Nestle Nigeria PlcNSENG: NESTLE

2024 Sustainability report

Mar 3, 2025 at 9:15 AM UTC · Issued by Nestle Nigeria Plc

REPORTING ON SUSTAINABLE FINANCIAL PRINCIPLES FOR THE

NIGERIAN CAPITAL MARKET

Nestlé Nigeria PLC

Principle 1: Environmental, Social and Governance (ESG) Considerations

Regulated entities should put in place effective governance structures and consider the impact of their operations and activities on the environment and society.
The entities should innovate and implement measures that promote the good of the communities and the natural environment in which they operate. Factors to be considered include:
- - Efficient use of resources, such as energy and water;
  - Effective waste management;
  - Compliance with applicable labour and social standards; and
  - Alignment of their community development programmes with Nigeria's overall goal for sustainable economic and social development.
- They should establish appropriate ways to encourage and promote desired behaviours of employees to meet ESG standards.

Kindly disclose the implementation status of Principle 1 in your entity by ticking ( √ ) in the appropriate cells in the table below and offer a brief description of your efforts so far.

Indicators	Completed	In	Yet to	Not		Brief description of action(s) taken towards implementation
		progress	start	applicable
1.1. Entities should develop appropriate policies to	X					The Nestlé Corporate Business Principles specifies the foundation
integrate ESG considerations into decision-making						for Sustainability and Creating Shared Value. It also highlights the
processes and enterprise risk management						10 principles for business operations including ESG considerations.
framework.
					Other policies like the Nestlé Policy on Environmental

						Sustainability, Nestlé Management Systems Policy and Code of
						Business Conduct also reflect the company's ESG standards and
						commitments.

1.2. Entities should also develop robust and transparent	X					The Nestlé Code of Business Conduct and Ethics specifies and
procedures, which entail clear governance structures,						helps the continued implementation of the Corporate Business
limits of authority, standards and codes of conduct,
					Principles by establishing certain nonnegotiable minimum
to support implementation of their policies and the
Principles.						standards of behavior in key areas. It also provides a frame of

						reference against which to measure company activities and
						governance structures.

					1

Indicators

Completed

Yet to

Not

Brief description of action(s) taken towards implementation

progress

start

applicable

1.3. Entities

should

put

in place

programmes

for

Nestlé Nigeria implements initiatives aimed at managing our

managing their environmental and social footprints1.

environmental and social footprints. These initiatives focus on

The programmes should reduce greenhouse gas

CO2 emission reduction, energy efficiency, water conservation,

emissions, promote efficient use of water and energy,

reduction of virgin plastics, water regeneration, achieving plastic

and improve waste and construction management.

neutrality, promoting regenerative agriculture, and optimizing

vehicle capacity. Through these efforts, we strive to enhance

sustainability and resource efficiency.

1.4. Entities should outline the minimum labour and social

Nestlé Nigeria fully supports the United Nations Global Compact's

standards they

will apply in

managing

their

(UNGC) guiding principles on human rights and labour and aims to

operations consistent with good practice, such as the

provide an example of good human rights and labour practices

United Nations Declaration of Human Rights and the

International Labour Organisation Charter.

throughout our business activities. Nestlé Nigeria also complies

with all applicable Nigerian Labor Laws.

1.5. Entities

should

develop

and promote

Nestlé continues to create Shared Value for stakeholders in its

investment in

community

projects

and

communities by investing in projects to improve livelihoods. Some

initiatives with the aim of contributing to the

sustainable development of their host

of these projects include:

communities.

1. Improving access to water and sanitation: 16 new WASH

facilities commissioned in the past 4 years, yielding over 14 million

litres of clean safe water to our host communities, in 2024, Nestlé

Nigeria commissioned water and sanitation facilities in two schools

within our host communities - Wesley School 2, Sagamu, Ogun

State and Local Government Primary School, Ketu Adie Ovie, Ado

Odo Ota , both in Ogun State.

