April 2017 Nestlé NEAR Nestlé NEAR P.O.BOX NO. 401&400 Cairo, Egypt The brands in Italics are registered trademarks of the Nestlé Group

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2 2 April 2017 Nestlé NEAR Nestlé NEAR P.O.BOX NO. 401&400 Cairo, Egypt The brands in Italics are registered trademarks of the Nestlé Group

3 Contents Performance Summary 08 Summary of our Commitments 10 Message from our Chairman and our CEO Nestlé S.A. 12 Message from our Chairman and CEO Nestlé NEAR 14 Creating Shared Value at Nestlé 18 Nestlé in NEAR 21 Nutrition Commitments Find out how Nestlé contributes to Nutrition, Health and Wellness of people in NEAR 35 Rural Development and Responsible Sourcing Commitment Read about how we globally work with farmers and rural communities, and our commitment to responsible sourcing in the region 37 Water Commitment Find out how we manage our water resources and our commitment to improve efficiency 40 Environmental Sustainability Commitments Find out about our commitments to improve our use of resources to protect the environment and promote sustainability 43 Our People and Compliance Commitments We focus on promoting youth employment and career opportunities in Nestlé NEAR. Everything we do is based on foundations of strong, non-negotiable compliance

4 Our CSV performance Nestlé s key performance indicators (KPIs) provide a focus for measuring and reporting Creating Shared Value (CSV), sustainability and compliance. The performance summary below forms part of our Communication on Progress for the United Nations Global Compact Principles. Unless otherwise stated, performance indicators are for the calendar year ending 31 December To provide transparency for our stakeholders, we have indicated the correlation between our KPIs, our commitments and Global Reporting Initiative (GRI) indicators in the table below. The references in the GRI column relate to the applicable indicator from the Global Reporting Initiative G4 guidelines. We report against GRI G4 guidelines and indicators, in line with our material issues. These issues are identified through our stakeholder engagement process and shape our public commitments. Please see Nestlé in society and Creating Shared Value key performance indicators GRI Economic Total Group sales (CHF million) (a) G4-EC Net profit (CHF million) (b) G4-EC Nutrition Products meeting or exceeding Nestlé Nutritional Foundation profiling criteria (as % of total sales) (c) G4-EC Renovated products for nutrition or health considerations (d) G4-FP Products with increase in nutritious ingredients or essential nutrients (d) G4-FP Products with reduction of sodium, sugars, trans fats, MSG, total fat, calories or artificial colourings (d) G4-FP Products analysed and improved or confirmed via 60/40 + program (sales, CHF million) (e) G4-PR Products containing Branded Active Benefits (sales, CHF million) G4-FP Products featuring Nestlé Nutritional Compass labelling (% of sales worldwide) (f) G4-PR Products with Guideline Daily Amounts (GDA) labelling on front of pack (% of sales) (g) G4-PR Products with specific Portion Guidance (sales, CHF million) G4-PR Popularly Positioned Product SKUs G4-EC Popularly Positioned Products (sales, CHF million) G4-EC Nestlé television advertising to children under 12 in compliance with policies on responsible marketing (%) G4-PR Contraventions to the Nestlé Policy and Instructions for Implementation of the WHO International Code of Marketing of Breast-milk Substitutes (h) G4-PR Infant formula marketing staff in higher-risk countries trained on the WHO Code (% of staff) (i) G4-PR Rural Development Farmers trained through capacity-building programs Markets covered by Sustainable Agriculture Initiative Nestlé (SAIN) programs Direct procurement markets covered by SAIN programs (%) Percentage of purchased volume fully compliant with the Nestlé Supplier Code (n) G4-FP

5 Water (j) Total water withdrawal (million m 3 ) G4-EN Total water withdrawal (million m 3 per tonne of product) G4-EN Environmental sustainability Production volume Total production volume (million tonnes) Materials Raw materials used (million tonnes) G4-EN Materials for packaging purposes (million tonnes) G4-EN Packaging source optimisation (kilotonnes saved) Energy Total on-site energy consumption (petajoules) Total on-site energy consumption (gigajoules per tonne of product) Total on-site energy consumption from renewable sources (% total) G4-EN Total direct energy consumption (petajoules) G4-EN Total direct energy consumption from renewable sources (% total direct) G4-EN Total indirect energy consumption (petajoules) G4-EN Biodiversity Total size of manufacturing sites located in protected areas (hectares) G4-EN Emissions, effluents and waste Direct GHG emissions (million tonnes CO 2 eq) G4-EN Direct GHG emissions (kg CO 2 eq per tonne of product) G4-EN Indirect GHG emissions (million tonnes CO 2 eq) G4-EN Indirect GHG emissions (kg CO 2 eq per tonne of product) G4-EN Total water discharge (million m 3 ) G4-EN Total water discharge (m 3 per tonne of product) G4-EN Average quality of water discharged (mg COD/l) G4-EN By-products (kg per tonne of product) G4-EN Waste for disposal (kg per tonne of product) G4-EN Environmental sustainability governance Manufacturing sites certified against ISO (% of total manufacturing sites) Human rights and compliance Total number of significant product recalls or incidents of non-compliance G4-PR Number of human rights impact assessments completed G4-HR9 2 1 Number of employees trained on human rights

6 Our people Total workforce (number of employees) (a) Total rate of new employee hires (%) (k) G4-LA Total rate of employee turnover (%) (k) G4-LA CARE gaps identified related to Business Integrity and HR (i) 12 7 Of which: Minor 12 7 Major 0 0 Critical 0 0 Lost-time injuries and illnesses rate (per million hours worked) (employees, on-site contractors and on-site members of public) (j) G4-LA Total recordable injuries and illnesses rate (per million hours worked) (employees, on-site contractors and on-site members of public) (j) G4-LA Total number of fatalities (employees, on-site contractors and on-site members of public) (j) G4-LA Average hours of training per year per employee per category (m) G4-LA Leadership positions held by women (%) (k) G4-LA Local Management Committee members native to country in developing countries (%) (k) G4-EC (a) Does not include joint ventures. (b) Includes Nestlé s share in net result of joint ventures. (c) Total Nestlé (F&B except CPW, NHSc, Pharma, Nespresso, Businesses not in GLOBE reporting). % of products meeting NNPS criteria over total products being assessed. (d) Based on reports of 78% of factories. Products can have less of one ingredient and more of another at the same time. (e) In the 60/40+ program, Nestlé products tested with consumers must be preferred over the competitor s. Assessment results are valid for a maximum of three years if all parameters remain equal. (f) PetCare, Gerber Life, Nestlé Health Care Nutrition, Wyeth Nutrition, other Nestlé Health Science businesses and non Nestlé branded products in Nestlé Waters are out of scope. (g) Includes all F&B + Nestlé Waters except plain water. It excludes joint ventures, Nestlé Nutrition, Wyeth, Nestlé Health Science, specific category / country exemptions. (h) Instances attributed to Nestlé based on internal audits conducted by corporate auditors and external audits conducted by Bureau Veritas. Final number of contraventions could change as the findings of some verifications are still being assessed. Our Annual Reports on compliance can be accessed on our corporate website. (i) We follow the FTSE4Good breastmilk substitute marketing criteria, which classify countries as higherrisk if they have mortality rates for under-fives of more than 10 per 1000, or more than 2% acute malnutrition among under-fives. All other countries are lower-risk. (j) Includes joint ventures. (k) Covers Nestlé employees registered in HR system (approximately 84% of all employees). (l) CARE, our global external audit program, is conducted by three audit companies and verifies that all employees and sites we own or operate comply with local legislation, our Corporate Business Principles and Code of Business Conduct. The audits take place every three years. (m) Training hours are based only on information recorded in the Learning Management System (LMS). The numbers will be higher if manually recorded training hours were considered (as was the case in 2015 when the LMS was just newly launched). Training hours per employee covers 100% of employees in the system. (n) 2015 scope of tier 1 audits was direct materials only. In 2016, scope extended to include service and indirect materials with target of 50%. 6

7 Highlights 2016 April 2016 Nestlé NEAR launched United for Healthier Kids in partnership with the Ministry of Social Solidarity, the National Research Center and Sanofi 650,000 Our Nestlé Healthy Kids Program has reached more than 650 thousand students in 1025 Schools in 12 governorates 360 Billion EGP Servings of micro-nutrients fortified food products sold in % Absolute waste for disposal cut by 79% since % of our children s products met all of the Nestlé Nutritional Foundation criteria* for children at the end of % Water withdrawal per tonne of product cut by 28% since % GHG emissions per tonne of manufactured product cut by 2015 since

8 Summary of our Commitments Living up to our mission to enhance quality of life, this year we are publishing for the first time our commitments to society in Nestlé NEAR; commitments that are in line with the way we do business defined by our strategy of Creating Shared Value. With a particular focus on nutrition, health and wellness, our commitments also cover water and environmental sustainability, and highlight other topics including responsible sourcing, people and compliance. They are ambitious, reflecting our determination to meeting our responsibilities and contribute to addressing local challenges. Some of these commitments, particularly those pertaining to nutrition, will focus specifically on children in accordance with our ongoing journey to nurture healthier generations. All of our commitments invite stakeholders and partners to hold us accountable to what we promise, and solicit their feedback so we can continuously improve our actions and performance. 8

9 Nutrition Commitments 11. Build knowledge leadership in children s nutrition 22. Further provide nutritionally sound products designed for children 33. Help reduce the risk of under-nutrition through micronutrient fortification 44. Reduce sodium in our products 55. Reduce sugar, saturated fats and remove trans from our products 66. Deliver nutrition information, advice, and portion guidance 77. Promote healthy hydration as part of a healthy lifestyle 88. Ensure responsible marketing communication to children 99. Promote healthy diets and lifestyles for school-aged children 10 10Promote healthy diets and lifestyles to women 11 11Marketing breast-milk substitute products responsibly Rural Development Commitments 12 12Implement responsible sourcing in our supply chain Water Commitments 13 13Strive to achieve water efficiency and sustainability across our operations Environmental Sustainability Commitments 14 14Improve resource efficiency in our operations 15 15Improve the environmental performance of our packaging 16 16Provide climate change leadership Our People and Compliance Commitments 17 17Investing in youth is investing in the future through the Global Youth Initiative 18 18Enhance gender balance 19 19Ensure that all Nestlé units have the necessary systems in place to deliver the same level of basic safety and health protection for all employees 20 20Provide Safe Driving trainings 21 21Commit to comply at all times with the Life Saving Rules 9

10 A Message from our Chairman and our CEO Nestlé S.A. The year 2016 was marked by two important milestones. First, Nestlé celebrated its 150th anniversary. Our company s journey began with Henri Nestlé s invention of Farine Lactée infant cereal and ever since, we have lived up to our purpose of enhancing quality of life and contributing to a healthier future. Every day, Nestlé touches the lives of billions of people worldwide: from our employees to the farmers who grow our ingredients and the families who enjoy our products; to the communities where we live and work; as well as the natural environment upon which we all depend. Guided by our values rooted in respect, we work alongside partners to create shared value contributing to society while ensuring the long term success of our business. We are pleased to share our 2016 Nestlé in society: Creating Shared Value report, which demonstrates our progress and shows how our company purpose, ambitions and 42 specific public commitments are contributing to society. Our Creating Shared Value priorities 10 are those areas of greatest intersection between Nestlé s business and society, and where we can create the most value and make the most difference. These include: nutrition, where we refined our commitments to enable healthier and happier lives for individuals and families, with a strong focus on infants and children; rural development, to help develop thriving and resilient communities, and support better livelihoods for those we live and work with; and water, an issue of critical concern for the planet and the lynchpin of food security. We have strengthened our commitments in the areas of water and environmental sustainability to underline our determination to steward natural resources for future generations. Underpinning all these efforts is a robust approach to compliance, human rights and our people. We respect and promote human rights, fair employment and diversity. An issue of major concern globally is the high level of unemployment experienced by young people. In response, we continue to extend our Global Youth Initiative while encouraging the participation of other companies and partners. The second milestone for Nestlé in 2016 was the first anniversary of the United Nations Sustainable Development Goals (SDGs) with the definition of a clear indicator framework and a solid recognition of the role of the private sector and its contribution in the spirit of Creating Shared Value.

