1、Creating Shared Value and Sustainability Report 2023Advancing regenerative food systems at scaleContents2 Chairman and CEO message3 Our business model and progress against commitments 4 Governance 5 Our material topics 6 Stakeholder engagement 7 On the road to net zero 15 Restoring nature,protecting

2、 biodiversity 18 Looking at the whole landscape 22 More regenerative practices on farms 26 Water stewardship 31 Responsible sourcing 35 Advancing human rights 41 Packaging and circularity 46 Supporting balanced and sustainable diets 51 Food safety and quality 53 Our diverse and inclusive culture 57

3、Opportunities for young people 60 An employer of choice 65 The foundations of ethical business 70 Community giving 71 About this report72 Statutory Non-Financial Matter ReportIndex(article 964b CO)76 Child labor reporting Index77 TCFD Index79 Nestls 2023 Creating Shared Value and Sustainability key

4、performance indicatorsInvesting in resilience for sustainable growthA message from our Chairman and CEO.In a year of continued turbulence,our focus on addressing societal challenges and generating value for all our stakeholders only increased.Consumers and customers,as well as those throughout our s

5、upply chain,depend on us and our products.To ensure that we can continue to deliver in the long term,we are helping make the production of food more regenerative and are supporting farmers and their communities.Regenerative agriculture is at the heart of our Net Zero Roadmap and we remain focused on

6、 progressing toward our 2025 and 2030 greenhouse gas emissions targets.We are encouraged 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 v

7、ital in thistask.Our work in coffee through the Nescaf Plan 2030 and the Nespresso AAA Sustainable Quality Program continues to meet the Paul BulckeChairmanU.Mark SchneiderChief Executive OfficerNestl CEO Mark Schneider(left)and Chairman Paul Bulcke(right)in Vevey,Switzerland.PEOPLE&PLANETPEOPLE,FAM

8、ILIES&PETSPEOPLE IN COMMUNITIESImproved Tailored Afordable Support for nutrition nutrition nutrition balanced lifestyles Packaging&circularity&biodiversity Water Climate Nature Youth&partners&inclusion rights sourcing Diversity,equity Human Responsible Welcome to the Nestl Creating Shared Value and

9、SustainabilityReport 2023.Expert voices,case studies and data support detail on our approach and performance,covering the topics most material to our business and stakeholders.Read more about independent assurance of this report on page 71.demands of consumers for more sustainable products.Theseinit

10、iatives are also benefiting communities,through increased productivity,as well as helping to improve livelihoods forgrowers.In cocoa,the income accelerator program will now be expanded from Cte dIvoire to Ghana,allowing us to help close the living income gap for a total of 30 000 cocoa-farming famil

11、ies.We aim to reach an estimated 160 000 cocoa-farming families in our global cocoa supply chain by 2030 to create impact at scale.2023 has been a significant year for nutrition at Nestl.We announced our intention to boost the sales of our more nutritious products by CHF 20 to 25billion by 2030,and

12、have stepped up our work to help guide people towards a balanced diet.This includes strengthening our responsible marketing practices,making the nutritional value of our portfolio more transparent and providing more information about balanced diets via digital tools.People are at the heart of our bu

13、siness.Our employees health and well-being remain fundamental to our success,and by the end of 2023,we had embedded the Nestl Roadmap for Employee Health across all of our markets.We also launched our Salient Issue Action Plans,which will support human rights,both within Nestl and across our value c

14、hain for the years to come.As a global food and beverage company,we are committed to safety and quality.Last year,we further enhanced the safety controls in our factories,and are deploying new digital technologies that help us to anticipate and prevent issues before they arise.We do business in a wa

15、y that creates value for all of our stakeholders.Our goal is to remain the Good food,Good life company that people can depend on.Creating Shared Value and Sustainability Report 2023 2Table of contentsLeadership messageOur business model and progress against commitmentsCOMMITMENTKEY PERFORMANCE INDIC

16、ATOR202120222023We aim to reduce our greenhouse gas(GHG)emissions by 20%by 2025 and 50%by 2030 from 2018 levels,on the road to net zero by 2050 at the latestNet reduction of GHG emissions vs.2018 baseline1(%)13.58%We aim to achieve and maintain 100%assessed deforestation-free primary supply chains(f

17、or meat,palm oil,pulp and paper,soy and sugar)by 2022 and 2025 for cocoa andcoffee 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 and sugar assessed as d

18、eforestation-free(%)93.4%2By 2025,we aim for 20%of our key ingredients to be sourced from farmers adopting regenerative agricultural practices,and 50%by 2030Key ingredients sourced from farmers adopting regenerative agricultural practices3(%)n/a6.8%15.2%We aim to reduce water use in our factories by

19、 6million m3 between 2021 and 2023Water use reduction in factories(million m3)2.302.383.00By 2030,we aim for 100%of key ingredient4 volumes to be ResponsiblySourced5 Key ingredients Responsibly Sourced(%)16.3%22%636.2%Number of servings of affordable nutrition with micronutrient fortification(MNF)(b

20、illions)128.47129.2127.6By 2025,we aim to design above 95%of our plastic packaging for recycling and continue to work toward 100%being recyclable or reusablePlastic packaging designed forrecycling(%)74.9%81.9%83.5%By 2025,we aim to reduce virgin plastics by one third,versus our 2018baselineVirgin pl

21、astic reduction versus 2018 baseline(%)8.1%10.5%14.9%By 2030,our ambition is to help 10 million young people around the world have access to economicopportunitiesMillions of young people around the world with access to economic opportunities since2017 3.85.67.78Management positions held by women(%)4

22、6.4%92023 data for Key Performance Indicators(KPIs)on this page are EYassured.The EY limited assurance report and conclusion can be found at Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions.Itcan be found here.Nestls business model is to de

23、liver exceptional products to our customers while delivering sustainability and value.Our diverse portfolio encompasses well-known brands and innovative offerings,allowing us to meet the ever-changing demands ofconsumers.As a global company,we are unwavering in our dedication to growing our business

24、,while focusing on environmental and social responsibility.Nestls resilient and flexible business model empowers us to navigate market challenges,seize opportunities and achieve sustainable growth.Please refer to the Our business section of this years Nestl Annual Review for more detail on this topi

25、c.Categories and markets We make and sell products in:Powdered and Liquid 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 incl

26、uding Middle East(AOA),Latin America(LATAM)and Greater China(GC).About Nestl270 000Employees across all our operations 188Countries we sell in 93.0Billion Group sales in CHF Informed by the materiality assessment conducted for our business model(see page 5),the table above summarizes the strategies

27、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 7989.1.Covers emissions related to our net zerocommitment.Net reductions(%)of

28、 GHG emissions vs.2018 baseline.Includes removals from inside our value chains and sourcing landscapes.Previously absolute amount of reductions and removals vs.Business As Usual was used as the indicator.Therefore data are not comparable between years.2.Cocoa and coffee only included in 2023.3.In 20

29、23,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,p

30、oultry and eggs,palm oil,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 and seafood;hazelnuts;meat,poultry and eggs;palm oil;pulp and paper;soy;spices;suga

31、r;and vegetables.5.Name of commitment has changed in2023.Please refer to page 32 for moreinformation.6.Change in definition means only 2022 year-on-year data are comparable with 2023 performance.7.Number corrected to adjust for some products that werereclassified.8.KPI methodology was updated in 202

32、3 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(%).Creating Shared Value and Sustainability Report 2023 3Table of contentsOur business model and progress against commitmentsGovernanceS

33、ound governance is essential to create shared value,meet our environmental and social commitments and fulfill our due diligence and reportingobligations.Nestls ESG&Sustainability Strategy is key to our decision-making.To ensure we meet our aim of long-term,sustainable value creation,the strategy is

34、developed and delivered by our Executive Board and is approved and regularly reviewed by the Board of Directors and its SustainabilityCommittee.The Sustainability Committee Charter can be viewed here.The Board of Directors approved the 2023 Nestl Creating Shared Value and Sustainability Report to be

35、 issued on February 22,2024,subject to approval at the Annual General Meeting on April18,2024.Executive Board remuneration is linked 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 a

36、ffordable nutrition with micronutrients,the reduction of greenhouse gas(GHG)emissions,plastic packaging designed for recycling,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 Ince

37、ntive Plan for 20%of its grant value.It relates to the reduction of GHG emissions.Full details of Board-level remuneration and bonuses are available in our Compensation Report.The ESG&Sustainability Council provides strategic leadership and drives the implementation of Nestls ESG&Sustainability Stra

38、tegy.The Council is chaired by our Executive Vice President(EVP),Head of Strategic Business Units and Marketing and Sales.The Council addresses the following topics:2050 net zero,Sustainable Packaging,Water,Responsible Sourcing,Upstream Human Rights,Communications,Advocacy,and Systems and Reporting.

