nestlé has a strong record of democratized training access,
providing lifelong learning opportunities for all employees,
regardless of role or location. The journey to increase
channel access started in 2016 and accelerated with the
advent of the COVID-19 pandemic. By June 2021, our
training catalogue had been moved into a virtual format,
postponed or alternatives offered where the training course
was not suitable for online delivery (e.g. some leadership
programs). After a dip in training rates in 2020 (14.3 hours
on average per employee) due to COVID-19, in 2021 we saw
average training hours per employee increase (15.8 hours),
having moved to virtual training wherever possible.
Diversity and inclusion
Gender balance
With 27.2% of our top 200+ senior executive positions held
by women, we are on track to achieve our 30% target in
2022. Our pipeline of high-caliber females is strong, with
43.8% of managerial positions currently held by women.
We have been working to balance the gender makeup of our
workforce. As well as company-wide initiatives, our markets
have tailored programs to increase workplace diversity.
In 2021, we rolled out training on unconscious bias and
preventing sexual harassment in the workplace and we
aim to train at least 90% of all our employees globally
by end-2022. We assessed our 2020 Equal Pay Analysis
with positive results and now plan to conduct this
annually, supporting our 2018 pledge to accelerate equal
pay for equal work.
54.4%
Employees covered
by collective
bargaining agreements
43.8%
Middle and senior
management that
are female
15.8
Average number of hours
of technical or vocational
training provided to workers
in the company’s operations
Our people by type of employment
Covers Nestlé employees registered in the human resources system (approximately 97% of all employees).
Each data point correct at the time the snapshot was taken.
Permanent Temporary
Total number of employees
by employment contract
(by gender)
Female 94 337 8 779
Male 155 175 8 632
Total number of employees
by employment contract
Americas 95 464 5 839
Asia, Oceania and Australia 70 183 3 356
Europe, Middle East and North Africa 84 018 8 117
Full time Part time
Total number of employees 
by employment type
(by gender)
Female 96 382 6 734
Male 160 649 3 158
The Bloomberg Gender Equality Index recognized Nestlé
for our transparency in gender reporting and advancing
women’s equality in the workplace for the fourth
consecutive year. We also featured in the European
Round Table’s D&I Toolkit of best practices.
People with disabilities
We believe that living with a disability should not define a
person. Every individual has the unique ability to contribute
to society and deserves equal opportunities.
At the end of 2020, we formed a partnership with
The Valuable 500, which we embedded in 2021.
The partnership involves three commitments, to:
	– Provide equal opportunities for all and continuously
advance accessibility for people with disabilities
within our operations
	– Promote awareness and understanding of the
experience of people living with disabilities, in order
to mitigate unconscious bias and create an even more
inclusive workplace
	– Leverage our Nestlé needs YOUth initiative to positively
impact the lives of young people living with disabilities,
helping them develop the skills they need to thrive
LGBTQ+ community
Nestlé has expressed support for the United Nations
Standards of Conduct for Business on tackling
discrimination against LGBTI people. In addition, we
are proud to be part of the Partnership for Global LGBTI
Equality, the only LGBTQ focused organization in the world
where the private sector and civil society sit together
as members, to accelerate equity, social and economic
inclusion for the LGBTQ+ community. The Partnership is an
initiative of Business for Social Responsibility, the Office of
the United Nations High Commissioner for Human Rights
and the World Economic Forum.
Our Global Parental Support Policy recognizes the diversity
of families and that parental roles are no longer solely
defined along traditional gender lines. All families can
benefit from enhanced parental paid leave, including
same-sex couples, single parents and couples that adopt.
Race and ethnicity
Nestlé has longstanding efforts on advancing racial
and ethnic inclusion. Today, more than 88% of market
management committee positions are held by local
employees. This is in line with our efforts to build leaders
who are truly representative of the communities we serve.
The World Economic Forum launched the Partnering for
Racial Justice in Business initiative, of which Nestlé is
a founding partner. We have committed to putting racial
and ethnic justice on our Board’s agenda and setting
long-term strategies to develop an anti-racist workplace.
Organizational design and change management
We manage and promote the Nestlé purpose and values
at a global level, providing our markets with the support
and guidance they need to ensure a consistent culture
throughout Nestlé. In line with our Corporate Business
Principles, our purpose and values are based on the
same ideas as when we develop our products: fairness,
honesty and a concern for individuals, families, pets
and communities.
