nestlé hellas - nestlé global · gri index _____70 11. evaluation form ... tainability reporting...

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On page 79 you will findthe Evaluation Formfor our Report.We are looking forward to your feedback!

Nestlé Hellas Sustainability and CreatingShared Value Report 2011

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Nestlé Hellas Sustainability and Creating Shared Value Report 2011

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Contents

1. A message from the CEO _________________________________________5

2. The structure of the Report ________________________________________6 2.1 About our Sustainability and Creating Shared Value Report _________6 2.2 The content of the Report _____________________________________6 2.3 The methodology of the Report _________________________________7 2.4 A few words on the structure of the Report _______________________7 2.5 Scope of the Report __________________________________________7

3. Nestlé in Greece and the world ____________________________________8 3.1 The history of Nestlé in Greece ________________________________10 3.2 The structure of Nestlé in Greece ______________________________11 3.3 Nestlé Hellas: 2011 strategy and financial performance ___________12 3.4 The Nestlé facilities in Greece _________________________________12 3.5 Nestlé products in Greece ____________________________________14 3.6 Nestlé Corporate Business Principles __________________________16 3.7 Our mission and values ______________________________________18 3.8 Corporate Governance _______________________________________18 3.9 Renumeration of managers ___________________________________18 3.10 Determination of qualifications and expertise for senior management andsenior staff __________________________________19 3.11 Nestlé Code of Business Conduct _____________________________19 3.12 Compliance Committee ______________________________________20 3.13 Issue Round Table __________________________________________20 3.14 Security Committee__________________________________________20 3.15 Safety Committee ___________________________________________20 3.16 Awards received in 2011 _____________________________________21 3.17 Nestlé participation in organizations and business associations ____21

4. Creating Shared Value at Nestlé 4.1 The way we work ____________________________________________22 4.2 The three pillars of Creating Shared Value _______________________23 4.3 Nestlé Creating Shared Value in Greece ________________________24 4.4 Wellness Taskforce __________________________________________24 4.5 Mapping of stakeholders _____________________________________24

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Contents5. Nestlé in the Greek market: Delighting consumers _________________28 5.1 The Nestlé Quality Assurance and Product Safety Policy __________30 5.2 Nestlé Quality Management System ____________________________30 5.3 Consumer Services __________________________________________31 5.4 Consumer communication with our Company in 2011 _____________31 5.5 Communication starts from the product label ____________________32 5.6 We develop food and beverage products for health and pleasure ___33 5.7 Nestlé Consumer Research Studies ____________________________35 5.8 Responsible Communication _________________________________35 5.9 Supplier and customer relations: We develop responsible partners__36 5.10 The Nestlé sales network _____________________________________37 5.11 Our suppliers _______________________________________________38 5.12 Fair competition ____________________________________________39

6. Human Resources _______________________________________________40 6.1 We care for our people _______________________________________40 6.2 Our people in 2011 __________________________________________41 6.3 Recruitment process _________________________________________42 6.4 Employee turnover __________________________________________43 6.5 Employee progress and development __________________________44 6.6 Employee training ___________________________________________44 6.7 Employee Health and Safety __________________________________48 6.8 Nestlé Employee Council _____________________________________497. Environment ____________________________________________________50 7.1 The Nestlé Environmental Management System __________________52 7.2 Our performance in 2011 _____________________________________53 7.3 Management of Greenhouse Gas Emissions ____________________54 7.4 Water management _________________________________________55 7.5 Waste management _________________________________________56 7.6 Use of materials ____________________________________________57 7.7 Company fleet ______________________________________________57

8. Commitment to society __________________________________________58 8.1 Healthy Kids Global Programme _______________________________58 8.2 Healthy Kids in Greece _______________________________________59 8.3 Healthy Kids: Goals for 2012 __________________________________63 8.4 2nd Water Care Festival at the Korpi factory _____________________64 8.5 Product donations ___________________________________________66 8.6 Support of NGOs focusing on children _________________________66 8.7 Employee volunteerism ______________________________________66

9. Corporate Responsibility Report Quality Assurance ________________68 9.1 Introduction ________________________________________________69 9.2 Assurance Statement ________________________________________69 9.3 Communication with Nestlé ___________________________________69

10. GRI Index _______________________________________________________70

11. Evaluation form _________________________________________________79

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Nestlé Hellas Sustainability and CSV Report 2011 Chapter 1 / A message from the CEO

A message from the CEONestlé has been present in Greece through its products for more than a century. More-over, we are committed to growth by developing products that respond to the needs and desires of Greek consumers, and by supporting the Greek family in every way.

Our presence in Greece has been long and substantial. We set up in 1899, by import-ing Farine Lactée, (Γαλακτούχον Άλευρον Νεστλέ), the first Nestlé product worldwide. At present, we are active in 10 product categories, we operate 4 factories in Greece and we have more than 1000 permanent employees.

In the following pages we have collected data that portray who we are: a Company which operates in full compliance with external and internal regulations, makes long-term plans, and Creates Shared Value both for the Company and for society it oper-ates. Thus, all of us at Nestlé deliver on our corporate proposition “Good Food, Good Life”.

The Sustainability and Creating Shared Value Report you are holding is not the first for Nestlé in Greece. It is however the first time we develop it by following the GRI (Global Reporting Initiative) guidelines. That is why we place great emphasis on our numerous policies, strategies, goals and their implementation across all sectors on a local level: from human resources and the environment to corporate governance and society. We have been greatly rewarded through the strenuous process of collecting all this infor-mation: we became wiser! The journey of collecting cross functional data has begun and we are truly impressed and proud of all our achievements, as well as perfectly transparent and aware of the new goals we are setting for our ongoing progress.

Enjoy your reading,Laurent DereuxCEO of Nestlé Hellas

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2.1. About our Sustainability and Creating Shared Value Report

The report you are holding is the first Nestlé Hellas Sus-tainability and Creating Shared Value Report developed according to the G3 guidelines of the GRI (Global Re-porting Initiative). This report and the data contained pertain to calendar year 2011. We aim to develop and publish Sustainability and Creating Shared Value reports every two years.

2.2. The content of the Report

The collection of data included in our report is based on

the GRI (Global Reporting Initiative) G3 guidelines, the most prevalent and recognized reporting system for Sus-tainability Reporting and Corporate Social Responsibility. In the process of defining the content of our first Social Responsibility Report, we placed great emphasis on the priorities of our own organization and of the Company as well as on the achievements considered important and representative of the range and performance of Nestlé in Greece. The data included in the report were collected through numerous meetings and interviews with repre-sentatives of the Company’s various departments and operations. The structure and wording were formulated with the help of the Centre for Sustainability and Excel-lence (CSE).

