CREATING SHARED VALUE REPORT 2016
Nestlé in Society Creating Shared Value Report of Nestlé Philippines
Nestlé MissionNestlé aims to continuously nurture future generations of Filipino families and to contribute to the development of a strong and prosperous nation.
Nestlé creates shared value by improving consumers’ understanding of nutrition, creating access to nutritious food, encouraging healthy habits, and promoting an active lifestyle. The Company also advocates sustainable water consumption, encourages environmental sustainability, and supports farmers in rural areas in the production of raw materials and encourages livelihood across the nation.
Nestlé’s Key CSV Areas
WaterNutrition
Rural Development
Nestlé CSV Report 2016
32
Nestlé Philippines, Inc. (NPI) is a leading food and beverage company that touches Filipino consumers throughout the different stages of their lives. With over 105 years of operational experience in the country, its products continue to be household staples from childhood to golden age, defining a tradition of quality and excellence.
Nestlé’s product range includes coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream, fresh dairy, breakfast cereals, confectionery, and pet care. Committed to Creating Shared Value for its shareholders and society, Nestlé adopts a corporate strategy rooted in long-term prosperity and mutual benefit for its business units and the communities these serve.
About Nestlé in the Philippines
About Nestlé in the Philippines
105 years of operational experience in the country.
Pulilan, Bulacan
Cagayan De Oro
Tanauan, Batangas
Cabuyao, LagunaLipa, Batangas
Makati City
Nestlé Sites in the PhilippinesG4-3, G4-8
Nestlé CSV Report 2016
54
Our BusinessN
estlé CSV Report 2016Our Business
Fueled by its mission to nurture generations of Filipino families, Nestlé’s history in the Philippines stretches as far back as 1895; however, it took 16 years for Nestlé and Anglo-Swiss Condensed Milk Company to take their roots in the oriental land of Calle Renta in Binondo, Manila.
Economic Value CreationG4-9, G4-EC1, G4-EC9
201620152014
116
Sales Turnover (in billion PHP)
121 126* BusinessWorld Top 100 Corporations in the Philippines
**As of taxable year 2014
Top 5 Philippine
Companies*
3rd Top tax payer in the Philippines**
Top 6 Market in the Nestlé
world
2016
1960 (NutriPro) was
formed – A
partnership
between Nestlé
S.A. and San Miguel
Corporation
1962
First Nestlé Factory
in Alabang
1964
MILO introduced in
the Philippines
1976
Cabuyao Factory
2007
Nestlé Business
Services
2011
100 years in the
Philippines
2012
Tanauan Factory
and Wyeth
Acquisition
2017
Malt Plant
1961
Nestlé and Anglo-
Swiss Condensed Milk
Company
First sales office in
Calle Renta, Binondo
G4-17
G4-17
Nestlé CSV Report 2016
76
Our Business
in 2016 amounted to Php 17.0 billion, a 16% increase over 2015’s Php 14.7 billion. This increase in payments to government is due to increase in sales and profit. Payments to employees Nestlé’s payments for salaries, wages, bonuses and benefits for both factories and head office was Php 5.2 billion in 2015 and Php 5.0 billion in 2016.
Nestlé delivers positive economic impact to society through its disbursements to key stakeholders. Below are the highlights of the Company’s economic value creation from 2015 to 2016: Economic value generated Nestlé’s total revenue increased by 3% from PHP 123.1 billion in 2015 to PHP 126.7 in 2016 driven primarily by sales growth volume. Nestlé
is one of the top five companies in the Philippines according to BusinessWorld and is the sixth biggest market of Nestlé globally. Payments to suppliers Raw materials and cost of production are the biggest components of the costs: 71.9% in 2015 and 68.1% in 2016. In addition, significant payments are made for advertising, promotions, and
distribution. Expenditures on raw materials decreased by 2.21% while expenditures in Advertising and Promotions increased by 6.92% due to support of new product launches. Payments to capital providers This refers to dividends paid and interest payments for deposits and borrowings.
The total dividends increased by 25% from 2015 to 2016, from Php 14.6 billion to Php 18.2 billion. Payments to governments Nestlé is one of the largest taxpayers in the country. The amounts paid are primarily for customs duties, income taxes, local business taxes, taxes paid on royalties and dividends, and includes net VAT payments. Taxes
Payments to communities Nestlé spent Php 188 million on donations, sponsorships, and CSV projects in 2016. This is more than double the amount spent in 2015. The most significant spend is on the NESCAFÉ Plan which helps coffee farmers by making available superior quality plantlets including technical assistance by Nestlé’s team of agronomists.
in thousand
pesos
%
a. Payments to
suppliers
88, 537, 060 71.9%
b. Payments to
employees
5, 180, 581 4.2%
c. Payments to
providers of capital
14, 619, 634 11.9%
d. Payments to
governments
14, 705, 429 11.9%
e. Payments to
communities*
74, 238 0.1 %
2016 126,730,968
ab
c
d
e
in thousand
pesos
%
a. Payments to
suppliers
86, 268, 473 68.1%
b. Payments to
employees
5, 013, 404 4.0%
c. Payments to
providers of capital
18, 248, 484 14.4%
d. Payments to
governments
17, 012, 528 13.4%
e. Payments to
communities*
188, 079 0.1 %
2015 123,116,942
ab
c
d
e
Economic Value CreationG4-EC1
*Some programs that adresses societal needs are not captured under payments
to communities but are part of operational expenses as programs are embedded
in business operations.
Nestlé CSV Report 2016
98
Nestlé ProductsBeverages MILO MILO Nutri Up NESTEA NESFRUTA
Breakfast Cereals FITNESSE Cereal FITNESSE Cereal Bar CORN FLAKES KOKO KRUNCH HONEY GOLD COOKIE CRISP HONEY STARS MILO CEREAL Coffee & Creamer Creations NESCAFÉ CLASSIC NESCAFÉ 3-in-1 NESCAFÉ DOLCE GUSTO NESCAFÉ DECAF NESCAFÉ GOLD NESTLÉ COFFEE-MATE NESCAFÉ Coco Mocha NESCAFÉ Berry Mocha NESCAFÉ Blend and Brew Confectionery CRUNCH KITKAT FOX’S POLO
Nestlé Products
Food NESTLÉ All-Purpose Cream MAGGI Soya Sauce Maggi Magic Isda MAGGI MAGIC SARAP MAGGI MAGIC SINIGANG MAGGI Savor MAGGI Oyster Sauce Dairy Health and Nutrition Solutions BEAR BRAND Powdered Milk Drink BEAR BRAND Busog Lusog BEAR BRAND Adult Plus BEAR BRAND Junior NIDO Fortigrow NIDO Forti-Choco NIDO Junior NIDO 3+ Protectus NIDO 5+ Protectus Infant Nutrition NESTLÉ CERELAC NESTLÉ CERELAC Nutri Puffs GERBER GERBER Apple Juice NAN OptiPro NAN Kid OptiPro NAN OptiPro HW NESTOGEN NESTOGEN Classic NESTOKID Four PreNAN NAN AL 110 NAN SENSITIVE
Healthcare Nutrition NUTREN ISOCAL PEPTAMEN ORAL IMPACT RESOURCE THICKEN UP Liquid Beverages NESTLÉ Fresh Milk NESTLÉ Low Fat Milk NESTLÉ Non Fat Milk NESTLÉ CHUCKIE NESTLÉ MILO RTD NESCAFÉ RTD BEAR BRAND Sterilized Fresh Dairy NESTLÉ Whipping Cream NESTLÉ Sour Cream NESTLÉ Yogurt Jelly NESTLÉ Yogurt NESTLÉ Yogurt 0% Fat NESTLÉ ACTI-V NESTLÉ Greek Yogurt Plain NESTLÉ Yogurt Drink Ice Cream NESTLÉ Kimy NESTLÉ Kitkat NESTLÉ Drumstick NESTLÉ Temptations NESTLÉ Twin Pops NESTLÉ Sorbetes
G4-4
10
Message from the Chairman and CEO
Dear friends, In 2016, Nestlé S.A. marked its 150th birthday. We celebrated this year, not only by reflecting on our past, but also by reaffirming our commitment to help build a better future. We express this in our Nestlé Purpose:
Enhancing quality of life and contributing to a healthier future.
Just as Henri Nestlé did 150 years ago with his life-saving cereal based milk food for babies called Farine-Lactee Nestlé, we reaffirm our commitment to positively impact the lives of individuals and families we serve, the communities we work with, and the planet we all share.
Here in the Philippines, Nestlé has been a kasambuhay of the Filipino people over a hundred years now. We have witnessed the triumphs, struggles and indomitable resilience of the Filipino people. Through good times and challenging times, we remain committed to growing with the Philippines through business strategies that embrace inclusive growth and create shared value.
11
Chairman and CEO Jacques Reber with coffee farmers
G4-1
Nestlé CSV Report 2016
1312
This report is a summary of our efforts over the last three years to contribute positively to Philippine society. In this report you will find many stories such as:
• How our agricultural interventions for coffee help farmers increase their productivity and income;
• How our employees tirelessly work to provide quality products while minimizing the use of water, reducing emissions, and preserving the environment;
• How we engage with communities and find ways to innovate our products to help solve the country’s malnutrition challenges.
By sharing these stories, we hope to inspire and drive further action, encourage collaboration, find opportunities to scale up initiatives that work, and to seek guidance for initiatives that could be improved even further. Creating shared value is one of the clearest ways that we live the Nestlé purpose,
a purpose that is taken to heart by all our employees across the nation. It is indeed an honor for me to lead this great Company, to see inspired employees, partners, and communities working together towards a common goal to uplift a nation.
I would like to thank my dear Nestlé colleagues, partners and stakeholders. It is with deep gratitude for walking with us on our journey that we present this Nestlé in Society Creating Shared Value Report. Thank you for being by our side and
supporting us through the years and for inspiring me and the Company to continue with the work that we do. It is because of your guidance, insight, and dedication to our values that we have been able to make a difference and continue to do so.
“It is indeed an honor for me to lead this
great Company, to see inspired employees,
partners, and communities working together
towards a common goal to uplift a nation. ” Jacques Reber
13
As you go through this report, you will discover how we continue to strive to introduce, deepen, and expand our positive impact on society, the environment, and our business. This is the story of our journey in Creating Shared Value.
Jacques Reber selfie-ing with the ladies of Cut & Sew
12
Nestlé CSV Report 2016
1514
CREATING SHARED VALUE
Nestlé Mission
About Nestlé Philippines
Message from the Chairman and CEO
GRI Content Index
External Assurance
CONTENTS
NUTRITION
WATER & ENVIRONMENT
RURAL DEVELOPMENT
HELPING SOCIETY
INVESTING IN HUMAN CAPITAL
GOVERNANCE
18
28
56
82
104
112
136
About this Report
The Nestlé Philippines CSV Report presents the Company’s initiatives aimed at making a positive difference in the key areas of Nutrition, Water and Environment, and Rural Development. These are initiatives that the Company calls Creating Shared Value (CSV), a strategy that allows Nestlé to grow its business while contributing to the advancement of the society where it operates.
G4-15
Nestlé CSV Report 2016
1716
UN Sustainable Development Goals and Shared Value Initiative This report provides details about Nestlé’s programs that contribute to the advancement of the 17 United Nations Sustainable Development Goals (UN SDGs) which encompass today’s sustainability challenges such as poverty, health, education, and climate
change, among others. In addition, Nestlé Philippines aligns with that of its parent company, Nestlé S.A., by reporting practices and progress in Creating Shared Value. The summary of the Company’s contributions to the UN SDGs are found on pages 28-29.
Reporting standards and frameworks
Global Reporting Initiative
This report has been prepared ‘in accordance’ to the Core option of the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines. Details of how the Company has applied GRI’s principles and process in the publication of this report are found on pages 152-159.
Reporting period and scope
Assurance
Moreover, this report has successfully completed the GRI Materiality Disclosures Service which verifies that the General Standard Disclosures G4-17 to G4-27 were correctly located in both the GRI Content Index (see pages 162-171) and in the text of this report.
This report features stories on the Company’s three CSV areas of focus as well as performance on the social, environmental, economic, and
governance aspects from January 1, 2014 to December 31, 2016. All information comes from five operational sites across the country.
About this Report
The Company commissioned TÜV Rheinland, a third party organization, to validate the data that we presented in this report. The independent assurance was carried out in accordance to the AA1000 Accountability Principles Standard 2008 on inclusivity, materiality, and responsiveness principles and GRI G4 Guidelines.
During the conduct of the engagement, the representative from TÜV Rheinland had the opportunity to meet senior executives and interview data owners. Pages 160-161 contain the independent assurance statement which outlines TÜV Rheinland’s observations and conclusion.
G4-28
G4-32
G4-33
1918
The Company believes in the immense power of business in paving the way to an inclusive and sustainable world. By embedding Shared Value into everything the Company does, many inclusive business models were born, which not only made Nestlé’s operations more efficient and environmentally sound, but also helped benefit thousands of people with new employment and better nutrition for the nation.
CreatingShared Value
G4-1, G4-12, G4-25
20
CSV in Nestlé’s Value ChainIn every aspect of Nestlé’s business, the Company ensures that there are benefits not only to the Company but to society as well. From sourcing to distribution, the CSV strategy ensures that the Company not only manages its negative impact, but creates positive ones as well.
165% increase in local coffee purchase (2015 vs. 2016) 10, 000 farmers trained per year (average) 21 million pesos worth of purchase orders through Cut & Sew program
Sourcing
4,000 million liters of oil saved 11% GHG intensity reduced from 2010 Over 6% reduction in water intensity (2015 vs. 2016) Zero waste to landfill in all sites achieved in 2016
474 BOWers earning above minimum wage, 2016 Over 23 million students and adults participated in nutrition education and physical activities Over 600,000 marathon runners
Manufacturing Distribution & Marketing
FINISH
SARI-SARI �STORE
SARI-SARI �STORE
SUPERMARKET
SUPERMARKET
CUT & SEW
*Data from 2014 to 2016
G4-25, G4-EC9
G4-25
Nestlé CSV Report 2016
2322 23
What is Creating Shared Value?
Creating Shared Value (CSV) is an approach which optimizes the interdependence between business and society. Through Nestlé’s global CSV business strategy, Nestlé grows its business further to reach new, often underserved markets with products and services which
ameliorate the living standards of the society where it operates. CSV goes much further than one-time donations by creating products, services and systems which will positively benefit society, and also the business for the long term.
Nestlé tackles social issues that intersect with its business, especially in areas where it is best equipped to provide solutions. Nestlé Philippines commits to Creating Shared Value in three distinct areas:
Nutrition
Nestlé aims to improve its consumers’ understanding on nutrition, create access to nutritious food, encourage healthy habits and promote an active lifestyle.
Water and Environment
Nestlé advocates sustainable water consumption and encourages environmental sustainability.
Rural Development
Nestlé supports farmers in rural areas in the production of raw materials and encourages other forms of livehood.
What is Creating Shared Value?
G4-25
G4-25
Nestlé CSV Report 2016
2524 25
To better implement and integrate CSV in every department, the Company formed the CSV Council in 2010 to drive, align and direct all CSV initiatives of Nestlé Philippines. The council also
The CSV Council
designs and monitors projects, partners with private, public and civil organizations, and communicates and promotes its CSV strategy both internally and to the public.
The Company complies with the highest standards in compliance to laws, business principles and codes of conduct. Secondly, Nestlé protects the future by implemementing sustainability measures in all areas of its business, to
make sure that the Company meets the needs of the present without compromising future generations. Lastly, beyond sustainability, Nestlé Creates Shared Value for its shareholders and society by
creating social solutions linked to its core business. Through the key areas of Nutrition, Water and Rural Development, Nestlé Philippines improves lives and grows it business with the future in mind.
CSV
Nutrition, Water, Rural Development
SustainabilityProtect the future
Compliance
Laws, business principles, codes of conduct
“...beyond sustainability, to create value for shareholders and society - integrally linked to our core business...”
“...meet the needs of the present without compromising future generations...”
“...comply with the highest standards...”
What is Creating Shared Value?
Some of the men and women who contribute to the CSV programs of Nestlé Philippines
G4-25 G4-25
Nestlé CSV Report 2016
2726 27
Nestlé Philippines and the SDGs
As a company with a global presence, Nestlé is committed to upholding the Sustainable Development Goals adopted by the United Nations (UN) in 2015. From eliminating hunger through supporting smallholder coffee growers by increasing yields and incomes, to providing decent
employment and economic opportunity through micro-distribution and responsible sourcing initiatives for Nestlé products, the Company is on track to utilize its business infrastructure to achieve inclusive and sustainable growth. Other programs in line with the UN mission focus
on well-being and education, which Nestlé contributes to achieving by working with communities to improve local road safety conditions through awareness, support for public schools and apprenticeship programs in the communities where Nestlé factories are located.
Nestlé Philippines and the SDGs
G4-1, G4-EC8
The overarching goal is to support the continued growth of the Company while also improving environmental performance, minimizing impacts, and embracing stewardship. The Company continues to do this by progressively
reducing Nestlé’s packaging requirements, implementing various recycling initiatives to comply with a “zero waste to landfill commitment,” and engaging consumers and communities through responsible water and solid waste management modules.
The Company is built on the cooperation and industry of a growing transnational community and, most especially, a desire to contribute positively to the development of the countries it operates in.
