Creating Shared Value andSustainability Report 2023
Advancing regenerative food systems at scaleWelcome to the Nestlé Creating Shared Value andSustainability Report 2023.
Expert voices, case studies and data support detail on our approach andperformance, covering the topics most material to our business and stakeholders.
Read more about independent assurance of this report on page 71.

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Contents
2

Chairman and CEO message

3

Our business model and progressagainst commitments

4

Governance

53 Our diverse and inclusive culture5

Our material topics

57 Opportunities for young people

6

Stakeholder engagement

60 An employer of choice7

On the road to net zero

65 The foundations of ethical business

15 Restoring nature,protecting biodiversity

46 Supporting balanced
and sustainable diets
51 Food safety and quality

70 Community giving

18 Looking at the whole landscape

71 About this report

22 More regenerative practices on farms

72 Statutory Non-Financial Matter
Report Index (article 964b CO)

26 Water stewardship

76 Child labor reporting Index

31 Responsible sourcing

77 TCFD Index

35 Advancing human rights

79 Nestlé's 2023 Creating Shared Value andSustainability key performance indicators

41 Packaging and circularity

Table of contents

Leadership message

Investing inresilience forsustainablegrowthA message from our Chairman and CEO.
In a year of continued turbulence, our focus onaddressing societal challenges and generating
value for all our stakeholders only increased.
Consumers and customers, as well as thosethroughout our supply chain, depend on us andour products. To ensure that we can continue
to deliver in the long term, we are helping makethe production of food more regenerative andare supporting farmers and their communities.
Regenerative agriculture is at the heart of our
Net Zero Roadmap and we remain focusedon progressing toward our 2025 and 2030
greenhouse gas emissions targets. We areencouraged by the collaborative work with
farmers and suppliers to reduce our supply
chain emissions, particularly from dairy. Helping
growers and their families as they transition
to regenerative agricultural practices is vital inthis task.
Our work in coffee through the Nescafé Plan
2030 and the Nespresso AAA Sustainable
Quality™ Program continues to meet the

Nestlé CEO Mark Schneider (left) and Chairman Paul Bulcke (right) in Vevey, Switzerland.

demands of consumers for more sustainableproducts. These initiatives are also benefiting
communities, through increased productivity,
as well as helping to improve livelihoodsfor growers.
In cocoa, the income accelerator program will
now be expanded from Côte d’Ivoire to Ghana,allowing us to help close the living income gap
for a total of 30 000 cocoa-farming families.
We aim to reach an estimated 160 000 cocoafarming families in our global cocoa supply
chain by 2030 to create impact at scale.
2023 has been a significant year for nutrition at
Nestlé. We announced our intention to boost thesales of our more nutritious products by CHF 20
to 25 billion by 2030, and have stepped up ourwork to help guide people towards a balanced
diet. This includes strengthening our responsible
marketing practices, making the nutritional
value of our portfolio more transparent andproviding more information about balanced
diets via digital tools.
People are at the heart of our business. Our
employees’ health and well-being remain

fundamental to our success, and by the end of2023, we had embedded the Nestlé Roadmap
for Employee Health across all of our markets.
We also launched our Salient Issue Action Plans,
which will support human rights, both within
Nestlé and across our value chain for the years
to come.
As a global food and beverage company, weare committed to safety and quality. Last year,
we further enhanced the safety controls in
our factories, and are deploying new digitaltechnologies that help us to anticipate andprevent issues before they arise.
We do business in a way that creates value forall of our stakeholders. Our goal is to remain theGood food, Good life company that people candepend on.

Paul Bulcke

U. Mark Schneider

Chairman

Chief Executive Officer

Creating Shared Value and Sustainability Report 2023

2

Our business model andprogress against commitments
Nestlé’s business model is to deliver
exceptional products to our customers
while delivering sustainability and value.
Our diverse portfolio encompasses wellknown brands and innovative offerings,
allowing us to meet the ever-changing
demands of consumers.
As a global company, we are unwaveringin our dedication to growing our business,while focusing on environmental and social
responsibility. Nestlé’s resilient and flexible
business model empowers us to navigate
market challenges, seize opportunities andachieve sustainable growth. Please refer tothe 'Our business' section of this year’s Nestlé
Annual Review for more detail on this topic.

Categories and markets
We make and sell products in: Powdered andLiquid Beverages, PetCare, Nutrition and Health
Science, Prepared dishes and cooking aids,
Milk products and ice cream, Confectionery
and Water.
Our business operates in five zones: North
America (NA), Europe (EUR), Asia, Oceania
and Africa including Middle East (AOA), Latin
America (LATAM) and Greater China (GC).
Table of contents

About
Nestlé

270 000

Employees acrossall our operations

188

COMMITMENT

2021

2022

2023

–

–

13.58%

Primary supply chains for meat, palm oil,pulp and paper, soy and sugar assessed as
deforestation-free (%)

97.2%

99.1%

97.9%

Primary supply chains for cocoa and coffee+ meat, palm oil, pulp and paper, soy andsugar assessed as deforestation-free (%)––

93.4%2

Key ingredients sourced from farmers adopting
regenerative agricultural practices3 (%)

n/a

6.8%

15.2%

We aim to reduce water use in our factories by 6 million m3 between
2021 and 2023

Water use reduction in factories (million m3)

2.30

2.38

3.00

By 2030, we aim for 100% of key ingredient4 volumes to be
Responsibly Sourced 5

Key ingredients Responsibly Sourced (%)

16.3%

22%6

36.2%

We aim to reduce our greenhouse gas (GHG) emissions by 20% by 2025 and Net reduction of GHG emissions vs. 2018
50% by 2030 from 2018 levels, on the road to net zero by 2050 at the latest
baseline1 (%)

We aim to achieve and maintain 100% assessed deforestation-free primary
supply chains (for meat, palm oil, pulp and paper, soy and sugar) by 2022
and 2025 for cocoa and coffee

Countries we sell in

93.0
BillionGroup sales in CHF

KEY PERFORMANCE INDICATOR

2023 data for Key
Performance Indicators(KPIs) on this page are
EY assured.

By 2025, we aim for 20% of our key ingredients to be sourced from farmers
adopting regenerative agricultural practices, and 50% by 2030

Number of servings of affordable nutrition
with micronutrient fortification (MNF) (billions)

128.47

129.2

127.6

By 2025, we aim to design above 95% of our plastic packaging for recycling
and continue to work toward 100% being recyclable or reusable

Plastic packaging designed for recycling (%)

74.9%

81.9%

83.5%

By 2025, we aim to reduce virgin plastics by one third, versus our2018 baseline

Virgin plastic reduction versus 2018baseline (%)

8.1%

10.5%

14.9%

By 2030, our ambition is to help 10 million young people around the world
have access to economic opportunities

Millions of young people around the world
with access to economic opportunities
since 2017Management positions held by women (%)

3.8

–

5.6

–

7.78

46.4%9The EY limited assurance
report and conclusion can befound at www.nestle.com/
assurance-statement.

Our Reporting Scope andMethodology for ESG Key
Performance Indicators document
provides details and definitions.
It can be found here.

1. Covers emissions related to our net zero commitment.
Net reductions (%) of GHG emissions vs. 2018 baseline.
Includes removals from inside our value chains andsourcing landscapes. Previously absolute amount of
reductions and removals vs. Business As Usual wasused as the indicator. Therefore data are not comparable
between years.
2. Cocoa and coffee only included in 2023.
3. In 2023, the following ingredients are included in the
numerator: dairy (fresh milk and dairy derivatives), coffee(excluding blended green coffee and blue bottle), cocoa,
cereals and grains, soy and vegetables. The denominator
includes all raw materials in scope: coffee, cocoa, dairy,sugar, cereals and grains, meat, poultry and eggs, palmoil, soy, vegetables, fish and seafood.
4. 'Key ingredients' refers to 14 key agricultural raw materials
that cover 95% of our annual sourcing by volume: cereals
and grains; cocoa; coconut; coffee; dairy; fish andseafood; hazelnuts; meat, poultry and eggs; palm oil; pulp
and paper; soy; spices; sugar; and vegetables.
5. Name of commitment has changed in 2023. Please referto page 32 for more information.
6. Change in definition means only 2022 year-on-year data
are comparable with 2023 performance.
7. Number corrected to adjust for some products thatwere reclassified.
8. KPI methodology was updated in 2023 to account for
YOUth Entrepreneurship Platform data.
9. The definition of this KPI changed in the current year from'women in the top 200+ senior executive positions (%)'.

Informed by the materiality assessment conducted for our business model (see page 5), the table above summarizes the strategies for the identified material
topics and the leading key performance indicators that show the effectiveness of the measures behind those strategies.
The full set of sustainability key performance indicators is listed on pages 79–89.

Our business model and progress against commitments

Creating Shared Value and Sustainability Report 2023

3

GovernanceOur governance and implementation structureSound governance is essential
to create shared value, meet
our environmental andsocial commitments andfulfill our due diligence andreporting obligations.
Nestlé’s ESG & Sustainability Strategy
is key to our decision-making. To
ensure we meet our aim of longterm, sustainable value creation, thestrategy is developed and deliveredby our Executive Board and isapproved and regularly reviewed
by the Board of Directors and its
Sustainability Committee. The
Sustainability Committee Charter canbe viewed here.
The Board of Directors approved
the 2023 Nestlé Creating Shared
Value and Sustainability Report to beissued on February 22, 2024, subject
to approval at the Annual General
Meeting on April 18, 2024.
Executive Board remuneration islinked to ESG indicators. In 2021,
we introduced ESG-related key
performance indicators (KPIs) to
the Short-Term Incentive Plan for
15% of its grant value. In 2023, they
relate to affordable nutrition with

Table of contents

Governancemicronutrients, the reduction ofgreenhouse gas (GHG) emissions,plastic packaging designed forrecycling, the reduction of water
use in factories, and management
positions held by women. Also in
2023, an ESG-related KPI was added
as a fourth performance metric in
the Long-Term Incentive Plan for
20% of its grant value. It relates tothe reduction of GHG emissions. Fulldetails of Board-level remuneration
and bonuses are available in ourCompensation Report.
The ESG & Sustainability Council
provides strategic leadership anddrives the implementation of Nestlé’s
ESG & Sustainability Strategy. The
Council is chaired by our Executive
Vice President (EVP), Head of Strategic
Business Units and Marketing andSales. The Council addresses thefollowing topics: 2050 net zero,
Sustainable Packaging, Water,
Responsible Sourcing, Upstream
Human Rights, Communications,
Advocacy, and Systems and Reporting.
The Council meets every month andregularly reports to the full Executive
Board. The structure helps toaccelerate and standardize decisionmaking on a global level.

During 2023, the Council met
12 times. There was a particularfocus on how the Nestlé brands weredelivering on the ESG & Sustainability
Strategy and valorizing it throughbrand communication. The Council
also oversaw the implementationof the new reporting obligations,
including Swiss Non-Financial
Reporting Obligations (articles 964a
to 964c and articles 964j to 964l of
the Swiss Code of Obligations) which
require specific disclosures on ESG
risks, policies, mitigation measuresand outcomes, summarized in the
appendix of this report.
We monitor our ESG & Sustainability
Strategy performance KPIs using aninternal dashboard. For the full listof KPIs, see pages 79 to 89 in the
appendix of this report.
Performance data are generated
every quarter and progress isreviewed by the ESG & Sustainability
Council. For full details of ourgovernance structure, see our latest
Corporate Governance Report.

BOARD OF DIRECTORSBOARD COMMITTEESThe Board is responsible for the Company’s strategy andorganization and provides oversight over its financial
and non-financial performance and reporting. The Board
approves the Company's ESG & Sustainability Strategy
and approves its CSV and Sustainability Report for
submission to the Annual General Meeting.

Sustainability
Committee (SC)The SC has oversight overthe structure and content
of the Company’s ESG &Sustainability reporting andvalidates that the overall
approach is in line with theCompany’s strategy.

Audit
Committee (AC)The AC has oversightover the accuracy of theCompany’s financial and
ESG & Sustainability
reporting.

EXECUTIVE BOARD
The Company’s Executive Board is responsible forthe execution of the Company’s ESG & Sustainability
Strategy, which includes ensuring compliance withmandatory reporting obligations.

CREATING SHARED VALUE (CSV) COUNCILThe CSV Council is an external advisory bodythat advises senior management on a range ofsustainability issues.

ESG & SUSTAINABILITY COUNCIL
The ESG & Sustainability Council provides strategic
leadership and execution support, and drives theimplementation of Nestlé’s ESG & Sustainability
Strategy, including our 2050 Net Zero Roadmap,
ensuring focus and alignment.
Scope:– 2050 net zero
– Sustainable Packaging– Water– Responsible Sourcing– Upstream Human Rights– Communications– Advocacy– Systems and ReportingKey:
Approves
Reports
AdvisesCreating Shared Value and Sustainability Report 2023

4

Our material topics

Major

Evaluating our material topics

Table of contents

In 2023, we updated our materiality
matrix to focus on ESG topics only, inline with the contents of this report.
We summarize the related risks andopportunities for stakeholders andthe environment.
Other non-ESG related topics ofparticular stakeholder interest are
addressed in the Nestlé Annual
Review. These include customer
satisfaction, systematic andcritical risk management of thelegal and regulatory environment,changing consumption patterns,
business models and innovationand technology, cybersecurity
and information security, andorganizational set-up and efficiency.

Our material topics

There is also a detailed supplierrisk and due diligence program,conducted by the Global Procurement
function. If required, cases relating
to our risk assessment processes
are escalated to the Executive Boardand related findings are reflected
in decision-making processes at an
operational and strategic level.
Further information on businessrisks related to our different material
topics is included in the 2023 Nestlé
Annual Review, under Principal Risks
and Uncertainties.

Significant

17

4

Ecological impacts

3

GHG emissions

10

Health & nutrition

6

Environmental & social
impacts of ingredientsupply chain

Governance

Product quality & safety

On the road to net zero

2

3

Restoring nature,protecting biodiversity

2

3

Looking at thewhole landscape

413

Employee health& safety2Physical impacts ofclimate change

11

Access & affordability

12

Product labeling &marketing

14

Circular economy

8

Human rights &labor practices

18

Employee acquisition,
talent management& retention

16

Employee engagement,
diversity & inclusion

15

Packaging lifecycle
management

1

Stakeholder engagement

2

3

9

More regenerative
practices on farms

2

3

Water stewardship45

Responsible sourcing

67Advancing human rights

6

7

Animal welfare

19

Business ethics

9

Community relations

1

Negligible

Supporting balanced
and sustainable diets

Governance structures& mechanisms

Moderate

20 Data privacy

management

Significant

10

11

Food safety and quality

13

Our diverse andinclusive culture

16

Opportunities
for young people

18

4

4

Packaging and circularity 14
Moderate

We regularly conduct a materiality
assessment to identify whereNestlé's business model has thegreatest impact on society and theenvironment, and which impacts
are most important to our businesssuccess. The assessment helps toprioritize actions that maximize value
creation for shareholders and cultivate
positive societal and environmental
impacts. Although our priorities may
not change greatly from year to year,
we evaluate each topic to inform
strategic decision-making.

In addition to the materiality
assessment, a risk assessment at
Group level is conducted annually.
ESG & Sustainability topics are built
into our Enterprise Risk Management
process. This helps to ensure thatthe full range of material topics
is incorporated into the risks andopportunities that are considered
across the Company. Risks relating
to the environmental and social
impacts of the supply chain, including
exposure to human rights risks, arereviewed at Group management level.

Negligible

Materiality’s value

Our due diligence approach included
working with an independent third
party to conduct desk researchand interviews with 55 internaland external stakeholders. The
results, published in last year’s
Nestlé Creating Shared Value andSustainability Report, informed how
we managed the business in 2023.

Water management

Managing risks

Impact of Nestlé on people and the environment

Nestlé employs a comprehensive Our approach
Overseen by the ESG & Sustainability
and systematic approach toCouncil, we update our materiality
identify its most material topics
assessment every two years. The lastassessment was conducted in 2022.
in ESG & Sustainability.

5

Report chapters
covering topics

An employer of choice16

The foundationsof ethical business

19

20

Community giving

9

17

8
15

12

18

Major

Importance and impact on Nestlé’s business success

Our materiality process
Material
topics selection

Establish
external context

Stakeholder
engagement

Materiality
assessment​

Review
strategies

Publish in
CSV andSustainability
ReportSustainability
Accounting Standards
Board (SASB) aligned
material topics selected

AI software analysis andanalysis of environment

55 interviews conducted
and surveys collected

Quantitativeand qualitative
input assessed

Identify risks andopportunities inresults and adjust
priorities accordingly

Share results internallyand externally

Creating Shared Value and Sustainability Report 2023

5

Stakeholder
engagement

2023 stakeholders and activity examples

In a fast-evolving global context,
we exchange relevant ESG
information and communicate
announcements with a broad
range of stakeholders, across awide range of channels:

Regular interactions with our many
stakeholders help us perform better as
a company.

Consumers: social media, brandcampaigns, transparent information.

To assess our impacts on the identified
ESG material topics, we engage with our
stakeholders at a local, regional, national
and international level. We apply the Nestlé
Corporate Business Principle of ‘transparent
interaction and communication’ in every
engagement. This approach encourages
collaboration, knowledge sharing, open
discussion and deep dialogue. We run projects,
release publications and host campaigns andevents that we believe will help address any
risks related to the material topics and advanceregenerative food systems at scale.
Throughout the year, we consult regularly
with our Creating Shared Value (CSV) Council,
an advisory group established in 2009. The
CSV Council’s agenda is defined by Nestlé’scommitments and activities to advanceregenerative food systems. This includes, but is
not limited to, issues that impact the business
related to climate, nature (forests, land andagriculture), packaging, circular economy, water,human rights, nutrition and social matters.
The topics in 2023 included progress on our
approach to nutrition, the implementation of ourclimate roadmap and water management.

Table of contents

Stakeholder engagement

Customers: regular meetings,
communications, topical events.
Investors and analysts: meetings,
investor days, analyst calls.
Industry associations: regular
engagements across ESG topics.
Farmers, local
communities andyoung people areamong our key
stakeholders.

During 2023, we also engaged with our
stakeholders to demonstrate progress on key
items related to:– Coffee: Nescafé Plan 2030 Progress Report,
Nespresso The 2030 Positive Cup Strategy
and Nespresso The Positive Cup 2022
Progress Report.
– Cocoa: Nestlé Cocoa Plan Income Accelerator
Progress Report, Towards Forest Positive
Cocoa Annual Progress Report 2023, Nestlé
Cocoa Plan Annual Progress Report 2022.
– Nutrition: Good for You strategy.

Governments, internationalorganizations, NGOs: discussions,
events, conferences.
Global partnerships: joint initiatives
on key topics, hosting of events.
Suppliers: programs, guidance,collaborative roadmaps, support.
Academia and science: symposia,
collaboration with institutions.
Farmers, youth, communities:
grower programs for commodities.
Ratings:– #1 on Nature, World
Benchmarking Alliance.
– #2 on Food and Agriculture, World
Benchmarking Alliance.
– FTSE4Good: 4.4.

2023 engagements included:
Climate:Global partnerships:– Published the Nestlé Climate Advocacy
Industry Associations Review.
– Provided ongoing support to theInternational Chamber of Commerce,
Business for Nature and the World BusinessCouncil for Sustainable Development incalling for strong action by policymakers tosafeguard natural resources.
– Supported efforts to place food systems
at the heart of climate action, backing the
COP28 Action Agenda on Regenerative
Landscapes and the Emirates Declaration
on Resilient Food Systems, Sustainable
Agriculture and Climate Action.
– Partnered with key suppliers to commit toclimate change mitigation.
– Shared guidance on regenerative agriculture
techniques such as improved grazing
patterns and tree planting.

Social:– Established a new UNESCO partnership foryouth projects.
– Grew the Nestlé Cocoa Plan income
accelerator program to reach 10 000 cocoa
farming families.
– Launched Salient Issue Action Plans for
Human Rights.
– Nestlé Youth delegation attended theWorld Food Forum to showcase workon innovation.
– Implemented the Nescafé Plan 2030,
continued to offer farmers close agronomy
support and worked directly with them on
various pilot projects.

Transparency:– Engaged with the investment community
through our Annual General Meeting andregular investor meetings and analyst calls.
– Held five in-person Chairman’s roundtables
and engaged with investors throughout
the year.
– Published the 2022 CSV and
Sustainability Report.

– Refocused our partnership with IFRC, witha five-year strategic partnership for theDisaster Response Emergency Fund.
– Renewed our annual partnership with World
Central Kitchen.
– Established a new UNESCO partnershipto support young people to contribute totheir communities.
– Nestlé and The Global FoodBanking Network
signed a Memorandum of Understanding towork on the goal of reducing global food loss
and waste while working to eliminate hunger
in communities around the world.

Nutrition:– Publication of Good for You, our new
Nutrition Strategy.
– Committee on World Food Security:Three presentations as well as discussions
with governments and key stakeholders toadvance our advocacy priorities.
– Participated in the UN Food Systems
Summit+2 Stocktaking Moment.

Packaging:– Co-chaired the Business Coalition for a
Global Plastics Treaty.
– Developed the Fair Circularity Initiative withthe private sector and non-governmentalorganizations, ensuring regulatory complianceand topical thought leadership on humanrights issues across the full packaging
lifecycle, mitigating reputational risk.
– Hosted '3 Horizons' facilitator training with50 key stakeholders and Nestlé employees
to advance collective thinking on waste
management and packaging system futures.
– Continued partnerships with customers andstartups such as Circulation in Germany tobuild new scalable systems across reuse
and refill.

Creating Shared Value and Sustainability Report 2023

6

On the roadto net zero

To track our progress, we put in place the following KPIs:
Nestlé GHG emissions*, GHG removals and % net reduction vs. 2018 baseline(million tonnes of CO2e)100

90

Peak carbon

91.17**

13.58%

79.55

2018 baseline

GHG emissions*

80

78.79

0.76

Net GHG emissions
vs. 2018 baseline***GHG removals

Net GHG
emissions**

70

Net Zero
Roadmap
launched

60

50
2018

2019

2020

2021

2022

2023

* Includes Scopes 1, 2 and 3 covered by the Net Zero Roadmap.
** Restated baseline due to acquisitions, divestitures and methodological enhancements.
*** Net reduction (in %) includes GHG reductions and GHG removals from projects within our value chain and our sourcing landscapes.

2023 absolute CO2e reductions and removals from our interventions

Sustainable
Development Goals(SDG) contributions(million tonnes)

Removals 6%

Responsible Sourcing 28%

Recipe reformulation 6%
Logistics 4%
Packaging 7%

Our science-based approachto net zero is designed tomitigate emissions across ourvalue chain and help address
impacts on natural ecosystems,
communities and food systems.
Table of contents

13.29

At the end of 2023, we:– Achieved a reduction in emissions of 12.75% vs. 2018 baseline. With
removals, a 13.58% net reduction vs. 2018.
– Are more than halfway to our 2025 Net Zero Roadmap target of 20%
absolute emissions reductions against a 2018 baseline.
– Identified over 80% of the supply chain initiatives needed to hit
this objective.
– Are planning further GHG emissions reductions to reach a 50% cut in
absolute terms across our net zero scope by 2030.

On the road to net zero

million tonnes

Manufacturing 15%

Sourcing – Soil & Forest 9%

Sourcing – Dairy & Livestock 25%

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions and can be found here.

Creating Shared Value and Sustainability Report 2023

7

Total Scope 1, 2 and 3 GHG emissions

Approach(million tonnes of CO₂e)103.58*97.80*

98.75

93.79

87.54

In 2020, we published the Nestlé Net Zero
Roadmap (see the latest report here) to set out
how we plan to meet our net zero commitment
by 2050. Guided by the Roadmap, we have beentransforming our business to deliver reductionsin GHG emissions across all three Scopes of ouractivities, according to the criteria approved by
the Science Based Targets initiative (SBTi).

2018 baseline:
In scope for Net
Zero Roadmap
84.08

79.55**
93.29**

1.44
2021

3.38

million tonnes

88.42**

0.74
2022

3.27

0.31
2023

Scope 1 (emitted directly)
Scope 2 (emitted indirectly market-based)
Scope 3 (in scope for Net Zero Roadmap)
Scope 3 (not in scope for Net Zero Roadmap)* Restated due to acquisitions, divestitures, emissions factor restatements and adjusted scope.

3.16

67% Sourcing our ingredientsand finished goods
5% Manufacturing our products
12% Packaging our products
7% Managing logistics
9% Overheads and others** Footprint in scope for Net Zero.

Renewable electricity at our manufacturing
sites at year end (%), with a target of 100% by 2025
91.9% in 2023

As indicated in the graphs above, 90% of
Nestlé total emissions (87.54 million tonnes)
are in scope of Net Zero (79.55 million tonnes).
We are following SBTi guidelines, restating
our 2018 baseline and excluding thefollowing Scope 3 emissions from our net
zero commitment: direct use-phase of soldproducts, purchased services, leased assets,
capital goods and investments, totaling
7.99 million tonnes CO2e.

78.4% in 2022
63.7% in 2021

91.9%
in 2023

As per GHG Protocol guidance, the reportingof the emissions related to the indirect usephase of our sold products is optional andshould be disclosed separately from Scopes 1,
2 and 3 reporting. For Nestlé this represented
8.8 million tonnes CO2e in 2023.

Our Reporting Scope and Methodology for ESG Key
Performance Indicators document provides details anddefinitions and can be found here.

Table of contents

On the road to net zeroA detailed analysis of our GHG emissions,carried out when setting our 2018 baseline,
showed that nearly 95% of our footprint wasmade up of Scope 3 emissions in our supply
chain, such as from farming and land use. Dairy
ingredients are our largest single source ofemissions, accounting for 24% of our total.

Nestlé initiatives,
such as the
Nescafé Plan,
place farmers
at the center,
providingtechnical support.

Context
In 2023, the impacts of climate change
continued to affect more people and ecosystems
around the world, notably through extreme
weather events. Each business has to play its
part to mitigate risks for people and the planet.
Nestlé accelerated performance during 2023,
achieving a 13.58% GHG emissions reduction
relative to the 2018 baseline**. Climate change
is considered to bring material risks andopportunities for Nestlé. We use the Task Forceon Climate-Related Financial Disclosures (TCFD)
methodology to assess and disclose our climate
risks and opportunities. These are covered inthis chapter and summarized in the appendix of
this report. For more on business risks, pleaserefer to the 2023 Nestlé Annual Review.

** Removals from landscape projects (86 950 tonnes CO2e) are currently
included pending the release of the SBTi guidance on neutralization.

To tackle our Scope 3 emissions we havedeveloped the Nestlé Forest Positive Strategy
and the Nestlé Agriculture Framework. We also
reduce the carbon emissions associated with our
logistics activities and continue to collaborate
with suppliers, farmers and communities toincrease the use of regenerative agricultural
practices. We are delivering Nestlé’s Net Zero
Roadmap through emissions reductions andin-value chain removals. We do not use offsets/
voluntary market credits to deliver against our
SBTi-approved targets.
Just 5% of our baseline emissions were Scopes
1 and 2, from our own operations. For these, ourprimary strategy is to reduce GHG emissions
by increasing energy efficiency and also bytransitioning to renewable energy sources.
Nestlé has approved near- and long-termscience-based emissions reduction targets
with the SBTi. The SBTi has validated Nestlé’s
net zero science-based target by 2050. Thesetargets include our specific Forest, Land andAgriculture (FLAG) sector objectives for 2030
and 2050.

Creating Shared Value and Sustainability Report 2023

8

Task Force on Climate-Related
Financial Disclosures (TCFD)
Climate-related risks are treated the same
way as other risks at Nestlé and fully
embedded in our holistic Enterprise Risk
Management (ERM) Framework.

Climate change impacts
affect all aspects of ourvalue chain and thecomplex ecosystems where
we source from.

The ERM Framework supports the identification
and assessment of the Group’s principal risks. We
consider both qualitative and quantitative factors,
including those with a potential impact on our
strategy, business model and product categories.

More information on our ERM approach isreported in ‘Information and control instruments
vis-à-vis the Executive Board’ in our Corporate
Governance Report.
In 2023, we continued to strengthen our
approach and tools, conducting high-levelassessments for product categories and indepth scenario analyses across our value chain.
The outcomes are incorporated into the Group’s
strategic planning:– Top-down climate assessments are formallyincorporated into the annual strategic
portfolio reviews for Strategic Business Units
and Globally Managed Businesses. Each
unit considers how climate-related risks
may affect its strategy and future businessprojections. The assessments consider risks
at an individual zone level and aggregatedglobal level.
– Bottom-up scenario analyses are conductedacross our value chain to assess the resilienceof the Group’s strategy under different
climate scenarios. We worked with thirdparty experts Risilience and their academic
partner the Centre for Risk Studies at the
University of Cambridge Judge Business
School to model transition and physical risks,
together with potential directional impacts on
future cash flows. The relevant operational
teams, including procurement, agriculture
and business continuity management,
review the most significant climate-relatedrisks, develop mitigation strategies andidentify opportunities.
– Our properties, plants and equipment are
geographically widespread and therefore are
not materially exposed to climate transition
risks nor to climate physical risks.

TCFD transition risks
In the context of a transition to a low-carbon
economy, over the next 10 years transition risks
will be affected by changes in policy, including
potentially on carbon pricing and taxes, andbusinesses' license to operate. Consumer
behaviors and sustainable preferences, together
with new technology, including improvements
to GHG performance, could also play a role. The
risks are analyzed against low-, intermediateand high-emissions pathways and these canvary significantly depending on the nature andspeed at which jurisdictions act to align to a
Paris Agreement trajectory.

Outcomes of transition risk modeling
Depending on the global actions taken toaddress climate change, in the short-tomedium term we estimate that transition risks
will become material to our business.
The outcomes of our assessments wereconsidered in the Group’s annual enterpriserisk assessment and the annual impairment
review. For the latter, we considered how climate
risks may impact business forecasts prepared
for testing our goodwill and indefinite life
intangible assets (see note 9 of the Nestlé Group
Consolidated Financial Statement).

Transition risk modelingTime horizon
Scenarios*

10-year horizon
Emissionstrajectory

High

Intermediate

Low

Temperature
increase by 2100

+4.0°C to +5.0°C+2.0°C to +3.0°C+1.5°C

Globalaction against
climate change

Few or no steps taken to
limit emissions

Reliance on existing/planned
policies (not commitments)

Immediate and coordinated action
to curb emissions

Business scope

Upstream, direct operations and downstream.

Modeling simulations

Net zero – Nestlé’s 20% absolute emissions decrease by2025 and 50% by 2030.

Modeling metric

Directional cumulative 10-year discounted cash flow (DCF) impacts on net zero business model under thethree different scenarios.

Risk categories

Policy risks
Actions to limit climate emissions include carbon tax, regulations linked to land and water use, restrictions
and/or bans on specific materials, enhanced emissions-reporting obligations, etc. The scenario analysis
modeled carbon tax as a proxy for policy risks.
Technology risks
Costs related to decarbonization of the value chain, including replacement and substitution of emissionintensive assets, materials and services. The scenario analysis modeled the share of energy fromrenewables as a proxy for technology risks.
Market risks
Shifts in supply and demand as consumers switch to more sustainable products, or shun specificcategories, brands or materials due to environmental credentials. The scenario analysis modeled the
proportion of consumers adopting more sustainable choices as a proxy for market risks.

* Scenarios were based on existing published scenarios, including the Intergovernmental Panel on Climate Change (IPCC) Socioeconomic Pathways and the International Energy Agency (IEA)
World Energy Outlook scenarios.

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Creating Shared Value and Sustainability Report 2023

9

Transition risk impacts, mitigations and future opportunities

Impacts underclimate trajectory*

Estimated directional
cumulative 10-year
discounted cash flow
impacts with our current
mitigation strategy

Value chain
Risk
category

Impacts assuming no
mitigation

Intermediateemissions+2.0°C – +3.0°C

Low emissions+1.5°C

Policy– Increase in raw
materials costs.
– Restrictions toland use.
– Increase inenergy costs.

Med

High

Operations
Rawmaterials

Mitigation strategy under
our Net Zero Roadmap

Futureopportunities– Switch to 100% renewable electricity by 2025; 91.9% in our
manufacturing sites achieved in 2023.
– Through our broader regenerative agriculture program,support farmers in:– Implementing agroforestry.
– Increasing productivity without increasing land use.
– Enhancing resilience to changing weather patterns.

By implementing our Net Zero Roadmap, weare already addressing a significant part of
the transition risks identified that we could
potentially face during this decade, resulting ina net reduction of our exposure.

– Aim for 20% of our key ingredients to be sourced fromfarmers adopting regenerative agricultural practices by2025 and 50% by 2030; 15.2% achieved in 2023.
– Prioritize deployment of climate-smart agriculture
practices in highly exposed geographies.
– Diversify sourcing origins from highly
exposed geographies.
– Product ingredient substitution: by 2030, plant-based
proteins are anticipated to contribute 0.74 million tonnes
CO2e to our GHG emissions reduction target.

MarketPackaging– Increase in costs for
packaging materials.
– Increase in cost ofrecycled packaging
materials due
to constraint insupplies, e.g.
recycled PET.

Brands andportfolio– Loss of revenue and/ Low
or missed growth
opportunities.

Med– Constant review of products and business models basedon their environmental footprint.
– 100% of R&D-led projects are assessed for potential
climate impact.

Low

Low

– Switch to low-emission technologies.

Technology Operations– Asset write-downs,
investments in
low-emission
technology to meetmarket regulation.

– Virgin plastic reduction by one-third by 2025; 14.9%
reduction achieved in 2023.
– Cross-industry collaboration to drive collection andmanagement of packaging at scale; currently active in
46 of our markets.

* We do not display the high-level emissions scenario due to its low impact level. Table format has been amended toremove an unintended row separation.

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On the road to net zero

We continue to review opportunities to reduce
our risk exposure levels further and address
upside potential of the societal transition to a
low-carbon economy.
On this basis we anticipate the following
opportunities:– Increasing the resilience of our supply chain
through climate-smart agricultural practices.
– Reducing direct costs from lower-emissions
sources of energy.
– Limiting exposure to regulatory changes andincreased operational costs due to carbon
prices via reductions in our emissions.
– Increasing revenues resulting from moredemand for low-emission products
and services.
– Growing consumer demand for low‑carbon
products such as plant-based foods
and drinks.
– Continually upgrading our plant-based
offerings in terms of taste, texture, flavor
and nutrition.
– Leveraging our expertise in plant proteins to
expand our dairy-alternative offerings.
– Constantly assessing opportunities
to reduce our products’ footprint,
through changing recipes and by using
alternative ingredients.

CHF 7 bn < High < CHF 11 bn|

CHF 3 bn < Med < CHF 7 bn|

Low < CHF 3 bn

Checking plant growthat the Nestlé Institute ofAgricultural Sciences.

Creating Shared Value and Sustainability Report 2023

10

TCFD physical risks
We have modeled physical risk based on anintermediate scenario, in which climate-relatedrisks such as heatwaves, drought and water
stress may be more frequent and severe. We
have modeled these risks and in 2023 madethe following updates:– Our modeling partner Risilience hasreflected the physical science released in
the AR6 Climate Change 2021: The PhysicalScience Basis — IPCC. This included
incorporating results based on Coupled Model
Intercomparison Projects 6 (CIMP6).
– Included the latest sourcing data for the year,
fine-tuning the origins of commodities toreflect our business.
– Modeled yield changes for 12 commodities,
representing approximately 90% of our total
spend. We included sourcing locations andvolumes and considered their vulnerability to
climate change.
We estimated the yield change in 2040 versus
today in a ‘steady state’, discounting theunpredictable impacts of extreme events. We
included the locations where we source fromand how the temperature and precipitation
changes at those locations might deviate
from ideal growing conditions for each of thecommodities in scope for 2023.
Physical risk modelingTime horizon

2040

Warming scenario

Intermediate (+2 to 3 °C by 2100)

Footprint scope*

12 key raw materials**

Modeling
simulations

Assumed current footprint remains static until 2040

Modeling metric

Projected percentage change in crop yields in 2040
compared to 2022 for selected raw materials* Scope includes only Nestlé’s current sourcing footprint.
** The raw materials are arabica coffee, robusta coffee, palm oil, cocoa, dairy,barley, maize, rice, soy, wheat, sugarcane and sugar beet.

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On the road to net zeroInternal viewpoint

Impact of climate and physical risks on Nestlé’s key ingredient yields by 2040
Modeled yield changes by 2040 vs. 2022

FRANCEUK+2% increase or more
-2% decrease to +2% increase-2% decrease or more

GERMANY

CHINA

ITALY

INGREDIENTSSPAINARABICAROBUSTAUS

Anna Camilla Nader Nieto
Research Specialist, Coffee Breeder,
Nestlé Institute of Agricultural Sciences

PALM OILHONDURASCOCOA

BARLEYBRAZILMEXICOWHEAT

INDONESIAECUADORRICE
SOY

VIETNAMCOLOMBIA

DAIRY

MAIZE

Researchingresilientcoffee plants

GHANA

PAKISTAN

INDIA

CÔTE
D’IVOIRE

SOUTH AFRICATHAILAND

There are more than one billion coffee drinkers in theworld, a number that’s growing. Meanwhile, some coffee
plantations are increasingly affected by drought anddisease because of climate change.

CHILE
ARGENTINA

MALAYSIASUGARCANESUGARBEET

Physical risk impacts, mitigations
and opportunities
These initial results confirm that, driven bychanges in growing conditions, we are likely tosee some yield changes, up or down, and shifts
across sourcing origins by 2040.
Mitigating actions
Some of the key risks on yield will be driven
by increasingly frequent and extreme weather
events, which are likely to have more impact
than average warming rises. The resilienceof farmers and communities will be key. Our
regenerative agriculture program is designed toenhance farm resilience and, with that, mitigate
climate risk for our key ingredients.