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 2 / The structure of the Report

2. The structure

of the ReportThe Nestlé Hellas Sustainability and Creating Shared Value Report is our first effort to record all Company policies and actions within the framework of Corporate Responsibility.

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Chapter 5 describes issues related to our consumers, our Nutrition, Health and Wellness product development policy, quality assurance and product safety and the procedures related to our Supply Chain.

Chapter 6 refers to our people, the Nestlé Hellas policy on human resources management, development and train-ing, health and safety, communication and satisfaction.

Chapter 7 is dedicated to our environmental actions: the Company policy, our goals and their implementa-tion and our commitment towards water, a key Creating Shared Value pillar.

Chapter 8 presents our social responsibility initiatives, with an emphasis placed on nutrition and local commu-nities, as well as volunteer activities of our employees in this direction.

In Chapter 9 you will find the Quality Assurance of the Report.

Chapter 10 includes the GRI Table, the indicators covered in this report as well as their location in the document that corresponds to the relevant information.

In Chapter 11 you will find the evaluation form you can use in order to evaluate our report.

2.5. Scope of the Report

The business units and factories included in the report be-long to Nestlé Hellas SA, with the exception of CPW Hel-las SA, which is part of the global joint venture between Nestlé SA and General Mills Services (UK) Ltd.

The report also includes the performance and business activities of Nestlé Hellas Ice Cream SA, which was merged with Nestlé Hellas by acquisition on 2.5.2011. Also included is the Company MAKAN SA, which was merged with Nestlé Hellas by acquisition on 1.6.2011.

Regarding the activities covered in the report, emphasis was placed on the headquarters and the 4 factories that the Company operates in Greece.

In case of doubt or differing interpretation of the Greek and the English version of this report, the Greek version shall prevail.

2.3. The methodology of the Report

This Nestlé Hellas Sustainability and Creating Shared Value Report is our first effort to record all Company policies and actions within the framework of Corporate Responsibility. The development of a Sustainability and Creating Shared Value Report is integrated into the Company’s Corporate Strategy aiming to provide infor-mation to our stakeholders regarding our actions and our ongoing improvement in the Corporate Responsi-bility sector.

Before the compilation and publication of this Report we conducted an evaluation of the organization with respect to the strategies, internal practices and selection and im-plementation methodologies for Corporate Responsibil-ity initiatives and programmes. The organization’s evalu-ation was based on the G3 guidelines of the GRI (Global Reporting Initiative) and the goal was to study in depth the existing policies, strategies, procedures and opera-tions applied in the six main areas related to Corporate Responsibility: financial performance, environmental performance, labour practices, human rights, social re-sponsibility performance and product responsibility.

This evaluation was of key importance for both Nestlé Hellas corporate responsibility strategy, as well as for the preparation of this Sustainability and Creating Shared Value Report. Its purpose is to highlight the main issues of the organization and the main risks and opportuni-ties related to the strategic priorities set by Nestlé for the Greek market.

2.4. A few words on the structure of the Report

Chapter 3 includes a short reference to Nestlé SA and a more comprehensive description of Nestlé Hellas SA, its main operations and units as well as the markets and sectors it is engaged in. In this chapter you will find our Company’s mission and principles, our organizational structure/corporate governance as well as the distinctions and awards we received in 2011.

Chapter 4 describes the way we approach corporate re-sponsibility, the way we apply the Creating Shared Value model, as well as the mapping of our stakeholders, com-munication and commitments towards them.

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Nestlé is the world’s leading Nutrition, Health and Well-ness Company. Our mission is to provide “Good Food, Good Life” by offering to consumers the tastier, most nutritious choices in a wide range of food and bever-age categories and eating occasions, from morning to night.

We believe that leadership is about behaviour, and we recognize that trust is earned over a long period of time by consistently delivering on our promises. Nestlé be-lieves that it is only possible to create long-term sus-tainable value for our shareholders if our behaviour, strategies and operations also create value for the com-munities where we operate, for our business partners and of course, for our consumers. You can find more about Creating Shared Value, this important part of our strategy, in the following chapter.

Nestlé is structured and grows on the basis of timeless human values serving the fundamental principles of jus-

tice, integrity and respect to people, society and the en-vironment. This is reflected in the Nestlé Corporate Busi-ness Principles, which are at the core of our Company’s culture over the span of 140 years.

Nestlé can trace its origins back to 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Com-pany. One year later, Henri Nestlé, a trained pharmacist, launched one of the world’s first prepared infant cereals “Farine lactée” in Vevey, Switzerland. The two companies merged in 1905 to become the Nestlé you know today, with headquarters still based in the Swiss town of Vevey.

Today, Nestlé is a multinational Company with a unique identity. Nestlé always cares to adapt to local tastes, hab-its and the culture of each country. Our long-term com-mitment and investment in the countries where we do business are incorporated in the global business model of Nestlé.

3. Nestlé in Greece and

the worldNestlé is a multinational Company with a unique identity, always caring to adapt to local tastes, habits and the culture of each country.

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 3 / Nestlé in Greece and the world

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Nestlé S.A. 2011 (selection of data)

OVERALL

Number of employees 328,000

Number of factories 461

Number of countries where Nestlé products are sold 140

ENVIRONMENT

GHG (Greenhouse gas) emissions reduced since 2001 17%

Water withdrawals reduction rate per tonne of product since 2001 58%

Energy consumption reduction rate per tonne of product since 2001 42%

Renewable energy consumption reduction rate of total energy consumption 12%

Water discharges reduction rate per tonne of product since 2001 64%

EMPLOYEE DEVELOPMENT

Percentage of native executive staff in developing countries 53%

Leadership positions held by women 28%

Number of farmers trained through capacity-building programs 200,751

NUTRITION

Number of products renovated for nutrition and health considerations (reduction of sodium, fat and sugar levels)

5,066

Number of countries where affordable fortified milks are available 80

Number of countries where Nestlé Healthy Kids programmes are run in partnership with governmental, academia and non-governmental organizations

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Number of children reached by Nestlé Healthy Kids programmes 6,000,000

WATER

Water withdrawals reduction rate since 2001 28%

Number of people who had access to water and sanitation through the work of Nestlé with the International Federation of Red Cross and Red Crescent Societies since 2007

60,000+

RURAL DEVELOPMENT

Number of farmers reached by Nestlé rural development programmes 680,000

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1899 First Nestlé products imported from Switzerland

1914 Establishment of the first Nestlé office in Greece

1973 Creation of Nestlé Hellas SAIC is set up

1975Operation of the most advanced dairy factory in Europe at the time, in Platy, Imathia; the main product was Vlachas condensed milk