11 management integrates them both in corporate governance, strategy and operations. As such, our report this year includes a section for the investment community. Most importantly, this report demonstrates our fundamental belief in Creating Shared Value as our way of delivering a long-term positive impact for shareholders and society, through everything that we do as a company. CSV is unique in that it is a business strategy that allows us to target activities where we can optimise the creation of value for our shareholders, as well as for society. We look forward to your feedback on our commitments and on this report. The goals set out a vision for ending poverty, hunger and inequality, and protecting the Earth s natural resources by The 17 goals are closely interlinked and are being integrated into our Creating Shared Value approach, with an emphasis on those where we can make the most meaningful, positive impact. To mirror the SDG timescale, we have introduced a set of overarching ambitions for 2030, which will guide our actions and provide direction for our 2020 commitments. Nestlé plays its full part in meeting the SDGs not only through our Creating Shared Value approach to doing business, but also through partnerships, collaborations and stakeholder engagement. Through the Consumer Goods Forum, for example, we help shape the global collective agenda through resolutions and commitments on health and wellness, social sustainability, climate change and environmental sustainability. As in previous years, in 2016 we restated our support for the UN Global Compact as a founding member of the UN Global Compact Lead an important platform for corporate sustainability leadership and collective engagement with the SDGs. Behind all of these efforts are our company values, which are rooted in respect respect for ourselves, respect for others, respect for diversity of the world we live in and respect for the future. Our Corporate Business Principles and Code of Business Conduct clearly set out our responsibilities. Through reports such as this, we hope you can see that a mindset of transparency, improvement and engagement drives all our actions. The Creating Shared Value Council, and many other stakeholders, guide our work through their insights and constructive criticism. We encourage investors to look at company performance both in financial and societal terms, and evaluate how Peter Brabeck-Letmathe Chairman Paul Bulcke Chief Executive Officer 11

12 A Message from our Chairman and CEO Nestlé NEAR We believe that good nutrition is fundamental to the health and wellness of individuals and the society. Today, we aim to enhance the quality of lives of all our consumers by offering tastier and healthier products, as well as information and services to enable them to make the right choices. In Egypt, health problems are on the rise as a consequence of the double burden of malnutrition, whereby there is under-nutrition from a micronutrient perspective and over-nutrition from overconsumption of calories and unhealthy foods. As the leading 12 Nutrition, Health and Wellness Company, we have the determination to play a positive role in increasing health awareness and providing good nutrition. We want to live up to our promise of Good Food, Good Life. Creating Shared Value is a fundamental part of Nestlé s way of doing business that focuses on specific areas of the Company s core business activities. In this report, we are sharing our commitments in the areas of nutrition, rural development and responsible sourcing, water, environmental sustainability, people and compliance through business practices embedded at the core of our operations. The Creating Shared Value strategy positively serves the needs of the Egyptian society. Nestlé believes in its role in endorsing healthier diets and lifestyles, with special focus on children through the implementation of ongoing and successful initiatives. For over five years in Egypt, the Nestlé Healthy Kids initiative has been committed

13 to promote the importance of a balanced diet and regular physical activity among nine to twelve yearold children. In strong partnership with The Ministry of Education, the program has successfully reached over 650,000 students in 12 governorates. In 2016, we took the initiative to unite public and private efforts to launch United for Healthier Kids in strong partnership with the Ministry of Social Solidarity, the National Research Center, ABB and Sanofi; leveraging Nestlé s reach, expertise, knowledge and determination to have a positive impact on the health of future generations. In addition, Nestlé NEAR will continue to develop and enhance employability for young people. We believe we can make an important contribution to the society, by creating value for our stakeholders, our people and for the communities in which we operate. Overall, our efforts in Creating Shared Value won t come to life without the support and trust of the governments, our partners and other entities we work with in the region. We believe that collective efforts can truly make positive impact in our society. As we publish the first ambitious Nestlé in Society Report in Egypt, we know that there will be challenges ahead and we express the determination to meet the responsibilities and play our part. Yasser Abdul Malak Chairman and CEO Nestlé NEAR 13

14 Creating Shared Value at Nestlé Creating Shared Value is the fundamental way Nestlé does business across the entire value chain, and the way we connect with society at large. It begins with the understanding that for our business to prosper over the long term, the communities we serve must also prosper. It entails businesses creating competitive advantage, which in turn will deliver better returns for shareholders, through actions that substantially address a social or environmental challenge. It is built on strong foundations of compliance and sustainable business practices to preserve the environment for future generations. As a company, we are best positioned to create shared value in three areas: nutrition, water and rural development. A key pillar in our Creating Shared Value strategy is nutrition because food and nutrition are the basis of health and of our business it s the reason why we exist. Nestlé s mission is to enhance the quality of lives of our consumers by providing tastier and healthier food and beverage choices, and services that help people improve their nutrition, health and wellness. Our focus on water and rural development is driven by their critical importance not only to our business but also to our employees, farmers, suppliers, distributors and communities where we operate. We live up to our commitments to environmental, social and economic sustainability through business practices embedded at the core of our operations. These aim to deliver better financial results for our shareholders by improving working conditions for our suppliers, instilling environmental practices that both benefit the planet and cut costs, and enhancing products to meet the specific needs of our customers. This involves substantial training and education of people inside and outside of Nestlé, as well as large investments in technology with lower environmental impact. We are also Creating Shared Value Creating Shared Value Sustainability Compliance one of the founding members of the UN Global Compact Lead an important platform for corporate sustainability leadership. Creating Shared Value requires compliance with the highest standards of business practice, including international codes and standards as well as our own Code of Business Conduct, Corporate Business Principles, and Management and Leadership Principles. Read more about CSV on: Nutrition, water, and rural development, are our focus areas Protect the future Laws, business principles, codes of conduct Our Corporate Business Principles: Foundation of Creating Shared Value It is essential that we build our business on clear principles and sound governance. The Nestlé Corporate Business Principles rule the way we do business and form the basis of our culture and values. The 10 principles, which provide the foundations for our commitments 14 and our Creating Shared Value strategy, incorporate the 10 United Nation Global Compact (UNGC)* Principles and are divided into five areas: consumers, human rights and labour practices, our people, suppliers and customers, and the environment. Why are they important? We believe that it s essential to have clear principles and values that are built upon respect for our consumers, our people, suppliers, customers and the environment, and a strong compliance culture that is fully embedded in our business. Demonstrating our adherence builds trust among our stakeholders, ensuring they have confidence in the Nestlé brand and what it stands for, both now and in the future.

15 How are they applied? All our employees are required to comply with Nestlé s Corporate Business Principles and we continuously monitor their application and effectiveness. Our principles are implemented through relevant business codes, policies, processes and tools, which have been developed to ensure they are practiced every single day, across the company. We set high standards, always following the Nestlé Corporate Business Principles wherever we operate even if local laws are more lenient or non existent. 1 Nutrition, Health and Wellness Our core aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition Good Food, Good Life. Consumers 2 Quality assurance and product safety Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe and of high standard. 3 Consumer communication We are committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. We respect consumer privacy. Human rights and labor practices 4 Human rights in our business activities We fully support the United Nations Global Compact s (UNGC) guiding principles on human rights and labor and aim to provide an example of good human rights and labor practices throughout our business activities. Our people 5 Leadership and personal responsibility Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination. 6 Safety and health at work We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. Suppliers and customers 7 8 Supplier and customer relations Agriculture and rural development We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our nonnegotiable standards. In the same way, we are committed to our own customers. We contribute to improvements in agricultural production, the social and economic status of farmers, rural communities and in production Systems to make them more environmentally sustainable. The environment 9 Environmental sustainability 10 Water We commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favor the use of sustainably managed renewable resources, and target zero waste. We are committed to the sustainable use of water and continuous improvement in water management. We recognize that the world faces a growing water challenge and that responsible management of the world s resources by all water users is an absolute necessity. 15