Future opportunities
We believe that the Group continues todemonstrate the resilience and agility totransition to a lower-carbon model. We will
create new growth opportunities as part ofour ambition to help deliver regenerative foodsystems at scale, for instance, by exploringnew sourcing origins. This is due to our broad
geographic scope, supply chain flexibility,
research and development, diversified productportfolio, leading brands and capital strength.

AUSTRALIA

Our work at the Nestlé Institute of Agricultural Sciences
is central to our ability to help ensure that the coffee
farmers we work with can continue to have crops to plant.
Since 2010, Nestlé has distributed more than 290 million
improved coffee plantlets through the Nescafé Plan.
Using technologies in the fields of genomics, phenomics
and artificial intelligence, we develop new coffee
varieties using traditional plant breeding methods. Our
newest varieties are being tested and deployed in key
coffee‑growing countries.
Great examples are Roubi 1 and Roubi 2, two newvarieties of robusta coffee. These can deliver up to 50%
higher yields compared with standard varieties andhave been distributed to growers in Central America.
Because the coffee can be produced using the sameamount of land, fertilizer and energy, the result is an up
to 30% reduction in the carbon footprint of the green
coffee beans.
Beyond the development of superior coffee varieties,
Nestlé also invests in the identification of regenerative
agricultural practices for coffee production that seek tohave a measurably positive impact on farmers' livelihoods
and the environment.
Creating Shared Value and Sustainability Report 2023

11Performance
In 2023, Scope 1, 2 and 3 emissions included in
our Net Zero Roadmap reduced by 12.75% fromour 2018 baseline level. When we also consider
our removals, this is a 13.58% net reduction
versus 2018. The 2023 reduction benefited fromthe introduction of sourcing projects initiated in
2021 or 2022, which are now reaching maturity.
A range of initiatives is keeping us on track todeliver a 20% net reduction of GHG emissions
versus the 2018 baseline by 2025, in accordancewith our net zero plan.
Tracking the evolution of our GHG footprint
with a percentage GHG emissions reduction
versus a 2018 baseline enables us to confirm
the effectiveness of our operational climate
actions and to assess our progress toward ournet zero target by 2050. It also demonstrates
the tangible improvements we have madeto mitigate climate change since the launchof our Net Zero Roadmap in 2020. Tools andmethods used to track and visualize the KPI areenhanced year on year following a continuous
improvement approach.
We are also reporting according to the recently
finalized Science Based Targets initiative (SBTi)
Forest, Land and Agriculture (FLAG) sector
guidance. For the 2023 reporting year, we began
to categorize the GHG emissions, for ingredients
only for now, by specific gas types. We arealso differentiating between FLAG and energy/
industry (non-FLAG) emissions, in accordancewith SBTi guidelines. Ingredients are the mostsignificant category of our emissions and wheremost FLAG emissions occur. We will continue
to try to secure reductions in other emissions
categories in the coming years.

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On the road to net zero

Action on renewables
By year-end 2023, we sourced 91.9% renewableelectricity in our manufacturing sites comparedwith 78.4% in 2022.
Our Net Zero Roadmap sets out our commitment
to source 100% renewable electricity acrossall our sites by 2025. We also plan to adopt
renewable thermal energy sources in our plants
wherever feasible.
OverallTargeted interventions across the lifecycle ofour products have secured an absolute GHG
emissions reduction, compared to our 2018baseline. We use purpose-built systems to track
both our progress to net zero and the projects
and investment across the organization that are
making it happen. We monitor our emissions
using our GHG Performance System (GPS). Thisis designed to meet SBTi reporting requirements
and strengthens over time, with consistentboundaries, methods and data granularity.
We also assess our ESG-related investments,
including GHG reduction and removal activities,
using bespoke tools.
To ensure that our emissions reductions
are as effective as possible, we refine ourmethodologies according to evolving industry
standards and as new, more reliable data
becomes available. This increased granularity
includes the emissions data we now requestfrom our supply chains, such as in dairy and
PetCare, replacing the industry averages
used previously.
Our direct manufacturing operations(Scopes 1 and 2)
In 2023, Scope 1 and 2 emissions have reducedby 33.19% versus the 2018 baseline, largely asa result of the increasing amounts of renewableenergy established in manufacturing facilities,
combined with energy efficiency measures.

Agriculture contributes
to climate change mainly
through emissions ofcarbon dioxide, methaneand nitrous oxide.

In March 2023, we increased our renewables
sourcing with a significant investment in a major
new solar energy project in Texas, United States.
The 600-hectare solar project, owned anddeveloped by Enel North America, will add 208
MW of solar electricity to the U.S. grid.
In addition to our direct investment, Nestlé willpurchase 100% of the renewable electricity
attributes generated by the solar project’s
energy production for 15 years. The annual GHG
emissions reduction is expected to be around126 294 tonnes of CO₂e.
In Indonesia, we are replacing natural gas
boilers with biomass burners in three of our four
factories (two boilers completed and the third to
be completed in 2024). This will save more than
20 000 tonnes CO2e of Scope 1 and 2 emissions
per year.
Energy consumption in our factories
2021

2022

2023

Energy consumption(gigajoules)

82 779 476

80 131 120

76 824 313

Energy consumed that isrenewable energy (%)

25.3

30.6

35.0

Energy consumed that was
10.2
supplied from grid electricity (%)

6.0

28.0*

* The methodology calculation changed in 2023 from prior years, therefore
the KPI is not directly comparable.

Our value chain (Scope 3)
In 2023, Scope 3 GHG emissions reduced acrossour value chain by 11.51%. This was achieved by:– Addressing FLAG emissions by increased
collaboration with suppliers and farmers on
ingredients, including dairy.
– Reducing the consumption of fossil fuels acrossour supply chain, including in product packaging
and by implementing distribution efficiencies.
In 2023, our projects removed 758 317 tCO2e from theatmosphere, of which 671 367 tCO2e (89%) came fromprojects within our value chain and, in accordancewith SBTi, therefore contributing to our FLAG target.
We have removed 86 950 tCO2e (11%) via projects inour sourcing landscapes, through Global Reforestation
Program projects, helping us toward net zero**. See
Looking at the whole landscape chapter.
FLAG GHG emissions
Agriculture contributes to climate change, primarily
through the release of three different gases –carbon dioxide, methane and nitrous oxide:– Carbon dioxide (CO₂) stems from land conversion
or the burning of fossil fuels.
– Methane (CH4) is emitted from livestock production
systems, crop decay or food waste residues.
– Nitrous oxide (N₂O) is released when applying
nitrogen fertilizers, both synthetic and bio‑based.
To comply with SBTi, we are required to have FLAG
targets by the end of 2024. To begin to address the
topic as soon as possible, we had these validated
during 2023. On top of our net zero target, we
submitted our FLAG and Energy/Industry targets,
which were approved by SBTi in 2023.
Nestlé aims to reduce absolute Scope 3 FLAG GHG
emissions 50% by 2030 and 75% by 2050 from a2018 baseline year. Nestlé aims to reduce absolute
Scopes 1, 2 and 3 Energy/Industry GHG emissions by
50% by 2030 and 90% by 2050 from a 2018 baseline
year. Across our total emissions in scope of SBTi,
Nestlé remains committed to net zero by 2050.
** Removals from landscape projects are included in our net zero target pending
clarification from SBTi with the release of the guidance on neutralization(expected in 2024).

Creating Shared Value and Sustainability Report 2023

12

Total ingredients emissions split bygreenhouse gas(million tonnes)
The graph below shows the GHG emissionsof our total ingredients sourcing split bygreenhouse gas in CO2 equivalent. Carbon
dioxide (CO2) emissions accounted for 53% of
the total in 2023, methane (CH4) for 34% andnitrous oxide (N2O) for 13%. CH4 emissions
have reduced by 15.32% since 2018, CO2 by
11.89% and N2O by 11.36%.
54.67
13%
35%

52.22
14%

46.43

34%

13%

N₂O

34%

CH4
CO₂

52%

2021

52%

2022

53%

2023

FLAG emissions, the emissions from theproduction of our raw ingredients, represent
50% of the emissions included in our Net
Zero Roadmap in 2023 (39.46 million tonnes).
These fall within the scope of our FLAG target
approved during 2023. Non-FLAG emissions,the consumption of energy, logistics and fossil
fuel-based packaging, represent the remaining
50% (40.08 million tonnes). These fall within
our energy/industry target, reapproved by SBTi
in 2023.
Reducing emissions is one outcome of ourefforts to help advance regenerative foodsystems at scale. For more information, see also
the Restoring nature, protecting biodiversity andAdvancing human rights chapters.

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On the road to net zero

49.3%

of global fleet vehicles
switched to loweremission options

Innovation in dairy emissions reductions
We source our dairy raw materials in two ways:– Derivative ingredients such as milk powders,
whey or lactose come from dairy suppliers.
– Fresh milk is sourced directly from farmers
before being processed in Nestlé factories.
We purchase directly from over 150 000 dairy
farmers in 27 countries.

Our scientists also look at how thesesolutions can be used in combination withother approaches such as the managementof the dairy herd, as well as efficient farmmanagement. The most promising solutions arefurther validated and tested on research farms,
for their practicability, before considering abroader deployment.

Our overall dairy sourcing strategy is driven
by the Company's dairy climate plan and theindustry-wide Sustainable Dairy Partnership(SDP). In 2023, several new innovations
enhanced our dairy operations. Working
with sustainability consultancy Anthesis andlocal data collection partners, we developedand implemented a framework to enablerobust primary data collection and impact
measurement in markets around the world.

The Institute works in close collaboration withexternal partners including farmers, universities,
research organizations, start-ups and industry
partners. In December 2023, Nestlé joined
the Dairy Methane Action Alliance to workwith industry peers to drive accountability,transparency and action in the food industry on
methane emissions.

The data was integrated into an extensive
support tool that allows us to map all existing
potential climate reduction actions for a dairy
farm according to its distinct production
system. We then were able to work with
suppliers to adopt ambitious new roadmaps.
Our teams use the tool with our farmers tocreate refined bottom-up 2025 to 2030 freshmilk roadmaps for climate, methane andregenerative agriculture.
We also established a dedicated team to workwith our largest dairy derivatives suppliers. By
the end of 2023, the scheme was addressing
around 49% of our derivatives volume throughinterventions such as deforestation-free andlow-carbon feed supply chains, optimized diets
and improving animal well-being.
The Nestlé Institute of Agricultural Sciences
continues to research novel approaches
to reduce dairy emissions. This includes
methane-reducing feed supplements, manure
management and improved diets.

As noted by Robert Erhard, Nestlé Head of
Dairy, Corporate Sustainable Agricultural
Development: "We’re about bringing people
with us on this journey. We’re supporting our
network of farmers and suppliers to develop
roadmaps for regenerative agriculture andmitigating climate change which could help
them, their families and their landscapes forgenerations to come.”
More sustainable logistics
For our logistics activities, we prioritize GHG
emissions reductions, energy consumption andwarehousing efficiency. With our operational
footprint across many regions and types oftransport, our initiatives to reduce emissions
and increase efficiencies adapt to local
circumstances. In 2023, our teams' interventions
included the following:– Nestlé Chile launched a fleet of 30 liquid
natural gas-powered trucks to reduce CO₂eemissions by 20%. This project will deliver
the additional benefit of reducing particulate
pollution by up to 96%.
– Nestlé India joined 14 other companies in the
Zero Emission Vehicles Emerging Markets
initiative. This will support overall truck

electrification in India, with a projected local
demand from the group of 7 700 vehicles
by 2030.
– Nestlé UK and Ireland deployed doublestacked rail for a trial with a retailer. Eachfreight train has the potential to take 76 heavygoods vehicles off the roads and provide a
reduction of 76% in CO₂e emissions compared
to diesel‑powered journeys.

Dairy production offers
many ways to reduce GHG
emissions, including via
the improved well-being ofherds and optimized diets.

Changes to recipe formulations to reducegreenhouse gas emissions
The decarbonization challenge is complex and wehave tasked our teams to identify opportunities
across our value chain. In 2023, we successfully
introduced recipe reformulations that maintainthe quality and taste of our products, while
reducing emissions by 0.74 million tonnes. By
replacing some animal proteins with plant-based
ingredients, we are helping achieve our net
zero commitment and responding to trends inchanging consumer diets.
For example, in Nigeria we have launched
NIDO milk and soy, an affordable and nutritious
instant powder, which for the first time combines
the goodness of milk and locally sourced soy.
This product is a source of proteins and fibers,
fortified in vitamins and a source of iron andcalcium – and has the potential to meet demandfor products with lower carbon footprints.
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13

Packaging
All packaging accounts for 11.70% (or 9.31 million
tonnes of CO2e) of the GHG emissions in our net
zero commitment. Key interventions to reduce
GHG emissions related to packaging are to:– Use less and better packaging by driving our
five-pillar packaging sustainability strategy.
– Incorporate recycled materials.
– Collaborate with our packaging suppliers,
encouraging them to use energy sources thatare low in GHG emissions.

Our R&D centers are
rethinking recipe
reformulation to help
reduce GHG emissions.

Food loss and waste
Food loss and waste account for a low
percentage of our emissions but are complex
to address. They accounted for 710 275 tonnesof CO₂e in our 2018 baseline study. We aim to
reduce food loss and waste at every stage ofour value chain. We make use of agriculturalside streams, recover food waste in factories
to use as biofuel and work with farmers andconsumers to minimize waste. The table below
lists the total weight of waste generated, with asplit by the composition of waste types, for our
Nestlé factories.
Total weight of waste generated andbreakdown by composition*(tonnes)
Waste
Hazardous
composition waste generated

Non-hazardous
waste generated

Total
2022

2022

2023

2022

2023

Biomass

839

3 157

1 414 716

1 027 439 1 415 555 1 030 596

Other waste

33 0619 622

363 331524 592

Total

33 90012 7791 778 047 1 552 031 1 811 947 1 564 810

396 3922023

534 214* 2022 value adjusted from last report due to error in reporting units.

Nespresso’s The Positive Cup strategy
The scale of our brands can enable our suppliers
and farmers across the value chain to contributeto our net zero commitment, while engaging
with consumers. Nespresso’s The Positive Cup
approach has ambitious goals to regeneratelandscapes, empower communities, advancecircularity and inspire collective action.
Green coffee represented the single largest
contributor to Nespresso’s carbon footprint
during our 2018 baseline year. The brandis addressing this in part by supporting
regenerative agricultural practices. These
include reducing the use of carbon-intensive
fertilizers and via carbon-absorbing plants
cultivated amongst the growing coffee. Theseaim to absorb carbon emissions and increase
biodiversity and soil health, complementing themillions of trees now being planted every year.
Advocacy
Reaching net zero emissions is an economywide endeavor that relies on creating an enabling
environment for rapid and sustained progress.
Nestlé prioritizes advocacy on climate change
to help establish the right policy and regulatory
frameworks at international and national levels.
Our work includes supporting international
processes driven by the United Nations
Framework Convention on Climate Change,
prioritizing food systems. We also support trade

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On the road to net zero

associations in advocating for policies alignedwith the Paris Agreement.
In 2023, we updated our advocacy priorities in
our Net Zero Roadmap. Highlights of our global
activities in 2023 include:
Regenerative agriculture– Helping co-create the COP28 Action Agenda
on Regenerative Landscapes.
– Co-founding the industry outcomes-based
framework Regenerating Together, hostedon the SAI (Sustainable Agriculture Initiative)
platform and designed to expand regenerative
agriculture across the world (see Moreregenerative practices on farms).
Supporting climate action– Participating in the first private sector panel at
the United Nations Forum on Forests 18 event.
We considered how food and agriculturecompanies can contribute to achieving Global
Forest Goals via ongoing regenerative foodsystems and forests initiatives.
– Signing a Call to Action for the urgent
adoption of an ambitious and legally binding
EU Nature Restoration Law. Nestlé also
advocated in support of the EU Soil Monitoring
and Resilience Law.
– Supporting the Emirates Declaration
on Resilient Food Systems, Sustainable
Agriculture and Climate Action at COP28.
– Adding our name to Calls to Action by theWorld Economic Forum and the We Mean
Business Coalition for the world to fast-track
the transition to renewables and take otherpolicy measures to accelerate climate action.
We also improved our implementation of
the Global Standard on Responsible Climate
Lobbying by publishing our 2023 Climate
Advocacy Industry Associations Review. As aresult, Nestlé was recognized by InfluenceMap
as among the 27 Corporate Climate Policy
Engagement Leaders worldwide.

Our Net Zero Roadmap
presents opportunities
and challenges across ourcomplex value chain.

Outlook
The projects we have already started will get
us close to our 2025 milestone of a 20% net
reduction of GHG emissions from 2018 levels.
In 2024, we aim to identify additional projects toclose the small remaining gap.
Beyond this, our Net Zero Roadmap includes
targeted GHG reductions to 2030. We anticipate
further reductions to come from investments inagroforestry, deforestation prevention and new
farming practices in the dairy sector. As climate
impacts accelerate, we will continue to push
hard to address all scopes of our emissions.
As well as addressing our existing activities,
we need to innovate both in our products andin agri-tech, combining our own research anddevelopment capabilities with those of external
researchers, start-ups and other partners. We
will focus on health science, innovation andsustainability to both drive new business andsupport our Net Zero Roadmap.

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14

Restoring nature,protecting biodiversity

Context

Approach

In December 2022, a new Global Biodiversity
Framework was agreed at the 15th Conferenceof the Parties to the United Nations Convention
on Biological Diversity (COP15) in Montreal.
More than 195 nations have now approveda package of biodiversity and ecosystemmeasures, underlining the urgency for industry,
governments and communities to act.

We understand the impact intensive agriculture
can have on ecosystems. We are working tohelp safeguard natural resources, in particularforests, which support much of the planet’s
biodiversity. We do this through our Forest
Positive strategy which also sets out how weshould engage Indigenous peoples and local
communities as the best stewards of biodiverse
lands, in many regions of the world.

The complex challenges companies facein the Forest, Land and Agricultural (FLAG)
sector present a significant opportunity. If
successful, the sector can deliver a positive andlasting impact, not just on climate, but on theinterlinked issues of nature and biodiversity.
As a food and beverage company, we rely on
nature for all our ingredients and we have acommitment to achieve net zero emissions
by 2050.
Protecting, preserving and restoring nature isessential for tackling climate change, enhancing
livelihoods and achieving a more regenerative
food system. Our strategy to address thechallenges facing agriculture goes beyond
carbon, to help deliver positive outcomes for theenvironment and the people it supports.

Supporting nature and biodiversity
is essential for addressing climatechange, protecting the environmentand communities, and the future ofour business.

Table of contents

During 2023, we:– Supported regenerative landscape initiatives in Brazil,
Chile, Côte d’Ivoire, Indonesia, Malaysia, Mexico, Peru
and the United Kingdom.
– Received assessments that 93.4% of our primary supply
chains for coffee, cocoa, meat, palm oil, pulp and paper,soy and sugar were deforestation-free.
– Secured 14 697 500 trees for planting with new confirmed
projects in Brazil, Colombia, Côte d’Ivoire, Mexicoand Vietnam.

Restoring nature, protecting biodiversity

Nature and biodiversity loss poses a risk
to Nestlé as it may threaten the availability
and quality of key ingredients and increase
vulnerability to climate change impacts. The
above factors may potentially lead to supply
disruptions, regulatory action and impacts on
our reputation. For more on business risks,
please refer to the 2023 Nestlé Annual Review.

SDG
contributions

To help further strengthen biodiversity,
water resources and soil health, we supportscaling up regenerative agricultural practices.
These include water stewardship. The Nestlé
Agriculture Framework sets out specificprinciples and practices to advance regenerative
agriculture, adapted to local conditions
and needs.
We take advantage of our reach and scale toparticipate in international efforts that aim
to restore degraded ecosystems. Our Global
Reforestation Program is part of landscapeinitiatives in our sourcing locations. We
complement these initiatives with our efforts
to source commodities that are assessed
deforestation-free.
Our actions to help protect nature andbiodiversity use the most current and accurate
data available. This includes information on thequantities and locations of commodities we buy,
including coffee, cocoa, palm oil and dairy.
We have worked with the Biodiversity
Consultancy to understand the biodiversity
profiles, impacts and dependencies of the land
where key raw materials in our products growor graze. We collaborate with experts and nongovernmental organizations (NGOs) to increase
our understanding and share best practices.

Creating Shared Value and Sustainability Report 2023

15

Actions for nature and biodiversity
Our opportunities are interconnected. By
acting systemically, we can help address
climate change and create a more regenerative
food system that will also support more
resilient communities.
– By 2025, we aim for 20% of our key ingredientsto be sourced from farmers adopting
regenerative agricultural practices, and 50%
by 2030.
– We will invest CHF 3.2 billion by 2025
in initiatives toward net zero, including
CHF 1.2 billion to help spark regenerative
agriculture across our supply chain by 2025.
– We support landscape initiatives across Africa,
Asia, Europe, Latin America and Oceania.
– We aim to plant 200 million trees by 2030
under our Global Reforestation Program.
– We aim for 100% assessed deforestation-free
primary supply chains by 2025 (meat, palm oil,pulp and paper, soy, sugar, coffee and cocoa).
– 10 Human Rights Salient Issue Action Plans
will be reported on by 2025.

Advocacy and external recognition
Nestlé was one of the founding corporate
members of the Taskforce on Nature-related
Financial Disclosures (TNFD) and helped shape
its recommendations ahead of publication in
September 2023. Our team, Business4Nature,
and TNFD helped advocate for the passage of
the EU Nature Restoration Law in the summerof 2023, and Nestlé continues to co-chair theInternational Chamber of Commerce Working
Group on Biodiversity. This is in addition to
our involvement in broader coalitions such as
REGEN10 and Business4Nature.

Monitoring species
in vegetable sourcing
landscapes in Spain.

Performance
For information on how our programs andadopted measures have been effectively
supporting nature and biodiversity, please refer tothe Performance sections in the chapters below:– Looking at the whole landscape: Forest
Positive, Global Reforestation Program.
– More regenerative practices on farms: impacts
across all main commodities, agroforestry.
– Water stewardship: Nestlé Waters
regeneration projects.
– Responsible sourcing: Nestlé Responsible
Sourcing Standard.

Outlook
Nestlé is undertaking work to prepare thebusiness for forthcoming regulatory andvoluntary requirements on nature andbiodiversity. This includes research into ourCompany’s impacts and dependencies onnature, as well as identifying how best tomeasure and report the nature-related effectsof our major climate initiatives. We are oneof 17 companies engaged in a Science Based
Targets for Nature pilot to trial its methodology.
This allows us to assess our readiness for setting
specific objectives on nature-related impacts.

Assessing nutrient levels
and plant health using
tissue analysis.

In 2023, Nestlé ranked first out of 350 assessedfood and agriculture companies by the World
Benchmarking Alliance for our approach to
managing nature and biodiversity. We alsoranked second in terms of performance onmanaging deforestation-related risks in theForest 500 index. We recognize that there is
still much more to be done in collaboration withothers in the sector to help address the impacts
on nature from agriculture.

Special nesting boxes
provide shelter for
insect‑eating species.

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Restoring nature, protecting biodiversity

Creating Shared Value and Sustainability Report 2023

16

Suffolk farmers
champion biodiversity
within landscape-based
programs
The Landscape Enterprise
Networks (LENs) program is
helping local farmers work
together to organize thebuying and selling of
nature-based solutions.
Nature-based solutions are land
management measures that deliver
ecosystem functions. These can
include water quality management,
flood risk mitigation, the resilient
supply of crops, GHG emissions
reductions and improved biodiversity.
A group of forward-thinking farmers
has collaborated with Nestlé Purina
PetCare Europe to put the landscapeat the center of their operations.
Known as the ‘High Suffolk Farm
Cluster’, the group farms 5 500
hectares in East Anglia, United
Kingdom, where they grow wheat for
cereals and pet food.

Table of contents

The Suffolk project has received
support and funding from the
LENs program. LENs encourages
businesses from different sectors towork together to understand theirshared risks and opportunities in alandscape. The teams then identify
relevant nature-based interventions toaddress these, working with groupsof farmers and land managers to
implement them.
For the Suffolk farmers, the aim isclear: improve resilience in the faceof climate change impacts, protect
biodiversity, regenerate the land andsecure long-term food production. It
is a win-win for farm owners, wildlife
and consumers.
The approach represents an efficient
way for businesses to fund naturebased interventions in their areasof interest, in order to help achieve
their sustainability goals. It also
provides groups of farmers with asingle proposal on behalf of multiple

Restoring nature, protecting biodiversity

Matt Ryan, Regeneration Lead, Nestlé UK and Ireland; Patrick Barker of Lodge Farm in Suffolk; Emma Keller, Head of Sustainability, Nestlé UK and Ireland.

businesses and sectors, creatinga coherent ask and significantly
reducing time and resources.
It is not just crops and soil healththat are in the farmers’ thoughts.
As part of the partnership toimprove biodiversity, funding has
supported hedgerow planting and acomprehensive hedgerow survey ofthe entire project area. The survey
is a first of its kind in the United
Kingdom, covering 249 km. Farmers

have received guidance on how tomanage and restore hedgerows,
which provide habitats for wildlife,
while improving soil health. Farmers
have also been provided with locallymade bird boxes, winter bird foodand feeders to support the diversityof local bird species, and more thanhalf of the farms now host honey bees
and their hives. In addition, the High
Suffolk Farm Cluster has protected
331 hectares of woodland and 220
hectares of permanent grassland.

Any support must be “farmer-led,
and with people at the heart”,
highlights Matt Ryan, Regeneration
Lead at Nestlé UK and Ireland. “Thefarmers have detailed and valuableknowledge of the local land andecosystems. And it’s this insight that
can help environments thrive overthe long term.”
The LENs program is currently
engaging farmers across Hungary,
Italy, Poland and the United Kingdom.

Creating Shared Value and Sustainability Report 2023

17

Looking at thewhole landscape

To track our progress, we put in place the following KPIs:
Our objective was to achieve 100% deforestation-free supply chains for meat, palm oil, pulp and paper, soy and sugar by 2022 and we achieved 99.1%
for these raw materials by this date. We remain committed to working toward 100% for meat, palm oil, pulp and paper, soy and sugar, as well as
toward achieving 100% deforestation-free supply chains for cocoa and coffee by 2025.

Deforestation-free in our primary
supply chains

CoffeeCocoa

100% deforestation-free by 2025

100% deforestation-free by 2025

100% deforestation-free

92.8%
of primary supply
chain assessed as
deforestation‑free

93.4%

Unknown

7.2%

Unknown

Assessed from the sky

0.0%

Assessed from the sky 18.3%

Assessed on
the ground92.8%

Traceable to non-veryhigh-risk origin

0.0%Palm oil

Assessed from the sky

22.7%

Assessed on the ground23.1%

Traceable to non-very-high-risk origin

47.7%

of primary supply
chain assessed as
deforestation‑free

4.0%

Soy

2%

Assessed from the sky

0.4%

Assessed on
the ground12.0%

Traceable to non-very- 85.6%
high-risk origin
kilotonnes

To support complex ecosystems, aresilient food system and a just future
for communities, we aim to protect andrestore landscapes where we source.

During 2023, we:– Worked towards 100% deforestation-free primary supply
chains for meat, palm oil, pulp, paper, soy, sugar, cocoa
and coffee.
– Supported regenerative landscape initiatives in Brazil,
Chile, Côte d’Ivoire, Indonesia, Malaysia, Mexico, Peru
and the United Kingdom which aim to restore 60 000
hectares of land and support 60 000 local people.
– Secured plans to plant and grow 14.7 million trees via our
Global Reforestation Program.

Traceable to non-veryhigh-risk origin

0.7%

614.1

98.2%
of primary supply
chain assessed as
deforestation‑free2030

14.7 m1.9%

Assessed from the sky 42.5%

98.1%

Assessed on
the groundof primary supply
chain assessed as
deforestation‑free

0.7%

Traceable to non-very- 54.9%
high-risk origin
kilotonnes

1 650.7

100% deforestation-free
Unknown

1.8%

Unknown

0.1%

Assessed from the sky

0.0%

Assessed from the sky

0.0%

Assessed on
the ground

17.2%

Assessed on
the ground0.0%

Traceable to non-very- 81.0%
high-risk origin

99.9%
of primary supply
chain assessed as
deforestation‑free

1 252.9

kilotonnes

Traceable to non-very- 99.9%
high-risk origin
kilotonnes

22.2

SDG contributions

in our supply chain and sourcing landscapes

2023

337.4

Meat

Aim to grow 200 million trees by 2030
2022 12.4 m

0.0%

Unknown

458.7

100% deforestation-free
Unknownof primary supply
chain assessed as
deforestation‑free

5.9%

Pulp and paper

100% deforestation-free

97.9%

Assessed on
the groundkilotonnes

5 185.2

kilotonnes

Traceable to non-veryhigh-risk origin
kilotonnes

Assessed from the sky 89.4%

96.0%

24.0%

100% deforestation-free
Unknown

6.5%

Assessed on
the ground

Sugar

100% deforestation-free

Unknownof primary supply
chain assessed as
deforestation‑free849.1

kilotonnesof primary supply
chain assessed as
deforestation‑free

42.3%

57.7%

Trees secured for planting within the year

37.0 mCumulative number of trees secured for planting
51.7 m200 m

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions and can be found here.

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Looking at the whole landscapeCreating Shared Value and Sustainability Report 2023

18

Approach
The conversion of natural landscapes for
ingredients in our supply chain is estimatedto account for between 25% and 35% of our
total ingredient emissions. In 2010, Nestlé
committed to achieving and maintaining
deforestation-free primary supply chains,through the implementation of the Nestlé
Responsible Sourcing Standard (see more in
Responsible sourcing).

Context
The climate is changing. In 2023, global
temperatures reached an average of 0.41°C
above pre-industrial levels. To have an
ecosystem impact that can mitigate climatechange, going beyond farm boundaries andworking at a landscape level is required.

Agroforestry can help
to increase biodiversity
and yields, and reduce
farming costs.

The Food and Agriculture Organization of
the United Nations (FAO) has suggested thathalting deforestation and maintaining forests
could avoid emissions of around 3.6 gigatonnesof carbon dioxide equivalent gases per year
between 2020 and 2050. This would provide
around 14% of the mitigation required to keepplanetary warming below 1.5°C by 2030.
According to the World Wide Fund for Nature(WWF), this effort would help safeguard morethan half the Earth’s species. It would also
protect the livelihoods and rights of Indigenous
peoples and the many local communities thatthose forests support.
Factors such as complex supply chains andthe visibility of upstream supplier tiers may
contribute to the risk of unsustainable land use
in our value chain. Any incidents or concerns
linked to land use, including deforestation, may
potentially lead to supply disruptions, regulatory
action and impacts on our reputation. For moreon business risks, please refer to the 2023
Nestlé Annual Review.

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Looking at the whole landscape

We work with our palm oil suppliers, such as
Musim Mas, to help smallholders continuously
improve their practices. In palm oil, smallholders
account for 40% of the global supply and webelieve this work is important to help support ajust transition.
Forest Positive
Forest Positive is our strategy to help deliver
a positive impact in our critical sourcing
landscapes. It supports our aim to achieve andmaintain a deforestation-free supply chain of key
ingredients. We do this using three approaches:

To complement our Forest Positive strategy, we
use the Nestlé Responsible Sourcing Standard
to prevent supply from areas converted from orin existing:– High Carbon Stock forests.
– Natural ecosystems including wetlands
and savannas.
– 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 wetlandson the Ramsar List.
Since 2020, we have been working with experts
from the NGO Earthworm Foundation to assess
our forest footprint and risks for ecosystems
and local communities. Together, we are now
focused on identifying specific value and use
cases for our forest footprints. We are also
improving our methodologies to include newgeographies and commodities that we cantarget for conservation.

Global Reforestation Program
Forests are home to 80% of land-based animals,
plants and insects. Our Global Reforestation
Program seeks to conserve and restore landand natural ecosystems in our supply chain andsourcing landscapes. We aim to do this while
respecting the rights of Indigenous peoples
and local communities and by promoting
sustainable livelihoods.

We aim to plant and grow 200 million
trees in our supply chains and sourcing
landscapes by 2030.

Nescafé Plan 2030
landscape initiative forcoffee growing regionin Colombia.

Aiming for deforestation-free supply chains,using tools such as farm assessments,
certification and satellite monitoring.
Working on long-term forest conservation
and restoration in our supply chains, while
respecting the rights of Indigenous peoples andlocal communities.
Fostering regenerative landscapes, engaging at
scale to help transform the key landscapes wesource from.

Creating Shared Value and Sustainability Report 2023

19Performance

Deforestation-free
By the end of 2023, 93.4% of our primary
supply chains for coffee, cocoa, meat, palm oil,pulp and paper, soy and sugar were assessed
as deforestation-free, according to Nestlé
standards. The decrease from 99.1% in 2022 isdriven by two factors: increasing the number ofcommodities in this indicator and increasing thetypes of ingredients covered within our original
commodities. In 2023, we included coffee
and cocoa for which we have been assessing
deforestation risks for less time. We have also
included, for the first time, some ingredientderivatives such as lecithin derived from soy.
We remain committed to working towardachieving and maintaining 100% assessed
deforestation-free in our primary supply chainsfor meat, palm oil, pulp and paper, soy and sugar,
and for cocoa and coffee by 2025.
A decade of testing, investigating and finding
solutions has taught us that no single tool willsolve deforestation on its own. Our reported

performance is based on the following
measures: we begin by mapping the often
complex and multi-tiered supply chainsback to their point of origin. We grow ourunderstanding through desktop and on-theground risk assessment and, more recently,
real-time satellite monitoring. This agile
assessment toolkit informs what we deploy toaddress deforestation risks with suppliers andstakeholders, providing fact-based evidence todrive real change on the ground.
Our risk mitigation tools include: working
with suppliers to identify and mitigate risks;
landscape projects; building capacity andresilience among smallholders to provide
sustainable livelihoods and conserve forests;
industry collaboration – collective action; andconsensus building.
Regenerative landscapes
During 2023, we supported 15 regenerative
landscape initiatives in Brazil, Chile, Côte
d’Ivoire, Indonesia, Malaysia, Mexico, Peru andthe United Kingdom. These collective landscapeinitiatives are targeting the conservation of overPulp & paperin Indonesia, Riau
Earthworm
Foundation

Landscape initiatives supported in 2023
Palm oilin Mexico,
ChiapasEarthworm
Foundation

Cocoa
in Côte d'Ivoire,
Cavally
Earthworm
Foundation

Wheat
in the United Kingdom,
Suffolk
Landscape Enterprise Networks

Palm oilin Peru,
TocacheEarthworm
Foundation

Pulp & paperin Chile,
Nahuelbuta
WWF Chile &NGO Arca Sur

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Palm oilin Malaysia,
Sabah
Earthworm
Foundation
Palm oilin Malaysia,
PahangEarthworm
Foundation

Palm oilin Indonesia
Rimba Collective
Palm oilin Indonesia, Riau
Winrock
Palm oilin Indonesia,
Subusallam
Musim Mas
Palm oilin Indonesia,
Singau Linau
Proforest

Soyin Brazil, Cerrado
Tocantins
Conservation
International Brazil (CI)Soyin Brazil,
Cerrado Mato Grosso
Instituto de Pesquisa
Ambiental da Amazônia (IPAM)

Looking at the whole landscape

Palm oilin Indonesia, Riau
Earthworm
Foundation

92.8%

2.5 million hectares of key natural ecosystems
and the restoration of almost 60 000 hectares,
helping over 60 000 people in these landscapes
secure their livelihoods, tenure or widersocial benefits.

of our coffee wassourced through the
Nescafé Plan 2030
or Nespresso AAA
Sustainable Quality™
Program in 2023

Activities in the palm oil supply chain
Many of Indonesia’s crucial ecosystems arecarbon sinks and home to unique flora andfauna. Despite an overall national decrease,
deforestation persists in protected areas,
including Tesso Nilo National Park. Preventing
deforestation improves smallholders’ livelihoods,
increases yields and provides alternative income
sources. We partner with stakeholders inIndonesia to help achieve this.
We are partnering with Forest Carbon and our
supplier Golden Agri-Resources for large-scale
wetland forest conservation and restoration in
the South Sumatra Merang biodiversity zone.
The project covers more than 22 000 hectares oftropical wetland forest, home to Sumatran tigers
and 20 other rare, threatened or endangered
species. The project aims to prevent fires andremove carbon from the atmosphere throughvegetation regrowth.
Regenerative agriculture and tree planting in
coffee farms
Highlights in 2023 include the work done incoffee for Nescafé Plan 2030. Our teams reached
277 000 farmers in 27 origins. The coffee
growers took part in training on the principles
of regenerative agriculture and more than
21 million coffee plantlets were distributed tosupport renovation of their coffee farms. They
also planted three million forest and fruit trees
to help increase local biodiversity and build thenatural resilience of their farms.

A farmer planting one of
the millions of coffee, forest
and fruit tree plantlets,
distributed in support of
the Nescafé Plan 2030.

biodiversity and the productivity of farming
landscapes. Our actions on regenerative
agriculture are guided by our longstanding
partners which include the Rainforest Alliance,
PUR and the International Union for theConservation of Nature (IUCN).
Global Reforestation Program
The program continues to identify new largescale reforestation projects in our supply chain
and sourcing landscapes, supporting Nestlé’s
Net Zero Roadmap. During 2023, we confirmed
new projects in Brazil, Colombia, Côte d’Ivoire,
Mexico and Vietnam. A total of 14 697 500 trees
were secured for planting.