Nestlé CSV Report 2016
2928 29
Nestlé Philippines and the SDGs
p.58 Rainwater Harvesting p.58 Reuse of Water p.59 Recovery of Water p.59 Reverse Osmosis Technology p.59 Zero Industrial Wastewater Discharge Factories p.60 River and Coastal Cleanup Activities
p.65 Material Efficient Packaging and Waste Recovery p.66 EcodEx p.64 Zero Waste to Landfill p.67 Eco Bricks and Permeable Pavers p.69 Beverage Carton p.68 Upcycling Project p.70 Balik Baterya Program p.78 Greening the Supply Chain
p.124 Employee Diversity and Inclusion
p.30 Women Movers Awards
p.108 Nestlé GK Village
p.80 NESCAFÉ Plan p.90 Project CoFFEE p.92 Cut and Sew p.94 Farmville p.96 Business on Wheels p.110 Investing in Human Capital
p.77
Use of Renewable
Energy in
Lipa Factoryp.30 Reformulation
p.32 Micronutrient Fortification
p.49 MILO Marathon
p.50 MILO Little Olympics
p.51 MILO Sports Clinic
p.53 MILO Champ Moves
p.100 Massage from the Blind p.129 PWD-friendly Workplace
p.132 Reformulation
p.72 Energy Efficiency Program p.77 Use of Renewable Energy
p.80 NESCAFÉ Plan
p.90 Project CoFFEE
p.92 Cut and Sew
p.94 Farmville
p.96 Business on Wheels
p.101 Community Development
Framework
p51 Milo Marathon
p.78 Greening the
Supply Chain
p.105 Safety Skwela
p.106 Bloodletting
p.132 Life Saving Rules
p.64 Zero Waste to Landfill p.65 Material Efficient Packaging and Waste Recovery p.67 Eco Bricks and Permeable Pavers
p.108 Nestlé Good Life Village: Lipa Eco-village
p.134 Governance and Ethical Standards p.124 Employee Diversity and Inclusion
p.142 Membership to associations Partnership with government on various rural development projects
p.36 Nestle Healthy Kids
p.34 Nutrition Education
p.104 Brigada Eskwela
p.60 Water Leadership Award p.61 Project WET- Water Education for Teachers p.78 Greening the Supply Chain
Nutrition is at Nestlé’s core. Nestlé works with various sectors as the Company strives to make a difference in 3 key areas of nutrition. Nestlé provides access to affordable and nutritious food to meet the needs of vulnerable populations. Moreover, Nestlé educates people of all ages on nutrition to encourage healthy habits and promote the merits of a wellness lifestyle. Lastly, the Company provides opportunities for physical activities and sports.
NutritionG4-EC8
Nestlé CSV Report 2016
3332
Access to nutritious food
Reformulation
Sodium, Sugar, Transfat, and Saturated Fat Reduction
The reformulation of Nestlé products forms part of its ongoing efforts to improve nutrition in the country. By reducing sugars, sodium and saturated fat in Nestlé’s food and beverages, and removing all trans fats originating from partially hydrogenated oils (PHOs) through science-based renovation, Nestlé can help improve the health of its consumers and decrease the risks to acquire non-communicable diseases. To assess and improve the nutritional value of Nestlé products, The Company uses the Nestlé Nutritional Profiling
System, which is based on local and international nutrition recommendations including that from World Health Organization. Currently, 86.4% of the Company’s products meet the criteria of Nestlé Nutritional Profiling System. Moreover, all products are compliant with the sodium limits set by Nestlé and all locally produced Nestlé products do not contain PHOs. Nestlé has set goals to reduce sugar, sodium, and saturated fats by 10% in products that do not currently meet the Nestlé Nutritional Foundation (NF) criteria and to remove trans
fats originating from PHOs from all Nestlé food and beverages. Globally in 2016, the Company has reduced added sugar by 8% which is equivalent to 39,000 tons, reduced sodium by 10.5% equivalent to 2,700 tons of salt and a 6.5% reduction for saturated fat which is equivalent to 6,200 tons. In the past 3 years, 27 local products have undergone reformulation for nutrition considerations. A key example of Nestlé’s sugar reduction efforts over the years is through the brand NESTLÉ CHUCKIE, a chocolate milk drink enriched with Calci-N.
Nestlé has consistently reduced the amount of added sugar over time from 16.15 grams (3 teaspoons) per serve in 2005 to now 6.48 grams (1.5 teaspoons) per serve of added sugar in 2016. Some categories have also made great strides in reducing sugar and saturated fat in the Company’s products. The Ice Cream business has reduced sugar by 13% from total volume since 2014.
Good to talkNESTLÉ CONSUMER
SERVICES898-0061
www.nestle.com.phwww.facebook.com
/CHUCKIE.phTOLL FREE NUMBER:
N E S T L É
1-800-100-637853
Good to knowKids’ bones can
only absorb 50-60% of the calcium
taken from food. That’s why
NESTLÉ CHUCKIE®
has CALCI-N®,a natural mineral
concentrate from milk, which helps bones
absorb more calcium to help them
build stronger bones!
Serving size: 180ml
NUTRITION FACTS
No. of Servings per container: 1
per servingAmount % RENI*
EnergyFat
Saturated FatTrans Fat
Dietary FiberSugar
CholesterolSodiumCarbohydrates
ProteinCalciumPhosphorusVitamin AVitamin D
kcalggg
mgmggggg
mgmgIUIU
119 74.412.740.0423.77
112.2414.830.5714.904.98 12
39442424
273.47219.12321.4449.05
* Percent RENI val ues are based on FNRI reference child requirement
of 7-9 years old (RENI 2002).
NUTRITIONAL COMPASS®
®Registered Trademark of Socié té des Pro duits Nestlé S.A.
Ingredients:Water, Milk Powder(Skimmed Milk and Buttermilk), Sugar,
Vegetable Oil (may contain Coconut Oil,
Palm Oil or Palm Kernel Oil), Cocoa Powder,
Milk Fat, Stabilizers (Microcrystalline
Cellulose, Mono- and Di-glycerides, Cellulose
Gum, Carrageenan,Sodium Alginate, Soya
Lecithin), CALCI-N® (Calcium Phosphatefrom Milk), Thickener
(Starch), Nature-Identical and Natural Flavors, Minerals (Disodium
Phosphate, Zinc Sulfate), Sweetener (Sucralose),
Vitamins (Niacin, Vitamin B2, Vitamin B6, Vitamin A,
Vitamin B1, Vitamin E, Vitamin B12,
Pantothenic Acid,Vitamin D,
Folic Acid, Biotin)
Contains food allergen: Milk, Soya
Keep cool and dry.Shake well
and serve chilled.Consume immediately
upon opening.
This milk drinkis not suitable
for infant feedingand is not a
breastmilk substitute.
Manufactured by:Nestlé Philippines Inc.,
Cabuyao, Laguna, Philippines
Under License ofSociété des Produits
Nestlé S.A.,Vevey Switzerland,Trademark Owners.
TM
Each 180mLserving contains
Energy119kcal
7% OF RENI180 ml180 ml
CHOCOLATE MILK DRINKCHOCOLATE MILK DRINKCHOCOLATE MILK DRINKCHOCOLATE MILK DRINKCHOCOLATE MILK DRINK
Good to talkNESTLÉ CONSUMER
SERVICES898-0061
www.nestle.com.phwww.facebook.com
/CHUCKIE.phTOLL FREE NUMBER:
N E S T L É
1-800-100-637853
Good to knowKids’ bones can
only absorb 50-60% of the calcium
taken from food. That’s why
NESTLÉ CHUCKIE®
has CALCI-N®,a natural mineral
concentrate from milk, which helps bones
absorb more calcium to help them
build stronger bones!
Serving size: 180mlNo. of Servings per container: 1
per servingAmount % RENI*
EnergyFat
Saturated FatTrans Fat
Dietary FiberSugar
CholesterolSodiumCarbohydrates
ProteinCalciumPhosphorusVitamin AVitamin D
kcalggg
mgmggggg
mgmgIUIU
119 74.412.740.0423.77
112.2416.900.5714.904.98 12
39442424
273.47219.12321.4449.05
* Percent RENI val ues are based on FNRI reference child requirement
of 7-9 years old (RENI 2002).
NUTRITIONAL COMPASS®
®Registered Trademark of Société des Pro duits Nestlé S.A.
CONSUME BEFORE DATE: / LOT ID:
NUTRITION FACTS
PH43539311/F35P70/011
C M Y K 1685 C 116 C
THIS PRODUCT IS A SOURCE OF:
2005
16.15 g
2016
Added sugar (grams per serving)
6.48 g
The same business has also reduced saturated fat by 13% from total volume since 2014. Coffee has also made progress on sugar, with a reduction of 8% from total volume since 2014. The Company acknowledges that further reduction is needed for saturated fat in coffee mixes and therefore Nestlé is currently working with the global Research and Development team to find
2010
10.4 g
2012
6.96 g
solutions for reformulation. In the last year, Nestlé S.A. has set out new objectives that will help the Company further reduce the amount of sugar, sodium, and saturated fat content in Nestlé food and beverages by 2020. More details about this initiative are available on this site: http://www.nestle.com/csv
Access to Nutritious Food
G4-PR1
Nestlé CSV Report 2016
3534
Access to Nutritious Food
of 10 lack Vitamin C. Nestlé Philippines, cognizant of its role in providing meaningful solutions to meet these nutrition-related challenges, saw the opportunity to improve the nutrition status of consumers by adding micronutrients to food and beverages consumed regularly by vulnerable populations.
These are available in small pack sizes to ensure affordability for those who need it most. A study conducted by the DOST - FNRI, found that BEAR BRAND fortified with zinc, iron, and Vitamin C can help fight micronutrient deficiency in growing children. School-age children who took part in
the study who had 2 glasses of fortified milk for 120 days had increased levels of zinc and hemoglobin as a result of increased iron in their body. Zinc contributes to normal growth and function of the immune system. Increased hemoglobin ensures healthy blood critical for normal oxygen transport in the body, resulting to reduction in
Good to talkNESTLÉ CONSUMER
SERVICES898-0061
www.nestle.com.phwww.facebook.com
/CHUCKIE.phTOLL FREE NUMBER:
N E S T L É
1-800-100-637853
Good to knowKids’ bones can
only absorb 50-60% of the calcium
taken from food. That’s why
NESTLÉ CHUCKIE®
has CALCI-N®,a natural mineral
concentrate from milk, which helps bones
absorb more calcium to help them
build stronger bones!
Serving size: 180ml
NUTRITION FACTS
No. of Servings per container: 1
per servingAmount % RENI*
EnergyFat
Saturated FatTrans Fat
Dietary FiberSugar
CholesterolSodiumCarbohydrates
ProteinCalciumPhosphorusVitamin AVitamin D
kcalggg
mgmggggg
mgmgIUIU
119 74.412.740.0423.77
112.2414.830.5714.904.98 12
39442424
273.47219.12321.4449.05
* Percent RENI val ues are based on FNRI reference child requirement
of 7-9 years old (RENI 2002).
NUTRITIONAL COMPASS®
®Registered Trademark of Socié té des Pro duits Nestlé S.A.
Ingredients:Water, Milk Powder(Skimmed Milk and Buttermilk), Sugar,
Vegetable Oil (may contain Coconut Oil,
Palm Oil or Palm Kernel Oil), Cocoa Powder,
Milk Fat, Stabilizers (Microcrystalline
Cellulose, Mono- and Di-glycerides, Cellulose
Gum, Carrageenan,Sodium Alginate, Soya
Lecithin), CALCI-N® (Calcium Phosphatefrom Milk), Thickener
(Starch), Nature-Identical and Natural Flavors, Minerals (Disodium
Phosphate, Zinc Sulfate), Sweetener (Sucralose),
Vitamins (Niacin, Vitamin B2, Vitamin B6, Vitamin A,
Vitamin B1, Vitamin E, Vitamin B12,
Pantothenic Acid,Vitamin D,
Folic Acid, Biotin)
Contains food allergen: Milk, Soya
Keep cool and dry.Shake well
and serve chilled.Consume immediately
upon opening.
This milk drinkis not suitable
for infant feedingand is not a
breastmilk substitute.
Manufactured by:Nestlé Philippines Inc.,
Cabuyao, Laguna, Philippines
Under License ofSociété des Produits
Nestlé S.A.,Vevey Switzerland,Trademark Owners.
TM
Each 180mLserving contains
Energy119kcal
7% OF RENI180 ml180 ml
CHOCOLATE MILK DRINKCHOCOLATE MILK DRINKCHOCOLATE MILK DRINKCHOCOLATE MILK DRINKCHOCOLATE MILK DRINK
Good to talkNESTLÉ CONSUMER
SERVICES898-0061
www.nestle.com.phwww.facebook.com
/CHUCKIE.phTOLL FREE NUMBER:
N E S T L É
1-800-100-637853
Good to knowKids’ bones can
only absorb 50-60% of the calcium
taken from food. That’s why
NESTLÉ CHUCKIE®
has CALCI-N®,a natural mineral
concentrate from milk, which helps bones
absorb more calcium to help them
build stronger bones!
Serving size: 180mlNo. of Servings per container: 1
per servingAmount % RENI*
EnergyFat
Saturated FatTrans Fat
Dietary FiberSugar
CholesterolSodiumCarbohydrates
ProteinCalciumPhosphorusVitamin AVitamin D
kcalggg
mgmggggg
mgmgIUIU
119 74.412.740.0423.77
112.2416.900.5714.904.98 12
39442424
273.47219.12321.4449.05
* Percent RENI val ues are based on FNRI reference child requirement
of 7-9 years old (RENI 2002).
NUTRITIONAL COMPASS®
®Registered Trademark of Société des Pro duits Nestlé S.A.
CONSUME BEFORE DATE: / LOT ID:
NUTRITION FACTS
PH43539311/F35P70/011
C M Y K 1685 C 116 C
THIS PRODUCT IS A SOURCE OF:
Micronutrient deficiency is a pressing national health issue, with many Filipinos unable to meet minimum nutrient requirements. According to the 2013 National Nutrition Survey of Food and Nutrition Research Institute of the Department of Science and Technology (DOST-FNRI), 4 out of 5 kids lack Iron, 3 out of 10 lack Zinc and 7 out
Micronutrient Fortification
®
®
FORTIFIED POWDEREDMILK DRINK
160g
Each 29g servingcontainsENERGY
10% of RENIkcal136
®
BR
AIN SUPPORT
NUTRIENTSBR
AIN SUPPORT
NUTRIENTS
NU
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BUI L
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DHA & Selenium!with mind and body nutrients* like
100096121
160gNET WEIGHT
FORTIFIED POWDERED MILK DRINK®4 800 361 392907
Good Food, Good Life®
NUTRITIONAL COMPASS ®® Reg. Trademark of Société des
Produits Nestlé S.A.
Good QuestionHow do I help ensure that my child
achieves proper development?
Good To KnowNIDO® FORTIGROW® is fortified with
vitamins and minerals that can help your child’s proper development so he can be mind and body ready for school!
These nutrients help contribute to the normal physical and mental development
of your school-age child while keeping his immune system strong.
INGREDIENTS: Milk Powder (may contain Skimmed Milk, Whole Milk Powder or Buttermilk, Lactose), Milkfat, Glucose Syrup, Sugar, Minerals (Calcium Carbonate, Calcium Citrate, Ferrous Sulphate, Zinc Sulphate, Sodium Selenate), Emulsifier (Soya Lecithin), Maltodextrin, Vitamins (Vitamin C, E, Niacin, B6, B1, B2, A, Folic Acid, Biotin, D, B12), Fish Oil, Taurine, Natural Flavor
Contains Food Allergen: Milk and Milk Products (includes Lactose), Soya Lecithin, Fish Oil
Manufactured by:NESTLÉ PHILIPPINES, INC.Cabuyao, Laguna, Philippines. Under License of Société des Produits Nestlé S.A. Vevey, Switzerland, Trademark Owners.
*Percent RENI values are based on FNRI reference child requirement of 4 - 6 years old (RENI 2002).
PROVINCIALTOLL FREE No. : NESTLE1-800-100-637853
NESTLE
NESTLÉ CONSUMER SERVICESMetro Manila : 898-0061
www.nestle.com.ph
Good To Talk
Good To RememberFor overall development and school readiness
that includes physical growth, brain developmentand a strong immune system, give your child
the proper nutrition everyday!
Per serving(29g + 180ml
water)% RENI*Per 100g
powderNutrition Facts
Serving Size: 29g No. of Servings per Container (or Pack): 5-6
Energy kcal 469 136 10%Fat g 20.0 5.80 Saturated Fat g 12.4 3.60 Trans Fat g 1.40 0.41Cholesterol mg 67.0 19.4Sodium mg 240 69.6Carbohydrates g 54.0 15.7 Dietary Fiber g 0 0 Sugar g 40.0 11.6Protein g 18.0 5.22 14%Vitamins and Minerals:Calcium mg 940 273 49%Iron mg 10.0 2.90 32% Zinc mg 7.00 2.03 37%Selenium mcg 15.0 4.35 20%Vitamin A IU 1466 425 mcg RE 440 128 32%Vitamin D IU 260 75.4 mcg 6.50 1.89 37%Vitamin E IU 5.25 1.52 mg TE 3.50 1.02 17%Vitamin C mg 34.5 10.0 33%Vitamin B1 mg 0.70 0.20 33%Vitamin B2 mg 1.40 0.41 68%Vitamin B6 mg 0.80 0.23 38%Niacin B3 mg 5.30 1.54 22%Biotin mcg 40.0 11.6Folic Acid mcg 150 43.5 21%Vitamin B12 mcg 1.30 0.38 31%Choline mg 70.0 20.3 Taurine mg 40.0 11.6 DHA mg 10 .0 2.90
Contribute to your child’s normal brain function that can
help him be mind ready for his learning activities. NIDO® FORTIGROW® contains essential Brain Support Nutrients like DHA, Iron and B Vitamins such as B1, B6 and B12.
BRAINSUPPOR
T
NUTRIENTS
Help maintain the proper functioning of your child’s
immune system to help him be body ready. NIDO® FORTIGROW® is a source of Protection Nutrients like Vitamin A, Zinc, Vitamin C and Selenium.