16 The Roots and Development of Creating Shared Value at Nestlé 2002 Nestlé published The Nestlé Sustainability Review, the first social report in its history, covering a framework of economic, social and environmental sustainability Nestlé produced a regional report entitled The Nestlé commitment to Africa, reporting on our impact across the three-part value chain framework of agricultural raw materials, manufacturing, and management, products and consumers The Nestlé concept of corporate social responsibility as implemented in Latin America was published. This report followed an elaborated version of the same three-part value chain framework used in the Africa report Three Creating Shared Value areas of focus were chosen internally for company investment and communication: nutrition, water and rural development The Creating Shared Value pyramid was launched integrating Creating Shared Value with sustainability, compliance and Nestlé culture and values in one visual device. Our first Nestlé Creating Shared Value Report (the 2007 report) was published Nestlé publicly launched the Creating Shared Value concept and framework, as well as the Nestlé Creating Shared Value Prize, at the first Creating Shared Value Forum, held at the United Nations in New York The second global Nestlé Creating Shared Value Report (2009) was published, using for the first time the three Creating Shared Value focus areas of nutrition, water and rural development as the framework. The second Creating Shared Value Forum was held in London. The inaugural Nestlé Creating Shared Value Prize was awarded to IDE Cambodia The Nestlé Creating Shared Value and Rural Development Report 2010 was issued, and the third Creating Shared Value Forum held in Washington DC. The report was written according to the Global Reporting Initiative (GRI) application level B+ and verified by Bureau Veritas. The Company then decided to apply for level A+ for the following report The Nestlé Creating Shared Value Summary Report 2011: Meeting the global water challenge was published, including summary sections on nutrition and rural development. The full report met the criteria for the highest level of transparency in reporting, GRI A+. The fourth Creating Shared Value Forum was held in India. The Nestlé Creating Shared Value Prize 2012 was awarded to Fundación Paraguaya, for setting up a self-sufficient agricultural school model, while Lebanon s arcenciel, and the UK s Excellent Development shared runner-up positions The report Nestlé in Society: Creating Shared Value and meeting our commitments 2012 was published, focused on nutrition and, for the first time, included forward-looking commitments. The fifth Creating Shared Value Forum was held in Colombia in partnership with the Inter-American Development Bank. President of Colombia Juan Manuel Santos gave opening remarks about the role of the private sector in the economic and social development of Colombia The report Nestlé in Society: Creating Shared Value and meeting our commitment 2013 was published. It includes 35 forward-looking commitments and showcases the progress made in meeting the societal commitments published the previous year. Nestlé co-hosted the 6th Creating Shared Value Forum, in Switzerland, with the United Nations Conference on Trade and Development. The focus was on how governments and civil society can work with business to accelerate sustainable development. The Nestlé Creating Shared Value Prize 2014 was awarded to Honey Care Africa, a fairtrade honey company working with farmers in South Sudan, while Tanzania s Msabi and Kenya s Sanergy shared runner-up positions. 16

17 Promoting Creating Shared Value beyond Nestlé: The Nestlé Creating Shared Value Prize Launched in 2009 during the first Nestlé Creating Shared Value Forum at the United Nations in New York, the global Nestlé Creating Shared Value Prize offers a CHF 500,000 investment award to innovative individuals, non-governmental organisations, and small enterprises running projects focused on nutrition, water or rural development. The Prize, which is globally awarded every two years, aims to reward the best examples of Creating Shared Value initiatives worldwide and to encourage others to adopt this approach. In selecting the winner, the Creating Shared Value jury looks for an entry that is innovative, applies environmentally sustainable practices, has demonstrated results on a small scale and can be viably scaled-up to help improve people s lives. One winner has already emerged from the Middle East, with Lebanese NGO arcenciel shining among over 634 applicants in 2012 to capture the Prize for Wataneh, a program that aims to improve the sustainability and competitiveness of Lebanese agriculture. Wataneh was recognised for supporting and promoting the production, marketing and consumption of a diversity of fresh and processed products produced in an environmentally friendly, socially responsible and economically viable manner. The winners are announced at the Nestlé Creating Shared Value Forum, an annual gathering of global representatives from nongovernmental organisations, industry and higher education where best practices around the concept of how to create shared value are shared and discussed. Paul Bulcke, CEO Nestlé S.A. handing the award to Pierre Issa, Co-founder of arcenciel in 2012 CSV Forum in India. The World s Leading Nutrition Health and Wellness Company Nutrition has been the cornerstone of Nestlé since 1866 when Henri Nestlé developed his first infant cereal to save the life of his neighbour s child who was unable to breastfeed and suffering from malnutrition. Founded in Switzerland, Nestlé operates in almost 200 countries and employs close to 340,000 people all over the world. Globally, Nestlé has the largest research and development (R&D) organisation of any food company, with about 6,000 people involved in R&D, as well as a number of research partnerships with businesses and universities.the Company has 39 R&D and Product Technology Centres around the world, which develop innovative technologies and manufacturing processes that form the basis of new product development, and are applied in operations. The R&D centres have both global and local roles, by meeting regional needs and providing technical expertise in specific areas. For nearly 150 years, Nestlé has been committed to enhancing people s lives wherever they may live by offering the highest quality of tasty and healthy food and beverage choices at all stages of life and at all times of the day. Henri Nestlé 17

18 Nestlé in the North East African Region Nestlé products have been present in Egypt since 1870, with the first Nestlé product, Farine Lactee, being sold in Alexandria. Since then, we have been focused on our core mission to enhance the nutrition, health and wellness of Egyptians. In the Arab world, across North Africa and Middle East Nestlé operates ten factories and provides direct employment to almost 11,000 people. Today, Nestlé Egypt is part of Zone EMENA (Europe Middle East and North Africa Region), as the headquarters and hub for NEAR, the North East African region, which regroups three countries; Egypt, Libya and Sudan. Nestlé in Egypt owns and operates two factories in Egypt; producing dry good and the later producing bottled water, and provides employment to more than 3,500 Permanent and seasonal. Nestlé Products in NEAR The Nestlé portfolio in the NEAR region extends across a wide range of categories: coffee and beverages, chocolate and confectionery, ambient dairy, infant nutrition, culinary, bottled water, breakfast cereals and food service. Nestlé Nido, Nesquik, Coffee-mate, Nescafé, Maggi, Kit Kat, Quality Street, NAN, Progress, S-26, Cerelac, Nestlé Cereals, Nestlé ice cream, Dolce ice cream, Movenpick ice cream, Nestlé Pure Life, Baraka. 18

19 Creating Shared Value 2 Factories EGP 1 Billion Investments in the region 3,500 Employees Head Office Cairo Dry goods factory 6th of October, Giza Waters factory Banha, Qalioubia 19

20 Our Guided Principles PASSION CANDOR COURAGE HARDER RIGHT With the rapid changes our market faces in the region, we need to support the market s changing pace and our must-win battles with a change in our behavioral tools, thus the need to STEP UP as a team. We believe that in order to build trust among ourselves, in our products and with our consumers and customers, we have to be in line with our strong values. Our STEP UP culture represents our courage to face challenges head on and challenge status-quo, passion to follow through and fight complacencies, integrity in choosing the harder right rather than the easier wrong, and candor. 20

21 Nutrition Commitments Nestlé s vision is to be recognized as the world s leading health, wellness, and nutrition company in the world. From developing and sharing nutritional knowledge, to continually improving the nutritional content of our products, to ensuring constant quality control; Nutrition, Health and Wellness (NHW) plays a wide and diverse role in improving the nutritional content of our products as well as driving better health and wellness within our community. Science-based Nutrition Research and Development Nestlé has the largest research and development organization of any food company in the world, with 39 Research and Development (R&D) facilities and Product Technology Centers, about 6,000 people involved in R&D, as well as a number of research partnerships with businesses and universities. The Nestlé Research Center (NRC) in Lausanne, Switzerland, has four satellite units in the USA, China, Japan and Chile. It provides the scientific base for R&D across all Nestlé businesses. NRC s role is to drive science and technology, from basic nutrition and health research, to applied research for product development and application. The NRC s 250 scientists specialized in several fields including nutrition, biochemistry, medicine, immunology, anthropology, and food sciences, publish approximately 200 peer reviewed scientific papers every year. They focus their work on four main research programs: First 1,000 Days and Healthy Kids, Healthy Pleasure, Healthy Ageing, and Sustainable Nutrition. The Nestlé Nutrition Network The Nestlé Nutrition Network aims to translate nutrition science and guide the practical application of knowledge for the promotion of Nutrition, Health and Wellness. It ensures product development and innovations that cater to local nutritional needs, and help deliver tasty and healthy products. The global Network consists of more than 200 nutritionists, some based at Research and Development centers and others operating locally in different countries. The Network serves as the nutrition science hub from which all tools and methodologies are cascaded across Nestlé to put nutrition into everyday business. Our Nutritionist at Nestlé NEAR works closely with the Nutrition Network to play a key role in product development, innovation and renovation and to develop responsible product communication. In addition, other employees with nutrition backgrounds work in different functions at the Company, including communications, regulatory, marketing, and technical divisions. Nutrition Commitments 21

22 1. Build knowledge leadership in children s nutrition Objectives 2017 Understand consumer habits and eating behaviors Identify barriers to reaching good health in children Our actions to date The Mother s behavior for the 1st 1,000 days research. Trends in baby food and diapers around the world research. Further usage and attitudes (U&A) and segmentation to understand real consumer s insights and perceptions about children s nutrition. United for Healthier Kids' research on mothers to understand children s nutritional habits. Our perspective Nutrition in the years where we grow and develop are critical to a healthy and happy childhood, and also defines our dietary and activity habits throughout the rest of our lives. We will use this knowledge to shape our products and evolve our portfolio to further provide children-specific nutritionally relevant foods, beverages, and services. Our ultimate goal is to contribute to nurturing healthier generations for the future. 2. Further provide nutritionally sound products designed for children Objective 2017 Develop tastier and healthier products for children to ensure optimal growth and development. Our actions to date 100% of our children s products met all of the Nestlé Nutritional Foundation. The Nestlé Nutritional Foundation is a set of criteria based on nutrition science and dietary recommendations, such as those published by the World Health Organization and the Institute of Medicine. 100% of our children dairy products have direct nutritional competitive advantage over competitors. One cup of Nido Fortigrow provides 34% of Vitamin A requirements and 25% of Iron requirements. One cup of Nido 1+ offers 41% of calcium requirements for children. The addition of probiotics to 22 Cerelac cereals has been a great step forward in child nutrition to enhance immune response and reduce diarrhea. Our perspective A 6-12 months old child has 500% higher nutritional needs than adults. Acknowledging this when it comes to product development is the key to enhancing children s health. The health of our children shapes their future, so continually formulating new and renovating existing products is a top priority to us at Nestlé. Our aim is to offer a wide variety of healthy and nutritious choices across different age groups to promote healthy growth and development of children.