Forest Positive projects in 2023
Trees planted(000s)Country

Program

Australia

Global Reforestation Program

1 727

China

Global Reforestation Program

205

Colombia

Global Reforestation Program

1 513

Côte d’Ivoire

Global Reforestation Program

60

Honduras

Global Reforestation Program

1 125

MexicoGlobal Reforestation Program

228

Nicaragua

Global Reforestation Program

1 500

ThailandGlobal Reforestation Program

115

The Philippines Global Reforestation Program

253

VietnamGlobal Reforestation Program

100

Creating Shared Value and Sustainability Report 2023

20

Our Nespresso AAA Sustainable Quality™
Program has supported farmers to use naturebased practices such as intercropping. This
helps increase soil and water resource health,The Rimba Collective:
Restoring forest
resources together
Protecting natural capital forpresent and future generations.

Nestlé Cocoa Plan tree
seedlings ready to beplanted on the farm.

Outlook
There is an increasing understanding andurgency to protect and restore forests bygovernments and stakeholders.
Collaborating with our peers can help to protect
and restore landscapes through the sharingof knowledge and resources. We will seek
more opportunities to achieve impacts throughpartnership and scale in ways that support a justtransition, protecting the rights of Indigenous
peoples and local communities.

Table of contents

Looking at the whole landscape

A partnership of leading
multinationals has come together
to protect and restore precious
forests across Indonesia and thesurrounding region. Natural capital
asset management company Lestari
Capital developed the program,securing the collaboration of founding
partners including Nestlé and anumber of other leading globalorganizations. The initiative, called‘Rimba Collective’, complements
the palm oil industry’s efforts to end
deforestation by funding conservation
and restoration projects across the
supply chain.
The project aims in 30 years toprotect and restore 500 000 hectaresof forest and support 32 000 people
in forest communities of Southeast
Asia. In its first phase, the objective isto protect 93 000 hectares and restore
23 200 hectares of forest landscapes
locally by the end of 2025.

Rimba Collective inaction in Gohong under
the guidance of Project
Operator KpSHK.

Protected natural
capital in the Ketapang
District, Indonesia.

In the first year of full operations,
the Rimba Collective initiated
73 000 hectares of forest conservation
projects. As of September 2023,
Nestlé had contributed to protecting
29 028 of these hectares, restoring
4 185 hectares and supporting
8 450 people to achieve livelihood,tenure or wider social benefits.
The Rimba Collective’s programs
include the Tropenbos Project, inwhich Nestlé has a leading role,covering 14 406 hectares within four
villages in the Ketapang District,Indonesia. The team aims to better
understand biodiversity impacts
and dependencies. They will thenuse these insights as the basis
for planning and demonstrating
good performance according to
the Species Threat Abatement andRestoration (STAR) metric.

The assessment revealed that thesefour village forests hold immense
global biodiversity value, providing a
habitat for 97 endangered and nearthreatened bird and mammal species.
Risks in the landscape include mining
and logging, together with fires andland clearance for agriculture.
To help address these challenges, theteam has developed a conservation
plan and shared biodiversity andwildlife conservation management
knowledge with the community livingin the area.

Creating Shared Value and Sustainability Report 2023

21

More regenerative
practices on farms

Context
During the COP28 climate conference, morethan 130 world leaders vowed to put sustainableagriculture and resilient food systems at the heartof their climate plans. They did this in the context
of a human population that could reach 10 billion
by 2050, with agriculture already producing
around a third of GHG emissions.

To track our progress, we put in place
the following KPI:
Progress toward 20% of key ingredients sourced
from farmers adopting regenerative agricultural
practices by 2025 and 50% by 2030*
15.2% in 2023
6.8% in 2022

The global food and farming system has a unique
opportunity to transform – to secure and increase
natural resources, reduce emissions, feed our
growing communities and play a vital and lastingrole in a more predictable and sustainable future.

15.2%

Increasingly, farmers and food producers arelooking to regenerative agricultural practices
to achieve this. In 2023, Nestlé and leading
FMCGs committed to a new global framework toaddress the multiple frameworks and definitionsof regenerative agriculture. This establishes aharmonized and outcomes-based approach toregenerative agriculture.
Convened by the Sustainable Agriculture
Initiative (SAI) Platform, Regenerating Together
encompasses a holistic approach to farming,
inspired by agroecological principles. It supports
the three key agricultural resources – soil,
water and biodiversity – and aims to benefit
farming communities.

Regenerative agriculture can play a
critical role in improving soil health,sequestering carbon and supporting foodsecurity. It can restore water resources,
enable biodiversity and improve theresilience of farming communities.
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By the end of 2023, we:– Sourced 15.2% of fresh milk, dairy derivatives, cocoa,
green coffee, cereals, soy and vegetables fromselected suppliers and farmers adopting regenerative
agricultural practices*.
– Reached more than 148 000 coffee farmers in
16 countries via the Nescafé Plan 2030 with trainings
on regenerative agricultural practices.

More regenerative practices on farms

Regenerative agricultural practices can help
farmers to avoid risks associated with thedegradation of ecosystem services. It alsoenhances biodiversity and improves local
communities’ economic growth and resilience.
Regenerative farming can help reduce GHG
emissions and contributes to CO2 removals. For
more information, see the Nestlé Agriculture
Framework and more on business risks can befound in this year’s Nestlé Annual Review.

in 2023

SDG contributions

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides
details and definitions and can be found here.
* In 2023, the following ingredients are included in the numerator: dairy (fresh milk and dairy
derivatives), coffee (excluding blended green coffee and blue bottle), cocoa, cereals and grains,soy, and vegetables. The denominator includes all raw materials in scope: coffee, cocoa, dairy,sugar, cereals and grains, meat, poultry and eggs, palm oil, soy, vegetables, fish and seafood.

Creating Shared Value and Sustainability Report 2023

22

We pilot new practices, including on reference
farms, and use technologies to track performanceagainst bespoke key performance indicators.
These include the Cool Farm Tool, originallydeveloped by experts from the Cool Farm
Alliance, which has more than 150 members
in farming, food and beverage companies,
NGOs, academic institutions, farmer groups
and agronomy. This allows the calculation ofindividual farms’ emission factors, identifies
hotspots and makes it easier for farmers to test
and manage emissions interventions.

Farmers are looking toregenerative agricultural
practices to help
them achieve a moresustainable future.

Approach
By 2025, we aim for 20% of our key ingredientsto be sourced from farmers adopting
regenerative agricultural practices, and 50%
by 2030. We are taking action based on our
five pillars: diverse cropping systems andlivestock integration; biodiversity; collective
and landscape actions; soil health; and water
security and quality.
Our approach, set out in the Nestlé Agriculture
Framework, encourages the development oflocally relevant solutions, adapted to the wide
range of ingredients used in our products.
The framework includes key concepts fromconservation agriculture, agroecology andprecision farming.
We work with suppliers to support farmers
themselves, who have the knowledge andresponsibility for the environments in which
they work. We have developed training
programs and materials for the ingredients
we source, including cereals, cocoa, coffee,
dairy, vegetables and sugar.

Table of contents

More regenerative practices on farms

We understand that introducing regenerative
agricultural practices is beyond one company’scontrol. We also appreciate there are certain
risks or costs for farmers. We are committed
to providing technical, collaborative or financial
assistance to support the just transition. Examples
include weather insurance for coffee farmers inIndonesia who have adopted the techniques aspart of the Nescafé Plan 2030. In Brazil, we arepaying premiums to dairy farmers for achieving
the regenerative agriculture standards.

“When it comes to sustainability, ourbrands are developing ambitious, innovative
projects for the long haul. Amongst others,
I'm proud of recent work from NINHO in
Brazil which is incentivizing farmers to
adopt regenerative agricultural practices
that promote soil health, animal welfare
and water conservation, and which wehave started to communicate to consumers
through 'The Difference That Comes From
the Farm' campaign."
Aude Gandon
Global Chief Marketing Officer, Nestlé

External viewpoint

Restoringbalance
Santiago Gowland
Chief Executive, Rainforest Alliance

How the Nescafé Plan 2030 has helped
growers in Vietnam to accelerate
the adoption of regenerative coffee
farming practices.
Across Vietnam’s Central Highlands, there
are thousands of smallholding plots that havesupported families for many decades, but now
are facing the challenges of climate change,
including increased temperatures and irregular
rainfall. To preserve that legacy of coffee
growing, we knew that business as usual was
not going to be an option.
To face these challenges, the Nescafé Plan 2030
is using regenerative agricultural practices toincrease farmers' resilience. Techniques such as
intercropping, soil cover and optimizing inputs
are how we can help Vietnam’s coffee growing
legacy for the next generation.
The Nescafé Plan 2030 supports coffee
growers to flourish in the urgent transition toregenerative agriculture. With an investment of
CHF 1 billion to enable that by 2030, 50% of thecoffee they source comes from farms adopting
regenerative practices that can restore the soil,
water and biodiversity in their local area.

To achieve their commitments, the Nescafé
team intensified its engagement with thegrowers in their supply chains. The Rainforest
Alliance has been Nescafé’s impact assessment
partner for over 10 years. The organization hasmonitored our engagement with over 17 000
Vietnamese farmer households so far within
the 32 000 hectares of land supported by
Nescafé agronomists, demonstrating positivechange, in both regeneration and income.
One of the most effective pathways for farmers
in Vietnam is the establishment of mixed
production systems (e.g. intercropping withpepper, fruit trees and green borders, insteadof monocropping). Planting trees provides
shade, improves water management, soil healthand biodiversity. Crucially, intercropping alsooffers another income stream. The journey
does not end here at Rainforest Alliance. We
are constantly working with our partners andchallenging each other to stay on a path ofcontinuous improvement. The urgency ofthe climate and biodiversity crisis, and theimperative of poverty alleviation, demands
putting producer benefit at the center of thistransition; that’s the only fair way to scale up
our shared regenerative agriculture continuous
improvement strategy.
In Vietnam, more than 90% of the growers theRainforest Alliance has monitored have adopted
some form of intercropping and 53% of coffee
growing areas in Nescafé Plan 2030 farms
now have integrated shade trees. The averagefarm revenue per hectare has risen by nearly
double from 2019 to 2023, thanks to income
diversification, optimized costs, higher yields
and better coffee prices.
Ensuring that the value chain is regenerative is
one of the greatest challenges and opportunities
for Nescafé. Winning the trust of their suppliers
will help them to make it happen.

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23

Performance
In 2023, our regenerative agriculture program
continued to expand across a wider range ofraw materials and regions. Training continued
for farmers and we advanced our knowledge
and practices. As a result, we expect to meet
our aim of 20% of our key ingredients to besourced from farmers adopting regenerative
agricultural practices by 2025, and 50% by2030. For the year 15.2% of our fresh milk, dairy
derivatives, cocoa, green coffee, cereals, soyand vegetables* came from farmers adopting
regenerative agricultural practices, up from
6.8% in 2022, the first year of reporting. We
have committed to spend CHF 1.2 billion toenhance regenerative agriculture across our
supply chain by 2025. In assessing volumes of
key ingredients sourced from farmers adopting
regenerative agricultural practices, we also
included selected raw material categories
sourced from industrial suppliers through the
Nestrade Procurement Division.
* In 2023, the following ingredients are included in the numerator: dairy(fresh milk and dairy derivatives), coffee (excluding blended green coffee andblue bottle), cocoa, cereals and grains, soy and vegetables. The denominator
includes all raw materials in scope: coffee, cocoa, dairy, sugar, cereals andgrains, meat, poultry and eggs, palm oil, soy, vegetables, fish and seafood.

In Brazil, we areincentivizing farmers
supplying our NINHO
products for theiruse of regenerative
agricultural practices.

Wheat and cereals
Nestlé US is investing to help bring regenerative
agricultural practices to wheat farms within
its DiGiorno pizza supply chain. Througha combination of financial and technicalresources, the program is helping wheat farmers
adopt regenerative agricultural practices suchas planting cover crops, eliminating or reducing
tillage and reducing the use of pesticides intheir fields. In 2023, the initiative covered over
40 000 hectares of farmland, nearly double
the hectarage used to grow the wheat used in
DiGiorno products.

convert into real-life actions. By January 2023,
the players' in-game points had led directly tothe planting of 22 km of hedgerows in France.

The Landscape Enterprise Networks (LENs)
initiatives in Hungary, Italy, Poland and theUnited Kingdom bring together farmers, experts
and businesses. The collaborative projects
highlight the economic value to farmers of wheat
and other crops, of ecosystem services, and also
help establish measures to protect and enhancethem. In the United Kingdom, results for 2023
included seven kilometers of hedgerows planted
and 16 000 hectares of land worked on using
regenerative agricultural practices to deliver soil,
water health and biodiversity improvements.

In Côte d’Ivoire, Indonesia and Mexico, webegan piloting financial support programs
to promote the transition to regenerative
agriculture and higher incomes. These cover
over 2 800 smallholder farms across the three
countries. In total, Nestlé secured over 180 000
tonnes of green coffee from farmer groups using
regenerative agriculture methods.

Nestlé France remains committed to theSols Vivant (Living Soils) initiative. The initiative
promotes the widespread uptake of farming
approaches and economic models aligned
to regenerative agricultural practices, which
support soil health. Working with industry
partners, the project expanded in 2023 to reach
340 farmers, 15 suppliers and produce 115 000
tonnes of raw materials – mainly wheat, but alsocorn, sugar beet and vegetables.
Nestlé France has been using gaming to begin
engaging and educating consumers on this
topic. The team has created Farmtopia, aninnovative Minecraft server to reach younger
generations in a playful way, via learning quests
and mini-games. Challenges help players
acquire knowledge and earn points which thenTable of contents

More regenerative practices on farms

CoffeeDuring 2023, Nescafé Plan 2030 trainings onregenerative agricultural practices reached morethan 148 000 farmers in 16 countries. Nescafé
distributed 21 million improved, high-yield coffee
plantlets in 2023, many of them resistant todiseases or drought. In addition, the improved
high-yield plantlets distributed by Nescafé
should reduce the use of agrochemicals.

Dairy
Projects to expand regenerative agriculture andclimate practices are happening in all directsourcing countries. To increase scale, milk pricing
incentive programs have been successfully
implemented in Argentina, Brazil, Chile, Spain,
Switzerland and the United Kingdom.
Our dairy projects included the ongoing
Nature por NINHO certification program in Brazil.
This now includes regenerative agricultural
practices, rewarding farmers for adopting them.
Certified farmers have reported improved soil
health and biodiversity. A total of 155 farms havereached an advanced level of expertise, with
9 200 hectares of land impacted and a water use
reduction of more than 75 million liters.
In the United Kingdom, all of Nestlé’s fresh milk
suppliers have been working to a regenerative
agriculture plan since December 2021. Measures
include a focus on pastures that are made up of

several species of grass to increase biodiversity.
Regenerative farming has led to improved
soil and animal health, and the average GHG
emissions of farms have been reduced by 19% in
the first two years. Over 35 000 new trees havealso been planted in hedgerows and fields.
Fruits and vegetables
United States' fruit and vegetable growers
supplying Gerber infant food received training
and incentives to adopt regenerative agricultural
practices, such as increasing biodiversity
in orchards and fields. We deployed ourFarm Assessment methodology and the
Cool Farm Tool to monitor the improvements
measured on farms. Growers reported carbon
sequestration of about 2 000 tonnes CO₂e, with27 (out of 77) farmers achieving an ‘advanced’level of practice.
Exploring seaweed
In many regions of the world, food production
relies on synthetic fertilizers. Their overusecan negatively affect soil health, biodiversity,
water and air, as well as the climate. Purina
has brought together a consortium of experts
in seaweed biostimulants, plant health andsoil science to launch a three-year academic
study on the possible role of seaweed-based
biostimulants in regenerative agriculture.
Accolades– We achieved #2 overall in the WBA Foodand Agriculture Benchmark ranking of
350 companies. We ranked #1 in the 2023
Nature, Governance and Strategy and Social
Inclusion benchmarks, and we were cited
for “being one of the few companies toapply a mitigation hierarchy principle to [...]
biodiversity-related targets.”– Investor group FAIRR recognized Nestlé forhaving “taken the step of setting financial
targets to support farmers within their supply
chains, aiming to incentivize the adoption ofregenerative agricultural practices.”

Creating Shared Value and Sustainability Report 2023

24

Outlook
The Regenerating Together initiative, hostedon the Sustainable Agriculture Initiative (SAI)
Platform, means we now have an internationallyaligned approach to regenerative agriculture
for our sector. As the techniques are adopted
by more growers and producers of food, SAI
will continue to improve its framework andtools. These will support the monitoring of farm
practices and aid the global transition toward
regenerative agriculture.
Technologies are being developed to ease themeasurement of soil organic matter and various
soil health parameters. These include automatedsoil sampling, digital sensors, or combinations ofremote sensing with local ground assessments.
Technology will also increasingly help farmers
in other ways. Satellites can enhance the datacollection of farming practices such as the useof cover crops, zero tillage, crop rotation andriparian buffers.
We will continue to collaborate with multistakeholder initiatives including the SAI and
One Planet Business for Biodiversity, now under
the auspices of the World Business Council
for Sustainable Development (WBCSD) and
REGEN10. This collaborative approach aligns
with the conclusions of the Food and Land Use
Coalition’s 2023 report ‘Aligning regenerative
agricultural practices with outcomes to deliverfor people, nature and climate.’ We look forward
to more partnership on this vital topic.
Ultimately, the broad recognition of aharmonized and comprehensive outcomesbased framework for regenerative agriculture
will help with measuring progress against
the COP28 Action Agenda on Regenerative
Landscapes, launched in December 2023
at COP28.

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More regenerative practices on farms

Polish farmers
using regenerative
agricultural practices
Farmland dominates the
Polish landscape with morethan 60% of the country
given over to agricultural land,
creating a huge opportunity forsustainable farming.
The agricultural sector is vital to thePolish economy and is growing fast.
The value of Polish agri-food productexports was estimated at USD 47.6
billion in 2022, a year-on-year growthof around 26%, according to thePolish Investment and Trade Agency.
As a young and passionate group,
farmers in Poland care about the
future of their farms and the planet –especially ways to improve Poland’s
agricultural soil quality.
Nestlé has partnered with Krakow
University of Agriculture, theGrowers Association, Agrosimex andSyngenta. Together, we have been
supporting Polish farmers to help

The results, from more than 200
soil samples and farm primarydata, processed using our Farm
Assessment methodology, the Cool
Farm Tool and Cradle-to-Farmgate
lifecycle assessments conducted by
Krakow University of Agriculture,
have proved encouraging. In thelast year, they have helped Nestlé
to design regenerative agricultural
practices aimed at increasing soilorganic matter and the potential for
carbon removals.

Young farmers in Poland
are leading the way toward
healthier soils.

them restore soil health and quantify
the carbon capture potential of theirfarms under the new EU Green Deal –a pioneering plan to make Europe
climate neutral by 2050.
In our drive toward regenerative
agriculture, we have been working
with apple and carrot farmers in
Poland to build understanding aroundthe benefits of cover crops and humic
acids. The use of these regenerative
agricultural practices can foster
carbon sequestration in the soil andincreases the capacity of soils to holdwater – all while reducing the use ofsynthetic agrochemical inputs.
We sponsored the planting of covercrops in 220 hectares of farmland
and the use of humic acids in afurther 180 hectares. Soil health wasmonitored alongside three weather
and pest monitoring stations which
helped to optimize decisions andfurther reduce inputs at 28 farms.

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25

Waterstewardship

Context
Agriculture accounts for 70% of all water
withdrawals worldwide. In some regions, water
consumption to produce food is increasingpressure on the water cycle. Agricultural inputs
can also affect the quality of water resources.
Our efforts go beyond the direct impacts of ourfactories, to focus on watershed health andresilience for future generations.
Good management and restoration of water
resources has a positive impact on ecosystemservices, as well as on soil health andbiodiversity. Local communities also benefit,
with more fertile growing environments
and improved access to sanitation anddrinking water.

To track our progress, we put in place
the following KPIs:
To reduce water use in our factories by 6 million m3
between 2021 and 2023
(million m3)

Total water withdrawn
Total water consumed

2021

2023

2022

Total water discharged
Total water use reduction

39.0

98.0

43.9

97.1

47.2

95.6

Water
withdrawn
million m3
59.0

All our factories, without exception, need waterto operate properly and water stress may impact
their production capacity through potential
restrictions. A more limited access to water may
also disrupt the production of crops or food fromour suppliers and business partners and theavailability and affordability of key ingredients.
The above factors may potentially lead to supply
disruptions, regulatory action and impacts on our
reputation. For more on business risks, pleaserefer to the 2023 Nestlé Annual Review.

53.2

Total water use
reduction* inmillion m3

2.30

2.38

48.4

3.00

* This corresponds to the sum of water use reductions obtained from improvement projects
realized in factories during the year.

SDG contributions

In 2023, in the context of record
temperatures, the stewardship of water
was more critical than ever before. Itis essential to our business operations
and supply chains, for the communities
in our value chain and ecosystems.
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Water stewardship

During 2023 we worked to:– Reduce water use in Nestlé factories, having delivered anabsolute water use reduction of three million m3 of water,
exceeding our target of six million m3 between 2021 and 2023.
– Protect the right to water and sanitation by launching our new
Human Rights Salient Issue Action Plan on the human right towater and sanitation.
– Steward water resources across our Nestlé Waters sites:
23 Nestlé Waters sites (52.3%) were certified to the Alliancefor Water Stewardship standard, versus 21 sites in 2022.

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides
details and definitions and can be found here.

Creating Shared Value and Sustainability Report 2023

26

Approach

Strategy and oversight
To address the challenges, we adopted fivestreams for our water strategy. We think beyond
our own operational water performance toprotect watershed health, meaning the qualityof water resources and their ability to support
the natural environment, communities and theeconomy. We also recognize the importance ofwatershed resilience, seeing water resources aspart of a wider and interdependent system, andour actions confirm this.
Agricultural supply chain
Recognizing that agriculture accounts for 70% of
all water withdrawals globally, Nestlé promotes
water use efficiency within its agricultural supply
chain. We assess the water footprint of key
agricultural commodities, such as coffee, cocoa
and dairy, and identify opportunities to improvewater management practices, for example
through our regenerative agriculture programs.
Water is one of the five pillars of our
Nestlé Agriculture Framework: diverse
cropping systems and livestock integration*,collective and landscape actions, soil health,biodiversity, water security and quality. The
Nestlé Responsible Sourcing Standard defines
mandatory best practices on water use andmanagement for all our suppliers.

Nestlé factories
To ensure regulatory compliance and help
protect the environment, we closely monitor all
water volumes entering and exiting our sites.
Our context-based approach to water use isbased on local risk assessment and customtailored solutions for best-in-class water use
efficiency in all our operations. We actively
promote recycling and reusing water, while
ensuring the quality of the water we discharge
meets local requirements and respects ourinternal standards.
We perform regular assessments of local water
resources and water use inside and outside ourfactories, including possible future risks. We
engage with stakeholders and monitor external
research findings.

Water in communities
Safe water, sanitation and hygiene (WASH)
contribute to health, well-being and community
resilience. Our new Human Rights Salient Issue
Action Plan on the right to water and sanitation
addresses this area in depth (see Performance
section). We will be deploying this action planfurther in the next year.
Water partnerships and advocacy
Furthering our impact, we focus our advocacy
on creating stronger collaborations within thisspace, to address coordinated positive actions
to help conserve water. Nestlé participates in
the World Bank’s 2030 Water Resources Group.
We are a member of the UN Global Compact’s
CEO Water Mandate and a signatory to its
WASH4Work initiative. We are a financing
member of the Alliance for Water Stewardship(AWS) and participate in its TechnicalCommittee and its Agriculture Working Group.

Nestlé Waters
In order to help contribute to the conservation ofwater resources around our Nestlé Waters sites,with leading bottled water brands including
Perrier, San Pellegrino, Vittel and Buxton, we
aim to lead the regeneration of the water cycle
and to help create a positive water impact
everywhere our bottled water business operates
by 2025.
Further, we are also committed to certifying
all Nestlé Waters sites to the AWS Standard
by 2025.

A rainwater collection
system at our Lipa factoryin the Philippines.

* Wherever possible and relevant.

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27

Internal viewpoint

Solís:
Every last drop
Ignacio RosésBusiness Executive Officer Food,
Nestlé Spain

Nestlé Solís recognized for improving
water stewardship factory standards andacross the supply chain.
In 2023, the Alliance for Water Stewardship(AWS) awarded the Solís tomato plant in
Miajadas in Spain ‘Platinum’ certification, fortaking ‘performance in water management tohigher levels.’
Our Spanish Solís tomato brand was seeking tofind ways of reducing water use at the factoryin Miajadas, and across the tomato value chain,starting with the farms which supply us. Solíssources all the tomatoes they need within 50 kmof the plant, meaning the team could work withlocal farmers to implement more water-efficient
practices, such as drip irrigation.
The sustainability journey began in 2013 with
‘Solís Responsable.’ Since then, the project has
generated a reduction in total water use of 1.4
million m3, the equivalent of 2 600 people’s dailywater consumption over more than 10 years.
At the same time, there has been an 8% dropin pesticide usage and a 6% drop in fertilizer
usage, helping to ensure the quality of water inthe local area for the future.

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Water stewardship

Adrian Sym, Chief Executive Officer, AWS:“At the Alliance for Water Stewardship, we bring
together stakeholders who are serious about
preserving the world’s most precious resource.
AWS is a global collaboration between public,
private and non-profit sectors. Our members
define the AWS Standard which represents
best practice in water stewardship. Sites
achieving certification to the AWS Standard
can be considered at the leading edge of water
stewardship practice.”“Having used the AWS Standard in their bottled
water business, we welcome Nestlé’s decision toextend their stewardship work to other productlines with the Solís brand of tomato sauces,
produced solely at the AWS-certified Nestlé
Miajadas factory in Spain. We welcome Nestlé’scommitment, not just to use less water but also
to improve water quality in the areas that supply
tomatoes for Solís sauces. This commitmentaligns with our Mission to ignite and nurture
leadership in credible water stewardship”.

“While Solís tomato sauces have become moresustainable, they have also become more profitable(+11.2% versus 2013), showing that business andenvironmental sustainability go hand in hand.”Ignacio RosésBusiness Executive Officer, Food, Nestlé Spain

Given that water scarcity is not only aquantitative issue but also a qualitative one,
we closely monitor the quality of the water wereturn to the environment.
The figure reported for the quality of effluentstreated internally applies to 51% of Nestlé total
effluent water, which includes effluents sent tosurface water bodies, and effluent water used
for irrigation. For the remaining effluent volume
sent to a third party for treatment, we work toensure that they have the capability and capacity
to treat the effluent water in order to meet the
local regulations.
Water is an essential
resource for supporting
the natural environment,
communities andthe economy.

Performance
Water use in our factories
We continuously strive to improve water use in
Nestlé factories. In 2023, total water withdrawals
at Nestlé factories were 95.6 million m3 (versus
97.1 million m3 in 2022).
We delivered an absolute reduction of 7.6 million
m3 of water, exceeding our goal to reduce water
use in our factories by 6 million m3 between
2021 and 2023. During 2023, we measured
our factories’ water performance in thefollowing ways:– Total water withdrawn from surface water(5.0 million m3), from ground water(58.8 million m3), from produced water(1.4 million m3) and from third-party suppliers(31.8 million m3).
– Total water discharged through 2023 was(48.4 million m3); our total water consumed
was (47.2 million m3).
– Quality of effluents treated internally anddischarged to the environment (see table).
– Water withdrawn in regions with high orextremely high baseline water stress (36.7%).
– Water consumed in regions with high orextremely high baseline water stress (48.6%).
– One water-related incident that incurred afine or penalty in 2023 as per the Carbon
Disclosure Project (CDP) reporting framework.

During 2023, we measured the quality of thewater discharged from our factories through the
KPI 'quality of effluents treated internally anddischarged to the environment'.
Quality of effluents treated internally and discharged tothe environment
Category

2023

Total direct output of Chemical Oxygen
Demand load to the environment (tonnes)

1 911

Aggregated annual Chemical Oxygen
Demand concentration (mgO2/l)

81% effluent water treated internally51

Water withdrawal and consumption
Percentage of water withdrawn inregions with ‘high’ or ‘extremely
high’ baseline water stress

Percentage of water consumed inregions with ‘high’ or ‘extremely
high’ baseline water stress

36.7%

48.6%

(36.1% in 2022)(51.5% in 2022)

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Session advising farmers
on water management
techniques near Nestlé’s
Moga factory in India.

Water in communities
In Q1 2023, we launched our new Human Rights
Salient Issue Action Plan on the human rightto water and sanitation. The action plan aims
to focus attention on preventing and mitigating
WASH risks in our operations, tier-one suppliers
and agricultural supply chain. It forms part ofa suite of action plans covering all our salient
human rights issues. We use our Community
Relations Process tool to engage with our
local stakeholders and discuss challenges andopportunities, including WASH, which helps
to tailor our intervention. In 2023, we used it toidentify opportunities for remediation in severalof our factory locations.

Water partnerships and advocacy
In 2023, Nestlé participated in a global working
group to design the latest standardized
approach and indicators to quantify how
sound water stewardship can generatesocial, economic and environmental benefits.
Convened by the World Resources Institute,the consortium updated the Volumetric Water
Benefit Accounting methodology. Known as
VWBA 2.0, this method enables users to assess
the volumetric benefits that water-related
projects bring.
During 2023, Nestlé was one of the 17
companies selected to pilot-test the new
Science Based Targets Network (SBTN)
Freshwater target-setting methodology. Thispilot allows us to perform a detailed assessmentof water-related impacts, including risks andopportunities within our value chain, following
a strict science-based approach. We expect
our contribution to the pilot will help refine
and improve the method before the official
public launch.
We also co-published a report with Human Right
2 Water, prepared in collaboration with the InterAmerican Development Bank and the Water
Research Commission. The report examined
how countries can legislatively safeguard
essential elements of the human right to waterin worsening climate conditions, and what thismeans for service providers and businesses.

Table of contents

Water stewardship

Nestlé Waters projects aredesigned to help regenerate
the local water cycles.

Nestlé Waters
Nestlé Waters follows the AWS International
Water Stewardship Standard at all its sites. The
AWS is a global membership collaboration that
promotes the adoption of a universal frameworkfor sustainable water use – the AWS Standard.
We participate in the work of the AWS TechnicalCommittee and Agriculture Working Group,and have supported the AWS Board and its
International Standard Development Committee.
Since 2021, Nestlé Waters has been identifying
and implementing projects designed to help
regenerate local water cycles in areas where

we operate. We are designing projects thatenable watersheds to capture more water thanis used in bottling operations. More than 40
water regeneration projects at our Nestlé Waters
sites are underway, each one tailored to local
challenges. These are a mix of nature-based andtechnical solutions to improve water quality or
quantity and help create a positive water impact.
During 2023, 23 Nestlé Waters sites werecertified to the AWS standard (versus 21 sites in2022), representing 52.3% of our sites that are
required to be certified.

4.4 million m³

volumetric water benefits
delivered by Nestlé Waters’ local
water stewardship projects

Nestlé Waters in action
Nestlé Waters regeneration projects:
Issue

Mitigation and benefits

Upper Tunuyan River Run-off from free-flowing wells was being lost
basin, Argentina
before it could be used by the local community.

Working with the Irrigation Department of
Mendoza, we installed manually closing butterfly
valves to minimize water loss.

Naleczowianka,
PolandDegraded water was affecting the quality of
the Vystra River, downstream of the municipal
wastewater treatment plant.

We installed a new UV lamp that now improves
the water quality before it leaves the municipal
plant, supporting the river and its ecosystems.

Herrera del Duque,
Spain

Local authorities and stakeholders identified
pressures on biodiversity linked to climatechange impacts on the local river stream.

The local team planted trees on the banks to
reduce evaporation and protect the habitatof an endangered fish species, enhancing
biodiversity. Water effluents from our factory
provide irrigation.

Ayutthaya,
ThailandHousehold waste and neglected hyacinth
growth was polluting the Kanom Jeen Canalin Sena District, affecting local livelihoods
and biodiversity.

We worked with the Youth Water Guardian
initiative to improve water conservation andquality via cleanup programs along 21 km of thecanal, helping restore biodiversity and benefiting
the community.

Derbyshire,
United Kingdom

The Ecclesbourne River had been diverted intoa weir, preventing local fish from circulating
along the river channel and impacting
overall biodiversity.

We supported the river’s restoration back to
its original channel. It now bypasses the weir,enabling 28 km of the river and its tributaries tosupport many fish and other aquatic species.

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29

Improving irrigation
and water use

their crops need irrigation and how
much. In addition, software has beendeveloped that allows farmers andresearchers to remotely monitor
the soil moisture level and maketimely interventions.
So far, sensors have been installed on
more than 220 hectares. By making
farms more efficient, we can help
ensure that agriculture contributes
to preserving Pakistan’s precious
water resources for the generations
that follow.

Working with farmers inPakistan to adopt highefficiency irrigation systems.

OutlookDuring 2024, we will continue to work toward
improved water stewardship, including
watershed health and resilience for thelong term.
We will continue supporting the World
Resources Institute to build the Volumetric
Water Benefit Accounting 2.0, a standardized
method for implementing and valuing water
stewardship activities.
We are also beginning an in-depth study toquantify the water co-benefits delivered by theexisting regenerative agriculture, and naturebased solution projects within our Nestlé
Net Zero Roadmap, and further promote
their implementation.

We are partnering withindustry and researchgroups to assess theimpacts of our waterrelated projects.

Over 90% of Pakistan’s water is usedin agriculture and making the sector
more water-use efficient is essential.
In 2017, Nestlé Pakistan launched
the Caring for Water initiative.
It has three pillars – factories,
communities and agriculture – basedon a collective action approach withdiverse stakeholders.
So far, the biggest reductions in water
usage have come from the agriculture
sector. Together with farmers,
we have been able to innovate
growing methods that reducewater use by millions of liters of thisessential resource.
Most water in farming is used toirrigate crops, but conventional
flood irrigation methods often resultin 50% water loss. To change this,we partnered with farmers andresearchers to implement two key
water-reducing measures: drip
irrigation and affordable smart soil
moisture sensors.
In drip irrigation, water is applied
onto the soil at very low rates froma system of small-diameter pipes,

Table of contents

Water stewardship

resulting in targeted irrigation. By
2022, we had supported farmers to
install drip irrigation covering over
55 hectares of farmland in Punjab,
and an additional 30 hectares in
Sindh. Mustapha Yousaf, one of
the farmers working with Nestlé,commented that this is resulting
in 30–40% less water use while
increasing yields and reducing theneed for fertilizers.
For local farmers, implementing
technological solutions to ensure
efficient irrigation can be expensive.
We collaborated with researchers at
Lahore University of Management
Sciences to locally develop costeffective, smart soil-moisturesensors. Sensors tell farmers when

Bubbler irrigation helps toensure that trees receive an
optimal amount of water.

Drip irrigation is improving water
use efficiency and increasing
yields for farmers in Pakistan.

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Responsible
sourcing

We aim to source ingredients thatare traceable and which have been
produced using methods that foster
practices detailed in our Responsible
Sourcing Standard.

Table of contents

Responsible sourcing

By the end of 2023:– 36.2% of our key ingredients were Responsibly Sourced(see Context, KPI renamed in 2023).
– We sourced 15.2% of our key ingredients from farmers
adopting regenerative agricultural practices, in line with
our target of 20% by 2025 and 50% by 2030.
– We completed the test-at-scale phase within the timeline,
comprising 10 000 cocoa-farming families in our Nestlé
Cocoa Plan income accelerator program which aims to
improve the livelihoods of cocoa-farming families.

To track our progress, we put in place the following KPIs:
100% certified sustainable palm oilsourced by 2023

100% cocoa sourced throughthe Nestlé Cocoa Plan by 2025

100% coffee sourced throughNescafé Plan 2030 or Nespresso AAA
Sustainable Quality™ Program by 2025

100.0% in 2023

85.5% in 2023

92.8% in 2023

71.0% in 2022

68.3% in 2022

88.0% in 2022

71.1% in 2021

50.6% in 2021

82.8% in 2021

Nescafé Plan 2030
or Nespresso AAA
Sustainable Quality™ Program
coffee sourced

Certifiedpalm oil sourced

Nestlé Cocoa Plancocoa sourced

100.0%

85.5%

in 2023

in 2023

In 2023, 100% of our crude palm oil (CPO) was from
Roundtable on Sustainable Palm Oil (RSPO) certified sources.
55% of our Palm Kernel Oil (PKO) volume was covered withRoundtable on Sustainable Palm Oil (RSPO) certified sources
and the remaining with 20 times CSPO RSPO volumes.

The % cocoa sourced through the Nestlé Cocoa Plan includes
volumes of Rainforest Alliance certified mass balance cocoa.
We also include verified Nestlé Cocoa Plan volumes and farmdata provided by suppliers.

92.5% Nescafé coffee sourced through the Nescafé Plan
(87.0% in 2022).
94.4% Nespresso coffee sourced through the Nespresso AAA
Sustainable Quality™ Program (93.1% in 2022).

100% cage-free eggs
sourced globally by 2025

100% of key ingredient volumes to be
Responsibly Sourced* by 2030

SDG contributions

72.9% in 2023

36.2% in 2023

71.7% in 2022

22.0% in 2022

76.3% in 2021

16.3% in 2021

Cage-free eggs sourced

Ingredients Responsibly Sourced

72.9%

36.2%

in 2023

in 2023

This KPI measures the performance of volumes at origin
level against the requirements of our Responsible Sourcing
Standard and the progressive delivery of positive impacts on
people, nature and climate in Nestlé’s sourcing origins.

