nestlé millennium development goals 2010 · theeight millennium development goals(mdgs) provide...

Nestlé and theUnited NationsMillenniumDevelopmentGoals 2010

1 Foreword

4 Summary

6 Millennium DevelopmentGoal 1


18 Millennium DevelopmentGoals 4 and 5



Nestlé and the United NationsMillennium Development Goals

Creating Shared Value

Eradicate extreme povertyand hunger

Promote gender equality andempower women

Reduce child mortality /Improve maternal health

Ensure environmentalsustainability

Develop a global partnershipfor development

Cover: Yan Reach is one of thousandsof rural farmers to be supported byInternational Development Enterprises(IDE) Cambodia’s micro-franchiseproject. Winner of the first Nestlé Prize

in Creating Shared Value, the IDE projectenables farmers like Yan to buy seedsand get technical advice on best practicefrom independent Farm Business Advisors(see pages 28–31).

© June 2010, Nestlé S.A., Public Affairs

Nestlé S.A.Avenue Nestlé 551800 VeveySwitzerlandwww.community.nestle.com

Concept and writingNestlé S.A., Public Affairs,with Melitta Campbell

Visual concept and designNestec Ltd., Corporate Identity & Design,with Esterson Associates

PhotographyMarkus Bühler-Rasom,Sam Faulkner/NB Pictures,Charlie Gray,Harmen Hoogland/Nestec,George Osodi/Panos Pictures,Fernanda Preto,Sergio Santorio,Holly Wilmeth

IllustrationSimon Pemberton/Heart

ProductionAltavia Swiss

PaperThis report is printed on Arctic Volume,a paper produced from well-managedforests and other controlled sources certifiedby the Forest Stewardship Council (FSC).

By supporting small rural farmers,Farm Business Advisors earn anadditional income from selling theirproducts and services.

Nestlé and the United Nations Millennium Development Goals 2010 1

Foreword:Nestlé and theUnited NationsMillenniumDevelopmentGoals

In 2000, the United Nations launched the MillenniumDevelopment Goals (MDGs), outlining eight importantgoals related to poverty reduction to be achieved by 2015.Our immediate response was to take stock of what Nestlécould do to support the achievement of the MDGs throughthe continuation and expansion of existing efforts, andthrough the launch of new efforts.

In 2006, we issued our first report on those Nestlé activitieswhich contribute to achieving the MDGs, and were, to ourknowledge, the only company to issue such a report.

Now that a decade has passed since the creation of theMillennium Development Goals, we thought it appropriateto again take stock of our actions related to the MDGs.The report contained in these pages and the related websitedescribe the 292 Nestlé business activities and programmeswhich support the Millennium Development Goals.

Nestlé’s basic business principle is that we can only createvalue for our shareholders if at the same time we create valuefor society. We have identified three focus areas where, forNestlé, business and societal value creation can be optimised:nutrition, water, and rural development. We call this CreatingShared Value.

About half of all our factories are in developing countries,mostly in rural areas, and we source about 70% of ourraw materials from these rural areas. We aim to ensure that,more than being present in these regions, we are activelyleveraging our presence to reduce poverty, improvenutrition and health, and preserve the environment forfuture generations.

The nature of our business means that we have the mostimpact on MDG 1 – eradicating extreme poverty and hunger.Through our CSV concept, we work directly with hundreds

Nestlé and the United Nations Millennium Development Goals 20102

of thousands of farmers to help them improve the quality andquantity of their produce and, as a result, increase their familyincome. This also brings greater access to nutritious and saferfood to whole regions.

Through many of our business activities and related projectswe promote gender equality and education for women andgirls, and in some regions, we create new opportunities forwomen to participate in income generating activities, suchas dairy farming (MDG 3). As the world’s leading Nutrition,Health, andWellness company we are continually improvingthe nutritional quality and taste of our products, fortifyingmany of them to address the deficiencies of specificpopulations (MDGs 4 and 5). As a company committedto continuous improvement, we are making considerableinvestments to stay at the forefront in reducing theenvironmental footprint of our operations and thoseof our entire value chain (MDG 7).

We wholeheartedly support the attainment of theMillennium Development Goals, but also recognise thateliminating global poverty and its consequences will takemore than15 years. Much progress has been made, but itwill require many more decades of effort to eradicate povertyand hunger. We believe that businesses that build corporatesocial responsibility into their basic business model canmake a significant contribution, and we offer this reportas a description of how we as a company attempt to serveshareholders and society, creating value for both.

Peter Brabeck-LetmatheChairman of the Board

Paul BulckeChief Executive Officer

Nestlé’s basicbusinessprinciple is thatwe can onlycreate value forour shareholdersif at the sametimewe createvalue for society.


CreatingShared Value

Sustainability

Compliance

CreatingSharedValue

Nutrition, water,rural development

Laws, business principles, codes of conduct

Protect the future

Summary

The intent of the UN MillenniumDevelopment Goals is to focusleaders and organisations aroundthe globe on improving qualityof life for millions of the world’spoorest people. Our Creating SharedValue concept has close parallelswith the UN MDGs as it focuses ourbusiness on generating value forour people, our shareholders andsociety as a whole.We believe that to have long-term

business success, we mustcontribute to the wellbeing andfuture of the people who farm andsupply our raw materials, workin our offices and factories, andsell and consume our products.There are three areas where webelieve we can particularly

maximise value creation: nutrition,water and rural development.As a necessary condition for

Creating Shared Value, we need todemonstrate responsible behaviourby assuring compliance andsustainability. This includescomplying with Nestlé’s CorporateBusiness Principles, national laws andinternational norms, and ensuringthat our actions are environmentallysound, socially just and economicallyviable. However, CSV goes beyondcompliance and sustainability. It aimsto create new and greater value forsociety and our shareholders withinour three focus areas.To do this we continually review

our value chain to ensure thatwe optimise the positive aspects

of our work, such as the resourceswe save, the opportunities wecreate, and the nutrition we provide.In doing so, Nestlé maintainsa long-term perspective onbusiness development andwelcomes dialogue with externalstakeholders who are committedto principled behaviour andconstructive engagement.On the following pages you will

read examples of the ways we aredoing this, grouped under six ofthe Millennium Development Goalheadings reflecting the areaswhere we are having mostimpact and where we are makingspecific investments to securethe future for our business,for society and for the planet.


The UNMillenniumDevelopmentGoals summaryThe following informationis based on United Nationsrecommendations andstatistics.

In September 2000, 189 nationssigned up to the United NationsMillennium Declaration,committing to halving thenumber of people in the worldwho live on less than oneUS dollar a day by 2015.The eight Millennium

Development Goals (MDGs)provide a framework forachieving this aim, and set outtime-bound targets by whichprogress can be measured.These goals are:

Goal 1: Eradicate extremepoverty and hunger56 Nestlé projects,36 countries, 5 continentsLatest estimates from the WorldBank show that 1.4 billion peoplein developing countries wereliving in extreme poverty in2005. Recent increases in foodprices are expected to pusha further 100 million peopleinto extreme poverty.After financial aid, the greatest

impact towards this goal willcome from support focusedon helping people in developingnations to: generate sustainableincome, especially womenand young people; protectthemselves from the effectsof economic and climatefluctuations; and access safewater and nutrition, especiallyin Southern Asia and Africa.