While our Corporate Business Principles are firmly
established, we recognize that the world is changing
fast, so we constantly evaluate the external environment
and are ready to adapt. And, while we are committed to
following our Corporate Business Principles in all countries,
we always take local legislation, cultural and religious
practices into account.
Our pledge to support equal work for equal pay is supported
by our Equal Pay Analysis, which will be conducted annually.
We offer employees a chance to
be a ‘force for good’ and develop
rewarding careers.
Our culture of diversity and inclusion is reinforced
by our support networks, partnerships and policies.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 54
Operating responsibly | Our people
Our risk-based safety strategy
In 2020, we launched a new safety
strategy focused on our highest
risks: life-saving rules to prevent
fatal and serious injuries; digital
safety innovation, where technology
could contribute to the elimination
of serious accidents; and behavioral
science to help us understand what
drives at-risk behaviors and address
root causes.
By executing our strategy, we
believe we will achieve significant
improvements in our safety
performance and toward our
zero-harm vision.
Outlook
In 2022, we aim to pilot a diversity
and inclusion self-identification
program in a selection of target
markets and, if successful,
will consider rolling it out in a
greater selection of markets.
We are also planning on further
developing our culture of inclusive
communication and marketing.
In certain markets, such as the
United States, we are required to
have a comprehensive Supplier
Diversity program in place. Our goal
in 2022 is to take our learnings from
the markets running this program
successfully and to expand the
program around the world.
Within our employee health and
wellness agenda, we will continue to
work through our defined roadmap
toward our 2023 goals. One program
that we anticipate introducing is
related to healthy eating.
Employee health, safety and well-being
Managing the pandemic was a key priority in 2021. Our
focus was on developing and deploying global guidance
on COVID-19 vaccines. The emergence and circulation of
more transmissible variants of SARS-CoV-2 is a significant
concern, highlighting the need for fast vaccination of
employees and for maintaining a comprehensive approach
to protection measures. To avoid the double burden
of COVID-19 and seasonal flu, we also reinforced the
importance of the flu vaccination for markets.
To facilitate direct access to health services and to holistic
well-being support, we finalized two global bidding projects
to validate reliable and good quality global providers
for our market Employee Assistance Programs and
Telemedicine support.
The Nestlé Know Your Numbers Program (KYNP) enables
us to measure the overall health risks of our employee
population, helping us to better understand health profiles,
the impact of health on productivity and to build strategic,
targeted and evidence-based interventions. KYNP was
made available to 227 640 employees by the end of
December 2021 and based on the cumulative data, 49 687
Nestlé employees so far have participated in the global
version of the program. The most prominent health risks
continue to be related to stress, unhealthy eating, lack of
physical activity, weight and sleep.
Awareness building in the form of educational programs,
such as #HealthyLives training, continues to play a key
role in building the foundations for informed decisions on
healthier lifestyle choices.
#HealthyLives, our global training program, includes
guidance and interactive exercises across four dimensions:
physical activity, sleep, nutrition and mental health, and
is available in 16 languages. In 2021, it had a good uptake
and was the non-mandatory training with the highest
completion rate at Nestlé, with 445 776 videos completed
by 31 636 employees. To support employees implementing
what they have learned, 94.4% of our canteens now offer
a healthy meal and 53.0% of our sites provide a nap room
or equivalent space for resting.
We also launched a series of global webinars called
HealthTalks, which aim to raise awareness and provide
easy-to-apply tips on how to develop and maintain
healthier lifestyle habits. Six webinars were delivered:
	– Mental health and well-being
	– Sleep
	– Physical activity and active breaks
	– Emotional intelligence
	– Maintaining good relationships in a hybrid world
	– How to cope with the mental load of parenting
By creating a respectful, supportive environment
in which our employees feel free to be their best selves,
we empower them to help fulfill our plan to advance
regenerative food systems at scale.
“Our business touches people across many locations
around the world. Any differences, which could be cultural,
societal, physical or even legal among others need to be
considered from a diversity and inclusion perspective,
so we look to our purpose and values, rooted in respect,
to guide what we do.
“But it is our global reach that makes diverse teams so
crucial to our success. Without the inclusion of different
and varied voices, knowledge, experiences and abilities,
we would not be able to create value for our customers
and society beyond. We must reflect, and respect, the
communities where we work and who we rely on.
“As Global Head of Diversity and Inclusion, my role is to
lead a team that cultivates diversity, equity and inclusion
in the workplace where anyone is able to access and
enjoy equal rewards, resources and opportunities, from
recruitment through to development and advancement. We
see everyone as equal, regardless of race, ethnicity, gender,
national origin, religion, gender identity, sexual orientation,
age and different abilities, leaving no one behind.