PROTECTION
NUTRIENTS
Support your child’s normal growth to help him be body ready for school
activities. NIDO® FORTIGROW® is a source of Growth Building Nutrients like Protein, Calcium and Vitamin D.
GROWTHBUILDER
S
*NIDO® FORTIGROW® is forti�edwith vitamins and minerals
for normal growth of children.It contains the 3D NUTRITION SYSTEM®
which is a combination of the followingmind and body nutrients that helps
your child be ready for school:
®
20QXVZ001
Just add 3 heaping tablespoons of powder to 1 glassof safe drinking water and stir.
How To Prepare:
NIDO® FORTIGROW®
Forti�ed Powdered Milk Drinkis not suitable for infant feeding and is not a breastmilk substitute.
Recommended servings:2 glasses per day.
®
160gNET WEIGHT
FORTIFIED POWDERED MILK DRINK
USE-BY DATE : LOT ID:
12mm 125mm 45mm
351.5mm
125mm 44.5mm
25.5mm
176mm
242mm
25.5mm
35mm
31mm
28.5
mm
PH43759076/F05P30/011
NIDO Fortigrow 160g box cyan magenta yellow black
PANTONE357
PANTONE108
Iron Zinc
Vitamin A
Iron Vitamin A Iodine
2015
18.8 billion
2016
Servings of fortified product (fortified with at least one of the following or a combination of the following: Vitamin A, Iron, Zinc and Iodine)
2014
22 billion16.96 billion
Iron Zinc
Vitamin A tiredness and fatigue. Through various Nestlé products, the Company has distributed over 16.96 billion servings of fortified products (Fortified with at least one of the following or a combination of the following: Vitamin A, Iron, Zinc and Iodine) in 2014, 18.8 billion in 2015 and 22 billion in 2016.
Nestlé CSV Report 2016
3736
Nutrition EducationGDA In its continued effort to deliver more transparent nutritional information to consumers, Nestlé voluntarily adopts GDA (Guideline Daily Amount) on Nestlé products*. The GDA based labels on front of pack are used to inform consumers about the nutritional content of the product, which makes it
Product Labelling
*Products out of scope of GDA include pure soluble coffee, savor, food service products and food service ice cream.
easier for consumers to see on shelf. In 2014, 85% of adults’ products and 86% of children’s products had GDA labels. In 2015, this jumped up to 98% of adults’ and 99.5% of children’s products with GDA labels. In 2016, 100% of adults’ products and 99.9% of children’s products had GDA labels.
Nutritional Compass On top of the Nutrition Facts table, at the Back of Pack (BOP), products also have the Nestlé NUTRITIONAL COMPASS®. It is an illustrative and easy-to-understand presentation of the product contents, highlighting its nutritional values and the benefits it offers to consumers, contact details and additional lifestyle and nutrition information. The NUTRITIONAL COMPASS® allows consumers to understand and appreciate products for its nutritional content and to inculcate in them the importance of reading nutrition labels.
Nutrition Edication
®
®
FORTIFIED POWDEREDMILK DRINK
160g
Each 29g servingcontainsENERGY
10% of RENIkcal136
®
BR
AIN SUPPORT
NUTRIENTSBR
AIN SUPPORT
NUTRIENTS
NU
TRIEN
TS
PR
OTEC
T ION
NU
TRIEN
TS
PR
OTEC
T ION BUI L
DER
S
G ROW
TH
BUI L
DER
S
G ROW
TH
DHA & Selenium!with mind and body nutrients* like
100096121
160gNET WEIGHT
FORTIFIED POWDERED MILK DRINK®4 800 361 392907
Good Food, Good Life®
NUTRITIONAL COMPASS ®® Reg. Trademark of Société des
Produits Nestlé S.A.
Good QuestionHow do I help ensure that my child
achieves proper development?
Good To KnowNIDO® FORTIGROW® is fortified with
vitamins and minerals that can help your child’s proper development so he can be mind and body ready for school!
These nutrients help contribute to the normal physical and mental development
of your school-age child while keeping his immune system strong.
INGREDIENTS: Milk Powder (may contain Skimmed Milk, Whole Milk Powder or Buttermilk, Lactose), Milkfat, Glucose Syrup, Sugar, Minerals (Calcium Carbonate, Calcium Citrate, Ferrous Sulphate, Zinc Sulphate, Sodium Selenate), Emulsifier (Soya Lecithin), Maltodextrin, Vitamins (Vitamin C, E, Niacin, B6, B1, B2, A, Folic Acid, Biotin, D, B12), Fish Oil, Taurine, Natural Flavor
Contains Food Allergen: Milk and Milk Products (includes Lactose), Soya Lecithin, Fish Oil
Manufactured by:NESTLÉ PHILIPPINES, INC.Cabuyao, Laguna, Philippines. Under License of Société des Produits Nestlé S.A. Vevey, Switzerland, Trademark Owners.
*Percent RENI values are based on FNRI reference child requirement of 4 - 6 years old (RENI 2002).
PROVINCIALTOLL FREE No. : NESTLE1-800-100-637853
NESTLE
NESTLÉ CONSUMER SERVICESMetro Manila : 898-0061
www.nestle.com.ph
Good To Talk
Good To RememberFor overall development and school readiness
that includes physical growth, brain developmentand a strong immune system, give your child
the proper nutrition everyday!
Per serving(29g + 180ml
water)% RENI*Per 100g
powderNutrition Facts
Serving Size: 29g No. of Servings per Container (or Pack): 5-6
Energy kcal 469 136 10%Fat g 20.0 5.80 Saturated Fat g 12.4 3.60 Trans Fat g 1.40 0.41Cholesterol mg 67.0 19.4Sodium mg 240 69.6Carbohydrates g 54.0 15.7 Dietary Fiber g 0 0 Sugar g 40.0 11.6Protein g 18.0 5.22 14%Vitamins and Minerals:Calcium mg 940 273 49%Iron mg 10.0 2.90 32% Zinc mg 7.00 2.03 37%Selenium mcg 15.0 4.35 20%Vitamin A IU 1466 425 mcg RE 440 128 32%Vitamin D IU 260 75.4 mcg 6.50 1.89 37%Vitamin E IU 5.25 1.52 mg TE 3.50 1.02 17%Vitamin C mg 34.5 10.0 33%Vitamin B1 mg 0.70 0.20 33%Vitamin B2 mg 1.40 0.41 68%Vitamin B6 mg 0.80 0.23 38%Niacin B3 mg 5.30 1.54 22%Biotin mcg 40.0 11.6Folic Acid mcg 150 43.5 21%Vitamin B12 mcg 1.30 0.38 31%Choline mg 70.0 20.3 Taurine mg 40.0 11.6 DHA mg 10 .0 2.90
Contribute to your child’s normal brain function that can
help him be mind ready for his learning activities. NIDO® FORTIGROW® contains essential Brain Support Nutrients like DHA, Iron and B Vitamins such as B1, B6 and B12.
BRAINSUPPOR
T
NUTRIENTS
Help maintain the proper functioning of your child’s
immune system to help him be body ready. NIDO® FORTIGROW® is a source of Protection Nutrients like Vitamin A, Zinc, Vitamin C and Selenium.
PROTECTION
NUTRIENTS
Support your child’s normal growth to help him be body ready for school
activities. NIDO® FORTIGROW® is a source of Growth Building Nutrients like Protein, Calcium and Vitamin D.
GROWTHBUILDER
S
*NIDO® FORTIGROW® is forti�edwith vitamins and minerals
for normal growth of children.It contains the 3D NUTRITION SYSTEM®
which is a combination of the followingmind and body nutrients that helps
your child be ready for school:
®
20QXVZ001
Just add 3 heaping tablespoons of powder to 1 glassof safe drinking water and stir.
How To Prepare:
NIDO® FORTIGROW®
Forti�ed Powdered Milk Drinkis not suitable for infant feeding and is not a breastmilk substitute.
Recommended servings:2 glasses per day.
®
160gNET WEIGHT
FORTIFIED POWDERED MILK DRINK
USE-BY DATE : LOT ID:
12mm 125mm 45mm
351.5mm
125mm 44.5mm
25.5mm
176mm
242mm
25.5mm
35mm
31mm
28.5
mm
PH43759076/F05P30/011
NIDO Fortigrow 160g box cyan magenta yellow black
PANTONE357
PANTONE108
Portion Guidance Nestlé also promotes healthy portion consumption through the Portion Guidance Program. This program guides consumers to consume healthy portions through recommending quantity and frequency. 100%
of adult products and 99.9% of child products have GDA labels
Using illustrations to show the right portions for consumption on back of pack
GDA labelling
®
®
FORTIFIED POWDEREDMILK DRINK
160g
Each 29g servingcontainsENERGY
10% of RENIkcal136
®
BR
AIN SUPPORT
NUTRIENTSBR
AIN SUPPORT
NUTRIENTS
NU
TRIEN
TS
PR
OTEC
T ION
NU
TRIEN
TS
PR
OTEC
T ION BUI L
DER
S
G R OW
TH
BUI L
DER
S
G R OW
TH
DHA & Selenium!with mind and body nutrients* like
100096121
160gNET WEIGHT
FORTIFIED POWDERED MILK DRINK®4 800 361 392907
Good Food, Good Life®
NUTRITIONAL COMPASS ®® Reg. Trademark of Société des
Produits Nestlé S.A.
Good QuestionHow do I help ensure that my child
achieves proper development?
Good To KnowNIDO® FORTIGROW® is fortified with
vitamins and minerals that can help your child’s proper development so he can be mind and body ready for school!
These nutrients help contribute to the normal physical and mental development
of your school-age child while keeping his immune system strong.
INGREDIENTS: Milk Powder (may contain Skimmed Milk, Whole Milk Powder or Buttermilk, Lactose), Milkfat, Glucose Syrup, Sugar, Minerals (Calcium Carbonate, Calcium Citrate, Ferrous Sulphate, Zinc Sulphate, Sodium Selenate), Emulsifier (Soya Lecithin), Maltodextrin, Vitamins (Vitamin C, E, Niacin, B6, B1, B2, A, Folic Acid, Biotin, D, B12), Fish Oil, Taurine, Natural Flavor
Contains Food Allergen: Milk and Milk Products (includes Lactose), Soya Lecithin, Fish Oil
Manufactured by:NESTLÉ PHILIPPINES, INC.Cabuyao, Laguna, Philippines. Under License of Société des Produits Nestlé S.A. Vevey, Switzerland, Trademark Owners.
*Percent RENI values are based on FNRI reference child requirement of 4 - 6 years old (RENI 2002).
PROVINCIALTOLL FREE No. : NESTLE1-800-100-637853
NESTLE
NESTLÉ CONSUMER SERVICESMetro Manila : 898-0061
www.nestle.com.ph
Good To Talk
Good To RememberFor overall development and school readiness
that includes physical growth, brain developmentand a strong immune system, give your child
the proper nutrition everyday!
Per serving(29g + 180ml
water)% RENI*Per 100g
powderNutrition Facts
Serving Size: 29g No. of Servings per Container (or Pack): 5-6
Energy kcal 469 136 10%Fat g 20.0 5.80 Saturated Fat g 12.4 3.60 Trans Fat g 1.40 0.41Cholesterol mg 67.0 19.4Sodium mg 240 69.6Carbohydrates g 54.0 15.7 Dietary Fiber g 0 0 Sugar g 40.0 11.6Protein g 18.0 5.22 14%Vitamins and Minerals:Calcium mg 940 273 49%Iron mg 10.0 2.90 32% Zinc mg 7.00 2.03 37%Selenium mcg 15.0 4.35 20%Vitamin A IU 1466 425 mcg RE 440 128 32%Vitamin D IU 260 75.4 mcg 6.50 1.89 37%Vitamin E IU 5.25 1.52 mg TE 3.50 1.02 17%Vitamin C mg 34.5 10.0 33%Vitamin B1 mg 0.70 0.20 33%Vitamin B2 mg 1.40 0.41 68%Vitamin B6 mg 0.80 0.23 38%Niacin B3 mg 5.30 1.54 22%Biotin mcg 40.0 11.6Folic Acid mcg 150 43.5 21%Vitamin B12 mcg 1.30 0.38 31%Choline mg 70.0 20.3 Taurine mg 40.0 11.6 DHA mg 10 .0 2.90
Contribute to your child’s normal brain function that can
help him be mind ready for his learning activities. NIDO® FORTIGROW® contains essential Brain Support Nutrients like DHA, Iron and B Vitamins such as B1, B6 and B12.
BRAINSUPPOR
T
NUTRIENTS
Help maintain the proper functioning of your child’s
immune system to help him be body ready. NIDO® FORTIGROW® is a source of Protection Nutrients like Vitamin A, Zinc, Vitamin C and Selenium.
PROTECTION
NUTRIENTS
Support your child’s normal growth to help him be body ready for school
activities. NIDO® FORTIGROW® is a source of Growth Building Nutrients like Protein, Calcium and Vitamin D.
GROWTHBUILDER
S
*NIDO® FORTIGROW® is forti�edwith vitamins and minerals
for normal growth of children.It contains the 3D NUTRITION SYSTEM®
which is a combination of the followingmind and body nutrients that helps
your child be ready for school:
®
20QXVZ001
Just add 3 heaping tablespoons of powder to 1 glassof safe drinking water and stir.
How To Prepare:
NIDO® FORTIGROW®
Forti�ed Powdered Milk Drinkis not suitable for infant feeding and is not a breastmilk substitute.
Recommended servings:2 glasses per day.
®
160gNET WEIGHT
FORTIFIED POWDERED MILK DRINK
USE-BY DATE : LOT ID:
12mm 125mm 45mm
351.5mm
125mm 44.5mm
25.5mm
176mm
242mm
25.5mm
35mm
31mm
28.5
mm
PH43759076/F05P30/011
NIDO Fortigrow 160g box cyan magenta yellow black
PANTONE357
PANTONE108
Additional information on back of pack
Portion guidance is facilitated through product form, packaging design, and illustrations. It is also taught through recipes in websites and nutrition education programs.
G4-PR3
Nestlé CSV Report 2016
3938
Nestlé Healthy Kids is an unbranded program that has been in place since 2012. It teaches children in schools the value of healthy eating habits, balanced and nutritious meals, physical activity, food safety, and understanding food labels. The program is strategically located in communities close to Nestlé’s operations. The Nestlé Healthy Kids program enables teachers to use interactive methods, such as games and role-playing to teach nutrition education to Grade 4 students aged 9-10 across the nation. The teachers undergo 2 days of training to learn how to deliver the lessons.
Nestlé Healthy Kids
Nutrition Education
Over the course of a quarter, students learn 10 unbranded interactive lessons:
Malu Malunggay
Glow Foods
NikNok Manok
Grow Foods
Kornik
Go Foods
Characters created to educate students on three food groups
• Go, Grow, and Glow • Go foods • Grow foods • Glow foods • A Balanced Meal • Healthy Breakfast
• Healthy Baon/ Healthy School Snack • Food Safety Habits • Good Nutritional Habits • Reading Labels
Lesson plan
Nestlé CSV Report 2016
4140
2014 2015 2016
24 403
27
51
1, 265
1, 145
743
2, 279
2, 267
6
13
16
Teachers Parents Kids Schools
Nutrition Education
These modules are taught through visual aids that are fun and colorful, and are available in tarpaulin format. These visual aids are made out of strong material so that teachers can reuse these visual aids every year. On top of the nutrition education sessions, two sessions are also dedicated to parents and canteen personnel in order to teach them the importance of promoting nutrition education at home and in school.
A Department of Science and Technology- Food and Nutrition Research Institute study was conducted to measure the effectiveness of the program in enhancing nutrition knowledge, attitude, and behavior. To ensure access to healthy food in school, the program also provides teachers with a school garden manual, training modules and seedlings to start their own school garden. Produce from the gardens are then used in the school feeding program.
Student taught how to read product labels
Interactive nutrition education session
Total 102 2, 813 5, 289Students harvest from their school garden
Nestlé CSV Report 2016
4342
Laki sa Tibay Campaign
In order to increase awareness on micronutrient deficiency, BEAR BRAND rolled out the Laki sa Tibay, formerly Laki sa Gatas campaign, which goes to public schools to instill in parents, teachers and school children the importance of proper nutrition to enable children to reach their ambitions.
Laki sa Tibay underlines that with the right lifestyle and proper nutrition, Filipino children will have strength both in mind and body to overcome life’s biggest challenges. Since 2014, the campaign has reached 3,909 public schools, training 746,070
Nutrition Education
3, 909 public schools reached
746, 070 school children trained
759, 843 parents trained
58, 434 teachers trained
school children, 759,843 parents, and 58,434 public school teachers with the knowledge and tools to achieve proper nutrition both in school and at home.
Nestlé CSV Report 2016
4544
201620152014
2, 150 3, 884 10, 821Schools
4 7 4Regions
Nutrition Education
Nutrition modules are embedded in the Music Arts Physical Education and Health (MAPEH) classes in coordination with the Department of Education. In 2016, the program reached almost 50% of the total public high schools and grade schools nationwide.
Students (GS Students) 0 0 4.68 M
Total 2.4 M 3.3 M 6.94 M
The Wellness Campus program is an unbranded program geared towards educating public school students on how to live a healthy life by choosing nutritious food and drink options and engaging in physical activity.