Goal 2: Achieve universalprimary education27 Nestlé projects,21 countries, 5 continentsEducation is the foundationfor economic development.By receiving a good basiceducation, children will havea stronger chance of earninga decent income in the futureand positively contributing totheir community.

While much progress hasbeen made towards this goal,there are still tens of millionsof children who do not go toschool on a regular basis, themajority of whom are girls,and those living in rural areas.

Goal 3: Promote genderequality and empower women11 Nestlé projects,11 countries, 3 continentsEnabling women to generateincome on a level equal withtheir male counterparts willhave a significant impact onworld poverty.While in many areas women

have greater access to educationand income-generating activitiesthan ever before, specificissues prevent them fromachieving parity with men.The gender gap remains widein many countries, mostnotably in Southern Asia andsub-Saharan Africa.

Goal 4: Reduce child mortality5 Nestlé projects,5 countries, 4 continentsWhile worldwide deaths ofchildren under five years of agehave declined between 1990and 2006, there is still muchto be done in developingcountries, where a child is13 times more likely to die beforeits fifth birthday than a child bornin an industrialised country.Most of these young deaths

are from entirely preventablecauses such as pneumonia,diarrhoea, malaria and measles,largely as a result of malnutrition,lack of primary health care,and lack of access to basicinfrastructure such as waterand sanitation.

Goal 5: Improvematernal health6 Nestlé projects,6 countries, 4 continentsEvery minute a woman diesof complications related topregnancy and childbirth,according to 2005 estimates.Almost all of these womenare from developing countries.The children these womenleave behind are up to 10 timesmore likely to die prematurely

than those whose motherssurvive childbirth.The majority of these deaths

are preventable. Giving womenaccess to better nutrition,sanitation, protection fromviolence, contraceptives and sexeducation, and maternal healthcare would save millions of lives.

Goal 6: Combat HIV/AIDS,malaria and other diseases7 Nestlé projects,6 countries, 3 continentsThese diseases continue to claimthe lives of millions of peoplein the developing world,particularly in sub-Saharan Africa.Most of these deaths can beprevented through increased aid,better nutrition, access to basichealthcare and health education,and vaccination and controlinterventions.

Goal 7: Ensure environmentalsustainability52 Nestlé projects,31 countries, 4 continentsAs well as giving vulnerableregions the support needed toprotect themselves against theeffects of climate change, it isvital that the root cause is tackledby promoting environmentalsustainability.Achieving this goal will also

require developing countriesto cultivate and strengthentheir economies, diversify theincome of their population,strengthen their natural defencesand become better preparedfor future disasters.

Goal 8: Develop a globalpartnership for development128 Nestlé projects,56 countries, 5 continentsTo achieve global enhancement,emerging economies needfinancial aid and access to thetechnology and knowledgerequired to develop andgrow adequately.Doing so will enable them to

invest in the basic infrastructureand systems people in theseregions need, particularly inhealthcare and education,and to put in place effectivepolicies for social andeconomic development.

Nestlé and the MillenniumDevelopment GoalsPoor diet and lack of opportunityhave given rise to many of theissues targeted by the UNMDGs. Nestlé can thereforesupport the attainment of thesegoals by making safe andnutritious food productsaccessible to consumers inpoor regions and by continuingour presence in rural anddeveloping communities,providing important sources ofinvestment, knowledge andopportunity.Our Creating Shared Value

(CSV) concept is the perfectdriver for this within ourbusiness as it ensures thatwe operate responsiblyand create sustainable valuefor our shareholders, whilstsimultaneously creating valuefor society. We have analysedour value chain and determinedthat the areas of greatestpotential both for our businessand for society are nutrition,water, and rural development.These activities are core toour business strategy and vitalto the welfare of the peoplein the countries in which weoperate. They will also havea positive impact on thefulfilment of the MDGs.While Nestlé’s initiatives

impact each of the eight MDGsto various degrees, in thisreport we have chosen to focuson MDGs 1, 3, 4, 5, 7, and 8 asthese six goals are best alignedwith our focus areas ofnutrition, water and ruraldevelopment. To find outmore about our projects andinitiatives that positivelyimpact MDGs 2 and 6, seewww.community.nestle.com.These three focus areas

are also incorporated intoNestlé’s key performanceindicators, placing them at theheart of our organisation.These indicators measure andreport on CSV, sustainabilityand compliance, and serveto ensure that we continueto invest in those projects thathave the most positive andlasting impact on society,as well as our business.


MillenniumDevelopmentGoal 1

Eradicateextreme povertyand hunger

56 Nestlé projects

36 countries

5 continents

For more information visitwww.community.nestle.com/mdg1

Of all the UN’s MillenniumDevelopment Goals (see page 5),Nestlé has the most impact on thefirst – eradicating extreme povertyand hunger. Creating Shared Value,our basic business principle, ensuresthat we are not only present in manyof the world’s poorest regions, butare also actively engaged in projectsthat help people in these areasto prosper.Each year, Nestlé spends

approximately CHF 20.4 billion onagricultural raw materials. Roughlyhalf our factories are in the developingworld, primarily in rural areas, bringingimportant and sustainable sourcesof income to these deprived regions.We work with about 540000

farmers in total, with the supportof approximately 5000 agriculturalextension workers and about1000 agronomists.Our long-established practice

of transferring technical knowledgecombined with our ability to operatein diverse and complex environments,enables us to help people in emerging

economies to increase and protecttheir income, now and for the future.The very nature of our business

enables us to make safe, affordableand nutritious products availableto people in low-income regions.These products are often fortified oradapted to meet the budgets, tastesand dietary requirements of peoplein specific areas. As a result, we areimproving the lives of millions of peoplein developing regions.Our long-term approach and our

belief in Creating Shared Value, bothfor our shareholders and for society,mean that we will continue to makea difference well into the future.Below, we set out just a few

examples of how we are helping toeradicate extreme poverty and hunger.You can find details of more suchprojects online at www.community.nestle.com.

Supporting dairy farmersNestlé is the world’s largest dairycompany. We buy 12 million tonnesof milk each year from farmers in thedeveloping world, injecting millionsof US dollars into rural communities.Our considerable experience and

expertise enable us to deal directlywith farmers and work with them toimprove the quality of their produce,

the productivity of their herds and thesustainability of their activities by givingthem access to financial support andproviding them with free technicaladvice and training.In so doing, we safeguard our long-

term supply of quality milk, improve thelivelihoods of rural communities, protectthe environment, and secure accessto affordable nutritious food productsfor people in developing regions.This is a clear example of how our

Creating Shared Value concept createsimportant mutually beneficial situationsthat have lasting positive effects.The following examples further illustratethe effects of CSV in action:

IndiaTo manage the fragmented milk-supplychain in India effectively, NestléAgricultural Services used experiencegained in other parts of the worldto establish a system of direct andefficient contact with the farmersin Moga, Punjab.The system employs veterinarians

and agronomists to supervise milkroutes and provide farmers with adviceon various issues, irrespective ofwhether or not they are Nestlé suppliers.There is no charge for veterinaryservices, while medicines are providedat wholesale cost. These costs are


The Village Women Dairy DevelopmentProgramme in the Moga milk district ofPunjab, India, focuses on advising femalefarmers on efficient water usage and otheragricultural practices.


adjusted against subsequent milkpayments to the farmers, making themaffordable. We also support farmers ingrowing their operations, for examplewe assist with artificial inseminationprogrammes for their cattle, subsidisethe purchase of milking machines andhelp them to procure loans.During the past few years we have

invested approximately INR 500 million(USD 10.8 million) in Moga to: installcooling tanks and chilling centres topreserve the quality and nutritionalvalue of milk; provide veterinary aid;promote breed improvement; assist indairy development projects and otherrelated activities. We have alsoinvested around INR 300 million(USD 6.5 million) in procuring goodson behalf of farmers, to be supplied atwholesale prices.The system used in Moga enables

us to purchase more and better qualitymilk directly from hundreds ofthousands of farmers. As a result,we have been able to improve thenutritional value of not only ourproducts but also that of the milkavailable in the region, and havebrought increased income to thearea’s dairy farming communities.In addition to our direct support

for farmers, we are continuouslyimplementing initiatives to improvequality of life in the communitiesaround our factories in India, includingthe provision of clean water sourcesat village schools and nutritioneducation for teenage girls.