92.8%
in 2023

Our Reporting Scope and Methodology for ESG Key Performance
Indicators document provides details and definitions and can befound here.
* Renamed 'Ingredients Responsibly Sourced'. All methodologies,
metrics and targets remain the same as 2022. The definition
applies except for low-risk countries where traceability is
not required.

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31

Context

We have also identified priority materials
and ingredients that present a higher risk ofenvironmental and/or social issues. For these,
we work closely with our direct suppliers andother partners to conduct supply chain mappingand carry out assessments in the upstream
supply chain.

The pressures on global food systems areintensifying. From biodiversity impacts to water
stress, resource scarcity and soil degradation,
large food and beverage companies havevulnerable supply chains. We also have huge
opportunities to make a positive and lasting
impact on the ecosystems we source from andthe communities that grow and harvest the raw
materials we procure.
In 2023, we have renamed our Sustainably
Produced KPI to Responsibly Sourced. All
aspects remain the same as reported in previous
years, including methodologies, metrics andtargets. We have evolved the name to moretransparently reflect the breadth of this KPI
which measures the performance of our volumes
at origin level against the Responsible Sourcing
Standard and the progressive delivery of positive
impacts on people, nature and climate. For more
information on the definition of the KPI, pleaserefer to our Reporting Scope and Methodology
for ESG Key Performance Indicators.
As a business that has been operating forover 150 years, we aim to have 100% of our
key ingredients Responsibly Sourced by
2030. This will, we believe, help our supply
chain to become resilient for the decades tofollow. We continue to map our supply chains,assess human rights and environmental risks
and opportunities and implement actions toadvance regenerative food systems at scale.
Improving the traceability of the origins of ourraw materials and understanding how they
are produced is an important element of our
responsible sourcing practices. Insufficientlevels of traceability may present risks to Nestlé,
including societal and environmental impacts,
supply disruptions, regulatory action, loss oftrust and impacts on our reputation. For moreon business risks, please refer to the 2023
Nestlé Annual Review.

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Responsible sourcing

This starts with knowing the origin of raw
materials, improving the performance against our
Responsible Sourcing requirements and working
toward positive outcomes for people, planet andclimate. All methodologies and metrics remain
the same as for the ‘Ingredients Produced
Sustainably’ KPI, previously published.

Once fully implemented, Responsible Sourcing
will ensure that for our 14 key ingredients:– The material is either traced to a low-riskcountry or is traceable back to its origin on a
farm or group of farms.
– Human Rights and Environmental Due
Diligence (HREDD) systems are in place at thedirect supplier level.
– The volumes Nestlé buys through its direct
suppliers are compliant with the Nestlé
Responsible Sourcing Standard requirements
at production level.

Our work on Responsible Sourcing is designed
to work toward compliance with our Human
Rights and Environmental Due Diligence(HREDD) and the delivery of positive impacts
on people, nature and climate in Nestlé’ssourcing origins.

In many of our sourcing
locations, newly planted
trees create natural barriers
that help protect crops
and soils.

Approach
Nestlé’s suppliers are central to achieving ourambition to advance regenerative food systems
at scale. The foundation of this work with
suppliers is the Nestlé Responsible Sourcing
Standard, which sets out non-negotiablerequirements and ways of working with ourdirect suppliers, and which we require themto cascade down to the next tiers of the
supply chain.
We verify alignment to and compliance withthis Standard through different methods at
different tiers of the supply chain. These include
self-declaration, desk-based assessments
and second- or third-party site audits orassessments, and sustainability certification(including mass balance). The tools used toassess compliance depend on the supply chain
tier and the level of risk.

Our Responsible Sourcing at a glance

To be classified as Responsibly Sourced, materials must meet our strict criteria,
including traceability

Regenerative
Agriculture

Implementing regenerative agriculture
practices at the origins of our ingredients

Responsible
Sourcing
Requirements

Fostering the implementation of our
Responsible Sourcing Standard at theorigins of our ingredients

Traceability*

Identifying the traceability of materials
purchased by Nestlé back to their origins* Management systems exist in order to recall all farmer names and locations linked with raw material delivery to Nestlé.

Creating Shared Value and Sustainability Report 2023

32

Performance

Palm oil
During 2023, 100% of our crude palm oil volume
was from Roundtable on Sustainable Palm Oil(RSPO) certified sources. Market shortages
meant that we were only able to purchase 55%
of our kernel oil volume from RSPO sources. To
help prevent future supply issues, we decided tosend a strong market signal. It takes an averageof 10 tonnes of crude palm oil to produce atonne of kernel oil. We purchased certificatesfor RSPO-certified crude palm oil equivalent to
20 times (1 339 751 tonnes) the missing volume
of certified kernel oil (66 988 tonnes). We
supported the certification journey of 53 700
smallholders by purchasing their RSPO credits.

In 2023, we achieved 36.2% of our key
ingredients Responsibly Sourced, alignedwith our traceability, environmental and social
requirements, or originating from countries
deemed to be low risk*.
Disclosures on commodities
CoffeeOver a decade ago, we launched a global coffee
sustainability initiative called the Nescafé Plan.
We have now defined our sustainability ambition
for the rest of the decade. Through the Nescafé
Plan 2030, we are accelerating our action to
support a more inclusive and sustainable future
for the coffee sector, using our heritage, scaleand reach to help uplift lives and livelihoods
from farm to cup. In 2023, we sourced 92.5%
of our Nescafé coffee through the Nescafé
Plan. More than 21 million improved coffee
plantlets were distributed to farmers during
the year. A total of 2 000 farms in key locations
such as Colombia, Mexico and Vietnam wereindependently assessed on their adoption ofregenerative agricultural practices.
Ranked #1 for coffee sustainability
by Coffee Brew Index
Nestlé ranked first for coffee sustainability
in the 2023 Coffee Brew Index Coffee
Barometer Report. The publication
recognized that Nestlé has a cohesive andcomprehensive coffee sustainability strategy
and that its policies, objectives and actions
incorporated social, environmental andeconomic dimensions of coffee production.

Cocoa
The Nestlé Cocoa Plan is our plan for building
a more sustainable supply chain for cocoa. We
are working with farmers, communities andlocal and international organizations to develop
and implement solutions to the numerous
challenges facing cocoa-farming communities.
The Nestlé Cocoa Plan now reaches more than
179 000 farmers. The initiative is helping to
improve the livelihoods of growing communities
and we are on track to reach our target of 100%
cocoa sourced through the Nestlé Cocoa Planby 2025. We made significant progress in Brazil,
where our program was less developed. In Côte
d’Ivoire, our income accelerator program has
empowered more than 10 000 farmers with skills
and knowledge on good agricultural practices
and environmental protection, and has enabledmore children to register in school, to reducechild labor risks.

Engaging local partners isessential to assessing risk
in our palm oil supply chain.

Vegetables
We source vegetables for our brands such as
Maggi and Winiary from a diverse range oflocations within countries including Belgium,
France, Germany, India, Italy, Poland, Serbia,
Spain, the United Kingdom and the UnitedStates. We support both large farms andsmallholders with practices bespoke to theircontext, including the introduction and expansionof agroforestry to help them increase biodiversity
and yields and reduce farming costs.
Through regular crop rotation, soil covercrops and the application of supplementaryorganic matter, soils can retain nutrients andabsorb and retain more GHG emissions. Withfewer inputs to the soil, this also helps toconserve the quality of local watersheds.

Animal welfare
All Nestlé suppliers must follow the Nestlé
Responsible Sourcing Standard, which lays out
our sourcing requirements for meat, poultry, egg
products and dairy.
We are working to meet our commitment tosource 100% cage-free eggs globally, achieving
72.9% at the end of 2023. We continue towork with our suppliers to develop in-country
resources and source cage-free eggs whenavailable, and remain focused on meeting ourtarget by the end of 2025.
Reporting and transparency
We continue to regularly report on theperformance of our supply chain, including
Nespresso’s The 2030 Positive Cup Strategy
and the Nespresso 2022 Positive Cup Report,
which reflect on progress toward our goals
and milestones.
The Nescafé Plan 2030 Progress Report assesses
the positive impacts of regenerative agriculture
for coffee growers.
Working in collaboration with social impact
start-up Open SC, Nespresso is using blockchain
technology to develop digital transparency inits value chain. In the Democratic Republicof the Congo, QR codes were used to enableconsumers to track the provenance of theircoffee down to farm level.

* Raw materials originating from countries categorized as low risk forenvironmental, social and governance issues using data from Verisk
Maplecroft are not subject to assessments.

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33

External viewpoint

Growing
impacts andknowledge,
together
Eduardo de MiguelDirector,
Fundación Global Nature

Capitalizing on a joint commitment tobetter sourcing.
I have been at Fundación Global Nature (FGN),
since the start, 30 years ago. I’ve always had apassion for wetland ecology and biodiversity.
Working in a small farmer membershipassociation, as it was then, meant that I could
make some kind of living while learning about
how to contribute positively to our ecosystems.
The collaboration with Nestlé began seven years
ago and has grown. The huge diversity of theirvalue chain and their alignment with what weare trying to achieve in sourcing means we cantry things, fail sometimes, succeed in others andbring the farmers and suppliers with us.
The secret to this lasting relationship has beentransparency and trust. Our goal is to develop
sustainable farming systems, whose biodiversity
and traditional varieties and breeds are better
preserved. We want an agri-food industry
with less environmental impact that works
concertedly and shares the responsibility along
the food chain.
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Responsible sourcing

FGN is also aiming for higher efficiency inthe mitigation and adaptation of farming
systems to climate change. We also workon the sustainable use and management of
natural resources in wetlands to help secure
their conservation.
The first time we were contacted by Nestlé
was to improve tomato production. It wasa very small project, but it didn’t take long
before we jumped to other vegetables andto other categories such as cereals or dairy
that face different biodiversity and climaterelated challenges.
In October, we had a meeting in Vevey,
Switzerland, with all the suppliers in the
Vegetables and Spices Program. We shared
an amazing day with representatives from 30
companies from 14 countries. Some have beenworking together with Nestlé since 2018, to
improve environmental and ethical performancein the supply chain for ingredients, including
many vegetables and spices.

We have the potential toreach 500 000 farmers
to embed Responsible
Sourcing methods.

Outlook

We realized that together we have made real
improvements, in terms of water consumption,
the use of nitrogen and supporting biodiversity –which is precisely the reason why we decided tojoin forces with Nestlé in this program.
Looking ahead, we are developing varied andcomplementary indicators. These standardized
measurements we will obtain using a variety oftechnologies, ranging from manual observations
to satellite images, giving us a better perspective
on our partners’ positive impacts.

In 2024, we will continue to seek deeper
supplier and farmer engagement to improve
the traceability of our ingredients. We will also
work to improve production practices for the
long-term viability of agricultural supply chainsand communities.
FGN monitors
biodiversity
and ecology
of wetlands
in Nestlé's
supply chain.

Projects in development include working to
improve our suppliers’ HREDD systems. This
includes the development of a tool to assess thematurity of our suppliers' HREDD management
systems, with the objective of helping them
remediate any issues identified.

We have the potential to reach 500 000 farmers
with whom we can share, develop and embedResponsible Sourcing methods. We can
support with technical assistance and, whereappropriate, financial aid to embed practices
over the long term. By continuing to work closely
and proactively with suppliers and farmers, we
expect to increase the availability of ingredientsfor the long term.

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34

Advancing
human rights

Context
People and respect for human rights are at
the core of Nestlé’s culture and values, andone of our key Corporate Business Principles.
Our commitment to respecting and promoting
human rights is critical to our business strategy
and a key part of our ambition to enable a justtransition to a regenerative food system at scale.

To track our progress, we put in place
the following KPI:
Volume of cocoa sourced from all countries covered by
the CLMRS* or other dedicated due diligence systems,with mass balance** included***Our vision of a regenerative food system has
people at the center. Along with sustainable,
nutritious and affordable food for the global
population, a regenerative food system needs
to provide resilient, fair livelihoods and dignified
work for people across the world to support
themselves and their families.
A growing body of legislation and the changing
expectations of stakeholders mean there is moreinterest in Nestlé’s actions on respecting andpromoting human rights across its value chain.
Acting in an ethical manner is crucial to scale
positive impacts across diverse geographies andprotect Nestlé’s business and reputation. Any
incidents or concerns linked to human rights
violations may potentially lead to impacts on
individuals, regulatory action and impacts on our
reputation. For more on business risks, pleaserefer to the 2023 Nestlé Annual Review.

70.6%
in 2023* The Child Labor Monitoring and Remediation System (CLMRS).
** Mass balance is ‘a sourcing method that allows for certified and non-certified ingredients tobecome mixed during the shipping and manufacturing processes.’ The Rainforest Alliance
traceability systems ensure that the volumes of certified ingredients bought for products with
their seal were grown on certified farms, see here for more information.
*** This KPI tracks our progress on our salient human rights issue: child labor and access to
education. For more details see our section on child labor risks.

SDG contributions

By respecting and advancing humanrights in our value chain, we arecontributing to a resilient future for theplanet and its people.

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Advancing human rights

During 2023, we:– Released a new human rights policy and a set of
dedicated Salient Human Rights Issue Action Plans.
– Further strengthened our governance structure to oversee
the implementation of our Human Rights Framework andRoadmap and associated action plans.
– Continued to implement programs and initiatives on
the ground to assess and address risks and report on
progress and challenges.

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides
details and definitions and can be found here.

Creating Shared Value and Sustainability Report 2023

35

Approach
We aim to use our scale, experience andresources to raise awareness of human rights
risks, promote best practices and empower
people across our operations and within our
supply chains.
We were early adopters of the United Nations
Guiding Principles on Business and Human
Rights. Since 2011, they have guided ourfieldwork and corporate programs in this area.
We also observe other international standards
such as the Organization for Economic Cooperation and Development’s (OECD’s)
Guidelines for Multinational Enterprises.

As part of our framework and roadmap, we haveidentified the 10 most salient human rights issues
for Nestlé. These build on our long experience
carrying out human rights due diligence acrossour business activities and geographies, andreflect the inputs we have collected from local
and global stakeholders along the way.

Labor Association (FLA) and the ILO-led Child
Labor Platform and participate in industry
stakeholder groups, such as the World BusinessCouncil for Sustainable Development (WBCSD),
AIM-Progress and the Consumer Goods Forum(CGF), to help move this agenda forward within
the food and beverages sector.

External support for the implementation of ourSalient Human Rights Issue Action Plans isprovided by a range of expert organizations,
including Verité, Sustainable Food Lab,
Proforest, Landesa, Business for Social
Responsibility (BSR) and others. We also workwith multi-stakeholder organizations, such as
the International Cocoa Initiative (ICI), the Fair

Identifying and mitigating risks
We have programs and tools that help us
identify and mitigate human rights risks. We takepreventive measures in our own operations, aswell as in our direct and upstream supply chains.

Our Human Rights Framework

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Salient Issue
Action Plans

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The Nestlé Human Rights Framework and Roadmap places
due diligence at the heart of our approach and identifies
five key enablers for our work in this area:– Governance and incentives help us integrate humanrights at all levels of our governance structure.
– Policies and control systems ensure human rights areembedded throughout the organization. Links to thematerial policies relating to human rights are provided inthis section.
– Engagement and advocacy help us engage with key
stakeholders and advocate for smart due diligencelegislation and collective action on the ground.
– Strategic partnerships help us partner with thoughtleading and local organizations.
– Transparency and reporting help us provide a highlevel of transparency on the progress we make and thechallenges we face.

le and msees ysts

To ensure the successful
implementation of ourSalient Human Rights
Issue Action Plans, weare developing skills
and capacities at alllevels of the Company.

Our Human Rights Policy expresses our overall
strategy on human rights, from principles tooperational approach and governance. The
Board is responsible for Nestlé’s strategy,organization and oversight. The Executive Board
is responsible for the execution of our approach.
It has set out clear roles and responsibilities
within Nestlé to ensure the implementation of
our Human Rights Framework and Roadmap,
and new Nestlé Salient Human Rights Issue
Action Plans throughout our business categories
and geographies. Our Human Rights Steering
Committee, which is chaired by our EVP Group
General Counsel, oversees the implementationof our salient issue action plans and monitors
our progress.

S tne
r
pa

Our global CARE audit program is our bespoke
compliance audit process. It aims to verify that
all our employees and sites operated by Nestlé
comply with local legislation, our Corporate
Business Principles and our Code of BusinessConduct. External auditors assess compliancewith our Corporate Business Principles against
seven pillars, including human rights.
We verify alignment to and compliance of ourdirect suppliers with the Nestlé Responsible
Sourcing Standard through different
methods at different tiers of the supply chain.
These include self-declaration, desk-based
assessments and second- or third-party site
audits or assessments. The tools used to assess
compliance depend on the supply chain tier andthe level of risk. We are also working to improve
our suppliers’ HREDD systems. This includes
integrating HREDD in supplier contracts
and developing a tool to assess suppliers’
HREDD maturity, with the objective of helping
them improve.

Enabler 5

Tra
ing
nspa
rency and report

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Advancing human rights

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36

External viewpoint

The prevention and mitigation of actual or
potential human rights risks and adverse
impacts in our upstream supply chain starts with
understanding the nature and scale of risks.
Because our approach to human rights due
diligence is risk-based, the measures we take tohelp address these risks need to be prioritizedand should be commensurate with the severityof the impacts on people.
Our risk assessment approach comprises fourinterrelated lenses, each currently at varying
levels of maturity:– Countries in a global context: The Nestlé
responsible sourcing team uses global data
sets such as Verisk Maplecroft and insightsfrom stakeholders on specific raw materials.
Insights are used to select which countries toassess, which suppliers and raw materials toengage on and how to support local teams.
– Country or specific locations: We use data
sets, desk-based risk assessments, grievancereports, information from rights holders
and insights from our Responsible Sourcing
Program. These data are used to guide actions
at national, regional, landscape or site levels.
– Raw materials or business activities: We
use data sets, desk-based risk assessments,
grievance reports, information from rights
holders and insights from our Responsible
Sourcing Program. We use this to prioritizecountries and to decide on engagements at
a sectoral level, and whether engagements
should be global, national or regional.
– Individual suppliers: We combine information
about the maturity level of our suppliers'
HREDD management systems, and site
assessment and grievance information.
This enables us to prioritize suppliers forengagement or support.

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Advancing human rights

Empowering
Honduras’ next
generation ofcoffee growers
Alessandra Pellegrini
Advisor, Gender Equality andSocial Inclusion, Swisscontact

We use this approach to consider both future
and current human rights risks and impacts.
We seek to both prevent and mitigate risks,and help remediate impacts that may alreadybe occurring.
Based on country risk data and on the analysisof the number and volumes of priority raw
materials sourced under our Responsible
Sourcing Program, we have identified priority
countries for most of our salient issue actionplans. This means that some actions will befocusing on these priority countries, while others
are concerned by business or raw material.

Training is helping toencourage young women incountries such as Honduras
to join the coffee growing
industry and to help farms
become more resilient.

Non-profit Swisscontact worked with
Nestlé to develop a training program foryoung coffee farmers on future trends
and new regulations focusing on humanrights, child labor risk prevention andfemale empowerment.
I work for Swisscontact, an independent nonprofit development organization establishedin 1959 by representatives of the Swiss private
sector and civil society. Our development work
focuses on private-sector-led, sustainableeconomic development for improved quality oflife for all. We support underserved communities
with training and education in 41 countries
around the world.
Take Honduras, with its lush highlands’ coffee
growing under threat. We have seen escalatingproduction costs, unpredictable weather
patterns and workforce shortages due tomigration. And these have combined with new
regulations in the EU to put extra challenges
on the country’s main export. Over the past

few years, coffee exports from Honduras have
dropped from 7.45 million bags in 2017 to 5.9
million in 2020, before rebounding again to an
estimated 7.2 million bags in 2023.
But a transformative plan is underway. Working
in partnership with the Nescafé Plan 2030, we
have initiated a pioneering training programfor young coffee farmers on future trends andnew regulations.
The goal is ambitious: train 5 500 Hondurancoffee farmers on the best social practices
to create fairer working conditions, close theknowledge gap and develop the coffee leadersof tomorrow. The program focuses on inclusivity,
preparing them for the needs of the future
market and building more resilient farms. The
aim is to have at least 35% youth and 30%
women participants enrolling and graduatingfrom the program.
The initiative has already benefited thousandsof young people, including many young
women. The CoHonducafé Foundation, which
also supports the program, has held training
sessions on female leadership, knowledge
acquisition, business planning and assessing
and mitigating the risks of child labor.
The educational program creates acompounding effect, too. In January 2024,
the group of young coffee growers – Jóvenes
Caficultores – will attend their first annual
meeting to share knowledge and ideas onlearning, as well as implementing social
practices at their farms.
Through the training initiative, Nestlé andSwisscontact are growing a culture of equality in
Honduras. We anticipate a brighter, fairer future
where youth and women play leading roles increating a sustainable, resilient coffee industry.

Creating Shared Value and Sustainability Report 2023

37

Farm Business Advisors
provide technical advice totheir clients.

Performance
In February 2023, we launched the Nestlé Salient
Human Rights Issue Action Plans. At the coreof our Human Rights Framework and Roadmap,
these set out how we assess, address and reporton the 10 most significant human rights risks
across our value chain. They also address how
human rights are considered within our wider
environmental and social plans. Guided by the
UN Guiding Principles on Business and Human
Rights and the OECD Due Diligence Guidance for
Responsible Business Conduct, these plans help
us comply and stay ahead of emerging humanrights legislation globally and have a positive
impact on people locally.
Internally, we have created a new Human Rights
Steering Committee, which now meets quarterly.
It oversees and guides the strategic direction
and implementation of the Salient Issues Action
Plans, ensuring alignment with organizational
goals and effective resource allocation.
Multi-functional teams have been set up to
ensure the successful implementation of theSalient Issue Action Plans across our value chain.
We have appointed local dedicated human rights
coordinators in priority markets. These humanrights coordinators work in close collaboration
with the owners of the action plans and report toa local operational governance body.
Our salient issues
Our salient issues are human rights at most riskof severe negative impacts through our activities
or business relationships. They are informed

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Advancing human rights

by the results of human rights impact and risk
assessments, as well as our strengthened audit,
monitoring and grievance processes.

Sustainable Quality™ Program is working toward
the empowerment of coffee communities, while
ensuring children are protected.

Our 10 salient issues are:
– Child labor and access to education.
– Forced labor and responsible recruitment.
– Living income and living wage.
– Gender equity, non-discrimination andnon-harassment.
– Safety and health at work.
– Freedom of association andcollective bargaining.
– Right to water and sanitation.
– Indigenous peoples' and local communities’
land rights.
– Data protection and privacy.
– Right to food and access to nutritious,
affordable and adequate diets.

Grievance mechanisms
Providing rights holders with access to effective
grievance mechanisms is a crucial way ofmonitoring human rights risks on an ongoingbasis and assessing the effectiveness of ouractions. The mechanisms provide insights into
our due diligence processes and enable us toassist workers and other rights holders.

The Nestlé Salient Human Rights Issue Action
Plans help us address each of these issues,
aimed at further strengthening our due
diligence approach. So far, our efforts havefocused initially on spreading awareness,training employees and staff, and developing or
improving processes. This includes improving
our understanding of human rights risks
across our own operations and supply chains,developing tools to assess our suppliers’ due
diligence systems and reviewing how different
certification and verification schemes canprovide assurance that human rights risks havebeen mitigated. The plans bring together all of
our existing programs in a holistic way acrossgeographies, categories and ingredients, humanrights and our value chain.
Action plans are now being embedded within our
wider programs. These include the Nestlé Cocoa
Plan, through which we are also addressing
child labor risks by helping to improve theliving incomes of cocoa-farming families. The
Nescafé Plan 2030 is tackling child labor andforced labor risks, and the Nespresso AAA

Our grievance channel, called Speak Up (seePerformance on page 67), is well establishedand open to all stakeholders. In 2023, we havepiloted different tools with various suppliers
and industry-wide bodies in different countries
and supply chains. We intend to reach as
many rights holders as possible and embed
these mechanisms throughout our value chain.
We are also in the process of implementing agrievance mechanism as a mandatory clause insupplier contracts.
Examples of the tools available in our supply
chains include Issara Institute’s worker voicemechanisms in the seafood supply chain in
Thailand. We have also supported our palm oil
supplier Sime Darby Plantations to extend theSuara Kami toll-free helpline to all their workers inIndonesia and Malaysia. A digital grievance app
called WISE is also being evaluated by Nespresso,
with a first pilot to be implemented in Guatemala.
We also participate in the development ofindustry-wide grievance mechanisms. These
include MY VOICE, an initiative by the Social
Accountability Initiative (SAI) which could
enable workers to have more influence on
the implementation of a social compliancesystem in the palm oil sector in Malaysia. We
have also been working with industry peers
and Solidaridad to develop a joint grievancemechanism in the Brazilian coffee supply chain.

Focus on child labor risks
Based on our global risk assessment, potential
risks of child labor may occur in the supply
chain of some of the raw materials we purchase.
Nestlé is committed to helping address childlabor risks alongside efforts to enhance accessto education.
In addition to permanently monitoring this risk,
as described in the Approach section above, thefollowing specific policies and measures support
the approach:– Our Corporate Business Principles state that
we take action against any violations of humanrights in our operations and value chain, withzero tolerance on child labor, forced labor andmodern slavery.
– Our Human Rights Policy states that we pay
particular attention to individuals or groups
who may be at greater risk due to theirvulnerability or marginalization, such as
migrant workers, children, women and girls,
sexual and gender minorities, ethnic and racial
groups, and Indigenous peoples.
– The Nestlé Responsible Sourcing Standard,
which is embedded in all our supplier
agreements, includes requirements related
to combating child labor, including clauseson the minimum age for employment as well
as specific conditions to be met for family
farm work. We verify compliance with our
Responsible Sourcing Standard by our direct
suppliers via independent audits that follow
the Sedex Members Ethical Trade Audit(SMETA) Best Practice Guidance. These audits
include requirements related to child labor.
We also map our upstream agricultural supply
chains and carry out farm assessments withpartner organizations.

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38

– Our Child Labor and Access to Education
Action Plan, which articulates our strategy
for embedding, assessing, addressing andreporting on the specific risk of child labor,
follows the approach of the UN Guiding
Principles on Business and Human Rights.
Measures taken as part of the Child Labor andAccess to Education Action Plan
As part of our Child Labor and Access to
Education Action Plan, we have carried out an
initial global assessment for child labor risks andissues. Based on global datasets, such as those
provided by Verisk Maplecroft, UNICEF and the
US Department of Labor (DoL), and informationfrom stakeholders and raw material-specific risk
assessments on child labor, we have identified
20 priority countries for the 2023–2025 phase of
our action plan.
The priority countries are: Brazil, Cameroon,
Chile, Colombia, Côte d’Ivoire, Ecuador,
Ghana, Guatemala, Honduras, India, Indonesia,
Mexico, Nigeria, Pakistan, Peru, the Philippines,
Thailand, Türkiye, Uganda and Vietnam.
The following steps informed our prioritizationof countries:
1. Identification of countries categorized as‘priority’ for the combined results of theVerisk Maplecroft’s Child Labor Index,
UNICEF Children’s Rights in the Workplace
Index, as well as the US DoL’s list of goods
produced by child labor or forced labor.
2. Analysis of the number of relevant raw
materials under our Responsible Sourcing
Program and recycled materials that were athigh or very high risk for child labor and forwhich we source medium or high volumes
from these countries. This provides us withthe scale of the footprint Nestlé has in the
countries categorized as ‘priority’.

3. Addition of countries considered ‘priority’ inrelation to one or more of the raw or recycledmaterials we source, for which we had
information available.
Together with our partners, we also focus
on helping address the complex factors that
contribute to the risk of child labor. These
include widespread rural poverty, increasingclimate risks and a lack of access to financial
services and basic infrastructure such as water,
healthcare and education.
Our identification and assessment of risks
indicated that the risk of child labor isparticularly prevalent in the cocoa sector.
Therefore, we prioritized efforts to mitigate
these risks in our Nestlé Cocoa Plan supply
chain. The following measures were taken:– Implementing a Child Labor Monitoring andRemediation System (CLMRS) in our cocoa
supply chain in Côte d’Ivoire and Ghana, incollaboration with the International Cocoa
Initiative (see data points below).
– Ensuring that all the cocoa that comes from
Côte d’Ivoire and Ghana is Rainforest Alliancecertified. This means that these volumes
are covered under a due diligence system
to assess and address child labor risks.
Traceability types include mass balance,
segregation and mixed identity preserved.
– For non-certified cocoa coming from Brazil,
Ecuador, Mexico and Venezuela, assessing
and addressing child labor risks in cocoa fields
through our own programs under the Nestlé
Cocoa Plan or supplier programs, consisting ofverifications by legitimate third parties.
– Helping cocoa farmers to reach a living income
through our income accelerator program.
This aims to help reduce child labor risks andincrease incomes for cocoa-farming families
and farmers (for more information on theincome accelerator program see page 40).

“The increasing number of children
having received support over time,
combined with the rising number ofchildren not engaging in activities
posing a risk of child labor after
Nestlé's interventions, demonstrates
the effectiveness of Nestlé's CLMRS."
Matthias Lange
Executive Director,
International Cocoa Initiative

Beyond cocoa, we have taken action to assess
and address child labor risks in our supply
chain by:– Working with our direct hazelnut suppliers in
Türkiye to run summer schools that provide asafe space for the children of seasonal migrant
workers during the harvest season.
– Providing training to coffee farmers andmills on child labor risks, and conducting
independent monitoring of coffee farms
during harvesting season in Brazil, Honduras,
Mexico and Vietnam. We have also extended
the CLMRS to our coffee supply chain in
Côte d’Ivoire.
– Taking action in our raw materials and recycled
packaging supply chains to assess andaddress child labor risks.
– Using leverage and collaboration to collectively
help address widespread, systemic child labor
issues and promote access to education.

Child Labor Monitoring andRemediation System Data Points for
Cocoa in Côte d’Ivoire and Ghana
2022

2023

Households covered by the CLMRS toprevent and address child labor risks

87 422108 810

Children covered by the CLMRS toprevent and address child labor risks

110 343

178 553

Total number of children who
received support

15 03528 583

203 401

Cumulative total number of children who havereceived support*

12 135

Number of children identified who reported nolonger engaging in activities posing a risk ofchild labor (8 974 in 2022)**

Based on our due diligence approach, wehave established a new performance indicator
expressed in % volume of cocoa sourced fromall countries covered by the CLMRS or otherdedicated due diligence systems, with massbalance included.
This new indicator will better capture our
performance across our relevant raw materials
as we deploy our Child Labor and Access to
Education Action Plan, starting with cocoa
in 2023. We may develop further indicators
over time based on learnings from theimplementation of our plan.

70.6%

Volume of cocoa sourced fromall countries covered by the
CLMRS or other dedicated due
diligence systems, with massbalance included* Since the inception of the CLMRS in 2012.
** Assessed during the two most recent follow-up visits.

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Advancing human rights

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Our cocoa income accelerator program
completes test-at-scale phase
We have now completed the test-atscale phase, reaching 10 000 cocoafarming families in Côte d’Ivoire, theworld’s largest producer of cocoa
beans. Started in 2020, the program
has to date focused on the regions ofAbengourou, Divo and Gagnoa and in
2024, it will be expanded to Ghana.

Outlook
Advancing human rights throughout ourvalue chain is an evolutionary journey. The
publication of our Human Rights Framework andRoadmap was an important step. The successful
implementation of our Salient Issue Action Plans
will be critical to embedding our approach andhelping stimulate systems-wide change for the
food and farming sectors.
Collaboration across different supply chains,markets and stakeholders will be essential.
System-wide change will mean developing
holistic strategies and sharing information
to address both human rights andenvironmental concerns.

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Advancing human rights

Coffee harvest at the
Nescafé Coffee Centerin Pu’er, Yunnan
Province, China.

Our income accelerator programaims to help reduce child laborrisks and increase incomesfor cocoa-farming families.
It supports four areas: school
enrollment, good agricultural
practices, agroforestry activities
and diversified incomes.
During 2023, the income accelerator
program continued to make progress
toward reaching an estimated 160 000
cocoa-farming families in our supply
chain by 2030. The program not only
rewards farmers through a premiumfor their cocoa crop but also througha cash payment to the household to
encourage better agricultural andenvironmental practices that benefit
the environment and local community.

With cocoa-producing families
historically struggling to maintainadequate income levels, the successof pruning to increase yields has been
welcomed by the farmers. More than
19 000 hectares of cocoa farms havebeen pruned to a high standard by over
300 professionally trained local groups.
The Royal Tropical Institute (KIT)
published a 2023 report on thescheme’s progress, citing “the extent
of the changes varied among theinterviewees, with some reportinga rise of 160 kg/ha and others
experiencing a substantial boost of
470 kg/ha.”Alongside improving cocoa harvests,
the income accelerator program
empowers women to take a more
active role in household income
generation and decision-making.
Village Savings and Loan Associations(VSLAs) provide much-needed funds
for women to start or continue with a

new business venture. In 2023, over
9 000 households were enrolled in
VSLAs, the majority women.
The program helps families send
their children to school. The pilot
report showed the program does
make a difference, with 2 782 children
registered as attending school – an
8% improvement compared to acontrol group of families not in theincome accelerator program.
Incentives to help close the living
income gap for families are at theheart of the income accelerator
program. In total, families can earn up

to EUR 500 during each of their firsttwo years of enrollment and many
have used the payments for schoolingand healthcare costs. To date, cocoafarming families in the program
have received over EUR 2 million in
incentives since January 2022.
There have been some challenges. To
ensure traceability, the payments are
made via mobile money. Registering all
farmers and their spouses on mobile
money has initially caused somedelays in payments and in the next
cycle, a new partner has been found to
make this process more efficient.

“We are very pleased with
progress, especially in starting
to transform the way cocoa
is farmed, with professionalgroups now pruning to a highstandard. Gender empowerment
is key to the program, and it’s
great to learn about the impact
of women’s decision-making inmany households.”
Darrell HighHead of the Nestlé Cocoa Plan

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40

Packaging
and circularity

To track our progress, we put in place the following KPIs:
We aim to reduce our use of virginplastics by one third by 2025

We aim for >95% of our plastic packaging
to be designed for recycling by 2025*(versus 2018 baseline)

95%
-4.0%

-8.1%

-10.5%-14.9%

-33%

81.9%

83.5%

2022

2023

74.9%

2018

2020

2021

2022

2023

2025

Packaging that is reusable, recyclable or compostable*

2021

2025

Packaging pieces placed on the market**(billions)

86.6% in 2023
85.8% in 2022
85.4% in 2021

344
330

320

86.6%
in 2023

At Nestlé, we are working toward a future
where none of our packaging ends up in
landfill or as litter in the environment.

By the end of 2023:– 83.5% of our plastic packaging was designed
for recycling*.
– 41.5% of our packaging was made from recycled and/or
renewable materials.
– Virgin plastic in our packaging had reduced by 14.9%
since 2018.

2021

2022

2023

SDG contributions
Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides
details and definitions and can be found here.
* As per EMF "New Plastics Economy Commitment – Commitments, Vision and Definitions"(Feb. 2020).
** Packaging Pieces Placed on the Market are computed on 95% of total packaging weight.

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41

Context

Approach

Packaging protects food and beverages, ensures
their quality and helps prevent food waste. It
also provides important information, such as theorigins of ingredients and nutritional content.
The amount of packaging waste inappropriately
managed at end-of-life is a serious global
problem, affecting water and soil quality,
biodiversity and communities. Reducing waste,managing recovered packaging materials andincreasing recyclability and circularity are crucial.

Our vision is ambitious: a world in which noneof Nestlé’s packaging, including plastics,
ends up in landfill or as litter. In our efforts
to stop leakage to natural environments andlandfills, we committed to reduce our use ofvirgin plastic and make our packaging moresuitable for recycling systems. The absence of
packaging waste management infrastructure isa major concern for all of us and we collaborate
to develop more effective systems wherever
we operate.

The infrastructure to collect, sort and reuse or
recycle packaging varies by country and, often,
municipality. As of 2023, we saw Extended
Producer Responsibility (EPR) related laws
enacted in 87 jurisdictions and 47 in draft. The
European Union's Packaging and Packaging
Waste Directive is expected to become aregulation during 2024. We welcome such
regulations that drive economies of scale inpackaging sustainability and accelerate thedevelopment of infrastructure in collection,sorting and recycling.
Reducing the amount of packaging, particularly
virgin plastic, and finding suitable alternatives isof utmost importance for Nestlé. Uncertainties
surrounding the availability and cost of
replacement materials, waste management
infrastructure and future regulations could all
impact the Company’s business performance.
These factors may potentially lead to supply
disruptions, regulatory action and impacts on
our reputation. For more on business risks,
please refer to the 2023 Nestlé Annual Review.

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Packaging and circularity

We are part of the Ellen MacArthur Foundation’s
New Plastics Economy initiative, which, in 2017,
mobilized the first voluntary industry action on
plastic packaging use. We have pledged to work

as an industry to create a circular economy forplastic. The first steps are the elimination of
unnecessary plastic in our packaging, as well as
innovations to ensure any plastic we do need isdesigned for recycling or reusability.
We aim to implement the design principles
described in various design-for-recycling
guidelines from, for example, the Associationof Plastics Recyclers (APR), Plastic Recyclers
Europe, European PET Bottle Platform,
Consumer Goods Forum Golden Design Rules
and others. We have also identified several
plastic types and additives that limit recycling
acceptance in many locations and are phasingthese out.