23 3. Help reduce the risk of under-nutrition through micronutrient fortification Objective 2017 Drive fortification in relevant products in the innovation and renovation process of product formulation to address malnutrition issues in Egypt. Our actions to date Nestlé NEAR provided 360 billion servings of fortified foods in % of our products are fortified (excluding ice cream). Nesquik range offers 27% calcium and 22% iron daily values. One cup of Nido 1+ offers 41% of calcium daily values. Kimo Magic ice cream is fortified with vitamin C. Our perspective Malnutrition, especially amongst growing children, is a huge problem in Egypt that needs to be addressed. Iron deficiency anemia affects 27% of children within Egypt, 21% of children are faced with stunting and 12% of our children have vitamin A deficiency. We are continually working to identify nutritional challenges within the community and subsequently adapting our products to help combat said challenges Reduce sodium in our products Objective 2017 Children s products should contain less than 24% of sodium daily limit per serving. Our actions to date 20% reduction of salt in béchamel recipe (launched in 2016). 100% of our children s products meet Nestlé s criteria for sodium limit (less than 24% of daily limit). Our perspective Sodium is essential for blood volume in the body as well as muscle and nerve communication, however too much sodium is associated with adverse side effects on health such as dehydration and increased blood pressure. Our aim is to provide the healthiest products possible without compromising on taste, quality, or texture. Using the 60/40+ approach we periodically assess our products to ensure that they are superior in both taste and nutritional content compared to our competitors. What is 60/40+? The Nestlé 60/40+ Program is aimed at steering constant optimization of recipes. We constantly test our portfolio to ensure they are preferred by at least 60% of consumers. Sensory evaluation by a panel of experts complements the program for objective assessment, it provides a translation of what consumers like or dislike about a specific product. In addition to this, nutritional assessments are conducted to ensure our products meet Nestlé s nutritional standards. Renovated béchamel recipe with 20% less salt and the same preferred taste. 1.Egypt Demographic and Healthy Survey Figures for Iron Deficiency Anemia, Vitamin A Deficiency, and Stunting Refer to Children Under the Age of 5. Nutrition Commitments 23

24 5. Reduce sugar, saturated fats and remove trans from our products Objectives 2017 Children s products should contain less than 25% of daily limit of sugar per serving. Children s products should contain less than 65% of total fat per serving. Our actions to date Kimo Cono was reformulated to contain 45% reduction in total fat, 28% reduction in sugar and 21% reduction in total calories. 12% Reduction in saturated fatty acids in ice cream products over the past 3 years. 13% Reduction in sugar content of ice cream products over the past 3 years. 100% of our children s products met all of the Nestlé Nutritional Foundation sugar and fat criteria for children. Fitness cereals now contains 30% less sugar. Our perspective Good Food, Good Life is the promise we commit to everyday, everywhereto enhance lives, through life, with good food and beverages. At Nestlé we believe in healthy indulgence, meaning there is a place for treats within a balanced diet and healthy lifestyle. That being said, we are continually working on our product formulation to make them as healthy as possible. Kimo Cono was formulated to contain 45% less fat, 28% less sugar and 21% reduction in total calorie content. 6. Deliver nutrition information, advice, and portion guidance Objectives 2017 Incorporate nutritional compass on entire product portfolio in order to have a consistent means of message delivery across different brands within Nestlé. Add Guideline Daily Amounts (GDA) information on applicable product portfolio. Provide on-pack portion guidance on products to avoid overconsumption of food and differentiate between child and adult portions. Educate consumers with helpful campaigns to enhance their knowledge about nutrition. Our actions to date 100% of Nestlé products contain nutritional compass on the back panel. Achieved 73% GDA placement on our products in % of children and family products are currently providing portion guidance. The launch of Shaklak Aklak 24 digital campaign which received more than 3.8 million views and 170,000 people talking about it. The campaign consisted of 10 online episodes discussing portion guidance, nutrition labeling, healthy eating advice, hydration and balanced diets. Product information and Nutritional information related to our products are provided via more than 8 Facebook pages, one corporate website covering a total of seven brands to ensure beyond the pack communication. Our perspective A better understanding of the nutritional values of each one of our products, and the constant preoccupation to improve not only the organoleptic but also the nutritional quality of all our products and then finally to communicate our nutritional advantage is key to have Nestlé become recognized as a leading Health and Wellness company. Informative labeling and portion guidance information has the potential to make a huge difference to consumer s health. At Nestlé we thrive to be as transparent and informative as possible to help people make better and healthier choices when it comes to what they put in their body. Nestlé Nutritional Compass as implemented on Cerelac s New Packaging.

25 7. Promote healthy hydration as part of a healthy lifestyle Objectives 2017 Expansion of the WET (Water Education for Teachers) program to 4,500 teachers and 20,000 students in 150 schools. Continuous improvements in the knowledge level of the importance of water and how to conserve it. Our actions to date Nestlé Waters has expanded the reach of Project WET. WET has educated more than 21,562 students and 2,310 teachers in 112 schools in Egypt so far since Moreover, one of WET's activities, 8,4,1- one for all, is now a part of the Nestlé Healthy Kids Program which promotes healthy eating and drinking habits and an active lifestyle (see commitment 9). Our perspective Our commitment to promote healthy hydration as part of a healthy lifestyle is an ongoing effort. Something as simple and as drinking enough water throughout the course of the day is often overlooked or forgotten by many people. The WET program spreads important messages about water resources, water management and water protection. We will continue implementing activities from the three modules of project WET which is hydration, recycling and water conservation. Nestlé Waters encourages the consumption of drinking eight cups of a water to obtain a healthy lifestyle. 8. Ensure responsible marketing communication to children Objective 2017 Implement a strengthened policy on marketing communication to children. Our actions to date Any products communicated to children below 12 years have to meet our Nutritional Foundation guidelines. Nestlé does not do any direct marketing communication for biscuits, sugar confectionery and chocolate confectionery products to children below 12 years of age. Nestlé does not do direct marketing communications to children in primary schools. Nestlé does not collect personal data from children below 12 years of age. Our perspective As a leading food manufacturer and Nutrition, Health, and Wellness company; it is our responsibility to ensure that all of our products are packaged and sold responsibly. We strive to achieve this through the active application of principles and policies in the countries where we work. Nutrition Commitments 25

26 9. Promote healthy diets and lifestyles for school-aged children Objective 2017 Expand the Nestlé Healthy Kids Program Nestlé Abnaa Ashaa in Egypt, through partnerships with local authorities and NGOs. Our actions to date The Nestlé Healthy Kids Program was launched in Egypt in 2010 in partnership with the Ministry of Education, the NGO Alashanak Ya Baladi (AYB) and the scientific partner The German University of Cairo (GUC). In 2011, the Ministry of Education signed a 5-yearprotocol agreement with Nestlé Egypt to implement the project in public schools in Egypt. An extension of the protocol is in progress. At the end of 2016, Nestlé Healthy Kids had reached over 650,000 children and trained around 2,000 teachers in over 1,025 schools across 12 governorates. In 2014, Nestlé Healthy Kids engaged with consumers digitally on the Healthy Kids Tab reaching over 925,000 viewers. Since 2012, Nestlé Healthy Kids has incorporated the project WET to promote healthy hydration in one of Nestlé Healthy kids seven sessions (read more about Project WET on page 38) Our perspective Nestlé and its partners believe that education is the single most powerful tool to ensure that children understand the importance of nutrition and physical activity to their health through the course of their lives. Nestlé Healthy Kids aims to promote healthy eating and physical activity among nine to twelve year-old school children. The main objective of this program is to raise nutrition, health and wellness awareness of school-aged children in Egypt with the ambition of building the foundation for a healthy generation. The program targets five key elements: creating awareness of balanced diet and food composition, acquiring nutritional healthy habits, addressing malnutrition and obesity, developing good hygiene habits and promoting physical activity. The program also promotes healthy hydration. The school-based interventions involves seven nutrition and physical education sessions, including fun interactive learning and hands-on activities; as well as questionnaires developed to assess children s knowledge retention post the intervention. The sessions include: the food pyramid, water, carbohydrates, vegetable, fruits, protein and dairy. The program is entrenched through Train the Trainers workshops. The workshops are conducted by the nutrition team at Nestlé which equips educators and teachers with the knowledge and skills required for its implementation. Evidence-based impact Beyond just acquiring information, the Program helps children develop skills to independently make behavior changes, Its impact was demonstrated in an ongoing pilot study showing positive improvement in children s eating habits and nutrition knowledge. The program impact is shown in feedback collected at the end of each round from the different students participating. Some of the acquired nutrition habits that 26

27 students mentioned were drinking 8 cups of water every day, eating varied and nutritious meals as per the food pyramid, washing their hands regularly, and also learning to avoid common diseases and food contamination by learning about hygiene. Others focused on the importance of an active lifestyle by opting to walk to school. Research showed that children ate more fruits and vegetables more frequently and their general nutrition awareness increased by 77% following the Nestlé Healthy Kids interventions. Expansion through partnerships and collaborations Sustaining commitment from our partners, ensures behavior change over the long-term is essential for the success of Nestlé Healthy Kids. This is why we collaborate with partners who share our purpose and long-term perspective to nurture healthier generations. Community needs: escalating obesity The global obesity pandemic poses a major challenge to the management of chronic noncommunicable diseases. In Egypt, 27% have iron deficiency anemia, 26% are overweight and obese, 21% are faced with stunting and anemia rates are growing especially among children. 1 1.Egypt Demographic and Healthy Survey Figures for Iron Deficiency Anemia, Vitamin A Deficiency, and Stunting Refer to Children Under the Age of 5. Figure for Overweight and Obesity Refers to Children from 5-19 Years. Nutrition Commitments 27

28 10. Promote healthy diets and lifestyles to women Nestlé Khamsa Le Sehetek: The Women Program Objective 2017 Expand the Women Program, Nestlé Khamsa Le Sehetak in Egypt, through the partnerships with local authorities and NGOs. Our actions to date Nestlé Khamsa Le Sehetak has reached nearly 11,000 women in 3 governorates in Upper Egypt and Old Cairo, through 265 nutrition education and cooking sessions. Our perspective Nestlé Khamsa Le Sehetek is our initiative, launched in 2013, to tackle the existing health issues by sharing our extensive knowledge and position as a leader in Nutrition, Health and Wellness. We aim to raise nutritional awareness, introduce better eating habits and more active lifestyles among twenty to forty five year-old women to help them combat malnutrition issues including obesity, anemia and osteoporosis. The program is delivered through five major topics, in two sessions (nutrition session and cooking session): Eat Well Perform Well Look Good Feel Good Cook Well Expansion through partnerships and collaborations We are fortunate to have committed partners with substantial experience in women s issues especially in governorates that has been regrettably neglected for too long in Upper Egypt. In terms of creating and accrediting the content, we worked with Ain Shams University. For implementing the program, and delivering it, we worked with the International Population Council and the Association for the Education and Development of Upper Egypt. We ve also recently worked with the NGO Kheir W Baraka in Old Cairo. Evidence-based impact A sample of over 1,500 women participants, pre- and post-session questionnaires were distributed testing their knowledge of the topics delivered in the program. We are proud to note a 68% increase in their knowledge acquisition, which validates our partners efforts, and drives us to expand Nestlé Khamsa Le Sehetek even further. Community needs: Malnutrition issues are on the rise 75% overweight or obesity in women aged The WHO highlighted that the growing percentages are due to several reasons including growing consumption of fast food, sedentary lifestyles and poor and unhealthy eating habits. 2. Global Nutrition Report 2014 and WHO