ChinaNestlé’s Shuangcheng milk productionfacility is our fourth largest in terms ofannual dairy production. Over the past20 years, we have created a uniquemilk-collection programme called”Factory and Farmers“, which providesfarmers with technical assistance whileeliminating the need for middlemen.

This has improved traceability andaccountability across the supply chain.Through the programme, Nestléannually provides more than 300 freetraining sessions for dairy farmersin the region. Led by agriculturalextension experts, the sessionsintroduce farmers to best practicesand new tools, and offer continuousskills development.Farmers are also given access to

new technologies to improve cowselection and to ensure feed quality,as well as biogas digesters toreduce effluents contaminating localwater resources.

East AfricaNestlé has entered into a partnershipwith the East African Dairy

Development Board (EADD) to helpsecure and increase sustainable milkproduction in Kenya and Uganda overthe next two years, using a programmeof training, advice and assistance basedon our experience in other regions.The programme, financed by

the EADD and the Bill and MelindaGates Foundation, offers technicalassistance to dairy farmers in allaspects of feeding, breeding andmilking practices. To ensure thatproducts meet Nestlé’s safety andquality standards, food safetymanagement across the entire valuechain – from farm to processor – isat the core of the training programmeand subsequent audits are conducted.Nestlé also provides technicalassistance to the two EADDfactories involved, again with a clearemphasis on quality control and foodsafety management.As a result of the programme,

it is estimated that 155000 familiesin Kenya and Uganda will be able toemerge from extreme poverty over thenext ten years and the real income ofdairy farmers in the region will double.

Our “Factory and Farmers“ milk collectionprogramme in Shuangcheng, north-eastChina provides farmers like Zhengjun Wangwith proper manure storage facilities as wellas biogas digesters to reduce effluentscontaminating local water resources.

Dairy farmers in Kenya receive advice onfeeding, breeding and milking practicesthrough our partnership with the EastAfrican Dairy Development Board (EADD).


VenezuelaTo help address the gap betweenmilk supply and demand in Venezuela,we launched our Milk ProductionEncouragement Plan to help farmersincrease milk production and delivera higher quality yield.The plan, developed together with

the dairy industry and the VenezuelanGovernment, has already seen somevery positive results since its launch inthree states in 2005. As well as givingfarmers the opportunity to increase theirincome and helping the Venezuelan dairyindustry to become more sustainable,it has achieved an 80% increase inmilk and generated 5000 new jobs.Improving the quality as well as thequantity of milk production is also havinga positive impact on consumer health.

The plan consists of four stages:technology transfer, nutritionalenhancement of dairy cattle, geneticimprovement of dairy cattle, and therenovation of farm facilities. It alsohelps farmers gain access to thefinance they need to make therequired changes and investments.The Milk Production

Encouragement Plan reflects thelong term nature of our CreatingShared Value approach to business.For example, the links establishedwith government departments andfinancial institutions, the knowledgegiven to farmers, the increasedemployment, and the improvementsmade to cattle and farming facilities,will be of continued economic benefitlong into the future.

In 2009 the plan’s provision ofviable, sustainable and innovativesolutions to real problems inVenezuela earned Nestlé theEureka 2009 Innova Social award.The examples outlined above

show how, by giving dairy farmersaccess to new knowledge andtechnologies, we enable them toimprove the quality and quantityof milk produced by their livestock.This allows them to obtain greaterfood and income security andimproves the economic and socialconditions of their communities.By supporting farmers in this way,we also enhance our own abilityto operate in the region long-term,which further validates our sharedvalue approach.

Farming cooperatives in El Salvadorproducing Fairtrade-certified NescaféPartners Blend benefit from the adviceof our agronomists to grow better qualitycoffee more efficiently and sustainably.


Supporting coffee farmersCreating Shared Value is based on ourbelief that in order to create value forshareholders, we must first create valuefor society. The correlation betweenthese two points can be clearly seenin our work with coffee farmers.We are the world’s largest direct

buyer of coffee, purchasing 780000tonnes annually. These raw materials arevital to our business, so it is crucial thatwe secure long-term access to them.To do this, we need to address global

issues such as food and water security,and work with coffee farmers tohelp them improve the qualityand quantity of their produce andadopt environmentally sustainablefarming practices.We achieve this through education

programmes and technical advice,as well as propagation projects thatprovide farmers with high-yielding,disease-resistant plantlets to replaceageing crops.Better quality produce and more

sustainable practices mean that farmerscan increase and protect their incomefrom fluctuations in coffee prices,which can prove devastating. Theyalso mean that Nestlé can source moreraw materials from rural low-incomeregions, improving quality of lifefor local farmers and often raisingthe standard of living for entirerural communities.In addition, we help rural coffee

farmers to adopt sound environmentaland water management practices.A good example of this is our NescaféPartners Blend, outlined below.

Nescafé Partners BlendThrough our goal to create sharedvalue, Nestlé has been involved ina number of initiatives to developsustainable agricultural practicesand improve the lives of the world’scoffee farmers.

The latest of these initiatives is theNescafé Partners Blend brand, our firstFairtrade-certified coffee, with whichwe aim to promote the sustainabledevelopment of the coffee industry,support rural communities and helpsolve the longstanding problem offluctuating coffee prices in Ethiopiaand El Salvador.In El Salvador, for example, we are

working with four cooperatives toprovide farmers with the right resourcesto grow better quality coffee moreefficiently and more sustainably.This work has included the introductionof agronomists who help farmers betterunderstand modern processes forproducing and harvesting coffee,and show them how to employ thesetechniques effectively. Our agronomistsalso offer expert advice ondiversification (the practice of branchingout into other agricultural areas), helpingfarmers identify the most appropriatesecondary produce for their plot.To improve day-to-day living

conditions, new houses have beenprovided for some workers in thecooperatives as well as a medical clinicand training centre for the community.Education of local children has becomea particular focus. A project to provideschooling for 700 pupils, giving themthe knowledge and skills to help improvethe long-term prospects of their regionis underway.Through investment in farmer training

and the development of sustainableagricultural practices, as well as in theinfrastructure and living conditions offarming communities, our CSV conceptis stimulating the growth of ruralcoffee growing regions, helping themto emerge from extreme poverty.

