Information is assured by independent assurors (e.g., accounting or consulting firm) against recognized assurance standard (e.g., ISAE3000, AA1000AS, other national or industry-specific standard)

Other established or emerging best practices

Our 2018 report is aligned with the GRI Standards: Comprehensive option and the GRI Food Processing Sector Supplement. It has been externally verified by Bureau Veritas in alignment with the ‘in accordance with comprehensive’ level of the GRI Standards.

Applies the GRI Sustainability Reporting Guidelines or the GRI Standards

Is 'in accordance - comprehensive' with GRI Standards

Provides information on the company’s profile and context of operation

Place responsibility for execution of sustainability strategy in relevant corporate functions (procurement, government affairs, human resources, legal, etc) ensuring that no function is conflicting with company sustainability commitments and objectives

Align strategies, goals and incentive structures of all business units and subsidiaries with corporate sustainability strategy

Assign responsibility for corporate sustainability implementation to an individual or group within each business unit and subsidiary

Design corporate sustainability strategy to leverage synergies between and among issue areas and to deal adequately with trade-offs

Ensure that different corporate functions coordinate closely to maximize performance and avoid unintended negative impacts

Other established or emerging best practices

This is the fourth year Nestlé has responded to the UNGPRF. The UNGPRF is fully integrated into our existing human rights management structures. External auditors Bureau Veritas assure our human rights reporting against this framework.

Analyze each segment of the value chain carefully, both upstream and downstream, when mapping risks, opportunities and impacts

Communicate policies and expectations to suppliers and other relevant business partners

Implement monitoring and assurance mechanisms (e.g. audits/screenings) for compliance within the company’s sphere of influence

Undertake awareness-raising, training and other types of capacity building with suppliers and other business partners

Other established or emerging best practices

We use diagnostic tools and apply Theory of Change to assess the sustainability of farmer livelihoods. This supports our direct sourcing approach, engaging with farmers to develop supply chains that meet our social, environmental and ethical requirements.

Commitment to comply with all applicable laws and respect internationally recognized human rights, wherever the company operates (e.g., the Universal Declaration of Human Rights, Guiding Principles on Human Rights) (BRE1 + ARE1)

Integrated or stand-alone statement of policy expressing commitment to respect and support human rights approved at the most senior level of the company (BRE 1 + BRE5 + ARE 1 + ARE 5)

Statement of policy stipulating human rights expectations of personnel, business partners and other parties directly linked to operations, products or services (BRE 1)

Statement of policy publicly available and communicated internally and externally to all personnel, business partners and other relevant parties (BRE 1 + BRE 5 + ARE 1 + ARE 5)

Other established or emerging best practices

We have an integrated approach to human rights management and reporting that is based on the UNGP Reporting Framework. Management of the issues identified through the Framework has been integrated into our existing management structures.

Any relevant policies, procedures, and activities that the company plans to undertake by its next COP to fulfill this criterion, including goals, timelines, metrics, and responsible staff

System to monitor the effectiveness of human rights policies and implementation with quantitative and qualitative metrics, including in the supply chain (BRE3 + ARE3)

Monitoring draws from internal and external feedback, including affected stakeholders

Leadership review of monitoring and improvement results

Process to deal with incidents the company has caused or contributed to for internal and external stakeholders (BRE 4 + ARE 4)

Grievance mechanisms that are legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue (BRE4 + ARE4)

Outcomes of integration of the human rights principles

Other established or emerging best practices

Launched our CARE Audit Protocol to monitor human rights issues in our operations and dedicate resources to salient issues. We complete human rights impact assessments in our supply chain, and have grievance and other monitoring systems in place.

Process to ensure that internationally recognized human rights are respected

On-going due diligence process that includes an assessment of actual and potential human rights impacts (BRE 2 + BRE 3 + ARE 2 + ARE 3)

Internal awareness-raising and training on human rights for management and employees

Operational-level grievance mechanisms for those potentially impacted by the company’s activities (BRE 4 + ARE 4)

Allocation of responsibilities and accountability for addressing human rights impacts

Internal decision-making, budget and oversight for effective responses to human rights impacts

Processes to provide for or cooperate in the remediation of adverse human rights impacts that the company has caused or contributed to (BRE 3+ BRE 4 + ARE3 + ARE 4)

Process and programs in place to support human rights through: core business; strategic philanthropic/social investment; public policy engagement/advocacy; partnerships and/or other forms of collective action (BRE 6 + ARE 6)

Other established or emerging best practices

An integrated approach to human rights management, based on UNGPRF. Our Human Rights Due Diligence program is aligned with UN Guiding Principles on Business and Human Rights. In 2018 we launched a human rights training tool and CARE audit protocol.