39、The Council meets every month and regularly reports to the full Executive Board.The structure helps to accelerate and standardize decision-making on a global level.During 2023,the Council met 12times.There was a particular focus on how the Nestl brands were delivering on the ESG&Sustainability Strat

40、egy and valorizing it through brand communication.The Council also oversaw the implementation of 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 ES

41、G risks,policies,mitigation measures and outcomes,summarized in the appendix of this report.We monitor our ESG&Sustainability Strategy performance KPIs using an internal dashboard.For the full list of KPIs,see pages 79 to 89 in the appendix of thisreport.Performance data are generated every quarter

42、and progress is reviewed by the ESG&Sustainability Council.For full details of our governance structure,see our latest Corporate Governance Report.Key:Approves Reports AdvisesOur governance and implementation structureSustainability Committee(SC)The SC has oversight over the structure and content of

43、 the Companys ESG&Sustainability reporting and validates that the overall approach is in line with the Companys strategy.Audit Committee(AC)The AC has oversight over the accuracy of the Companys financial and ESG&Sustainability reporting.BOARD COMMITTEESThe Board is responsible for the Companys stra

44、tegy and organization and provides oversight over its financial and non-financial performance and reporting.The Board approves the Companys ESG&Sustainability Strategy and approves its CSV and Sustainability Report for submission totheAnnual General Meeting.BOARD OF DIRECTORSThe Companys Executive B

45、oard isresponsible for the execution of the Companys ESG&Sustainability Strategy,which includes ensuring compliance with mandatory reporting obligations.EXECUTIVE BOARDThe ESG&Sustainability Council provides strategic leadership and execution support,anddrives the implementation of Nestls ESG&Sustai

46、nability Strategy,includingour2050 Net Zero Roadmap,ensuring focus and alignment.Scope:2050 net zero Sustainable Packaging Water Responsible Sourcing Upstream Human Rights Communications Advocacy Systems and ReportingESG&SUSTAINABILITY COUNCILThe CSV Council is an external advisory body that advises

47、 seniormanagement on a range of sustainabilityissues.CREATING SHARED VALUE(CSV)COUNCILCreating Shared Value and Sustainability Report 2023 4Table of contentsGovernanceOur material topicsImpact of Nestl on people and the environmentMajor Water management Ecological impacts GHG emissions Health&nutrit

48、ion Environmental&social impacts of ingredient supply chain Product quality&safetySignificant Employee health&safety Physical impacts of climatechange Access&affordability Product labeling&marketing Circular economy Human rights&labor practices Employee acquisition,talent management&retention Employ

49、ee engagement,diversity&inclusion Packaging lifecycle managementModerate Animal welfare Business ethics Community relations Negligible Governance structures&mechanisms Data privacy managementNegligibleModerateSignificantMajorImportance and impact on Nestls business successMaterial topics selectionEs

50、tablish external context Stakeholder engagementMateriality assessment Review strategiesPublish in CSV and Sustainability ReportSustainability Accounting Standards Board(SASB)aligned material topics selectedAI software analysis and analysis of environment55 interviews conducted and surveys collectedQ

51、uantitative and qualitative inputassessedIdentify risks and opportunities in results and adjust priorities accordinglyShare results internally and externallyReport chapters covering topicsGovernance 1Stakeholder engagement 9On the road to net zero 2 3Restoring nature,protecting biodiversity 2 3 4Loo

52、king at the whole landscape 2 3 4More regenerative practices on farms 2 3 4Water stewardship 4 5Responsible sourcing 6 7Advancing human rights 6 8Packaging and circularity 14 15Supporting balanced and sustainable diets 10 11 12Food safety and quality 13Our diverse and inclusive culture 16Opportuniti

53、es for young people 18An employer of choice 16 17 18The foundations of ethical business 19 20Community giving 9Nestl employs a comprehensive and systematic approach to identify its most material topics inESG&Sustainability.Materialitys valueWe regularly conduct a materiality assessment to identify w

54、here Nestls business model has the greatest impact on society and the environment,and which impacts are most important to our business success.The assessment helps to prioritize actions that maximize value creation for shareholders and cultivate positive societal and environmental impacts.Although o

55、ur priorities may not change greatly from year to year,we evaluate each topic to inform strategic decision-making.Our approachOverseen by the ESG&Sustainability Council,we update our materiality assessment every two years.The last assessment was conducted in 2022.Our due diligence approach included

56、working with an independent third party to conduct desk research and interviews with 55 internal and external stakeholders.The results,published in last years Nestl Creating Shared Value and Sustainability Report,informed how we managed the business in 2023.In 2023,we updated our materiality matrix

57、to focus on ESG topics only,in line with the contents of this report.We summarize the related risks and opportunities for stakeholders and theenvironment.Other non-ESG related topics of particular stakeholder interest are addressed in the Nestl Annual Review.These include customer satisfaction,syste

58、matic and critical risk management of the legal and regulatory environment,changing consumption patterns,business models and innovation and technology,cybersecurity and information security,and organizational set-up andefficiency.Managing risksIn addition to the materiality assessment,a risk assessm

59、ent at Group level is conducted annually.ESG&Sustainability topics are built into our Enterprise Risk Management process.This helps to ensure that the full range of material topics is incorporated into the risks and opportunities that are considered across the Company.Risks relating to the environme

60、ntal and social impacts of the supply chain,including exposure to human rights risks,are reviewed at Group management level.There is also a detailed supplier risk and due diligence program,conducted by the Global Procurement function.If required,cases relating to our risk assessment processes are es

61、calated to the Executive Board and related findings are reflected in decision-making processes at an operational and strategic level.Further information on business risks related to our different material topics is included in the 2023 Nestl Annual Review,under Principal Risks andUncertainties.18162

62、0983Evaluating our material topicsOur materiality processCreating Shared Value and Sustainability Report 2023 5Table of contentsOur material topicsStakeholder engagement2023 stakeholders and activity examplesIn a fast-evolving global context,we exchange relevant ESG information

63、 and communicate announcements with a broad range of stakeholders,across a wide range of channels:Consumers:social media,brand campaigns,transparent information.Customers:regular meetings,communications,topical events.Investors and analysts:meetings,investor days,analyst calls.Industry associations:

64、regular engagements across ESG topics.Governments,international organizations,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 institut

65、ions.Farmers,youth,communities:grower programs for commodities.Ratings:#1 on Nature,World BenchmarkingAlliance.#2 on Food and Agriculture,World Benchmarking Alliance.FTSE4Good:4.4.2023 engagements included:Climate:Published the Nestl Climate Advocacy Industry Associations Review.Provided ongoing sup

66、port to the International Chamber of Commerce,Business for Nature and the World Business Council for Sustainable Development in calling for strong action by policymakers to safeguard natural resources.Supported efforts to place food systems at the heart of climate action,backing the COP28 Action Age

67、nda on Regenerative Landscapes and the Emirates Declaration on Resilient Food Systems,Sustainable Agriculture and Climate Action.Partnered with key suppliers to commit to climate change mitigation.Shared guidance on regenerative agriculture techniques such as improved grazing patterns and tree plant

68、ing.Social:Established a new UNESCO partnership for youth projects.Grew the Nestl Cocoa Plan income accelerator program to reach 10 000 cocoa farming families.Launched Salient Issue Action Plans for Human Rights.Nestl Youth delegation attended the World Food Forum to showcase work oninnovation.Imple

69、mented the Nescaf 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 and regular investor meetings and analyst calls.Held five in-person Chairmans ro

70、undtables and engaged with investors throughout theyear.Published the 2022 CSV and SustainabilityReport.Global partnerships:Refocused our partnership with IFRC,with a five-year strategic partnership for the Disaster Response Emergency Fund.Renewed our annual partnership with World Central Kitchen.Es

71、tablished a new UNESCO partnership to support young people to contribute to theircommunities.Nestl and The Global FoodBanking Network signed a Memorandum of Understanding to work on the goal of reducing global food loss and waste while working to eliminate hunger in communities around the world.Nutr

72、ition: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 to advance our advocacy priorities.Participated in the UN Food Systems Summit+2 Stocktaking Moment.Packaging:Co-chaired the B

73、usiness Coalition for a Global Plastics Treaty.Developed the Fair Circularity Initiative with the private sector and non-governmental organizations,ensuring regulatory compliance and topical thought leadership on human rights issues across the full packaging lifecycle,mitigating reputational risk.Ho

74、sted 3 Horizons facilitator training with 50 key stakeholders and Nestl employees to advance collective thinking on waste management and packaging system futures.Continued partnerships with customers and startups such as Circulation in Germany to build new scalable systems across reuse andrefill.Far

75、mers,local communities and young people are among our key stakeholders.Regular interactions with our many stakeholders help us perform better as acompany.To assess our impacts on the identified ESG material topics,we engage with our stakeholders at a local,regional,national and international level.W

76、e apply the Nestl 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 and events that we believe will help addr

77、ess any risks related to the material topics and advance regenerative 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 Councils agenda is defined by Nestls commitments and activities to advance reg

78、enerative food systems.This includes,but is not limited to,issues that impact the business related to climate,nature(forests,land and agriculture),packaging,circular economy,water,human rights,nutrition and social matters.The topics in 2023 included progress on our approach to nutrition,the implemen