Supporting cocoa farmersFour and a half million small farmersgrow cocoa worldwide. West Africa isthe largest producer, contributing

Our continued investment in plant scienceand sustainable production in Côte d’Ivoirethrough The Cocoa Plan has seen higheryielding, disease-tolerant cocoa plantlets(developed at our R&D centre in Tours,France) distributed to farmers in the region.


almost 70% of the total supply.However, after many years of under-investment, the industry is underthreat, as are the livelihoods of thosepeople who depend on it.Nestlé purchased 350000 tonnes

of cocoa in 2009 – 11% of the world’ssupply. As a major buyer, we believewe play a key role in improving theindustry and building a better futurefor cocoa farming communities, byensuring we have reliable access tothe high-quality, responsibly-farmedmaterials required for the continuedsuccess of our chocolate businesses.One of the important ways we are

helping to improve and stabilise thecocoa industry and reduce povertyand hunger in cocoa farming regionsis through The Cocoa Plan, aninitiative that fully embraces CreatingShared Value.

The Nestlé Cocoa PlanIn 2010, we committed CHF 110 millionover the next decade to The CocoaPlan. This investment will be focusedon Côte d’Ivoire and Ecuador (theworld’s largest sources of cocoa andfine cocoa respectively), and will bespent predominantly in plant scienceand sustainable production. It buildson the CHF 60 million we have alreadyinvested in these regions in the past15 years.Our vision for the plan is to help

cocoa farmers to run profitable farms,operate with respect for theenvironment and enjoy a betterquality of life, allow their children tobenefit from an education, and forcocoa farming to be seen as arespectable profession.Achieving this vision requires us to

focus simultaneously on four key areas:Training farmers: Training helps

farmers to improve and protect theirincomes by teaching them goodagricultural practices. Training is

delivered through personal contactwith agronomists, group sessions andFarmer Field Schools. The latter arefunded by the chocolate manufacturers’industry as a whole and have alreadybenefited more than 80000 farmers.The Cocoa Plan uses proven

methods to help farmers increase thequality and yield of their harvest andadopt sustainable farming methods.In its first year the plan will train around2000 farmers.In addition, the training schools

provide a forum for raising and tacklingissues such as child labour, theimportance of schooling for children,and HIV/AIDS and malaria prevention.Investing in plant research: Our

Research and Development (R&D)Centre in Tours, France, is working withour R&D Centre in Abidjan, Côte d’Ivoire,and other research institutes, topropagate higher yielding, disease-tolerant cocoa plantlets. In 2009 we grew100000 plantlets and by 2012 this willhave increased to one million annually.This is our most important area

of investment as it will have a directimpact on the ability of cocoa farmers

to grow high-yielding, quality cropsover the long-term, and thus secureand sustain a better income.Improving the supply chain:

By working closely with farmingcooperatives and paying a premiumprice for quality produce, we aim toreduce the complexity of our supplychain. By eliminating the need formiddlemen, we improve farmers’incomes and secure access to betterquality cocoa beans.Creating better social conditions:

The Cocoa Plan also sees Nestléworking with partner organisations toimprove living conditions in rural cocoafarming communities by providingbetter access to basic healthcare,education, sanitation and water.For example:Through our work with the

International Cocoa Initiative (ICI),set up specifically to end abusivechild labour practices, we ensurethat children in cocoa-growingcommunities are not exploited andhave access to education.Since 2002, we have been working

in partnership with the International

Agronomists Eduardo Eusebio Pérez Chuezand Luisa Marillac Trujillo examine higher-yielding cocoa trees in Ecuador, developedat our R&D Centre in Tours, France.


Federation of Red Cross and RedCrescent Societies (IFRC), first on HIV /AIDS and since 2006 supporting theirGlobal Water and Sanitation Initiative(GWSI). The latest field project with theIFRC focuses on access to clean waterand improved hygiene for children inschools of cocoa farming villages inCôte d’Ivoire.In addition, by the end of 2010, some

340000 children will have benefitedfrom education programmes fundedby the World Cocoa Foundation (WCF),of which Nestlé is a co-founder.One of the first Nestlé products to

exemplify our Cocoa Plan principleswas KitKat, which became Fairtrade-certified in the UK and Ireland inJanuary 2010. The certification reflectsour CSV concept through its long-termdirect commitment to cocoacooperatives, which includes additionalpayments for farmers to invest incommunity or business-developmentprojects of their own choice, such asthose designed to improve healthcareand education.More information about these

projects and others can be foundat www.thecocoaplan.com andwww.community.nestle.com.

Supporting growersof grains and legumesOne of the most significant problemsfacing African farmers is that posedby mycotoxins – toxic chemicalsproduced by the moulds or fungiof specific plant species.Mycotoxins exacerbate hunger and

poverty: an estimated 30% of grainsproduced in Central and West Africaare contaminated, reducing foodsecurity and leaving farmers with lowerincome. High or chronic exposure tothese toxic chemicals can also resultin various diseases, including cancer,with children and lactating mothersbeing most at risk.

Cereal grains and legumes (beans,peas, etc.) are important to Nestlé’sbusiness, particularly for fast-growingbreakfast cereals businesses in thoseregions where consumer demand foraffordable brands such as GoldenMorn, Cerelac and Cerevita is strong.Mycotoxin management and control istherefore high on our agenda to ensurea steady supply of safe raw materials,while at the same time helping ruralfarmers and their communities.As a result we launched our Grain

Quality Improvement Project. This twopronged approach teaches small-scalefarmers how to avoid cropcontamination, while also raisingawareness of the health implications ofmycotoxin-contaminated grains amongagricultural extension officials, foodcompanies, retailers, transporters andwholesalers. The project aims to reducemycotoxin contamination levels in Côted’Ivoire, Ghana and Nigeria by 60%.The impact of this project goes

far beyond our business aim ofprotecting our access to qualityraw produce. In each of these threecountries – Côte d’Ivoire, Ghana and

Nigeria – at least 3000 rural farmerswill be able to produce grains ofacceptable mycotoxin levels, attractinghigher prices and therefore higherincome, and providing people inthe region with access to a saferdiet. The project is expected tobe rolled out to Zimbabwe, Kenya,and other countries with knownmycotoxin issues.As a business, securing access

to quality raw materials is key to oursuccess. By doing so according to ourCSV principles, we have been able topromote sustainable development andhelp alleviate poverty and hunger inmany of the world’s deprived regions.Our long-term approach has led

us to focus much of our research anddevelopment budget on identifyingbetter agricultural practices andpropagating disease-resistant crops.We actively share our knowledgeand expertise to support economicdevelopment, and work in partnershipwith governments and NGOs tomake lasting improvements to socialconditions in the communities wherewe operate.

Mycotoxin management and control ishigh on our agenda in Tamale, northernGhana, where our Grain QualityImprovement Project aims to reducemycotoxin contamination levels by 60%.