Indicators	Completed	In	Yet to	Not	Brief description of action(s) taken towards implementation
		progress	start	applicable
					Through the new facilities, over 930 learners and teachers in these
					schools now have access to clean and safe drinking water and
					sanitation facilities.
					2. Youth empowerment:
					i. Technical Training program at the Nestlé Technical Training
					Centers in Agbara, Abaji and now Flowergate
					ii. Community scholarship scheme for secondary and tertiary
					education
					3. Nestlé Cares Mentoring Program
					Through the program, Nestlé Nigeria and REVAMP Africa are
					equipping young individuals across the six geopolitical zones in the
					country, including our host communities with the skills, knowledge,
					and confidence needed to excel in an ever-evolving world.
					The Youth Leadership Mentoring Programme aims to instill the
					right values, skills and attitudes requisite for success and positive
					personal development from an early age in children.

1.6. Entities should articulate, in their sustainable	X	Nestlé's corporate business principle, which includes our
finance policies and procedures, ESG		responsible Sourcing Standard, is shared and aligned with all
procurement standards for suppliers,
	vendors on registration. The policy covers Environmental
contractors, and other third-party service

providers

	Indicators				Completed	In	Yet to	Not		Brief description of action(s) taken towards implementation
						progress	start	applicable
										sustainability and social care, Compliance, Human Rights, Safety
										and Health etc.
										Nestle's Corporate Business Principles

1.7. Entities should monitor their service providers						Nestlé retains the right to audit the activities of service providers to
to ensure compliance	with	the	ESG						ensure compliance and carries out spot checks from time to time
standards.
									as required.


1.8. Entities should	regularly	conduct internal		X				The 2024 external audit of ESG practices was performed by Ernst
reviews of the integrity and quality of ESG						and Young.
practices and procedures for continuous

improvement.	External	audit	of	ESG
practices and procedures may also be
undertaken.
1.9. Entities should set criteria for reporting their		X				Nestlé has engaged EY to provide independent assurance of
ESG risk assessment processes	on	their						thirteen selected Environmental, Social and Governance (ESG) key
business operations and activities.

										performance indicators (KPIs) of high strategic importance to our
										business. This assurance engagement was performed in
										accordance with the International Standard on Assurance
										Engagements (ISAE) 3000 to provide limited assurance. Nestlé
										obtained limited assurance for these KPIs to strengthen
										stakeholder confidence in the data we report and in anticipation of
										increased regulation of sustainability reporting and assurance.
										Reporting Scope and Methodology for ESG Key Performance
										Indicators

Principle 2: Collaborative Partnership and Capacity Building

Regulated entities should collaborate with stakeholders to raise awareness on ESG issues, build capacity, manage risks, developinnovative solutions and promote widespread action across the Nigerian financial system.

Kindly disclose the implementation status of Principle 2 in your entity by ticking ( √ ) in the appropriate cells in the table below and offer a brief description of your efforts so far.

Indicators

Completed

Yet to

Not

Brief description of action(s) taken towards implementation

progress

start

applicable

2.1 Develop an ESG policy e.g.

The Nestlé Corporate Business Principles specifies the foundation for

sustainable policy - to serve as a

Sustainability and Creating Shared Value

tool and strategic framework to

guide and support the entities in

the delivery of its sustainable

agenda.

2.2. Dedicate

Environmental

The Safety, Health and Environment (SHE) Department oversees,

Sustainable Office (ESO) to work

monitors, and coordinates the implementation of environment

assiduously

enshrining

the

related policies across the organisation. In addition, Nestlé Nigeria

organization the workings of its

has hired a Sustainability Manager who specifically oversees

sustainable policies.

environmental sustainability projects and policies

2.3. Develop structural mechanisms to

Same as 2.2 above

guide the implementation of the

structural policies and guidelines.

2.4. Have an

internal

capacity

To support Nestlé's implementation of sustainable polices and

support

the implementation

guidelines, in addition to the SHE team, Nestlé Nigeria has hired a

sustainable

policies

and

Sustainability Manager.

guidelines.

2.5. Engage and created the buy in of

The organization continues to carefully map, engaged and secured

key stakeholders to

support

the

the buy-in of key stakeholders including Government, regulatory and

implementation of the policies.

private sector to support implementation of its sustainable policies

2.6. Develop

and

implement

the

Our Policy on Environmental Sustainability documents our strategy in

entity's sustainable strategy.

relation to sustainability.