Wellness Campus
Students (HS Students) 2.4 M 3.3 M 2.26 M
Students engage in physical exercise
Students learning about a balanced meal
Nestlé CSV Report 2016
4746
Sarap SustanyaN
utrition Education
MAGGI’s Sarap Sustansya brings education on proper nutrition to communities across the country. Starting in 2014, MAGGI visited barangays (communities) to train community leaders on how to prepare nutritious food at the right portions. The five-day program teaches participants about proper nutrition, food safety, and cooking methods. MAGGI transforms them to be Taste
and Balance champions through extensive training on culinary techniques and nutrition know-how so they will be enabled to delight their families with tasty and nutritious meals everyday. The program was launched in 2014 with 63 participants in 2 barangays. In 2015, this expanded to 4 barangays with 627 participants. The program expanded
Wellness in Trade
Nestlé deploys registered nutritionists nationwide to supermarkets and groceries, engaging shoppers and consumers and teaching them about health and wellness. Nutrition consultation is free and nutritionists provide nutrition assessment (Body
Mass Index and Wellness Plate Assessment) and personalized nutrition advice, based on the shoppers’ nutrition status. In the last three years, the program has reached nearly 2.5 million consumers in 1,867 stores.
2. 5 million consumers participated in free nutrition consultation
Consumers measuring their body fat Community leaders learning how to cook healthy food
3, 825 people trained*
78 barangays*
brgy
*In the last three years
Nestlé CSV Report 2016
4948
BEAR BRAND Micronutrient Deficiency Campaign
To raise awareness about micronutrient deficiency or hidden hunger, BEAR BRAND created an Edu-tainment (Education + Entertainment) Campaign, which has been helping mothers understand how micronutrient deficiency can affect their children.
In a research study conducted by Millward Brown, it was found that before the campaign was launched, only 2 out of 10 mothers knew what micronutrient deficiency was. After the campaign, the results jumped to 7 out of 10 mothers who now understand the definition of micronutrient deficiency. This program is a great example of how a company can leverage its marketing efforts to promote nutrition knowledge among consumers.
Canteen Operators WorkshopNestlé Professional launched Canteen Operators Workshops across various sites. In partnership with registered nutritionists, the program advocates canteen operators to prepare quality, balanced, and nutritious meals for students. The event was participated in by 550 participants from 275 school canteen operators nationwide.
further in 2016 to 3,135 moms in 72 barangays across 5 cities. Moving forward, MAGGI plans to influence more community leaders all over the country by increasing its reach and putting digital at the core of the program. This is to ensure that they get easy access to information and become part of a community of cooks who are united by one objective - promoting a healthy and sustainable lifestyle for their families and the community.
Nutrition Education
2/ 10moms
7/ 10moms
Part of a digital campaign on micronutrient deficiency
Before the campaign
After the campaign
Awareness on Micronutrient Deficiency
Nestlé CSV Report 2016
5150
Physical ActivityOver the years, Nestlé has played an active role in promoting sports development in the country through the long-running sports activities of MILO.
The MILO Sports program aims to engage generations of Filipino families towards a shared vision of a stronger nation of champions through sports. Implemented together with the Department of Education, One Child, One Sport is the umbrella program of Nestlé.
The National MILO Marathon is the country’s biggest running event and has been building champions for over 40 years. Held in 16 cities around the Philippines, the race is divided into five categories: the 3km family run, the 5km fun run, the 10km run, the 21km half marathon, and the 42.135km full marathon. From 2014 to 2016, the National MILO Marathon had approximately 613,974 participants.
MILO Marathon
36, 000 pairs of rubber shoes distributed*
Physical ActivityA portion of participants’ registration fees is applied to MILO’s Help Give Shoes advocacy, which gives deserving public school students a pair of running shoes. In 2014, 16,000 shoes were distributed to the typhoon-stricken kids of Tacloban to help them get back on their feet. In 2015, 10,000 pairs were distributed and another 10,000 in 2016.
Runners in the MILO Marathon Students with their MILO shoes
*in the last three years
Nestlé CSV Report 2016
5352
The MILO Little Olympics is an annual, nationwide, inter-school junior sports competition which has allowed student athletes to realize their sports dreams since 1988. A total of 15 sports are made available: Arnis, Athletics, Badminton, Basketball, Chess,
MILO Little Olympics
Football, Gymnastics, Karate do, Scrabble, Sepak Takraw, Swimming, Table Tennis, Taekwondo, Tennis, and Volleyball. Instilling discipline, determination, and hard work, the program is participated by more than 24,000 student athletes annually.
24, 000 student athletes participate annually
During the months of April and May, the MILO Sports Clinics teach kids the fundamentals of various sports. For the past three years, the program has provided an avenue for 107,801 kids to have a fun, exciting, and healthy summer experience while learning to develop essential values in life.
The summer program consists
MILO Sports Clinic
2, 000 MILO Champion Bands distributed
Physical Activity
Students with their MILO Champion Bands that can measure their physical activity
Nestlé CSV Report 2016
5554
107, 801 kids engaged for the past three years
of experienced coaches providing hands-on training using the latest training equipment. Currently, the program offers 21 sports: Badminton, Basketball, Bowling, Chess, Cross Fit, Fencing, Football, Futsal, Golf, Gymnastics, Ice Skating, Karatedo, Parkour, Swimming, Table Tennis, Taekwondo, Tennis, Touch Rugby, Triathlon, Volleyball and Yoga.
MILO Champ Moves is a school-based program that aims to encourage a more active and healthy lifestyle among public elementary school children through lectures on energy and movement by adding an element of fun through sports-themed dance steps every flag ceremony. Under its partnership with the Department of Education, MILO Champ Moves has engaged 17.6 million public school children nationwide from 2014 to 2016.
MILO Champ Moves
17.6 million public school children engaged nationwide from 2014-2016
Physical ActivityStarting 2015, MILO has been able to distribute more than 2,000 MILO Champion Bands, a wearable device for kids that tracks activities, steps taken, calories burned, and distance and time of the participants of the MILO Sports Clinic. Syncing the MILO Champion Bands with the MILO Champions PH App allows parents to monitor their kids’ progress from their mobile device and track energy input and expenditure.
As the world’s largest food and beverage company, Nestlé is in a position to shape sustainable consumption and steward resources for future generations. In the Philippines, the Company focuses its efforts on reducing water use across its operations, using sustainably managed and renewable resources, and working towards solid waste management and zero waste.
Water and Environment
Nestlé CSV Report 2016
58 59
Data from the Japan International Cooperation Agency (JICA) Master Plan on Water Resource Management shows that the Philippines has the second to the lowest ground water availability among Southeast Asian countries. Operating a business that relies heavily
Water Management In Nestlé’s Operations
on water in a country facing water scarcity underpins the business case for water conservation in Nestlé. The Company considers water stewardship as a priority of the business and embeds its responsible use across its units and facilities.
Globally, Nestlé is committed to reduce its water withdrawal per ton of product by 35% from 2010 to 2020. The Company implements programs to reduce water withdrawal by reusing water and utilizing alternative sources like rainwater.
Water M
anagement in
Nestlé’s Operations
201620152014
5.74 6.56 6.36
Water Intensity (water withdrawal rate in m3/ metric tonne product)
Nestlé Philippines has made progress in its effort to reduce water intensity despite the steady increase in its production volume from 2010 to 2016; the water intensity or the volume of
water withdrawn over metric tons of product manufactured was maintained within the same range, 6.56 in 2015 and 6.36 in 2016.
Despite increase in production volume, water intensity was maintained
5.755.866.286.95
2013201220112010
G4-EN22
G4-EN8
Nestlé CSV Report 2016
60 61
Nestlé invests in “beyond compliance” water management systems in treating wastewater and reusing treated industrial wastewater. The following programs were implemented to increase Nestlé’s water efficiency:
Water M
anagement in
Nestlé’s Operations
Rainwater Harvesting The Rainwater Harvesting system collects rainwater for later use from relatively clean surfaces and then stores the water in tanks for use in refrigeration.
Reuse of Water Nestlé reuses final rinsing water of cleaning equipment for the next cleaning cycle. All Nestlé factories use a closed- loop system that recycles water for cooling vacuum pumps.
Reverse Osmosis Technology Nestlé uses reverse osmosis to clean water from the ground. This process yields reject water which is collected and used to flush toilets and urinals.
Recovery of Water In Nestlé’s Lipa factory, condensates are recovered from the band dryer and used again as feed water for the boiler resulting to 7,305 cubic meters of water conserved.
Zero Industrial Wastewater Discharge Factories Nestlé began recycling 100% of its processed industrial wastewater in its Pulilan Factory in 2010 and its Lipa Factory in 2016.
7, 305 cubic meters of water conserved from condensate recovery project in Lipa factory
=3 Olympic-sized swimming pools
100% recycling of processed industrial wastewater
Nestlé CSV Report 2016
62 63
Nestlé Water Leadership Award was launched in 2013 as a special category of the National Search for Sustainable and Eco-friendly Schools. It aims to encourage and recognize schools with initiatives on water conservation and management.
Advocating Water Stewardship
Nestlé Water Leadership Award
To promote water stewardship, Nestlé has initiated the following programs:
Advocating Water Stew
ardship
Project WET - Water Education for Teachers
An interactive training program on water education, Project WET educates students and teachers, employees, communities, and barangay leaders about water conservation and the importance of water.
23 Project WET trainings
793 individuals participated
River and Coastal Clean-up Activities
In 2016, Nestlé employees volunteered to participate in DENR’s simultaneous nationwide clean-up activities of rivers, esteros, and creeks. Train the trainers session
Interactive modules on water education
Nestlé CSV Report 2016
64 65
Managing Solid Waste
Nestlé finds opportunities for reducing waste in its entire value chain and is committed to eliminating waste at every level of its operations. The Company defines waste as any material that arises during the manufacturing or distribution stage of a product that is destined for
Managing Solid W
aste
final disposal at offsite landfill or incineration without energy recovery. Ultimately, Nestlé aims to produce zero waste and achieve full recovery of unavoidable by-products. In 2014, the Company was able to drastically reduce its solid waste disposed to landfill by
83.6% through improvements in its Materials Recovery Facility and training personnel on proper waste segregation. Last August 2016, Nestlé achieved a milestone when it achieved Zero Waste to Landfill for solid wastes in its factories.
G4-EN23First full year of Zero Waste to Landfill
Achieved Zero Waste to Landfill for Factories starting August
Zero Waste to Landfill achieved in August 2016
5, 140 MT of waste to landfill
840 MT of waste to landfill Completed waste characterization of all factories Facilities improvement (MRFs)
Worked with existing Waste Management contractors for capacity increase Accreditation of new treaters
2013
2014
2015
2016
2017
Timeline of Zero Waste to Landfill
Nestlé CSV Report 2016
66 67
Material Efficient Packaging and Waste Recovery
Nestlé gives importance to product branding as it relays the Company’s key product attributes to its consumers on pack. Nestlé’s packaging designs provide convenience in usage and supports efficient handling as the product goes through the value chain. While Nestlé protects and preserves the quality of its products through appropriate packaging, the Company continually optimizes packaging designs to save material and avoid food wastage.
Nestlé uses eco-design tools to assess the overall performance of products and packaging throughout its life cycle. The Company lessens the impact of packaging using a systematic approach such as the reduction of weight and volume by using lighter materials, optimized dimensions, and material substitution while still meeting consumer needs, food safety standards, and product quality requirements. In 2016, Nestlé managed to reduce its packaging material use by 1,004 MT.
1, 004 MT of packaging material reduced in 2016
Managing Solid W
aste
2, 400 MT of laminates sent for co-processing
To ensure proper waste disposal, Nestlé sends waste laminates to cement manufacturers to be used as alternative fuel. About 2,400 MT of laminates are sent over for co-processing.
201620152014
46.63% 62.62% 76.13%Composting
Co-processing with energy recovery
Landfill
Other Disposal Methods
Other Recovery Processes
Recycling
Reuse
0.24% 0.03% 3.58%
3.88% 0.53% 0.94%
0.00% 0.01% 0.02%
16.99% 4.84% 5.73%
32.03% 26.37% 43.41%
0.22% 0.23% 6.64%
Disposal methods of Non-hazardous Waste generated
G4-EN23
G4-EN2
Nestlé CSV Report 2016
68 69
EcodEx
To assess the environmental performance of a product faster and much earlier in the design process, all new products of Nestlé undergo an environmental sustainability assessment where relevant, using its Life Cycle Analysis or LCA-based ecodesign tool EcodEx (Ecodesign for Sustainable Product Development and Introduction).
Using data specific to the food and beverage industry, EcodEx allows different scenarios to be compared using five environmental impact indicators. This tool can be used to assess the overall environmental impact of a packed food product along its journey through the value chain.
Eco Bricks and Permeable Pavers
Nestlé has teamed up with Green Antz Builders to create eco-bricks, composed of 10% shredded used post-consumer laminate wastes. Compared to ordinary concrete hollow blocks, eco-bricks are five times better in terms of compressive strength and allow for faster construction with less materials due to their interlocking shape. The eco-brick hub is both a manufacturing and a training facilitiy where
Green Antz trains members of the community on the importance of waste segregation and how to manufacture eco-bricks with used sachets and laminates. Nestlé and Green Antz also partnered with schools to expand and improve source material collection.
Collection
Incentive
Eco-Brick Hub
Segregation
Value for Sachet
Eco-Brick and Livelihood Generation
Managing Solid W
aste
All new products of Nestlé undergo an environmental sustainability assessment
Life cycle of products
Ingredient Supply
Manufacturing
Packaging
End of life
Consumption
Distribution & Storage
Nestlé CSV Report 2016
70 71
Managing Solid W
aste
Upcycling project for BEAR BRAND School Chairs
Sachets collected from a BEAR BRAND raffle promo were mixed with plastic resins in order to be converted to school chairs and tables. These school chairs and tables were donated to selected Laki sa Tibay public elementary schools. The first grand raffle draw activity resulted in 150 school chairs donated to Sibul Elementary
School in San Miguel, Bulacan and the second raffle draw yielded 2,500 pieces of school chairs. The project was capped off with an environmental forum held on December 14, 2016 with stakeholders focusing on solid waste management, participated by the local community of Barangay Tablon, CDO City.
2, 600 chairs from 5, 400 kg of laminates
Beverage Carton Recycling Project
Project GIVEPACK is a campaign run by the liquid beverages unit that encourages community members to properly dispose and collect their used beverage carton (UBC) packs which can be transformed into reusable materials. The project is implemented in partnership
with the Local Government Unit of Quezon City’s Barangay Greater Lagro which has over 30,000 community members. The campaign launched its 1st post-consumer UBC collection last August 2016 and collected 5,082 UBCs from the barangay and 8,256 collected from four schools.
Nestlé CSV Report 2016
72 73
Lead Acid Batteries contain hazardous components as classified under Philippine law. When improperly disposed, these toxic materials could leach into soil and water bodies. Nestlé ensures that used batteries from its transportation distribution operations are properly managed. Since 2010, the Company’s Supply Chain Management Transport Operations has been working with Nestlé Transport-Partners, Philippine Business for Social Progress (PBSP), and the Department of Environment and Natural Resources to implement the Company’s Balik-Baterya Program.
The program aims to promote the responsible treatment of used batteries through recycling lead components and plastic cases and by treating properly the residuals, like sulfuric acid, inside the used batteries. To sustain this program, Nestlé and its program partners regularly conduct awareness campaigns and organize collection events with the Company’s transport partners. Over the past three years, the Company has collected a total of 26, 800 kg of batteries and earned Php 545, 000 from its sales.
Balik-Baterya Program
Managing Solid W
aste
12, 860Used Batteries (in kilos) 6, 260 7, 680
Total income earned (in PHP) 258, 245 166, 053 120, 800
201620152014 Commulative total
26, 800
545, 098
26, 800 kg of batteries collected
The proceeds of the sales of used batteries have been donated to schools since 2014. Moving forward, Nestlé intends to expand the scope and
type of waste to be collected. Employees will be encouraged to donate their used lead acid batteries as well.
19
842, 000kg of Used Lead Acid Batteries (ULABs) donated
partner truckers
public schools assisted
Used batteries donated and cash donations earned
G4-EN23
Nestlé CSV Report 2016
74 75
Energy Efficiency
Apart from Nestlé’s efforts to conserve water and reduce water pollution, the Company monitors and manages other environmental impacts as part of its overall sustainability strategy. Towards this end, the Company has invested in technologies that optimize and reduce energy consumption, converted by-products into energy, and explored the use of alternative energy sources.
Energy Efficiency
6.356.60 5.97
2014 2015 2016
Intensity
Beyond operational efficiency, Nestlé puts a premium on the personal responsibility of employees to conserve energy through various training modules. Departments in all worksites look for opportunities to avoid wasteful use of energy and develop energy-efficient practices. These energy management initiatives are subject to regular audit. Nestlé’s energy conservation initiatives have been
Energy Intensity
Despite the increase in Nestlé’s total energy consumption brought by an increase in its production volume, there is a continuous decrease in energy intensity which shows Nestlé’s dedication to proper energy utilization. Nestlé uses its organic waste that would otherwise be disposed in landfills as an alternative energy source. In manufacturing coffee
products, Nestlé produces waste such as spent coffee grounds, roasted chaffs, green coffee residue, and coffee wash. Nestlé collects these by-products for its biomass plant that transforms the waste into energy. The spent coffee grounds and other waste is processed and fed into an atmospheric fluidized bed boiler.
The biomass plant built in the Company’s Cagayan de Oro factory, gathers saw dust, scarp wood, coco shell and bagasse as additional biomass fuel for the fluidized bed boiler. The factory uses almost 150,000 kg of spent coffee grounds every day as fuel for producing 20-ton per hour of steam energy.
recognized by the Department of Energy. The Company received the Don Emilio Abello Energy Efficiency Award in its Canlubang, Lipa, and Tanuan factories in 2015, and its Cabuyao and Cagayan de Oro factories in 2016. Nestlé’s goal is to continually reduce its energy intensity even as the Company’s levels of production increases.