1979 Production of Maggi products (soups, cubes) in the Ready Foods factory

1982 Sopral SA is set up to market Nestlé products in Greece

1985 Acquisition of Carnation Hellas and import of products under the same brand.

1986 Production and packaging of Maggi products moves to the privately owned facility in Koropi, Attica

1987 Acquisition of Loumidis SA and of the coffee factory in Inofyta and chocolate factory in Peristeri

1993Acquisition of Korpi natural mineral water and consolidation of the companies Sopral, Ready Foods and Loumidis

1994 Cereal Partners Hellas is set up to import and market breakfast cereals

1995Nestlé Hellas headquarters move to a Company-owned building in Paradisos, Marousi, where it is located untill today

1996 Launching of the new Korpi natural mineral water bottling factory

1998 Nestlé Hellas SA is set up

2005 Final acquisition of Aqua Spring and the water factory in Dodoni, Ioannina

2006Sale of the dairy factory in Platy, Imathia and acquisition of Delta Ice Cream SA; the name changes to Nestlé Hellas Ice Cream SA

2008 Acquisition of MAKAN SA

2010 Nespresso Hellas is set up to import and market Nespresso products in Greece

2011 Consolidation of Nestlé Hellas Ice Cream and MAKAN in Nestlé Hellas

3.1. The history of Nestlé in Greece

The history of Nestlé in Greece begins with products imported directly from Switzerland in 1899. The first Nestlé office in Greece was set up in 1914 and Nestlé Hellas SA was founded in 1973. Since then, the Com-

pany has been growing and evolving by continuously adding new product categories, always based on the preferences and needs of Greek consumers. To-day, Nestlé Hellas has strong presence in 10 different product categories while operating 4 factories in Greece.


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3.2. The structure of Nestlé in Greece

The organizational structure of Nestlé in Greece includes the following companies: Nestlé Hellas SA, Nestlé Waters Direct Hellas SA, Nespresso Hellas SA and CPW Hellas SA, which is a joint venture of Nestlé Hellas and General Mills (UK) Ltd.

General Mills Services (UK) Ltd

CPW Hellas SA

Nestlé Hellas SA

Nespresso Hellas SA

Nestlé SA

Nestlé Waters Direct Hellas SA

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3.3. Nestlé Hellas: 2011 strategy and financial performance

Our goal in Nestlé is to Create Shared Value for the Company and society where we live and operate by developing nutritious, tasty products that respond to the needs of our consumers and the current trends for Nutrition, Health and Wellness. We operate and plan the future of our Company with a long-term vision and we do not sacrifice our long-term business success for short-term gain that would jeopardize the sustainability of our Company.

Regarding our 2011 financial performance, the extend-ed economic crisis in Greece prompted us to monitor closely the needs of our consumers and adapt our prod-ucts to their actual desires given the circumstances. Our goal is to invest in our main brands in the best possible way in order to achieve organic growth and sustainable profitability. At the same time we developed products of high nutritional value at particularly affordable prices (Popularly Positioned Products - PPP), we carried out a large multi-product promotional activity for the second

consecutive year, we expanded our sales network with additional staff in order to strengthen our points of sale and adapted our communication in order to come clos-er to Greek consumers.

The financial results of Nestlé Hellas recorded a small turnover increase in 2011, amounting to 426 million Eu-ros, compared to 420 million Euros in 2010. Similarly, earnings increased to 31 million Euros compared to 30 million Euros in 2010. This sustainable outcome is the result of hard work and corporate planning towards healthy growth even under the current conditions and despite the price increase of raw materials recorded during the year. We invest in our brands, our people and our innovations in order to continue developing prod-ucts that respond to the needs of Greek consumers.

3.4. The Nestlé facilities in Greece

Headquarters

The administrative operations of Nestlé in Greece are housed in the Company-owned building in Paradisos,


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Marousi since 1995. The 7-storey building has been ar-ranged to accommodate the 400 employees in the best possible manner. At our headquarters we always uphold recycling procedures and we ensure and consciously participate in the effort for the least possible consump-tion of energy sources.

Factories/ Production units

Currently, Nestlé operates four factories in Greece: the coffee factory in Inofyta, the ice cream factory in Tavros and the two water factories, one in Vonitsa, Aetoloakar-nania and one in Dodoni, Ioannina.

Inofyta, ViotiaThe Coffee Factory is located in the industrial zone of the prefecture of Viotia, on the Athens-Thessaloniki National Road, 55km from Athens. It is a factory built in 1974 by Loumidis SA for the production and packaging of the Greek coffee Loumidis Papagalos, known in the Greek market since 1920. Loumidis SA was acquired by Nestlé in September1987; the necessary investments were car-ried out to modernize the roasted coffee production lines

and install the Nescafé Classic production and packag-ing lines in Greece.

The factory’s current production capacity is based on eight production/packaging lines for Nescafé Classic and the Greek coffee Loumidis Papagalos. The factory has 127 employees and produces all packaging for re-tail and professional use (e.g. hotels, restaurants, caf-eterias) with special concern to product safety and qual-ity; special care is taken for the safety of employees at the work place.

Tavros, AtticaThe ice cream factory of Nestlé Hellas is located in Ta-vros, on land covering 18,040m2; the buildings cover 12,046 m2. The extensive investment programme for automation of the mixing, pasteurization, ice creaming aging stages and cleaning of the lines was completed in 2000.

The food quality and safety system applied at the fac-tory and the distribution network comply with the NQS (Nestlé Quality System) and the FSMS (Nestlé Food

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Safety Management System), which includes the appli-cation of the HACCP system. The applied Quality Man-agement System is certified by ELOT (Hellenic Organi-zation for Standardization) in accordance with standard ISO 9001:2000 (product quality and safety).

The factory’s production covers the needs of the Greek market, while also exporting to Italy, Spain, France, Ger-many, Austria, Bulgaria, Romania, the Adriatic, Cyprus and Albania.

Monastiraki, AetoloakarnaniaThe Korpi factory, located just outside Vonitsa in the Mo-nastiraki area of Aetoloakarnaia, represents a significant investment of 4.5 billion drachma. A huge area, far from large urban centres and not exposed to urban waste, hosts one of the most modern factories in Europe. With a completely stainless-steel water network and micro-biologically controlled bottling with full temperature and humidity control, equipped with state of the art technol-ogy and automation systems, fast and efficient produc-tion and bottling lines, the Korpi factory guarantees the excellent quality of the Natural Mineral Water Korpi.

The food quality and safety system applied to the factory complies with the NQS (Nestlé Quality System) and the FSMS (Nestlé Food Safety Management System), which includes the HACCP system. The applied Quality Man-agement System is certified per standard ISO 22000 (product quality and safety).