11 Nestlé projects

11 countries

3 continents


Women are the cornerstones ofany successful society. In mostcommunities they are the ones whocare for the household, make decisionson health and nutrition, and overseethe education of children. They arealso often undervalued and limitedin their opportunities.Our Creating Shared Value concept

applies as much to our own peopleas it does to our shareholders andsociety at large. We have policiesin place to ensure that the womenin our organisation have opportunitiesto succeed, such as: flexible workingoptions; childcare support wherefeasible; competitive maternitypolicies; and a range of trainingopportunities. In 2009, 27% of allleadership positions across our globaloperations were held by women,which is an increase of 2% fromthe previous year. Around the worldNestlé businesses are currentlydeploying locally adapted action planson gender balance.In addition, we have developed

and support many programmes


Promote genderequality andempower women

in emerging economies targetedspecifically at helping women generateincome and actively encouragingthe education of women and girls.You can read about many of

these initiatives at www.community.nestle.com, however, here aresome examples:

Female livestock workers, PakistanInspired by our work training womenlivestock workers in rural Punjab,Pakistan, in 2006 we went intopartnership with the United NationsDevelopment Programme (UNDP)to create a wider project calledCommunity Empowerment throughLivestock Development and Credit(CELDAC) to train more womenin the region.The goal of the programme is

to enable rural women to improve theirlivelihoods by providing them withtraining in basic animal healthcare,primary livestock management, milk

production and extension services,and by facilitating access tomicrofinance. As the programmecreates close links with farmers,it also eliminates the need formiddlemen who take the lion’s shareof the profit.Empowering these women by

providing them with the skills to carryout basic veterinary services is key.Although they are the primarymanagers of livestock, they haveno access to animal healthcarefacilities. There are few vets coveringthe numerous villages in the Punjaband those available are predominantlymale, making contact with femalefarmers difficult. This means thattreatable, everyday illnesses oftenbecome serious and reduce the lifeexpectancy of animals, leavingfarmers in severe economic difficulty.With our training, women are

provided with a kit comprisingmedical instruments, medicinesand vaccines. They are then self-employed and it is expected that theywill earn INR 100–500 (USD 1.5–8) foreach service provided in their village.As the Punjab is one of Pakistan’s

largest milk producing regions,the CELDAC programme is perfectlyplaced to make a significant impact.To date, 800 women have benefited

Female livestock workers in Pakistanreceive training from our CommunityEmpowerment through LivestockDevelopment and Credit (CELDAC) initiative,sponsored in partnership with the UnitedNations Development Programme.


This trainer helps to empower otherwomen in her region by providing themwith basic veterinary skills and encouragesthem to adopt sustainable farmingpractices by improving their knowledge ofwater management and milk production.


from the month-long training andservices CELDAC provides. It has leftthem better able to manage and carefor their animals and provide affordablebasic veterinary services, and hasimproved income and food securityin their local communities.

Opportunities forwomen distributorsIn developing regions, our PopularlyPositioned Products (PPPs), manyof them fortified to help meet localnutrition needs, use new distributionmodels to deliver more safe quality

products to low-income consumersat affordable prices.In Brazil, for example, we use

a network of micro-distributors andindividual sellers with handcarts toreach consumers who would otherwisenot have access to our products.All our direct sellers in Brazil arewomen from impoverished areas ofcities such as São Paolo and Rio deJaneiro, with most coming from theshantytowns, or “favelas”. Thesewomen are recruited by their localmicro-distributor and provided withappropriate training from us to ensure

they have the best chance of successand are capable of advising theircustomers on the nutritional aspectsof the products.Each woman works as an

independent sales representativewithin her neighbourhood, leavingher free to work as much or as littleas she needs. On average these sellersmake 40% more than the minimumwage and some make as much asBRL 2500 (USD 1400) a month.As these women were rarely

employed before becoming sellersof our PPPs, our initiative brings

Enthusiastic pupils answer questions ata Zakoura Foundation class in Morocco.With our support, education is being madeaccessible to thousands of children,particularly girls, who are unable to attendregular public schools.


an important source of new incometo these areas. It also gives the womena renewed sense of independenceand worth and, through theirpersonalised selling method, providesconsumers with nutritional guidance.We currently have 200 micro

distributors and more than 6000saleswomen across Brazil, sellingfortified Nestlé products to around700000 lower income consumerseach month. This means that theseareas are not only benefiting fromnew income, but also from productsenriched with vitamin A, iron andzinc – the three major nutritionaldeficiencies in Brazil.In 2010, we aim to expand the

programme to include 350 micro-distributors and 10000 saleswomen.

The Zakoura Education FoundationThe Zakoura Foundation in Moroccois helping to develop the potentialof women and girls in rural areasby making education accessibleto children who are unable to attendregular public schools, and providingvocational and literacy coursesfor adults.The Foundation was established

in 1995, by a small group of businesspeople, including managers fromNestlé Morocco, to improve theconditions of people living in ruralcommunities. It did this initially bycreating employment opportunitiesthrough micro-credit loans, a schemewhich proved to be very successful,particularly among womenentrepreneurs who used the fundingto establish cottage industries.To further this work, in 1997

the Foundation decided to tacklelow education levels in rural Morocco,particularly amongst women,by creating an independent structureunder the name Zakoura EducationFoundation.

The Education Foundation’sprogrammes have a particular focuson encouraging the tuition of girls whoare not automatically included in thepublic schooling system. They offerpre-school education for children from4 to 6 years old, non-formal educationfor children from 8 to 16 years old,professional training for girls over16 and literacy programmes foradults. In addition, the Foundation’sschools teach basic health andhygiene principles.This combination of primary

education and vocational skillsdevelopment is helping womenand girls grow in confidence and todevelop within the community, givingthem new opportunities to realisetheir potential and generate income.Through various studies, women haveexpressed the benefits they havederived from these programmes.These include: valuing themselvesand their role within the family; havinga better understanding of their rights;enjoying enhanced autonomy in theirdaily tasks (especially with respect toshopping); supporting their children’sschooling; and completing paperwork.To date, 80000 adults have

completed the Foundation’s adultliteracy programme (99% of whomare women), and 20000 children

(mainly girls) have gained a primaryeducation through one of its 370schools. We were one of the firstsponsors of the Zakoura EducationFoundation and continue tosupport its work by financing ninenon-formal schools in Morocco.

Nestlé Healthy KidsGlobal ProgrammeThe Nestlé Healthy Kids GlobalProgramme has been designedto address today’s complex healthchallenges, such as poor nutritionand obesity, by teaching school-agechildren the value of nutrition andphysical activity. Each programmehas been developed in collaborationwith national health and educationauthorities, and child nutritionexperts, to address the specificneeds of children in target areas.The programme builds on

Nestlé’s existing base of more than30 education programmes, whichcurrently reach more than 10 millionchildren each year, and will extendto all countries where we haveoperations by the end of 2011.The programme is open to

all children, but is particularlyimportant for girls, many of whomwill go on to share the benefits withtheir own children in the future.

Our CSV concept means weevaluate all our business decisionsin terms of the value they createfor people and society, as wellas for our business and shareholders.We have invested in many projectsthat are helping to bring newopportunities to women, especiallyin poorer regions.We believe that this will not only

empower women to improve theirown living conditions, but will alsostimulate economic growth in manyof the areas that need it most.

We have given more than 6000 women inBrazil the opportunity to work as independent“Até Voce” sales representatives inimpoverished areas of cities such asSão Paolo and Rio de Janeiro.


MillenniumDevelopmentGoals 4 and 5

Reduce childmortality/Improvematernalhealth

11 Nestlé projects

9 countries

4 continents

For more information visit www.community.nestle.com/mdg4 andwww.community.nestle.com/mdg5

According to UN figures, every minutea woman dies of complications relatedto pregnancy and childbirth. Almostall of these deaths are in developingcountries. In the same countries, thefigures show that a child is 13 timesmore likely to die before its fifth birthdaythan a child born in an industrialisedcountry. Most of these deaths wouldbe entirely preventable if people hadaccess to better sanitation, primaryhealthcare and basic infrastructure suchas water, sanitation, and nutritious food.Through our commitment to bring

value to society and shareholdersequally, we are engaged in variousprojects that are helping improve basicinfrastructure, education and healthcareavailable to those in many disadvantagedregions. However, as we arefundamentally a Nutrition, Health andWellness Company, our work has themost impact on tackling malnutrition.For example, in 2008:

• We invested CHF 1.98 billion inresearch to find science-basedsolutions to nutrition needs.