29 11. Marketing breast-milk substitutes responsibly Objective 2017 Start Healthy Stay Healthy (SHSH) will reach thousands of moms through online and offline engagement activities to provide education and drive awareness. Our actions to date Digital Engagement: The Launch of SHSH Facebook page engages with 282 thousand mothers through a variety of educational and engaging posts. The celebration of World Breastfeeding Week 1) Moms and Moms-to-be first ever direct education to mothers We collaborated with Rofayda Maternity Health Park to help 150 mothers raise awareness about the importance of breastfeeding and the impact on their infant s health through a full day event with a mix of educational sessions and engaging activities. 2) Health Care Professional Units: We extended Nestlé s responsibility towards the Egyptian society, through providing workshops to the pediatric community. a) Nurses: We trained 60 nurses on ways to encourage moms to breastfeed. b) Pediatricians: We continued HCP endorsement by installing breastfeeding posters in 300 clinics The posters communicated four main breastfeeding benefits. 3) Internal Awareness Campaign During World Breastfeeding week, we ran an internal campaign to 50 Nestlé employees to spread our reason to believe and to endorse a nutritionally aware culture within Nestlé. Our perspective Nutrition has always been a cornerstone for Nestlé as it influences infants health at a very early stage in their lives and directly impacting their future well-being. This is why our unwavering commitment towards mothers and babies health steers everything we do. Start Healthy Stay Healthy is a global initiative aiming to create awareness and educate moms about the importance of early nutrition in the 1st 1,000 days which start at pregnancy and end by the 2nd year of the child s age. This period is very critical to the child s health because how the baby is nurtured during the 1st 1,000 days shapes his quality of life. Start Healthy Stay Healthy is Nestlé s maternal and infant nutrition education program, dedicated to addressing global health concerns and provides science-based nutrition services and practical advice to parents and caregivers in the crucial first 1,000 days. Through partnerships in Health Care Professed Units, we demonstrate the impact in the prevention of under- and over nutrition and reduce future health risks for both Mother and Child. Our Start Healthy Stay Healthy vision is to help the next generation of children to develop their full potential and live healthier lives by providing high quality, innovative, science-proven nutrition for mothers and infants in the first 1,000 days. Egypt, with its alarming health and malnutrition indicators and nutritional illiteracy level, is in need for such an initiative. We can create shared value through SHSH by positioning Nestlé as the trusted partner for moms through responsible communication and engagement. Start Healthy Stay Healthy is based on owning the 1,000 days through all three pillars: Consumers, Pediatricians and Governmental Authorities. Nutrition Commitments 29

30 United for Healthier Kids launches in Nestlé NEAR Egypt is going through a series of health challenges which has led our children to very unhealthy lifestyles and eating habits. Nestlé Egypt believes that immediate and collective action from both the private and public sectors is crucial. Only by working together and the endorsement of the government we can have a significant positive impact on children s health. In hopes for a brighter future, Nestlé has launched United for Healthier Kids (U4HK), to make an increased contribution to the health and wellness of all children, from conception to 12 years. United for Healthier Kids is a pioneering, comprehensive and science-based program to help parents establish healthier eating, drinking and lifestyle habits for children. U4HK seeks to draw together various sectors of society to work with parents and increase awareness about the prevalence of child malnutrition, as well as promote proper diets for children. To raise public concern of proper nutrition and the adoption of the new behaviors, various parties joined the movement including The Ministry of Social Solidarity and The National Research Center from the public sector, and Sanofi and ABB from the private sector by signing a Protocol on the 4th of April Under this agreement, all partners agreed to come together for three consecutive years to induce the social movement United for Healthier Kids. U4HK is an initiative created by Nestlé, strengthened with the support of partners, powered by a collective and social movement, backed by nutritional and behavioral science. 30

31 United for Healthier Kids Behaviors U4HK s purpose is to build nutritional awareness of balanced meals and food groups through focusing on five key behaviors: 11. Feed your baby like a baby: The nutritional requirements of infants and young children are different to those of adults, with the First 1,000 Days of critical importance. United for Healthier Kids encourages breastfeeding as the best start in life and provides practical guidance to support parents in establishing healthy eating habits. 22. Manage Portions: United for Healthier Kids provides guidance to encourage parents to serve children appropriate portions according to their age and to serve foods which are high in nutrients and low in energy, such as fruit and vegetables. 33. Choose Nutritious and Varied Options: United for Healthier Kids assists parents in providing children with a variety of nutrient-rich foods, across food groups, to meet their nutrition needs. It provides guidance to help parents encourage kids to actively make healthier food choices. 44. Choose to Drink Water: United for Healthier Kids demonstrates methods to make drinking water more attractive to children, so that they will make it a first choice for daily hydration over sugar-sweetened beverages. It provides parents with ways to help ensure their child is drinking water regularly to stay hydrated. 55. Move more, Sit Less: United for Healthier Kids helps parents discover ways to motivate their children to spend less time being sedentary (sitting and lying down) and more time moving and engaging in active play, to promote healthy growth and development. The United for Healthier Kids social movement is tailored to integrate several communication elements by combining on-ground (press conferences), above-the-line (TV, radio and press) and social media platforms (Website, FB Page and YouTube) for the awareness phase. Moreover, the movement in itself includes digital platforms engagement campaigns (Website and FB Page), on ground village interventions with the Ministry of Social Solidarity and The National Research Center and other small activations incorporating the five key behaviors. In addition to that as part of the United for Healthier movement objectives for behavioral challenges, we will monitor the program effectiveness to measure the impact of the initiative on Egypt s future generation. Nutrition Commitments 31

32 Choose Nestlé, Choose Wellness Following our commitment to enhance the lives of Egyptians by offering tastier and healthier food and beverage choices at all stages of life and at any time of the day, while helping consumers to care for themselves and their families, Nestlé NEAR Launched CHOOSE WELLNESS, CHOOSE NESTLÉ The campaign targets those who believe that food can be both enjoyable and healthy, those who want to do the best for their personal well-being and for that of their families, and who seek qualified trustworthy help on how to reach their goal. The Choose Wellness, Choose Nestlé interactive program campaign focus mainly on three pillars with the aim of empowering consumers to adopt balanced diets and a healthy active lifestyle: nutritional information and assessment. healthy balanced recipes and meal plans. physical exercise and movement. During the past four years we have actively supported our objectives through different activities. Above the Line Story: Affirming Nestlé expertise in nutrition and enhancing trust by communicating quality and compelling nutritional benefits of our flagship products confirming that Nestlé range of products is part of a healthy diet. Personalized Lifestyle and Nutrition Consultation by: Engaging over 400,000 families where we educated families on healthy eating and adopting active lifestyles and enhanced our product benefit awareness (in Mouled Events) The Wellness online program (#Ekhtart_Se7aty): A 5-week program, where on a weekly basis we post three videos taping into the three pillars, providing simple solutions to achieve a healthy lifestyle without falling into temptations. The videos reached 15 million views and over half a million interactions. Wellness multi-brand promotion:over two million units purchased of products with clear nutritional messages relevant to the product's benefits. El Mouled: We have actively participated in Nestlé Mouled events to capitalize on our nutrition consultation 24/7 care center: where we provided over 15,000 nutritional consultation for both adults and child nutrition, as well healthy recipes. We will continue with our commitment in the coming years to accelerate the Choose Wellness, Choose Nestlé interactive campaign and maximize accessibility to consumers, enabling them to lead a healthy balanced life. 32

33 Unique consumer engagement with Nestlé Brands The Mouled is a cultural event that is deeply embedded among our consumers. It s a carnival with lots of games, to help celebrate specific traditional occasions. We capitalize on this deep inherited custom in the Egyptian culture with engaging games, traditional musical shows, live cooking shows through our Nestlé brands. The Nestlé Mouled was launched in 2013 to bring Nestlé brands closer to the hearts and hands of emerging consumers across Egypt through deepening and widening our distribution in trade and holding heavy sampling activities to increase our availability, visibility and creating a memorable, engaging and rewarding brand experience to our consumers. Since 2013, we increased our reach year after year and covered more regions & governorates. In 2016, we directly engaged with more than 20 million consumers, where 4.5 million bought our bundles and 820,000 came to our events. to buy a bundle of Nestlé products with a certain value from the nearby traders and represent the proof of purchase to be entitled to participate in the trucks activities. Reaching all our consumers with the right offerings is always one of Nestlé s ultimate objectives to enhance people s quality of lives. Such a focus is vital due to the tight economic conditions.our aim is to draw a smile on our consumers faces through an engaging experience. From here the concept of Nestlé Mouled sparked. In order to drive out availability & visibility, gifts were given to traders who have done great displays and achieved higher sales. El Mouled was created to bring health and happiness to the lives of every Egyptian family. The idea is simply consolidating a big road show for all Nestlé brands in one mega activation covering 24 Mouled events in 16 governorates. Nutrition, Health and Wellness presence was key to guide our consumers to a good life. Our doctors and nutritionist specialists offer nutritional consultancy sessions to help improve eating and lifestyle habits. El Mouled events received very positive feedback. One of the attendees said: Nestlé is a very good company because it gives me free consultation. Nestlé Mouled has two main pillars: consumers and trade. For the consumers engagement part, each of the participating brands was represented by a branded truck roaming around the main streets of the city, engaging with the consumers, sampling Nestlé s products and communicating the brand s nutritional benefits through fun activities. As for the trade, the activation significantly drove the sales out by encouraging consumers Nutrition Commitments 33

34 Shaklak Aklak: Your Guide to Healthier Food Choices As part of Nestlé s Nutrition, Health and Wellness (NHW) commitment in helping consumers make informed choices for them and their families, Nestlé Egypt co-produced a national informative digital campaign called Shaklk Aklk to educate the consumers about the different label elements and its sources. Shaklk Aklk is a national campaign initiated by a private entity Update-for Integrated Business and supported by the Egyptian Chamber of Food Industries and The Ministry of Health with the aim of raising awareness about the different food label elements and encouraging health behavior changes for consumers with simple yet engaging videos, posts and other digital activities. A total of ten webisodes were successfully launched covering the campaign objectives including balanced food plate, portion guidance, and the ten golden steps towards a healthier lifestyle. With a total reach of 3.8 Million views for the videos, the campaign was a great hit. Offering consumer centric messages, building on different age groups insights along with offering simple yet effective nutritional education in an Egyptianized humor; the consumers highly engaged with the content and the creative execution of the videos. Nestlé s journey will continue to empower consumers to adapt a healthier and active lifestyle. We believe that Good Food, Good Life is the promise we commit to everyday, everywhere to enhance lives. Promoting compliance and awareness of responsible marketing of breast-milk substitutes Our Nestlé Corporate Business Principles acknowledge any measures taken by governments independently to implement the WHO Code. In addition, Nestlé is responsible for monitoring our own marketing practices. Internally, Nestlé Egypt engages in continuous functional trainings and awareness sessions for all employees. In addition, an ombudsmen system was put in place to facilitate internal reporting on any violations and promote compliance. Externally, we also run awareness sessions with health care professionals and more specifically through breastfeeding educational campaigns targeting nurses and dietitians across the country. We also enhanced our systems for external reporting of concerns through the Tell Us service available on our website, where our suppliers are also informed about through the supplier code. All this is done to ensure that our conduct at every level conforms to the Nestlé policy and instructions in this regard, in accordance with the principles and aims of the WHO Code. 34