Dodoni, IoanninaNestlé Waters Direct Hellas was created in 1997 (Aqua Spring SA at the time) and its main activity was the mar-keting of bottled water in18.9lt bottles for use in hot/cold water dispensers. The Company grew rapidly and in conjunction with increasing demand for consumer quali-ty and safety assurance, the construction of a Company-owned bottling facility was decided in 2000.

The factory was built and finally commissioned in the fall of 2001. It is located in the mountain area of Dodoni, far from villages, industrial activities, animal farming or other similar activities.


The factory facility and equipment is ultra-modern, while the bottling process is fully automatic, without any hu-man intervention, particularly during the crucial bottle sterilization, filling with water and capping process.

The food quality and safety system applied to the fac-tory and the distribution network comply with the NQS (Nestlé Quality System) and the FSMS (Nestlé Food Safety Management System), which includes the HAC-CP system. The applied Quality Management System is certified by BV, in accordance with quality standard ISO 9001:2000, the OHSAS system18001:2007 (product quality and safety) and ISO 14001:2004 (environmental management system).

3.5 Nestlé products in Greece

It is not by accident that Nestlé’s history in Greece is tied to the most loved products in Greek households. Through time, the name is associated with quality and innovation, brands that Greeks put first on their table and then in their hearts.

The first Nestlé products marketed in Greece were di-rectly imported from Switzerland at the end of the 19th century. The Γαλακτούχον Άλευρον Νεστλέ (Farine Lactée), was advertised in the newspaper Acropolis, is-sue 2 February 1899 and described as “complete food for children of a small age”.

That was the beginning of a series of stories and prod-ucts that grew along Greece. Nescafé Frappé, a famous Greek ‘patent’ that was discovered by accident and the favourite culinary products Maggi were “incorporated” in the Greek households just as well as two other great Greek products, the Greek coffee Loumidis Papagalos and the natural mineral water Korpi. The breakfast cere-als are another important chapter in the Company’s his-tory in Greece and the same stands for the beloved ice creams Boss, Magnum, Aloma and Nirvana, which are already a part of our history.

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Infant Nutrition productsNan, Neslac, Infant Cereals

Coffee (for domestic and professional use)

Nescafé, Loumidis Papagalos, Nescafé Dolce Gusto, Nespresso, Buondi, Freddoccino

Instant BeveragesNesquik, Le Chocolat, Nestea

ChocolateKit Kat, Crunch, Nestlé Dessert, Smarties

Culinary productsMaggi (bouillon, soups, puree), Nostimia, Psitonostimia, Favourite Recipes

WaterΚoρπή, Perrier, Contrex, S. Pellegrino, Vittel, Aqua Panna, Aqua Spring

Breakfast CerealsFitness, Clusters, Cheerios, Cookie Crisp, Nesquik

Products for professional useNescafé, Loumidis Papagalos, Buondi, Freddoccino, Vending machines

Ice CreamBoss, Magnum, Nirvana, Aloma, La Cremeria

PetcareFriskies, Gourmet, Pro Plan

Today, Nestlé has strong presence in 10 product categories in Greece:

You can find more information on our products at the following websites:

www.nescafe.gr www.nesquik-club.com www.icecreamland.gr www.loumidis.gr

www.chocapic.com www.korpi.gr www.nespresso.gr www.nestlebaby.gr

www.purina.gr www.nesquik.gr www.nestle-fitness.com

www.dolce-gusto.gr www.cookiecrispcity.com

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3.6. Nestlé Corporate Business PrinciplesThe Nestlé Corporate Business Principles are at the basis of our Company’s culture, which has developed over the span of 140 years. They were first published as an integrated document in 1998, although most had already been established in separate form many years before. While they are firmly grounded, they also con-tinue to evolve and adapt to a changing world. The lat-est revision was in June 2010. All Nestlé employees are obliged to comply with these principles, as well as with the more detailed relevant internal and external policies and their implementation is regularly monitored and au-dited.

The ten Nestlé Corporate Business Principles refer to


5 areas of our business operations: Consumer rela-tionship (Principles 1, 2, 3), Human rights and labour practices (Principle 4), Our people (Principles 5 and 6), Relationship with Suppliers and Customers (Principles 7 and 8) and finally the Environment (Principles 9 and 10). By publicly committing and practically implement-ing those principles we demonstrate that we satisfy our consumers, we care for our people, we develop respon-sible partners and we respect the environment.

In the following chart you will find our Principles, a short description as well as the relevant complementary inter-nal and external policies, which are equally mandatory. These include the United Nations Global Compact, the ILO Conventions 87, 138 and 182 and the article 32 of the UN Convention of the Rights of the Child.

Principle DescriptionRelevant complementary mandatory principles

1 Nutrition, Health and Wellness

Our core aim is to enhance the quality of con-sumers’ lives every day, everywhere by offer-ing tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition “Good Food, Good Life”.

Nestlé Principles on Nutrition, Health and Wellness

2 Quality assurance and product safety

Everywhere in the world, the Nestlé name rep-resents a promise to the consumer that the product is safe and of high standard.

Nestlé Quality Policy

Nestlé Nutrition Quality Policy

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 re-spect consumer privacy.

Nestlé Consumer Communica-tion

Nestlé Policy on Nutrition and Health Claims

Nestlé Nutritional Profiling System

Nestlé Nutritional Compass

WHO International Code of Marketing of Breast-milk Substitutes

Nestlé Privacy Policy

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4 Human rights in our business activities

We fully support the United Nations Global Compact’s (UNCG) guiding principles on hu-man rights and labour and aim to provide an example of good human rights and labour practices throughout our business activities.

UN Global Compact

ILO Conventions 87, 138, 182

UN Convention of the Rights of the Child: Article 32

OECD Guidelines for Multina-tional Enterprises 2000

ILO Declaration on Multinational Enterprises 2006

5Leadership and personal responsi-bility

Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal respon-sibility. We recruit competent and motivated peo-ple who respect our values, provide equal oppor-tunities for their development and advancement, protect their privacy and do not tolerate any form

Nestlé Management and Leadership Principles

Nestlé Code of Business Conduct

Nestlé Human Resources Policy

6 Safety and health at work

We are committed to preventing accidents, in-juries and illness related to work, and to protect employees, contractors and others involved along the value chain.

Nestlé Policy on Safety and Health at Work

7 Supplier and customer relations

We require our suppliers, agents, subcon-tractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed to our own customers.