Risk and impact assessments in the area of labour

Dialogue mechanism with trade unions to regularly discuss and review company progress in addressing labour standards

Allocation of responsibilities and accountability within the organization

Internal awareness-raising and training on the labour principles for management and employees

Active engagement with suppliers to address labour-related challenges

Grievance mechanisms, communication channels and other procedures (e.g., whistleblower mechanisms) available for workers to report concerns, make suggestions or seek advice, designed and operated in line with the representative organization of workers

Other established or emerging best practices

Partner with FLA to assess upstream supply chain and inform our human rights work. In 2018 launch of CARE Audit Protocol - independent assessments to raise human rights issues. We have root cause analysis (RCA) systems for reporting compliance breaches.

Reference to principles of relevant international labour standards (ILO Conventions) and other normative international instruments in company policies

Reflection on the relevance of the labour principles for the company

Written company policy to obey national labour law, respect principles of relevant international labour standards in worldwide company operations and engage in dialogue with representative organization of the workers (international, sectoral, national).

Inclusion of reference to the principles contained in the relevant international labour standards in contracts with suppliers and other relevant business partners

Specific commitments and Human Resources policies, in line with national development priorities or decent work priorities in the country of operation

Participation and leadership by employers’ organizations (international and national) to jointly address challenges related to labour standards in the countries of operation, possibly in a tripartite approach (business – trade union – government).

Structural engagement with a global union, possibly via a Global Framework Agreement

Other established or emerging best practices

To support our overarching business principles and supplier code, we have targeted policies addressing land rights, child labour and labour rights in our agricultural supply chain.

System to track and measure performance based on standardized performance metrics

Dialogues with the representative organization of workers to regularly review progress made and jointly identify priorities for the future

Audits or other steps to monitor and improve the working conditions of companies in the supply chain, in line with principles of international labour standards

Process to positively engage with the suppliers to address the challenges (i.e., partnership approach instead of corrective approach) through schemes to improve workplace practices

Outcomes of integration of the Labour principles

Other established or emerging best practices

Partner with FLA to assess upstream supply chain and inform our human rights work. In 2018 launch of CARE Audit Protocol - independent assessments to raise human rights issues. We have root cause analysis (RCA) systems for reporting compliance breaches.

Environmental risk and impact assessments

Assessments of lifecycle impact of products, ensuring environmentally sound management policies

Allocation of responsibilities and accountability within the organisation

Internal awareness-raising and training on environmental stewardship for management and employees

Grievance mechanisms, communication channels and other procedures (e.g. whistleblower mechanisms) for reporting concerns or seeking advice regarding environmental impacts

Other established or emerging best practices

Our sites use the Nestlé Environmental Management System (conforms to ISO 14001:2004). We aim for ISO certification at our factories through independent accreditation. Caring for Water global initiative enables AWS certification of our operations.

Reference to relevant international conventions and other international instruments (e.g. Rio Declaration on Environment and Development)

Reflection on the relevance of environmental stewardship for the company

Written company policy on environmental stewardship

Inclusion of minimum environmental standards in contracts with suppliers and other relevant business partners

Specific commitments and goals for specified years

Other established or emerging best practices

To support our overarching environmental sustainability policy, we have targeted policies addressing climate change, biofuels, water stewardship, natural capital, food loss and waste and deforestation.

System to track and measure performance based on standardized performance metrics

Leadership review of monitoring and improvement results

Process to deal with incidents

Audits or other steps to monitor and improve the environmental performance of companies in the supply chain

Outcomes of integration of the environmental principles

Other established or emerging best practices

In 2018, we retained our place in CDP’s annual Climate A list in recognition of our actions during the last year to cut emissions, mitigate climate risks and develop the low-carbon economy.

Publicly stated formal policy of zero-tolerance of corruption (D1)

Commitment to be in compliance with all relevant anti-corruption laws, including the implementation of procedures to know the law and monitor changes (B2)

Statement of support for international and regional legal frameworks, such as the UN Convention against Corruption (D2)

Detailed policies for high-risk areas of corruption (D4)

Policy on anti-corruption regarding business partners (D5)

Other established or emerging best practices

In 2018 Nestlé markets launched a compliance communication plan. In 2019 a corporate toolkit will be developed for training managers on business integrity.

