Nestlé: Creating Shared Value and Providing Climate Change Leadership

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1 Nestlé: Creating Shared Value and Providing Climate Change Leadership Climate Change Learning Conference The Business Case for Climate Change Kingston, Jamaica: July 17, 2014 Jürg Blaser Country Manager

2 Nestlé at a glance CHF 92.2 billion in sales in ,000 employees in over 150 countries 468 factories in 86 countries 34 research, development and technology facilities worldwide Over 2,000 brands 1 billion Nestlé products sold every day

3 Nestlé in society: Creating Shared Value and meeting our commitments

4 Addressing Climate Change by focusing on air emissions reduction and adaptation

5 Our commitment to provide Climate Change leadership

6 Multicriteria approach from farm to consumer and beyond Sourcing of raw materials Research & Development Manufacturing Regulation Packaging Distribution Marketing & Consumer Communications Corporate Communications Human Resources

7 Ecodesign Sustainability by Design Programme systematically assesses and optimises the environmental performance of new and renovated products, including greenhouse gas emissions. Doypack Dali pouch Glass Jar

8 Helping coffee farmers adapt to environmental challenges The Nescafé Plan 2015: tons from Farmer Connect, 100% in line with 4C 2020: CHF 350 million investment, tonnes in line with Rainforest Alliance and SAN, 220 million high-yield, disease-resistant coffee plantlets to farmers.

9 Helping farmers to avoid food wastage Food wastage represents a significant contributor to climate change: - If it were a country, it would be the 3rd emitter worldwide, - In developing world, food losses mostly happen in the upstream supply chain before processing and consumption Providing farmers cooling facilities and training to help them reduce milk losses

10 GHG emissions per tonne of product in factories halved during last decade

11 Multi-pronged approach (energy efficiency, renewable energy, waste avoidance, ) 448 factories ISO certified 61 factories with 0 waste, including 4 NESCAFÉ factories 22 NESCAFÉ factories recovering coffee grounds as renewable energy 93% of our industrial refrigerants with high global warming and ozonedepleting potential phased out and replaced with carbon neutral natural refrigerants NESCAFÉ plan to reduce energy use by 20% and water use by 30% per ton produced by 2020

12 Nestlé Mexico meets 85% of electricity needs through wind power Nestlé was the first food company in Mexico to meet almost all its electricity needs from renewable sources. The Chiapa de Corzo Coffee Mate factory has invested CHF in a major solar energy project. This is a win for energy efficiency and GHG emission reduction. In 2013, the project won a prestigious award from the United Nations Development Programme (UNDP), and the learning has been shared with solar energy projects in other Nestlé factories.

13 Renewable energy from wood-fired boilers Nestlé France s Challerange factory, which produces milk powder for Dolce Gusto capsules, now operates a wood-fired boiler using woodchips sourced from forests certified by the Programme for the Endorsement of Forest Certification meeting 96% of the factory's fuel needs. The boiler will generate 8000 tonnes of CO2 savings per year and will help us minimise the impact of rising energy prices. Two other wood-fired boilers were installed at our Rosières and Herta St Pol factories last year. These three wood-fired boilers have resulted in an overall CO2 saving of 25% for Nestlé France.

14 Packaging optimisation The packaging of our products is crucial to prevent food waste, guarantee our high quality standards and inform our consumers. Packaging source optimisation: Since 1991: more than half a million tons of packaging were saved Over the last 5 years: over 440,000 tons CO2e were saved In one year: this represents 95,000 cars taken off the road This refill is so compact! It weighs only two third of the previous refill but still squeezes 150g of great quality coffee.

15 benefiting distribution Delivering the products in highest quality and on time from the factory to customer is a vital part of our business. 50% FEWER LORRIES

16 Designing products that help consumers lower their own GHG emissions Environmental performance of a cup of coffee Raw materials Manufacturing/ Packaging Consumer Waste recovery: Positive effects Instant coffee has a better environmental performance than filter coffee Energy savings opportunities at consumption Humbert S, Loerincik Y, Rossi V, Margni M and Jolliet O (2009). Life cycle assessment of spray dried soluble coffee and comparison with alternatives (drip filter and capsule espresso). Journal Cleaner Production

17 Delighting consumers

18 Helping consumers to avoid food wastage In developed world, food waste mostly happen in the downstream supply chain after processing and at consumption stage Solutions to creatively enjoy leftovers Offering consumers the right portion sizes, preparation instructions and storage guidance

19 Proactive long-term engagement and partnership on food wastage

20 Nestlé rated highly on providing Climate Change leadership 1) CDP Climate Disclosure Leadership Index and Climate Performance Leadership Index 2) DJSI: Nestlé is the Best Performer in its sector, Maximum score in climate change section 3) Oxfam Nestlé retains top slot and highest score on climate change

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