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A message from our Chairman and our CEO

The year 2016 was marked by two important milestones.

First, Nestlé celebrated its 150


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 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.

The goals set out a vision for ending poverty, hunger and inequality, and protecting the Earth’s

natural resources by 2030. 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 (please see

page 24


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.

G4-1, Economic performance G4-DMA

Nestlé in society – Creating Shared Value and meeting our commitments 2016