28/02/20 Nestlé

CIRCULAR ECONOMY AND RESOURCE EFFICIENCY @ NESTLÉ

Angela Teml

Head of Corporate Communications

Nestlé Österreich

March 2019

Creating Shared Value: Our Definition

“For a company to be successful over the long term and create value

for shareholders, it must create value for society.

Creating Shared Value is built up on a set of principles and values…

based on respect.”

Paul Bulcke

Chairman

Our ambitions

For individuals

and families

Help 50 million children

to lead healthier lives

For communities

Help to improve

30 million livelihoods in

communities directly

connected to our

business activities

For the planet

Strive for zero

environmental impact

in our operations

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None of our packaging, including

plastics, ends up in landfill or as litter.

100% of our packaging is recyclable

or reusable by 2025.

Our public announcedambition and commitment

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From long-term commitments to leadership in action

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Three interconnected actions

Material & Design InfrastructureConsumer Beliefs &

Behaviour

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Materials solutions

Material & Design

Eliminating hard to recycle plastics

Using more recycled content in packaging

Developing plant-based ‘bio’ plastics

Simplifying materials used in packaging

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100% recycled plastic

(Nestlé USA)

Simplification of the plastic

material, easier to recycle

(Nestlé India)

Alternative packaging

(Nestlé Hungary)

Material & Design

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Packaging Design

Material & Design

PVC - Polyvinyl Chloride

PS - Polystyrene

ePS - Expanded PS

Eliminating of some

materials and their

replacement by others

Enhancing research capabilities

to develop sustainable

packaging solutions

Nestlé Institute of

Packaging Sciences

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Setting up the infrastructure

Legislation on End of Life

Advocacy Work

Professionalize collection

Brazil

Large scale recycling solutions

Extended Producer Responsibilities

Schemes

Developed Markets Developing Markets

Community projects

Philippines

Infrastructure

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Waste management - Leakage

• Zero leakage of plastics into the ocean

• Increasing plastics recycling rates

• Social benefits – health, job creation

Infrastructure

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Encourage recycling behaviourOn-pack messaging

Incentive schemes (e.g. deposit / return)

Premium & environmental credentialsPerception of alternatives to plastic (e.g. paper)

Pack functionality, visuals & brandingAcceptance of alternative packaging

Brands need to create

solutions which connect

with consumers

Consumer beliefs &Behaviour

Consumers belief

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Claims, labelling & consumer education

Recyclable Consumer BehaviourRecycled Content

65%

Sorting Guidance

PET PP/PE Compostable

Simplified vision

Consumers belief

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Summary: our roadmap in action

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Material & Design

The way forward: It’s about a cup of coffee

NextGen Cup Challenge

CIRCULAR ECONOMY AND RESOURCE EFFICIENCY @ NESTLÉ

Angela Teml

Head of Corporate Communications

Nestlé Österreich

March 2019