“This year, we have continued to work toward our
commitments: to empower women as agents of change for
a just transition to regenerative agriculture practices across
our entire value chain; and to increase the proportion of
women in our top 200+ senior executive positions to 30% by
2022. Although we are proud of the progress we have made
there will always be room for improvement. As a business
we are also continuing to roll out our gender-neutral Global
Parental Support Policy in all our markets by end-2022.
“This is why we look to other companies regarding diversity
and inclusion practices (not just to compare, but to help
each other) why partnerships are so important, and the
reason we created more in 2021. Holding up a mirror to
ourselves by joining forces and opening up to transparency
and accountability is key.
“But our corporate initiatives come back to our people.
It’s easy to get lost in targets and numbers, regulations,
frameworks and policies – what matters is that every
employee feels safe and happy to be who they are
at their place of work. That they feel supported, valued,
and respected – every day and at every stage of their life.
“Success relies on each of us and every individual has their
role to play. We can all make the company more inclusive
with the daily decisions we make and foster our collective
growth by being willing to evolve.
NESTLÉ EXPERT
Nilufer Demirkol,
Global Head of Diversity and
Inclusion, Nestlé
A catalyst
for change:
Diversity and inclusion
in all corners of the world
The series had 14 480 total video views and received very
positive feedback.
Taking into account the impact of mental health issues
and sedentarism, which was amplified during COVID-19,
we launched a global digital platform called Pleaz. The
platform provides easy access to active breaks. In Pleaz,
employees can find guided exercises from stretching to
mindfulness that help unwind and renew their energy in
a quick active break. In 2021, we had 26 193 activations in
the platform, confirming the high interest of our employees.
We also marked World Mental Health Day on October
10 with an entire week dedicated to the topic. The week
included inspirational and supporting messages from
senior management, testimonials from employees,
viral campaigns, tips on how to support colleagues
that are struggling and how to get help. This reached
130 063 employees.
We also continued to work with industry bodies, including
our work with the Consumer Goods Forum where we
are a member of the Employee Health and Well-being
working group.
In 2021, our recordable illness rate per million hours
worked was 0.71. There were zero recordable fatalities
from illnesses, but we unfortunately recorded 20
irreversible illnesses.
Safety
We deeply regret that three people lost their lives while
working for us in 2021 (five in 2020). Two of these
people were our employees and one was employed by a
contractor. One fatal accident was a road traffic accident,
one occurred on a construction site and one occurred
during production operations.
All fatal accidents are investigated by an independent
investigation team to ensure we understand the root
causes. We take action to prevent recurrence and to share
the lessons learned across the company.
We had 13 serious injuries in 2021 (14 in 2020), while our
Group recordable injury rate (per million hours worked)
was 1.33, a 5% reduction compared with 2020. However,
our lower recordable injury rate in 2020 coincided with the
national lockdowns in response to COVID-19. Our 2019
recordable injury rate of 1.5 provides a more accurate
baseline against which to analyze our safety performance.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 55
Operating responsibly
Ethical
business
We continue working to
generate trust as an ethical
and sustainable business:
to inspire industry,
collaborate with our peers
and encourage consumers
to make changes that all
help in the shift toward
more regenerative food
systems. Trust in Nestlé is
fundamental to our culture
and to the value chain
evolution we are leading.
Background
Companies earn the trust of their stakeholders by operating
with high standards of business ethics. They maintain their
license to operate by complying with laws and regulations
in their jurisdictions.
We conduct business in an ethical and principle-based
manner, even in the absence of applicable regulatory
requirements. Our commitments to integrity, fairness and
authenticity are enshrined in our company’s purpose and
values, our Corporate Business Principles and our Code
of Business Conduct.
Nestlé values consumers’ and employees’ trust above all
else. We safeguard our reputation by behaving ethically
and handling data and technology systems responsibly
while demonstrating transparency.
SDG contributions
Nestlé Corporate
Business Principles
and Code of
Business Conduct
The Nestlé Corporate Business Principles are mandatory
for all Nestlé employees and are supported by our Code
of Business Conduct and other policies. We integrate
them into our business planning, activities, operations,
performance reviews and auditing. Where our own
principles and policies differ from local legislation the
higher standard applies. Our Compliance Program
supports the continuous development and implementation
of the Nestlé Corporate Business Principles based on
ethics, integrity and a ‘doing the right thing for the right
reason’ mindset.