G4-EN5, G4-EN6
Energy Intensity (Gigajoules energy/metric tonnes product)
Nestlé CSV Report 2016
76 77
Greenhouse Gas Intensity
As part of Nestlé’s effort to reduce its contribution to climate change, Nestlé tracks and manages its GHG emissions. These emissions are primarily attributed from the Company’s use of direct and indirect energy.
Energy Efficiency
This translates to annual savings of more than 4,000 million liters of oil, in addition to reduced sulfur oxide (SOx) emissions by nearly 300 tons and prevention of 70,000 tons of waste.
6, 100 kg of biogas a day produced from anaerobic digester
Despite the increase in the total greenhouse gas emission of Nestlé due to increased energy usage from increased production, the Company managed to reduce its GHG intensity by 11% from 2010. GHG intensity constantly decreased from 481 kg CO
2e
to 458 kg CO2e over the past
three years.
At Nestlé’s Tanauan factory, which produces Coffee-Mate and BEAR BRAND, the Company invested P155 million in an anaerobic digester to treat the organic waste. The digester produces 6,100 kg of biogas a day, providing a source of energy for the factory, reducing expenditure on fossil fuels and reducing emissions by 1,885 tonnes of CO
2 equivalent a year. 201620152014
481 468 458
Total GHG Intensity (kg CO2e/metric tonnes product)
482473505519
2013201220112010
11% GHG intensity reduced from 2010
4, 000 million liters of oil saved
G4-EN18
Waste Preparation
The upgrade will save Nestlé P25 million a year. Nestlé is now looking at replicating the approach in other factories with high levels of organic waste.
Anaerobic Digestion
Organic WastesBiogass
(rich in methane)
Stabilization/Curing/ Dewatering
Organic Compost
Heat & Electricity
Digestate
Anaerobic Digestion
Nestlé CSV Report 2016
78 79
Nestlé seeks to make its industrial processes more efficient. Here are few examples of projects the Company has implemented in its factory sites:
Renewable Energy Aside from Nestlé’s energy efficiency projects in its facilities, Nestlé finds other ways to reduce its GHG emissions. At Nestlé Lipa Integrated Coffee Center,
Factory Site Project Energy and GHG Savings
Equivalent to
Cagayan de Oro
Installation of 4 Liquid ring vacuum pumps
Energy Savings: 25, 913 GJ
GHG Savings: 1, 935 tCO2
e
Cagayan de Oro
Optimization of Air Heaters
Energy Savings: 9, 572 GJ
GHG Savings: 740 tCO2
e
Cabuyao Improvement of Primary Air Fan Performance
Energy Savings: 8, 525 GJ
GHG Savings: 1, 139 tCO2
e
Energy Efficiency
409
286
156
109
241
168
Legend Passenger vehicle driven for one year
Homes’ electricity use for one year
solar powered pumps are used for irrigation. The Company is also working to obtain electricity from renewable sources in its Lipa Factory.
Solar panels in Lipa Integrated Coffee Center
Nestlé CSV Report 2016
80 81
Greening the Supply Chain
Nestlé puts a premium on sustainability – not only on its products, but also on the processes required to manufacture them. Some of the pre-manufacturing processes are supplied by business partners. To ensure their manufacturing practice adheres to Nestlé’s standards of quality, efficiency, and social responsibility, the Company does more than just supplier audits. For almost two decades, Nestlé’s “Greening the Supply Chain Program” has evolved to include knowledge sharing and concern for the environment. This has led to raised awareness and identifiable action in its core operations and the operation of its business partners. Launched and instituted in 2000, the initiative guides
the Company’s stakeholders throughout the supply chain in establishing and improving their level of environmental performance and management system ratings. The program includes a three-day training for Nestlé’s business partners where they share best practices. The CEOs of the companies commit to implement
environmental programs. Nestlé tracks the programs’ performance and hosts events to recognize their success. To date, the program has assisted more than 240 Nestlé business partners and has helped the Company achieve “beyond compliance” environmental performance.
Greening the Supply Chain Aw
ards and RecognitionAwards and Recognition
ASEAN Corporate Sustainability and Summit Awards: • Winner in Supply Chain Sustainability • Runner-up in Resource Efficiency
Sustainable Business Awards Philippines: • Winner in Water Management • Winner in Waste Management • Special Recognition on Supply Chain Management
Don Emilio Abello Energy Efficiency Awards: • 2015 Canlubang, Lipa, and Tanuan Factory • 2016 Cabuyao and Cagayan de Oro Factory
DENR-EMB’s World Water Day 2015 Award for: • Project Water Education for Teachers (Project WET) • Nestlé Water Leadership Award (National Search for Sustainable and Eco-friendly Schools)
Nestlé’s success in environmental protection is validated by the awards the Company received from award-giving bodies both here and abroad. In 2015 and 2016, we have received the following:
G4-12, G4-EN32, G4-LA14
Rural development forms part of Nestlé’s initiatives to support and improve the socio-economic conditions of communities where it operates. The Company assists in developing rural areas and communities by aiding farmers, facilitating indirect and direct employment and continuing infrastructure development.
Rural Development
G4-EC8, G4-EC9,, G4-SO1
Nestlé CSV Report 2016
8584
Each cup of NESCAFÉ is part of a visionary initiative that has, over many years, been a manifestation of Nestlé’s core commitment of creating shared value in the coffee sector. Launched in 2010, the NESCAFÉ Plan is a global initiative with a goal to ensure a sustainable supply of quality green coffee. In the Philippines, the Company aims to increase supply of local robusta coffee and in doing so, help local farmers increase their yield and their income from coffee. Nestlé assists farmers by propagating high yielding plantlets and selling them at cost, enabling technology transfer through training across the country, providing a support network of agronomists, and strategically locating buying stations close to coffee areas so farmers can sell directly to Nestlé.
The NESCAFÉ Plan is a synthesis of years of collaboration with farmers, stakeholder groups, and the government. Nestlé partners with government through the National Convergence Initiative (NCI) consisting of the Department of Agriculture (DA), Department of Agrarian Reform (DAR), Department of Environment and Natural Resources (DENR) and the
NESCAFÉ PlanN
ESCAFÉ Plan
Department of Interior and Local Government (DILG). The NCI partnership with Nestlé, which started in 2011, is a joint technical and commercial cooperation for the further development of the Philippine coffee industry. The NESCAFÉ Plan in the Philippines helps farmers through the following:
1. High yielding plantlet production and distribution Nestlé adopts technology from the Nestlé Research and Development Center in Tours, France. These Robusta selections are of excellent quality and have been
certified by the Philippine Bureau of Plant Industry (DA-BPI). Nestlé grows these plantlets in Nestlé and DA facilities across the country.
Tagum, Davao del Norte (Nestlé site) Nestlé Coffee Plantlet Production and Training Center (NCPPTC)
Malaybalay, Bukidnon (DA Facility) Bukidnon Integrated Coffee Center (BICC)
Lipa, Batangas
(Nestlé site) Lipa Integrated Coffee
Center (LICC)
Aglipay, Quirino (DA Facility) Quirino Integrated Coffee Center (QICC)
Carmen, South Cotobato
(DA Facility) Carmen Integrated Coffee Center (CICC)
Nestle sells these plantlets at cost and a majority of these are distributed by government partners.
Nestlé CSV Report 2016
86 87
2. Capacity building and technical training for farmers Nestlé conducts the Coffee Production Technology Training (CPTT) which is a three-day training course covering basic coffee growing skills. The course includes topics on coffee propagation, nursery & farm establishment, fertilization, care and maintenance, harvesting and post-harvest operations, quality control and marketing, coffee rejuvenation and regeneration. The training also covers coffee farming
sustainability following the NESCAFÉ Better Farming Practices (NBFP) and the Common Code for the Coffee Community (4C). The NESCAFÉ Better Farming Practices (NBFP) is a set of coffee farm practices designed to increase productivity while assisting farmers to meet basic social and environmental criteria, as defined by the 4C and Sustainable Agriculture Network (SAN) standards. The
4C Code of Conduct is a set of codes which includes the 10 unacceptable practices and 28 principles covering social, environmental, and economic aspects of sustainable coffee production. The 4C orientation includes farm management and productivity, environmental conservation, health and safety, quality, traceability, and profitability modules. 4C verified farmers and suppliers are provided incentives for them to comply with sustainable agricultural practices as well as seek and maintain verification. Nestlé conducts the Coffee Production Technology Training (CPTT) in three sites: Tagum, Davao del Norte (Nestlé site) Nestlé Coffee Plantlet Production and Training Center (NCPPTC), Lipa, Batangas (Nestlé site) Lipa Integrated Coffee Center (LICC) and Malaybalay, Bukidnon (DA Facility) Bukidnon Integrated Coffee Center (BICC). Nestlé conducts 4C trainings on site.
3. Buying Stations Nationwide Seasonal buying stations are opened across the country to make it easier for farmers to sell to Nestlé. The buying station in the Nestlé Cagayan de Oro factory is open year-round. Partners are regularly informed of current coffee buying prices with Text Connect.
NESCAFÉ Plan
Through this system, green coffee suppliers, potential investors and other stakeholders receive text messages indicating the buying price per kilo for the different grades of coffee. Nestlé purchases at competitive world market prices. The Company also established the Farmer Connect program which is a direct sourcing
program that ensures traceability up to farmer level by buying either directly from farmers, cooperatives or selected traders applying Nestlé good agricultural and suppliership standards, principles and practices, with engagement in capacity building and training.
Nestlé CSV Report 2016
88 89
Results to date
Over the years, the Company has increased the number of farmers trained. In the last 3 years, Nestlé has trained 33,676 farmers. Through partners, mainly government agencies, Nestlé has distributed 6,848,708 plantlets from 2014-2016. The volumes of sustainably-sourced coffee has increased through the years. 4C volumes have grown from 1,490 Metric Tons (MT) in 2014, to 3,248 MT in 2015 and
7,136 MT in 2016, representing a 379% increase in 4C volumes in the last 3 years. Of the 14,000 farmers covered directly by Nestlé agronomists and technicians, 9,129 are now 4C farmers. The last 3 years saw a steady increase in the Company’s local purchase of robusta coffee. In 2016 alone, Nestlé purchased 165% more local coffee compared to its purchase in 2015.
NESCAFÉ Plan
1, 490 MT
2014 2015
3, 248 MT
2016
7, 136 MT
Volume of 4C coffee
Farmers bring their produce to the buying station where a sample is collected upon delivery to assess the quality of beans. This will go through a moisture, triage and cup taste test.
Tuguegarao City/Solano/Bayombong,
Nueva Vizcaya
Tagum, Davao del Norte
Maramag/Valencia, Bukidnon
Silang, CaviteLipa, Batangas
Tagbina, Surigao del Sur
Iloilo City, Iloilo
6, 848, 708 plantlets distributed
from 2014-2016
33, 676 farmers trained
The results of the test will be the basis for determining the grade of the coffee beans which in turn will establish the buying price per kilo of the coffee delivery. Incentives are applied to batches that
meet the moisture standard. A premium is also given for 4C coffee. Suppliers get paid within eight banking hours.
Location of buying stations nationwide
Nestlé CSV Report 2016
90 91
In partnership with the office of Senator Francis “Kiko” Pangilinan through the Sagip Saka program, three communities in Bukidnon, Sultan Kudarat, and Surigao del Sur received 1 million pesos each to boost their coffee farming productivity.
Nestlé assisted farmers through the provision of 83,000 high yielding coffee plantlets, establishment of a nursery in Bukidnon with a capacity to produce 20,000 seedlings, provision of all-weather driers, post-harvest facilities, fertilizers and farmer training.
Sagip Saka
As proof that Nestlé is making a difference in the lives of the coffee farmers we assist, we are highlighting 2 projects by which specific interventions were given to small coffee communities that resulted in increased yield and improved farmer incomes.
Success Stories
140% improvement on farmer yield
Sagip Saka farmer beneficiaries in Tagbina, Surigao del Sur initially earned PHP 7, 350 in 2014, before the program started. After the implementation of the interventions provided by the program, farmers started to earn PHP 14, 224 from the new trees they planted and
NESCAFÉ Plan
another PHP 6, 829 from the old trees. In 2016, these farmers earned PHP 28, 500 from the new trees planted. Farmer yield improved by 140% compared to the old trees they had.
Farmer income more than doubled in 2015 while in 2016 farmers earned more than three times more from the new trees compared to existing old trees prior to the program.
Nestlé CSV Report 2016
92 93
NESCAFÉ PlanNestlé partnered with
Deutsche Investitions-und Entwicklungsgesellschaft (DEG) and Asia Society for Social Improvement and Sustainable Transformation (ASSIST) to implement a program called Project CoFFEE (Coffee Technologies and Funds to Fuel Economic Empowerment). The program provided technology transfer and training and included the provision of high-yielding plantlets, establishment of a mother plant garden and a nursery, fertilizers, flat bed
Project CoFFEE
dryer, and a mini truck to improve the cooperative’s operations through various income streams. A two-day training program on business management skills enhancement was also conducted for the Board of Directors and officers of the cooperative. The beneficiary of the project is the Mabuhay Kahayagan Coffee Growers Cooperative (MKCGC) of the Municipal Government of Tagbina in Surigao del Sur, a town of
38,000 citizens located on the eastern coast of Mindanao. Specifically, this Public-Private Partnership (PPP) established a model for sustainable small-scale coffee communities in the Philippines. The cooperative earned PHP 67,500 alone from sales of vertical stems (harvested from the mother plant garden) in 2015. They earned PHP 624,000 pesos in 2015 and 2016 from sales of robusta plantlets (produced from the cooperative’s nursery) and PHP1,172,199 in 2014 to 2016 from green coffee beans sold to Nestlé. The cooperative had a 54% increase in green coffee sales to Nestlé after the first year of Project CoFFEE implementation.
54% increase in green coffee sales
Coffee farming as livelihood for Indigenous People
Mr. Renanto Obamus is a coffee farmer from Sitio Meyor, Barangay Ketodac, Lebak, Sultan Kudarat and a Manobo, one of the major Indigenous People (IP) tribes in Mindanao. He started coffee farming when he was young with only one hectare of land which eventually expanded to 20 hectares after his training with Nestlé and years of hard work. He learned techniques and practices through continued participation in Nestlé’s 4C trainings over four
years and has experienced significant increase in his yield. Mr. Obamus has become a ‘one-tonner yield farmer’ by applying the NBFP such as pruning, rejuvenation, right timing, and proper fertilizer application. He has since reaped the benefits of improved farming methods with significantly higher income that has helped both his business and household. One of his major acquisitions is a 6-wheeler truck which has further enhanced
his agricultural operations. He has also earned enough to send all of his four children to school. Mr. Obamus remains a partner of Nestlé and continues to supply the Company with his produce, a testament to the lasting mutual benefit the 4C trainings and the NESCAFÉ Plan can bring to local farmers.
Nestlé CSV Report 2016
94 95
Cut and Sew
Tanauan City in Batangas, Pulilan in Bulacan, and Cabuyao in Laguna. The Tanauan site started operations in 2015 and both revenue and garment production doubled within just one year. Meanwhile, the Cabuyao site has also seen a sustained increase in income over the past three years, indicating much potential for alternative livelihood projects in these areas.
Cut and Sew
The Cut and Sew program is a livelihood project in Lipa City, Batangas where unemployed women from the area were taught needle-and-thread work under the government’s Technical Education and Skills Development Authority (TESDA) livelihood program. Two decades later, it is now a major revenue source for locals. In Barangay Bagong Pook where Nestlé’s Lipa
factory is located, the ladies of Cut and Sew supply the factory’s requirements for uniforms (pants, shirts and jackets), laboratory gowns, hairnets, shoe covers, and rags. Since 2014, the women entrepreneurs have been receiving increasing orders every year. By 2016, they received a purchase order of over P14 million.
52Number of Sewers 57 58
201620152014
Purchase Orders for all sites (in PHP)
973, 994 5, 695, 199 14, 697, 486
Results of the Cut and Sew program
By engaging the locals for their sewing services, Nestlé has expanded its economic footprint beyond providing direct factory employment and continues to provide opportunities for growth in the community. The successful enterprise, which started in 1997, has also expanded in recent years to sites close to Nestlé’s other factories:
Nestlé CSV Report 2016
96 97
Pulilan is also home to the Farmville program, through which local housewives were trained, supplied with material and seed capital to grow vegetables on an allotment of land within the Nestlé Pulilan Factory.
FarmvilleNumber of volunteers
(beneficiaries in Pulilan)
2016
2015
2014 131313
Revenue of beneficiaries in PHP (Pulilan)
75, 811 80, 695 78, 222
Farmville
The produce is sold in the factory canteen and to employees and sometimes to village residents - offering both economic and health benefits for the community. The program, named Farmville in Pulilan, started in 2011 but originated from Lipa Factory’s Yard and Garden program
which is set to be renovated due to damage caused by a typhoon in 2014. Before the typhoon hit, there was a total of 48 women in Lipa and Pulilan tending to the garden. Currently, there are 13 women tending to the garden in Pulilan.
Nestlé CSV Report 2016
98 99
Across the nation, Nestlé reaches out to individuals to distribute Nestlé products to canteens, carinderias, and other small food establishments. Dubbed “Business on Wheels” (BOW), this door-to-door sales program provides individuals with the opportunity to augment their incomes by earning as much as triple the minimum wage. The average daily income of a BOWer is between P 600 to P 1,000 per
Business on WheelsBusiness on W
heelsday and average daily sales hits P 8,000 to P 12,000. The said income is 24% to 67% higher than the minimum wage in Metro Manila and 57% to 163% more than the average provincial daily rate. Many who used to be tricycle drivers earning minimum wage are now, through their own entrepreneurial spirit, owners of their own businesses.
So important is their role in the Company that as much as 20% of the total Nestlé Professional* business in the Philippines is generated by BOWers.