Nestlé Supplier Code

8 Agriculture and rural development

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

Nestlé Policy on Environmental Sustainability

9 Environmental sustainability

We commit ourselves to environmentally sus-tainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favour the use of sustain-ably-managed renewable resources, and tar-


10 Water

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 re-sponsible management of the world’s resourc-es by all water users is an absolute necessity.


Nestlé Commitments on Water

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All our principles and policies can be found at http://www.nestle.com/AboutUs/BusinessPrinciples/Pag-es/BusinessPrinciplesHome.aspx

3.7. Our mission and values

Nestlé’s mission in Greece is to be the most recognized leader in Nutrition, Health and Wellness. Our goal is to provide products of high nutritional value to consumers, which are developed to respond to their needs and de-sires throughout all stages of life and at every hour of the day. We make sure to maintain a long-term strategy and a stable annual performance and at the same time ensure social well being and environmental responsibility. In every country it operates, Nestlé complies with the local laws and adapts to the overall cultural framework, customs and traditions. At the same time it maintains the following val-ues:

Focusing on long-term business development without losing sight of the necessity to continuously deliver sound results for our stakeholders.

Creating Shared Value is the basic way we do business. In order to create long-term value for shareholders, we must create value for society.

Committing to environmentally sustainable business practices to protect future generations.

Making a difference in everything we do by having a passion to win and creating gaps with our competition through discipline, speed and flawless execution.

Understanding of what constitutes value for our con-sumers and a clear focus on delivering this in every-thing we do.

Serving our consumers by constantly challenging our-selves to achieve the highest levels of quality for our products and never compromising on their safety standards.

Continuous improvement towards excellence as a way of working and avoiding abrupt, one-time changes.

A contextual approach to business rather than a dog-matic one. This implies that decisions are pragmatic and based on facts.

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Respect and openness to diversity of cultures and tra-ditions. Nestlé endeavours to integrate itself into the cultures and traditions where it is present, while staying true to the Company’s core values and principles.

Personal relations based on trust and mutual respect. This implies a commitment to align actions with words, to different options, and to communicate openly and frankly.

Commitment to a strong work ethic, integrity and honesty, as well as compliance with applicable laws and Nestlé principles, policies and standards.

3.8. Corporate Governance

Company organizational structureThe Nestlé Hellas Board of Directors has four members and convenes once a year. Its members are the Chairman, the Chief Executive Officer, the Technical Director and the Fi-nancial Director of Nestlé Hellas. The Board takes strategy decisions and ratifies the decisions resulting from changes in Greek legislation, which require the Board’s consent.

The central governance body of all Nestlé business ac-tivities in Greece is the Management Committee (Man-Com), which convenes twice a month and is chaired by the Nestlé Hellas CEO, who throughout 2011 was Laurent Dereux. The direct responsibility operations and sup-portive functions of Nestlé Hellas are represented in the Committee where operational decisions for the Company and the direct responsibility categories (coffee, culinary products, chocolate, instant beverages, ice cream), are discussed and finalized. The remaining categories have separate central administrations, but they participate in the NiM (Nestlé in the Market) meeting which takes place once a month, for sharing common issues since almost all support functions are serving them.

3.9. Renumeration of managers

The incentive scheme for Nestlé senior managers includes a bonus estimated in reference to corporate and personal professional performance. Personal goals are evaluated both as to the end result (what) but also as to the man-ner they were achieved (how), in full compliance with the Corporate Business Principles and the Code of Business Conduct of Nestlé.

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3.10. Determination of qualifications and expertise for senior management and senior staff

The capabilities and experience of senior management members are determined by the profile of each position, including compliance with the Nestlé international prac-tices and individual expertise required for each sector.

At the same time, all activities stipulated in the annual plan are regularly monitored. Financial performance is monitored on a monthly basis through a number of indi-cators. There is also a reporting procedure in place for

our environmental performance. Our initiatives for soci-ety are in line with the Creating Shared Value approach and the three key pillars, Nutrition, Water and Rural De-velopment. The Nestlé Healthy Kids programme, a key element for Creating Shared Value in Greece, is regularly monitored and evaluated on market level and by an ex-ternal committee on a Group level.

3.11. Nestlé Code of Business Conduct

The Nestlé Code of Business Conduct was first pub-lished in 2007 to complement the Corporate Business

CEO Nestlé Hellas

Supportfunctions

Finance

HumanResources

Communication

and Corporate Affairs

Τechnical

Supply Chain

CCSD

Sales

Legal

Security

LGO

Remaining NIM categories

InfantNutrition

Water

Nestlé Professional

Nestlé Purina

Nespresso

CPW

Nestlé Waters Direct

Coffee

Culinary

Instant beverages

Confectionary

Ice Cream

Direct Responsibility

20

Principles and provide guidance to employees on how to implement them in their daily work.

The Nestlé Code of Business Conduct covers 14 areas; compliance with the laws and internal rules and regu-lations, conflicts of interest, hiring procedure for family members and partners of employees, managerial posi-tions in business opportunities outside the Company, un-fair competition, confidential information of the Company and associates, bribery and corruption, gift, meals and entertainment policy, discrimination and harassment, re-porting illegal or non-compliant conduct. Furthermore, in the scope of the corporate anti-corruption policy, the Code of Business conduct does not allow donations to political parties in individual markets, with the exception of the parent Company in its country of origin.

3.12. Compliance Committee

The Compliance Committee was established in 2010; participating members are the CEO and representatives of the Legal, Financial, Compliance and HR Depart-ments. The roles and responsibilities of the Committee are set out in the relevant charter and there is a specific procedure that allows employees to report to the Com-mittee incidents of non-compliance with the laws and corporate rules and regulations.

The Code of Business Conduct sets out the framework of employee responsibility with clear reference to the be-haviour that ensures their integrity. There is a clear pro-cedure in place for dealing with allegations of corrup-tion or discrimination complaints, including notification of senior management, extensive investigation of the incident, evaluation of the situation and implementation of the necessary corrective actions. This standardized procedure is part of the Company management system and has been communicated to all personnel.

As of the beginning of 2012, the reporting procedure will be facilitated with a more advanced system that will al-low employees to report incidents over the phone or in-tranet while maintaining their anonymity and being able to monitor the progress of their complaint.

There was no report on corruption or discrimination inci-dent during 2011.

3.13. Issue Round Table

The Issue Round Table is the preparatory stage to Crisis Management as well as the monitoring body for issues that require notification and alignment of all operations involved in order to formulate a common position and plan the next steps. This team comprises the Regulatory Department, the Technical Department, Supply Chain, Security Department, the Safety Health and Environment Manager, Communication and Corporate Affairs Depart-ment and is headed by the CEO. The Issues Round Table meets on a monthly basis, while issues and their progress are monitored through minutes.