79、tation of our climate roadmap and water management.During 2023,we also engaged with our stakeholders to demonstrate progress on key items related to:Coffee:Nescaf Plan 2030 Progress Report,Nespresso The 2030 Positive Cup Strategy and Nespresso The Positive Cup 2022 Progress Report.Cocoa:Nestl Cocoa

80、Plan Income Accelerator Progress Report,Towards Forest Positive Cocoa Annual Progress Report 2023,Nestl Cocoa Plan Annual Progress Report 2022.Nutrition:Good for You strategy.Creating Shared Value and Sustainability Report 2023 6Table of contentsStakeholder engagementOn the road to net zeroOur scien

81、ce-based approach to net zero is designed to mitigate emissions across our value chain and help address impacts on natural ecosystems,communities and food systems.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 th

82、an 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 thisobjective.Are planning further GHG emissions reductions to reach a 50%cut in absolute terms across our net zero scope by 203

83、0.79.55GHG emissions*78.79Net GHG emissions*0.76GHG removalsNestl GHG emissions*,GHG removals and%net reduction vs.2018 baseline(million tonnes of CO2e)Sustainable Development Goals(SDG)contributionsTo track our progress,we put in place the following KPIs:2023 absolute CO2e reductions and removals f

84、rom our interventions(million tonnes)Sourcing Dairy&Livestock 25%Sourcing Soil&Forest 9%Manufacturing 15%Packaging 7%Logistics 4%Recipe reformulation 6%Removals 6%Responsible Sourcing 28%91.17*2018 baselinePeak carbon502023201820192020Net Zero Roadmap launched20212022*Includes Scopes 1,2

85、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.Our Reporting Scope and Methodology for ESG Key Perfo

86、rmance Indicators document provides details and definitions and can be foundhere.13.29million tonnes13.58%Net GHG emissions vs.2018 baseline*Creating Shared Value and Sustainability Report 2023 7Table of contentsOn the road to net zero*Restated due to acquisitions,divestitures,emissions factor resta

87、tements and adjusted scope.*Footprint in scope for Net Zero.As indicated in the graphs above,90%of Nestl 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 the following Scope 3 emissions from

88、 our net zero commitment:direct use-phase of sold products,purchased services,leased assets,capital goods and investments,totaling 7.99milliontonnes CO2e.As per GHG Protocol guidance,the reporting of the emissions related to the indirect use-phase of our sold products is optional and should be discl

89、osed separately from Scopes 1,2 and 3 reporting.For Nestl this represented 8.8 million tonnes CO2e in 2023.Renewable electricity at our manufacturing sites at year end(%),with a target of 100%by 2025 91.9%in 2023 78.4%in 2022 63.7%in 2021Total Scope 1,2 and 3 GHG emissions(million tonnes of CO2e)Sco

90、pe 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)67%Sourcing our ingredients and finished goods 5%Manufacturing our products 12%Packaging our products 7%Managing logistics 9%Overheads and others2021202220232

91、018 baseline:In scope for Net Zero Roadmap98.7593.29*88.42*3.381.44103.58*93.793.270.7497.80*84.083.160.3187.54ContextIn 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 mit

92、igate risks for people and the planet.Nestl accelerated performance during 2023,achieving a 13.58%GHG emissions reduction relative to the 2018 baseline*.Climate change is considered to bring material risks and opportunities for Nestl.We use the Task Force on Climate-Related Financial Disclosures(TCF

93、D)methodology to assess and disclose our climate risks and opportunities.These are covered in this chapter and summarized in the appendix of thisreport.For more on business risks,please refer to the 2023 NestlAnnualReview.ApproachIn 2020,we published the Nestl Net Zero Roadmap(see the latest report

94、here)to set out how we plan to meet our net zero commitment by 2050.Guided by the Roadmap,we have been transforming our business to deliver reductions in GHG emissions across all three Scopes of our activities,according to the criteria approved by the Science Based Targets initiative(SBTi).A detaile

95、d analysis of our GHG emissions,carried out when setting our 2018 baseline,showed that nearly 95%of our footprint was made up of Scope 3 emissions in our supply chain,such as from farming and land use.Dairy ingredients are our largest single source of emissions,accounting for 24%of our total.To tack

96、le our Scope 3 emissions we have developed the Nestl Forest Positive Strategy and the Nestl Agriculture Framework.We also reduce the carbon emissions associated with our logistics activities and continue to collaborate with suppliers,farmers and communities to increase the use of regenerative agricu

97、ltural practices.We are delivering Nestls Net Zero Roadmap through emissions reductions and in-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,our p

98、rimary strategy is to reduce GHG emissions by increasing energy efficiency and also by transitioning to renewable energy sources.Nestl has approved near-and long-term science-based emissions reduction targets with the SBTi.The SBTi has validated Nestls net zero science-based target by 2050.These tar

99、gets include our specific Forest,Land and Agriculture(FLAG)sector objectives for 2030 and 2050.Nestl initiatives,such as the Nescaf Plan,place farmers at thecenter,providing technical support.Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definit

100、ions and can be foundhere.*Removals from landscape projects(86 950 tonnes CO2e)are currently included pending the release of the SBTi guidance on neutralization.91.9%in 202379.55*million tonnesCreating Shared Value and Sustainability Report 2023 8Table of contentsOn the road to net zeroClimate chang

101、e impacts affect all aspects of our value chain and the complex ecosystems where we source from.Transition risk modelingTime horizon10-year horizonScenarios*Emissions trajectoryHighIntermediateLowTemperature increase by2100+4.0C to+5.0C+2.0C to+3.0C+1.5CGlobal action against climate changeFew or no

102、steps taken to limitemissionsReliance on existing/planned policies(notcommitments)Immediate and coordinated action tocurb emissionsBusiness scopeUpstream,direct operations and downstream.Modeling simulationsNet zero Nestls 20%absolute emissions decrease by 2025 and 50%by2030.Modeling metricDirection

103、al cumulative 10-year discounted cash flow(DCF)impacts on net zero business model under the three differentscenarios.Risk categoriesPolicy risks Actions to limit climate emissions include carbon tax,regulations linked to land and water use,restrictions and/or bans on specific materials,enhanced emis

104、sions-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 emission-intensive assets,materials and services.The scenario analysis modeled the share

105、 of energy from renewables as a proxy for technology risks.Market risks Shifts in supply and demand as consumers switch to more sustainable products,or shun specific categories,brands or materials due to environmental credentials.The scenario analysis modeled the proportion of consumers adopting mor

106、e 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 Outlookscenarios.Task Force on Climate-Related Financial Di

107、sclosures(TCFD)Climate-related risks are treated the same way as other risks at Nestl and fully embedded in our holistic Enterprise Risk Management(ERM)Framework.The ERM Framework supports the identification and assessment of the Groups principal risks.We consider both qualitative and quantitative f

108、actors,including those with a potential impact on our strategy,business model and product categories.More information on our ERM approach is reported in Information and control instruments vis-vis the Executive Board in our Corporate Governance Report.In 2023,we continued to strengthen our approach

109、and tools,conducting high-level assessments for product categories and in-depth scenario analyses across our value chain.The outcomes are incorporated into the Groups strategic planning:Top-down climate assessments are formally incorporated into the annual strategic portfolio reviews for Strategic B

110、usiness Units and Globally Managed Businesses.Each unit considers how climate-related risks may affect its strategy and future business projections.The assessments consider risks at an individual zone level and aggregated globallevel.Bottom-up scenario analyses are conducted across our value chain t

111、o assess the resilience of the Groups strategy under different climate scenarios.We worked with third-party 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 di

112、rectional impacts on future cash flows.The relevant operational teams,including procurement,agriculture and business continuity management,review the most significant climate-related risks,develop mitigation strategies and identifyopportunities.Our properties,plants and equipment are geographically

113、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 pri

114、cing and taxes,and businesses 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-,intermediate-and high-emissions pathways and these can vary significantly

115、depending on the nature and speed at which jurisdictions act to align to a Paris Agreementtrajectory.Outcomes of transition risk modelingDepending on the global actions taken to address climate change,in the short-to-medium term we estimate that transition risks will become material to our business.