• Products worth more thanCHF 13.6 billion were reviewedfor taste preference and nutritionalvalue under our 60/40+ strategy.

• More than 65% of all our productssold met or exceeded the NestléNutritional Foundation profile,a system we have developedto evaluate our products againstpublic health recommendationsand consumer science.

• We made 44 billion servings ofiron, 94 billion servings of iodine,29 billion servings of vitamin A,and 13 billion servings of zincavailable to consumers globally.

In addition, as it is recognised thatmalnutrition is best tackled through

the provision of nutritious food, ratherthan supplementary injections or pills,we are working together with localhealth authorities to help addressissues such as identified, pre-existingdeficiencies, by fortifying productsregularly consumed by targetconsumer groups in specific regions.We are bringing safe, nutritious

and affordable food and beverageproducts to increasing numbers ofconsumers across the developingworld and support a wide variety ofprojects focused on giving people inthese areas, especially women andchildren, a better understanding ofhow to stay healthy.Below you will find some examples

of our fortified products in thedeveloping world. More can be foundat www.community.nestle.com.

Iron-fortified cerealsOur all-family cereals are “nutrientdense” foods and make a significantcontribution to the intake of essentialnutrients such as vitamins, mineralsand fibre.Our infant cereals are available

in more than 70 countries andare particularly popular indeveloping countries.To give our consumers the most

nutritious products, we have optimised


We work together with local healthauthorities to help address issues suchas identified, pre-existing deficiencies,by fortifying products regularly consumedby target consumer groups in specific

regions. Our all-family cereals are“nutrient dense” foods and make asignificant contribution to the intakeof essential nutrients such as vitamins,minerals and fibre.


the type of iron our cereals containand the ratio of vitamin C to iron usedin our recipes to enhance highbioavailability, making it possiblefor the body to readily absorb anduse this essential nutrient.In many developing countries,

such cereals may be the only fortifiedfood given to an infant at a timewhen the intake of micronutrientscoming from breast milk decreases,especially if the mother’s dietis deficient.In addition, as red meat in the diet

is limited (or absent) in these countries,infant cereals offer a safe andconvenient way for mothers to ensuretheir children receive the iron theyneed to support physical growth andcognitive development.To ensure this important food

product is readily accessible in low-income regions, infant cereals aresold in single-serve sachets in marketssuch as India and Pakistan and aretypically sold through traditionalchannels, such as small local stores.Nestlé has sponsored a number

of studies of infant cereals indeveloping countries, showing theirbenefits to child growth. We havealso published information on ironbioavailability that is now cited bymany researchers and is used by theWorld Health Organization (WHO)in their guidelines for the fortificationof infant cereals.The development of our products

is largely driven by our Creating Shared

Value concept. As this is afundamental part of our businessstrategy, we will continue to investin enhancing their quality andnutritional value. In developingcountries, this investment helps toimprove the health and wellbeing ofsome of the world’s poorest people bysupplying products tailored towardsthe nutritional needs of specificpopulations. As a result we are helpingto tackle malnutrition in these deprivedareas and assisting millions of peoplein improving the quality and durationof their lives.

Fortified milkMilk is a key nutritional product,particularly in developing countrieswhere diets are often lacking innutritive value. To help preventmicronutrient malnutrition aroundthe world, we have fortified manyof our milk products with iron, zinc,vitamin A and other micronutrientsaccording to the deficiencies mostprevalent in each target population.In Mexico, for example, where

many children suffer from a lack of ironand zinc, we estimate that more than700000 consumers have boughtNido Rindes Diario brand milk,fortified with iron, zinc and vitamin A.Similarly, more than 2 millionconsumers in Brazil and Indonesia havebeen reached by iron-enriched Idealmilk since 2005, helping reduce theprevalence of iron-deficiency anaemiain both countries.By the end of 2009, 17.2 billion

servings of fortified milk products –readily available in affordable formatsto local populations – were madeavailable to around 11 million peopleacross 60 countries, includingMorocco, Algeria, Tunisia andMauritania, where iron, vitamin Aand iodine deficiencies all occurin varying degrees.

In Mexico, where many children sufferfrom iron and zinc deficiencies, more than700000 consumers have bought our NidoRindes Diario brand milk, fortified withiron, zinc and vitamin A.



Ensureenvironmentalsustainability

52 Nestlé projects

31 countries

4 continents


Since Nestlé’s operations beganmore than 140 years ago, we haveadopted the highest environmentalstandards in all that we do, and in allour global locations.Our Corporate Business principles

state that: “We will not sacrifice long-term development for short-term gain.”This view guides all of our decisionmaking to ensure that we alwaysoperate in the most responsible wayand that we continue to enjoy successlong into the future.Our Creating Shared Value concept,

where we look to create economic andsocial value simultaneously, can onlysucceed if we are also environmentallysustainable. Our goal is always to meetthe current needs of our business,shareholders and stakeholders, withoutcompromising the ability of futuregenerations to meet theirs.In today’s consumer society this

is no small challenge. A combinationof population growth and increasingaffluence is leading to consumptionpatterns that exceed the planet’s abilityto replenish its resources.

All our raw materials come fromnature, so the state of the environmentis a top priority for our business.Our future is inextricably linkedto the future of the planet.We have successfully grown

our business in recent years, whilstsimultaneously reducing our impacton the environment. We continueto do this by investing in innovationand research, and working closelywith farmers, governments andrelevant organisations around theworld to identify and share bestenvironmental practice.

We also invest in raising awarenessof some of the most profound andthreatening global issues, such as waterscarcity, to encourage and supportother individuals and organisationsin improving their own activities andto accelerate environmental learning.To monitor and report on all aspects

of our performance, we have acomprehensive range of key indicatorsin place. More than twenty of thesemeasures are focused on ourenvironmental performance andcover aspects such as materials usageor reduction, energy consumption,greenhouse gas emissions andreductions, packaging reduction,governance and compliance, andwater withdrawn, saved or returnedto the environment. These measuresunderline the importance we placeon reducing our environmentalfootprint, and demonstrate ourongoing commitment to improvingthe sustainability of our operations.Below are just a few examples

of the ways we strive to improveour environmental performance.You can find more at www.community.nestle.com.

Drip Irrigation Project, NicaraguaThe largest consumer of water isagriculture, which uses two-thirds of

Elba María Castillo Moreno, an agriculturalengineer at the Universidad Católica delTrópico Seco tests drip irrigation systemsin Nicaragua, as part of a study designed tomake them as affordable as possible forsmall-scale coffee farmers.