3.14. Security Committee

The Security Committee was established in 2007 in or-der to supervise the Company initiatives and actions of that area. The Security Committee comprises the Secu-rity Manager and the Technical, the HR and the Supply Chain Directors; the Committee convenes twice a year. The main Security goals for 2011 were improvement of preparation for crisis management and raising the awareness of all employees to the Company Security Policy. These goals were met by the end of the year. Furthermore, training on security issues is included in the new recruits induction programme, while training of employees through the electronic platform launched in 2010 and 2011 has been completed by 75% of Nestlé Hellas employees.

3.15. Safety Committee

The Employee Safety Committee was created in 2011 to develop and implement initiatives and actions for the pro-motion of safe behaviour and to meet the Company’s zero accidents target. The Employee Safety Committee com-prises the Safety, Health and Environment Manager and representatives of the HR, Communication, Sales, General Services and Technical Departments. In 2011 the priority was raising awareness on safe driving issues. To this end, 5 meetings took place and an intranet training system was applied to all employees who have or regularly use Com-pany cars. This training was mandatory for such person-nel and will be repeated every three months. In addition, a leaflet with basic safe driving instructions was developed and distributed to all Company employees.


21

3.16. Awards received in 2011

In 2011, we had two more important reasons to be proud of our Company and products.

In October 2011, the closed system Nescafé Dolce Gusto was awarded as the Best Product Develop-ment Award for 2010 in the Marketing Excellence Awards organized every two years by the Hellenic Management Association (EEDE). The award came one year after the product was launched in Greece and confirmed its excellent performance in the Greek mar-ket but also our difficult decision for significant invest-ment in the midst of an economic crisis in the country.

In December 2011 Nestlé Hellas was awarded the Preferred Supplier Award in the Food and Bever-ages category of the Retail Business Awards. It is a particularly important distinction as it is the result of a survey carried out by the University of Athens to the retailers themselves.

3.17. Nestlé participation in organizations and business associations

In order to achieve an active and clear representation of our Company views on issues influencing our business activities, Nestlé participates in a number of business or-ganizations and associations. The executive members, who represent the Company in the various teams and Committees, brief the members of Issue Round Table on the issues discussed, during its monthly meeting. The

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corporate position is jointly finalized, based on the op-erations of this team and the results of each meeting are reported and monitored on a regular basis.

The executive members hold regular meetings with the various stakeholder groups, plan their actions on an an-nual basis and report their progress to senior manage-ment (specific examples for 2011 are reported in detail in the Stakeholders Map, shown in a schematic diagram in the next chapter).

Nestlé Hellas is a member of the following associations and organizations:

Hellenic Federation of Enterprises

Hellenic Food Industry Association

Hellenic Advertisers Association

Association of Natural Mineral Water Companies

Hellenic Association of Infant Nutrition Companies

Greek Association of Branded Product Manufacturers

Hellenic Network for Corporate Social Responsibility (CSR Hellas)

Hellenic Management Association

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22

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 4 / Creating Shared Value at Nestlé

4.1. The way we work

Creating Shared Value is the basic way we do business; a central part of our strategy and operations. At Nestlé we believe that in order to create long-term value for share-holders, we have to create value for society. But we can-not be either environmentally sustainable or create shared value for shareholders and society if we fail to comply with our Business Principles.

This is why we fully comply both with the regulation of the country where we operate and with our own internal rules and regulations, which are often stricter than the lo-cal legal framework. To this end, we have set the Corpo-rate Business Principles and other regulatory documents, which apply to the entire spectrum of our business opera-tions. We carry out frequent and regular audits to ensure application of these principles.

Moreover, our business activities are based on sustaina-bility; in other words we make sure that our actions protect the future of the generations to come. Nestlé considers sustainable the development covering the needs of the present without compromising the needs of the future.

4. Creating Shared

Value at Nestlé

Creating Shared Value goes beyond compliance and sustainability. Any business that thinks long-term and fol-lows sound business principles creates value for share-holders and for society through its activities, e.g. in terms of jobs for workers, taxes to support public services, and economic activity in general.

But Creating Shared Value goes one step further. A Com-pany consciously identifies areas of focus, where: a) shareholders’ interest and society’s strongly intersect, and b) where value creation can be optimized for both. As a result, the Company invests resources, both in terms of talent and capital, in those areas where the potential for joint value creation is the greatest, and seeks collabora-tive action with relevant stakeholders in society.

At Nestlé, we have analyzed our value chain and deter-mined that the areas of greatest potential for joint value optimization with society are Nutrition, Water and Rural Development. These activities are core to our business strategy and vital to the wellbeing of the people in the countries where we operate.

At Nestlé we believe that in order to create long-term value for shareholders, we have to create value for society.

23

Creating

Shared ValueNutrition, Water, Rural development

Sustainability

Protect the future

ComplianceLaws, Business principles, Codes of conduct

4.2. The three pillars of Creating Shared Value

Nutrition

The main priority for Nestlé is to provide products of high nutritional value to consumers through all stages of their life that reflect their needs in the best pos-sible way, as generated by scientific research and on-going education.

Water

Water is a life sustaining global resource. Especially for Nestlé, water is the main ingredient in its products. Consequently, responsible management of glo-bal water resources is a Company priority and commitment. Nestlé supports water re-use, ensures efficient use of water in its activities and strives for con-stant improvement of water resources management.

Rural Development

For Nestlé, the key element for Creating Shared Value is the well-being of com-munities from which it draws the raw farming materials for its products. With rural development, provision of employment at a local level and by encouraging efficient production practices, Nestlé aims to both maintain the high quality of raw materials and the growth of local economies and a better life for farmers.

24

4.3. Nestlé Creating Shared Value in Greece

In the Greek market, our activities towards Creating Shared Value are focused on Nutrition. Our main initi-atives for the overall activation of each year as set by the end of the year and presented for approval to the Management Committee. The Healthy Kids programme which is implemented in Greece as part of the Nestlé Healthy Kids Global Programme and other actions of a smaller range, hold a special position in this effort.

4.4 Wellness Taskforce

Members of the Wellness Taskforce are the Manage-ment Committee and the Communications Department. The taskforce meets twice a year initiated by the Nutri-tion, Health and Wellness Manager in order to present the Company’s progress on Nutrition, Health and Well-ness issues (evaluations 60/40+, application of Nutri-

tional Guide on products, rate of products with a bal-anced nutritional profile, Nutritional Foundation etc.), the corporate image in the minds of consumers in reference to Health and Wellness, as well as the actions and plans set for this sector for the following year.