116、The outcomes of our assessments were considered in the Groups annual enterprise risk 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 Nest

117、l Group Consolidated Financial Statement).Creating Shared Value and Sustainability Report 2023 9Table of contentsOn the road to net zeroChecking plant growth at the Nestl Institute of Agricultural Sciences.Impacts under climatetrajectory*Estimated directional cumulative 10-year discounted cash flow

118、impacts with our current mitigationstrategy Mitigation strategy under our Net Zero Roadmap Future opportunitiesRisk categoryValue chainImpacts assuming no mitigationIntermediate emissions+2.0C +3.0CLow emissions+1.5CPolicy Operations Raw materials Increase in raw materials costs.Restrictions to land

119、use.Increase in energycosts.MedHigh 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

120、to changing weather patterns.Aim for 20%of our key ingredients to be sourced from farmers adopting regenerative agricultural practices by 2025 and 50%by 2030;15.2%achieved in2023.Prioritize deployment of climate-smart agriculture practices in highly exposed geographies.Diversify sourcing origins fro

121、m highly exposedgeographies.Product ingredient substitution:by 2030,plant-based proteins are anticipated to contribute 0.74 million tonnes CO2e to our GHG emissions reduction target.By implementing our Net Zero Roadmap,we are already addressing a significant part of the transition risks identified t

122、hat we could potentially face during this decade,resulting in a net reduction of our exposure.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 oppor

123、tunities:Increasing the resilience of our supply chain through climate-smart agricultural practices.Reducing direct costs from lower-emissions sources ofenergy.Limiting exposure to regulatory changes and increased operational costs due to carbon prices via reductions in our emissions.Increasing reve

124、nues resulting from more demand for low-emission products andservices.Growing consumer demand for low-carbon products such as plant-based foods anddrinks.Continually upgrading ourplant-based offerings interms of taste,texture,flavor and nutrition.Leveraging our expertise in plant proteins to expand

125、our dairy-alternative offerings.Constantly assessing opportunities to reduce our products footprint,through changing recipes and by using alternativeingredients.Packaging Increase in costs for packagingmaterials.Increase in cost of recycled packaging materials due to constraint in supplies,e.g.recyc

126、ledPET.MedHigh Virgin plastic reduction by one-third by 2025;14.9%reduction achieved in 2023.Cross-industry collaboration to drive collection and management of packaging at scale;currently active in 46 of our markets.MarketBrands and portfolio Loss of revenue and/or missed growth opportunities.LowMe

127、d Constant review of products and business models based on their environmental footprint.100%of R&D-led projects are assessed for potential climateimpact.Technology Operations Asset write-downs,investments in low-emission technology to meet marketregulation.LowLow Switch to low-emission technologies

128、.Transition risk impacts,mitigations and future opportunities*We do not display the high-level emissions scenario due to its low impact level.CHF 7 bn High CHF 11 bn|CHF 3 bn Med CHF 7 bn|Low 95%of our plastic packaging to be designed for recycling by2025*Packaging pieces placed on the market*(billi

129、ons)2023320202 Packaging that is reusable,recyclable or compostable*202595%202383.5%202281.9%202174.9%At Nestl,we are working toward a future where none of our packaging ends up in landfill or as litter in theenvironment.By the end of 2023:83.5%of our plastic packaging was designed forrec

130、ycling*.41.5%of our packaging was made from recycled and/or renewablematerials.Virgin plastic in our packaging had reduced by 14.9%since2018.Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions and can be foundhere.*As per EMF New Plastics

131、Economy Commitment Commitments,Vision and Definitions(Feb.2020).*Packaging Pieces Placed on the Market are computed on 95%of total packaging weight.SDG contributions2023-14.9%2025-33%2020-4.0%20182021-8.1%2022-10.5%86.6%in 202385.8%in 202285.4%in 2021To track our progress,we put in place the followi

132、ng KPIs:86.6%in 2023 Creating Shared Value and Sustainability Report 2023 41Table of contentsPackaging and circularityContextPackaging protects food and beverages,ensures their quality and helps prevent food waste.It also provides important information,such as the origins of ingredients and nutritio

133、nal 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 and increasing recyclability and circularity arecrucial.The infrastructure

134、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 Unions Packaging and Packaging Waste Directive is expected to become a regulation durin

135、g 2024.We welcome such regulations that drive economies of scale in packaging sustainability and accelerate the development of infrastructure in collection,sorting and recycling.Reducing the amount of packaging,particularly virgin plastic,and finding suitable alternatives is of utmost importance for

136、 Nestl.Uncertainties surrounding the availability and cost of replacement materials,waste management infrastructure and future regulations could all impact the Companys business performance.These factors may potentially lead to supply disruptions,regulatory action and impacts on our reputation.For m

137、ore on business risks,please refer to the 2023 Nestl Annual Review.ApproachOur vision is ambitious:a world in which none of Nestls packaging,including plastics,ends up in landfill or as litter.In our efforts to stop leakage to natural environments and landfills,we committed to reduce our use of virg

138、in plastic and make our packaging more suitable for recycling systems.The absence of packaging waste management infrastructure is a major concern for all of us and we collaborate to develop more effective systems wherever weoperate.We are part of the Ellen MacArthur Foundations New Plastics Economy

139、initiative,which,in 2017,mobilized the first voluntary industry action on plastic packaging use.We have pledged to work Packaging innovationInnovation is key to delivering Nestls vision for sustainable packaging.We strive for a balance between performance,cost and reduced environmental impacts,while

140、 maintaining the quality and safety of the foods ourpackagingprotects.At the Nestl Institute of Packaging Sciences,we are exploring innovations for new packaging materials.Around 50 scientists conduct research and assess the safety,technical and environmental performance of new materials.The Institu

141、te 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 and redesigning packaging from multi-material to mono-material.We are also testing alternative d

142、elivery systems for reuse and refill.OUR PILLARSWe have five pillars of activity:Pillar 1:Less packaging Reduce Reducing our use of virgin plastics packaging material,removing unnecessary plastics and increasing recycledcontent.Pillar 2:Less packaging Reuse andrefill Scaling reusable packaging and b

143、ulk dispensing systems to eliminate the need for disposable packaging.Pillar 3:Better packaging Redesign Pioneering alternative materials,novel technologies and innovative packaging solutions to facilitate reuse and recycling.Pillar 4:Better System RecycleSupporting collection,sorting,reuse and recy

144、cling infrastructure to shape a waste-free future.Pillar 5:Better system Rethinking behaviorsRethinking mindsets and behaviors at Nestl,as well as with retail partners and consumers.Nestl Australia have been experimenting with new packaging formats,which have included paper for KitKat wrappers.as an

145、 industry to create a circular economy for plastic.The first steps are the elimination of unnecessary plastic in our packaging,as well as innovations to ensure any plastic we do need is designed for recycling orreusability.We aim to implement the design principles described in various design-for-rec

146、ycling guidelines from,for example,the Association of 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 ar

147、e phasing these out.Creating Shared Value and Sustainability Report 2023 42Table of contentsPackaging and circularityPerformanceWe aim for a packaging system where no waste ends up in landfills or natural environments.To help deliver this,we are continuing to transform our packaging systems by reduc

148、ing unnecessary materials and designing more efficient systems.We are also trialling fairer collection methods and supporting betterregulation.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 compar

149、ed to the 2018 adjusted baseline of 956 kilotonnes.Global plastic use by weight and type2022 2023PET(polyester)34.8%34.2%PE(polyethylene)19.1%19.1%PP(polypropylene)21.6%23.7%PO(polyolefin)6.6%6.5%Laminates17.2%15.3%Other0.7%1.2%Pillar 1:Less packaging ReduceDuring 2023,we reduced virgin plastic thro

150、ugh several packaging redesigns in Latin America.Malher Bouillon unveiled redesigned jars to save 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 Nestl Waters brands

151、 continued to increase the incorporation of recycled 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.Nescaf launched several packaging innovations in 2023.In Latin America,we red

152、esigned our single-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,Nescaf lightened the bottles for our ready-to-drink coffee,saving 1 733tonnes of plasticsannually.Pillar

153、 2:Less packaging Reuse and refillIn Germany,we launched a pilot with a local retail partner and the start-up Circolution.Working in more than 60 grocery stores,our packaging experts developed new standardized reusable stainless steel packaging for Nesquik,compatible with existing deposit return and

154、 cleaning infrastructure.In Indonesia,we are working with several start-ups and retail partners to pilot different types of refill and reuse systems.For example,we trialled refillable vending machines,as well as single-serve reusable packaging for Milo and Koko Krunchbrands.For transport packaging,w

155、e innovated through reuse 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 th

156、e 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.Pillar 3:Better packaging RedesignIn Colombia,we

157、transferred our retail display bins for Maggi Chicken Bouillon cubes from transparent plastic tubs to paperboard boxes.This change saves 84 tonnes of plastic in oneyear.We continue to phase out all packaging items that are not widely recycled or which make recycling difficult.In Peru,at high altitud

158、es,we shifted our five liter bulk tubs from polystyrene to widely recyclable PET and phased out 155tonnes of hard-to-recycle materials.Operating from 500 meters to more than 3 500meters above sea level,the new packaging must withstand significant air pressure changes,requiring complex design.In Indo

159、nesia:testing a refill dispensing system with Milo and Koko Krunch.Reusable pallet belts in China replaced plastic shrink wrap,phasing out single-use plastic wrap.Weight of packaging(million tonnes)3.8202120223.60.93.420230.9Total weight of packaging in milliontonnesTotal weight of plastic packaging

160、 in milliontonnes*Sustainability Accounting Standards Board Process Foods Standard FB-PF-410a.1.*New KPI for 2023,previous KPI combined reusable with recyclable.Several factors have affected the percentage of plastic types used in our packaging by weight(see table),including acquisitions and divestm

161、ents,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.Percentage of packaging made from recycled and/or renewable materials