The Nestlé Code of Business Conduct specifies certain
non-negotiable minimum standards in key areas of
employee behavior, including integrity, compliance with
laws, conflicts of interests, antitrust and fair dealing,
bribery, corruption (UNGC Principle 10), discrimination
and harassment, and accurate reporting and accounting.
Approach
Business ethics and compliance
Our comprehensive Compliance Program enables our
employees and managers to do the right thing for the
right reason, while protecting and strengthening Nestlé’s
reputation. It supports our work related to environmental
and social matters, and it is a condition for making Nestlé
a ‘force for good’.
Our CARE audit program is an important tool to monitor
internal compliance in our sites around the world. The
Danish Institute of Human Rights provided input on the
program. We take a coordinated, holistic and risk-based
approach to monitoring our conduct against regulatory
requirements, society’s expectations and Nestlé’s Code
of Conduct and Corporate Business Principles.
Managing data responsibly and ethically
Our commitment to protect personal data and privacy
is reflected in our mandatory Global Privacy Program,
Data Ethics Framework and Corporate Business Principles.
These enable Nestlé to meet the changing expectations
of stakeholders and to demonstrate our respect for
privacy and the protection of personal data. We strive to
be transparent with people about how we process their
data and to provide meaningful control over how personal
data are collected and used. We also avoid using data and
technology in ways that are unethical or could lead
to discrimination, exploitation or cause harm.
The Group Data Protection Officer reports to the Nestlé
Executive Board and relevant subcommittees, supported
by Data Protection compliance committees and Champions
in relevant functions, businesses and Nestlé markets.
Using technology to drive sustainable supply chains
As we build ever closer relationships and greater
transparency throughout our supply chains, technology
and data have a huge role to play. We manage vast
amounts of information on where our raw materials are
sourced from and use this to help drive supply chain
improvements and evaluate the responsible measures
applied at each stage. We also use data from satellite
monitoring to evaluate forest areas at risk, with the aim
to prevent deforestation before it happens.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 56
Operating responsibly | Ethical business
Our four Compliance Program Pillars
The execution of our Compliance Program is supported by
the continuous deployment and improvement of digital tools,
which provide effective and actionable monitoring and reporting.
In all areas: automation of systems and processes
1. Compliance
governance and culture
Our strong culture of business ethics is led and driven
by senior managment. We are determined to ensure
that our policies, standards and procedures, supported
by a robust governance system and processes, enable
Nestlé to conduct business in an ethical and principlesbased
manner, to fulfill our business requirements and
to meet societal evolution and expectations, all the
while reinforcing a Speak Up culture.
3. Monitoring and reporting
Our global CARE Audit program is an internal social
audit verification that aims to ensure that all our
employees and sites operated by Nestlé comply
with local legislation, our Corporate Business
Principles and our Code of Business Conduct.
External auditors assess compliance with our Corporate
Business Principles against seven pillars: conditions
of work and employment, business integrity, safety
and health, environmental sustainability, security,
local communities, and labor accommodation.
In addition, we have recently issued our evolved
Human Rights Framework and Roadmap that provides
a comprehensive framework to continue developing
our preventive measures to protect human rights
in our business relations with third parties.
2. Communication and
training: dissemination of
processes and tools
We run an annual communication campaign in order
to achieve the proper dissemination of ethics and
compliance guidance, as well as information on the
ongoing evolution of our compliance culture, principles
and values. Training materials and tools are continually
developed and implemented to support and monitor
this dissemination process.
4. Closing gaps
We execute continuous risk assessments in order
to define the priorities and focus areas of our
Compliance Program. We also ensure that ethical
discussions, consequence management and action
plans are duly executed.
Total cases substantiated through Speak Up
532
580
2020 2021
Total non-compliance concerns raised through
Speak Up
3305
2475
2020 2021
Total cases closed through Speak Up
2721
1944
2020 2021
Performance
Breakdown categories
for Speak Up messages
Messages
received
Messages
substantiated
Abuse of power and/or mobbing/bullying 567 188
Unfair treatment 386 97
Labor practice 373 77
Safety and health 156 29
Fraud (misappropriation or misconduct on
accounting/financial statement)
137 28
Harassment (excluding
sexual harassment)
108 37
Third-party compliance 94 17
Gifts, families and relatives,
conflicts of interest
91 8
Violation of laws/regulations 91 25
Violence and discrimination 78 19
Seeking compliance advice 63 10
Sexual harassment 59 22
Bribery and corruption 55 4
Confidential information, Privacy
Policy (data privacy, trade secrets,
intellectual property)
49 11
Human rights (child labor, forced labor
and modern slavery risks)
49 1
Environmental impact 43 3
Antitrust and fair dealing 33 1
MANCOM members related 17 2
Non compliance with WHO Code 11 1
Trade sanctions 10 0
Executive Board member/senior
managers in Switzerland
5 0
Non-compliance concerns raised
through Speak Up by category
New reporting channel Speak Up and case
management system
In April 2021, we launched our single global internal
and external reporting channel for non-compliance
concerns and questions – Speak Up.