OUR PILLARS

Nestlé Australia have been
experimenting with new
packaging formats, whichhave included paper for
KitKat wrappers.

We have five pillars of activity:

Pillar 1:
Less packaging –ReduceReducing our useof virgin plastics
packagingmaterial,
removing
unnecessary
plastics andincreasing
recycled content.

Pillar 2:
Less packaging –Reuse and refill
Scaling reusable
packaging andbulk dispensing
systems toeliminate
the need for
disposable
packaging.

Pillar 3:
Betterpackaging –Redesign
Pioneering
alternative
materials, novel
technologies
and innovative
packagingsolutions tofacilitate reuse
and recycling.

Pillar 4:
Better System –RecycleSupportingcollection,sorting, reuse
and recycling
infrastructure toshape a wastefree future.

Pillar 5:
Better system –Rethinking
behaviors
Rethinking
mindsets andbehaviors at
Nestlé, as wellas with retailpartners andconsumers.

Packaging innovation
Innovation is key to delivering Nestlé’svision for sustainable packaging. We strive
for a balance between performance, costand reduced environmental impacts, while
maintaining the quality and safety of the foods
our packaging protects.
At the Nestlé Institute of Packaging Sciences,
we are exploring innovations for new packaging
materials. Around 50 scientists conduct
research and assess the safety, technical andenvironmental performance of new materials.
The Institute works closely with our global
R&D network and collaborates with suppliers,
start-ups and universities. Their work includes
developing new high-performing paper
barriers, integrating more recycled content andredesigning packaging from multi-material tomono-material. We are also testing alternative
delivery systems for reuse and refill.

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Performance
We aim for a packaging system where no wasteends up in landfills or natural environments. To
help deliver this, we are continuing to transform
our packaging systems by reducing unnecessary
materials and designing more efficient systems.
We are also trialling fairer collection methods
and supporting better regulation.
By the end of 2023, 83.5% of our plastic
packaging was designed for recycling.
In 2023, we used 814 kilotonnes of virgin plastic,
which is a 14.9% reduction compared to the2018 adjusted baseline of 956 kilotonnes.
Global plastic use by weight and type

2022

2023

PET (polyester)

34.8%

34.2%

PE (polyethylene)

19.1%

19.1%

PP (polypropylene)

21.6%

23.7%

PO (polyolefin)

6.6%

6.5%

Laminates

17.2%

15.3%

Other

0.7%

1.2%

Weight of packaging(million tonnes)

3.8

3.6

Percentage of
packaging madefrom recycled and/or
renewable materials*

41.5%

Recycled content inplastic packaging
3.4

Total weight ofpackaging inmillion tonnes

9.3%(7.7% in 2022)

Total weight ofplastic packaging inmillion tonnes

2021

0.9

0.9

2022

2023

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, reflecting the end of 2023 portfolio.
These factors influenced the quantities and recyclability of packaging sold.

Pillar 2: Less packaging – Reuse and refill
In Germany, we launched a pilot with a local
retail partner and the start-up Circolution.
Working in more than 60 grocery stores, ourpackaging experts developed new standardized
reusable stainless steel packaging for Nesquik,
compatible with existing deposit return andcleaning infrastructure.

Reusable pallet
belts in China
replaced plastic
shrink wrap,
phasing out
single-use
plastic wrap.

Pillar 1: Less packaging – Reduce
During 2023, we reduced virgin plastic throughseveral packaging redesigns in Latin America.
Malher Bouillon unveiled redesigned jars tosave 156 tonnes per year of plastic in India***.
The redesign is also compatible with common
municipal collection systems for PET plastic,
helping to make recycling more likely.
During 2023, our Nestlé Waters brands
continued to increase the incorporation ofrecycled PET globally into their bottles. In France,
the brand Vittel implemented 100% rPET in its
water bottles across its entire portfolio in 2023,
excluding bottle caps and labels.
Nescafé launched several packaging innovationsin 2023. In Latin America, we redesigned oursingle-serve stick packs for coffee, improving
the coffee weight-to-packaging surface area
ratio. This change has reduced the plastic
used in this packaging format by 44 tonnes.
In China, Nescafé lightened the bottles for our
ready-to-drink coffee, saving 1 733 tonnes ofplastics annually.

Percentage of
packaging thatis reusable

0.8%*** Sustainability Accounting Standards Board Process Foods
Standard FB-PF-410a.1.
** New KPI for 2023, previous KPI combined reusable with recyclable.

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Packaging and circularity

In Indonesia, we are working with several startups and retail partners to pilot different types ofrefill and reuse systems. For example, we trialled
refillable vending machines, as well as singleserve reusable packaging for Milo and Koko
Krunch brands.
For transport packaging, we innovated throughreuse and refill to make further materials
reductions. In China, we deployed reusable
bands to replace plastic shrink wrap on pallets.
Logistics innovator Cainiao provided new
reusable shipping boxes for logistics, resulting in
100 tonnes of plastics saved per year.
To help address the challenges of taking reuse
and refill to scale, we joined working groups led
by the Consumer Goods Forum and the Ellen
MacArthur Foundation. The groups include
several dozen other retail and consumer goods
manufacturers, and we will report on progress.

*** The country name should read Guatemala instead of India.

Pillar 3: Better packaging – Redesign
In Colombia, we transferred our retail display
bins for Maggi Chicken Bouillon cubes fromtransparent plastic tubs to paperboard boxes.
This change saves 84 tonnes of plastic in
one year.

Maggi in Colombia has
answered demands forless plastic by innovatingwith paperboard to replaceelements of packaging.

We continue to phase out all packaging
items that are not widely recycled or whichmake recycling difficult. In Peru, at highaltitudes, we shifted our five liter bulk tubs
from polystyrene to widely recyclable PET
and phased out 155 tonnes of hard-to-recycle
materials. Operating from 500 meters tomore than 3 500 meters above sea level, thenew packaging must withstand significant airpressure changes, requiring complex design.

In Indonesia: testing a refill
dispensing system with Miloand Koko Krunch.

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43

The Colombian Institute of Technical Standards
and Certification recognized work conducted
in 2022 with Cempre, Veolia and Latitude R,
supported by Nestlé, to process 12 139 tonnes,
representing 100% of the plastic, paper andmetal packaging we place on the market. We
are driving similar initiatives in Argentina, Costa
Rica, Ecuador, Mexico and the Philippines.

In India, Nestlé's social
impact project Hilldaariis supporting waste
workers with more
effective practices andhelp gaining access toGovernment services.

Pillar 4: Better system – Recycle
In the United States, Nestlé, along with six otherleading FMCG, food and technology companies,
announced a joint investment in CircularServices. The Company aims to scale recycling
infrastructure and services in the United Statesand owns facilities across the country.
In India, Nestlé’s social impact project Hilldaarifocuses on streamlining waste management
systems and helping to professionalize andrecognize waste workers. Our support hasenabled over 550 waste workers across several
cities to receive government-recognized ID
cards, granting access to government healthschemes and pension and maternity benefits.

Pillar 5: Better system – Rethinking behaviors
In 2023, we launched compostable coffee
capsules and pods for our Nespresso and
Nescafé Dolce Gusto brands in Brazil, France
and Switzerland. An extensive campaign
was launched to educate consumers on
composting and raise awareness of effective
composting methods. Across the world, Nestlé
is taking a proactive role in advocating for welldesigned and harmonized legislation addressing
Extended Producer Responsibility (EPR), deposit
return systems and reuse and refill. We arealso supporting recycled content targets andthe UN Treaty on Plastics Pollution. We work
to integrate just transition principles into policy
advocacy, speaking up for the human rights ofworkers in our extended supply chain.

In Belgium, since January 1, 2023, all beverage
capsules and pods, whether aluminum or
plastic, can be collected in the new Blue Bag
for recycling. This new recycling solution is
the result of a partnership between Nespresso,
Nestlé (for the Starbucks by Nespresso,
Nescafé Farmers Origins and Nescafé Dolce
Gusto brands), JDE Peet’s (for the L’Or
and Douwe Egberts brands) and FostPlus,
initiated by Nespresso via AREME (a Belgian
initiative bringing together players from theentire aluminum value chain). This initiativeis currently entirely financed by the abovementioned brands.

External viewpoint

Scaling plastic action throughcross-sector collaboration – theGlobal Plastic Action Partnership
Christian Kaufholz
Interim Co-Director, Global Plastic Action
Partnership, World Economic Forum

Plastic pollution is a systemic challengethat requires stakeholders to cometogether across sectors, disciplines andregions to scale truly circular solutions.
The Global Plastic Action Partnership (GPAP)
aims to translate commitments to address
plastic pollution into concrete action. It works
to accelerate solutions along the entire lifecycleof plastics at a national and global level. Hosted
at the World Economic Forum, the partnershipbrings together governments, businesses andcivil society.
GPAP has been supporting individual countries
since 2019, evaluating their plastic pollution
profiles. The work identifies ambitious andrealistic systems-change scenarios, anddevelops national action roadmaps for inclusive
and evidence-based decision-making. This
growing network of National Plastic Action
Partnerships (NPAPs) – currently present in 12
countries – represents a community of practicethat is leading by example and sharing its
learnings and insights regionally and globally.

Our work is becoming ever more relevant.
In 2022, 175 UN member states started tonegotiate a legally binding global treaty to end
plastic pollution. Each country must assess
its unique situation and what actions it cantake today. Once the treaty is enacted, nations
will then need to translate requirements into
tangible results on the ground.
Taking effective decisions and actions is avast, system-wide challenge that individual
stakeholders will not be able to resolve on theirown. Governments will need to work handin-hand with businesses and civil society to
break down barriers. Together, they will haveto provide support for solutions that enableprevention, reduction, reuse and recycling at
scale. Crucially, this transformation to a circular
economy for plastics will also need to be ajust transition.
Business has a key role to play. Nestlé is a
Strategic Partner of the World Economic Forumand a leading corporate champion of GPAP. It
actively engages across our network of country
partnerships to exchange expertise and insights
with a diverse community from business,government and civil society.

Maggi sachet moved to a mono-material in India.

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Supporting the rights
of waste workers
Waste pickers play an importantrole in the circularity of
packaging waste and we support
them based on the UN Guiding
Principles on Business andHuman Rights.
Outlook
We have made progress in areas where wehave direct influence, such as designing forrecycling systems and supporting infrastructuredevelopment. However, the developmentof infrastructure does not yet match thepotential demand.

We believe this group merits thesame human rights protections asanyone else in our value chain andso we apply the 10 Fair Circularity
Principles. We developed thePrinciples in collaboration with
the Fair Circularity Initiative (FCI),
which includes development charity
Tearfund, the Coca-Cola Company,
PepsiCo and Unilever.

Folding reuseable
shipping cases
in China.

To enable a path forward until effective
legislation can be implemented, industry-led
targets and voluntary standards are necessary.
We know there is more work ahead in the shift
from voluntary action to mandatory legislation,
which we believe will spearhead more robust
solutions and create a level playing field.
The UN Treaty on Plastics Pollution has thepotential to transform global plastics waste
management after 2025. EU Commission
decisions on logos, labeling and design
for recycling, together with consumer
communications, could also reshape
supply chains.
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Packaging and circularity

Waste pickers in informal andcooperative settings play a pivotal rolein collecting, sorting and recycling
plastics and packaging waste in many
countries around the globe. From
waste bins, streets and unregulated
landfills, roughly 20 million waste
pickers are responsible for diverting
almost 60% of the plastic that isrecycled worldwide.

In line with our Human Rights Salient
Issue Action Plans (see Advancing
human rights chapter), the issues
that we identified as the mostsalient for our waste management
projects are: Safety and Health atWork, Child Labor and access to
Education, and Forced Labor andResponsible Recruitment.

Partnership with Brazilian
non-profit Recicleiros toimplement integrated
collection models with
waste-picker cooperatives.

In selected priority countries wherewaste management is a causeof concern, we are conducting
assessments to ensure that therights of workers are respected. Weinterview key stakeholders to ensure
an inclusive and adequate assessment
process where concerns are captured.
For any issues encountered, wedevelop action plans with ourpartners. We support this work byconducting and publishing studies.
In 2023, they included ‘Resident
Attitudes toward Open Burning ofWaste’, and ‘Methodologies andAssessments for Living Incomesfor Informal Sector Waste Workers’,developed with the FCI.

We have set up dozens of plastic
collection projects across Asia, Africa
and South America where waste isoften mismanaged. We work withpartners and associations to increase
collection, sorting and recovery ofequivalent amounts of the plastic
waste we sell in those markets. We
advocate for increasing recycling rates
and the implementation of EPR.
The FCI is now developing
implementation guidance and areporting framework to support
the wider industry. The increased
adoption of the 10 Fair Circularity
Principles will help to reduce theimpacts of plastics for communities
and the environment, as well as
help make life for the waste workers
themselves more equitable and safe.

Waste picker with government ID card in India.

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Supporting balanced
and sustainable diets

Context
Across all life stages, food and good nutrition
are fundamental to everyone’s health, wellbeing and quality of life. Food is also a sourceof enjoyment, playing an important part in oursocial lives and culture. All foods can be partof a balanced diet if consumed in an adequate
amount and as part of an active lifestyle.
However, in many parts of the world dietrecommendations are not met, leading to all
forms of malnutrition. Many people around theworld lack access to nutritionally adequate andaffordable diets. In parallel, there is an urgent
need to shift to more sustainable food systems
that will ensure the future supply of nutritious
food products within planetary limits.
With our global presence and extensive
portfolio, Nestlé is well placed to help addressthese challenges.
Nestlé’s success is dependent on our productportfolio consistently providing value andrelevance to consumers. Innovation and speedto-market are crucial factors, as failing to meet
consumer expectations could lead to missed
growth opportunities.
Breast milk substitutes manufacturers including
Nestlé face risks if they fail to market products incompliance with the World Health Organization(WHO) Code.

Our ambition is to bring tasty andsustainable diets within reach for billions
of people, providing a wide range offoods, beverages and services for all
life stages.

During 2023, we:– Published Good for You, our new Nutrition Strategy.
– Set an ambitious 2030 target to increase the sales ofmore nutritious products.
– Reported transparently on the nutritional value of ourglobal portfolio.
– Strengthened our responsible marketing practices.
– Continued to improve the nutrition and taste ofour products.

The above factors may potentially lead toshifts in demand, regulatory action, loss oftrust and impacts on our reputation. For moreon business risks, please refer to the 2023
Nestlé Annual Review.

To track our progress, we put in place
the following KPIs*:
Nutritional value
In 2023, we transparently reported the nutritional valueof our global portfolio using the Health Star Rating (HSR)
system as the basis.
Product with Health Star Rating*% Net sales**HSR of 3.5 or above

38%

HSR of 1.5 to less than 3.5

20%

HSR of less than 1.5

21%

Net sales from products where HSR
is not applied
21%

Specialized nutrition**** Health Star Rating is an independent nutrient profiling system. Calculations are based on therecipe for each product and are not necessarily included on the product label. Excludes 5% of
net sales from non-food items.
** 76% of net sales covered, excludes PetCare and non-food items.
*** Specialized nutrition includes products sold by our Nutrition and Nestlé Health Science (NHS),
which provide nutrition benefits and for which the HSR system generally does not apply.

Total and affordable servings of micronutrient*
fortified foods and beverages(billions)

Number of servingsof CPW** productswith micronutrient
fortification

11.0

9.3

8.7

196.4

202.1

197.1

128.4

129.2

127.6

Number of servingsof total productswith micronutrient
fortification
Number of servingsof affordable nutrition
with micronutrient
fortification

2021

2022

2023

* The ‘big four’ micronutrients are iron, vitamin A, iodine and zinc.
** Cereal Partners Worldwide.

SDG contributions

Our Reporting Scope and Methodology for Nutritional Value Transparency Key Performance
Indicators document provides details and definitions and can be found here.

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Supporting balanced and sustainable diets

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46

Internal viewpoint

Raising
our ambition
for nutrition
Bernard Meunier
Executive Vice President Headof Strategic Business Units andMarketing and Sales
Leveraging expertiselets us expand ouraffordable, plant-based
and nutrition offerings.

Approach
All our products can play a role in a balanced
diet. Our Nutrition Strategy, Good for You, isbuilt on two strategic pillars: ‘Portfolio andproducts’ and ‘Communications and services’.
Portfolio and products
In 2023, we set an ambitious target to growthe sales of our more nutritious products by
CHF 20–25 billion by 2030, representing about
50% growth over 2022 sales. To deliver on
our target, we continue our efforts to improve
the nutritional value of our products, adding
beneficial ingredients such as whole grains,dietary fibers and micronutrients. In parallel, we
continue to reduce sugars, salt and saturated
fats, including by exploring new proprietary
technologies. We also leverage our expertise toexpand our affordable, plant-based and nutrition
offerings and set a specific focus on products forchildren and healthy aging.
Nutrition is inextricably linked to our healthand development, from birth until our mostsenior years. We offer products that cater tothe specific needs of mothers, infants, children,
teens, adults and seniors. In addition to ourfoods and beverages, we also offer consumer
care and medical nutrition products.

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Supporting balanced and sustainable diets

Communication and services
People want to enjoy a balanced diet, but
for many this is not easy. They face many
challenges, including affordability, getting used
to different tastes, and lack of time or nutrition
knowledge. To guide people toward balanced
consumption, we provide information andservices, ranging from transparent nutrition
labeling to nutrition education programs andnutritious recipes, in compliance with local
regulations. These initiatives, such as Nestléfor Healthier Kids and Nutriplato, promotehealthy lifestyles in an engaging format. In
addition, we have strengthened our marketing
policies for young people, see later in
Responsible marketing.
Portion sizing
In 2023, where local regulations allowed, we
set two new portion size commitments for ourconfectionery and ice cream products:– All children’s portions will be 110 kcal or less.
– All multi-serve products will have clear
front-of-pack portion guidance.

A new nutrition strategy.
As a parent and grandparent, nothing gives me
greater pleasure than sharing a meal with myfamily. At Nestlé, we constantly ask ourselves,"How can we support more people to enjoy
better food?" Our new Nutrition Strategy, Goodfor You, is going to help answer that question.

At Nestlé, we want to be part of the solution andmake balanced diets the easy choice for people
across the world. This is what has led us torefine our approach to nutrition and launch ourGood for You strategy.
Good for You has two strategic pillars: ‘Portfolio
and products’ and ‘Communication andservices’. Our goal is to bring tasty and balanced
diets within reach for billions of people, today
and for generations to come.
To make this happen we will invest to innovateand offer more nutritious products for people of
all walks of life, living in all circumstances. This
also means inspiring people to prepare tasty
and balanced meals for the whole family, using
AI-powered tools to provide personalized tips,
menu planning and recipes.
It's in our hands and up to all of us to make it
happen. And it is critical we act now so that
more families around the world can sit down
to enjoy a meal together, confident that what
they are eating is good for them and better forthe planet.

It is a great and complex challenge to meet
everyone’s individual needs and preferences,
unlocking the power of food. Our expertise,innovation capabilities, global reach andscale mean Nestlé can play an important rolein helping to feed a growing – and aging –population. It’s why we call ourselves the Good
food, Good life company.
We all want to enjoy tasty and nutritious foodthat is also better for the environment. Yet, threebillion people worldwide cannot afford a healthy
diet. People struggle with affordability, time,
accessibility and limited information.

Sharing a meal with family – one of life's great pleasures.

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47

Nutritional needs across all life stages forpeople and pets
Nutritional needs vary throughout life stages,
from pre-conception to healthy aging. Women's
dietary choices during pregnancy impact theirown health and their baby's long-term wellbeing. Breast milk is the ideal nutrition forbabies. For babies who cannot be optimallybreast-fed, infant formula helps them thrive.
Good nutrition is crucial for children's
development and we support parents’ vital rolein fostering healthy eating habits.
For older adults, the right balance of energy,
protein and other nutrients helps in maintaining
strength and cognitive abilities, allowing them tolive a fulfilling and active life.

We continue to invest in
our offerings by renovating
existing products andworking to drive innovation
for more tasty andnutritious options.

Performance

Portfolio and products
In 2023, we continued to invest significantly
to improve existing products and to innovate
to offer new, more nutritious products. By theend of 2023, our efforts improved the HealthStar Rating of 588 of our foods and beverages.
We have also continued to address nutrients ofpublic health concern. This included:– Introducing a new versatile and cost-effective
sugar reduction technology for ingredientssuch as milk and malt with an impact of
15%–30%, see Milo case study.
– Reducing the fat in milk via a new technology
by up to 60%, while retaining the creaminessand sensory attributes of untreated milk.
NINHO in Brazil became the first product touse the technology.
– Launching ‘No Added Sugar’ cereals in
Europe, made with over 75% whole grainsfrom wheat, oat and quinoa. These Fitness
brand varieties from our joint venture Cereal
Partners Worldwide (CPW) are also highin fiber.

– Introducing the Garden Gourmet Veggie Burger
Deluxe range in Belgium and the Netherlands.
These burgers contain more than 60 gramsof vegetables, pulses and whole grains per
serving and have a Nutri-Score A*.
– Addressing locally relevant micronutrient gaps
with our fortified products. We also fortified
Maggi Masala-ae-Magic seasoning with ironand folate in India.

In total, during 2023 we provided 205.8
billion servings of micronutrient-fortified
products from iconic brands, including
Maggi and Nido.

* At time of publication.

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Supporting balanced and sustainable diets

Our enriched products include Nestlé’s all-inone milk powder, Yiyang, which caters to thespecific needs of people aged 45 years and overin China. To enhance brain health, it contains
vitamins, minerals, essential amino acids,
protein and fish oils.
Affordable nutrition
With our affordable nutrition offerings, weare helping to close nutrient gaps throughfortification, using essential micronutrients suchas iron, iodine, zinc and vitamin A. In 2023,
we provided 127.6 billion servings of affordable
nutrition with micronutrient fortification.

Africa. Each pack provides enough protein
for up to eight people, with less saturated
fats and cholesterol and at a lower cost whencompared to animal protein. They are also
fortified with iron and zinc.
Plant-based products
We continue to innovate for consumers seeking
plant-based alternatives to their favorite foods.
– In Europe, our Garden Gourmet brandlaunched fish-style crispy fillets and nuggets.
Made with wheat and pea protein, theproducts are high in protein, low in saturated
fat and have a Nutri-Score A*.
– In Asia, Nestlé offers crispy fish-free fingers
under the Harvest Gourmet brand in Malaysia
and Singapore. Made from soy and wheat,
they are a source of protein and fiber.
– In the United States, our Natural Bliss brandlaunched a milk alternative that combines aunique blend of oat and fava bean protein,providing high‑quality protein.
– In Chile, we launched a range of Maggi Veg
vegan shelf-stable plant-based cooking
solutions. This includes a soy ground meat
replacement for popular dishes like tacos andis a reliable source of high-quality protein
and fiber.

New products answer
consumer demand forplant-based alternatives
to replace meat in certain
staple meals such as stews
and pasta.

We have also developed new foods andbeverages that make plant-based proteins
more accessible.
– In Nigeria, we launched a new affordable
fortified dairy and plant blend, Nido Milkand Soya. This combines milk and locallysourced soy, for a blend of essential nutrientssuch as protein, fiber, and is a source of ironand calcium.
– Maggi Soya Chunks is a new, affordable plantbased alternative to replace meat in rice, stews
and pasta for consumers in Central and West

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48

“Our mission is to improve
nutritional health and promotesustainable diets. We cannot dothat alone. Cooperation withstakeholders is crucial. We value
the long-term cooperation with
Nestlé to achieve our goal.”
Wineke Remijnse
EFAD Executive Director

Guiding consumers toward balanced diets
We continue to provide information and services
to help people make informed food choices forbalanced consumption:– Across Latin America, our Recetas Nestlé
websites inspire people to create tasty andbalanced meals, with over 21 000 recipes
developed by our chefs and nutritionists.
Recetas Nestlé has over 215 million visits
yearly, reaching one in ten local households.
– In France, we have teamed up with 750g.com,
a leading recipe website. We have also
piloted the inclusion of the MyMenu IQ™
nutritional scoring tool, which has enhanceduser interactions.
Nestlé for Healthier Kids
The Nestlé for Healthier Kids program promotesbalanced diets and healthy lifestyle habits forchildren aged three to 12 years and supports
parents and caregivers:– In Brazil, the Nestlé for Healthier Kids Awardcelebrates projects that transform school
environments to encourage healthier habits.
It has benefited more than 44 000 children

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Supporting balanced and sustainable dietsin five years. In São Paulo, an interactive
exhibition, ‘Nutrition, Movement and Fun’, haswelcomed more than 70 000 visitors since
opening in May 2022.
– In Chile, the 12-year-old program wasrelaunched in 2023 with 36 new digital
educational resources. The content now
reaches an additional 15 000 children and has
generated over 38 000 views on the ‘Nutrition,
Movement and Fun’ YouTube channel.

Dietitians and nutritionists also play a crucialrole in promoting the health and nutrition ofpeople. In Europe, we are engaging with EFAD,
the European Federation of Associations of
Dietitians, by exchanging perspectives andtranslating scientific knowledge into practical,
unbiased resources and tools. A recent exampleof this is the development of a balanced
breakfast toolkit, supported by an unrestrictededucational grant from CPW.

In addition, our new policy:– Bans all product marketing communication
targeting children aged zero to six.
– Rules out collecting personal data from minors
for use in marketing communication.
– Restricts partnerships to adult influencers only.

Nestlé Policy for implementing the WHO Code**2022

Engaging the culinary profession
Nestlé Professional supports youth training
initiatives across Canada, the United States,
Latin America, and Central and Eastern Europe
through various events with high schools anduniversities. This provides practical exposure
to food service as well as sharing information
on nutrition, health and well‑being withyoung people.

Our engagement with EFAD has been ongoingfor several years. Working together, we aim tosupport dietitians in guiding their clients toward
more balanced and sustainable diets.

Number of countries with audits on the Nestlé Policy
on WHO Code32

Instances of detected non-compliances with the Nestlé
Policy on WHO Code96

Leveraging the theme, Growing Great Chefs,
Nestlé Professional and Worldchefs welcomed
enthusiastic young chefs to the wonderful worldof delicious cooking and positive eating habits.
Events around the world led by 3 600 chefs
engaged with more than 140 000 children.

We broadened our commitment to market
breast milk substitutes responsibly: we
expanded Nestlé’s Policy for Implementing the
WHO Code and stopped promoting formulafor babies under six months of age worldwide.
This complements our stricter practices in
163 countries, most of which have higher
infant mortality and acute child malnutrition
rates, where we do not promote formula forbabies under 12 months of age as a minimum.
Compliance with our Policy is mandatory andembedded in the Corporate Business Principles
and we will continue to publicly report on it.

Services for health professionals
Good nutrition before and after surgery plays acrucial role in the healing process. In the UnitedStates, Nestlé Health Science is collaboratingwith specialist health tech provider Amwell.
The first initiative combines automated virtualcompanion technology and our Impact Advanced
Recovery drink to help recovery after major
elective surgery.
Since 2016, we have run medical education
programs with leading international universities.
During 2023, more than 11 000 healthcare
professionals engaged with our digital courses,
with a completion rate of more than 90% and
95% positive feedback.

Responsible marketing
In 2023, we published two new policies
to further strengthen our responsible
marketing practices.

We extended our Marketing Communication
to Children Policy to young people up to theage of 16. It prohibits direct advertising ofconfectionery, ice cream and water-based
beverages with added sugars to this age group.
We are among the first major food and beveragecompanies to voluntarily apply such strict
standards worldwide.

Compliance with our responsible
marketing policies*

Nestlé Marketing Communication toChildren Policy (channels)

2022

2023

TV

98.4%

98.4%

Websites

100%

100%

Social media

100%

100%

Influencers***

37.5%

88.9%

Average total

84.0%

96.8%

Ensuring quality nutrition for our pets
At Nestlé, we leverage nutritional science topromote the health and well-being of pets.
Purina Pro Plan is our most advanced PetCare
nutrition brand and a trusted choice of many
veterinarians around the world. Pro Plan offers
over 140 targeted formulas to help pets thrive
throughout every stage of life:– The latest innovation is Pro Plan Vital
Systems 4-in-1 cat food, which proactively
supports the cognitive, digestive, urinary andimmune systems.

* For 2023, EU pledge monitoring results for TV, influencers, websites and social media are used as a proxy forcompliance with the Nestlé Marketing Communication to Children Policy. Compliance was assessed against
our policy criteria applicable during H1 2023. Compliance against our updated policy– implemented as ofJuly 1, 2023 – will be reported in the following year.
** Data disclosed in this report relates to 2022 consolidated data, which is one year behind our other KPIs.
Data disclosed in our 2022 Creating Shared Value and Sustainability Report stated values were for 2022,
when in fact were values for 2021. The values presented were for 2021, due to the reporting period.
*** 100% of the audited influencers’ posts were assessed as not appealing to children below 13 years.
Following a change in methodology, breaches for posts not targeted to children are also included.

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49

Outlook
To help people adopt tasty and balanced diets,
we will continue to invest significantly in R&D
to drive innovation and to renovate existingproducts. We will put particular focus onaffordable nutrition and plant-based ranges.
We will also develop our products and solutions
for mothers, babies and children, and for
healthy aging, together with our offerings for
populations with specific needs.

Reducing sugarin Milo

Further, we will accelerate the global roll-out
of our AI-powered digital service platforms.
These will provide transparent nutritional
information, recipes and menu planning, as
well as personalized tips for more balanced
food choices.

Cocoa-based malt drink Milo
was named after a sixth century
Greek wrestler who possessedlegendary strength. It is amuch-loved brand, providing
nutritious energy for kids aswell as inspiring them to growthrough sports.
Sports can be a fantastic teacher forchildren. The link between Milo andactive lifestyles is something we havealways invested in. Since the 1960s,
Milo’s grassroots program has held
thousands of sports clinics and events
every year. In 2023, 26 million children
took part in such events worldwide.

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Supporting balanced and sustainable diets

Thanks to long-standing institutional
partnerships with governments andsports councils, for example, millionsof children have been encouraged
to participate in sports activities that
help them to exercise, develop their
physical skills, make friends, learn
teamwork and have fun.
In Malaysia, for example, Milo ispartnering with the Ministry of Youthand Sport to provide free swimmingclasses to children from lower
income families.

In Sri Lanka, the Milo Schools NetballChampionship is the biggest girlsonly sports event in the country,
providing a platform for over 15 000
aspiring netball players.

Our Milo brand has longsupported sports andbalanced lifestyles andis now making use ofinnovative technology
to reduce its intrinsic
sugar content.

To support balanced lifestyles, wehave introduced new patented sugar
reduction technology. The technology
reduces intrinsic sugar in ingredientssuch as malt or milk by up to 30%,
with a minimal impact on taste
and texture.

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50

Food safety
and quality

Context

ApproachHigh standards of food safety and quality
are non-negotiable at Nestlé. Quality is
integral to our business and embedded in our
purpose and values (read The foundations of
ethical business chapter). Please refer also to
the Nestlé Corporate Business Principles.

Our end-to-end approach to food safety
and quality applies to design, delivery
and how food is consumed. We applyinternational standards in food safety andquality management and help raise the barin our industry using rigorous processes andleading scientific techniques.

Any incident or food safety concern that may
lead to potential contamination, adulteration,
mislabeling or other quality issues is critical
for the Group. This is particularly the casewhere such concerns may put consumers’
health at risk. The above factors may
potentially lead to impacts on consumer
health, regulatory action, loss of trust andimpacts on our reputation. For more on
business risks, please refer to the 2023
Nestlé Annual Review.

With regular training and information,
we empower our people to ensure our
products are safe and compliant, enjoyable
and nutritious, and in tune with consumer
expectations. Our internal safety and quality
processes help us anticipate and respondto challenges.
Our food safety and quality systems aredesigned to anticipate and address changes
in regulations, changes to suppliers
or ingredients due to factors such as
extreme weather events and geopoliticaldevelopments. These factors also include
the introduction of regenerative agriculture
practices and new packaging materials or
systems, and portfolio innovations such as
plant-based products.
We follow international guidelines in relation
to risk management, carefully checking
incoming materials, processes and products
in our factories. With more than 830 experts
dedicated to specialized analytical testing in
20 industry-leading laboratories worldwide,
we perform more than 4.1 million tests a year.

Safe, high-quality products are at
the heart of our purpose to unlock thepower of food to enhance quality of life
for everyone.

Table of contents

Food safety and quality

During 2023, we:– Revamped the Hazard Analysis and Critical Control Points(HACCP) process to reduce the risks of incidents.
– Performed more than 4.1 million analytical tests at Nestlé
Quality Assurance Centers for quality and food safety risk
assessment and management.
– Launched a global communications campaign on foreign
body prevention.

We work to embed a strong food safety
culture throughout our business andencourage everyone in our value chains toobserve the same standards. Nestlé experts
participate in leading industry forums,
including the Steering Committee and the
Stakeholder Advisory Forum of the Global
Food Safety Initiative (GFSI) and the Advisory
Committee of the Foundation FSSC.

To track our progress,
we put in place thefollowing KPIs:

92.9%

Ingredients sourced from Tier
1 supplier facilities certified
to a GFSI-recognized foodsafety certification program(2022: 91.9%)

GFSI audits in
our facilities
Major and minor
non-conformance rate
2.77

2.79

2022

2023

Major non-conformancecorrective action rate

2.14

2.55

2022

2023

Minor non-conformancecorrective action rate
1.52

1.55

2022

2023

SDG contributions

Our Reporting Scope and Methodology
for ESG Key Performance Indicators
document provides details anddefinitions and can be found here.

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51

Performance

Safe food by design
During 2023, we improved our Hazard Analysis
and Critical Control Points (HACCP) process.
Our intention was to create a more robust
approach to risk prevention, ensuring complianceboth in the design phase and later stages ofmanufacturing. In support of this approach, we
implemented and integrated risk identification
solutions and hygiene intelligence tools to enable
us to define potential product vulnerabilities for
all categories and predict risk more accurately.
Developing foresight with authorities and NGOs
We are working with partners to bettermodel and anticipate potential food safety
challenges resulting from unusual weather
patterns and geopolitical events. Internally,
we are enhancing our analytical capability byusing cutting-edge technologies at our Quality
Assurance Centers. These technologies enable
us to identify and assess the risks posed bychemical contaminants, packaging migrants andmicrobiological hazards.
Upstream agriculture and packaging
We manage food safety and quality risks in our
upstream supply chains, including agriculture
and packaging. We focus on fluctuations andscarcity in sourcing, managing changes insuppliers and food fraud risk.
Factories and co-manufacturers
We ensure our factories and co-manufacturers
have the adequate resourcing, competencies,
infrastructure and maintenance to deliver
the highest standards. In our own factories,
we leverage an operator-centric approach,prioritizing risk assessments and continuously
addressing and challenging our own ways
of working.
In 2023, across our operations, 134 Factory
Quality Managers or their equivalents passed
through our Quality Leadership College. We
request that our co-manufacturers are certified

Table of contents

Food safety and quality

according to a GFSI-recognized Food Safety
scheme and we have adapted our Integrated
Risk Identification Solution (IRIS) to assess thoseco-manufacturers most at risk and help identify
practical measures for improvement.
Delivered quality
We aim to drive quality in design, delivery
and consumption through a rigorous foodsafety and quality culture across the Company.
During 2023, our Quality Assurance Centers
performed more than 4.1 million analytical tests
as part of ongoing food safety risk assessmentand management.

party institutions. The certification is renewed
every three years following a strict audit by athird-party certification body. In 2023, 98.4% of
our manufacturing and R&D sites were certified
to FSSC 22000. Of Tier 1 supplier facilities,
92.9% were certified to a similar program.
Additionally, we further verify productcompliance through analytical testing in ISOcertified Nestlé Quality Assurance laboratories.
In 2023, we strengthened our verification
governance model by introducing unannounced
food safety assessments – alongside coachingand systematic sharing of best practices.

Quality communication
What we say matters, so we make sure
we are clear, direct and transparent in ourcommunications. In 2023, we launched a global
internal campaign on foreign body prevention.
We also supported the WHO World Food Safety
Day, using it as a landmark date to be remindedof the importance of key quality behaviors
across the Company.

Food safety issues
To prevent occurrence of food safety issues,
cross-functional teams and food safety experts
investigate each incident and root cause toimprove actions and share learnings. As aprecautionary measure, in 2023, we initiated
13 voluntary product recalls. Ongoing mitigation
efforts are focused on upstream supply chain
and Nestlé manufacturing operations.

Trust and verify
We understand and adhere to the roles andresponsibilities that are required of us as theworld’s largest food and beverage company. We
are constantly looking for ways to strengthen
competencies and leverage lessons learned.
Our multi-layered food safety and compliancemodel consists of internal and external
independent assessments.

DigitalWe leverage the power of digital to increasesafety and quality throughout our business.
Artificial intelligence (AI), predictive analytics,
monitoring and trending are all used to improve
efficiency and results.

Nestlé’s risk mitigation strategy is for all our
manufacturing plants to become compliant
with the strict requirements of the Food Safety
Systems Certification (FSSC 22000). This is aninternationally recognized certification schemethat builds on the ISO 22000 standard in setting
a benchmark for quality, safety and processes
for the food industry. FSSC 22000 is recognizedby the Global Food Safety Initiative (GFSI) to
deliver the highest safety standards and isconsistently monitored and certified by third-

Outlook
We will continue to reinforce our food safety
and quality culture across the organization. We
remain alert to the latest research findings incritical risk areas and adapt our protocols as
appropriate. We will make the best use of data
to predict and detect potential incidents.
Climate change impacts will increasingly
affect agricultural practices and we will needto adapt and refine our processes to ensure acontinued supply of quality and safe materials
and products for our customers. We also aim toaddress potential risks emerging from the use ofrecycled and novel packaging materials and newingredients in the supply chain.