162、*41.5%Recycled content in plastic packaging9.3%(7.7%in 2022)Percentage of packaging that isreusable0.8%*Maggi in Colombia has answered demands for less plastic by innovating with paperboard to replace elements of packaging.Creating Shared Value and Sustainability Report 2023 43Table of contentsPacka

163、ging and circularityExternal viewpointScaling plastic action through cross-sector collaboration the Global Plastic Action PartnershipPillar 4:Better system Recycle In the United States,Nestl,along with six other leading FMCG,food and technology companies,announced a joint investment in Circular Serv

164、ices.The Company aims to scale recycling infrastructure and services in the United States and owns facilities across the country.In India,Nestls social impact project Hilldaari focuses on streamlining waste management systems and helping to professionalize and recognize waste workers.Our support has

165、 enabled over 550 waste workers across several cities to receive government-recognized ID cards,granting access to government health schemes and pension and maternity benefits.In Belgium,since January 1,2023,all beverage capsules and pods,whether aluminum or plastic,can be collected in the new Blue

166、Bag forrecycling.This new recycling solution is the result of a partnership between Nespresso,Nestl(for the Starbucks by Nespresso,Nescaf Farmers Origins and Nescaf Dolce Gusto brands),JDE Peets(for the LOr and Douwe Egberts brands)and FostPlus,initiated by Nespresso via AREME(a Belgian initiative b

167、ringing together players from the entire aluminum value chain).This initiative is currently entirely financed by the above-mentionedbrands.The Colombian Institute of Technical Standards and Certification recognized work conducted in 2022 with Cempre,Veolia and Latitude R,supported by Nestl,to proces

168、s 12 139 tonnes,representing 100%of the plastic,paper and metal packaging we place on the market.We are driving similar initiatives in Argentina,Costa Rica,Ecuador,Mexico and thePhilippines.Pillar 5:Better system Rethinking behaviors In 2023,we launched compostable coffee capsules and pods for our N

169、espresso and Nescaf Dolce Gusto brands in Brazil,France and Switzerland.An extensive campaign was launched to educate consumers on composting and raise awareness of effective compostingmethods.Across the world,Nestl is taking a proactive role in advocating for well-designed and harmonized legislatio

170、n addressing Extended Producer Responsibility(EPR),deposit return systems and reuse and refill.We are also supporting recycled content targets and the UN Treaty on Plastics Pollution.We work to integrate just transition principles into policy advocacy,speaking up for the human rights of workers in o

171、ur extended supply chain.Our work is becoming ever more relevant.In 2022,175 UN member states started to negotiate a legally binding global treaty to end plastic pollution.Each country must assess its unique situation and what actions it can take today.Once the treaty is enacted,nations will then ne

172、ed to translate requirements into tangible results on the ground.Taking effective decisions and actions is a vast,system-wide challenge that individual stakeholders will not be able to resolve on their own.Governments will need to work hand-in-hand with businesses and civil society to break down bar

173、riers.Together,they will have to provide support for solutions that enable prevention,reduction,reuse and recycling at scale.Crucially,this transformation to a circular economy for plastics will also need to be a justtransition.Business has a key role to play.Nestl is a Strategic Partner of the Worl

174、d Economic Forum and 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.Plastic pollution is a systemic challenge that requires stakeholders to come

175、 together across sectors,disciplines and regions 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 lifecycle of plastics at a national and glob

176、al level.Hosted at the World Economic Forum,the partnership brings together governments,businesses and civil society.GPAP has been supporting individual countries since 2019,evaluating their plastic pollution profiles.The work identifies ambitious and realistic systems-change scenarios,and develops

177、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 practice that is leading by example and sharing its learnings and insights regionally and globally.

178、Christian KaufholzInterim Co-Director,Global Plastic Action Partnership,World Economic ForumIn India,Nestls social impact project Hilldaari is supporting waste workers with more effective practices and help gaining access to Governmentservices.Maggi sachet moved to a mono-material in India.Creating

179、Shared Value and Sustainability Report 2023 44Table of contentsPackaging and circularityFolding reuseable shipping cases inChina.Waste pickers play an important role in the circularity of packaging waste and we support them based on the UN Guiding Principles on Business and Human Rights.Waste picker

180、s in informal and cooperative settings play a pivotal role in collecting,sorting and recycling plastics and packaging waste in many countries around the globe.From waste bins,streets and unregulated landfills,roughly 20million waste pickers are responsible for diverting almost 60%of the plastic that

181、 is recycledworldwide.We believe this group merits the same human rights protections as anyone else in our value chain and so we apply the 10 Fair Circularity Principles.We developed the Principles in collaboration with the Fair Circularity Initiative(FCI),which includes development charity Tearfund

182、,the Coca-Cola Company,PepsiCo andUnilever.In line with our Human Rights Salient Issue Action Plans(see Advancing human rights chapter),the issues that we identified as the most salient for our waste management projects are:Safety and Health at Work,Child Labor and access to Education,and Forced Lab

183、or and ResponsibleRecruitment.Outlook We have made progress in areas where we have direct influence,such as designing for recycling systems and supporting infrastructure development.However,the development of infrastructure does not yet match the potentialdemand.To enable a path forward until effect

184、ive 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

185、Pollution has the potential 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 supplychains.In selected priority countries where waste management is a cause of concern,we

186、 are conducting assessments to ensure that the rights of workers are respected.We interview key stakeholders to ensure an inclusive and adequate assessment process where concerns are captured.For any issues encountered,we develop action plans with our partners.We support this work by conducting and

187、publishing studies.In 2023,they included Resident Attitudes toward Open Burning of Waste,and Methodologies and Assessments for Living Incomes for 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

188、 is often mismanaged.We work with partners and associations to increase collection,sorting and recovery of equivalent 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 a

189、 reporting framework to support the wider industry.The increased adoption of the 10 Fair Circularity Principles will help to reduce the impacts of plastics for communities and the environment,as well as help make life for the waste workers themselves more equitable and safe.Partnership with Brazilia

190、n non-profit Recicleiros to implement integrated collection models with waste-picker cooperatives.Waste picker with government ID card in India.Supporting the rights of waste workersCreating Shared Value and Sustainability Report 2023 45Table of contentsPackaging and circularitySupporting balanced a

191、nd sustainable dietsOur ambition is to bring tasty and sustainable diets within reach for billions of people,providing a wide range of foods,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

192、of more nutritious products.Reported transparently on the nutritional value of our globalportfolio.Strengthened our responsible marketing practices.Continued to improve the nutrition and taste of ourproducts.ContextAcross all life stages,food and good nutrition are fundamental to everyones health,we

193、ll-being and quality of life.Food is also a source of enjoyment,playing an important part in our social lives and culture.All foods can be part of a balanced diet if consumed in an adequate amount and as part of an active lifestyle.However,in many parts of the world diet recommendations are not met,

194、leading to all forms of malnutrition.Many people around the world lack access to nutritionally adequate and affordable 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 g

195、lobal presence and extensive portfolio,Nestl is well placed to help address these challenges.Nestls success is dependent on our product portfolio consistently providing value and relevance to consumers.Innovation and speed-to-market are crucial factors,as failing to meet consumer expectations could

196、lead to missed growth opportunities.Breast milk substitutes manufacturers including Nestl face risks if they fail to market products in compliance with the World Health Organization(WHO)Code.The above factors may potentially lead to shifts in demand,regulatory action,loss of trust and impacts on our

197、 reputation.For more on business risks,please refer to the 2023 NestlAnnualReview.SDG contributions*The big four micronutrients are iron,vitamin A,iodine and zinc.*Cereal Partners Worldwide.Total and affordable servings of micronutrient*fortified foods and beverages(billions)Number of servings of CP

198、W*products with micronutrient fortificationNumber of servings of total products with micronutrient fortificationNumber of servings of affordable nutrition with micronutrient fortification202120222023Product with Health Star Rating*%Net sales*HSR of 3.5 or above38%HSR of 1.5 to less than 3.520%HSR of

199、 less than 1.521%Net sales from products where HSR is not appliedSpecialized nutrition*21%*Health Star Rating is an independent nutrient profiling system.Calculations are based on the recipe for each product and are not necessarily included on the product label.Excludes 5%of net sales from non-food

200、items.*76%of net sales covered,excludes PetCare and non-food items.*Specialized nutrition includes products sold by our Nutrition and Nestl Health Science(NHS),which provide nutrition benefits and for which the HSR system generally does not apply.Nutritional valueIn 2023,we transparently reported th

201、e nutritional value of our global portfolio using the Health Star Rating(HSR)system as the basis.To track our progress,we put in place thefollowing KPIs*:Our Reporting Scope and Methodology for Nutritional Value Transparency Key Performance Indicators document provides details and definitions and ca

202、n be foundhere.11.0196.4202.1197.18.7128.4129.29.3127.6Creating Shared Value and Sustainability Report 2023 46Table of contentsSupporting balanced and sustainable dietsApproach All our products can play a role in a balanced diet.Our Nutrition Strategy,Good for You,is built on two strategic pillars:P

203、ortfolio and products and Communications and services.Portfolio and productsIn 2023,we set an ambitious target to grow the sales of our more nutritious products by CHF 2025 billion by 2030,representing about 50%growth over 2022 sales.To deliver on our target,we continue our efforts to improve the nu

204、tritional 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 to expand our affordable,plant-base

205、d and nutrition offerings and set a specific focus on products for children and healthy aging.Nutrition is inextricably linked to our health and development,from birth until our most senior years.We offer products that cater to the specific needs of mothers,infants,children,teens,adults and seniors.