35 Rural Development and Responsible Sourcing Commitment As part of our Creating Shared Value approach, Nestlé is committed to creating positive impact in communities where we operate. That s why investment in building agricultural and manufacturing capacity is crucial. We at Nestlé recognise that the overall wellbeing of farmers,rural communities, workers, small entrepreneurs and suppliers isintrinsic to our ability to continue to do business in the future. This is specially true since most of our 468 factories in 86 countries are inrural areas, and more than half of them are in developing countries. It s also vital that we maintain a secure, long-term supply of ingredients for our food and beverages products, the majority of which are grown in rural areas. Our rural development work and involvement with farmers helps us secure the quality and quantity of supply of our key raw materials, addresses the need to build sustainable farming communities, while fostering farming as an attractive business and livelihood of choice offering opportunities for societal advancement. We work and connect with farmers in different ways that include providing them with technical training through our capacity building programs; offering financial assistance and services; and direct purchase of products from those with whom we share long-term relationships.through our Nescafé Plan, we are working to increase the amount of coffee beans directly sourced from farmers and their associations.by the end of 2014, Nescafé had sourced more than 180,000 tonnes directly through our Farmer Connect operations from about 170,000 farmers. We also distributed more than 29.8 million high-yield, diseaseresistant coffee plantlets to farmers in Launched in 2009, the Nestlé Cocoa Plan seeks to improve the lives of cocoa farmers and the quality of their crops. It also tackles important issues including low productivity and child labour. Through the Cocoa Plan, we provided training to over 45,000 farmers in 2014, and purchased around 91,000 tons of cocoa directly from farmers, covering 23% of our total volume purchases. Another of our key initiatives is the Milk District model through which we aim to increase the quantity of milk supplies purchased directly from farmers, helping ensure a better price for their milk, improved safety and quality standards, regular payment and a sustainable link to the processing industry, while providing Nestlé with a regular supply of high-quality milk. Our Sustainable Agriculture Initiative, or SAIN, optimizes the supply chain from farm to factory, improves efficiency, manages risk and supports sustainable development in the field. The Nestlé-wide initiative focuses on raw material sourcing where we have direct contact with farmers and long-term business relations with traders or primary processors. Nestlé s approach to rural development also aims to respect natural capital such as bio diversity and other natural resources. Rural Development Commitments 35

36 12. Implement responsible sourcing in our supply chain Objective 2017 To both improve and demonstrate compliance with the Nestlé Supplier Code. Our actions to date Based on our proactive and collaborative approach, the audits have allowed us to work with our suppliers to close identified gaps and deliver sustainable improvement to address safety and health, environmental, labour conditions and business integrity issues. Our perspective The Nestlé Supplier Code defines the minimum standards that we ask our suppliers to respect and adhere to when conducting business with Nestlé. The code is in line with the UN Guiding principles on Business and Human Rights, the Core Conventions of the International Labour Organisation (ILO), and the 10 Principles of the United Nations Global Compact. It is an extension of our Nestlé Corporate Business Principles, beyond our own operations. Acknowledgement of the Code is a prerequisite in every Nestlé contract for supply. Nestlé recognises that reaching the standard established in the Supplier Code is a dynamic process and encourages suppliers to continuously improve in their operations. 36

37 Water Commitments Nestlé recognizes that the responsible management of water resources worldwide is an absolute necessity. Water, both as a basic human right and as an essential raw material for numerous competing needs including agriculture, has been significantly overused in the last century. As a result, water scarcity is directly affecting future food security. Globally, we published the Nestlé Commitment on Water Stewardship, which sets out our position and strategy. We strive to participate in initiatives on water policy and challenges, seeking new shared solutions and promoting collective action on water efficiency for effective water stewardship. We believe that effective water stewardship will require that provisions are made firstly for water to meet the human right to water, then to ensure that ecosystems are able to function, and finally to ensure that water is used efficiently for agricultural and industrial use. Our longterm success is built upon effective water stewardship in the watersheds where our raw materials are sourced from, where our factories are located, and where suppliers and consumers live. Nestlé has a long history of leadership on water stewardship through continuous improvement in the efficient use of water at our factory operations and innovative programs with farmers at a global level. Since 2007, Nestlé has reduced direct withdrawal needed to manufacture one tonne of product by 33% through several water saving projects. In 2010, Nestlé formally reconfirmed our public support for the human right to water and sanitation, as adopted by the United Nations General Assembly and the United Nations Human Rights Council. 13.Strive to achieve water efficiency and sustainability across our operations Objectives 2017 Reduce water withdrawal per tonne of product by 3.5% versus 2016 Our actions to date In 2015, we reduced specific water withdrawal per tonne in NEAR (including Nestlé Waters) by 14.7% as compared to 2014, achieving a reduction of 28% of the same between 2010 and 2015, while our production volume increased by %. Specific targets are developed at Nestlé NEAR to continuously reduce specific water withdrawal through efficiency usage improvements and training. Water saving projects are put in place and targets are tracked using internally developed tools to measure obtained savings versus projection. Examples include: cooling and chilled water optimization, CIP optimization, Cooling Tower blow-down recycle and higher condensate return efficiency. Our perspective We have an important role to play in addressing growing water issues. So far, we have achieved substantial improvements in water usage efficiency over the past years and we will continue our efforts for further reductions. We continue to leverage new opportunities using innovative techniques knowing the increasing local challenges and barriers. We will seek creative approaches to foster actions inside and outside of our organization promoting water efficiency and responsible use. Water Commitments 37

38 Promoting Water Sanitation and Hygiene at Nestlé NEAR Manufacturing Globally in 2013, Nestlé became one of the first signatories of the World Business Council for Sustainable Development (WBCSD) pledge that commits businesses to upholding the human right to water and sanitation within their operations. In 2015, we initiated the roll out of the WBCSD Water, Sanitation and Hygiene self-assessment tool in all our manufacturing facilities globally and in Nestlé NEAR. The self-assessment tool has been developed by the WBCSD as a support tool for implementing the Pledge for Access to Safe Water, Sanitation and Hygiene (WASH) at the workplace, along and in alignment with the guiding principles for implementation. It represents a method of assessing the current status of access to safe WASH at the workplace in a given facility of the company, in order to identify potential gaps, help identify areas for improvement, and to support decision-making regarding investments and priority actions. Raising awareness on water conservation and resources and importance of hydration Water Education for Teachers (WET) is an independent nongovernmental foundation that was established in The objective of project WET foundation is to reach out to children, parents, educators and communities of the world with water education. WET teaching expertise is based on its capacity to transform often complex concepts about water into easy to understand, fun learning for children. The project WET spreads important messages about water resources, water management and water protection. Nestlé Waters has for more than 20 years been the main private partner of Project WET, an independent globalreach foundation that develops educational tools to increase awareness of water amongst educators and children. The company has been working with Project WET to help disseminate their education materials to hundreds of thousands of beneficiaries in over 65 countries. In Egypt, Nestlé Waters runs Project WET activities where it works to educate children on the importance of water, the need to protect it, and the importance of hydration as well as commemorating World Water Day every year through various initiatives. Since 2012, the program so far reached over 40,700 students and 5,700 teachers in 219 schools in Egypt, and is expecting to reach many more throughout the upcoming years. 38

39 Celebrating World Water Day in the Nestlé Water Factory World Water Day is an annual event celebrated on March 22. The day focuses on the importance of fresh water and an opportunity to learn more about water related issues. World Water Day dates back to the 1992 United Nations Conference on Environment and Development where an international observance for water was recommended. Nestlé Waters recognize that the long-term success of the company is built on effective water stewardship in the watersheds where our factories are located and where suppliers and consumers live. World Water Day is a key event celebrated by Nestlé Waters Egypt at our factory in Banha. We create shared value by inviting kids from our neighboring schools and children of employees. Key Ministry of Education personnel honor the event. The event was celebrated in 2012 with 100 children, in 2014 with 300 children, in 2015 with 800 children and in 2016 with 1,000 children, 500 employees and 50 volunteers. We spread key messages like raising awareness on fresh water, leading water use efficiency and show our commitment to water stewardship. We implemented six WET activities from WET project water conversation module; we created specialized songs for each activity. We created be a water saver, be a water superhero activity which is a simulation for saving water. The activity s objective is to teach children how water reduction can save gallons of water. Our objective was to create engagement with our local stakeholders and employees to increase their loyalty and belonging. In Nestlé Waters Egypt, we believe that our employees are the most valuable asset that we have. On the event day, we had special team building activities for them and their families along with giveaways. We also introduced the new initiative Together 4 Water. The vision of the project, Together 4 Water, is to help communities have a better understanding of the use of water. Through the support of our employees,we will help school children identify issues related to water conservation. After issues are highlighted, Nestlé Waters ambassadors will work with the children to find durable solutions. By publicizing about our event, World Water Day, through social media and press releases, we created a positive relationship with the government, NGOs and other stakeholders. Water Commitments 39

40 Environmental Sustainability Commitments Environmental sustainability means protecting the future by making the right choices in an environment where water is increasingly scarce and biodiversity is declining. Our goal is to make Nestlé products not only tastier and healthier but also better for the environment along their value chain. 14. Improve resource efficiency in our operations Objectives 2017 Reduce waste for disposal (absolute) by 25% versus Reduce energy consumption per tonne of product by 4% versus Our actions to date In 2015, we have managed to achieve a 79% reduction in waste for disposal over the years since In 2015, in efforts to strive for zero waste to landfill, the Dry Goods Factory sent destruction products to a third party for incineration (with heat recovery) versus current disposal to landfill. Our perspective The Nestlé Environmental Management System (NEMS), used to implement the Nestlé Policy on Environmental Sustainability, is based on a continual improvement of management cycle. The effectiveness of NEMS rests on the use of practices provided by our Nestlé Continuous Excellence (NCE) initiative, which improves our efficiency, quality and productivity. This translates into doing more with fewer resources and less waste. In 2014, Nestlé launched a new toolkit to help factories around the world to strive towards zero waste for disposal. In many countries though, we have faced challenges to improve our resource efficiency This is due to a lack of public waste recovery and recycling infrastructure, as well as instances where we are required by local legislation to send certain materials to landfill. Improving resource efficiency in our operations contributes to our broader efforts to reduce food waste along the value chain. Globally, Nestlé introduced the Nestlé Commitment on Food Waste in