Principle 3: Financing of Priority Sectors of the Economy

Regulated entities should promote financing of priority sectors of the economy, while ensuring balance with ESG considerations.
In consideration of the nationwide efforts to catalyse the national economy, entities are expected to contribute to national rebirth by supporting priority sectors of the economy. To this end, entities should measure and disclose the level to which they have supported priority sectors.

Kindly disclose the implementation status of Principle 3 in your entity by ticking ( √ ) in the appropriate cells in the table below and offer a brief description of your efforts so far.

Indicators			Complete	In	Yet to	Not	Brief description of action(s) taken towards implementation
				progress	start	applicable
3.1. Entities should on the basis of verifiable		X
business plans/feasibility reports identify priority
sector(s) in which they operate by way of
providing financing/carrying out investments.
3.2. Entities should disclose products and services		X
designed to facilitate financing of priority
sectors of the economy.
3.3. Entities should report the monetary value of		X
actual	investments undertaken	in/products
and services invested in financing of priority
sectors of the economy.
3.4. Entities	should record and	report total		X
monetary value of assistance received from
government(s) for financing/investing in priority
sectors of the economy. This should cover items
such as:

Subsidies
Tax reliefs and tax credits
Financial incentives
Royalty holidays
Export promotion grants

Principle 4: Human Rights, Women's Economic Empowerment, Job

Creation and Financial Inclusion

Regulated entities will respect human rights, promote women's economic empowerment, support job creation andenhance financial inclusion.

Kindly disclose the implementation status of Principle 4 in your entity by ticking ( √ ) in the appropriate cells in the table below and offer a brief description of your efforts so far.

Indicators	Complete	In	Yet to	Not		Brief description of action(s) taken towards
		progress	start	applicable		implementation
4.1. Entities should balance the ratio of employment		X				We are committed to improving diversity and inclusion
between men and women and bridge the gap in						within the company. We are improving the male: female
favour of women.
					ratio year on year. With our Gender Balance Acceleration

						Plan.
						Nestlé puts further emphasis on increasing the proportion
						of women in the Managerial Cadre from less than 20% in
						2020 to 28% in 2024. This is another step in Nestlé's
						journey towards gender parity.

4.2. Entities should encourage policies that better the	X					To foster a supportive environment for employees and
lots of women, for e.g. building crèche; increasing						their families, Nestlé established the Nestlé Maternity
the current maternity leave from 3 months to 6
					Protection Policy which implements minimum standards
months; setting up of standing committees and
					and provisions to be applied across our company that
by-laws to protect sexual harassment in offices;
improving on toilet facilities to cover sanitary						strengthen maternal safeguards and help all our
requirements;						employees care for their children. This Policy embraces

						the key principles set out by the International Labour
						Organization Maternity Protection Convention
						(Convention C183), which is one of the most significant
						established tools to support gender equality and promote
					8

Indicators	Complete	In	Yet to	Not		Brief description of action(s) taken towards
		progress	start	applicable		implementation
						breastfeeding in the workplace. Specifically, it promotes
						five pillars:
					1.	Maternity protection including 18 weeks paid maternity
						leave in addition to their annual leave.
					2.	Employment protection and non-discrimination
					3.	Income protection
					4.	Healthy work environment
					5.	Flexible work arrangements
					6.	Conducive work environment to breastfeed
						We have established creches/baby rooms across all our
						sites. Guided by Nestlé's policy against discrimination,
						violence and harassment at work, the company has zero
						tolerance for sexual harassment. Our toilet facilities
						include adequate provisions for all sanitary requirements

4.3. Equal opportunities with respect to positions and	X					Nestlé Nigeria upholds the principle of non-
capacity building;						discrimination, equal employment opportunities and

						diversity in its recruitment process. Offering all
						employees equal opportunities for promotion based
						solely on merit.

4.4. Quarterly seminars/sessions on economic savings	X					Nestlé organizes regular sessions for empowerment of
and empowerment;						employees including economic and financial awareness


4.5. Entities should collaborate on how to design				X
programs/projects that will encourage macro
small medium enterprises to be active in the
financial market.

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