206、In addition to our foods and beverages,we also offer consumer care and medical nutrition products.Communication and servicesPeople 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 nutrit

207、ion knowledge.To guide people toward balanced consumption,we provide information and services,ranging from transparent nutrition labeling to nutrition education programs and nutritious recipes,in compliance with local regulations.These initiatives,such as Nestl for Healthier Kids and Nutriplato,prom

208、ote healthy lifestyles in an engaging format.In addition,we have strengthened our marketing policies for young people,see later in Responsiblemarketing.Portion sizingIn 2023,where local regulations allowed,we set two new portion size commitments for our confectionery and ice cream products:All child

209、rens portions will be 110 kcal orless.All multi-serve products will have clear front-of-pack portion guidance.At Nestl,we want to be part of the solution and make balanced diets the easy choice for people across the world.This is what has led us to refine our approach to nutrition and launch our Goo

210、d for You strategy.Good for You has two strategic pillars:Portfolio and products and Communication and services.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 innovate and offer more nutritious

211、 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.Its in our hands and up to all of us to make it happen.And it

212、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 for theplanet.Internal viewpointRaising our ambition for nutritionLeveraging expertise lets us expand our affordable,plant-based and nut

213、rition offerings.A new nutritionstrategy.As a parent and grandparent,nothing gives me greater pleasure than sharing a meal with my family.At Nestl,we constantly ask ourselves,How can we support more people to enjoy better food?Our new Nutrition Strategy,Good for You,is going to help answer that ques

214、tion.It is a great and complex challenge to meet everyones individual needs and preferences,unlocking the power of food.Our expertise,innovation capabilities,global reach and scale mean Nestl can play an important role in helping to feed a growing and aging population.Its why we call ourselves the G

215、ood food,Good life company.We all want to enjoy tasty and nutritious food that is also better for the environment.Yet,three billion people worldwide cannot afford a healthy diet.People struggle with affordability,time,accessibility and limited information.Bernard MeunierExecutive Vice President Head

216、 of Strategic Business Units and Marketing and SalesSharing a meal with family one of lifes great pleasures.Creating Shared Value and Sustainability Report 2023 47Table of contentsSupporting balanced and sustainable dietsPerformancePortfolio and productsIn 2023,we continued to invest significantly t

217、o improve existing products and to innovate to offer new,more nutritious products.By the end of 2023,our efforts improved the Health Star Rating of 588 of our foods and beverages.We have also continued to address nutrients of public health concern.Thisincluded:Introducing a new versatile and cost-ef

218、fective sugar reduction technology for ingredients such 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 creaminess and sensory attributes of untreated milk.NINHO in Brazil became the first product to use the

219、 technology.Launching No Added Sugar cereals in Europe,made with over 75%whole grains from wheat,oat and quinoa.These Fitness brand varieties from our joint venture Cereal Partners Worldwide(CPW)are also high infiber.Introducing the Garden Gourmet Veggie Burger Deluxe range in Belgium and the Nether

220、lands.These burgers contain more than 60 grams of 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 iron and folate in India.In total,during 2023 w

221、e provided 205.8 billion servings of micronutrient-fortified products from iconic brands,including Maggi and Nido.Nutritional needs across all life stages for people and petsNutritional needs vary throughout life stages,from pre-conception to healthy aging.Womens dietary choices during pregnancy imp

222、act their own health and their babys long-term well-being.Breast milk is the ideal nutrition for babies.For babies who cannot be optimally breast-fed,infant formula helps them thrive.Good nutrition is crucial for childrens development and we support parents vital role in fostering healthy eating hab

223、its.For older adults,the right balance of energy,protein and other nutrients helps in maintaining strength and cognitive abilities,allowing them to live a fulfilling and active life.Our enriched products include Nestls all-in-one milk powder,Yiyang,which caters to the specific needs of people aged 4

224、5 years and over in China.To enhance brain health,it contains vitamins,minerals,essential amino acids,protein and fish oils.Affordable nutritionWith our affordable nutrition offerings,we are helping to close nutrient gaps through fortification,using essential micronutrients such as iron,iodine,zinc

225、and vitamin A.In 2023,we provided 127.6 billion servings of affordable nutrition with micronutrient fortification.We have also developed new foods and beverages that make plant-based proteins moreaccessible.In Nigeria,we launched a new affordable fortified dairy and plant blend,Nido Milk and Soya.Th

226、is combines milk and locally sourced soy,for a blend of essential nutrients such as protein,fiber,and is a source of iron andcalcium.Maggi Soya Chunks is a new,affordable plant-based alternative to replace meat in rice,stews and pasta for consumers in Central and West Africa.Each pack provides enoug

227、h protein for up to eight people,with less saturated fats and cholesterol and at a lower cost when compared 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 G

228、arden Gourmet brand launched fish-style crispy fillets and nuggets.Made with wheat and pea protein,the products are high in protein,low in saturated fat and have a Nutri-Score A*.In Asia,Nestl offers crispy fish-free fingers under the Harvest Gourmet brand in Malaysia and Singapore.Made from soy and

229、 wheat,they are a source of protein and fiber.In the United States,our Natural Bliss brand launched a milk alternative that combines a unique blend of oat and fava bean protein,providing high-qualityprotein.In Chile,we launched a range of Maggi Veg vegan shelf-stable plant-based cooking solutions.Th

230、is includes a soy ground meat replacement for popular dishes like tacos and is a reliable source of high-quality protein andfiber.We continue to invest in our offerings by renovating existing products and working to drive innovation for more tasty and nutritious options.New products answer consumer

231、demand for plant-based alternatives to replace meat in certain staple meals such as stews and pasta.*At time of publication.Creating Shared Value and Sustainability Report 2023 48Table of contentsSupporting balanced and sustainable dietsGuiding consumers toward balanced dietsWe continue to provide i

232、nformation and services to help people make informed food choices for balanced consumption:Across Latin America,our Recetas Nestl websites inspire people to create tasty and balanced meals,with over 21 000 recipes developed by our chefs and nutritionists.Recetas Nestl has over 215 million visits yea

233、rly,reaching one in ten local households.In France,we have teamed up with ,a leading recipe website.We have also piloted the inclusion of the MyMenu IQ nutritional scoring tool,which has enhanced userinteractions.Nestl for Healthier Kids The Nestl for Healthier Kids program promotes balanced diets a

234、nd healthy lifestyle habits for children aged three to 12 years and supports parents and caregivers:In Brazil,the Nestl for Healthier Kids Award celebrates projects that transform school environments to encourage healthier habits.Ithas benefited more than 44 000 children in five years.In So Paulo,an

235、 interactive exhibition,Nutrition,Movement and Fun,has welcomed more than 70 000 visitors since opening in May2022.In Chile,the 12-year-old program was relaunched in 2023 with 36 new digital educational resources.The content now reaches an additional 15 000 children and has generated over 38 000 vie

236、ws on the Nutrition,Movement and Fun YouTube channel.Engaging the culinary professionNestl Professional supports youth training initiatives across Canada,the United States,Latin America,and Central and Eastern Europe through various events with high schools and universities.This provides practical e

237、xposure to food service as well as sharing information on nutrition,health and well-being with youngpeople.Leveraging the theme,Growing Great Chefs,Nestl Professional and Worldchefs welcomed enthusiastic young chefs to the wonderful world of delicious cooking and positive eating habits.Events around

238、 the world led by 3 600 chefs engaged with more than 140 000 children.Services for health professionalsGood nutrition before and after surgery plays a crucial role in the healing process.In the United States,Nestl Health Science is collaborating with specialist health tech provider Amwell.The first

239、initiative combines automated virtual companion technology and our Impact Advanced Recovery drink to help recovery after major electivesurgery.Since 2016,we have run medical education programs with leading international universities.During 2023,more than 11 000 healthcare professionals engaged with

240、our digital courses,with a completion rate of more than 90%and 95%positivefeedback.Dietitians and nutritionists also play a crucial role in promoting the health and nutrition of people.In Europe,we are engaging with EFAD,the European Federation of Associations of Dietitians,by exchanging perspective

241、s and translating scientific knowledge into practical,unbiased resources and tools.A recent example of this is the development of a balanced breakfast toolkit,supported by an unrestricted educational grant from CPW.Our engagement with EFAD has been ongoing for several years.Working together,we aim t

242、o support dietitians in guiding their clients toward more balanced and sustainable diets.Responsible marketingIn 2023,we published two new policies to further strengthen our responsible marketingpractices.We broadened our commitment to market breast milk substitutes responsibly:we expanded Nestls Po