41 15. Improve the environmental performance of our packaging Objective 2017 Continue optimizing our packaging portfolio and our environmental footprint of products, whenever possible. Our actions to date At Nestlé Egypt, packaging optimization has been given full attention throughout the entire production cycle from idea initiation through packaging materials production, packaging machines and filling lines, warehouse and distribution and finally transportation to the end consumer. In this regards, our aim is to reduce the material usage for packaging materials in the areas of plastics and flexible packaging, glass, paper and cardboard. Our perspective Packaging Environmental Sustainability is high on the agenda for Nestlé and the public. Years ago, Nestlé started to include Eco-design into its Packaging development cycle. This means assessing the environmental effects of different packaging solutions early on in the development process before implementing any change or producing any new packaging materials. But now we know that looking at packaging alone is not enough, because food ingredients, transport, processing and the consumer use phases typically. 16. Provide climate change leadership have much bigger impact on the environment than the packaging alone. We therefore chose a full life cycle approach to assess the environmental performance of our products. The aim is to reduce the weight by 10% which will result in tens of tons savings on packaging material per year. On the supplier s front, we will continue working with all our paper packaging suppliers to complete the Responsible Sourcing Audit to be FSC (Forest Stewardship Council) certified. Objective 2017 Further reduce greenhouse gas (GHG) emissions per tonne of product by 5% versus 2016 in our manufacturing operations. Our actions to date At our factories, our overall greenhouse gas emission per tonne of product was reduced by 14% from 2010 to At Nestlé NEAR, we use the natural refrigerant, Ammonia, in the majority of our industrial refrigeration systems. Starting 2015, all our newly invested ice cream chest, upright and island freezers were using natural refrigerants. Our perspective Our commitment to provide climate change leadership goes far beyond just reducing air emissions. It also includes responsible water stewardship, striving for zero waste, using resources efficiently, among others. We believe we can play an active role to address climate change challenges. As business is only part of the solution, we will participate at a wider, collaborative level, which is why we support industry and multi-agency initiatives globally. Environmental Sustainability Commitment 41

42 Celebrating World Environment Day The celebration of World Environment Day was held over the course of a week, and the purpose was to focus on one s individual contribution towards environmental sustainability and to interactively deliver the key Nestlé Food for Cleanliness Campaign In 2014, Nestlé kicked-off Food for Cleanliness initiative, through a series of training sessions conducted under the supervision of the Ministry of State for Environmental Affairs.The trainings covered a wide range of topics, from a broad overview of the nationwide waste-management Alarming amounts of vinyl billboards are printed every year for short-term marketing campaigns and in just a few months they come down and end up in landfills. This accumulates to the already significant amount of garbage and environmental problems generated every year. But as part of serving our community, Nestlé transformed the already used billboards into trendy shopping bags to give out to community members as grocery gift bags. To support this initiative and help raise awareness on the importance of recycling, Nestlé Egypt has donated more than four thousand square meters of already used billboards to enable the NGO, Giza Systems Education Foundation, to produce up to 3,500 recycled bags that will be used as donations for behaviors, at work and beyond, that support the purpose. The celebration covered 600 employees in the factories. Various means of awareness including videos, play booths, signs system to the specific system, to be implemented within the community where the beneficiaries lived. In addition to basic communication skills and cultural sensitivity orientations. Around thirty volunteers from different NGOs attended from: Khair we Baraka, Rouh El Shabab, and Ez El Shabab. After the two-days training sessions, volunteers visited exactly 1,200 households, big and small, inside apartment buildings and standalone buildings. They explained briefly to each household the benefits of waste segregation and the harms of not doing so since separating the waste into organic and non-organic piles adds to the value chain considerably. One of the benefits is that it saves up time and effort the waste Recycling of billboards: Eco-billboard bags the unprivileged members of the community with a focus on Upper Egypt. Those billboards were taken off the streets and garbage heaps, and given a new lease on life to make the environment cleaner, fresher and greener. Not only did this initiative serve the community, but also it erected a ripple effect on people s lives through enhancing skill development and job opportunities. The bags were hand-made by Egyptian housewives to help them generate additional income. In addition, to being originally distributed as Eco-friendly shopping bags for winter blankets and/or food items to unprivileged families, the bags can be re-used for shopping purposes and many others. and posters were setup to engage people during the campaign, including a competition for the best initiative for environmental improvement. collectors take to sort the waste. It also makes it a significantly more humane to work in creating many desperately needed job opportunities. Also, it eliminates the unnecessary health issues coming from the waste including cadmium in newspaper ink, aluminum in soft drink cans and plastic bags. Most households were very eager from the start to participate in the initiative and learn more about it. The families were also extremely happy with Nestlé s nutritious offerings and our pledge to collect their waste for the next six months free of charge. Nestlé is very optimistic about the success of the program, and hopes that it is adopted by other responsible members of the community. So far, we have reached out to beneficiaries in governorates such as Menia, Assyut, Qena, Giza and Cairo. Beneficiaries were very impressed by the idea and found the bags to be trendy, useful for everyday grocery shopping and durable. 42

43 Our People & Compliance Commitments The Nestlé Corporate Business Principles reflect our commitment to a strong culture as a nonnegotiable foundation of how we do business. 17. Investing in youth is investing in the future through the Global Youth Initiative Objective 2017 Drive YOUth empowerment initiatives in NEAR to fight and bridge unemployment gaps through a more empowered generation. Our actions to date In our ongoing efforts to make a tangible contribution to the battle against unemployment in Egypt, Nestlé NEAR actively rolled out the Nestlé Needs YOUth Initiative in 2015 with the aim to help young people by enhancing their skills and hands-on experience in a manner that boosts their employability in a challenging job market. Nestlé Needs YOUth complements NEAR s extended tradition of recruiting young talent from various universities across the country. With long-term perspectives in the horizon, NEAR commits to YOUth empowerment through two basic pillars: A. Robust Apprentice/ Internship Programs 1. Graduate Trainee Program NesTalent The months long program is designed to provide recent graduates an opportunity to maximize their exposure in a short duration of time rotating across different departments, businesses, etc. Successful trainees continue to be employed at Nestlé after their successful graduation from the program. In 2015 and 2016, Nestlé NEAR on-boarded 14 young and bright Nestalents after a challenging recruitment process to begin their journeys rotating across the different department to have cross functional exposure. 2. Summer Internship Program One of the signature programs that Nestlé NEAR has in the market is the two months Summer Internship Program across factories, DCs and HO divisions. The program targets mainly senior University students with outstanding record of extra-curricular activities and demonstrated sense of leadership and potential whereby they get a real hands on experience at the workplace. 3. Student On Project A program designed for successful summer interns with strong performance and potential to leverage on key learnings gained during their internship program and to continue working with Nestlé on a certain project for a duration of three months up until they graduate. B. Readiness for work activities Driving YOUth empowerment through leveraging on our current practices in place, in addition to, intensifying our efforts to penetrate more channels. This becomes crucial than ever in a challenging nature of our job market. Our People and Compliance Commitments 43

44 We have collaborated with different private universities in Egypt whereby we ve carried out multiple mock interview, CV writing sessions to senior students, as well as, several successful career awareness sessions and networking events. We plan to expand our reach to a larger number of YOUth in public Egyptian Universities to further bridge knowledge gaps among youth in our battle against unemployment. Within the framework of Nestlé s continuous efforts to create shared value for the society and as a result of our deep belief in our youth and their capabilities, Nestlé has launched Dolce Successful Youth program in partnership with Alashanek ya Balady in The program targets secondary school students with the aim of developing them and preparing them to enter the job market through a series of workshops such as: planning for the future, goal setting, creative thinking and choosing the right career path. To measure the project effectiveness, an evaluation was given to the beneficiaries. Results showed 90% increase in goal setting, team work, and time and pressure management as a result of the program success and the positive feedback received, the project continued to expand for two following years to benefit 6,000 people in four different schools. Our perspective At the Creating Shared Value Forum in October 2015, our CEO Paul Bulcke announced the launch of the Global Youth Initiative. With this, we continue to expand the diversity of our organization, and specifically develop the next generation of Nestlé leaders. At the same time, we support young people in their transition from education to work. The Global Youth Initiative will focus on two areas: Implement or strengthen existing apprenticeship and traineeship programs. Enhance readiness for work activities (participation in job fairs, open days, CV clinics etc.) in all markets where we operate. This initiative has been launched across all markets and businesses, helping Nestlé identify and attract talent at an early stage of their career. This will enable us to be a key global player in actively contributing to tackle the youth skills gap and unemployability. Today, more than 73 million young people are unemployed and more than 200 million are underemployed worldwide. In many parts of the world, our initiative could reinforce young people s social integration. Indeed, Nestlé Needs Youth is across functions and across the three Nestlé zones and this is a good opportunity to leverage young people s potential around the world. 44

45 18.Enhance gender balance Objective 2018 Become a gender-balanced company by creating enabling conditions in our work environment to achieve annual increases in the percentage of women managers and senior leaders. Our actions to date Globally, we signed up to the United Nations Women s Empowerment Principles and are ensuring men and women at management level progress at the same rate. In Nestlé NEAR, gender balance is very important, and our journey involves several accomplishments and new initiatives: We provide maternity leave of up to six months, three paid as per the Egyptian Labor Law plus one month additional as a benefit of Nestlé female employees, and extended a paternity leave of three working days that is not deducted from the employee s leave balance. Employees can benefit from flexible working hours, and part time working options. We provide employees with discounts in day care centers. We celebrate International Women s day annually to congratulate females on their hard work. The percentage of women among total managerial positions held in Nestlé NEAR has gone up from 19% in 2010 to 21% at the end of 2016 and amongst management committee it has gone up from 0% in 2010 to 21% at the end of In Nestlé NEAR, the objective is to build an inclusive workforce at all levels and in all aspects, valuing and embracing diversity and gender balance. The rollout of this initiative in NEAR has been initiated by conducting a Gender Balance Training to management committee by the Global Head of Diversity. After this training, Functional Champions were nominated and selected to act as change agents to embed Gender Balance initiatives, and drive the action plan that was derived from the training they received. In addition to the Gender Balance Champions, a steering committee has been formed to provide support to the champions and help drive Gender Balance efforts on a market level. Our perspective At Nestlé, we believe that different ways of thinking complement each other and lead to better decisions. Gender balance for us makes business sense, as we must take advantage of existing and emerging talents whereby majority of college graduates are women, and lean towards an internal culture that adequately reflects the reality of our consumers, 80% of whom are also women. Gender balance does not seek for men and women to be the same, but rather to make us realize the differences and how to act upon them. It is also not about giving women special treatment, but acknowledging the premise that there is a gap and opportunity to support women in their careers across the life stages. It is ultimately about removing obstacles to ensure the broadest representation of diverse talents across all levels in the company. Our People and Compliance Commitments 45