4.5. Mapping of stakeholders

At Nestlé Hellas, we work, act and grow in cooperation with our environment. For this reason we have mapped the groups of stakeholders, the opportunities and risks arising from our relationship and the actions that en-hance the communication between us, aiming to identify their needs/desires so that we can better respond and act collaboratively for common benefit.

Risk analysis for the entire Company falls under the En-terprise Risk Management (ERM) procedure, which has been implemented on a market level since 2009. The procedure involves evaluation of all risks by senior man-

Creating Shared Value

for Nestlé

Rural

Development

Water

Nutrition


25

Stakeholders Group/ Description

Main potential risks

Two-way Communication Goals

Employees: All Nestlé Hellas staff

Low productivity, loss of essential external “ambas-sadors”

Survey “Nestlé & I”

Identification of areas for improvement, further reduction in employee turnover

Company magazine “News&Views”

Volunteer activities

Internal campaigns for Health and Wellness

Internal Competitions

Benefits/Training

Consumers: All existing and potential buyers of our products

Sales decrease,loss of consumer trust, boycott

Annual consumer survey per category or product/corporate reputation

Consumer trust, testing and continuous preference for brands

Consumer Service Department with dedicated Nutritionist answering questions on the spot (24/7)

Multi-brand promotional activity

Communication of products with 60/40+

EU Pledge: No communication with children under 6 years old / communication of products with NF to children 6-12 years old

Customers: Trade channels collaborating with the Company for the sale of our products

Delisting of prod-ucts, termination of collaboration, sabotage

Regular top to top meetings at CEO level

Improvement of collaboration, market improve-ment

Meetings with selected customers on common strategy and category development issues

Share of information from relevant surveys on consumer behaviour

Training on issues of our expertise (e.g. WHO Code on Infant Formulas)

agement staff and is carried out on an annual basis. In 2011, due to the economic crisis, this procedure was carried out twice. The process includes identification of risks/opportunities, the triggering factors, controls that are in place and evaluation of potential consequences and possibilities. The action plan is agreed according to the estimated risk/opportunity level and includes the overall strategy that is communicated to all personnel.

There are monthly meetings on reporting, monitoring and handling of potential incidents that could lead to a crisis (Issue Round Table meetings). These meetings take place with the participation of all relevant roles and operations (e.g. Quality, Communications and Corpo-rate Affairs, Supply Chain, Security, Safety Health and Environment, Technical) and is chaired by the CEO.

26




Suppliers: Direct and indirect suppliers

Obstacles in supply chain or quality of supplied materials, Company reputa-tion risks

Procedure for selection/audit of new supplier

Selection of associates who comply with our non-negotiable criteria, good collaboration

Supplier service level (assessed monthly on quality and time deliverables)

Monthly check on on-time payment to suppliers

Percentage of local suppliers over total supply chain

Global actions: Nescafé Plan, Cocoa Plan, Collaboration with Fair Labour Association

Local community: Residents of areas where our facto-ries and offices are located

Network related ob-stacles and flaws, energy or water sourcing, scarcity of local employ-ment, sabotage

Regular meetings and collaboration with local authorities

Interactive communication at local level, iteractive cover-age of needs

Continuous exchange of know-how and resources in areas of our expertise

Support to low income families through product donations

Support of community related projects relevant to our CSV strategy

Water Care Festival

Media: Print and digital media covering our areas of focus (business, health, etc.)

Negative publicity, negative reputa-tion, consumer influence, sales decrease

Continuous engagement

Positive reaction New corporate site with journalistic approach, access to information and frequent updates

Media trips/visits to factories

Transparency and information: Planning of first GRI CSV report

Scientific community/KOLs: Scientific commu-nity in the areas of interest (health, nutrition)

Lack of credibility

Continuous engagement with selected representatives of the scientific community

Improvement of relations, collaboration in areas of com-mon interest

Visits to factories

Active participation and sponsorship of Scientific Conferences

Support of selected studies

Collaboration with the University of Agriculture for the Healthy Kids 2011 programme/Collaboration with Harokopeio University for the Healthy Kids 2012 programme


27




Society: The entire Greek society

Reputation risk

Support and implementation of programs on nutritional education

Improvement of equity, positive reaction and trust levelsTransparency and information: planning of

first GRI CSV report

Government: Elected members of the current government

Operational obsta-cles, legislation

Active participation in industry associations for optimum representation of our Company’s positions Better

collaborationNutritional education programs with the support of the Ministries of Education and Health

NGOs: NGOs engaged in areas of our interest or concern

Corporate reputa-tion risks, boycott

Regular meetings with selected NGOs

Interactive communication, improvement of relations

Collaboration with and support of selected NGOs through monetary or product donations according to our CSV priorities

Collaboration with the Hellenic Institute for Nutrition and the NGO SciCo for the Healthy Kids 2011 programme

Authorities: State and other authorities associated with our areas of interest

Reputation issues, operational obsta-cles Ongoing engagement Improvement of

communication

Nestlé S.A.

Lack of alignment with the global strategy, sharehold-ers issues

Interactive communication based on compartmentation and internal structure

Goal improvement

Alignment with the central strategic plan

Compliance with the Corporate Business Principles and other rules and regulationsRegular progress reports on all levels, according to internal procedures

28

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 5 / Nestlé in the Greek market

5. Nestlé in the Greek market: Delighting consumersConsumers are at the centre of our business activities. Our goal is to develop quality, safe products that respond to their desires and needs, to encourage a healthy lifestyle and to communicate with responsibility and respect.

29

This commitment is clearly reflected in the Nestlé Corporate Business Principles.

1st Principle: 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.

2nd Principle: 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.

3rd Principle: 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.

These main principles are complemented by more specific principles and policies:

Nestlé Principles on Nutrition, Health and Wellness

Nestlé Quality Policy

Nestlé Nutrition Quality Policy

Nestlé Consumer Communication

Nestlé Policy on Nutrition and Health Claims



WHO International Code of Marketing of Breast-milk Substitutes

Nestlé Privacy Policy

30

It is obvious that responsible, reliable communication with our consumers, children in particular, is one of our key concerns. Beyond full compliance with local legislation, we have made the labels on our products more consumer-friendly, so as to allow quick access to the information of interest. The nutritional programmes adopted since 2008 are in this context, as are the inter-nal educational programmes addressed to our people, in order to encourage a healthier lifestyle and spread the principle of a balanced diet and regular physical ac-tivity in their social environment. Regular collaboration with nutrition and health companies and organizations throughout our product range is another element that strengthens this strategy.