Number of BOWers
525
2014
484
2013
480
2015 2016
474
BOWers earn
24% to 67% higher than the minimum wage in Metro Manila *Nestlé Professional is the business unit of NPI that caters to restaurants, vending, and other out-of-home dining services.
Nestlé CSV Report 2016
100 101
PHP 600 - PHP 1, 000 average daily income of a BOWer
The BOWer activation process includes consultations and the development of a Coverage Plan to ensure the viability of a given route. This study indicates a significant number of accounts for the BOWer to supply. Afterwards, Business Development Officers (BDO) are tasked to select potential
Ryan Pelino
Before joining the BOW program, he used to be a janitor and not earning enough to support his family. He has been with the BOW program for more than five years covering the Intramuros, Manila route.
Business on Wheels
BOWers who are then trained in sales and familiarized with the assigned area and sales operations. One BDO handles six BOWers and the program is focused on developing productive entrepreneurs taking on sustainable routes.
As a BOWer, his daily income averages P 1,000, which has allowed him to raise a family including sending his two children to school, renting a more comfortable apartment, and affording simple household joys such as toys, gadgets, and appliances.
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The Massage from the Blind program is an initiative by the Pulilan Factory in Bulacan which offers their factory employees the opportunity to get a massage every Wednesday at their wellness center. Set-up as a livelihood program for a group of visually-impaired massage therapists,
Massage from the Blindthey are paid for the massages on top of a subsidy and frequently contacted to do home service. The group has earned PHP 364,000* since the start of the initiative in subsidies alone. This program serves as additional income for the 4 massage therapists.
* excluding the amount the therapists charge for the actual massage (Php100+), tips, and meals.
Nestlé aims to actively participate in ensuring the communities around their sites are progressing economically and socially. This is core to the Company’s rural development policy. Nestlé also believes that for community development to succeed, a bottom up approach must be taken, which is why in 2015, the Company established
Community Development Framework
the community development framework, a simple approach to identifying community needs via a formally structured meeting and planning session with the local government and barangay officials of each of their sites. The meeting resulted in a detailed heatmap that both Nestlé and the local
Massage from
the Blind Com
munity Developm
ent Framew
ork
4 Massage therapists
364, 000 Subsidy for the group (in PHP)
stakeholders agreed on as their top priorities in the coming year. This ensures that programs are jointly established and address relevant pressing community needs.
Nestlé with barangay officials running the Community Development Framework workshop
Beyond core Shared Value initiatives, Nestlé also assists communities through various charitable programs with its employee-volunteers. Nestlé endeavors to help society through donations and contributions to disaster relief, youth empowerment and volunteerism efforts among others. Following are some philanthropic activities of the Company over the last three years.
Helping SocietyG4-EC8, G4-SO1
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As one of the most successful projects of the Department of Education (DepEd), Brigada Eskwela (School Brigade) invites the private sector, local government and the community to join hands in helping improve the conditions of schools across the country.
In partnership with the DepEd, employee-volunteers from Nestlé Factories annually refurbish and contribute to the upkeep of classrooms of nearby public schools. Every summer, employees clean, paint, repair and beautify the classrooms and campus grounds in preparation for the start of the new school year. In the past three years, more than 350
more than
350 Nestlé employees
Brigada Eskwela
and Safety Skwela
Brigada Eskwela Safety Skwela
There is currently a gap in the school system on lessons in safety. Responding to this, Nestlé created modules in 2016 to help teach safety in a fun and interactive manner. The modules covered concepts on how to be safe in school, at home, and on the road. Throughout 2016, five trainer trainings were conducted,
benefiting a total of 186 participants. The trainings were attended by teachers, Nestlé employees and Safety Health and Environment officers. The Safety Skwela (Safety School) project also includes visiting schools and conducting risk assessments. Once the risks are determined, Nestlé helps manage the risks
5 safety trainings with 186 participants
employees have volunteered a total of 1,720 hours of their time for Brigada Eskwela. Beyond manpower, contributions have also been made to enhance the school environment in the form of computers, school maintenance, safety training, trash bins and fire extinguishers.
either through engineering control or administrative recommendations. Nestlé also recommends school specific life-saving rules to be adopted at the discretion of the school administrators. To date, two schools have already undergone the training and site assessment program.
Nestlé employees participate in Brigada Eskwela Interactive training with teachers on safety
1, 720 hours volunteered
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Blood Letting and supertyphoon Law
in Donation
Nestlé sites participate in bloodletting activities organized by the Philippine Red Cross at least once a year to contribute to the growing demand for safe and quality blood in the country. For the past three years, a total of 882.1 liters of blood have been collected from at least 811 Nestlé employee donors in Nestlé’s worksites.
882.1 liters of blood donated
811
Nestlé donors
Bloodletting Supertyphoon Lawin Donation
Nestlé reinforces its role in community development and provides assistance to government and NGOs during times of disaster. The Company provided P11.9
million worth of stocks to the province of Cagayan after the onslaught of the supertyphoon Lawin, which affected more than 40,000 individuals in Northern Luzon.
Delivery of Nestlé goods to Cagayan
PHP 11.9 million of productsdonated
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Christmas Donation
Nestlé Eco-Village
LP4Y - Life Project For Youth
Christmas Donation
In lieu of Christmas gifts to stakeholders, Nestlé donated PHP 1 million in 2015 to the Assisi Foundation for its Hapag-Asa feeding program. The beneficiaries of this donation are in Laguna and the donation reached over 1,500 malnourished children as of early 2016. By the end of the same year, the donation to Assisi targetted Nestlé coffee communities in Mindanao.
Nestlé Eco-Village
Nestlé continues to support its Gawad Kalinga (GK) Eco-village in Lipa City, Batangas, providing about 40 families with housing and an eco-friendly community. Established in 2011, the eco-village is equipped with a rainwater catchment system that allows recycling of rainwater and is designed to make use of reed bed technology that processes sewage through a natural reed system without the use of chemicals.
LP4Y - Life Project For Youth
Nestlé partnered with Life Project for Youth (LP4Y), an organization dedicated to the transformation of disadvantaged youth into skilled and well-rounded individuals. Nestlé’s Executive Committee spent their afternoon with youth entrepreneurs from LP4Y.
They provided training on preparing for work (writing a resumé, preparing for a job interview), and how to sell and market their products. The Executive Committee also provided inspiration and advice on personal and career development for the 33 youth beneficiaries.
33 youth trained
In partnership with the Philippine Toy Library, Nestlé gathered employee donations of toys and school items to build a toy library for the Company’s adopted community in GK Lipa during Christmas of 2015. Moreover, the Channel Activation Team of the Nestlé Sales Department helped repaint houses and taught the kids safety in schools through the Safety Skwela module in 2016.
Sales Department volunteers in GK Lipa
Nestlé Execom volunteers time for LP4Y
1, 500 malnourished children reached
Nestlé employees are empowered and are considered valuable contributors to the Company’s success. They are offered competitive compensation and benefit packages, rewards, opportunities for professional growth and development, and work-life balance. Nestlé measures its performance as an employer through its ability to ensure workers are engaged and gainfully employed.
Investing in Human Capital
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Engagement Survey
In its drive to keep employees engaged, Nestlé enlisted the help of leading global service provider Willis Towers Watson. The Company assessed itself across 16 categories: strategy and alignment, culture and recognition, senior leadership, consumer focus,
innovation, efficiency, line management, empowerment, communication and collaboration, rewards, personal growth and development, work-life environment, engagement, enablement, retention, and other supplementary questions (includes questions
Engagement Survey
on quality of performance review discussions, organization pace of change, and use of non-monetary recognition, among others). The 2016 Nestlé and I Philippines results show improvement in 15 out of 16 categories versus 2014
Category Item Percentage Favorable
Response (Nestlé in the Philippines
2016)
Consumer Focus and Quality
How does Nestlé compare with its competitors on quality of products and services?
92%
Culture and Recognition
I am treated with respect as an individual. 92%
Culture and Recognition
My company is socially responsible in the community.
92%
Consumer Focus and Quality
Nestlé's commitment to quality is apparent in what the Company does on a day-to-day basis.
94%
Strategy and Alignment
I have a clear understanding of Nestlé's strategy and goals.
95%
Key Strengths
survey results, with Retention, Supplementary Questions, and Rewards registering the highest increase in percentage points at +5, +4, and +3, respectively. It also increased by 2 points in Enablement, Leadership Effectiveness, and Diversity and Inclusion. Engagement, where Nestlé
in the Philippines already enjoyed a high 88 in 2014, also increased by 1 point. The Company also scored higher than Global High Performance Norm in 10 out of the 16 categories, particularly in Efficiency, Senior Leadership, and Consumer Focus and Quality.
These were based on several factors, such as absolute scores (percentage favorable response, differences from benchmarks, and impact on engagement).
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Training and DevelopmentAs the Company’s greatest resource, Nestlé is determined to develop its employees through learning and instill this in the company culture. Nestlé anchors its learning and development program on the 70-20-10 principle where employees acquire knowledge, skills, and behavior
through: Experience (70%), Relationship (20%), and Education (10%).
Experience comes with training on the job, relationships are developed through coaching and feedback, and education is formal training via classroom seminars and workshops.
This 70-20-10 mix effectively conditions Nestlé’s employees, weaving together hands-on learning experience with theoretical instructions.
The 70-20-10 principle is a result of evaluation and strategizing and shifts the weight of importance from classroom training to hands-
on training. Giving great value to mentoring and coaching has enhanced relationships between line managers and employees, building rapport and trust. Although classroom training makes up 10% of the Company’s learning activities, Nestlé carefully plans out annual programs to build employee capabilities.
Training and Development
Nestlé’s training programs are categorized as Core (basic and fundamental, required for all employees); Leadership Skills and Personal Effectiveness (required for leaders and management staff); and Elective (optional courses that employees may find useful in their respective functions).
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Employees logged in an average of 14.77 hours of training throughout the year. Nestlé furthers its employees’ learning and development through annual Performance Evaluations (PEs), which
measure their individual objectives against Nestlé’s business targets. A short-term bonus awaits employees who are found to have achieved and exceeded their individual objectives
Total Training Hours by Gender
201620152014
6,352 10,760 10,616
5,964 11,000 10, 212
as well as the standards specified in their Performance Evaluation. Employees who are not able to meet their objectives
12,316 21,760 20,828
Training and Development
Total
are given a Performance Improvement Plan, which is agreed upon by both the employee and line manager. This plan covers a six-month period and addresses
14.77 average training hours thoughout the year
G4-LA9
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32 47
Number of people that were sent abroad on mission assignment or expatriation
37
2015 20162014
significant performance or behavioral issues through learning and development interventions.
Another tool Nestlé Philippines uses in tracking the performance of each of its employees is the Progress and Development Guide (PDG),
Training and Development
Total Training Hours by Position
201620152014
160 388 284
12, 316 21, 760 20, 828Total
Rank and File
Associate
Supervisor
Executive
- 272 252
6, 168 10, 084 9, 984
5, 988 11, 016 10, 308
which is a life-long document following the employee’s strengths and weaknesses against the Nestlé Leadership Framework. Through the PDG, employees are able to share career aspirations and align expectations, as it monitors career and development plans.
Nestlé Philippines is one of the biggest exporters of talents in the Nestlé world
G4-LA9
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Employee Compensation and Benefits
Nestlé employees receive compensation and benefits comparable with industry standards, which are achieved through regular review of their needs and benchmarking them with other Nestlé markets and other industries. Nestlé also participates in an annual community survey on compensation and benefits,
allowing comparisons with other companies. With these measures, Nestlé hopes to continue offering its employees with competitive compensation and benefit packages. Nestlé Philippines ensures a Corporate Total Rewards Policy, giving employees
compensation and benefits that align with Nestlé principles and meet the aspirations of both current and potential new employees. The five facets of Total Rewards are ensuring competitive Base Pay; motivating and engaging Variable Pay; a comprehensive
set of Employee Benefits; Work-Life Environment for the best working experience; and empowerment through Personal Growth and Development initiatives. Nestlé Philippines’ employee benefits package is guided by the Total Rewards model, ensuring it encompasses the total well-being of an employee. Nestlé Philippines takes pride in having one of the most comprehensive and competitive employee benefits packages in the Fast
Moving Consumer Goods (FMCG) industry, with more than 60 benefits to address evolving physical, mental, and emotional needs as well as the social well-being of an employee. Employees of Nestlé Philippines have access to cash benefits, product-related benefits, loans, paid leaves, medical insurance , life insurance, transfer benefits, scholarships, day
Employee Com
pensation and Benefits
Nestlé has one of the most comprehensive and competitive employee benefits package.
G4-LA2
care center, and more, which can also be enjoyed by their dependents. Based on the most recent benchmarking versus comparator and competitor companies, Nestlé Philippines is competitive versus market median when it comes to total compensation.
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Maternity and Paternity Leaves
Nestlé launched the Maternity Protection Policy, one of the most progressive programs in the country, for expecting mothers. The policy, which is based on the ILO Maternity Protection Convention, establishes minimum standards that must be implemented at Nestlé workplaces across the world by 2018.
Employee Com
pensation and Benefits
10-day paternity leave
Maternity leave 2 weeks before delivery date + 3 months after delivery. Additional 3 months unpaid maternity leave
The maternity leave for Nestlé Philippines employees is a total of 10 weeks--two weeks before expected delivery and three months after delivery, and mothers can also be extended up to three additional (unpaid) months. A 2-month paid postnatal
maternity leave is given in cases of abnormal deliveries involving miscarriage or fetal death. Meanwhile, Nestlé Philippines offers a 10-day paternity leave, superior to the government mandated 7 days.
Day 1 Day 2 Day 3 Day 4 Day 5
Day 6 Day 7 Day 8 Day 9 Day 10
2016
Jan Feb
Oct Nov Dec
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Employee Diversity and Inclusion
Diversity and inclusion are an integral part of Nestlé culture, and the Company ranks 13th in Thomson Reuters Diversity and Inclusion Index of 2016. The “Leading Together” conferences will bring women and men of all generations to discuss how Nestlé can
accelerate diversity and inclusion in its workplace. Of the 3,672 total employees in 2016, there were more men than women, but the latter take up a greater number of position distribution.
27% increase in new hires for 2016
2014 2015 2016
3, 828
3, 849
3, 672
Distribution by GenderEm
ployee Diversity and Inclusion
Total
Executive
Associate
Supervisor
Distribution by Position
Total
1, 198
1, 223
1, 170
2, 630
2, 626
2, 502
201620152014
925 977 939
859 836 796
2, 046 2, 036 1, 937
3, 830 3, 849 3, 672
G4-9, G4-10, G4-LA1
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201620152014
3, 828 3, 849 3, 672
Age Distribution
Total
50
30 49
30 1, 223 1, 130
2, 127
478
2, 219
500
979
2, 219
474
265 236 300
Age Distribution of New Hires
Total
Nestlé’s employee age distribution also has a fair mix of both men and women. While Nestlé had more men than women as new hires for 2016, women had greater age distribution. The Company’s new hires also increased by 27% in 2016, when Nestlé took on 303 new employees.
270
239
303
New Hires by Gender
Total
Attrition Rate
4.14% 3.88% 4.10%
Employee Diversity and Inclusion
252 147 156
2014 2015 2016
98
111
115
172
128
188
201620152014 201620152014
56 250
30 49
30
207 50 3183 86 2212
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Nestlé Philippines recognizes women’s contribution to its business with the launch of the Women Movers Award in 2014. This recognition program highlights women influencers and the inspiration they offer others across levels, roles, and backgrounds in the Company. Each year, managers or peers nominate women colleagues who they believe are positive and encouraging role models. The first year attracted 12
nominees from its head office in Makati, but in 2015, the nominations grew to 49 from the other sites. In 2016, Nestlé had 56 nominees, the largest number since the program’s inception. Through Women Movers, Nestlé Philippines recognizes the leadership and competency contributed by its female employees. This initiative reflects Nestlé’s commitment to gender balance in the workforce.
Nestlé also ensures an accessible environment for its employees with disabilities. Adhering to local legislation, the Company provides them designated ramps, toilets, parking spaces, access audits, among others. In July 2016, in observance of the Persons with Disability (PWD) Month, the Company collaborated with the National Council on Disability
Affairs (NCDA) to conduct “NesTalk: Understanding #ThisAbility.” The session was the pilot run of the newly launched NesTalk, a platform for sharing powerful stories and ideas among Nestlé employees and meant to be a channel for learning, engagement, and inspiration. This first ever NesTalk helped raise awareness
Women Movers Award
PWD-Friendly Workplace
Employee Diversity and Inclusion
and understanding of the needs and potential of the PWDs in Nestlé’s valued workforce. In addition, Nestlé has reached out to relevant institutions which can potentially be partners in employing differently-abled individuals.
RESERVED PARKING
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Health and SafetyThe culture of safety is inculcated in every employee of Nestlé. The Nestlé Safety Management System based on OHSAS 18001 ensures its practice is in place. Programs such as LSR (Life-Saving Rules), One Minute to Save a Life, BBFS (Behaviour Based Feedback System),
Fire Safety programs, Safety, Health and Environment Alerts, and Safety Awareness campaigns are conducted regularly. Nestlé does weekly and monthly performance reviews on site and at market level for safety.
Health and SafetySite audits are done on an
annual basis to validate performance. Nestlé uses measures such as total injury rate. In 2016, the Company reduced its injury rate from previous year by 19%. In 2017, the Company aims to reduce it further by 50% and achieve zero by 2018.
The graph below shows Nestlé’s actual Total Injury Rate (including first aid incidents for the market). It shows that in most of the injuries that the Company has had, Nestlé was able to reduce the injury rates for first aid cases, beyond first aid cases, restricted work and lost time through the years.