We ensure our factories
and co-manufacturers
have the adequate
resourcing, competencies,
infrastructure andmaintenance to deliver
the highest standards.

In 2023, we heightened our organizational
preparedness using real-time data-driven
insights while embedding competency building
blocks, such as the Audit Readiness Toolkit.
More than 66 000 Nestlé employees completed
digital quality courses. In particular, morethan 16 000 employees completed the digital
HACCP level A course and more than 14 000
employees completed the digital course on Pest
Management Fundamentals.

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Our diverse andinclusive culture

Context
Diversity, equity and inclusion (DE&I) values arevital to the Nestlé business. We seek a cultureof success that respects diversity, pursues
equity, enables inclusion and ensures ourpeople reflect the consumers and communities
we serve. When our colleagues feel they canbe themselves at work, they are often happier,more engaged and productive, enhancing theirambition of being a force for good.

To track our progress, we put in place
the following KPI:Management positions held by women (%)
46.4% in 2023
45.3% in 2022*
43.8% in 2021*

46.4%

Embracing differences and celebrating different
viewpoints helps our workforce reach theirfull potential. Diverse teams generate a senseof belonging and can inspire the ideas thatcreate shared value. We advocate for inclusion
throughout our business and encourage all
employees to be open-minded.
Our ability to attract, develop and retain adiverse range of skilled people is critical tobeing competitive and fostering growth. A
skilled, agile and engaged workforce playsa pivotal role in the sustained success of theCompany, while the loss of key personnel orskills can have disruptive impacts. The above
factors may potentially lead to talent and/or
skills deficits, and impacts on our reputation. For
more on business risks, please refer to the 2023
Nestlé Annual Review.

Nurturing inclusivity enhances our
employees’ well-being and helps us betterreflect the society we serve. Leveraging ourdiversity supports our ambition to advanceregenerative food systems at scale while
enabling a just and equitable transition.
Table of contents

By the end of 2023:– All markets had completed diversity, equity andinclusion (DE&I) self-assessments and set actionplans to continue making progress.
– Women held 46.4% of all management positions.
– Women held 25% of our Executive Board positions.
– Local employees represented 85.7% of senior executive
leaders at the management committee level inour markets.

Our diverse and inclusive culture

Management
positions held
by women* KPI reported as per 'Middle and senior managers that are female'.

SDG contributions

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides
details and definitions and can be found here.

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53

From D&I to DE&I
We want all our people to have the same accessto opportunities and to enjoy a level playing fieldthat considers all of their characteristics, uniqueneeds and experiences. To make this explicit, in
2023 we introduced the word ‘equity’ into ourapproach to diversity and inclusion.

Approach
The Group Human Resources team leads DE&I,
offering policies, guidelines, tools and resources
for all of the markets where we operate. These
enable progress and articulate a common
understanding of our DE&I strategy across
our organization.

We want all our people
to have the same accessto opportunities and toenjoy a level playing fieldthat considers all of theircharacteristics, uniqueneeds and experiences.

Everyone has the right to work free fromdiscrimination, violence and harassment,
including gender-based violence andharassment. The objective is to create aworkplace where all are respected for who they
are regardless of gender or other characteristics
or backgrounds. To assess, address and reporton potential risks and opportunities on this topic
at the global level, we have created a specificaction plan with key priorities and actions.
We also empower our markets and businesses
with the flexibility to localize their action plans.
As a minimum, we comply with all local legal andregulatory requirements. This includes supporting
our direct suppliers to assess and address risks.
Our DE&I work is focused on four pillars,connected and underpinned by the Generations
topic. This means that within each focus area,
we recognize the needs and challenges ofthe five generations working at Nestlé, fromyounger generations right up to older cohortsof employees. Our efforts on each pillar also
recognize that our DE&I pillars can intersect,such as for employees who identify as LGBTQI+
and who may also experience unique needs andchallenges related to race or ethnicity.
Table of contents

DIVERSITY,
EQUITYANDINCLUSIONPILLARS ATNESTLÉ
Underpinnedby Generations
Gender balance
People withdisabilities
LGBTQI+
community
Race andethnicity

Our diverse and inclusive culture

Gender balance
We are building a gender-balanced workforce
at all levels, including management. We havea mandatory training targeting all employees
on unconscious bias and sexual harassment
prevention. We continue to publish global
policies, guidelines and resources that will
strengthen our work in building an equitableworkplace, and are guided by a gender
equity action plan. As part of Nestlé's Human
Rights Framework and Roadmap, our recently
launched Gender Equity, Non-Discrimination
and Non-Harassment Action Plan seeks toraise awareness and capacity on gender equity,
non-discrimination and non-harassment with
our employers and suppliers. Actions includecommencing voluntary self-disclosure in somecountries and equal pay analysis, as well as
encouraging our direct suppliers to delivercomplementary actions.
Nestlé was a founding signatory of the
Women’s Empowerment Principles which offer
guidance on how to advance gender equality
and women's empowerment in the workplace,marketplace and community. We continue to
implement leadership, fairness, accountability
and community advocacy on gender equity
in the way we do business. Our progress isexternally recognized in the Bloomberg GenderEquality Index.
We also engage direct suppliers on these topics
as part of our Gender Equity, Non-Discrimination
and Non-Harassment Action Plan. In somemarkets, we are building supplier diversity

programs to support, among others, businesses
that are majority-owned by people who are partof traditionally underrepresented or underserved
groups in society.
People with disabilities
We aim to support the needs of all people
with disabilities, whether their disability
is visible or not. We want to ensure ourfacilities, workspaces and communications
are inclusive and accessible. We are membersof The Valuable 500 to accelerate disability
inclusion and a signatory of the ILO Global
Business and Disability Network (GBDN)
Charter that aims to promote the employmentof persons with disabilities. These global
disability business networks give us accessto best practice from disability specialists andour business peers and thereby enable us toaccelerate disability inclusion in our workforce.
The ILO GBDN also supports national levelbusiness initiatives on disability inclusion,
particularly in developing countries. We havecommitted to elevating disability inclusion to
our leadership agenda through the Generation
Valuable program, which offers the opportunity
for rising leaders with a disability to benefit from
specialist training and mentoring to become a
C-Suite leader of tomorrow, while also raisingawareness among today’s senior executives.
LGBTQI+ community
At a global level, Nestlé publicly supports
the United Nations Standards of Conduct tosupport the business community in tackling
discrimination against lesbian, gay, bi, trans andintersex (LGBTI) people and is a member of thePartnership for Global LGBTI Equality. Most of
our markets provide resources on coming out inthe workplace, allyship and trans and nonbinaryawareness. We continue to implement policies,
guidelines and reporting systems to reinforce
our culture of respect. We provide genderneutral benefits and support for diverse
family structures. Local LGBTQI+ employee

networks and employee resource groups arecomplemented by collaborations with externalorganizations advocating for workplace
protections in line with local laws.

Our diversity, equity andinclusion values play anincreasingly important role
for all of our stakeholders.

Race and ethnic inclusion
We strive to advance racial and ethnic inclusion
and are working to eliminate unconscious bias.
We seek fair representation in management
positions of the communities and countries
we serve. We track progress to eliminate
discrimination through self-assessment.
Nestlé is a founding member of the World
Economic Forum’s Partnering for Racial Justicein Business initiative, a coalition of globalorganizations and their senior executives. We
are part of the working group to build the Global
Racial and Ethnic Equity Framework, looking
at how to confront systemic racism in ourorganizations and within the communities where
we operate.
Generations and Nestlé needs YOUthWe have five different generations in our global
workforce and actively encourage mentoring
opportunities. For more on this subject, see theOpportunities for young people chapter.

Creating Shared Value and Sustainability Report 2023

54

External viewpoint

Performance

Working
together togrow futures for
women in coffee
Robinah Najjingo
Gender Lead, Kahawatu Foundation

Since 2016, Nestlé has been working
with the Kahawatu Foundation to help
empower female coffee growers in ourvalue chain. We spoke to Gender Lead,
Robinah Najjingo, about the work she isinvolved in.
Across Rwanda, coffee is a lifeline for morethan 400 000 families. But growers, especiallywomen, face many challenges. Harvests canbe unpredictable. Tools, improvements andsupplies can be expensive. And too often
women are not respected as equal partners.
That’s why I do what I do. To help makea difference.
Kahawatu actually means ‘people’s coffee’ inSwahili. Since 2013, and with the support ofpartners like Nestlé, the foundation has built
a network that has reached 100 000 farmers
across Burundi, Rwanda and Uganda and hashelped to establish 50 women’s associations.
We’re providing training and support for coffee
growers to improve yields, diversify their

Table of contents

Nestlé purchased
1 009 million
tonnes of coffee
from Rwanda
in 2023.

livelihoods and improve financial literacy so thatthey can make coffee a sustainable way of life.
A great example is the Tuvemubukene women’s
cooperative. For them, the wait between
growing seasons used to mean hard times.
Starting in 2019, Kahawatu helped them train
members in tailoring and traditional basket
weaving techniques, to make products to sell
between harvests.
With money put aside from their new earnings
and training from Kahawatu, the cooperative
has set up a village savings and loan association(VSLA). It provides credit to members who
can strengthen their revenues by, for example,
renting spaces in sugarcane plantations andbuying more coffee trees.
We want to enable women to access what wecall ‘tuvemubekene’, meaning to ‘get out ofpoverty’ in the local Kinyarwanda language.
For the Ituze women’s group, a similar VSLA
has helped 17 members diversify their income
sources, moving into catering, selling sorghum
and making soap. As women living with HIV,the group first met to support each other andfight the stigma. A gift of 1 900 coffee trees from
Kahawatu, along with training to set up the
VSLA, was vital in keeping them together.
With our partners like Nestlé, we’ve now
reached over 5 600 women in Rwanda. Boosting
women’s earnings and financial literacy is one of
the best ways to promote gender equity. We’recommitted to uplifting women by supportingthem to find a sustainable future in coffee
growing. And I’m proud to be involved.

Our diverse and inclusive culture

Local regulations and cultures vary acrossthe world. To create impact, our market andbrand-led activities are calibrated according
to local context and regulations, in line with
our priorities.
All our markets have now completed selfassessments evaluating the maturity of theirimplementation of DE&I initiatives, programs
and processes. For continued progress, they
have also set action plans where needed.
In February 2023, we published the Nestlé
Salient Issue Action Plan for Gender Equity,
Non-Discrimination and Non-Harassment.
The plan seeks to build understanding ofgender topics and needs, with clear steps foraddressing them between now and 2025. The
action plan contributes to the Nestlé Human
Rights Framework and Roadmap, which
supports a just transition toward regenerative
food systems. It is also helping us prepare forforthcoming changes in reporting requirements.
We will continue to be vigilant as new standards
and protocols emerge. We will also track andreview our progress, and identify concrete
actions to close gaps.
Our Global Voluntary Self-Identification Program
empowers employees to submit diversityrelated data about themselves in line with local
legislation. The Program was launched with theaim of gaining a richer understanding of the intersectional diversity of our global workforce andtheir needs, to measure our efforts, set data-driven
ambitions and take more considered actions tofoster greater inclusion. By the end of 2023, we
had reached Brazil, Colombia, the Dominican
Republic, Ecuador, the Philippines, South Africa
and the United Kingdom and Ireland markets,covering around 16.2% of employees. The data,
which we collect according to local laws, help us
make better decisions for our global workforce.

To help our teams communicate about andmarket our products in a more inclusive way,
we launched a Brand Communication Guideline
related to diversity, equity and inclusion.
We further enhance employee understanding
and awareness with trainings such as those on
workplace discrimination, sexual harassment
prevention and unconscious bias. Globally,by the end of 2023, 93% of our employees
had completed unconscious bias training andapproximately 94% had completed sexual
harassment prevention training. We are proudof our progress to date but recognize that moreneeds to be done to create a more inclusive,
diverse workplace and society.
Gender balance
We have long-standing efforts focused on
advancing gender equality, with clearly defined
steps across our value chain. These include
equal and fair pay, providing career support andguidance, eliminating bias and offering sexual
harassment prevention training. We also have agender-neutral Global Parental Support Policy
and a Global Guidance for Providing Support
to Employee Victims of Domestic Violence or
Abuse. We are also working within the legal
parameters in our markets around the world toachieve gender balance in management andcontinue to focus on increasing the numberof women in our leadership positions. Recent
appointments to our global Executive Board
resulted in 25% of our positions held by womenby the end of 2023 and an expected 37.5% by
March 1, 2024.
Our performance and rewards management
systems are built on fairness and equity, withequal pay as one of the pillars.

Creating Shared Value and Sustainability Report 2023

55

Bloomberg Gender-Equality Index KPIs
Leadership

2022

2023

Percentage of women on
company board

35.7%

33.3%

Chairperson is a woman

no

no

20.0%

20.0%

Chief executive officer (CEO) isa womannono

Woman chief financial officer(CFO) or equivalent

no

no

15.3%

31.2%

yes

yes

Talent Pipeline

2022

2023

Percentage of women in
total management

45.3%

46.4%

Percentage of women insenior management

31.7%

34.6%

Percentage of women in
middle management

43.7%

47.0%

Percentage of women in
non-managerial positions

39.1%

38.9%

Percentage of women in
total workforce

38.6%

39.8%

Percentage of women in
total promotions

43.0%

51.7%

Percentage of women in
IT/Engineering

17.6%

31.0%

Percentage of new hires
are women

45.8%

44.7%

Percentage of women attrition

28.9%

45.8%

Inclusive culture

2022

2023

Number of weeks of fully paid
primary parental leave offered

18

18

Number of weeks of fully paid
secondary parental leave offered4

4

Global mean (average) raw
gender pay gap

n/a

6.7%

Parental leave retention rate

92.3%

91.9%

Flexible working policy

yes

yes

Employee resource groups
for women

yes

yes

Unconscious bias training

yes

yes

Annual anti-sexual
harassment training

yes

yes

Gender balance inboard leadership*

Percentage of women
executive officers
Chief diversity officer (CDO)

We conduct annual global reviews to champion
equal pay for equal work and eliminate any
systemic gender pay gaps. Our Global Equal Pay
review was completed in 2023 and no countrywide equal pay gap was found in the 83 countries
covered. We comply with disclosures on equal
pay in relevant markets as required by local
legislation and methodologies specified (e.g. inFrance, Switzerland and the United Kingdom).
We have now implemented the Nestlé Policy
against discrimination, violence and harassment
at work across all markets. Discrimination,
violence and harassment at work areincompatible with the Nestlé purpose and values,
Corporate Business Principles, as well as with
the Nestlé Leadership Framework behaviors. This
Policy sets out the core principles of a respectful
work environment and standards to prevent any
form of discrimination, violence and harassment
at work.
We have also recently launched our first Global
Guidance for Menopause at Work to provide
support to Nestlé employees experiencing
menopause symptoms.
External recognition in 2023
– Bloomberg Gender-Equality Index recognized
Nestlé for our transparency in gender reportingfor the fifth consecutive year.
– Forbes included Nestlé in the European
Diversity Leaders list.
– The Times of London and Business in theCommunity recognized Nestlé UK and Ireland as
one of the top 50 employers for gender equality.
– The Impulse Award for the Promotion of
Women FEDEPE was awarded to Nestlé Spain.
– Accelerate DEI Index 2023 named Nestlé
Mexico on a list of the 12 most diverse,
equitable and inclusive companies.

People with disabilities
Notable achievements in 2023 include
supporting 13 964 young people with disabilities
as part of our Nestlé needs YOUth program.
Nestlé Brazil’s Garoto factory now employsaround 100 staff with hearing impairments.
In France, Nespresso has teamed up with the
Café Joyeux chain to market a coffee whose
profits support the employment of people
with disabilities.
External recognition in 2023
Nestlé US and Nestlé Purina PetCare received
the highest possible score of 100% in the 2023
Disability Equality Index of the Best Places
to Work, an initiative from the American
Association of People with Disabilities andnonprofit group Disability:IN.
LGBTQI+ community
We are creating a more inclusive workplaceso that everyone can bring their full self towork, feel safe to share their ideas and makemeaningful contributions.
We also strengthened inclusion on transgenderissues by driving sexual orientation, gender
identity and gender expression awarenesssessions and support programs. Local examples
include work by Nestlé Philippines, with active
participation in the Philippine Financial andInter-Industry Pride, which helps LGBTQI+
groups with coaching, mentoring and youth
development. This is supported by training for
employees on inclusive hiring.

In 2023, we also launched new employee
resource groups in various markets – including
the Latin American region and Switzerland.
These are designed as empowering, safe
spaces for conversations and dialogue
around LGBTQI+ topics. Nestlé Brazil has
adapted its communications to be inclusive totransgender people.
External recognition in 2023
Nestlé Mexico obtained The Best Places to Work
LGBTQ+ 2023 certification from HRC Equidad
MX, a human rights campaign foundation.

Outlook
Achieving true and lasting inclusion is a journey.
We will continue to drive progress across ourCompany, supporting our markets and businesswith tools, insights, learnings and resources.
To progress racial and ethnic inclusion within
our suppliers, we will be piloting a supplier
diversity program across select markets. We arealso developing our first Global Guidelines andToolkit for Inclusion of People with Disabilities.

Race and ethnicity
We are proud that 85.7% of the senior executive
leaders (management committee positions) in
our markets are held by local employees. During2023, Nestlé Brazil launched the Ônix Programto accelerate the professional growth, skills andcompetencies of black people toward leadership
positions. The market also became a founding
member of the MOVER coalition to address
racial inequity.
Nestlé Australia launched its Reconciliation Plan.
This expresses our commitment to strengthen
relationships with Aboriginal and Torres Strait
Islander peoples and communities.
Generations
In 2023, our Nestlé needs YOUth program
celebrated its 10th anniversary. The programsupports young people by focusing on threepillars: Employment and Employability,
Entrepreneurship and Agripreneurship. For
more on our progress, read the Opportunities
for young people chapter and the program’s
10th anniversary impact report.

* The number of board committees chaired by a woman.

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Our diverse and inclusive culture

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56

Opportunities
for young people

Context
Young people are a crucial part of any
company’s long-term talent pipeline. Yet
globally, according to the International Labour
Organization, one in five young people are not in
education, employment or training, or they havea job that keeps them in poverty.
Investing in youth employment brings numerous
benefits to society. Nurturing young people’s
ideas and giving them the skills, knowledge andopportunities to succeed helps improve personaleconomic circumstances. It also contributes tosocial development in their communities andsupports respect for human rights, specificallythe right to work, with ‘just and favorable
conditions of work and protection against
unemployment’, as set out by the UN.
Young people are at the heart of regeneration.
As the UN Population Fund has highlighted,
young people are increasingly moving to cities
and the average age of farmers in many parts of
the world is 50 years old or over.
Encouraging young farmers to be agripreneurs,
to adopt regenerative practices and to run
viable, resilient businesses will help feed theworld’s growing population. It will also help us
to achieve our net zero ambitions and safeguard
our shared future.

Providing jobs for a diverse
generation of young people,
equipping them with skills andnurturing entrepreneurial talent
are vital in the shift to moreregenerative food systems.
Table of contents

During 2023, we:– Enabled 2.1 million people with new skills and work opportunities.
– Grew our network of agripreneurs, providing support and training foryoung farmers.
– Sustained progress in helping 10 million young people around theworld have access to economic opportunities by 2030.
– Grew the Nestlé YOUth Entrepreneurship Platform to 9766 users in its
first year and celebrated the 10th anniversary of Nestlé needs YOUth.
– Piloted Because Youth Matter with UNESCO, awarding 20 community
innovation grants.

Opportunities for young people

Failure to provide appealing opportunities foryounger generations could have a detrimental
effect on both the quality and quantity of thetalent pipeline within the Company. If we do noteffectively engage and motivate young people tobecome farmers and agripreneurs, it may hinder
our ability to accomplish our environmental
ambitions. The above factors may potentiallylead to talent and/or skills deficits, and impacts
on our reputation. For more on business risks,
please refer to the 2023 Nestlé Annual Review.

To track our progress, we put in place
the following KPIs:
Progress toward helping 10 million young people aroundthe world have access to economic opportunities by 2030
(millions)

Ambition
7.7

Cumulative total
Yearly total

10.0

5.6

3.8

2.4
1.4

0.04

0.4
0.4

0.9

1.0

2017

2018

2019

2020

8 464

Young farmers trained throughthe Nestlé Agripreneurship
Program (5 121 in 2022)

10 807

Apprenticeship and traineeship
opportunities (11 495 in 2022)

23 804

Nestlé employees hired under
30 years old, unlimited andtemporary contracts

1.4

2021

1.7

2022

2.1

2023

2030

3 652*

People reached through the
YOUth Entrepreneurship
Platform (YEP) with some basic
but tangible benefit from Nestlé,
a new metric for 2023

1 393 147

Young people impacted throughdigital events (e.g. career
fairs, educational webinars,
e-learning programs) that focus
on upskilling young people andmaking them more employable(1 415 687 in 2022)* KPI methodology was updated in 2023 to account for YEP data; definitions can be foundin the reporting methodology document.

SDG contributions

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides
details and definitions and can be found here.

Creating Shared Value and Sustainability Report 2023

57

innovation programs globally. It is designed toinspire young people to co-create new ideasthat can shape the future of food and build acommunity of like-minded people.
We are also cultivating an online communityof young farmers with the Nestlé Agrinest
initiative, created to encourage regenerative
approaches and share our expertise through freelearning modules.

All of the generations
working at Nestlé have avital contribution to maketo the business and tocreating shared value.

ApproachThrough our Nestlé needs YOUth initiative we
aim to create opportunities for young peopleof all genders, races, beliefs and experiences.
In 2023, we celebrated the initiative’s 10th
anniversary. Its three pillars – Employment
and Employability, Agripreneurship, andEntrepreneurship – empower young people
by providing access to apprenticeships,
traineeships, upskilling and job opportunities.
We are embracing young people’s diverse
perspectives and helping them turn their ideas
into viable businesses that work in harmony
with the planet. This will help create moresustainable jobs, in line with our 2050
Net Zero Roadmap.
Individual markets and geographic zones direct
bespoke workstreams and are coordinatedglobally with the participation of five Executive
Board members. We use our brand equity togenerate creative and useful experiences foryoung people at the start of their journeys in
our industry.
Expanding online communities
We are increasing efforts to engage young
people digitally, including through the Nestlé
YOUth Entrepreneurship Platform (YEP). Thisis a dedicated website that showcases Nestlé’sTable of contents

Opportunities for young people

7.7 million Performance
young people aroundthe world withaccess to economic
opportunities
since 2017.

Nestlé actively advocates for young people
in collaboration with the International Labour
Organization, the Global Apprenticeship
Network and the Global Alliance for YOUth. The
Global Alliance for YOUth, co-founded by Nestlé,
is a business-driven movement of organizations
working together to help young people thrivein the world of work. Its new initiative, Because
Youth Matter, conceived and launched with
UNESCO, was piloted in Latin America,
awarding its first grants in October 2023.
Through all our efforts, we are committed tohelp 10 million young people gain access toeconomic opportunities by 2030.

As we marked our 10th anniversary year for
Nestlé needs YOUth, we remained on track toexceed our target of helping 10 million young
people gain access to economic opportunities
by 2030. In 2023, 10 807 apprenticeships andtraineeships opportunities were offered; 1 393 147
young people attended digital upskilling events;
23 804 job opportunities were created; and72 630 young entrepreneurs received some basic
but tangible benefit from Nestlé.
In total, we succeeded in creating 2.1 million
opportunities through the Nestlé needs YOUthinitiative in 2023, taking the cumulative total
since announcing our commitment in 2017 to
7.7 million.

We are embracing
young people's diverse
perspectives and use ourbrand equity to generatecreative experiences.

Employment and employability
In Sub-Saharan Africa, we established a seriesof scientific seminars in collaboration withpartner universities. Conducted as part of ourAcademic Alliances Initiative, we engaged
with universities' and research institutes'
knowledge and expertise, while supporting
local students in their studies. The seminars
complement students’ university studies withthe goal of closing the gap between academic
work and the application of science in reallife conditions, while considering the complex
innovation environment.

Agripreneurship
We want more entrepreneurial farmers, who
we call ‘agripreneurs’, in our value chains and in
those of our peers. Through our long-standing
Nestlé Agripreneurship Programme, we haveengaged 8 464 agripreneurs, including 8 000
under 30, who are training to become futurefit farmers.
Our agripreneurship support included a webinar
series hosted by our brand Golden Morn, in
collaboration with the Pan Atlantic University
in Nigeria. We also supported young coffee
agripreneurs via the long-running Fazedores deCafé (Masters of Coffee) program in Brazil andworked with young dairy farmers in Pakistan via
the Nestlé Farmer Connect initiative.
The UN Global Compact organized the SDG
Youth Innovation Accelerator, a competition
to inspire young innovators in sustainability.
We participated with three teams from Nestléin Switzerland, demonstrating responses tospecific business and sustainability challenges.

In Brazil, Nestlé collaborates with the Universityof Viçosa through a Dairy Farming Development
program. More than 2 600 young people havesuccessfully completed the course over thelast four years. They have acquired practicalexperience in the technical and economic
management of 40 surrounding farms and left
with a 95% employability rate.

Closing the gap between
academic study and thereal application of skills
is an important stage on
many career paths.

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58

Engaging
future farmers

Entrepreneurship
Since launching in 2022, we have cultivatedan international community of more than 9 766‘YEPers’ who have registered on the platform.
More than 3 689 users have benefited fromone of the training modules on the Nestlé YEP
Academy. Over the past 12 months, we havereached over 17.7 million young people throughtargeted social media campaigns.
In March 2023, we announced a newpartnership with UNESCO, Because Youth
Matter. Focusing initially on Latin America,in October it awarded 20 grants of USD
10 000, along with training and mentoring,to help young people achieve positive social
impacts through innovative projects in theircommunities. The pilot project attracted over
900 proposals from 17 countries covering
equality and social inclusion, climate action andmental health and well-being.
In the United States, we teamed up with
the non-profit Girls With Impact (GWI) to
help upskill the next generation of female
entrepreneurs. Nestlé provided scholarships formore than 100 women to participate in GWI’s
2023 ‘mini-MBA’ program that teaches future
innovators key entrepreneurship and leadershipskills. The winning student received a cash prize
to kick-start her business, as well as a fourmonth mentorship from one of Nestlé’s R&D
team members.

Entrepreneurship and Agripreneurship canhelp young people seize opportunities andhelp to advance regenerative food systems.

Outlook
We believe that promoting Entrepreneurshipand Agripreneurship may yield great rewards, as
young people's ideas offer exciting potential to
improve the way we cultivate, produce, package
and distribute food.
We will enhance the Youth Entrepreneurship
Platform and make it simple for 'YEPers' tosubmit ideas. We will expand our community
management to engage untapped markets andcollaborate more widely. We will also grow ourAgrinest initiative, with 25 online dairy courses
to be launched in 2024. This will, we hope,increase regenerative practices around theworld, with the potential to make a difference tothe lives of many.
Our efforts to address youth employment andemployability will also continue, with the aim
to engage the imaginations of young people on
specific business and sustainability goals.

According to the United Nations,
growing numbers of young
people around the world arechoosing not to enter farming.
Could sustainability be the factor
that keeps them interested?

with his new and growing knowledgeof dairy sustainability, Anthony
approached his local Nestlé contact
to support him on his campaign. It
was obvious that our Nestlé needs
YOU program in the U.S. – part of the
global Nestlé needs YOUth initiative –would be a great fit.

Anthony Agueda’s family had been
supplying milk to our brand Carnationfor over 50 years, but he had noreal contact with the people in thebusiness his family ran. As a seniorin high school, Anthony was trying toplan his future, unsure whether dairy
farming was going to be his longterm path.

Yann Wyss, Nestlé Global Head ofSocial Impact and Human Rights:“Our program identifies and enables
up-and-coming talent and supports
them with practical advice, soft skills
and connections. It helps ambitious,
talented people like Anthony build
networks of like-minded, ambitious
individuals, passionate about making
a genuine difference. We were superexcited to be able to support him.”

While refining his career skills, hetook a chance and reached out tosome of the people who his father
worked with: “I asked the team on thefarm if they would help me practiceinterviewing,” said Anthony. “Not only
did they help with that, but they went
over my resumé and taught me a lot
about sustainability in dairy.”During this period, Anthony had
applied to compete in the 2022 Future
Farmers of America (FFA) annual
convention in Indiana. Empowered

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Opportunities for young people

Anthony Agueda is now primed for a career
as a farmer embracing sustainability, with agrowing network.

on my family dairy farm after college.
I’m 100% going to be a voice for the
dairy industry.”

The Nestlé needs YOU team in the
United States sponsored Anthony andaccompanied him to the competition,
where they also hosted a meet-andgreet with students interested inagricultural advocacy.
“By investing in me and giving me
insight into why they are investingin sustainability projects at our dairy
farm, Nestlé has helped cement thefact that I want to continue working

Two years later, Anthony is primed fora career as a young farmer, embracing
sustainability, and has represented his
industry and generation in the media
and at events. Nestlé needs YOU has
also deepened their engagementwith FFA, bringing an interactive
experience to the 2023 convention
and connecting with more than 17  000next-generation agripreneurs online.
As Anthony's generation tackles therealities of resource scarcity and achanging climate, we need more
knowledgeable and passionate
young farmers like him to enter theindustry. With their help, advancing
regenerative food systems at scale iswithin reach.

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An employerof choiceContext
For many, 2023 was defined by extreme weather
events, a persistent cost of living crisis and theimpacts of conflicts. In this challenging geopolitical context, there is a growing interest in
pursuing careers with meaning.

To track our progress, we put in place
the following KPIs:
0.66 Recordable illness rate per million hours worked

0.71

Our experience shows that employee sentiment
increasingly places importance on working for
a company that has a purpose. Candidates
seek work built around shared values, that
address topics such as the environment andsocial equity.
During the recruitment process there is a greater
personalization in meeting the needs of potential
employees and in how roles are defined.
Employees everywhere are looking increasingly
for change and growth in their careers.
Our ability to attract, develop and retain adiverse range of skilled people is critical to being
competitive and fostering growth. A skilled,agile and engaged workforce plays a pivotal
role in the sustained success of the Company,
while the loss of key personnel or skills can havedisruptive impacts.

Our people are at the heart of ourambition of being a ‘force for good’.
Supporting their mental, physical andsocial well-being will help sustain an
organization where individuals can thrive.

By the end of 2023:– More than 260 000 of our people were covered by our
Employee Assistance Program.
– Employees had completed on average 15.1 hoursof training.
– 118 401 employees had participated in the My Health
Numbers program since its 2018 introduction.

2021

0.66

0.66

2022

2023

1.17 Recordable injury rate per million hours worked

1.37
1.21

Our commitment to maintaining a safe andhealthy work environment is reflected in ourpolicies, procedures and training programs.
Failure to comply with local health and safety
regulations and/or nurture safe, healthy
workplaces may lead to injuries or fatalities,
regulatory action and impacts on our reputation.
For more on business risks, please refer to the2023 Nestlé Annual Review.

2021

2022

1.17

2023

SDG contributions

Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides
details and definitions and can be found here.

Table of contents

An employer of choice

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60

existing digital channels continue to play animportant role in attracting talent. Nestlé's
online careers section received approximately
27 million page views in 2023, generating over
1.5 million applications.
Our people by type of employment

Retaining talented
people is about enablingthem to grow and fulfill
their ambition, which we
actively support.

Temporary

Total number of employees Female
by employment contract(by gender)*Male

96 1728 471

149 800

7 857

Total number of employees Asia, Oceania andby employment contract
Africa including
Middle East (AOA)(by Zone)

58 304

3 781

Approach

Talent management
Our talent acquisition, development andretention approach is outlined in our People
Strategy 2025: building a future-ready, diverse,
and inspiring workforce that has the ambition of
being a force for good. Our winning culture andvalues bring together talented, passionate andcurious people who unlock the power of food toenhance the quality of life for everyone, today
and for generations to come.
We encourage our people to explore and growby empowering them to identify opportunities
within the Company. This means encouraging
talent mobility where it makes sense andworking closely with our employees to fulfill
their requirements for flexibility, training,
growth and recognition. To equip our workforce
for the future, we have launched a ‘Lifelong
Learning’ campaign, highlighting the essential
critical skills needed to thrive in an everevolving landscape.
Internally, our SuccessFactors online systemenables managers and employees to findguidance and track progress. While externally,

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Permanent

An employer of choice

Total number of
employees by activity
rate (by gender)*Europe (EUR)

77 222

6 975

Greater China (GC)18 280560

Latin America(LATAM)

53 732

4 570

North America (NA)38 495446

Full time

Part time

Female98 503

6 140

Male

154 752

2 905

Figures include Nestlé employees registered in the human resources system(approximately 97% of all employees); definitions are explained in thereporting methodology document.
* The total of male and female do not add up to the total number of
employees due to the other genders (binary, non declared) currently
not disclosed.

Employee health and well-being
A healthy workforce supports innovation andorganizational success. Employee health is goodfor business performance, shareholder value
and the well-being of our people. It is a key
priority as we build our workforce for the future
in an organization that supports all professional
and personal aspirations.
When individuals feel physically and mentallywell, they bring their best selves to work,
leading to increased creativity, engagement andresilience. Prioritizing health and well-being forour people supports a productive workforce andreduces absenteeism. It also fosters a cultureof care and support, ultimately enhancing
employee satisfaction and loyalty.

Internal viewpoint

Employeemental health
Bilyana Georgieva-Voeva
Group Employee Relations andEmployee Health Manager.

Our focus on employee health andwell-being is fundamental to our success.
Having a resilient, agile and overall healthy
workforce is essential to the quality of our workand future success of our business. That is why
for Nestlé, when we talk about caring about
employee health, this includes a strong focus on
physical and mental health and well-being.
The Nestlé Roadmap for Employee Healthprovides the global framework for our approachand helps to ensure that our efforts arecoordinated, transparent, and aligned with our
Corporate Business Principles and businessobjectives. It also helps us to measure progressin this area, identify any gaps and to advanceworkplace well-being across our organization.
Our Roadmap for Employee Health also ensures
we build in the necessary flexibility that markets
need in embedding our approach. This enables
markets to tailor their efforts according to the
local context in line with local priorities to deliver
the most impact. For instance, markets may
offer training on mental health and well-being
and have dedicated initiatives or programs toraise awareness about this important topic.

Our Corporate Employee Health and Well-being
team, reporting to the Global Head of Human
Resources and Business Services, closelycollaborates with the network of Employee
Health and Well-being Managers across
Nestlé, to guide and support them in localizing
their programs in each market. In 2023, 93%of markets offering an Employee Assistance
Program (EAP) directly supported employee
mental health and well-being.
We measure and review the progress of ouremployee health and well-being initiatives using
an Employee Health Dashboard that allows us
to track progress in this area, providing realtime data and metrics. This equips us to makedata-driven decisions about which initiatives aremost impactful.
In addition, as part of placing more leadershipsupport behind this key focus area, we provide
an annual Employee Health and Safety Reportfor the Executive Board and share our approachwith interested stakeholders. Examples ofthis support include the bi-annual update to
the Board Sustainability Committee and the
Employee Health and Well-being Council.
These updates serve to disclose progress,
share gaps and action plans, as well as align on
future priorities.
Our people are at the heart of our business andsuccess. We believe that by strengthening our
focus on workplace physical and mental healthand well-being, we can actively create a positiveand supportive work environment where all our
employees can thrive.

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Safety
We focus on the highest risks and strive toensure the most exacting safety standards
apply at all our sites, operations and projects. To
prevent fatal and serious injuries, we demandthroughout the Company that the eight NestléLife-Saving Rules (LSRs) are applied. Thesetarget the activities that carry the greatest safety
risks to employees and contractors and apply toanyone working on behalf of Nestlé, employees,
and contractors, on or off premises. We
expect everyone’s caring leadership, personalcommitment and actions to comply with the
LSRs and Nestlé safety standards.

To assess, address and report on the risks andopportunities of this topic at a global level, we
have issued the Safety and Health at Work
Action Plan, with key priorities and actions.
The Nestlé Roadmap for Employee Healthsets out the expectations and priorities for
the Human Resources Function and provides
guidance for the markets’ health strategies. The
Roadmap has four pillars, with key milestones
and deliverables:
Foundations: Getting the essentials right onhealth assistance, reporting, crisis management
and ergonomics.

We empower employees to prioritize safety
using our grievance mechanisms such as
Speak Up, if they recognize a situation as being
unsafe. See The foundations of ethical businesschapter for more information.

Governance and capabilities: Strengthening
our health community with measurement tools
and the expertise of our Employee Health andWell-being Council.
Health promotion: Driving education andawareness around healthier lifestyles using anevidence-based approach.
Communication and networking: How weshare information about health with each otherand how we manage stakeholders.

We aim to apply the sameconsistent approach tohealth and safety across allof our operations.

Employee relations and engagement
We recognize the importance of collaboratingwith our employees and their representatives
and organizations, as well as external laborstakeholders. Across our global workforce, weare committed to further strengthening ourculture of respect by:– Upholding our employees’ freedomof association and the right tocollective bargaining.
– Ensuring direct and frequent communicationin the workplace.
– Making all necessary efforts to develop fairand constructive dialogue, reach sustainableagreements and implement them.
– Engaging with external stakeholders,continuously seeking areas of dialogue andmutual understanding.
This vision is supported by our new Nestlé
Employee Relations Roadmap 2025, which aims
to guide our global and local Employee Relations
teams in their mission to nurture employee
engagement and a work environment where
human rights are upheld.

