Nestl Sustainability Overview

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Nestlé Sustainability Overview
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Nestlé SA Facts

• Nestlé is largest food and beverage company
  in the world
• 275,000 employees
• Over 85 countries
• Over 100 Billion in annual sales
• Diversified Portfolio

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Nestlé SA Has Long Supported Sustainability
Initiatives Around the Globe

• Corporate Strategy Nutrition, Health and
  Wellness
• Objectively Recognized as Global Sustainability
  Leader

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What is Sustainability?
Sustainability is meeting the needs of the
present without compromising the ability of
future generations to meet their own needs.
United Nations. 1987. "Report of the World
Commission on Environment and Development."
General Assembly Resolution 42/187, 11 December
1987.
Sustainability Encompasses Social, Economic and
Environmental Issues
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Environmental Sustainability Is Embedded Into
Nestlés Creating Shared Value Strategy
We believe that the true test of a business is
whether it creates value for society over the
long term"
Peter Brabeck-Letmathe, Chairman CEO, Nestlé
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Nestlé SA Sustainability Highlights

• Worlds biggest issue CO2 and Global Warming
• Nestlés most material issue Water
• Published Report on reduced metrics for carbon,
  energy, water, packaging and every year publish
  metrics at www.nestle.com
• Global Programs with sourcing that include
  membership in the Sustainable Agriculture
  Initiative (SAI), 4 Cs for Coffee sustainability
  at the source, ICI International Cocoa
  Initiative, Fair Trade for Partners Blend
  coffee in the UK.
• Specific initiatives for Nestlé Waters, Nestlé
  USA, Gerber and Nestlé Purina.

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Nestlé Has Demonstrated A Continuous Reduction Of
Our Environmental Footprint Over The Last 10 Years
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-3
-14
-30
-40
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Nestlé Has Reduced Packaging Material Use
By 385'000 Tons
From 1991 To 2008
Distribution in weight per material category
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At Nestlé Waters NA, The Focus on Environmental
Sustainability Started Ten Years Ago
2000 LEED Certification
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Early On, NWNA Adopted A Value Chain
Mentality Measuring Real Impact and Long Term
Solutions
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Package Lightweighting Has Had A Significant
Reduction on Total Carbon Impact

• Eco-shape will reduce our use of PET resin by 65
  million pounds in 2008.
• This will reduce our bottles life-cycle CO2e
  emissions
• -8 versus our previous 0.5L bottle
• -25 versus our 0.5L bottle ten years ago
• -30 versus similar bottles
• Additional 8 reduction planned for 2009 for
  total 16 reduction 2008 2009.

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Additional Benefits Of Packaging Reduction Are
Significant

• Reduced shrink wrapping on .5L cases by 14
• Reduced the size and weight of our labels since
  1998
• Eliminated 35.3 million lbs of corrugated
  cardboard in the last 10 year
• Light weighted caps in 2006 to save one million
  lbs

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Nestlé USA Sustainability Highlights Include

• Nestlés Anderson, Indiana Beverage factory is
  LEED certified and uses waste water recovery/low
  emission boilers
• Danville, Virginia (Confections) and
  Jacksonville, FL (Beverage) are members of EPA
  National Environmental Performance Track program
  for management systems, outreach and pollution
  prevention.
• At Solon, Ohio Prepared Foods factory, 90 fuel
  met with landfill methane.
• Freehold, NJ beverage factory turns spent coffee
  grounds into Java Logs (www.java-log.com)
• Certain confections have had package material
  reductions

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Nestlé Haagen-Dazs Our Partnership With
Researchers Is Visible To Consumers

• Häagen-Dazs is donating 250,000 to Penn State
  University and UC Davis to fund sustainable
  pollination and Colony Collapse Disorder research
  
• Goal To use the power and recognition of the
  Häagen-Dazs name to educate and engage Americans
  to learn more about honey bees and the struggle
  to keep these delicate and essential creatures
  safe and healthy

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Gerbers Packaging Conversion From Glass to
Plastic Has Many Sustainability Benefits
67 less solid waste! Reduction
of approximately 50 MM lbs to landfill
Lower Carbon Footprint 18 less Green House Gas
emissions! Reduction of 20,000
tonnes of CO2 eq (GHG)
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Renewable Energy Projects Are Becoming A Bigger
Focus for Nestlé
Fremont Plant Assessing
Installation of Wind Turbine. Initial tests show
that could produce enough to offset 100 of the
Fremont Waste Water Facility Electricity use!
Ft. Smith Plant Assessing
Solar Energy panels to offset portion of Plant
electricity use.
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Smartway Transport Partnership

• Partnership with the EPA
• Program Objective
• Reduce Environmental impact of supply chains
• Current Participants and their strategies
• Shippers
• Freight Carriers
• Logistics Companies
• Truck stops

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Advanced Truck Stop Electrification
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Advanced Truck Stop Electrification
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• www.epa.gov/smartway
• smartway_transport_at_epa.gov
• [phone]

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Transportation Initiatives

• Environmental Impact
• Rail/Intermodal
• Maximizing Weight
• 45,000 lbs
• Slip Sheets vs. pallets
• Double Stacking

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Carrier Utilization

• Drop/hook program
• Carrier to Customer
• Backhaul
• Private/Dedicated fleets
• Billing (ERS/EDI)

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Tough Bag

• TOUGH BAG SAVINGS OVERVIEW
• Reduction in Damage
• Additional Sustainability Benefits
• Approx Waste Reduction to Landfills 561 tons
• Reduction in Diesel (Returns/Disposal)
• Reduction in Labor Costs
• Reduction in Pesticide

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Tidy Cats

• NEW Tidy Cats Breeze
• Approximate Reduction in Landfill Waste for
  single cat HH (vs. Clay or scoop) 33

• Yesterdays News Benefits Include
• Made with 100 recycled material
• Impactful to the community
• Collected over 9MM lbs of recycled paper and
  purchased 17MM lbs of paper from area recyclers

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Tidy Cat

• Corrugate Box Benefits
• Corrugate high industry recycling rates
• Green packaging emphasis
• First product moving towards SFI certification
• in NPP Portfolio
• Avoid land-filling nearly 100 tons of plastic for
  every 100,000 boxes
  purchased instead of pails
• Source reduction of 0.51lbs/unit

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Can Usage

• NPP purchases about 10 of food cans in the U.S.
• Equivalent to
• 39,514 Tons of Aluminum (86)
• 32,157 Tons of Steel (14)
• All Cans 100 Recyclable

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Effect on the Environment

• By our estimation, only 15 of NPPs cans are
  recycled
• The Result
• 60,000 tons of recyclable material goes to
  landfills each Year
• If NPP can help increase can recycling to 50,
  (in line with
• U.S. average), the benefits would be
  substantial
• Save 53 million gallons of fuel
• Avoid 117,000 tons of greenhouse gas emissions
• Avoid 3,000 tons of sulfur dioxide nitrogen
  oxide
• Avoid land filling, littering or incinerating
  30,000 tons
• (468,000 cubic yards) of aluminum.

U.S. Environmental Protection Agency Data
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Challenges

• Obstacles to recycling
• Confusion
• Consumer awareness
• Convenience
• Availability of recycling programs nationwide
• Focus Areas Include
• Working with Marketing and Packaging to increase
  on-label/on-pack presence of recycling
  symbol/message
• Partnering with our customers to educate
  consumers in aisle and out-of store

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Questions?