A worker inspects the tubes of a dripirrigation system at Finca Las Flores inEstelí, Nicaragua, installed as part of oursuccessful 2006 pilot programme toaccelerate plant growth and achieve betterquality coffee crops.


the world’s supply – ofteninefficiently. This is why our trainingprogrammes for farmers includeeffective water management.In Nicaragua, we have taken this

a step further and are actively workingto develop a low-cost drip irrigationsystem to be used in plantationswhere we source coffee as part of apublic-private partnership betweenNestlé, ECOM, and two US-basedNGOs, Rainforest Alliance andInternational DevelopmentEnterprises IDE, covering 1500 coffeeproducers.Through the sustainable use and

control of water, we can accelerateplant growth and achieve betterquality crops, even during water-stress periods. In 2006, a pilotprogramme with low cost and lowpressure systems was introducedin 11 plantations in Nicaragua.The field results that same yearshowed an increase in productionof 40 to 60%, as well as rapid growthin young plants. New plants that wereirrigated produced yield in two years,in comparison to three years forthose plants that were not. The sameresults were confirmed in 2007and 2008.In practice, coffee plants are

generally not irrigated. Recentexperience shows that whensupplementary irrigation is usedduring water-stress periodswhere soil humidity is low (especiallyduring flowering periods), an increase

in productivity, plant growth andquality is achieved.The purpose of this project is

to introduce, implement and monitorlow-cost drip irrigation systemsand integrate these as a part ofa sustainable, economic, social,and environmentally-certified coffeevalue chain.This initiative will aid producers

in ten coffee zones in Nicaragua,as well as those in Honduras,El Salvador, and Guatemala.

Shuangcheng milk district, ChinaNestlé’s milk operations inShuangcheng (discussed underMDG 1) have provided new income-earning opportunities for local milkfarmers and have identifiedenvironmental problems to address.With the increasing number of cowsin Shuangcheng, adequate manurestorage became important to avoidcontamination of ground watersupplies. Because most manurestorage systems require sizeableinvestments with no immediatefinancial returns, local farmershad little incentive to improve theirmanagement of animal waste.Nestlé took action by financing thedistribution of biogas digesters to helpfarmers store their manure in secure,covered containers and collect themanure’s methane gas as energy forhome cooking, lighting, and heating.The simple technology helps

farmers reduce their wood andcharcoal consumption, saving ruralfamilies money whilst reducinghousehold carbon emissions thatcontribute to air pollution and globalwarming. More importantly, biogasproduction provides farmers withan economic incentive to managetheir manure supplies moreeffectively, and reduce watercontamination in the process.

An agronomist at our demonstration farmin Shuangcheng, north-east Chinaexplains to local farmers the advantagesof using biogas domestically to providecheap and clean energy for cooking.

Farmhands in Caquetá, Colombia, wherewe are working with the dairy communityto increase milk production, reduce theamount of land use and introduceenvironmentally sustainable practicesto lower the impact of dairy farming.


Nestlé initiated the biogas projectin 2003 with the installation of 400biogas pits across the Shuangchengmilk district. Since then educationand outreach programmes supportedby the company at 74 localdemonstration farms have stimulatedincreased farmer demand forthe technology.

Improving biodiversityin ColombiaNestlé has had a long-standingrelationship with the dairy communityin Caquetá, Columbia for 35 years.With the aim of increasing fresh milkproduction volume, reducing theamount of land use and introducingenvironmentally sustainable practices,we are working with 13 pilot Caquetácattle farms to gradually introducea new system called “Silvopasture”.This system protects the soil and theenvironment by combining pastureland with trees and shrubs, resultingin increased profits for the farmer andimproved milk quality and quantity(litres/hectare). In addition this projecthas lowered the environmental impactof dairy farming through enhancedbiodiversity, reduction of soil erosionand expansion of the pre-Amazonaslivestock borders.

Water and sanitation in AfricaOne of the major challenges ofMDG 7 is the provision of safedrinking water and basic sanitation,particularly in rural communities.To help address this issue, we haveinvested in several water sanitationprogrammes, mainly in Africa,in partnership with internationaland local organisations, to providecommunities with basic cleanwater infrastructure.With the support of the

International Federation of RedCross and Red Crescent (IFRC)

Societies, we have invested in theimplementation of a water, sanitation,hygiene education and wastemanagement project in 25 schoolsin the cocoa belt of the Gagnoaregion, Côte d’Ivoire, to increaseaccess to clean water and hygieneknowledge among the population.Over the past three years, five deepbore water pumps have beeninstalled, 25 school latrinesrehabilitated and training has beenprovided to Ivorian Red Crossbranches in hygiene education.We forged another collaborative

partnership with the IFRC inMozambique by donating funds forthe drilling of deep wells and theinstallation of 22 community watersupplies to provide clean and safewater for some 40000 people.The funds were also used to traincommunities in pump maintenanceand to improve overall hygienepractices. With additional supportfrom the British Red Cross and theNorwegian Red Cross, theInternational Federation of Red Crossaims to install a total of 39 similarwater facilities in the province ofNampula. The success of the waterfacilities initially installed with oursupport has also inspired theEuropean Union to join forces and

expand the programme to otherprovinces in Northern Mozambique.In 2008, we partnered with the

Lutheran World Federation (LWF)and Inter-Faith Action for Peace inAfrica (IFAPA) to provide financialand technical support to supply cleanwater to rural communities in Kirehe,eastern Rwanda. This project haspositively impacted an estimated22000 people in the area throughimproved health, hygiene andeconomic output.

Nestlé WatersOur bottled waters business isa good example of how we arebuilding environmental stewardshipinto every stage of ourmanufacturing processes.Nestlé Waters North America

(NWNA) has made great stridesin reducing the impact of itsoperations on the environment whilststill delivering a high-quality productto consumers. By examining itsentire supply chain, it has createdmore sustainable factories,continually improved water efficiencyand reduced packaging.NWNA has also successfully

reduced the amount of additionalwater used, i.e. all the waterrequired that does not go into thebottles, by 30% over four years.This is the result of multipleinitiatives and the sharing of bestpractices among our hundredsof factories worldwide.In 2009, Nestlé factories needed

0.68 l of additional water for everylitre they bottled, though some haveachieved an even lower water useratio. Packaging is essential for foodsafety and freshness, and enablesus to give consumers importantnutritional information. However,to reduce our environmental footprintwe are making considerable

Shoppers buy our new Re-source brandedwater in the USA, where we are workingwith partner organisation, GreenOps,to motivate consumers to recycle moreof their waste by using recycling stationsand a system of rewards.


investments in limiting the impactof packaging, led by our ProductTechnology Centre in Vittel, which hasa dedicated laboratory conductingpackaging research and tests.As a result of our continuous

efforts, over the last four years, NestléWaters has made some importantimprovements worldwide. We havereduced the quantity of PET resinneeded to manufacture our bottles bymore than 20% and have developednew bottle shapes. These save morethan 89 million kilogrammes of resinand help to avoid more than 356billion tonnes of CO2eq emissionsover two years.An example of how NWNA

is innovating across the supply chaincan be seen in the recent launchof the new Re-source brand of bottledwater in America. This has beenintroduced to stimulate consumersinto thinking differently about theway they use products, directlyengaging them in the importance ofrecycling and promoting the idea thata small change can make a bigdifference. To reinforce this idea eachRe-source bottle is made from 25%recycled plastic.NWNA aims to increase recycling

rates for PET bottles in the US from25% to 60% by 2018. To do this it isworking with partner organisation,GreenOps, to re-educate consumers tosee plastic as a valuable resource andmotivate them to recycle more of theirwaste by using recycling stations anda system of rewards. The innovativeRe-source bottle and campaignsurrounding the product have earnedit silver Cradle-to-Cradle certification.Our Creating Shared Value concept

is about ensuring that we continueto run a profitable and responsiblebusiness in the long-term. Therefore,the protection of the environmentis of prime importance to us. We have

more than 20 specific measuresin place to ensure we continuallyimprove our environmentalperformance and investCHF 100 million annually towards thisaim. This is spent predominantly oncontinuous research and innovationprogrammes focused on reducingour environmental impact.We support the individuals and

organisations that make up our valuechain to improve the sustainabilityof their activities. This is particularlyimportant in the developing worldwhere traditional tools and techniques

can have an adverse affect on theplanet’s natural resources.We also go beyond our own

organisation and value chain, usingour position as one of the world’slargest and most respected nutritioncompanies to raise awareness of keyissues such as water scarcity amongstkey industry and governmentalgroups, to actively use our knowledgeand experience to help furtherglobal learning, and to educateend-consumers in the importanceof practices such as recycling andwater conservation.