Injury Rate
2013 2014 2015 2016
*Recordable Injury Rate does not include first aid; Injury rate = (number of injuries/man hours) x 1,000,000
0.19
Beyond First Aid
Restricted Work
Lost Time
20162015
First Aid
0.31
0.52
2.19
0.3
0.21
1.48
0.26
0.17
1.53
0.27 0.2
2014
Total Injury Rate (First Aid +Lost Time-Beyond First Aid-Restricted Work)
Total Injury Rate (Lost Time+Beyond First Aid+Restricted Work)
4.71 1.48 3.21 1.02 2.26 0.78 2.15 0.62
54.2% Reduction
57.94% Reduction
First Aid Minor injury cases where treatment could be self-administered or provided by a first-aider or licensed health professional.
Beyond first-aid Treatment can only be provided by a licensed health professional. Lost Time The affected person is away from work to rest, recover, or be treated for one or more calendar days after the incident. Restricted-work The affected person is unable to fully function but can still perform some tasks for one or more calendar days after the incident.
G4-LA6
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Life Saving Rules
Life Saving Rules (LSR) were launched market wide in 2012 to protect Nestlé’s most valuable asset-the Company’s people. LSR are identified set of rules that are all linked to the main causes of injury across the Company, further solidifying
the Nestlé global commitment to health and safety at the workplace. The program has been instrumental in sustaining double digit reduction in total injury rate year on year. LSR training and orientation is done through the LSR Playroom-an interactive training
Health and Safety
platform to eliminate ambiguities on how to comply with the rules. In 2016, the new LSR Playroom version 2 was launched in the Cabuyao factory featuring more interactive and focused learning modules and activities.
For the second year in a row, Nestlé Philippines has won 1st place in the Safe by Choice category of the Nestlé Global Safety and Health Awards for its One Minute to Save a Life initiative. The award is given by Nestlé S.A. to the market that shows the best initiative in safety management.
67% Decrease in the number of injuries from 2012 to 2015
The Philippines is the first ever market to win back to back gold in the Global Safety and Health Awards. With the implementation of the initiative, NPI was able to see a 67% decrease in the number of injuries from 2012 to 2015.
A strong sense of ethics is what drives Nestlé as an organization. It is upon this foundation, strengthened by high standards of corporate governance policies and management practices, that the Company can sustain doing good for its stakeholders.
Governance and Ethical Standards
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Board Structure and Process
The members of the Board of Directors (BOD) of Nestlé Philippines, Inc. are an elected set of people who possess outstanding qualifications, embody the corporate values, and are well-equipped to perform their duties and responsibilities to ensure that the Company operates and functions at its best in a fast-paced and competitive environment. Nestlé implements certain regulations governing the conduct of its employees, management staff, and members of the Board.
Board Functions, Rights, and Duties
Nestlé’s Board of Directors has the sole authority to determine, police, and conduct the ordinary business of the corporation as it exercises discretion and judgment on these matters within the bounds of the law. The Board appoints officers of the corporation and delegates authority of management. All actions must be collegial, agreed upon in a meeting duly convened for the purpose. Every Nestlé Board Director has the right and duty to:
• Determine policy, set strategy, and approve budget, business plans and performance measurements (e.g. MBS, OPL, CAPEX); • Ensure integrity of accounting and financial reports; • Appoint/select and replace key managers and determine their remuneration; • Act as guardian of business, assets and property; • Submit annual reports to the shareholders; and • Create and delegate some of its authority to one or more Executive Committees
Board Structure and ProcessQualifications of a Board Director
The Board of Nestlé Philippines, Inc. must be able to meet all legal requirements such as: • Ownership of at least one (1) share • Registration of share in his/her name during his/her term • Majority of the board should be residents of the Philippines
Furthermore, NPI Board Directors must be: • Committed to the common objective of the Company; • Committed to the Nestlé Corporate Business Principles, Nestlé Code of Business Conduct, and all other policy documents of the Company; • Holder of a university degree in a discipline in arts and science, law, engineering, economics, finance, medicine, philosophy, or other equivalent fields of learning; • Constantly abreast with the latest developments in his field of engagement; • Of strong moral conviction and subscribes to the core values of the Company; • Assertive but open to engage in healthy debate in conflict resolution; and • Of proven integrity and good standing in the business community
Election of Directors
The election of Directors to the Board is held during the Annual Stockholders’ Meeting of the Company, which takes place every fourth Monday of May. All Directors must formally accept their election upon being elected. They serve for a term of one (1) year, or until the next Annual Stockholder’s Meeting. In
case of any vacancy in the Board due to resignation or other causes, the remaining directors shall elect a new director whose term expires on the next Annual Stockholders’ meeting. The role of an NPI Board Director is fiduciary in nature. He/she therefore must act with diligence, loyalty, and obedience.
G4-34
G4-40
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Board Structure and Process
Mandeep Chhatwal Chief Finance Officer
Juan Jose Aranols Finance and Control and Portfolio Strategy for Zone Asia Oceania and Africa
Carmen Melissa Antonio Human Resources Director
Joseph Eugene David Country Business Manager for Wyeth Nutrition
Peter Winter Technical Director
Alfredo Jojo Dela Cruz Sales Director
Dennis Austriaco Business Executive Officer of Coffee and Creamer Creations
Ernesto Mascenon Head of Corporate Affairs
Jacques Reber Chairman and CEO
All Board Members of Nestlé Philippines, Inc. are Executive Directors.
Board of Directors
The Chairman
The Chairman has distinct duties from the Board of Directors. He/ she is mandated to:
• Organize the frequency, time, and priority matters to be covered by the BOD in the ensuing year; • Lead the BOD in ensuring the practice and guardianship of a culture of good governance in the Company; • Encourage open discussions to inspire a pro-active approach to adopting policies and measurements to promote good governance; • Lead the BOD in considering the creation of an Executive Committee, Compliance, Ethics, Regulatory, Audit, and other Committees that will implement policies on compliance, corporate governance, and good corporate citizenship; and • Task the Executive Directors to adopt programs to ensure good governance is included in their business plans and strategies for the long-term, and requires them to render regular reports at every Board meeting.
The Corporate Secretary
The Corporate Secretary must be a Filipino citizen; however, he/she need not be a Director of the Company. He/she shall be present at all Board meetings and is expected to:
• Set the agenda of the BOD meetings, provide due notice to the Directors, and record faithfully the minutes of the meetings;
• Provide inputs and support to the Chairman in developing policies and programs for the BOD in promoting a culture of good corporate governance in the Company; and
• Submit reports to the Securities and Exchange Commission as required by the Corporation Code and its rules and regulations, and to such other government bodies regulating the activities of the Company.
Jacques Reber
Bianca Wong
G4-38
G4-39
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The Treasurer
The Treasurer is selected by the Board of Directors and may not necessarily be a member of it. He/she is expected to: • Have custody of all the money, securities and values of the Company and shall keep regular book of accounts. • Deposit and withdraw the money, securities and value into a banking institution in the City of Manila, Philippines as per the direct advice of the Board of Directors. • Perform all his/her other duties incident that is assigned by the Board of Directors.
Agenda of the BOD Meeting
Board of committees
The Board has formed committees to support certain functions and help in corporate governance. All committees have their own sets of rules in accordance with their respective objectives.
The monthly BOD meetings shall primarily cover Company policies, business plan and strategy, management supervision, and matters deemed within the purview of the former. The Chairman, along with the Corporate Secretary, is tasked to set the tone in the selection of subjects to be included in the agenda. Every Director of the Company is obliged to propose matters or issues to be discussed during the said meetings. Furthermore, the agenda shall be organized in an efficient manner, considering the relevance of the matters to be included, and the time allotted for the meeting. The agenda shall also be duly filed with the BOD Minutes Book of the Company.
Board Structure and ProcessExecutive Committee
• There are two Executive Committees created by the BOD; its composition is determined by the BOD as well. • The Executive Committees are chaired by the Chairman of the BOD. • The agenda and frequency of the meetings of the Executive Committees are determined by the Chairman. • Nestlé in the Market Committee (NiMCom): This Executive Committee monitors the business performance of the Company with focus on driving growth and achieving set targets. This Executive Committee also steers the long-term strategic directions of the business. Furthermore, it continuously explores initiatives in good corporate governance, which it recommends to the BOD for approval and carries out implementation once approved. • The meetings of these Executive Committees are duly recorded and filed.
Other governance informationGeneral Principles of Governance: • Nestlé recognizes the rights and responsibilities of shareholders. • Nestlé upholds the equitable treatment of shareholders, respecting the principle “one share – one vote”. • The Board of Directors of Nestlé is accountable to the shareholders. Its members act on a fully informed basis, in good faith, with due diligence, competence, and care in the best interest of the Company. • It is incumbent upon the Management and all employees of Nestlé, in the exercise of its authority, and in the performance of their duties, to act with fairness and honesty, promote and accept accountability, encourage transparency, and observe and foster a high level of commitment to professional ethics and integrity.
Mandeep Chhatwal
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Board Structure and ProcessRemuneration
The By-Laws of the Company provide that Directors shall not receive any salary or compensation for their services. In relation to this, the BOD has delegated to the shareholders of the Company the discretion to remunerate its Directors concurrently serving as executive officers.
Conflict of Interest Policy
This policy is implemented to avoid conflict between personal interests of all employees including the Board members or of a third party with the interests of Nestlé. The Company condemns any act of corruption or bribery that may affect its management and the values upheld by each employee. Conflict of interest shall be avoided at all times.
Membership to associations
ASEAN Food and Beverage Alliance (AFBA) Arise Philippines Corporate Network for Disaster Response (CNDR) Employers’ Confederation of the Philippines (ECOP) European Chamber of Commerce of the Philippines (ECCP) Food Industry Asia (FIA) Global Compact Network Philippines Grow Asia Infant & Pediatric Nutrition Association of the Philippines (IPNAP) League of Corporate Foundations (LCF) Makati Business Club (MBC) Management Association of the Philippines (MAP) People Management Association of the Philippines (PMAP)
Philippine Business for the Environment (PBE) Philippine Association of National Advertisers (PANA) Philippine Business for Social Progress (PBSP) Philippine Chamber of Commerce & Industry (PCCI) Philippine Chamber of Food Manufacturers, Inc. (PCFMI) Philippine Disaster Resilience Foundation (PDRF) Philippine-Swiss Business Council (PSBC) Pollution Control Association of the Philippines (PCAP) Supply Chain Management Association of the Philippines (SCMAP) Wallace Business Forum (WBF)
Code of Ethical Behavior
The Nestlé Corporate Business Principles prescribe values and principles which the Company has committed to worldwide. In relation, its Code of Business Conduct, on the other hand, specifies and helps the continued implementation of the Corporate Business Principles by establishing minimum standards of behavior in key areas. All possible situations that may occur are not covered by the Code. It is designed to provide a frame of reference against which certain judgments may be made. Employees should seek guidance when they are in doubt about the proper course of action in a given situation. Ultimately, however, it is the primary responsibility of each employee to “do the right thing,” which requires a commitment to these business values and principles.
Core Values
All Nestlé employees must comply with the Nestlé Corporate Business Principles. These values are practiced and realized every day through relevant business codes, policies, processes, and tools. Application and effectiveness are monitored through various channels, including CARE audits. To assist continuous improvement, Nestlé has introduced a formal commitment to provide training for these principles.
Accessible through the Company website, these principles touch on a comprehensive set of areas such as consumer welfare, human rights and labour practices, our people, suppliers and customers, and the environment.
G4-41
G4-16 G4-56
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Related Party Transactions
The Company has a policy that prohibits conflict of interest. Activities made outside of Nestlé that interfere with the employee’s responsibilities or if they create risks for the Company’s reputation or if they in any other way conflict with the interests of Nestlé are not to be pursued. This includes making fair and objective hiring and people development decisions.
Respect for Basic Human Rights
Nestlé Philippines respects personal dignity, privacy, and personal rights of all its employees and is committed to maintaining a proper decorum at the workplace free from discrimination and any kind of harassment on the basis of gender, religion, nationality, race, age and sexual orientation. The Company upholds the human rights of all people and ensures that its operations at all its work sites throughout the country protect these human rights. The Company likewise stands firmly against child labor, forced labor, sexual harassment, and all forms of corruption. These values are enshrined in the Company’s Code of Conduct.
Board Structure and ProcessEnsuring Compliance
2016
2015
2014 3
7
4
CARE Audits Conducted
Nestlé engages the services of independent international 3rd party auditor Bureau Veritas to audit the Company’s different worksites, including its co-manufacturers and key business partners. The audit, called CARE, monitors adherence to and observance of the prescribed Safety, Health and Environment, Labor Standards, Business Integrity, Human Rights, and Security practices. Annually the Company also conducts an independent Contempo audit,
Anti-Corruption and Anti-Competitive Behavior
In Nestlé, compliance with all applicable laws and regulations must never be compromised. Additionally, employees consciously adhere to internal rules and regulations as they apply in a given situation. These internal rules specific to the Company are what is required by the law. The Company did not receive any reported incident of violation of such laws.
Contempo audits are done annually
which evaluates compliance by Nestlé Philippines and all its 3rd party suppliers to labor laws, standards, and regulations particularly on the use of 3rd party or non-regular workers. All suppliers covered by an audit requirement were audited using a third party auditor, Bureau Veritas, based on local legislation requirements and Nestlé internal policies and standards. All the sites were found compliant with these criteria.
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Business Continuity Management
Guided by a robust Business Continuity Policy focused on building organizational preparedness and resilience against natural and man-made disruptions, Nestlé recognizes the Philippine disruption landscape and puts primacy on ensuring continuity in all critical business functions. Business Continuity is business-owned and process driven, it delivers proven capability to manage business disruptions, protects people and helps ensure supply during disruptions. Incident response plans are continually reviewed and calibrated as the organization acknowledges severe and unpredictable weather patterns as the ‘new normal’. In 2016, 31 drills of critical process functions as well as 67 safety and medical drills were carried out. In the event of disruptive activity, emergency response teams have been organized across the Company’s sites to conduct evacuations and ensure the safety of staff and personnel. Moreover, preparedness is further enhanced
by buffer stocks of the logistical needs in case of disruptions. These sites are also equipped with power generators, and/or power plants to provide alternative sources of electricity in times of emergency. During disruptive events, keeping communication lines open and viable is of critical importance. To achieve this, the BCM plan has employed satellite phones across operations while also maintaining a BCM hotline. Proactive typhoon advisories are also sent out and quick reference guides detailing what to do in times of incidents
are distributed to engage each member of the organization. Collaboration with government agencies, volunteer associations, and cause-oriented groups both locally and internationally is critical in planning, response, and mitigation. Nestlé began putting in place a Rapid Deployment Force situated near the Rockwell building consisting of highly-trained, equipped an off-site mobile 3rd party team that will quickly respond to incidents. This will be launched in the 2nd quarter of 2017.
Disaster response for employees
The Philippines is visited by an average of 20 typhoons per year. Nestlé is committed to building a culture of preparedness by instituting process-driven information campaigns aimed at securing the personal safety of its employees. A weekly 10-day weather outlook is cascaded throughout the organization together with text advisories sent out twice a day before, during, and after a typhoon. Work cancellation and work-from-home protocols are also in place.
I would like to take this opportunity to thank those people who helped us last Wednesday October 21, 2015 to be out in our flooded place. To Sir JO SACE and his colleague who do not hesitate to rescue us and make rescue possible and successful even their life might be at danger too. To MS. MARIZ SEPILLO who make constant follow up on the status of rescue. To Erika Joy Bautista who constantly checks on my status and my family These are those individuals that by their very existence, actions and leadership, light a path to see more clearly through life, hardship and possible trauma. With this, they point the way for others to follow whatever goal may be accomplished. Also, I would like to extend my deepest gratitude to NBS and NPI for securing that their employee was safe during this kind of situation. It was such an immediate and effective response made by you. I am very proud that I became part of this company.
Again, on behalf of my family, our deepest gratitude for helping us .
Regards, ELPHIE R. MULDONG
Board Structure and ProcessG4-14
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Milk Code Compliance
As a manufacturer of infant formula,
follow-up formula and young
children’s milks, Nestlé Philippines
fully complies with the World Health
Organization’s International Code of
Marketing of Breast-milk Substitute
(dated 1981), the Philippine National
Milk Code or Executive Order No.
51 (dated 1986) and its Revised
Implementing Rules and Regulations
(dated 2006) which are designed
to promote safe and adequate
nutrition for infants through the
protection and promotion of
breastfeeding and by ensuring that
when the use of safe alternatives to
breast milk is deemed necessary,
it is done on the basis of adequate
and objective information
and through appropriate and
responsible marketing and
distribution.
In addition, Nestlé Philippines
adheres to the global Nestlé Policy
and Instructions for Implementation
of the WHO Milk Code. To further
strengthen operational Milk
Code compliance locally, Nestlé
Philippines has incorporated all
guidelines and legislation into its
company policy and procedure
manuals on the marketing of breast
milk substitutes. Furthermore,
Nestlé Philippines also carries out
internal and external independent
audits on Milk Code compliance
conducted by respected external
independent parties.
Nestlé has also put in place an
Ombudsman system wherein
complaints on Milk Code violation
may be sent. For complaints,
proceed to www.nestle.com.ph/
info/contactus. The page contains
separate contact details specific to
WHO concerns.
Board Structure and Process
In order to participate in concerted
efforts on the Milk Code’s
enforcement, Nestlé Philippines
is also a founding member of
the Infant and Pediatric Nutrition
Association of the Philippines
(IPNAP) to promote responsible
business practices and ethics,
uphold food safety standards,
and strengthen the compliance
to the Philippine National Milk
Code through multi-stakeholders
dialogues between the public and
private sectors.