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An employer of choice

Proactive
employee relations

SocialdialogueSocialperformance

Leadership in
employee relations

Employeeengagement andwell-being

By building an Employee
Relations strategy at global,
Zone and local levels to
support the respective
Business Strategy and
People Strategy.

By engaging with our
employees and theirrepresentatives, and byincluding them as theCompany evolves.

By providing our employeeswith good working conditions,a safe and healthy work
environment, and flexible andcontemporary employment
opportunities.

By developing people leadersand Human Resources leaders
who engage with employees
and live by the values ofrespect and inclusivity.

By supporting our employees
through life’s experiences,while inspiring them to be
their best selves at work.

Our Employee Relations ambition:
Nurturing employee engagement and a work environment exemplary in respecting human rights.
Our employees and their representatives are connected with Nestlé’s purpose,
understand the strategic direction of our business and are engaged with its future success.
They realize they are performing meaningful work and contributing to a safe, healthy and inclusive work environment.

Consultations with unions related
to employee health
At a global level, we engage with theInternational Union of Food, Agricultural, Hotel,
Restaurant, Catering, Tobacco and Allied
Workers’ Associations (IUF), through biannual
meetings and working groups focusing on
specific topics such as health and safety. At theregional and market level, we engage with work
councils, labor federations, external experts andbusiness organizations to find opportunities forcontinuously improving our labor practices. Since
2020, monthly meetings are organized with the
Nestlé European Works Council, including topics
such as health and safety. At a local level, Nestléis also encouraging joint initiatives with tradeunions on corresponding topics. For example, in
the United Kingdom, Nestlé has implementeda Guidance for Menopause at Work, which was
proposed by the trade unions.
Involvement with trade unions
on social matters
We ensure that direct and frequent
communication is established at the workplace
between management and our employees,
both union members and non-union members.
Informing and consulting sessions with workers
and their representatives at Nestlé take place
at local, regional and global levels. At a local

level, consultation platforms are establishedaccording to national legislative requirements.
At a regional level, we have established a
European Works Council covering Nestlé Group
companies present in countries of the European
Union, plus Iceland, Norway, Switzerland and theUnited Kindgom. The Council meets regularlyin the presence of Company and employee
representatives for those countries. At a global
level, since 2013 Nestlé has undertaken regulardialogue with the IUF. This enables discussions
on social issues, which in 2023 included joint
working groups on social sustainability andgender equity.
Compensation and benefits
We ensure that our employees are rewarded
and recognized for their contributions withcompetitive pay and benefits. Our Nestlé Total
Rewards Policy provides a framework where
our teams can create programs that attract,
motivate and retain talent.
Organizational design andchange management
We manage our purpose and values at a global
level, providing our markets with the support
they need to ensure a consistent culture
throughout the Company. We always take local
legislation and cultural and religious practices
into account.
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62

Performance

For external recruitment we have launcheda series of new technology platforms tocomplement our people-centered approach
to hiring. These bespoke, often AI-based
platforms, streamline parts of the hiring process,enhancing the candidate experience. They
include a virtual pre-boarding portal, automatedinterview scheduling, gamification-based
assessments and a careers site chatbot.

As set out in the earlier Advancing human rights
chapter of this report, in 2023 we launched the
Nestlé Human Rights Salient Issue Action Plans.
These comprehensive plans articulate ourstrategy for embedding, assessing, addressing
and reporting on each salient issue to thebusiness and the communities we serve. Fulldetails of all of the plans can be accessed via our
website here.

We have embedded skills as a foundational
element of our People Strategy 2025 – andas a key pillar of our future-ready workforce
initiative. During 2023, we launched the Digital
Skills Initiative to provide Nestlé employeeswith a Digital Skills Baseline, Data Literacy,
Intelligent Automation and Digital Well-being.

We track and monitor the performance andeffectiveness of our measures (see page 64).
Our safety KPIs include:– Recordable injury rate per million
hours worked.
– Total recordable fatalities from injuries.
– Total irreversible injuries.
Talent management
In 2023, our Talent Marketplace platform,
designed to create opportunities for employee
self-development and growth, continued to
expand. We now have 20 000 users, across
20 markets, six categories and two global
functions registered on the platform.

Since 2001, we have held
two campaigns each year,
engaging employees ina wide range of physical,
mental and financial wellbeing topics.

Employee health and well-being
2023 marked the final year of the first Nestlé
Roadmap for Employee Health. Launched in
2021, its vision was to inspire and empower
our people to choose a healthier future forthemselves, their families and our business.
By the end of 2023, the Roadmap wasembedded in all our markets, with 100% of thedeliverables for the corporate Employee Healthand Well-being function achieved. We also
launched the new 2024–2026 Roadmap for
Employee Health and Well-being.
In accordance with the ISO accreditation
process (ISO 45001 for Occupational Health and
Safety), we provide an annual strategy reportto our Executive Board, summarizing current
performance, the main risks, what is working
well and areas for improvement. In 2023, under
the leadership of an Executive Board member,the new Employee Health and Well‑being
Council was created. This serves as a sounding
board for new initiatives and as a platform togenerate commitment and alignment fromthe senior organization’s leadership acrossdifferent functions.

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An employer of choice

In 2023, the KPIs for illness among employees
were as follows:– Total recordable fatalities from illnesses: zero.
– Total irreversible illnesses: 16.
Global programs and initiatives
Educational programs, such as #HealthyLives
training, with modules on nutrition, sleep,
physical activity and mental health, continue toplay a key role in building the foundations for
informed decisions on healthier lifestyle choices.
By the end of 2023, 55 113 employees had
watched the videos, generating 701 704 views,
up from the 2022 cumulative total of 509 974.
The My Health Numbers program monitors our
employees’ overall health risks and enables us
to develop precise mitigation risk strategies.
By the end of 2023, 118 401 employees had
participated in the program since its 2018
introduction. Mental ill-health, unhealthy eating,lack of physical activity and excess weightremain the most prominent health risks. A newversion, with a more comprehensive panel ofexams, was launched and trialled in Switzerland
in 2023, with positive feedback.

As part of our commitment to ensure theavailability of healthy food at Nestlé, in 2023,
96.0% of our canteens offered healthy meals,
with 38.0% of our markets already providing a
nap room or equivalent space for rest.
Our Employee Assistance Program (EAP) is now
available in 93% of our countries, covering morethan 260 000 employees. An external service,
it provides free, qualified and confidential
employee counseling and support in local
languages via dedicated helplines.
Supporting employees and caregivers
affected by cancer
In January, we signed the #workingwithcancer
pledge (#WWC). The campaign, launched at
the World Economic Forum in Davos, seeks toelevate the role of the workplace in supporting
cancer. On February 4, World Cancer Day, we
launched a global internal communications
campaign, achieving 19 000 views. We willcontinue raising awareness to strengthen our
culture of understanding, caring and support
for employees and their families affected by
the disease.

Since 2021, we have held two global HealthyLife Days campaigns for employees each year,
timed around World Day for Safety and Healthat Work on April 28 and World Mental HealthDay on October 10. The campaigns reached
227 000 views in 2023, engaging employees ina wide range of physical, mental and financial
well-being topics. There were sessions on
holistic health topics, such as mental health andbuilding resilience, healthy eating, financial wellbeing, mindfulness, sleep, ergonomics, working
with cancer and menopause. We also further
developed our Pleaz global digital platform,
generating 123 374 activations, encouraging
employees to take active breaks during the day
through short and engaging guided videos.

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63

Outlook

We continue to strengthen our safety culture
toward zero harm, with people at the centerof everything we do, by executing our safety
strategy. The strategy targets our highest
risks – machinery safety, materials handling androad safety.

The Nestlé Parental
Support Policy is currently
fully implemented in 100%of our countries.

233 385

employees having
access to My Health
Numbers program

3 885

views of Health
Talk webinars

227 000

employees
reached by global
health promotion
campaigns

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Employee relations and initiatives
During 2023, we continued to update our
Employee Relations strategy and implement
policies, see metrics below:– The Nestlé Parental Support Policy is currently
fully implemented in 100% of our markets.
– The Nestlé Policy against Discrimination,
Violence and Harassment was implemented in
100% of our markets.
– The Nestlé Global Guidance for Supporting
Employee Victims of Domestic Violence wasoperating in 89% of our markets.
– 93% of markets were offering an EAP tosupport employees' mental health andwell-being.
– 93% of markets were providing supportive
measures for employees working with cancer.
– 58 272 primary and secondary caregivers used
paid parental leave.
– 92.7% retention of primary and secondary
caregivers who used paid parental leave after
one year.
– 52.7% of total employees covered by collective
bargaining agreements.

An employer of choice

SafetyIn 2023, we continued the implementationof our digital safety roadmap, with additional
technologies designed to eliminate serious
incidents and support employees to comply with
our eight Nestlé Life-Saving Rules (LSRs).
Nestlé continues to pioneer the use of virtual
reality to build safety competencies. We have
expanded our catalogue of virtual reality
modules for our markets, focusing on LSRs,
warehouse safety and offices.
Despite our continuous efforts to provide safe
working conditions we deeply regret that one
colleague lost their life while working for us in
2023 (six in 2022). The fatality occurred at oneof our Distribution Centers. The fatal accident
was carefully examined by an independent
investigation team to establish the root causes.
We have taken action to prevent a recurrence andshared the lessons learned across the Company.
In 2023, 645 of our sites had zero recordable
injuries, a 5% reduction compared with 2022,
and our Group recordable injury rate per million
hours worked was 1.17. However, there werestill 10 irreversible injuries in 2023 (22 in 2022).
We believe that the occurrence of any incident
is unacceptable.

Capability building
In 2023, we prepared the launch of a new
Learning Experience Platform that aggregatesformal and informal learning assets using AI
technology across a wide range of subjects.
We also developed learning paths to build
capabilities at scale for a range of transferable
skills that reflect the fast-evolving technology
context. Such skills include critical thinking,storytelling and influencing without authority.
We will deploy the paths for our global audiencein 2024.

We will continue to implement our Safety and
Health at Work Action Plan across all markets.
The Plan includes strengthening our safety
culture in the context of our zero-harm ambition.
Our new Employee Health and Well-being
Council will play an increasingly significant role,considering all of our locations and functions.

Our new Employee
Health and Wellbeing Council plays an
increasingly significant
role in strengthening oursafety culture.

We will publish the 2024–2026 Nestlé Roadmap
for Employee Health and Well-being andassess the learnings from our pilot. We will
also publish Psychological Health and Safety
at Work guidelines and Nestlé will join the
Executive Committee of the Global Road Safety
Partnership. We will continue to guard againstcomplacency, actively considering all hazards.

Compensation and benefits
We continue to update our rewards and benefits
packages to meet the needs of our multinational
workforce. In 2023, we were able to introduce
the Lifestyle Spending Account benefit for
employees in North America, offering funds forflexible spending to support well‑being.
In Central America, we offered a new, wider
range of services and benefits to reflect thediversity of our workforce in the region. In Asia
and Europe, we augmented an electric car
scheme, providing sales teams with low-carbon
means of transport.
Over 135 000 employees now have accessto a Total Rewards Statement that provides
a summary of their main compensation andbenefits offerings to further improve clarity,awareness and engagement. We continue tomonitor the economies where we have facilities
to ensure that our teams' pay and benefits arecommensurate with their efforts.

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64

The foundationsof ethical business

Context

Approach

The trust of internal and external stakeholders
in our Company, products, services and brands
is essential. It is maintained by consistently
operating with high standards of integrity, as
well as compliance with laws, regulations andour own commitments.

Everyone at Nestlé is expected to conductbusiness in an ethical and principles-basedmanner, even in the absence of legal or
regulatory frameworks. We take a coordinated,holistic and principles-based approach tocompliance and risk management. We closely
monitor our conduct against regulatory
requirements, societal expectations and ourinternal standards. Our commitment to act
with respect for ourselves, others, diversity
and inclusion, and the future is enshrined in
Nestlé’s Purpose and Values.

We operate with complex value chains. In thiscontext, conducting business ethically and incompliance means closing any gaps between
intentions and actions. All interactions with
consumers, customers, employees, suppliers,
investors and regulators must always align with
the Nestlé Corporate Business Principles.
To equip and empower every one of ourcolleagues to do the right thing, Nestlé provides
a risk-based ethics and compliance framework,
based on our set of core values. Operating
consistently in line with Nestlé's Corporate
Business Principles is essential for protecting
our reputation and brands. Any deviations fromthese standards have the potential to impact our
reputation and relationships with stakeholders.
For more on business risks, please refer to the2023 Nestlé Annual Review.

For Nestlé to remain successful in the long term, we must
continue to earn and retain the trust of our employees,
consumers, customers, suppliers, shareholders and wider
society. This depends on us acting ethically and with respect
for our own values, principles and policies and in compliancewith the laws and regulations where we operate.
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The foundations of ethical business

By the end of 2023:– 194 CARE Audits were
performed at our sites.
– 2 341 messages were closed
and 691 were substantiatedthrough the Speak Up channel
and other means.
– 970  000 compliance training
modules were completed.

SDG
contributions

In line with our purpose and values, the Nestlé
Corporate Business Principles guide the actions
and behaviors of everyone in the Company. The
Principles reflect our culture, which has evolved
over the last 150 years, and are supported by the
Nestlé Code of Business Conduct (the Code) andother policies.
In particular, the Code specifies certain nonnegotiable minimum standards aligned with
the UN Global Compact, Principle 10. It covers
key areas of employee behavior, including
integrity, compliance with laws, conflicts ofinterests, antitrust and fair dealing, bribery andcorruption. The Code also sets out expectations
on discrimination and harassment andaccurate reporting and accounting. Where ourown principles and policies differ from local
legislation, the higher standard applies.
The Nestlé Responsible Sourcing Standard
includes clear obligations for our suppliers
in relation to business behaviors and ethics,
which we monitor through formal due diligenceprocedures run by our global and local
Procurement units.

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Our four Compliance Program pillars
1. Compliance governance and culture
Our senior management is committed todriving a strong culture of business ethics andcompliance throughout the Company. Ourpolicies, standards and procedures define thedesired behaviors and are supported by robust
governance and processes. These enable
us to proactively uphold our values, address
relevant risks and meet incremental regulatory
requirements. They also reinforce a Speak Up
culture, where any potential non-complianceincident may be reported (see the Performance
section of this chapter).
2. Communication and training: disseminationof processes and tools
Regular communication with our employees
helps promote a responsible mindset
and reinforces our ethics and compliancerequirements. To support and monitor thisprocess, we make use of training materials andtools that are regularly updated.

The Group Compliance
Program supports
the development andimplementation of
the Nestlé Corporate
Business Principles.

Business ethics and complianceTo strengthen and sustain a business ethics andcompliance culture throughout the organization,
we implement a comprehensive ComplianceManagement System. This comprises policies,
processes, controls and tools. At its heart lies
our Group Compliance Program, which setsout appropriate governance, organization,
processes and activities for effective compliance.
The program also supports the continuous
development and implementation of the Nestlé
Corporate Business Principles.

3. Monitoring and reporting
Through our CARE audit program, we assess
compliance in all Nestlé operated sites. This
covers human rights, conditions of work andemployment, business integrity, safety andhealth, environmental sustainability, security,
local communities and labor accommodation.
The program relies on an independent external
audit network.
In line with the Nestlé Corporate Business
Principles, everyone in the organization is
encouraged to speak openly on any matter.
They can do this via various teams, including
line managers, human resources andcompliance teams.

A global helpline provides both Nestlé
employees and any external stakeholders
with the opportunity to raise non-complianceconcerns. Called Speak Up, this reporting
channel can be accessed via corporatewebsites, QR code and web form or through aphone line. Independently operated by a third
party, Speak Up ensures confidentiality andanonymity when requested and complies withall local regulations.
Our Human Rights Framework and Roadmap
provide a comprehensive approach forassessing and developing preventive andcorrective measures to respect human rights inour business, including in relations with third
parties. For more, see Advancing human rights.
4. Closing gaps
We carry out continuous risk assessments todefine the priorities and focus areas of ourCompliance Program. We ensure that ethicaldiscussions, consequence management andaction plans are duly executed.
Automated and universal systems
and processes
The continuous deployment and improvementof digital tools provide effective and actionable
monitoring and reporting support for the
execution of our Compliance Program.
Managing data responsibly and ethically
Our commitment to protecting personal dataand privacy is reflected in our mandatory Global
Privacy Program, our Data Ethics Frameworkand the Nestlé Corporate Business Principles.
We are transparent about how we processpeople’s data and provide meaningful controls
over how personal data are stored, collected andused. Nestlé aims to meet not just legal datarequirements, but also to do what is right.
In line with the Nestlé Corporate
Business Principles, everyone in
the organization is encouraged
to speak openly on any matter.

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The foundations of ethical business

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External viewpoint

The new frontierof ethics anddata in digitaladvertising
Gabrielle Robitaille
Senior Digital Policy Manager,
World Federation of Advertisers (WFA)

How digital advertising is responding to
the growing demands of consumers fortheir data to be used responsibly.
According to our recent research, 90% of Chief
Marketing Officers now view the ethics of how
they use consumer data as a top priority. It
makes what we do here at the World Federationof Advertisers (WFA) extremely interesting. We
have a role to play in helping to ensure that theinterests of consumers are protected, which is a
big responsibility.
The WFA is a global organization representing
the interests of more than 150 of the world’s
largest brand advertisers, and over 60 national
advertiser associations worldwide. We champion
better marketing, helping brands to connect andcommunicate with consumers in fun, engaging
and innovative ways.
Businesses today are expected to deliver,
not only on financial performance but also
demonstrate how they are making a positive
contribution to society and this extends toTable of contents

Performance

how they conduct their marketing operations.
We believe advertising must be conducted ina responsible, non-intrusive and ethical way
and should reflect the evolving needs andexpectations of people and society.

Speak Up is an accessible grievance mechanism
tool to capture complaints and feedback from
employees and any external stakeholders. It
helps enable a compliance culture and dailyadherence to the values of our Corporate
Business Principles.

Data-driven marketing has become key,
helping brands reach consumers with the rightmessages at the right time. It offers personalized
experiences, with increased engagement andreturns on investments. But consumers are
increasingly concerned about how their data
are used and shared for advertising purposes,
claiming they feel ‘overwhelmed’ by the senseof being observed in the name of advertising.
They are calling for more transparency andmore control over their advertising experience
as a result.
There are now data protection and privacy
laws and regulations in over 120 jurisdictions
across the world. Regulators are introducing
new restrictions on what data can be used foradvertising, over concerns that the ad-funding
business model undermines fundamental
rights online.
Brands today are expected to make sure theirmarketing activities do not contribute to theunlawful exploitation of user data, perpetuatebias or fund harmful content or disinformation.
And to deliver, they must promote ethicaldata practices and take responsibility for thetechnologies they use and the data-related
choices their marketers and suppliers make. By
doing so, they will retain the trust of consumers
and propel a more responsible path forward forthe digital advertising industry.

Every allegation reported through Speak Up
is professionally and confidentially handled.
A continued increase in awareness of Speak Up
led to an increase in the volume of messages
received in 2023. The number of substantiatedcases has also increased compared to 2022.
In 2023, we received 2 874 messages on
non-compliance allegations and compliancerelated questions. Of the cases investigatedand closed, 691 messages were substantiated.
As a consequence of substantiated cases,
122 employees had to leave the Company and
15 service providers’ contracts were terminated.

Technology is connecting
Nestlé employees toresources, for a consistentexperience wherever they
are located.

Our global KPIs on 'total messages received,
closed and substantiated through Speak Up
system' clearly show the effectiveness ofthe tool.

Non-compliance concerns raised throughSpeak Up by category
Messages received throughSpeak Up system

Messagesreceived

Messages
substantiatedAbuse of power and/or mobbing/bullying

768

227

Unfair treatment

565

68

Labor practice

249

69

Harassment (excluding sexual harassment)

214

44

Fraud (misappropriation or misconduct inaccounting/financial statement)

131

43

Safety and health88

21

Violation of laws/regulations

104

27

Gifts, families and relatives, conflicts of interest

109

30

Bribery and corruption

47

5*

Violence and discrimination

172

53

Sexual harassment

104

29

Confidential information, Privacy Policy (dataprivacy, trade secrets, intellectual property)

51

18

Third-party compliance

135

48

Seeking compliance advice

65

0MANCOM members related

46

3

Human rights (child labor, forced labor andmodern slavery risks)11

Environmental impact

81

Economic sanctions

20

Antitrust and fair dealing

80

Non-compliance with WHO Code7

4

Executive Board member/senior managers
in Switzerland

00* Messages substantiated did not involve government officials.

Speak Up cases
Total cases through Speak Up
Total cases substantiated
2021

2022

60%

2023

Total cases closed

580

1 944

Total non-compliance concerns raised:2475
578

1  758

Total non-compliance concerns raised:2 516
691

2 341

Total non-compliance concerns raised:2 874

Digital advertising accounts for over
60% of global advertising spend
today, up from 15% 10 years ago

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Data protection and privacy
We continuously monitor and respond tochanges to legislation in all the markets where
we operate. In 2023, we published an updated
Nestlé Privacy Standard that underlines ourcommitment to respect privacy and sets out thestandards for how we process personal dataof Nestlé’s consumers, employees, customers,
suppliers, service providers and others in
our value chain. This also includes putting inplace safeguards around new technologies
and emerging applications we use, such as AI
or GenAI, to ensure the safety and security ofconfidential and private information as well as
intellectual property linked to our Company,
our people and our brands. The Standard
has been updated with our commitment tonot collect personal data from minors under
the age of 18 for the specific purposes ofmarketing communications.
During 2023, we continued to implement ourSalient Issue Action Plan on Data Protection
and Privacy, mitigating risks through vendors,
employees and other audiences. We have also
responded to ensure our compliance with newdata protection laws. This includes the revised
Federal Data Protection Act in Switzerland andthe EU General Data Protection Regulation.
The number of data breaches notified to therelevant authorities and affected individuals
totaled eight in 2023. This indicator records thenumber of incidents, rather than the number ofpeople affected.

Employees checking
the KitKat final productin Dubai.

Training
To help strengthen our compliance culture
and provide updates, we continue to promote
global mandatory training. In 2023, employees
took more than 970 000 e-modules on topics
including antitrust, compliance, humanrights, security, sexual harassment and the
Nestlé Corporate Business Principles. We
also launched new mandatory training for aselected audience on transacting ethicallyand responsibly, with a focus on anti-moneylaundering, and recommended a course on
anti-bribery and corruption.
In 2023, we launched a values-based leadershipworkshop to provide our leaders with resourcesand experiences that reflect our values and how
they support a culture of business ethics. Over720 leaders, including Nestlé Executive Board
members, participated in various workshop
sessions around the world.
Contributions
Our Swiss organization made CHF 225 000 inpolitical contributions in 2023.

Communications
During 2023, to reinforce our culture andshare training and learning opportunities we
implemented a dynamic calendar of compliancecommunications. Topics included anti-bribery
and corruption, anti-money-laundering andbusiness ethics.

CARE social audits
2023 was the last year of the latest CARE cycle
which began in 2021, with 194 CARE audits
performed in 2023, down from 264 in 2022. Our
CARE program for the upcoming 2024–2026
CARE cycle has been reinforced and enhanced,
particularly in assessing human rights inour sites.
The review content is based on well-establishedsocial auditing methodologies, the Fair Labor
Association (FLA) Code of Conduct and enrichedwith requirements specific to Nestlé. The wide
range of topics includes health and safety,
environment and working conditions. These
include accommodation for on-site workers,
forced labor and responsible recruitment, andverifications of child and young worker labor.
All our operational sites receive a businessintegrity review through the CARE Program thatassesses bribery and corruption prevention andtraining activities.
CARE audits
2021

2022

2023

Locations covered by CARE audits

379

389

440

CARE audits carried out

247

264

194

CARE audit improvement opportunities identified

333

511

298

CARE audit gaps closed

161

283

186

In 2023, over 720
leaders participated invalues-based leadershipworkshops worldwide.

We published an annual compliancecommunication dedicated to Speak Up, which
we rolled out across all our markets. To reinforce
our commitment on preventing retaliation,
we conducted activities on International
Whistleblower Day.
We provide transparency on the number ofmessages we receive and the number ofsubstantiated cases during the year. We also
provide the number of disciplinary actions theCompany has taken.

Table of contents

The foundations of ethical business

Creating Shared Value and Sustainability Report 2023

68

Internal viewpoint

How CARE audits
in France support
vulnerable workers
Lydia Meziani
Legal Director, Compliance, Ethics
and Human Rights Department.

Team performs CARE audit
review in Côte d’Ivoire.

Outlook
Looking ahead, Business Ethics andCompliance will continue to serve as a key
pillar for sustainable business growth and a
non-negotiable requirement for everything
we do. Each year we review and reinforce ourCompliance Management System to ensure
a risk-based approach. This reflects external
factors such as society’s expectations andincreasing regulatory requirements, as wellas internal factors and insights provided byprocesses and tools.

During 2024, we will continue to build on ourstrong foundations and to rapidly respond toand address the constantly changing regulatory
landscape and social environment. We foresee
needing to strengthen our Third-Party Risk
Management and ensure our mandatory
training and communication campaigns
remain relevant. We will also be responding toforthcoming regulations on ESG matters andnon-financial reporting.

There are estimated to be
more than half a million
undocumented migrants
living in France and they canbe vulnerable to human rights
abuses. They often find work
as cleaners, delivery drivers, inconstruction or in hospitality –and may experience forced labor
situations including having theirwages and permits withheld.
In 2023, members of the European
Parliament voted in favor of new
European rules on corporate
sustainability due diligence. France
is the first country in the world tomandate that large companies
publicly disclose their vigilance planon human rights and environmental
due diligence, including that ofTable of contents

The foundations of ethical businesssubsidiaries, contractors andsuppliers in contractual or noncontractual relationships.
Nestlé France has been helping toprotect the human rights of theseworkers and others through its CARE
program – a simple and engaging way
to encourage and enable the raisingof concerns by anyone directly, or
indirectly, working at our facilities.
We have implemented the CARE
Audit Program leveraging threepillars: assess, address and report.
In the last three years, the program
has been rolled out across our 18
production sites, head offices and our
Nespresso boutiques in France.

In-person audits bring a human faceto our due diligence process.

Thanks to in-person audits conductedby external auditors, CARE bringsa human face to our due diligenceprocess. Driven by our senior leadership,communications feature their voices toreinforce how the CARE Program helps
assess working conditions and humanrights at our sites.
CARE and its audits have helped
people better understand what theirrights are in the workplace andoffers a vital channel to report andreview. These include suspected
human rights violations. Nestlé caninvestigate these in more detail, to
improve working conditions in France,
regardless of people’s documented or
undocumented status.
We are all concerned, all responsible,
all committed to making Nestlé theexemplary company in terms ofcompliance, human rights and ethics.
CARE gives a voice to those who needit the most.

Creating Shared Value and Sustainability Report 2023

69

Community
givingDisaster relief
We help our communities when disasters strikeand in the recovery phase, through dedicatedfront-line support and assistance via global or
local partners.
We proactively support our global partners,
the International Federation of the Red Cross
and Red Crescent Societies (IFRC), and World
Central Kitchen (WCK), facilitating help on the
ground, often within hours of a disaster. Nestlé
also organizes local and employee campaigns.
2023 examples:– In response to the March 2023 earthquake thatdevastated communities in Syria and Türkiye,
Nestlé provided 286 tonnes of food and 120
trucks of water, in addition to our support
to global partners WCK and IFRC’s Disaster
Response Emergency Fund (DREF). Nestlé also
ran an employee fundraising campaign whichraised CHF 181 765, which was matched 1:1 by
Nestlé to total CHF 363 530.
– In Ukraine, during 2023, Nestlé donated morethan 2 058 tonnes of food, equivalent to 52.2
million portions. We are also helping to fundtwo rehabilitation centers.
– In conflict-affected areas of the Middle East,
we are working through local partners toprovide assistance to those in need.

We put communities at the heart of ourgiving strategy. Nestlé engages withnumerous partners at an international
and local level.

Table of contentsCommunity giving

During 2023, we:– Supported charitable organizations with contributions of
CHF 177 471 000, including:– Product donations valued at CHF 135 490 000.
– Financial aid valued at CHF 39 265 000.

Community life
As well as our international work, we haveestablished a strong community program in the
Swiss region where Nestlé was founded. By
continuing to establish solid partnerships, we
strengthen trust with the community in Vevey
and the surrounding region. We work with local
associations and institutions to create sharedvalue via projects that contribute to a thriving
community life via culture and sport and throughfood access for vulnerable communities.
2023 examples:– Highlights for 2023 included sponsorshipof the Montreux Jazz Artists Foundation,
Dansomètre, Théâtre Le Reflet and youth
soccer training programs.

Enjoying the fun ofplaying soccer throughNestlé's youth training
program in India.

Food access
We tackle food insecurity by helping people
in need gain access to food and we work
to enhance their integration with local
communities. For example, Maggi partners with
its supply chain to create a special recipe basefor distribution by Foodbank in Australia and
New Zealand to help those in need create a tasty
meal from ingredients in food hampers. In 2023,
more than 1.7 million servings were distributed
to vulnerable people in both countries.

Creating Shared Value and Sustainability Report 2023

70

Aboutthis report
The Creating Shared Value andSustainability Report 2023 aims
to provide a full and balanced
picture of Nestlé’s material
topics, related impacts andperformance in the calendar
year ending December 31,
2023. The report is aimed ata broad audience, including
investors, non-governmentalorganizations, environmental,social and governance services,
customers and suppliers.
We provide further information about ourapproach and programs for each material
topic 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 atwww.nestle.com/investors.

Table of contents

Reporting scope, boundaries
and methodology

This report covers our global operations andcontains data for wholly owned companies andsubsidiaries that are consolidated in the Nestlé
S.A. financial statements, excluding associates
and joint ventures and suppliers unlessotherwise stated. Our environmental data
refers to factories and warehouses, except for
acquisitions that occurred after 31 December,
2022. Our separate Reporting Scope andMethodology for ESG Key Performance
Indicators document provides more detailed
definitions and methodologies for selectedstrategic key performance indicators, withlimited assurance. All monetary amounts are in
Swiss francs (CHF), unless otherwise stated.
The Nestlé 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 2023.
‘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 with reference
to the Global Reporting Initiative (GRI)
Consolidated Set of Standards 2021. We
also applied the Sustainability AccountingStandards Board (SASB) Standard for theProcessed Foods sector and World Economic
Forum Stakeholder Capitalism metrics. GRI
and SASB references are indicated in the
Nestlé 2023 sustainability key performanceindicators index. Our full GRI Content Index
and SASB Index can be downloaded here.

About this report

We hope you find this report interestingand informative. Please share your feedback
and suggestions with us:
creatingsharedvalue@nestle.com

Independent assurance

We engaged two third-party organizations toprovide independent assurance of the content
of this report in 2023.
Bureau Veritas has provided independent
assurance of the accuracy, reliability andobjectivity of the information relating toselected sustainability-related performance
disclosures included in this report, and thatthe report covers our material issues. The
assurance process was conducted in line withthe requirements of the AA1000 AssuranceStandard (AA1000AS v3) Type 2 at moderatelevel of assurance. The full assurance
statement including scope, methodology,
limitations, exclusions and the Bureau Veritas’
independent opinion can be found atwww.nestle.com/assurance-statement.
In addition, we engaged EY to provide
independent assurance on the following
selected key performance indicators (KPIs) ofhigh strategic importance:– Net reduction of greenhouse gas (GHG)
emissions (CO2e) vs. 2018 baseline (%).
– Gross direct (Scope 1) GHG emissions (CO2e).
– Gross market-based indirect (Scope 2) GHG
emissions (CO2e).
– Gross other indirect (Scope 3) GHG
emissions (CO2e).
– Energy consumption of factories (GJ).
– Water use reduction in factories (million m3).
– Key ingredients Responsibly Sourced (%).
– Primary supply chains for meat, palm oil,pulp and paper, soy, sugar, cocoa and coffee
assessed as deforestation-free (%).
– Plastic packaging designed for recycling (%).
– Virgin plastic reduction vs. 2018 baseline (%).
– Total weight of packaging.
– Number of servings of micronutrient-fortified
affordable nutrition.

– Total number of servings of micronutrientfortified foods and beverages.
– Young people around the world with accessto economic opportunities since 2017.
– Management positions held by women (%).
– Key ingredients sourced from farmers adopting
regenerative agricultural practices (%).
– Total weight of waste generated in tonnes
and a breakdown of this total by compositionof the waste.
– Recordable injury rate per million
hours worked.
– Total recordable fatalities.
– Total irreversible injuries.
– Total messages received throughSpeak Up system.
– Total messages substantiated throughSpeak Up system.
– Total messages closed throughSpeak Up system.
– FSSC Certified Manufacturing and R&D units
that produce food and pet food for humanand pets (cats and dogs) consumption.
– Average hours of technical or vocational
training provided to workers in the
Company's operations.
– Total number of employees by
employment contract (permanent andtemporary), by gender.
– Total number of employees by
employment contract (permanent andtemporary), by region.
– Total number of employees by employment
type (full-time and part-time), by gender.
– Volume of cocoa sourced from all countries
covered by the CLMRS or other dedicateddue diligence systems, with mass balance
included (%).
– Sales with Health Star Rating – less than 1.5(without PetCare) (%).
– Sales with Health Star Rating – between 1.5
and 3.5 (without PetCare)(%).

– Sales with Health Star Rating – 3.5 andabove (without PetCare) (%).
– Sales with specialized nutrition(without PetCare) (%).
– Global NNS covered by the assessment(without PetCare) (%).
– Sales with Health Star Rating – less than 1.5(with PetCare) (%).
– Sales with Health Star Rating – between 1.5
and 3.5 (with PetCare) (%).
– Sales with Health Star Rating – 3.5 andabove (with PetCare) (%).
– Sales with specialized nutrition(with PetCare) (%).
– Global NNS covered by the assessment(with PetCare) (%).
– Total direct output of Chemical Oxygen
Demand load to the environment.
– Aggregated annual Chemical Oxygen
Demand concentration.
– Number of countries with audits on the Nestlé
Policy on WHO Code.
– Instances of detected non-complianceswith the Nestlé Policy on WHO Code.
This assurance engagement was performedin accordance with the International Standard
on Assurance Engagements (ISAE 3000) to
provide limited assurance. Our Reporting Scopeand Methodology for ESG Key Performance
Indicators document provides details anddefinitions of these selected KPIs and canbe found at www.nestle.com/sites/default/
files/2024-02/reporting-scope-methodologyesg-kpis-2023-en.pdf.
As part of this engagement, EY reviewed
90 additional indicators that are related to theselected KPIs for consistency. Bureau Veritas
has assured all other KPIs, except for Global
mean (average) raw gender pay gap, which
has not been assured by an independent
third party.

EY assured. The EY limited assurance report and conclusion
can be found at www.nestle.com/assurance-statement.

Forward-looking statements
This report was published on February 22,2024. The report reflects the Company’s
current views and estimates based on thedata and information available at the timeof publication. Changes in circumstances or
new information may have occurred since
the report's publication, which could impact
the accuracy of certain details.
We have undertaken the requisite efforts
to ensure the accuracy and reliability of
the information presented in this report.
This report includes metrics that are
subject to measurement uncertainties
due to inherent limitations in the natureand methods for data collection andmeasurement. The precision of different
collection and measurement techniques
may also vary. This report includes data
or information obtained from externalsources or third parties. This report contains
forward-looking statements regarding
our sustainability commitments, targets,
outlook and plans. These statements
are based on numerous assumptions
and estimates which can vary over time.
This could cause actual results to differ
materially from those contained in theforward-looking statements. Factors that
may cause discrepancies include changes
in circumstances, assumptions not
being realized, scientific or technologicaldevelopments, evolving sustainability
strategies and governmental regulations,market conditions and other risks,
uncertainties and factors.

Creating Shared Value and Sustainability Report 2023

71

Statutory Non-Financial Matter Report
Index (article 964b CO)
The information contained in the sections referenced in the index on the right constitutes the non-financial matter report pursuant to article 964b of the Swiss Code of Obligations (CO).
The shareholder vote on the non-financial matter report required by article 964c CO is on the information contained in these referenced sections.
Information required pursuant to article 964b CO

Sections of the 2023 Nestlé Creating Shared Value and Sustainability Report / Nestlé 2023 Annual Review1

Reference2

Our business model and progress against commitments

page 32023 Annual Review

cover flap, page 9

Our business model and progress against commitments

page 3On the road to net zero

page 7

Restoring nature, protecting biodiversity

page 15

Looking at the whole landscape

page 18

More regenerative practices on farms

page 22

Description of the business model

Environmental matters (including CO₂ goals)
Indicator

Unit

2023

13.58

% Net reduction of GHG emissions vs. 2018 Baseline%

Gross direct (Scope 1) GHG emissions (CO2e)

Million tonnes

3.16

Gross market-based indirect (Scope 2) GHG emissions (CO2e)

Million tonnes

0.31

Gross other indirect (Scope 3) GHG emissions (CO2e)

Million tonnes

84.08

Energy consumption in our factories

GJ

76 824 313

Total weight of waste generated

Tonnes

1 564 810

Hazardous waste generated – biomass

Tonnes3 157

Non-hazardous waste generated – biomass

Tonnes

1 027 439

Hazardous waste generated – other waste

Tonnes

9 622

Non-hazardous waste generated – other waste

Tonnes524 592

Primary supply chains for meat, palm oil, pulp and paper, soyand sugar, coffee and cocoa assessed as deforestation-free
Key ingredients sourced from farmers adopting regenerative
agricultural practices

%

%

93.4

15.2

1 The sections referenced in the index with respect to a particular non-financial matter pursuant to article 964b CO primarily contain disclosures relating to such non-financial matter. We note, however, that the disclosures contained in such sections may also be
relevant to other non-financial matters pursuant to article 964b CO. Disclosures on the business model, policies, effectiveness of measures, main risks, and performance indicators can be found in the relevant sections of each topic.
2 References are to the first page of the relevant section.

