Why is CSV important for investors?
Nestlé Articles of Association
state that Nestlé shall, in pursuing its
business purpose, aim for long‑term, sustainable value creation. This is
entirely consistent with our fundamental belief that Creating Shared Value is
the way we should do business – that what is good for shareholders should
also be good for society.
Investors are increasingly recognising that the value of companies is in intangibles and that looking
only at the financial balance sheet is no longer sufficient. Global initiatives such as the Principles for
Responsible Investment and the Sustainable Stock Exchanges initiative, which is supported by
Nestlé, are playing an increasing role in promoting responsible investment and integrating
sustainable development into the mainstream.
For long‑term investors particularly, Creating Shared Value is important in that it supports the
long‑term health of the company. With its emphasis on both shareholders and society, the CSV
approach to business helps us define which products and services are in line with the expectations
For example, we have recently analysed the performance of our businesses with an above‑average
Nutrition, Health and Wellness (NHW) dimension in terms of performance against our 60/40+ and
Nutritional Foundation criteria. This showed that these businesses performed better than those
businesses where the NHW dimension was below average.
Our forward‑looking materiality analysis( page 17
) helps us anticipate consumer trends including
potential legal challenges and ensures we continue to meet consumer expectations of sustainable
behaviour. The latest matrix shows that issues such as over‑ and under‑nutrition, water and
responsible marketing are central to the delivery of our business strategy, while climate change and
human rights are vital for our business success.
Creating Shared Value
report gives investors an insight into our performance on a range of
issues by outlining our commitments, targets and progress annually while also explaining the
broader context of our operations. Our detailed online report gives a fuller narrative and uses the
Global Reporting Initiative G4 guidelines and other leading frameworks such as the UN Guiding
Principles Reporting Framework to provide data that can also be compared with others in the sector.
The information in our reports is also used by leading indices to assess our performance and our
progress (seepage 6
With the launch of the Sustainable Development Goals, companies and investors have an
opportunity to collectively make a huge contribution to the creation of a sustainable society.
We welcome feedback on our report and look forward to dialogue with investors on the topics
For investor benefit information by
impact area, see pages 32 , 75
,95 , 109 , 133 , 153
Nestlé in society – Creating Shared Value and meeting our commitments 2016