Nestlé in the United States

Nestl? in the United States

Creating Shared Value Report 2015

G4-28, G4-29, G4-30

Performance Summary

Nestl?'s performance indicators provide a focus for measuring and reporting Creating Shared Value, sustainability and compliance. This performance summary forms part of our communication on progress for the United Nations Global Compact Principles. Unless otherwise stated, performance indicators are for the year ending December 31, 2015. The references in the GRI column relate to the applicable indicator from the Global Reporting Initiative (GRI) G4 guidelines. We report against GRI G4 guidelines and indicators, in line with the material issues we need to address. The issues are identified through our stakeholder engagement process and they also shape the public commitments we have made. To provide transparency for our stakeholders, we've included the GRI G4 Content Index located at the end of this report, where we have indicated the correlation between GRI indicators, our key performance indicators and our commitments. This reporting year was important not just for Nestl? but for the United Nations, civil society and the private sector as a whole. In September 2015, 193 Member States of the UN adopted 17 new Sustainable Development Goals (SDGs) to define global priorities from now until 2030. We are reviewing our commitments against the SDGs and believe we should focus on specific goals where, by the nature of the business we are in, we feel we can maximize our impact on a global scale.

Nestl? has worked with dairy farmers throughout its 150-year history. In this photo, farmers deliver milk to the Anglo-Swiss Condensed Milk Company factory in Cham, Switzerland in 1899.

Nestl? in the United States: Creating Shared Value

Nutrition, Health and Wellness

Contents

Environmental Sustainability

Water

Rural Development and Responsible Sourcing

Social Impact

Appendix

Nestl? in the United States: Creating Shared Value

3 A Message from the Chairman and CEO of Nestl? USA

5 Nestl? in the U.S. Highlights 2015

6 Creating Shared Value: A Long-Term Perspective

7 Nestl? in the United States

8 Stakeholder Engagement and Material Issues

9 2015 Stakeholder Convening

Nutrition, Health and Wellness

10 About Nestl? Nutritional Foundation

10 Reducing Sugars

11 Reducing Sodium

11 Reducing Saturated Fats and Removal of Trans Fat

12 Delivering Clear Nutrition and Ingredient Information

13 Providing Choices

13 Leading the Industry in Nutrition and Health Research

15 Building Knowledge Leadership in Children's Nutrition

16 Providing Nutritionally Sound Products Specifically Designed for Children

Environmental Sustainability

Water

17 Our Environmental Performance

18 Improving Resource Efficiency in Our Operations

19 Improving Environmental Performance of Packaging

19 Providing Climate Change Leadership

20 Promoting Transparency and Proactive, Long-Term Engagement in Climate Policy

21 Working to Achieve Water Efficiency

21 Advocating for Effective Water Policies

22 Raising Awareness of Water Conservation

22 Treating Discharged Water Effectively

22 Engaging with Suppliers, Especially in Agriculture

Rural Development and Responsible Sourcing

23 Implementing Responsible Sourcing

23 Sourcing High Risk Commodities

24 Farm Animal Welfare

25 Sustainable Fisheries

25 Nestl? Cocoa Plan

25 Continuously Improving Our Green Coffee Supply Chain

Social Impact

26 Our People

26 Rolling Out Project Opportunity Across All Our Operations

26 Enabling All Employees to Report Compliance

27 Putting Employee Safety and Wellness First

27 Assessing and Addressing Human Rights Impacts in Our Supply Chain

28 Promoting Healthy Lifestyles

28 Charitable Giving in Support of People and Their Pets

Appendix

29 2015 Commitments 30 Nutrition, Health and Wellness 31 Environmental Sustainability 32 Water 32 Rural Development and

Responsible Sourcing

33 Our People, Human Rights and Compliance

34 GRI Content Index

36 Business Principles and Governance

37 Resources

Nestl? in the U.S. ? Creating Shared Value 2015

Companion Reports

Nestl? in society: Creating Shared Value and meeting our commitments 2015

Annual Review 2015

Annual Review 2015

Corporate Governance Report 2015 Compensation Report 2015 Financial Statements 2015

Corporate Governance Report 2015 Compensation Report 2015 Financial Statements 2015

Nestl? Purina Creating Shared Value Report 2014

1

In July 2015, Nestl? partnered with Boys & Girls Clubs of America to launch the National Fitness Competition in Cleveland, Ohio.

2

Nestl? in the United States: Creating Shared Value

Nutrition, Health and Wellness

Environmental Sustainability

Water

Rural Development and Responsible Sourcing

Social Impact

A Message from the Chairman and CEO of Nestl? USA

Appendix

G4-1

Following the release of Nestl? S.A.'s 2015 report, Nestl? in the United States is pleased to share our 2015 Creating Shared Value Report focused on our core themes: Nutrition, Health and Wellness; Environmental Impact; Water; Responsible Sourcing; and Social Impact.

Since Nestl?'s beginnings more than 150 years ago, Creating Shared Value has been at the heart of how we do business and approach the future. Our firm belief is that for a company to prosper over the long term and create value for shareholders, it must create value for society. We embed that philosophy in everything we do.

When it comes to setting strategy, we take a long-term view. Our investments in nutrition science, environmental performance, supply chains and our people are designed to deliver long-term results to our business and society as a whole. We embrace sustainability as our ultimate goal, and Creating Shared Value is how we plan to get there.

At Nestl?, we know that as the world's largest food and beverage company, we have an opportunity to create immense positive impact. Our products reach nearly every household in the United States, with 97% of homes purchasing Nestl? brands. For the past 10 years we have worked to reduce sugar, sodium and saturated fat and remove trans fat from our products without sacrificing taste, positively impacting millions of consumers striving for better health and balanced diets. We are working to address childhood obesity, promote healthy habits and physical activity among schoolage kids, and lead our industry in nutrition and health research.

Environmental sustainability is an important part of Nestl?'s commitment to Creating Shared Value in society. In 2015, alongside industry peers, we used our voice to call for decisive action on climate change, encouraging governments to set measurable, science-based targets for carbon emissions reductions.

Furthermore, we continued our ongoing efforts to conserve water across all of our business units through advanced technologies and water stewardship, such as at our Modesto factory, and achieved further innovations across business lines in optimizing product packaging.

In 2015, we also furthered our efforts and commitments in responsible sourcing, supplier diversity, addressing human rights and farm animal welfare issues in our supply chains, and supporting local communities through employee training, recruitment and career opportunities.

We are proud of our progress and welcome your feedback on our commitments and performance.

Paul Grimwood Chairman and CEO of Nestl? USA

Nestl? in the U.S. ? Creating Shared Value 2015

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