Table of contents

Statutory Non-Financial Matter Report Index (article 964b CO)

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72

Information required pursuant to article 964b CO

Sections of the 2023 Nestlé Creating Shared Value and Sustainability Report / Nestlé 2023 Annual Review1

Reference2

Water stewardshippage 26

Responsible sourcing

page 31

Packaging and circularity

page 412023 Annual Review

pages 13, 27

Our material topics

page 5

Stakeholder engagement

page 6

Supporting balanced and sustainable diets

page 46

Environmental matters (including CO₂ goals) – (continued)
Indicator

Unit

2023

Water use reduction in factories

Millioncubic meters

3.00

Total direct output COD load discharged to the environment

Tonnes1 911

Aggregated annual chemical oxygen demand concentration

mgO2/l81% of key ingredient volumes to be Responsibly Sourced

%

36.2

Plastic packaging designed for recycling

%

83.5

Total weight of packaging

Million tonnes

3.4

Virgin plastic reduction versus 2018 baseline

%

14.9

Social matters
Indicator

Unit

2023

205.8

Number of servings of total products with micronutrient
fortification (MNF)

Billions

Net sales from products with a Health Star Rating of 3.5 andabove – excluding PetCare%

38

Net sales from products with a Health Star Rating of between
1.5 and 3.5 – excluding PetCare%

20

Net sales from products with a Health Star Rating of less than
1.5 – excluding PetCare%

21

Net sales from specialized nutrition products – excluding PetCare %21

Global NNS covered by the assessment – excluding PetCare%

76

Net sales from products with a Health Star Rating of 3.5 andabove – including PetCare%

31

Net sales from products with a Health Star Rating of between
1.5 and 3.5 – including PetCare%

16

Net sales from products with a Health Star Rating of less than
1.5 – including PetCare%

17

Net sales from specialized nutrition products – including PetCare %36

Global NNS covered by the assessment – including PetCare

95%

1 The sections referenced in the index with respect to a particular non-financial matter pursuant to article 964b CO primarily contain disclosures relating to such non-financial matter. We note, however, that the disclosures contained in such sections may also be
relevant to other non-financial matters pursuant to article 964b CO. Disclosures on the business model, policies, effectiveness of measures, main risks, and performance indicators can be found in the relevant sections of each topic.
2 References are to the first page of the relevant section.

Table of contents

Statutory Non-Financial Matter Report Index (article 964b CO)

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73

Information required pursuant to article 964b CO

Sections of the 2023 Nestlé Creating Shared Value and Sustainability Report / Nestlé 2023 Annual Review1

Reference2

Food safety and quality

page 51

Opportunities for young people

page 57

The foundations of ethical businesspage 652023 Annual Review

pages 5, 13, 22

Advancing human rights

page 35

Our diverse and inclusive culture

page 53

Opportunities for young people

page 57

An employer of choice

page 60

The foundations of ethical businesspage 652023 Annual Review

page 4Social matters (continued)
Indicator

Unit

2023

Number of servings of affordable nutrition withmicronutrient fortification (MNF)

Billions

127.6

Manufacturing and R&D sites certified to FSSC22000 – a
program recognized by the Global Food Safety Initiative (GFSI)

%

98.4

Number of countries with audits on the Nestlé Policy on WHO Code Number

32

Instances of detected non-compliances with the Nestlé Policy
on WHO Code96

Number

Employee related matters
Indicator

Unit% of management positions held by women
Young people around the world with access to economic
opportunities since 2017%
Millions

2023

46.4
7.7

Recordable injury rate per million hours worked

Number

1.17

Total recordable fatalities from injuries

Number1

Total irreversible injuries

Number

10

Average hours of technical or vocational training provided
to workers in the Company's operations

Hours

15.1

Number of employees

Number270 000

1 The sections referenced in the index with respect to a particular non-financial matter pursuant to article 964b CO primarily contain disclosures relating to such non-financial matter. We note, however, that the disclosures contained in such sections may also be
relevant to other non-financial matters pursuant to article 964b CO. Disclosures on the business model, policies, effectiveness of measures, main risks, and performance indicators can be found in the relevant sections of each topic.
2 References are to the first page of the relevant section.

Table of contents

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74

Information required pursuant to article 964b CO

Sections of the 2023 Nestlé Creating Shared Value and Sustainability Report / Nestlé 2023 Annual Review1

Reference2

Advancing human rights

page 35

Packaging and circularity

page 41

The foundations of ethical businesspage 652023 Annual Review

page 29

Governancepage 4On the road to net zero

page 7

The foundations of ethical businesspage 652023 Annual Review

page 622023 Annual Review, Principal risks and uncertainties

page 50

Respect for human rights
Indicator

Unit

Volume of cocoa sourced from all countries covered by the
CLMRS or other dedicated due diligence systems, with massbalance included

%

2023
70.6

Combating corruption
Indicator

Unit

2023

Total messages received through Speak Up system

Number2 874

Total cases substantiated through Speak Up system

Number691

Total messages closed through Speak Up system

Number

2 341

Material risks
In addition, material risks relevant to a specific non-financial matter for which information is required to be disclosed pursuant
to article 964b of the CO are included in the sections referenced in this index with respect to such specific non-financial matter.

Main performance indicators
Our business model and progress against commitments

page 3

In addition, performance indicators relevant to a specific non-financial matter for which information is required to be disclosed pursuant to article 964b of
the CO are included in the sections referenced in this index with respect to such specific non-financial matter.

Reference to national, European or international regulations
About this report

page 71

TCFD Index

page 77

Global Reporting Initiative Index

GRI and SASB Indexes 2023

SASB Index

GRI and SASB Indexes 2023

in each case together with the references included in the above indices

Coverage of subsidiaries
About this report

page 71

1 The sections referenced in the index with respect to a particular non-financial matter pursuant to article 964b CO primarily contain disclosures relating to such non-financial matter. We note, however, that the disclosures contained in such sections may also be
relevant to other non-financial matters pursuant to article 964b CO. Disclosures on the business model, policies, effectiveness of measures, main risks, and performance indicators can be found in the relevant sections of each topic.
2 References are to the first page of the relevant section.

Table of contents

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75

Nestlé's Report Pursuant to article 964kof the Swiss Code of Obligations andthe Ordinance Promulgated Thereunder
Regarding Child Labor1
The above-mentioned provisions of Swiss law require Nestlé S.A. to prepare and publish an annual report on compliance with its statutory due diligence obligations with respect to childlabor. Nestlé's child labor report consists of the information contained in the following documents2:

1.

The information contained in the section "Advancing human rights" of our 2023 Nestlé Creating Shared Value and Sustainability Report, starting on page 35

2.

Nestlé's Human Rights Framework and Roadmap, which is available here

3.

Nestlé's Responsible Sourcing Standard, which is available here

4.

Nestlé's Corporate Business Principles, particularly section 6 thereof, which is available here

5.

Nestlé's Salient Issue Action Plan: Child labor and access to education, which is available here

6.

Nestlé's Human Rights Policy: which is available here

1 Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor (DDTrO) of 3 December 2021.
2 In each case together with any of the policies, frameworks or other documents referenced in these documents.

Table of contentsChild labor reporting index

Creating Shared Value and Sustainability Report 2023

76

TCFD Index
Disclosure in CSV and
Sustainability Report 2023

Summary of our alignment with the Task Force on Climate-related Financial Disclosures (TCFD)

Governance
Board’s oversightPage 4

Oversight of climate-related risks and opportunities is embedded at the highest level. The Board has oversight of climate-related matters and monitors progress toward related goals. The
Board is responsible for the Company’s strategy and organization and provides oversight of its financial and non-financial performance and reporting. The Board approves the Company’s
ESG/sustainability strategy and approves its CSV and Sustainability Report for submission to the Annual General Meeting.

Management’s role

Page 4The Executive Board is responsible for executing sustainability strategies, including our Net Zero Roadmap, through an ESG & Sustainability Council. At an operational level, an ESG
Strategy and Deployment Unit drives implementation.

Climate-related risks and opportunities

Pages 9 to 19

Impacts of climate-related risks and opportunities

Pages 9 to 11

Climate change is considered a material risk for Nestlé. Within our Enterprise Risk Management framework, we conduct an annual assessment of climate change risks and review thestrategy and plans to mitigate them. We assess related financial risks using a discounted cash flow methodology.

Resilience of the organization’s strategy

Pages 9 to 11

Strategy

Risk management
Processes for identifying and assessing climate-related risks

Pages 9 to 11

Processes for managing climate-related risks

Pages 9 to 11

Integration into the organization’s overall risk management

Pages 9 to 11

Our assessment establishes:– Transition risks: we have assessed transition risks to 2030, based on exposure levels from low-, intermediate- and high-emission pathways. Modeling results show a degree of
exposure, but our Net Zero Roadmap could reduce this by up to half.
– Physical risks: changing temperatures and weather extremes can affect the quality and availability of key raw materials through lower and variable yields, as well as shifts in theregions suitable for cultivation. For 12 key ingredients covering 90% of our spend, we estimated the yield change in 2040 versus today in a ‘steady-state', intermediate climate scenario(+2 to 3 °C by 2100), discounting the unpredictable impacts of extreme events.
Nestlé is well positioned to implement nature-based solutions for less resource-intense and more resilient food production, as it has direct access to more than 500 000 farmers. One
significant example is Nescafé Plan 2030, which aims to help drive regenerative agriculture, reduce GHG emissions and improve farmers’ livelihoods.

Targets
Targets used to manage climate-related risks, opportunities
and performance

Pages 7 and 8

We review our Net Zero Roadmap for achieving planned GHG emissions reductions for 2025 and 2030 annually to validate that our activities are keeping us on the path to net zero and are
helping mitigate and adapt to climate risk throughout our value chain.
In 2023, we used the following indicator for the first time: Net reduction of GHG emissions vs. 2018 baseline (%). Previously absolute amount of reductions and removals vs. Business As
Usual was used as an indicator. Therefore, data are not comparable between years.

Table of contents

TCFD Index

Creating Shared Value and Sustainability Report 2023

77

Unit

20201

20211

2022

2023

Related commitment

Metrics
Net reduction of GHG emission vs. 2018 baseline2

%

n/a3

n/a3

n/a3

13.58

Gross direct (Scope 1) GHG emissions (CO2e)

Million tonnes

3.314

3.384

3.274

3.16

Gross market-based indirect (Scope 2) GHG emissions (CO2e)

Million tonnes

1.624

1.444

0.744

0.31

Gross other indirect (Scope 3) GHG emissions (CO2e)5Million tonnes

99.43498.75493.79484.08

Total (Scopes 1, 2 & 3) GHG emissions (CO2e)5Million tonnes

104.354103.584

97.804

87.54

Key ingredients Responsibly Sourced6

%

16.3

22.0

36.2

Primary supply chains for meat, palm oil, pulp and paper, soy and sugar assessed 100%
deforestation-free by 2022

%

90.0

97.2

99.1

97.9

Primary supply chains for coffee and cocoa, meat, palm oil, pulp and paper, soy and sugar
assessed 100% deforestation-free by 2025

%

n/a

n/a

n/a

93.4

Key ingredients sourced from farmers adopting regenerative agricultural practices7

%

6.8

15.2

Renewable electricity sourced in our manufacturing sites at year end

%

50.5

63.7

78.4

91.9

Total energy consumed in our factories

GJ

81 385 568

82 779 476

80 131 120

76 824 313

Energy consumed in factories that is renewable energy

%

23.1

25.3

30.6

35.0

Energy consumed in factories that was supplied from grid electricity8

%

12.2

10.2

6.0

28.08

Virgin plastic reduction versus 2018 baseline

%

4.0

8.1

10.5

14.9

Part of our sustainable packaging strategy, we are committed to 33%
virgin plastic reduction by 2025 compared to 2018.

Water use reduction in our factories

Million cubic meters

1.69

2.30

2.38

3.00

We aim to reduce water use in our factories by 6 million m3 between
2021 and 2023 (million m3). We have achieved cumulative 7.68 million m3
vs. 6 million m3 ambition cumulative between 2021 and 2023.

Our Net Zero Roadmap to reduce Nestlé’s in scope emissions:– by 20% by 2025 compared to 2018 baseline– by 50% by 2030 compared to 2018 baseline– to be net zero by 2050

1 As previously reported.
2 Covers emissions related to our net zero commitment. Net reductions (%) include removals from both insettting and landscape projects.
3 New indicator in 2023 and replaces previously reported metric.
4 Restated due to acquisitions, divestitures, emissions factor restatements and adjusted scope.
5 Includes emissions not in scope for Net Zero Roadmap.
6 Renamed 'Ingredients Responsibly Sourced' from 'Ingredients Produced Sustainably'. All methodologies, metrics and targets remain the sameas 2022. This KPI measures the performance of volumes at origin level against the requirements of the Nestlé Responsible Sourcing Standard
and the progressive delivery of positive impacts on people, nature and climate in Nestlé’s sourcing origins. Priority raw materials refers to
14 key agricultural raw materials that cover 95% of our annual sourcing by volume: cereals and grains; cocoa; coconut; coffee; dairy; fish andseafood; hazelnuts; meat, poultry and eggs; palm oil; pulp and paper; soy; spices; sugar; and vegetables.
7 In 2023, the following ingredients are included in the numerator: dairy (fresh milk and dairy derivatives), coffee (excluding blended green coffee
and blue bottle), cocoa, cereals and grains, soy and vegetables. The denominator includes all raw materials in scope: coffee, cocoa, dairy,sugar, cereals and grains, meat, poultry and eggs, palm oil, soy, vegetables, fish and seafood.
8 Methodology calculation has changed in 2023 from previous years and the KPI is not directly comparable.

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Nestlé's 2023 Creating Shared Value andSustainability key performance indicators
Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions and can be found here.

Indicator

Unit

2020

2021

2022

2023

GRI index

13.58

305-5/aSASB index

Notes on the data

On the road to net zero
Net reduction of GHG emissions vs. 2018 baseline%

Gross direct (Scope 1) GHG emissions (CO2e)

Million tonnes

3.311

3.381

3.271

3.16

305-1/aGross market-based indirect (Scope 2) GHG emissions (CO2e)

Million tonnes

1.621

1.441

0.741

0.31

305-2/bGross other indirect (Scope 3) GHG emissions (CO2e)

Million tonnes

99.43198.75193.791

84.08

305-3/aTotal (Scope 1+2+3) GHG emissions (CO2e)

Million tonnes

104.351103.58197.801

87.54

Renewable electricity sourced in our manufacturing sites at year end

%

50.5

63.7

78.4

91.9

Global fleet of vehicles switched to lower emission options

%

17.6

27.2

41.0

49.3

CO2e removals delivered for the reporting year

Million tonnes

n/a

n/a

0.76

This indicator is used since 2023 only. Previously absolute amountof reductions and removals vs. Business As Usual was used asindicator. Therefore, data are not comparable.

2020, 2021 and 2022 restated due to acquisitions, divestitures,emissions factor restatements and adjusted scope.

Reductions of ingredients' emissions by GHG
Carbon dioxide (CO2)

%

11.89

305-5/bMethane (CH4)

%

15.32

305-5/b

Nitrous oxide (N2O)

%

11.36

305-5/b302-1/eEnergy management
Energy consumption in factories

GJ

81 385 568

82 779 476

80 131 120

76 824 313

Energy consumed that was supplied from grid electricity in factories

%

12.2

10.2

6.0

28.0

FB-PF-130A.1

Energy consumed that is renewable energy in factories

%

23.1

25.3

30.6

35.0

FB-PF-130A.1

FB-PF-130A.1

1 Restated due to acquisitions, divestitures, emissions factor restatements and adjusted scope.

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79

Indicator

Unit

2020

2021

2022

2023

GRI index

SASB index

Notes on the data

On the road to net zero (continued)
Weight of waste generated
Total weight of waste generated

Tonnes

1 811 947

1 564 810306-3/aHazardous waste generated – biomass

Tonnes839

3 157

306-3/aNon-hazardous waste generated – biomass

Tonnes

1 414 716

1 027 439

306-3/aHazardous waste generated – other waste

Tonnes33 061

9 622

306-3/aNon-hazardous waste generated – other waste

Tonnes363 331524 592306-3/a

24.6

12.4

14.7

Changes in the classification of waste in 2022 mean that prior year
data are not comparable.

Looking at the whole landscape
Trees secured for planting

Millions

Coffee sourced through the Nescafé Plan 2030 or Nespresso AAA
Sustainable Quality™ Program

%

75.0

82.8

88.0

92.8

Nespresso Coffee sourced through the Nespresso AAA Sustainable
Quality™ Program

%

93.0

92.6

93.1

94.4

Number of forest and fruit trees distributed to cocoa farmers

Number669 305

1 038 904

1 470 614

1 386 240

90.0

97.2

99.1

97.9

Commitment is cumulative, however, all numbers provided here areannual achievements.

Primary supply chains assessed as deforestation-freePrimary supply chains for meat, palm oil, pulp and paper, soy andsugar assessed 100% deforestation-free by 20221%

Prior to 2023 coffee and cocoa were not included in this KPI, making
the numbers incomparable.

93.4

Primary supply chains for coffee and cocoa, meat, palm oil, pulp andpaper, soy and sugar assessed 100% deforestation-free by 2025
Meat

%

99.9

Palm oil%

96.0

Pulp and paper

%

98.2

Soy

%

97.9

Sugar

%

98.1

Cocoa

%

42.3

Coffee%92.8

1 Cocoa and coffee only included in 2023.

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Indicator

Unit

2020

2021

2022

2023

GRI index

6.8

15.2

5

1

303-1/a303-4/aSASB index

Notes on the data

More regenerative practices on farms
Key ingredients sourced from farmers adopting regenerative
agricultural methods%

In 2023, the following ingredients are included in the numerator: dairy(fresh milk and dairy derivatives), coffee (excluding blended green
coffee and blue bottle), cocoa, cereals and grains, soy and vegetables.
The denominator includes all raw materials in scope: coffee, cocoa,
dairy, sugar, cereals and grains, meat, poultry and eggs, palm oil, soy,vegetables, fish and seafood. Please refer to the Reporting Scope andMethodology for ESG KPIs document for full details.

Water stewardship
Water related incidents

NumberFB-PF-140A.2

Total water discharged

Million cubic meters

59.2

59.0

53.2

48.4

Water use reduction in factories

Million cubic meters

1.69

2.30

2.38

3.00

Nestlé Waters sites certified to the AWS Standard

Number

34

19

21

23

This number reduced In 2021 due to the sale of Nestlé Waters
North America.

Nestlé Waters volumetric water benefits delivered by implementing
local water stewardship projects

Million cubic meters

2.3

4.4

Reported for the first time in 2022.

Water management
Total water withdrawn

Million cubic meters

115.4

98.0

97.1

95.6

303-3/aFB-PF-140A.1

Total water consumed

Million cubic meters

56.2

39.0

43.9

47.2

303-5/aFB-PF-140A.1

Water withdrawn in regions with High or Extremely High Baseline
Water Stress

%

25.0

35.4

36.1

36.7

FB-PF-140A.1

Water consumed in regions with High or Extremely High Baseline
Water Stress

%

30.0

49.1

51.5

48.6

FB-PF-140A.1

Quality of effluents treated internally and discharged to the environment
Total direct output of chemical oxygen demand load tothe environment

Tonnes1 911

Aggregated annual chemical oxygen demand concentration

mgO2/l81

Effluent water treated internally%51

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Indicator

Unit

2020

2021

2022

2023

16.3

22.0

GRI index

SASB index

Notes on the data

36.2

FB-PF-430A.1

Key ingredients refers to 14 key agricultural raw materials that cover
95% of our annual sourcing by volume: cereals and grains; cocoa;
coconut; coffee; dairy; fish and seafood; hazelnuts; meat, poultry andeggs; palm oil; pulp and paper; soy; spices; sugar; and vegetables.
Data before 2022 are not comparable since definition changed.

Responsible sourcing
Key ingredients Responsibly Sourced%

Certified palm oil sourcing (RSPO or equivalent)

%

58.1

71.1

71.0

100.0

FB-PF-430A.1

2022 data comprises Roundtable on Sustainable Palm Oil
certifications and credits as follows: 20.0% segregated, 1.6% massbalance, 45.6% book and claims without including credits fromindependent smallholders, 3.7% book and claims from independent
smallholders only.

Cocoa sourced through the Nestlé Cocoa Plan

%

48.0

50.6

68.3

85.5

FB-PF-430A.1

The % cocoa sourced through the Nestlé Cocoa Plan includes
volumes of Rainforest Alliance certified mass balance cocoa that are
not accounted for in the global Responsibly Sourced indicator above.
We also include verified Nestlé Cocoa Plan volumes and farm data
provided by suppliers.

Number of farmers in the Nestlé Cocoa Plan

Number124 053

152 236

157 157

179 399

Nescafé Coffee sourced through the Nescafé Plan

%

75.0

81.5

87.0

92.5

Nespresso Coffee sourced through the Nespresso AAA Sustainable
Quality™ Program

%

93.0

92.6

93.1

94.4

Coffee sourced through the Nescafé Plan or Nespresso AAA
Sustainable Quality™ Program

%

75.0

82.8

88.0

92.8

Number of forest and fruit trees distributed to cocoa farmers

Number669 305

1 038 904

1 470 614

1 386 240

Cage-free eggs sourced

%

76.3

71.7

72.9

Farmers trained on practices

Number435 500

419 228497 395

Values provided are representative of annual achievements and are
not cumulative.

Advancing human rights
Volume of cocoa sourced from all countries covered by the CLMRS orother dedicated due diligence systems, with mass balance included

70.6

%

Packaging and circularity
Total packaging indicators
Packaging pieces placed on the market

Billions

352

344

330

320

Packaging made from recycled and/or renewable materials

%

37.0

39.5

36.0

41.5

Packaging that is recyclable, reusable, and/or compostable

%

84.0

85.4

85.8

86.6

Total weight of packaging

Million tonnes

4 .5

3 .8

3 .6

3.4

Packaging that is reusable

%

1.00

0.84

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Nestlé's 2023 CSV and Sustainability KPIs

2021 data restated due to acquisitions, divestitures andpackaging changes.
301-2/aFB-PF-410A.1
FB-PF-410A.1

301-1/aBased on the Ellen MacArthur Foundation Global Commitment
reporting rules.

FB-PF-410A.1
FB-PF-410A.1

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82

Indicator

Unit

2020

2021

2022

2023

927.0

896.6

GRI index

SASB index

Notes on the data

FB-PF-410A.1

Based on the Ellen MacArthur Foundation Global Commitment
reporting rules.

Packaging and circularity (continued)
Plastic packaging indicators
Total weight of plastic packaging

Kt

Plastic packaging designed for recycling

%

74.8

74.9

81.9

83.5

Virgin plastic reduction versus 2018 baseline

%

4.0

8.1

10.5

14.9

Recycled plastic in plastic packaging

%

1.7

4.3

7.7

9.3

301-2/aFB-PF-410A.1

Global plastic use by weight and type
Global PET (polyester) use

%

32.1

34.8

34.2

Global PE (polyethylene) use

%

18.1

19.1

19.1

Global PP (polypropylene) use

%

19.4

21.6

23.7

Global PO (polyolefin) use

%

5.4

6.6

6.5

Global laminates use

%

24.1

17.2

15.3

Global use, other plastics

%

0.8

0.7

1.2

Number of countries with audits on the Nestlé Policy on WHO Code

Number31

32-

Instances of detected non-compliances with the Nestlé Policy on
WHO Code

Number

116

96-

Sanctions (with a threshold of CHF 10 million) due to products’labeling or marketing violations

Number000

Total number of servings of micronutrient-fortified foods
and beverages

Billions

205.3

207.4

211.4

205.8

Number of servings of micronutrient-fortified affordable nutrition

Billions

120.2

128.4

129.2

127.6

Supporting balanced and sustainable diets

Table of contents

Nestlé's 2023 CSV and Sustainability KPIs

Data disclosed in this report relates to 2022 consolidated data,
which is one year behind our other KPIs. Data disclosed in our 2022
Creating Shared Value and Sustainability Report stated values werefor 2022, when in fact were values for 2021.
FB-PF-270A.3

417-2/aData disclosed in this report relates to 2022 consolidated data,
which is one year behind our other KPIs. Data disclosed in our 2022
Creating Shared Value and Sustainability Report stated values werefor 2022, when in fact were values for 2021.

FB-PF-270A.4
The ‘big four’ micronutrients are iron, vitamin A, iodine andzinc. 2021 data corrected to adjust for some products thatwere reclassified.

Creating Shared Value and Sustainability Report 2023

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Indicator

Unit

2020

2021

2022

2023

GRI index

SASB index

Notes on the data

Supporting balanced and sustainable diets (continued)
Health Star Rating (HSR): an independent nutrient profiling system. Calculations are based on the recipe for each product and are not necessarily included on the product label.
37

38

Net sales from products with a Health Star Rating of 3.5 and above –excluding PetCare%

Net sales from products with a Health Star Rating of between 1.5
and 3.5 – excluding PetCare

%

22

20

Net sales from products with a Health Star Rating of less than 1.5 –excluding PetCare

%

21

21

Net sales from specialized nutrition products – excluding PetCare

%

20

21

Global NNS covered by the assessment – excluding PetCare

%

79

76

Net sales from products with a Health Star Rating of 3.5 and above –including PetCare

%

30

31

Net sales from products with a Health Star Rating of between 1.5
and 3.5 – including PetCare

%

18

16

Net sales from products with a Health Star Rating of less than 1.5 –including PetCare

%

17

17

Net sales from specialized nutrition products – including PetCare

%

35

36

Global NNS covered by the assessment – including PetCare

%
97

95

Covers 76% of total net sales. Excludes products that are not foods
or beverages for consumption and some recent acquisitions. HealthStar Ratings are calculated based on the recipe for each product andare not necessarily included on the product label.

Covers 97% of total net sales. Excludes products that are not foods
or beverages for consumption and some recent acquisitions. HealthStar Ratings are calculated based on the recipe for each product andare not necessarily included on the product label.

Compliance with Nestlé Marketing Communication to Children Policy
Compliance with Nestlé Marketing Communication to Children
policy: TV

%

98.7

98.4

98.4

Compliance with Nestlé Marketing Communication to Children
policy: Websites

%

100.0

100.0

100.0

Compliance with Nestlé Marketing Communication to Children
policy: Social media

%

83.4

100.0

100.0

Compliance with Nestlé Marketing Communication to Children
policy: Influencers

%

100.0

37.5

88.9

Compliance with Nestlé Marketing Communication to Children
policy: Average total

%

95.5

84.0

96.8

Percentage of FSSC Certified Manufacturing and R&D
units that produce food and pet food for human and pets
(cats and dogs) consumption

%

97

98

98.4

Ingredients sourced from Tier 1 supplier facilities certified toa Global Food Safety Initiative (GFSI) recognized food safety
certification program% by cost

88.0

91.9

92.9

FB-PF-250A.2

Number of food safety recalls issued

Number

9

10

13

FB-PF-250A.4

100% of the audited influencers’ posts were assessed as notappealing to children below 13 years. Following a change inmethodology, breaches for posts not targeted to children are
also included.

Food safety and quality

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Indicator

Unit

2020

2021

2022

2023

GRI index

SASB index

Notes on the data

Food safety and quality (continued)
Global Food Safety Initiative audits
Global Food Safety Initiative (GFSI) audit: (1) non-conformance rate

Number

2.85

2.77

2.79

FB-PF-250A.1

Global Food Safety Initiative (GFSI) audit: (2) associated corrective
action rate for major non-conformances

Number

4.25

2.14

2.55

FB-PF-250A.1

Global Food Safety Initiative (GFSI) audit: (3) associated corrective
action rate for minor non-conformances

Number

1.56

1.52

1.55

FB-PF-250A.1

Our diverse and inclusive culture
46.4

Management positions held by women%

Apprenticeship and traineeship opportunities

NumberYoung people around the world with access to economic
opportunities since 2017

Millions

Women on Company board%

Chairperson is a woman

Yes/NoGender balance in board leadership%

Chief Executive Officer (CEO) is a woman

Yes/Nono

Woman Chief Financial Officer (CFO) or equivalent

Yes/Nono

Women executive officers

%

31.2

Chief Diversity Officer (CDO)

Yes/Noyes

Women in total management

%

46.4

405-1/b-i

Women in senior management

%

34.6

405-1/b-i

Women in middle management

%

47.0

405-1/b-i

Women in non-managerial positions

%

38.9

405-1/b-i

Women in total workforce

%

39.8

405-1/b-i

Women total promotions

%

51.7

Women IT/Engineering

%

31.0

New hires that are women

%

44.7

Women attrition

%

45.8

Number of weeks of fully paid primary parental leave offered

Number18

401-3

Number of weeks of fully paid secondary parental leave offered

Number4

401-3

Parental leave retention rate

%

91.9

401-3/eFlexible working policy

Yes/Noyes

Employee resource groups for women

Yes/Noyes

Unconscious bias training

Yes/Noyes

Annual anti-sexual harassment training

Yes/Noyes

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Nestlé's 2023 CSV and Sustainability KPIs

2.4

405-1/b-i

11 598

11 49510 807

401-2

3.8

5.6

7.7

401-1

33.3

405-1/a-i

no20.0

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Indicator

Unit

2020

2021

2022

2023

GRI index

SASB index

Notes on the data

Opportunities for young people
Young people impacted through digital events (e.g. career fairs,
educational webinars, e-learning programs) that focus on upskillingyoung people and make them more employable

Number

1 291 306

1 415 687

1 393 147

Young farmers trained through agripreneurship program

Number

7 422

5 121

8 464

Nestlé employees hired under 30 years old, unlimited andtemporary contract

Number

23 89926 61023 804Young entrepreneurs who have received some basic, but tangible
benefit from Nestlé

Number64 97772 630An employer of choiceMarkets offering Employee Assistance Program (EAP) to support
employees' mental health and well-being%

93403-6/aMarkets providing supportive measures for employees working
with cancer%

93403-6/aNumber of primary and secondary caregivers having used paid
parental leave

Number58 272401-3/b

Retention of primary and secondary caregivers having used paid
parental leave after one year

%

92.7

401-3/eTotal employees covered by collective bargaining agreements

%

54.4

56.3

52.7

Average hours of technical or vocational training provided to workers
in the Company's operations

Hours

15.8

9.3

15.1

Employees reached through global employee health promotion
communication campaigns

Number130 063

156 600

227 000

Employees having watched #HealthyLives videos

Number31 63633 13655 113

Views of #HealthyLives videos

Number445 776509 974

701 704

Views of HealthTalks webinars

Number

14 480

4 066

3 885

Activations in Pleaz platform to support mental health andphysical activity

Number26 19360 452

123 374

Employees having access to My Health Numbers program

Number227 640

233 385

233 385

Employees having participated in My Health Numbers program

Number49 687

108 830

118 401

Canteens offering a healthy meal

%

94.4

94.6

96.0

Markets offering a nap room or equivalent to rest

%

53.0

54.5

38.0

404-1/aRecordable injury rate
Recordable injury rate per million hours worked

Number

1.28

1.33

1.21

1.17

403-9/a-iii

Total recordable fatalities

Number5

3

6

1

403-9/a-i

Total irreversible injuries

Number

14

13

22

10

403-9/a-ii

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Indicator

Unit

2020

2021

2022

2023

GRI index

SASB index

Notes on the data

An employer of choice (continued)
Recordable illness rate
Recordable illness rate per million hours worked

Number

0.71

0.66

0.66

Total recordable fatalities from illnesses

Number000

Total irreversible illnesses

Number20

20

16403-10/a-i

Total number of employees by employment contract (permanent and temporary) by gender
Total number of permanent employees: female

Number94 33794 072

96 172

2-7

Total number of temporary employees: female

Number

8 779

8 335

8 471

2-7

Total number of permanent employees: male

Number155 175

147 310149 800

2-7

Total number of temporary employees: male

Number

8 632

7 883

7 857

2-7

Total number of employees by employment contract (permanent and temporary) by region
Total number of permanent employees: Asia, Oceania and Africa

Number55 03458 304

2-7

Total number of temporary employees: Asia, Oceania and Africa

Number

3 868

3 781

2-7

Total number of permanent employees: Europe

Number

76 61877 222

2-7

Total number of temporary employees: Europe

Number

7 152

6 975

2-7

Total number of permanent employees: Greater China

Number

19 36618 2802-7

Total number of temporary employees: Greater China

Number

276

560

2-7

Total number of permanent employees: Latin America

Number55 12553 732

2-7

Total number of temporary employees: Latin America

Number

4 512

4 570

2-7

Total number of permanent employees: North America

Number35 26738 495

2-7

Total number of temporary employees: North America

Number

412

446

2-7

Data not available for prior years due to restructure ofgeographical zones.

Total number of employees by employment contract (full-time and part-time) by gender
Total number of full-time employees: female

Number96 38295 99198 503

2-7

Total number of part-time employees: female

Number

6 734

6 416

6 140

2-7

Total number of full-time employees: male

Number160 649

152 629

154 752

2-7

Total number of part-time employees: male

Number

3 158

2 564

2 905

2-7

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Indicator

Unit

2020

2021

2022

2023

8

8

GRI index

SASB index

Notes on the data

The foundations of ethical business
CARE social audit program
Number of data breaches notified to authorities

NumberLocations covered by CARE audits

Number

300

379

389

440

CARE audits performed

Number

150

247

264

194

CARE audit improvement opportunities identified

Number

274

333

511

298

CARE audit gaps closed

Number

253

161

283

186

Total messages received through Speak Up system

Number

3 305

2 475

2 516

2 874

Abuse of power and/or mobbing/bullying

Number

567

743

768

Unfair treatment

Number

386

368

565

Labor practice

Number

373

272

249

Harassment (excluding sexual harassment)

Number

108

168

214

Fraud (misappropriation or misconduct on
accounting/financial statement)

Number

137

128

131

Safety and health

Number

156

122

88

Violation of law/regulations

Number

91

120

104

Gifts, families and relatives, conflict of interest

Number

91

91

109

Bribery and corruption

Number55

88

47

Violence and discrimination

Number

78

86

172

Sexual harassment

Number

59

81

104

Confidential information, privacy policy (data privacy, trade secrets,
intellectual property)

Number

49

65

51

Third-party compliance

Number

94

54

135

Seeking compliance advice

Number

63

43

65

MANCOM members related

Number17

27

46

Human rights (child labor, forced labor and modern slavery)

Number49

16

1

Environmental impact

Number43

14

8

Economic sanctions

Number10122

Antitrust and fair dealing

Number33

98

Non-compliance against WHO code

Number11

5

7

Executive board members/senior managers in Switzerland

Number5

4

0

418-1/b

Messages received through Speak Up system

Table of contents

Nestlé's 2023 CSV and Sustainability KPIs

Messages substantiated did not involve government officials.

Creating Shared Value and Sustainability Report 2023

88Indicator

Unit

2020

2021

2022

2023

GRI index

Total cases substantiated through Speak Up system

Number

532

580

578

691

2-16b

Abuse of power and/or Mobbing/Bullying

Number

188

222

227

2-16b

Unfair treatment

Number

97

26

68

2-16b

Labor practice

Number

77

69

69

2-16b

Harassment (excluding sexual harassment)

Number

37

52

44

2-16b

Sexual harassment

Number

22

36

29

2-16b

Fraud (misappropriation or misconduct on
accounting/financial statement)

Number

28

35

43

2-16b

Violation of law/regulations

Number

25

27

27

2-16b

Gifts, families and relatives, conflict of interest

Number

8

22

30

2-16b

Bribery and corruption

Number

4

22

5

2-16b

Safety and health

Number

29

21

21

2-16b

Violence and discrimination

Number

19

16

53

2-16b

Third party compliance

Number

17

8

48

2-16b

Confidential information, privacy policy (data privacy, trade secrets,
intellectual property)

Number

11

8

18

2-16b

MANCOM members related

Number

2

6

3

2-16b

Seeking compliance advice

Number

10

5

0

2-16b

Environmental impact

Number

3

2

1

2-16b

Non-compliance against WHO code

Number

1

1

4

2-16b

Human rights (child labor, forced labor and modern slavery)

Number

1

0

1

2-16b

Antitrust and fair dealing

Number

1

0

0

2-16b

Economic sanctions

Number

0

0

0

2-16b

Executive board members/senior managers in Switzerland

Number

0

0

0

2-16b

1 944

1 758

2 341

SASB index

Notes on the data

The foundations of ethical business (continued)
Cases substantiated through Speak Up system

Messages substantiated did not involve government officials.

Messages closed through Speak Up system
Total messages closed through Speak Up system

Number2 721

Community giving
Financial aid

CHF

39 265 000

201-1/a-ii

Product donations

CHF

135 490 000

201-1/a-ii

Total Community giving investment

CHF

177 471 000

201-1/a-ii

Our full Global Reporting Initiative (GRI) Index and SASB Index can be downloaded here.
Table of contents

Nestlé's 2023 CSV and Sustainability KPIs

Creating Shared Value and Sustainability Report 2023

89