243、licy for Implementing the WHO Code and stopped promoting formula for 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 for babies under 12 mon

244、ths of age as a minimum.Compliance with our Policy is mandatory and embedded in the Corporate Business Principles and we will continue to publicly report on it.We extended our Marketing Communication to Children Policy to young people up to the age of 16.It prohibits direct advertising of confection

245、ery,ice cream and water-based beverages with added sugars to this age group.We are among the first major food and beverage companies to voluntarily apply such strict standards worldwide.In addition,our new policy:Bans all product marketing communication targeting children aged zero to six.Rules out

246、collecting personal data from minors for use in marketing communication.Restricts partnerships to adult influencers only.Compliance with our responsible marketingpolicies*Nestl Policy for implementing the WHO Code*2022Number of countries with audits on the Nestl Policy onWHO Code32Instances of detec

247、ted non-compliances with the Nestl Policy on WHO Code96Nestl Marketing Communication to Children Policy(channels)20222023TV98.4%98.4%Websites100%100%Social media100%100%Influencers*37.5%88.9%Average total84.0%96.8%Ensuring quality nutrition for our petsAt Nestl,we leverage nutritional science to pro

248、mote 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 System

249、s 4-in-1 cat food,which proactively supports the cognitive,digestive,urinary and immunesystems.*For 2023,EU pledge monitoring results for TV,influencers,websites and social media are used as a proxy for compliance with the Nestl Marketing Communication to Children Policy.Compliance was assessed agai

250、nst our policy criteria applicable during H1 2023.Compliance against our updated policy implemented as of July1,2023 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 Sha

251、red 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

252、for posts not targeted to children are also included.“Our mission is to improve nutritional health and promote sustainable diets.We cannot do that alone.Cooperation with stakeholders is crucial.We value the long-term cooperation with Nestl to achieve our goal.”Wineke RemijnseEFAD Executive DirectorC

253、reating Shared Value and Sustainability Report 2023 49Table of contentsSupporting balanced and sustainable dietsOutlookTo help people adopt tasty and balanced diets,we will continue to invest significantly in R&D to drive innovation and to renovate existing products.We will put particular focus on a

254、ffordable 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.Further,we will accelerate the global roll-out of our AI-powered digital service platforms.

255、These will provide transparent nutritional information,recipes and menu planning,as well as personalized tips for more balanced foodchoices.Cocoa-based malt drink Milo was named after a sixth century Greek wrestler who possessed legendary strength.It is a much-loved brand,providing nutritious energy

256、 for kids as well as inspiring them to grow through sports.Sports can be a fantastic teacher for children.The link between Milo and active lifestyles is something we have always invested in.Since the 1960s,Milos grassroots program has held thousands of sports clinics and events every year.In 2023,26

257、 million children took part in such events worldwide.Thanks to long-standing institutional partnerships with governments and sports councils,for example,millions of children have been encouraged to participate in sports activities that help them to exercise,develop their physical skills,make friends

258、,learn teamwork and have fun.In Malaysia,for example,Milo is partnering with the Ministry of Youth and Sport to provide free swimming classes to children from lower incomefamilies.In Sri Lanka,the Milo Schools Netball Championship is the biggest girls-only sports event in the country,providing a pla

259、tform for over 15 000 aspiring netball players.To support balanced lifestyles,we have introduced new patented sugar reduction technology.The technology reduces intrinsic sugar in ingredients such as malt or milk by up to 30%,with a minimal impact on taste andtexture.Our Milo brand has long supported

260、 sports and balanced lifestyles and is now making use of innovative technology to reduce its intrinsic sugarcontent.Reducing sugar in Milo Creating Shared Value and Sustainability Report 2023 50Table of contentsSupporting balanced and sustainable dietsSDG contributionsFood safety and qualityContext

261、High standards of food safety and quality are non-negotiable at Nestl.Quality is integral to our business and embedded in our purpose and values(read The foundations of ethical businesschapter).Please refer also to the NestlCorporate Business Principles.Any incident or food safety concern that may l

262、ead to potential contamination,adulteration,mislabeling or other quality issues is critical for the Group.This is particularly the case where such concerns may put consumers health at risk.The above factors may potentially lead to impacts on consumer health,regulatory action,loss of trust and impact

263、s on our reputation.For more on business risks,please refer to the 2023 Nestl Annual Review.92.9%Ingredients sourced from Tier 1 supplier facilities certified to a GFSI-recognized food safety certification program(2022:91.9%)GFSI audits in our facilitiesMajor and minor non-conformance rateMajor non-

264、conformance corrective action rate2.77202220232.792..551.52202220231.55Minor non-conformance corrective action rateSafe,high-quality products are at the heart of our purpose to unlock the power of food to enhance quality of life for everyone.During 2023,we:Revamped the Hazard Analysis and

265、 Critical Control Points(HACCP)process to reduce the risks of incidents.Performed more than 4.1 million analytical tests at Nestl Quality Assurance Centers for quality and food safety risk assessment and management.Launched a global communications campaign on foreign body prevention.To track our pro

266、gress,we put in place the following KPIs:Approach Our end-to-end approach to food safety and quality applies to design,delivery and how food is consumed.We apply international standards in food safety and quality management and help raise the bar in our industry using rigorous processes and leading

267、scientific techniques.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 respond tochallenges.Our food safety and qu

268、ality systems are designed to anticipate and address changes in regulations,changes to suppliers or ingredients due to factors such as extreme weather events and geopolitical developments.These factors also include the introduction of regenerative agriculture practices and new packaging materials or

269、 systems,and portfolio innovations such as plant-basedproducts.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

270、 laboratories worldwide,we perform more than 4.1 million tests a year.We work to embed a strong food safety culture throughout our business and encourage everyone in our value chains to observe the same standards.Nestl experts participate in leading industry forums,including the Steering Committee a

271、nd the Stakeholder Advisory Forum of the Global Food Safety Initiative(GFSI)and the Advisory Committee of the FoundationFSSC.Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions and can be foundhere.Creating Shared Value and Sustainability

272、Report 2023 51Table of contentsFood safety and qualityPerformance Safe food by designDuring 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 compliance both in the design phase and later stag

273、es of manufacturing.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 andNGOsWe are

274、working with partners to better model and anticipate potential food safety challenges resulting from unusual weather patterns and geopolitical events.Internally,we are enhancing our analytical capability by using cutting-edge technologies at our Quality Assurance Centers.These technologies enable us

275、 to identify and assess the risks posed by chemical contaminants,packaging migrants and microbiological hazards.Upstream agriculture and packagingWe manage food safety and quality risks in our upstream supply chains,including agriculture and packaging.We focus on fluctuations and scarcity in sourcin

276、g,managing changes in suppliers and food fraud risk.Factories and co-manufacturersWe 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,prior

277、itizing risk assessments and continuously addressing and challenging our own ways ofworking.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 according to a GFSI-recognized

278、Food Safety scheme and we have adapted our Integrated Risk Identification Solution(IRIS)to assess those co-manufacturers most at risk and help identify practical measures for improvement.Delivered qualityWe aim to drive quality in design,delivery andconsumption through a rigorous food safetyand qual

279、ity 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 assessment and management.Quality communicationWhat we say matters,so we make sure we are clear,direct and transparent in our communications.I

280、n 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 reminded of the importance of key quality behaviors across the Company.Trust and verifyWe understand and adhere to the roles and responsibilities

281、 that are required of us as the worlds largest food and beverage company.We are constantly looking for ways to strengthen competencies and leverage lessons learned.Our multi-layered food safety and compliance model consists of internal and external independentassessments.Nestls risk mitigation strat

282、egy is for all our manufacturing plants to become compliant with the strict requirements of the Food Safety Systems Certification(FSSC 22000).This is an internationally recognized certification scheme that builds on the ISO 22000 standard in setting a benchmark for quality,safety and processes for t

283、he food industry.FSSC 22000 is recognized by the Global Food Safety Initiative(GFSI)to deliver the highest safety standards and is consistently monitored and certified by third-partyinstitutions.The certification is renewed every three years following a strict audit by a third-party certification bo

284、dy.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 product compliance through analytical testing in ISO-certified Nestl Quality Assurance laboratories.In 2023,we strengt

285、hened our verification governance model by introducing unannounced food safety assessments alongside coaching and systematic sharing of best practices.Food safety issuesTo prevent occurrence of food safety issues,cross-functional teams and food safety experts investigate each incident and root cause

286、 to improve actions and share learnings.As a precautionary measure,in 2023,we initiated 13voluntary product recalls.Ongoing mitigation efforts are focused on upstream supply chain and Nestl manufacturing operations.DigitalWe leverage the power of digital to increase safety and quality throughout our

287、 business.Artificial intelligence(AI),predictive analytics,monitoring and trending are all used to improve efficiency and results.In 2023,we heightened our organizational preparedness using real-time data-driven insights while embedding competency building blocks,such as the Audit Readiness Toolkit.