Speak Up replaced our internal reporting system and
external Tell Us system and is independently operated by a
third party to ensure anonymity when requested. Speak Up
provides Nestlé employees and all other stakeholders with
a dedicated communication channel for reporting noncompliance
concerns. This new system provides us with
more transparency and better data. We completed
the launch and implementation of Speak Up in all markets
in 2021, with the exception of two that are being migrated
to the new system in 2022.
Every allegation is professionally and confidentially
handled. As a consequence of substantiated cases,
133 employees had to leave the company and six service
providers’ contracts were terminated.
With the launch of Speak Up, we have also introduced
a new Case Management System. This is an add-on
feature whereby all the cases reported on Speak Up are
recorded and managed by markets, enabling the anaylsis
of relevant anonymized KPIs and statistics on an ongoing
basis. With the Case Management System, we will have
more complete and accurate information and improved
capabilities to analyze data trends. This will provide us with
more meaningful information and support the development
of improvement plans.
To support the launch, we rolled out a comprehensive
communication campaign aimed at reinforcing our culture
of compliance and business ethics, and empowering
employees to use the new system to Speak Up.
Our Speak Up reporting system contributes
to our culture of trust and integrity.
100%
Percentage of operations
assessed for risks
related to corruption
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 57
Operating responsibly | Ethical business
Category 2020* 2021
CARE audits carried out 150 247
Locations covered by CARE audits 300 379
CARE audit improvement
opportunities identified
274 333
CARE audit gaps closed 253 161
Compliance and Corporate Business
Principles training
To help strengthen our compliance culture, we significantly
increased the number of global mandatory online training
sessions delivered to 1.2 million in 2021 (300 000 in 2020).
Much of the training is related to Nestlé’s Corporate
Business Principles. Employees are required to take
a certain number of compliance training sessions per
year, completing a set of 10 mandatory training sessions
approximately every three years. Several markets run
annual anti-corruption day campaigns. Corruption is also
covered in the Code of Business Conduct, supported
by global training in several languages.
CARE audits in 2021
The number of CARE audits increased in 2021 (247)
compared to 2020 (150). Our CARE reviews expanded
to include topics related to safety and health and conditions
of work and employment, such as labor accommodation
for on-site workers.
Monitoring and reporting
We added topics on our compliance reporting in 2021,
including results for our compliance self-assessment
tool, the number of completed mandatory trainings
and conflicts of interest. We also refined the data
collected and how it was shown, creating more
transparency for our geographical zones and markets.
Data ethics
We measure our performance on privacy and data ethics
against many internal metrics and comply with legal
requirements in each country where we operate.
In 2021, we continued to train employees on data ethics
and how to manage data legally and responsibly through
an iLearn module titled ‘Data Ethics at Nestlé’, as well as
through our Corporate Business Principles e-learning.
Through our advocacy program, we aim to be part of the
international conversation on the evolution of data privacy
and use our voice to promote best practice when possible.
Technology-driven transparency
Our work with partners to test and deploy technology in our
upstream supply chains continued in 2021. Technology can
support transparency by facilitating end-to-end traceability
and substantiating sustainability claims.
With our partner OpenSC, alongside farmers and suppliers
in the Democratic Republic of the Congo, we designed
a technology blueprint for end-to-end coffee traceability
using smart devices and QR codes. We also tested
methods to monitor and verify certain sustainability
aspects of our supply chains, such as farmer income,
through mobile money.
*Data for 2020 has been restated as some audit results were received after the 2020
CSV and Sustainability Report was published.
Outlook
In the next year, based on our evolved Human Rights
Framework and Roadmap, we will strengthen due diligence
and risk assessment of third parties. Our mandatory
compliance training and ongoing communication will
continue to help strengthen our ethical business culture.
Speak Up and the case management system will be rolled
out to the two final markets, Nestlé USA and Germany.
