Slide 1: Sustainability and Nestlé's long-term strategy
Sustainability and Nestlé’s long-term strategy Rob Cameron Global Head of Public Affairs and ESG Engagement
Slide 2: Our business is global, balanced and diversified
Our business is global, balanced and diversified 2022 sales of CHF 94.4 bn, with an underlying TOP margin of 17.1% Where we sell Europe What we sell 24% Beverages PetCare Nutrition & Prepared dishes (incl. coffee) Health Science & cooking aids North America 35% 27% 19% 17% 13% Greater China 6% Milk
Slide 3: Our strategy
Our strategy Food and beverages are core, including Nestlé Health Science and nutritional health products as an additional growth platform • Meet needs of modern time-constrained consumers with healthy, delicious, convenient products • Bring differentiated, premium innovations to market fast • Offer
Slide 4: Business case: transition to a just, regenerative food system
Business case: transition to a just, regenerative food system Systemic change is needed Shared value creation is key Unsustainable Regulatory Declining Supply chain Local sourcing Sustainable business models change yields resilience flexibility livelihoods Extreme Zoonotic Food Emissions reduction B
Slide 5: A broad sustainability agenda – with clear focal points
A broad sustainability agenda – with clear focal points 5 November 22, 2023 UBS
Slide 6: Good for you: bringing tasty, balanced diets within reach for billions
Good for you: bringing tasty, balanced diets within reach for billions Transparent reporting & support for balanced diets Healthy aging and longevity Active lifestyle support Nutritional balance Preventative health GUIDE people to enjoy more nutritious GROW ≥ HSR 3.5 & Specialized Nutrition by foods
Slide 7: Good for the planet: driving climate action
Good for the planet: driving climate action Climate: Regenerative agriculture: Packaging: Net zero by 2050* 50% raw materials by 2030 30% virgin plastic reduction by 2025 Interim targets Interim targets Progress • 20% GHG reduction by 2025 • 20% raw materials sourced by 2025 • Beyond peak virgin pla
Slide 8: Good for the planet: enhancing supply chain resilience
Good for the planet: enhancing supply chain resilience Human rights: Deforestation-free supply: Water: Assess direct supplier HRDD by 2025 100% for key materials by 2022 Stewardship & regeneration Progress Progress & targets Progress & targets • 10 salient human rights issues with • 99.1% for meat,
Slide 9: From sustainable to regenerative agriculture
From sustainable to regenerative agriculture Biodiversity Soil Increase plant and animal biodiversity Scale up farming practices that protect above and below the ground. soil health and increase soil organic matter. Farmers Water Livestock Reduce chemical farm inputs, optimize organic Integrate live
Slide 10: From plastic waste management to packaging sustainability
From plastic waste management to packaging sustainability Accelerating actions on circularity 2019 2020 2021 2022 2023 • Nestlé Institute of • Committed to reduce • Supporting waste collection • Conducted 20 Reuse pilots • Supporting 215 packaging Packaging Sciences virgin plastic use by programs, i
Slide 11: From deforestation-free to forest positive, sustainable landscapes
From deforestation-free to forest positive, sustainable landscapes Stronger risk management Conservation & reforestation Landscapes Starling satellite surveillance Restore natural forest landscapes via 15 landscape-level initiatives reshaping & on-the ground verification agroforestry & support for e
Slide 12: From risk management to integrated human rights actions: Cocoa
From risk management to integrated human rights actions: Cocoa Child labor monitoring & remediation system Income accelerator Trace, assess, address & report Expanded scope with new key focus 12 November 22, 2023 UBS
Slide 13: How our sustainability agenda comes together: Nespresso AAA
How our sustainability agenda comes together: Nespresso AAA nature-based, low carbon, profitable farming GUIDE REWARD TRANSFORM TRANSITION Technical assistance Premiums Invest/ facilitate Phase in mitigation/ adaptation to guide farmers in adopting: for quality practices implementation of via altern
Slide 14: Strengthening brand differentiation & consumer relevance
Strengthening brand differentiation & consumer relevance simple, short, relevant messaging Climate action Human rights Regenerative agriculture Animal welfare Water Soil 14 November 22, 2023 UBS
Slide 15: Embedding sustainability into Nestlé's governance process
Embedding sustainability into Nestlé’s governance process sustainability-linked KPIs deployed at multiple levels of the business Sustainability committee ESG council Creating Shared Value council • Board of Director level • Executive Board members • External advisor panel • Created March 2021 • Crea
Slide 16: Climate action has changed Nestlé's approach to sustainability
Climate action has changed Nestlé’s approach to sustainability Early action Operationalization accelerates Shared implementation Transparent & progressively yields better understanding alignment on product & builds credibility with more granular reporting on key of cost curves and scalability busine
Slide 17: Key takeaways
Key takeaways • Our sustainability agenda is broad; priorities and focus areas are clear • Our approach has evolved beyond ‘do no harm’ to having a positive impact on food systems at scale • We aim to drive innovative and pragmatic approaches in support of a just transition • Investment in sustainab