288、More than 66 000 Nestl employees completed digital quality courses.In particular,more than 16 000 employees completed the digital HACCP level A course and more than 14 000 employees completed the digital course on Pest Management Fundamentals.Outlook We will continue to reinforce our food safety and

289、 quality culture across the organization.We remain alert to the latest research findings in critical risk areas and adapt our protocols as appropriate.We will make the best use of data to predict and detect potentialincidents.Climate change impacts will increasingly affect agricultural practices and

290、 we will need to adapt and refine our processes to ensure a continued supply of quality and safe materials and products for our customers.We also aim to address potential risks emerging from the use of recycled and novel packaging materials and new ingredients in the supply chain.We ensure our facto

291、ries and co-manufacturers have the adequate resourcing,competencies,infrastructure and maintenance to deliver the highest standards.Creating Shared Value and Sustainability Report 2023 52Table of contentsFood safety and qualityOur diverse and inclusive cultureContextDiversity,equity and inclusion(DE

292、&I)values are vital to the Nestl business.We seek a culture of success that respects diversity,pursues equity,enables inclusion and ensures our people reflect the consumers and communities we serve.When our colleagues feel they can be themselves at work,they are often happier,more engaged and produc

293、tive,enhancing their ambition of being a force for good.Embracing differences and celebrating different viewpoints helps our workforce reach their full potential.Diverse teams generate a sense of belonging and can inspire the ideas that create shared value.We advocate for inclusion throughout our bu

294、siness and encourage all employees to be open-minded.Our ability to attract,develop and retain a diverse 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

295、key personnel or skills 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 NestlAnnual Review.Management positions held by women(%)Nurturing inclusivity enhances our emp

296、loyees well-being and helps us better reflect the society we serve.Leveraging our diversity supports our ambition to advance regenerative food systems at scale while enabling a just and equitable transition.By the end of 2023:All markets had completed diversity,equity and inclusion(DE&I)self-assessm

297、ents and set action plans 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 in ourmarkets.SDG contributions46.4%in 202345.3%in 2022*43.8

298、%in 2021*To track our progress,we put in place thefollowing KPI:Our Reporting Scope and Methodology for ESG Key Performance Indicators document provides details and definitions and can be foundhere.*KPI reported as per Middle and senior managers that are female.46.4%Management positions held bywomen

299、Creating Shared Value and Sustainability Report 2023 53Table of contentsOur diverse and inclusive cultureApproach 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 understan

300、ding of our DE&I strategy across ourorganization.Everyone has the right to work free from discrimination,violence and harassment,including gender-based violence and harassment.The objective is to create a workplace where all are respected for who they are regardless of gender or other characteristic

301、s or backgrounds.To assess,address and report on potential risks and opportunities on this topic at the global level,we have created a specific action 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 c

302、omply with all local legal and regulatory 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 of

303、 the five generations working at Nestl,from younger generations right up to older cohorts of 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 and challenges related to race or

304、ethnicity.From D&I to DE&IWe want all our people to have the same access to opportunities and to enjoy a level playing field that considers all of their characteristics,unique needs and experiences.To make this explicit,in 2023 we introduced the word equity into our approach to diversity andinclusio

305、n.Gender balanceWe are building a gender-balanced workforce at all levels,including management.We have a 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 bu

306、ilding an equitable workplace,and are guided by a gender equity action plan.As part of Nestls Human Rights Framework and Roadmap,our recently launched Gender Equity,Non-Discrimination and Non-Harassment Action Plan seeks to raise awareness and capacity on gender equity,non-discrimination and non-har

307、assment with our employers and suppliers.Actions include commencing voluntary self-disclosure in some countries and equal pay analysis,as well as encouraging our direct suppliers to deliver complementaryactions.Nestl was a founding signatory of the Womens Empowerment Principles which offer guidance

308、on how to advance gender equality and womens 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 is externally recognized in the Bloomberg Gender-EqualityInde

309、x.We also engage direct suppliers on these topics as part of our Gender Equity,Non-Discrimination and Non-Harassment Action Plan.In some markets,we are building supplier diversity DIVERSITY,EQUITY AND INCLUSION PILLARS AT NESTLUnderpinned byGenerations Gender balancePeople with disabilitiesLGBTQI+co

310、mmunityRace and ethnicityprograms to support,among others,businesses that are majority-owned by people who are part of traditionally underrepresented or underserved groups in society.People with disabilitiesWe aim to support the needs of all people with disabilities,whether their disability is visib

311、le or not.We want to ensure our facilities,workspaces and communications are inclusive and accessible.We are members of TheValuable 500 to accelerate disability inclusion and a signatory of the ILO Global Business and Disability Network(GBDN)Charter that aims to promote the employment of persons wit

312、h disabilities.These global disability business networks give us access to best practice from disability specialists and our business peers and thereby enable us to accelerate disability inclusion in our workforce.The ILO GBDN also supports national level business initiatives on disability inclusion

313、,particularly in developing countries.We have committed 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

314、 tomorrow,while also raising awareness among todays senior executives.LGBTQI+communityAt a global level,Nestl publicly supports the United Nations Standards of Conduct to support the business community in tackling discrimination against lesbian,gay,bi,trans and intersex(LGBTI)people and is a member

315、of the Partnership for Global LGBTI Equality.Most of our markets provide resources on coming out in the workplace,allyship and trans and nonbinary awareness.We continue to implement policies,guidelines and reporting systems to reinforce our culture of respect.We provide gender-neutral benefits and s

316、upport for diverse family structures.Local LGBTQI+employee networks and employee resource groups are complemented by collaborations with external organizations advocating for workplace protections in line with local laws.Race and ethnic inclusionWe strive to advance racial and ethnic inclusion and a

317、re 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.Nestl is a founding member of the World Economic Forums Partnering for Racial Justice in Busine

318、ssinitiative,a coalition of global organizations 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 our organizations and within the communities where we operate.Generations and Nestl needs

319、 YOUth We have five different generations in our global workforce and actively encourage mentoring opportunities.For more on this subject,see the Opportunities for young people chapter.We want all our people to have the same access to opportunities and to enjoy a level playing field that considers a

320、ll of their characteristics,unique needs and experiences.Our diversity,equity and inclusion values play an increasingly important role for all of our stakeholders.Creating Shared Value and Sustainability Report 2023 54Table of contentsOur diverse and inclusive culturelivelihoods and improve financia

321、l literacy so that they can make coffee a sustainable way of life.A great example is the Tuvemubukene womens 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 mak

322、e 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 a

323、nd buying more coffee trees.We want to enable women to access what we call tuvemubekene,meaning to get out of poverty in the local Kinyarwanda language.For the Ituze womens group,a similar VSLA has helped 17 members diversify their income sources,moving into catering,selling sorghum and making soap.

324、As women living with HIV,the group first met to support each other and fight 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 Nestl,weve now reached over 5 600 women in Rwanda.Boosting womens earnin

325、gs and financial literacy is one of the best ways to promote gender equity.Were committed to uplifting women by supporting them to find a sustainable future in coffee growing.And Im proud to be involved.External viewpointWorking together to grow futures for women in coffee Since 2016,Nestl has been

326、working with the Kahawatu Foundation to help empower female coffee growers in our value chain.We spoke to Gender Lead,Robinah Najjingo,about the work she is involved in.Across Rwanda,coffee is a lifeline for more than 400 000 families.But growers,especially women,face many challenges.Harvests can be

327、 unpredictable.Tools,improvements and supplies can be expensive.And too often women are not respected as equal partners.Thats why I do what I do.To help make adifference.Kahawatu actually means peoples coffee in Swahili.Since 2013,and with the support of partners like Nestl,the foundation has built

328、a network that has reached 100 000 farmers across Burundi,Rwanda and Uganda and has helped to establish 50 womens associations.Were providing training and support for coffee growers to improve yields,diversify their Robinah Najjingo Gender Lead,Kahawatu FoundationPerformance Local regulations and cu

329、ltures vary across the world.To createimpact,our market and brand-led activities are calibrated according to local context and regulations,in line with ourpriorities.All our markets have now completed self-assessments evaluating the maturity of their implementation of DE&I initiatives,programs and p

330、rocesses.For continued progress,they have also set action plans where needed.In February 2023,we published the Nestl Salient Issue Action Plan for Gender Equity,Non-Discrimination and Non-Harassment.The plan seeks to build understanding of gender topics and needs,with clear steps for addressing them

331、 between now and 2025.The action plan contributes to the Nestl Human Rights Framework and Roadmap,which supports a just transition toward regenerative food systems.It is also helping us prepare for forthcoming changes in reporting requirements.We will continue to be vigilant as new standards and pro

332、tocols emerge.We will also track and review our progress,and identify concrete actions to closegaps.Our Global Voluntary Self-Identification Program empowers employees to submit diversity-related data about themselves in line with local legislation.The Program was launched with the aim of gaining a

333、richer understanding of the inter-sectional diversity of our global workforce and their needs,to measure our efforts,set data-driven ambitions and take more considered actions to foster 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,