Support by the organization’s leadership for anti-corruption (B4)

Carrying out risk assessment of potential areas of corruption (D3)

Human Resources procedures supporting the anti-corruption commitment or policy, including communication to and training for all employees (B5 + D8)

Internal checks and balances to ensure consistency with the anti-corruption commitment (B6)

Actions taken to encourage business partners to implement anti-corruption commitments (D6)

Management responsibility and accountability for implementation of the anti-corruption commitment or policy (D7)

Communications (whistleblowing) channels and follow-up mechanisms for reporting concerns or seeking advice (D9)

Internal accounting and auditing procedures related to anticorruption (D10)

Other established or emerging best practices

We continue to embed our culture of integrity, engaging with all employees. Including training and Communications Best Practices toolkits for all our markets. And in 2019 we are launching a business integrity corporate toolkit for managers.

Leadership review of monitoring and improvement results (D12)

Process to deal with incidents (D13)

Public legal cases regarding corruption (D14)

Use of independent external assurance of anti-corruption programmes (D15)

Outcomes of integration of the anti-corruption principle

Other established or emerging best practices

To monitor and evaluate our compliance of anti-corruption in accordance with our culture of integrity and Corporate Business Principles we conduct independent assessments (CARE audits). Our CARE Audit Protocol was launched in 2018.

Align core business strategy with one or more relevant UN goals/issues

Develop relevant products and services or design business models that contribute to UN goals/issues

Adopt and modify operating procedures to maximize contribution to UN goals/issues

Other established or emerging best practices

Our material issues are mapped against the SDGs and inform our commitments, which in turn contribute to 3 global initiatives: Nestlé for Healthier Kids, Nestlé Needs YOUth and Caring for Water. Founding patron of UNGC Action Platform for SDG 16.

Pursue social investments and philanthropic contributions that tie in with the core competencies or operating context of the company as an integrated part of its sustainability strategy

Coordinate efforts with other organizations and initiatives to amplify—and not negate or unnecessarily duplicate—the efforts of other contributors

Take responsibility for the intentional and unintentional effects of funding and have due regard for local customs, traditions, religions, and priorities of pertinent individuals and groups

Other established or emerging best practices

We believe that our company will be successful in the long term by creating value for both our shareholders and for society as a whole. This approach, called Creating Shared Value, remains the fundamental principle for how we do business.

Publicly advocate the importance of action in relation to one or more UN goals/issues

Commit company leaders to participate in key summits, conferences, and other important public policy interactions in relation to one or more UN goals/issues

Other established or emerging best practices

Our advocacy priorities: Nutrition and health; Mother and baby in infancy; Youth opportunities; Access to water, Plastic pollution; Food safety. Commitment on Transparent and proactive engagement in climate policy.

Develop and implement partnership projects with public or private organizations (UN entities, government, NGOs, or other groups) on core business, social investments and/or advocacy

Join industry peers, UN entities and/or other stakeholders in initiatives contributing to solving common challenges and dilemmas at the global and/or local levels with an emphasis on initiatives extending the company’s positive impact on its value chain

Other established or emerging best practices

Best practices examples of partnerships and collective action are listed in our 2018 CSV report and online. See overview here: https://www.nestle.com/csv/what-is-csv/partnerships-alliances

Board of Directors (or equivalent) assumes responsibility and oversight for long-term corporate sustainability strategy and performance

Board establishes, where permissible, a committee or assigns an individual board member with responsibility for corporate sustainability.

Board (or committee), where permissible, approves formal reporting on corporate sustainability (Communication on Progress)

Other established or emerging best practices

The Nestlé in Society Board is chaired by our CEO. It leads the strategic development and implementation of CSV across our business, reverting to the Executive Board for input. It is supported by 3 leadership committees established in 2017

Publicly recognize responsibility for the company’s impacts on internal and external stakeholders

Define sustainability strategies, goals and policies in consultation with key stakeholders

Consult stakeholders in dealing with implementation dilemmas and challenges and invite them to take active part in reviewing performance

Establish channels to engage with employees and other stakeholders to hear their ideas and address their concerns

Other established or emerging best practices

Engaging with stakeholders on important issues lies at the heart of how we do business. We continually seek the advice of the best experts and advocates to improve our policies and commitments, strengthen our business and target our societal investments.