46 19. Ensure that all Nestlé units have the necessary systems in place to deliver the same level of basic safety and health protection for all employees Objective % of employees covered by a certified safety and health management systems (OHSAS 18001). Our actions to date In 2010, 24 of all our factories were certified for OHSAS In addition, until end of 2015, eight out of our eleven Distribution Centers and our Head Office in Egypt were certified, and ongoing further deployment for the remaining Distribution Centers. Behavioural Based Safety, Health and Environment (BBSHE) Caring Through Feedback By the end of 2015, we have reduced the number of our 46 recordable injuries by 58% since Moreover, we focus on proactively preventing incidents through engaging our people in Caring Through Feedback program. The program is aimed to: Promoting personal ownership and engagement. Engaging people through personal interaction and coaching. Encouraging safe behaviors and proactively challenging at-risk ones. Ensuring compliance with agreed SH&E rules, procedures and Nestlé Safety Leadership behaviors. The program is led by the NEAR Management Team and involves all employees, contractors and visitors. Our perspective Nestlé is a company founded on caring: for our consumers, for the environment and for our work colleagues. It is this spirit of caring which complements both our ultimate safety and health (S&H) goal of zero injuries and illnesses, and our approach to achieving it. Fundamental to this approach is the creation of a mutually supportive work environment in which we all care for - and look out for - each other: giving the gift of feedback to help each other stay safe and healthy. Nestlé conducts an internal nestlé & I survey periodically which provides continuous insight around the key drivers of employee engagement. NEAR results have demonstrated that 91% of survey participants feel their work area is a safe place to work. Moreover, 81% of the participants believe that safety rules are carefully observed, even if it means work is slowed down. Improvement in our safety and health systems and their certification needs longterm engagement across the organization in every country, whether our businesses are factory, field or office based. This can be challenging, as it may entail a significant behavioral step change. While we are among the leaders in safety and health in our industry at a global level, our aim is to strive for excellence with the ultimate goal of zero injuries and work-related illnesses. This ambitious goal is fully aligned with our Corporate Business Principles.

47 20. Provide Safe Driving trainings Objectives 2017 Sustain and continually improve the Safe Driving Program. 100% of frequent driving employees and contractors to be trained in Safe and Defensive Driving. Our actions to date Since 2013, 750 people (including frequent driving employees, suppliers and distributors) were trained in Safe Driving achieving 100% of our target. Since 2013, we have been conducting safety and security road risk assessments for our frequent and high risk routes. In 2014, we have established a system for receiving and managing driving complaints from the public. In 2015, 346 of people trained in Defensive Driving. In 2015, 100% of our trucks and trailers have been equipped with telematics. In 2015, Nestlé NEAR organized an event Work with Dad in support of emotional engagement of families of frequent driving employees. Our perspective Nestlé s belief in Creating Shared Value embraces a robust and sustainable partnership with the community in areas that are synergistic and relevant to society. Our concern over safe driving practices emanates from the deteriorating driving skills and road safety in Egypt that are leading to substantial increases in road accidents and fatalities every day. The Nestlé partnership with Egyptian Road Safety Training Centre (ERSTC) is a modest beginning to address a large and complex issue and we hope that it translates to lower accidents and fatalities in the years to come. Since 2012, Nestlé NEAR intensified its commitment to improve road safety for its employees and stakeholders. Our commitment is aligned with the Global Safety and Health roadmap and Nestlé s commitment to the Decade of Action for Road Safety. We are striving to focus on risks covered by the five pillars in this action plan, mainly safer vehicles, safer road users and post-crash response. Our Safe Driving Committee constructed and lead our Safe Driving roadmap, using 12 elements defined to lead us to our ultimate goal; create a crashfree culture, company-wide and country-wide. Nestlé NEAR established a partnership with ERSTC to address our challenges. ERSTC will also benefit from our investment in training to support the completion of its facilities and services. We have quantifiably and qualitatively realized the shared value the program created between Nestlé, the community and the ERSTC, eventually making a difference in overall safety of the roads in Egypt. Our People and Compliance Commitments 47

48 21. Commitment to comply at all times with the life saving rules Objective % of Nestlé Employees to be trained in the Life Saving Rules. Our actions to date In 2014, the training facility was inaugurated by Zone Management and included Safety, Health and Food Safety topics. Since 2014, 90% of employees, contractors and visitors have been trained in the Life Saving Rules. In 2016, the training facility was expanded to include Environmental Sustainability. Our perspective The Life Saving Rules concept was initiated by Nestlé Philippines. The NEAR training center was launched in June 2014 through a market-wide safety and health campaign named Rawah Salim (Return Safely). The purpose of the Life Saving Rules is to emphasize the fundamental values of Safety, Health, Food Safety and Environmental Sustainability. The program is set up in an interactive learning center (playroom) addressing critical tasks and behaviors. Specific sets of Life Saving Rules have been defined for the various functions: factories, distribution, sales and offices. An annual refreshment training is scheduled for all employees. In 2015, a lite version training was extended to the employees families during Family Days and Nestlé Healthy Kids internal engagement. Nutrition sessions for employees in Nestlé NEAR The key to our success lies in being recognized as the leading Nutrition, Health and Wellness Company. Hence, this was the reason behind the launch of the Nutrition Quotient (NQ) training globally, to ensure that we have an internal culture based on continuous nutritional training. With the increasing percentage of obesity and anemia in Egypt, nutrition knowledge has become increasingly valuable. The initiative to launch the NQ foundation training in our local market took place in 2015 to target 100% of all Nestlé employees. Four objectives were chosen for the training to encourage all employees to embark on journey towards a healthier lifestyle. Those were drinking the required intake 48 of water, more vegetable and fruit consumption, eating whole grains and last but not least remembering to include physical activity in employees weekly routine. Eightytwo live trainings were conducted and they incorporated 30-minute physical activity sessions lead by specialized trainers. The live sessions covered the distribution centers as well such as Obour, Abo Rawash and Bargeel. The live sessions didn t stop there, it covered Kafr El Dawar, Assiout, Mansora and Domiatte as well. The training included a pre and post questionnaire to ensure increased knowledge retention for all employees. To encourage increased water consumption and increased fruits and vegetables consumption, water flasks and fruit and vegetable bundles were distributed among all employees attending the training in the factories to encourage commitment towards a healthier lifestyle. The physical activity sessions were very engaging, as they included competitions with prizes for the winning team. The NQ foundation course on I-learn was launched at the Head Office, to simplify the training so each employee can start and end the training at their own pace. Live sessions took place as well for the majority of the functions. The training covered 100% of Nestlé s employees to reach 2700 employees in the factories, distribution centers and head office with an excellent level of positive feedback and engagement across all premises.

49 Training at Nestlé NEAR Building on our passion to continuously improve and close gaps and taking pride in being a learning organization, the Training Department at NEAR is keen to support the business with developing competencies to enhance leadership, functional or methodological. Driven by our global mission in becoming the world s leading Nutrition, Health and Wellness company, we have programs focusing on developing our employees knowledge on nutritional facts, how to maintain a healthy lifestyle, the food pyramid. We are also keen on driving leadership development practices and embedding them in our development programs. At Nestlé, we strongly believe in the application of the model, where it is focusing on learning by doing (70% development impact), coaching and seeking mentors (20% development impact) and finally education and learning (10% development impact). We attempt to incorporate two of those approaches or all of them within our programs in order to ensure the highest development impact possible. Covering almost 2,500 employees in various development programs. We also believe that learning is an ongoing journey, and within our policy we believe in supporting our employees to pursue their post graduate studies in the form of a 1-year unpaid leave and fund up to 50% of the cost of the studies. The objective is to motivate them to enhance their functional knowledge and also support our company s business objectives. We are committed to provide training and learning solutions for all employees in order to support them in achieving their business objectives. Our Training Solutions are divided into four main categories: 1. Tailored Local trainings that suit our needs. 2. International Trainings which are hosted at the center in Rive Reine, Switzerland. 3. Supporting our employees to pursue individual trainings and post-graduate studies by funding a certain percentage on the fees and a policy of an unpaid leave of one year. 4. Encouraging employees to access our Learning Management system that has an abundant number of e-learning programs. Our People and Compliance Commitments 49

50 Medical Programs at Nestlé NEAR Blood Donation Campaigns In efforts to encourage Nestlé Employees, Nestlé conducts annual campaigns to encourage employees to donate blood. Every year, the cause of the campaign donation is different. In 2016, the campaign was conducted in cooperation with the National Cancer Institute. In previous years, Nestlé also cooperated with the Hospital and other institutes. Blood donation campaigns have proven great success as more and more donors join each year. To encourage employees, Nestlé gives the donors the opportunity to do free medical check-ups on the go like: complete blood picture, blood pressure tests and hepatitis tests. Not only is donating blood extremely beneficial to those on the receiving end, but also is of benefit to the person donating blood. At the end of the day, Nestlé believes that donating blood is one act of kindness that will make a difference to the society at large. Ergonomics Initiative In continuous efforts for Nestlé to provide a safe and healthy workplace to it s employees, Nestlé has adopted the ergonomic principal. In the workplace, the number and severity of Musculoskeletal Disorders (MSDs) can be common but is a critical issue that Nestlé will continue to combat. Ergonomics helps fit a job to a person to lessen muscle fatigue, increases productivity and reduces the number and severity of workrelated MSDs. Nestlé has hired a third party to implement the ergonomic principle on its employees. Last year, they conducted awareness sessions and trainings for Head Office employees about the importance of ergonomics and conducted self-assessment to employees. This year, the third party evaluated Nestlé employees by assessing different ergonomic points and needs. In the following years, the third party will conduct one-to-one reports, exercises and trainings to employees for the prevention of any MSD cases. Afterwards, re-evaluations and assessments will be held to further enhance employees lives. Awareness Sessions on Common Diseases In order for Nestlé to increase Employees awareness and prevention of diseases, each year the medical department chooses a topic of interest and conducts awareness sessions to employees about it. In 2016, the topic chosen was Virus C and was given to all Nestlé sites all over Egypt focusing on what the disease is, how to prevent it, and the treatment. In previous years, other topics were discussed like: diabetes, cholesterol and hypertension. The medical department at Nestlé is looking forward to ensure the health and safety of employees at all times. 50

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