Responsible Advertising
Nestlé Philippines strictly abides by the country’s laws and regulations on advertising. The Company complies with the Ad Standards Council provisions not to mention competitors directly in its ads nor to portray them inaccurately. The Company also follows global guidelines set by the Nestlé Consumer Communication Principles, a set of guidelines that define what constitutes responsible and ethical, truthful and credible, and valuable and informative communication. In line with this, Nestlé ensures that all its claims regarding health, nutrition, and wellness benefits of its products are scientifically supported. Considering the influence of media on children, Nestlé Philippines is committed to responsible marketing among children. Nestlé’s global commitment to the European Union (EU) Pledge program and the International Food and Beverage Alliance (IFBA) initiatives on using commercial communications to educate consumers on achieving balanced diets and active healthy lifestyles is a testament to this. The Company, alongside other food and beverage companies who are members of the Philippine Association of National Advertisers, is a signatory to the Philippine Pledge on “Responsible Advertising to Children”. Furthermore, the Company exercises caution when communicating to children less than 12 years old. The Company does not advertise directly to children under 6 years old. Advertising to children aged 6 to 12 is limited to promoting a healthy and balanced diet. Any sampling or promotional activities in schools are also done only with the consent of school authorities and are always accompanied by educational and nutritional messages.
G4-PR3, G4-PR6
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Materiality ApproachOutlined below is Nestlé’s process in identifying its most material aspects, considering GRI’s principles
Identification Prioritization Validation Review
• Review of impacts along the value delivery chain and defined boundaries where the Company has an impact.
• Impact assessment vis-a-vis global and national sustainable development concerns.
• Leveraged on existing stakeholder management processes to account for their views and expectations.
and prescribed process. The output, presented as a table on pages 153-155, serves as the main content of this report.
• Ranking of aspects based on perceived degree of impact to the business and to stakeholders.
• Risks and opportunities analysis
• CSV Council review and identification of key topics.
• Ensuring identified material aspects mirror stakeholders’ views and expectations
• Continuing evaluation of the relevance of identified material topics.
• Review of performance against global targets
G4-18
Nestlé’s Material Topics and Aspect Boundaries
Category and Relevance Material Aspects Aspect Boundary
Economic
Nestlé operates with the concept
of Creating Shared Value by
promoting inclusive growth
and remunerating its key
stakeholders.
Economic Performance
Indirect Economic Impacts
Procurement Practices
Internal and External
(suppliers, governments,
and local communities)
Internal and External
(customers, governments,
and local communities)
Internal and External
(suppliers)
Environment
Nestlé adopts policies that
guide the Company in keeping
its impacts to the environment
at the barest minimum level
and pursues programs that
will accelerate its progress on
environmental stewardship. The
Company extends the same
standards to be met by its
suppliers.
Materials, Energy, Water,
Emissions, Effluents and
Wastes, and Compliance
Supplier Environmental
Assessment
Internal (business
operations), and local
communities
Internal and External
(suppliers)
Materiality Approach
G4-19, G4-20, G4-21
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155154
Category and Relevance Material Aspects Aspect Boundary
Social: Labor Practices and Decent Work Nestlé attracts and enables the best people for the job. The Company’s success rests on the engagement level of its employees and extends the same standards to be met by its suppliers.
Employment, Training and Development, Occupational Health and Safety Supplier Assessment for Labor Practices
Internal (business operations) Internal and External (suppliers)
Social: Human Rights Nestlé upholds the protection of human rights beginning from its employees. The Company extends the same standards to be met by its suppliers.
Non-discrimination, Freedom of Association and Collective Bargaining, and Forced or Compulsory Labor Child Labor and Supplier Human Rights Assessment
Internal and External (suppliers) Internal and External (suppliers)
Category and Relevance Material Aspects Aspect Boundary
Social: Society Nestlé strives to maintain a harmonious relationship with its local communities and operates within the bounds of ethical standards.
Local Communities Local Communities Anti-corruption, Public Policy, Anti-competitive Behavior, and Compliance Supplier Assessment for Impacts on Society
Internal and External (local communities and partners) Internal (business operations) Internal and External (suppliers)
Social: Product Responsibility Nestlé develops products and implements projects that respond to the needs of our customers, particularly in the areas of health and nutrition.
Customer Health and Safety, Product and Service Labeling, and Marketing Communication Compliance
Internal and External (customers) Internal (business operations) Internal
Materiality Approach
G4-19, G4-20, G4-21 G4-19, G4-20, G4-21
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Stakeholders Channels of Engagement Material Topics Addressing Material Topics
Customers
• Daily customer touch points: distribution centers, personnel, phone, email, and social media channels
• Availability of products • Product requirements and processes • Personnel capability to address concerns
• Feedback on concerns
Consumers
• Daily customer touch points: distribution, personnel, phone, email, and social media channels
• Availability of products • Product requirements and processes • Personnel capability to address concerns
• c/o data handler
Business partners/ suppliers
• Supplier accreditation and audit
• Accreditation process and requirements • Product and service delivery
• Orientation • Greening the Supply Chain
Stakeholder ManagementG4-24, G4-26, G4-27
Stakeholders Channels of Engagement Material Topics Addressing Material Topics
Employees
• Online portals, face-to-face meetings and learning sessions • Annual performance appraisals • Periodic engagement survey
• Refer to OCS/Employee Engagement Survey results
• c/o HR
Parent Company
• Periodic meetings via conference call
• Profitability • Business growth and continuity • Cascade of global commitments
• Regular updates • Cross-functional meetings among business units to discuss action plans
Stakeholder Engagement Data Sheet
Stakeholder Managem
entG4-24, G4-26, G4-27
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Stakeholders Channels of Engagement Material Topics Addressing Material Topics
Regulators
• Annual bank examination • Regular audits • Regular correspondence through letters, email and meetings
• Accreditation process and requirements • Product and service delivery • Transparency and accountability
• Orientation • Greening the Supply Chain compliance to regulations • Conduct of internal and external audits • Formal explanations and responses to queries
Industry groups
• Periodic industry meetings and working committee meetings • Periodic conferences, seminars, and fellowship activities
• Continuing membership • Sharing of industry updates and common concerns related to product and service delivery • Voicing of significant business concerns • Discussion of industry trends
• Participation in meetings • Provision of opinion, inputs, and positions to the government led by Technical Working Group • Attendance to meetings, exhibits, conferences, seminars, symposia, and fellowship activities • Participation in meetings with key policy and decision makers • Active membership
Stakeholders Industry groups
Channels of Engagement
Material Topics • Setting of industry standards and market practice • Provision of avenues for personnel growth • Building of collaborative networks
Addressing Material Topics
Communities
• Regular engagement (site level)
• Livelihood (local hiring) • Capacity building activities • Health and Safety
• Community development programs • Partnerships
Stakeholder Managem
entG4-24, G4-26, G4-27 G4-24, G4-26, G4-27
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G4-33 G4-33
Nestlé CSV Report 2016
163162
GENERAL STANDARD DISCLOSURES
Page number / Direct answers External
Assurance
Strategy and Analysis
G4-1 Message from the Chairman and CEO, 11-13 Creating Shared Value, 19-25 Nestlé Philippines and the SDGs, 26-29
Yes, 160-161
Organizational Profile
G4-3 About Nestlé in the Philippines, 2 Yes, 160-161
G4-4 Nestlé Products, 8-9 Yes, 160-161
G4-5 No. 31 Plaza Drive, Rockwell Center, Makati City 1200 Philippines Yes, 160-161
Organizational Profile
G4-6 The Company only has operations in the Philippines. Yes, 160-161
G4-7 Effective September 30, 2016, the ice cream and chilled dairy business operated by Nestle Philippines, Inc (“NPI”) in the Philippines was sold to Froneri Philippines, Inc. The same was transferred as Nestle’s contribution to the joint venture entered into by and between its parent Company Nestlé S.A. (“Nestle”) and PAI Partners S.A.S. (“PAI”), via its wholly owned portfolio Company Riviera, the ultimate parent of the R&R Ice Cream Plc.
Yes, 160-161
G4-8 About Nestlé in the Philippines, 2 Yes, 160-161
G4-9 Economic Value Creation, 5 Employee Diversity and Inclusion, 126-129
Yes, 160-161
G4-10 Employee Diversity and Inclusion, 126-129 Yes, 160-161
G4-11 The Company had 4 CBAs from 2014-2016, with an estimated total of 2,143 employees covered by the CBAs.
Yes, 160-161
G4-12 Creating Shared Value, 19-25 Greening the Supply Chain, 80
Yes, 160-161
G4-13 There were no significant changes in the Company during the reporting period
Yes, 160-161
Commitment to External Initiatives
G4-14 Business Continuity Management (BCM), 148-149 Yes, 160-161
G4-15 About this report, 15 Yes, 160-161
G4-16 Membership to Associations, 144 Yes, 160-161
Identified Material Aspects and Boundaries
G4-17 Our Business, 4-5 Yes, 160-161
G4-18 Materiality Approach, 152 Yes, 160-161
G4-19 Nestlé’s Material Topics and Aspect Boundaries, 153-155 Yes, 160-161
G4-20 Nestlé’s Material Topics and Aspect Boundaries, 153-155 Yes, 160-161
G4-21 Nestlé’s Material Topics and Aspect Boundaries, 153-155 Yes, 160-161
G4-22 Whenever applicable, footnotes are placed in the body and the appendices to explain restatements.
Yes, 160-161
G4-23 No changes in scope and aspect boundaries from the previous report.
Yes, 160-161
This report has been prepared ‘in accordance’ with GRI’s G4 Sustainability Reporting Guidelines’ Core option. The GRI Content Index below indicates the reported disclosures and the location of information in this report. The Assurance Statement can be found in pp. 158-159.
GRI G4 Content IndexGRI Content Index
G4-32
Nestlé CSV Report 2016
165164
Stakeholder Engagement
G4-24 Stakeholder Management, 156-159 Yes, 160-161
G4-25 Creating Shared Value, 19-25 Yes, 160-161
G4-26 Stakeholder Management, 156-159 Yes, 160-161
G4-27 Stakeholder Management, 156-159 Yes, 160-161
Report Profile
G4-28 Reporting Period and Scope, 16 Yes, 160-161
G4-29 2013 Creating Shared Value Report Yes, 160-161
G4-30 This year, we are reporting triennially but moving forward, we
will be reporting biennially
Yes, 160-161
G4-31 Contact Details, 172 Yes, 160-161
G4-32 Reporting Standards and Frameworks, 16
GRI G4 Content Index, 162-171
Yes, 160-161
G4-33 Assurance, 17
Independent Assurance Statement, 160-161
Yes, 160-161
Governance
G4-34 Board Structure and Process, 138 Yes, 160-161
G4-38 Board of Directors, 140-143 Yes, 160-161
G4-39 The Chairman, 141 Yes, 160-161
G4-40 Qualifications of a Board Director, 139 Yes, 160-161
G4-41 Conflict of Interest Policy, 144 Yes, 160-161
Ethics and Integrity
G4-56 Core Values, 145 Yes, 160-161
SPECIFIC STANDARD DISCLOSURES
DMA and
Indicators
Page number/direct answer Reason(s) for
Omission(s)
External
assurance
CATEGORY: ECONOMIC
Economic Performance
G4-DMA Economic Value Creation, 6-7 Yes, 160-161
G4-EC1 Economic Value Creation, 5-6 Yes, 160-161
Indirect Economic Impacts
G4-DMA Nestlé Philippines and the SDGs, 26 Nutrition, 31-55 Rural Development, 82-103 Helping Society, 105-111
Yes, 160-161
G4-EC8 Nestlé Philippines and the SDGs, 26 Nutrition, 31-55 Rural Development, 82-103 Helping Society, 105-111
Yes, 160-161
Procurement Practices
G4-DMA CSV in Nestlé’s Value Chain, 20-21 Rural Development, 82-103
Yes, 160-161
G4-EC9 CSV in Nestlé’s Value Chain, 20-21 Rural Development, 82-103
Yes, 160-161
GRI Content Index
Nestlé CSV Report 2016
167166
CATEGORY: ENVIRONMENTAL
Materials
G4-DMA Material Efficiant Packaging and Waste Recovery, 67
Yes, 160-161
G4-EN2 Material Efficiant Packaging and Waste Recovery, 67
Yes, 160-161
Energy
G4-DMA Energy Efficiency, 74-79 Yes, 160-161
G4-EN5 Energy Intensity, 75 Yes, 160-161
G4-EN6 Energy Intensity, 75 Yes, 160-161
Water
G4-DMA Water Management in Nestlé Operations, 58-61 Advocating Water Stewardship, 62-63
Yes, 160-161
G4-EN8 Water Intensity, 59 Yes, 160-161
Emissions
G4-DMA Greenhouse Gas Intensity, 77-79 Yes, 160-161
G4-EN18 Greenhouse Gas Intensity, 77 Yes, 160-161
Effluents and Waste
G4-DMA Managing Solid Waste, 64-73 Water Management in Nestlé’s Operation, 58-61
Yes, 160-161
G4-EN22 Water Management in Nestlé’s Operation, 58-61
Yes, 160-161
G4-EN23 Managing Solid Waste, 64 Disposal Methods of Non-Hazardous Waste Generated, 66 Balik Baterya Program, 72
Yes, 160-161
Compliance
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-EN29 We received no significant fines or
notices of violations for environmental
non-compliance for the period covered.
Supplier Environmental Assessment
G4-DMA Greening the Supply Chain, 80 Yes, 160-161
G4-EN32 Greening the Supply Chain, 80 Yes, 160-161
CATEGORY: SOCIAL – LABOR PRACTICES AND DECENT WORK
Employment
G4-DMA Investing in Human Capital, 112-135 Yes, 160-161
G4-LA1 Employee Diversity and Inclusion, 126-129 Yes, 160-161
G4-LA2 Employee Benefits and Compensation, 122-125
Yes, 160-161
Occupational Health and Safety
G4-DMA Health and Safety, 132-135 Yes, 160-161
G4-LA6 Injury Rate, 133 Yes, 160-161
Training and Education
G4-DMA Training and Development, 116-121 Yes, 160-161
G4-LA9 Total Training Hours by Gender, 119
Total Training Hours by Position, 121
Yes, 160-161
Supplier Assessment for Labor Practices
G4-DMA Greening the Supply Chain, 80 Yes, 160-161
G4-LA14 Greening the Supply Chain, 80 Yes, 160-161
GRI Content Index
Nestlé CSV Report 2016
169168
CATEGORY: SOCIAL – HUMAN RIGHTS
Non-discrimination
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-HR3 No incidence reported, no aspect of
operation within our organization is
identified to have significant risks.
Yes, 160-161
Freedom of Association and Collective Bargaining
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-HR4 No aspect of our operations within our
organization was found to have violated
or is at significant risk of violating
the right to exercise the freedom of
association and collective bargaining.
Yes, 160-161
Child Labor
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-HR5 No incidence reported, no aspect of
our operations within our organization
was identified to have existence of child
labor.
Yes, 160-161
Forced/Compulsory Labor
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-HR6 No incidence reported, no aspect of our operations within our organization was identified to have existence of forced labor.
Yes, 160-161
Supplier Human Rights Assessment
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-HR11 No incidence reported, no aspect of our operations and supply chain was identified to have negative human rights impacts
Yes, 160-161
CATEGORY: SOCIAL – SOCIETY
Local Communities
G4-DMA Rural Development, 82-103 Helping Society, 105-111
Yes, 160-161
G4-SO1 Rural Development, 82-103 Helping Society, 105-111
Yes, 160-161
Anti-corruption
G4-DMA Code of Ethical Behavior, 145 Yes, 160-161
G4-SO5 No confirmed incidents of corruption
reported in 2014 to 2016.
Yes, 160-161
Public Policy
G4-DMA Code of Ethical Behavior, 145 Yes, 160-161
G4-SO6 Our businesses made no contributions
to political parties.
Yes, 160-161
GRI Content Index
Nestlé CSV Report 2016
171170
Anti-competitive Behavior
G4-DMA Code of Ethical Behavior, 145 Yes, 160-161
G4-SO7 No legal actions were filed against the
Company regarding anti-competitive
behavior, violation of antitrust and
monopoly laws.
Yes, 160-161
Compliance
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-SO8 No significant fines and sanctions. Significant fines per Securities and Exchange Commission is greater than PHP 50,000.
Yes, 160-161
Supplier Assessment for Impacts on Society
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-SO10 No incidence reported, no aspect of our operations and supply chain was identified to have negative impacts on society
Yes, 160-161
CATEGORY: SOCIAL – PRODUCT RESPONSIBILITY
Customer Health and Safety
G4-DMA Nutrition, 30-55 Yes, 160-161
G4-PR1 Access to Nutritious Food, 32 Yes, 160-161
Product and Service Labelling
G4-DMA Nutrition Education, 36-47 Yes, 160-161
G4-PR3 Nutrition Education, 36
Milk Code Compliance, 150
Yes, 160-161
Marketing Communication
G4-DMA Nutrition Education, 36-47
Milk Code Compliance, 150
Responsible Advertising, 151
Yes, 160-161
G4-PR6 Milk Code Compliance, 150 Yes, 160-161
G4-PR7 No reported incidents of non-
compliance reports against the
Company.
Yes, 160-161
Compliance
G4-DMA Ensuring Compliance, 147 Yes, 160-161
G4-PR9 No fines paid on non-compliance with
laws and regulations concerning the
provision and use of products and
services.
Yes, 160-161
CONTACT DETAILS We would like to hear from you. For comments or inquiries on Creating Shared Value Contact us: [email protected],com This report is printed on 9lives Offset, a paper that is manufactured from 100% recycled fiber.
G4-31
Nestlé Philippines, Inc.
©2016, Corporate Affairs Department
Nestlé Center, 31 Plaza Drive
Rockwell Center, Makati City, 1200 Philippines www.Nestlé.com.ph