One of the community wells in Kirehe,eastern Rwanda provided by our 2008partnership with the Lutheran WorldFederation and Inter-Faith Action forPeace in Africa, to supply clean waterto rural communities.



Develop a globalpartnershipfor development

128 Nestlé projects

56 countries

5 continents


Nestlé has more than 125 partnershipswith local and national governments,UN agencies, academia, NGOs, andhealthcare professionals. Throughthese relationships, we support arange of programmes and initiativesaimed at bringing us closer tothe achievement of the MDGs –particularly in terms of enhancingeconomic opportunities, accessto basic necessities such as foodand water, and provision oftechnical expertise.One of our key collaborators is the

International Federation of Red Crossand Red Crescent (IFRC) Societies,as well the country offices of the RedCross, through whom we provide ruralcommunities with access to cleanwater infrastructure.

Nestlé Prize in CreatingShared ValueWe believe that developing countriesface under-investment in key socialsectors, and that rewarding trulysignificant and innovative efforts tomeet global challenges in the areas of

Sour Say, one of IDE Cambodia's FarmBusiness Advisors, sells seeds to his client,rural farmer Mao Khon. In addition toproviding high-quality agricultural

products, including irrigation equipment,fertiliser, and plastic mulch, Sour Say alsooffers advice to help Mao Khon improvehis farming techniques.

water, nutrition and rural developmentcreates shared value for all.With this in mind, the Nestlé Prize

in Creating Shared Value was launchedin 2009. This is awarded every otheryear to an individual, non-governmentalorganisation or business foroutstanding innovation in improvingaccess to and management of water,improving the lives of farmers and ruralcommunities, or delivering highnutritional value to populationssuffering from nutritional deficits.The Prize Laureate is determined by theNestlé Creating Shared Value Advisory

Board, an independent global bodycomprised of internationally recognisedexperts in corporate strategy, nutrition,water and rural development.The first Nestlé Prize in Creating

Shared Value of CHF 500000 wasawarded in May 2010 to InternationalDevelopment Enterprises (IDE)Cambodia for a project entitled“Farm Business Advisors: Scaling upprivate-sector delivery of agriculturalsupport services in Cambodia”. Startedin 2005, this non-profit organisationhas developed a micro-franchise modelto deliver high-quality agricultural


The Creating Shared Value prize ofCHF 500000, committed by Nestléto IDE Cambodia, will enable theorganisation to train at least 36 additional

FBAs like Sour Say, who will helpCambodian farmers to improve theirstandard of living by growing andselling vegetables.


Yan Reach, a rural farmer, sells her produceat the Svay Rieng market. Our CSV prizecommitment to IDE Cambodia will directlyimpact 20000 people like Yan, in morethan 4000 rural households.

Puth Saroeun (left), a Farm BusinessAdvisor, discusses farming techniqueswith her client, Yan Reach.

products (such as irrigation equipment,good quality seeds, fertiliser, andplastic fencing), services (collectionand marketing) and technical advice topoor farmers through independentmicro-entrepreneurs or Farm BusinessAdvisors (FBAs); turning agriculturalextension into a profitable business.Eighty-five percent of Cambodia’s

14 million people and ninety percentof its poor live in rural areas anddepend primarily on agriculture fortheir livelihood. Cambodian farmerscan improve their standard of livingby growing and selling vegetables.However, many cannot exploit thisopportunity because they lack thetechnical know-how, quality rawmaterials, farming equipment, credit,or market information.By offering high-quality products

and services through FBAs, the market-based approach promoted by IDECambodia responds to thesechallenges and creates shared value forboth small farm households and FBAs.In addition to increasing their cashincome, the project enables smallfarmers and their families to not onlyimprove their management of water byusing drip irrigation, but also their

nutrition with more diverse food. FBAsthen earn an additional income fromselling their products and services.The CSV Prize of CHF 500000,

committed by Nestlé to IDE Cambodia,will enable the organisation to bringthis innovative approach to scale bytraining at least 36 additional FBAs andwill have a direct and tangible impacton the lives of 20000 people in morethan 4000 rural households. The nextstep for IDE will be to develop thefranchise operations into a privatesocial enterprise to create a self-sustaining entity that will continue toserve small farmers without relying oncontinued donor support.What makes the Nestlé prize

unique is this financial commitmentover a three-year period to ensurelong-term success and self-sufficiency.In addition, the winner will havethe opportunity to share ideas andrecommendations with, as well asreceive feedback from, world-leadingexperts in the area of ruraldevelopment who are part of the NestléCreating Shared Value Advisory Board.For more information about the

Nestlé Prize in Creating Shared Value,visit www.nestle.com/CSV/CSVPrize.

1 Foreword

4 Summary



18 Millennium DevelopmentGoals 4 and 5



Nestlé and the United NationsMillennium Development Goals

Creating Shared Value

Eradicate extreme povertyand hunger

Promote gender equality andempower women

Reduce child mortality /Improve maternal health

Ensure environmentalsustainability

Develop a global partnershipfor development

Cover: Yan Reach is one of thousandsof rural farmers to be supported byInternational Development Enterprises(IDE) Cambodia’s micro-franchiseproject. Winner of the first Nestlé Prize

in Creating Shared Value, the IDE projectenables farmers like Yan to buy seedsand get technical advice on best practicefrom independent Farm Business Advisors(see pages 28–31).

© June 2010, Nestlé S.A., Public Affairs

Nestlé S.A.Avenue Nestlé 551800 VeveySwitzerlandwww.community.nestle.com

Concept and writingNestlé S.A., Public Affairs,with Melitta Campbell

Visual concept and designNestec Ltd., Corporate Identity & Design,with Esterson Associates

PhotographyMarkus Bühler-Rasom,Sam Faulkner/NB Pictures,Charlie Gray,Harmen Hoogland/Nestec,George Osodi/Panos Pictures,Fernanda Preto,Sergio Santorio,Holly Wilmeth

IllustrationSimon Pemberton/Heart

ProductionAltavia Swiss

PaperThis report is printed on Arctic Volume,a paper produced from well-managedforests and other controlled sources certifiedby the Forest Stewardship Council (FSC).

By supporting small rural farmers,Farm Business Advisors earn anadditional income from selling theirproducts and services.

Nestlé and theUnited NationsMillenniumDevelopmentGoals 2010

nestlé millennium development goals 2010 · theeight millennium development goals(mdgs) provide...

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