One of the most important areas for Nestlé to anticipate is
the impact of data and digitalization on human rights, and
the implications for individuals creating digital profiles and
sharing personal data. How Nestlé collects and uses data
must be closely regulated internally as well as being at all
times in compliance with local and international standards.
There is a clear trend for established data protection and
privacy laws to be strengthened and for countries without
regulations to create new laws. Nestlé aims to ensure
that our business stays up to date and compliant with
all applicable data protection regulations.
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 58
About this
report
This Creating Shared Value and
Sustainability Report 2021 provides an
update on our performance for each of
our material issues during the calendar
year ending 31 December 2021.
It aims to provide a full and balanced picture of Nestlé’s
material topics and related impacts. The report is aimed
at a broad audience including investors, non-governmental
organizations, environmental, social and governance
services, customers and suppliers.
We provide further information about our approach
and programs online at www.nestle.com/sustainability.
For investors, we also provide an overview of activity
related to our major material issues in our Annual Review
at www.nestle.com/investors.
Reporting scope, boundaries and methodology
This report covers our global operations and contains
data for wholly owned companies and subsidiaries that
are consolidated in the Nestlé S.A. financial statements,
excluding associates and joint ventures and suppliers
unless otherwise stated. Our environmental data refers
to factories and warehouses, except for acquisitions that
occurred after 31 December 2020. Our separate Reporting
Scope and Methodology for ESG KPIs document provides
definitions and methodologies for our selected EY assured
key performance indicators. All monetary amounts are in
Swiss francs (CHF), unless otherwise stated.
Our Annual Review provides an overview of our product
categories, operating segments and markets where
we operate, as well as any significant changes to our
operations in 2021. ‘Market’ refers to business operations
and/or activities at a national level, while ‘Zone’ refers
to a geographic group of markets.
Reporting frameworks
This report has been produced in accordance with the
Global Reporting Initiative (GRI) Standards (Core). We also
applied the Sustainability Accounting Standards Board
(SASB) Standard for the Processed Foods sector and World
Economic Forum Stakeholder Capitalism metrics. Our GRI
Content Index and SASB Index are available on our website.
Independent assurance
We engaged two third-party organizations to provide
independent assurance of the content of this report in 2021.
Bureau Veritas has provided independent assurance of
the accuracy, reliability and objectivity of the information
included in this report, and that it covers our material
issues. The assurance process was conducted in line
with the requirements of the AA1000 Assurance
Standard (AA1000AS v3) Type 2 at moderate level
of assurance. The full assurance statement with
Bureau Veritas’ independent opinion can be found
at www.nestle.com/assurance-statement.
In addition, in 2021, we engaged EY to provide independent
assurance on the selected key performance indicators
(KPIs) of high strategic importance included in our
performance summary. This assurance engagement was
performed in accordance with the International Standard
on Assurance Engagements (ISAE) 3000 to provide limited
assurance. We engaged EY to strengthen stakeholder
confidence in the data we report and in anticipation
of increased regulation of sustainability reporting and
assurance. Our Reporting Scope and Methodology
for ESG KPIs document provides details and definitions
of these selected KPIs and can be found at
www.nestle.com/esg-kpis.
The selected KPIs assured by EY are marked with the EY
logo. As part of this engagement, EY reviewed additional
indicators that are related to the selected KPIs. These are
marked with the tick symbol shown on the right. All other
data points are assured by Bureau Veritas.
We hope you find this report
interesting and informative.
Please share your feedback
and suggestions with us:
creatingsharedvalue@nestle.com
This report contains forward-looking statements
based upon current expectations and
assumptions regarding anticipated developments
and other factors. They are not historical facts,
nor are they guarantees of future performance
since they are subject to numerous assumptions,
risks, and uncertainties, which change over time.
Forward-looking statements speak only as of the
date they are made, and various factors could
cause actual performance to differ materially
from that expressed or implied by these forwardlooking
statements. Nestlé assumes no duty
to and does not undertake to update forwardlooking
statements.
EY assured. The EY limited assurance
report and conclusion can be found at
www.nestle.com/assurance-statement
EY reviewed for consistency.
Our Reporting Scope and Methodology
for ESG KPIs document provides
details and definitions and can be
found at www.nestle.com/esg-kpis
ADVANCING REGENERATIVE FOOD SYSTEMS AT SCALE CONTRIBUTING TO NUTRITIOUS AND SUSTAINABLE DIETS HELPING TO PROTECT, RENEW AND RESTORE NATURAL RESOURCES STRENGTHENING COMMUNITIES OPERATING RESPONSIBLY Creating Shared Value and Sustainability Report 2021 59