CEO leads executive management team in development of corporate sustainability strategy, defining goals and overseeing implementation

CEO publicly delivers explicit statements and demonstrates personal leadership on sustainability and commitment to the UN Global Compact

CEO promotes initiatives to enhance sustainability of the company’s sector and leads development of industry standards

Make sustainability criteria and UN Global Compact principles part of goals and incentive schemes for CEO and executive management team

Other established or emerging best practices

The Board of Directors, Chairman, CEO and Executive Board are responsible for our role in society and CSV strategy. They are supported by internal management bodies such as the Nestlé in Society Board and Leadership Committees.

Achieving and maintaining gender equality in senior management and board positions

Achieving and maintaining gender equality in middle management positions

Equal pay for work of equal value

Flexible work options

Support for pregnant women and those returning from maternity leave

Recruitment and retention, including training and development, of female employees

Gender-specific health and safety issues

Gender-based violence and harassment

Education and training opportunities for women workers

Creating and maintaining workplace awareness of gender equality and, inclusion and non-discrimination for all workers

Mentoring and sponsorship opportunities for women workers

Other established or emerging best practices

GRI Content Index 405-1, 405-2 CSV: Our key performance indicators. p.58

Designing community stakeholder engagements that are free of gender discrimination/stereotyping and sensitive to gender issues

Gender impact assessments or consideration of gender-related impacts as part of its social and/or human rights impact assessments

Ensuring female beneficiaries of community programmes

Community initiatives specifically targeted at the empowerment of women and girls

Strategies to ensure that community investment projects and programmes (including economic, social and environmental) positively impact women and girls

Strategies to ensure that community investment projects and programmes (including economic, social and environmental) include the full participation of women and girls

Other established or emerging best practices

We work on ‘income-generating activities’ for women in Côte d’Ivoire’s cocoa-growing regions as a key remediation action for tackling child labor. By empowering women and generating income, risk is reduced and communities’ benefit.

Achieving and maintaining gender equality in senior management and board positions

Achieving and maintaining gender equality in middle management positions

Equal pay for work of equal value

Flexible work options

Support for pregnant women and those returning from maternity leave

Recruitment and retention, including training and development, of female employees

Gender-specific health and safety issues

Gender-based violence and harassment

Education and training opportunities for women workers

Creating and maintaining workplace awareness of gender equality and, inclusion and non-discrimination for all workers

Mentoring and sponsorship opportunities for women workers

Other established or emerging best practices

Announcement at the UNGA to accelerate pace toward equal pay. In 2018 objective achieved to be gender-balanced company. Since 2011 women in leadership positions increase every year. Nestlé in the 2019 Bloomberg Gender-Equality Index

Supplier diversity programme

Support for women business owners and women entrepreneurs

Supplier monitoring and engagement on women's empowerment and gender equality including promotion of the Women's Empowerment Principles to suppliers

Gender-sensitive marketing

Gender-sensitive product and service development

Other established or emerging best practices

Training on farming, finance and leadership to women throughout raw material supply chains. Created tool to understand gender equality in coffee suppliers. Partnered with the FLA to investigate grievance mechanisms for women in cocoa communities

SDG 1: End poverty in all its forms everywhere

SDG 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture

SDG 3: Ensure healthy lives and promote well-being for all at all ages

SDG 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

SDG 5: Achieve gender equality and empower all women and girls

SDG 6: Ensure availability and sustainable management of water and sanitation for all

SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all

SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

SDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

SDG 10: Reduce inequality within and among countries

SDG 11: Make cities and human settlements inclusive, safe, resilient and sustainable

SDG 12: Ensure sustainable consumption and production patterns

SDG 13: Take urgent action to combat climate change and its impacts

SDG 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development

SDG 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

SDG 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

SDG 17: Strengthen the means of implementation and revitalize the global partnership for sustainable development

Opportunities and responsibilities that one or more SDGs represent to our business

Where the company’s priorities lie with respect to one or more SDGs

Goals and indicators set by our company with respect to one or more SDGs

How one or more SDGs are integrated into the company’s business model

The (expected) outcomes and impact of your company’s activities related to the SDGs

If the companies' activities related to the SDGs are undertaken in collaboration with other stakeholders

Other established or emerging best practices

We map our material issues against SDGs. All 36 CSV commitments and 3 global initiatives: Nestlé for Healthier Kids, Nestlé Needs YOUth and Caring for Water support the SDGs. Nestlé is founding patron of the UNGC Action Platform for advancing SDG 16.