5.1. The Nestlé Quality Assurance and Product Safety Policy

Quality assurance and safety of our products is a non-negotiable priority. Our Company quality assurance pol-icy is schematically visualised as follows:

We use a series of tools to ensure the high quality of our products and to keep our commitment:

In reference to food safety, HACCP is applied in all our factories. There are daily and weekly meetings on quality issues, where any defects or relevant issues are report-ed, testing is decided and the progress and result are monitored. The collective results of this procedure are checked on a monthly basis by members of the Techni-cal Department in our headquarters.

In more detail:

5.2. Nestlé Quality Management System (NQMS)

The Nestlé Quality Management System is based on a series of procedures aiming to achieve the goals of our Quality Policy by evaluating the performance and con-tinuously improving the efficiency of the management system. Management through procedures is used to control all value chain activities associated with quality.

The Nestlé Quality Management System sets the Food Safety Quality System monitoring framework and the specifications for quality and information annotated on the label. It is our corporate guide for quality that is fully aligned with our Corporate Business Principles and ap-


Consumer trust and preference

Zero-defect, no-waste attitude

Food safety and full compliance

Everybody’s commitment

Quality & Nestlé The foundation of

our food, Nutrition, Health and

Wellness Company

31

plies to the entire Company and all business procedures: products, services and systems for food, beverages, infant formulas, health, wellness and pet food, associ-ated with our customers and consumers, from product development to consumption. The system is also certi-fied against ISO 9001:2000 and ISO 22000:2005 and its application for Food Safety and Compliance with Food Legislation is certified against ISO 22000:2005.

There were no non-compliance incidents recorded in 2011 in reference to the Nestlé Quality Management System.

5.3. Consumer Services

The Nestlé Consumer Services operate 7 days a week, around the clock through an external service during out-of-office hours and constitute an open line of communi-cation between the Company and the public.

Consumers can contact this service to gain access to:

Information related to products, points of sale and Nestlé associates in each area;

Nutritional information and advice from the in house nutritionist;

Recipes with Nestlé products, to be found in promo-tional fliers;

Any complaints on a Nestlé product.

A specific, detailed procedure is applied for the man-agement of requests and complaints, which defines the roles and responsibilities depending on the seriousness of the reported incident, which naturally includes the Quality Management Department. Especially regarding

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complaints, the 2011 procedure stipulates closing of a complaint within 20 days for imported products and with-in 15 days for products produced in Greece. For simple questions, the goal is to close the inquiry during the first phone call. The Consumer Service Department monitors the progress of complaints on a monthly basis and sub-mits a consolidated report to each department/product category, which is also communicated to the CEO.

The goal of the Customer Service Department is to close complaints/questions within the scheduled time-frame specified by the procedure. This goal was fully achieved in 2011.

5.4. Consumer communication with our Company in 2011

Questions 22,295

Complaints 1,484

Complaints on promotional products 29

Non-product related complaints 1,211

Total 2011 25,019

Our performance in reference to quality and safety is gauged through our communication with consumers. It is from consumers that we receive valuable informa-tion on any defective products and with their help we go back to the production procedure to check and identify the points that can make us even better.

Our goal for 2011 was to reduce quality complaints in Greece, Albania and Cyprus by 20% and 30% as to the presence of foreign body. The target was not achieved; however we managed to reduce the corre-sponding complaint categories by 13% and 17% re-spectively.

2000

1500

1000

13% lessProduct complaints

Greece-Cyprus-Albania

2010

17% lessComplaints for foreign body

2011 2010 2011

16971478

363302

500

0

32

5.5. Communication starts from the product label

Compliance on the label

At Nestlé, it all begins with full legal compliance and the same applies to our product labels. The Nestlé Consum-er Communication Principles specify our basic commit-ments regarding our labels:

All representation including text, sound and visual should accurately represent the product, including taste, size and content.

Health benefit claims must have a sound scientific basis, comply with applicable legislation and regula-tions, and be easily understood by consumers.

Nutrient content information, including fortification and nutrition claims, must be made in a way that accurately reflects the nutrition composition of the product, and comply with applicable legislation and regulations. Specific claims/propositions on packag-ing must reflect local legislation.

Environmental impact and social benefit claims must have a substantiated scientific basis, comply with ap-plicable legislation and regulations, and be easily un-derstood by consumers.

Consumer communication must show the consump-tion of products in a safe way, and not depict persons engaged in dangerous activity.

There is a specific process followed in the development of each new label, which involves all relevant members and ensures full legal compliance in this aspect. The process for development of a new label has the following stages: preparation, approval, printing and acceptance of first batch; it requires participation of the Quality Man-ager, Technical Department, Marketing and its services, Regulatory Department, Materials Handling Department, advertising Company and external printing associate. The final label is again approved by the factory Quality Manager before being made available for sales.

Our goal in this sector is zero complaints from the au-thorities, which is consistenly achieved since 2009.

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Moreover, at Nestlé we believe in the importance of ac-curate and substantial nutrient content information on our product labels which not only complies with the in-formation required by applicable legislation but is also presented in a manner that is clear, friendly and easy to understand. The Nutritional Compass, a visual that appears on Nestlé products, is a significant tool in this effort.


It is a registered labelling guide that helps consumers choose the product that better suits their own needs. More specifically, it provides information on energy, pro-teins, fat, saturated fat, carbohydrates, sugars, fibre and sodium content, the properties and composition of main nutrients and answers to questions related to a specific product or its category in which consumers are already interested or for which we want to trigger their interest. The Nutritional Compass in standardized format appears on all Nestlé product packaging and includes messag-es, which are based on science, respect the laws and provide sound information to consumers.

The Nutritional Compass has the following format:


At Nestlé, it all begins with full legal compliance and the same applies to our product labels.

33

5.6. We develop food and beverage products for health and pleasure

As the leading Nutrition, Health and Wellness Company we continually invest in the development of products that encourage a healthy diet without overlooking the very important element of enjoyment. To this end we use the Nestlé Nutritional Profiling System for the development and evaluation of our products.


It is a dynamic approach to analyzing the nutritional value of Nestlé products ensuring that these reflect a suitable choice for a balanced diet. The system was de-veloped to support Nestlé’s worldwide strategy to offer products that have proven superiority in consumer taste preference and nutritional value. Furthermore, its rigor-ous methodology is based on public health recommen-dations including those of the World Health Organization and the US Institute of Medicine.

Guideline Daily Amounts (GDA)

GDA provides an indication for the total daily energy, protein, carbohydrate, sugars, fat, saturated fat, fibre and sodium intake for a balanced adult diet and the cor-responding percentage in one serving of the labelled product. It is an international initiative developed with the collaboration of scientific partners, state authorities, NGOs and companies. This model has been adopted by Nestlé and many food companies in Greece. The scientifically based information provided on the label-ling provides to consumers the opportunity to make an informed selection and emphasizes the most important dietary information among all the information on the packaging.

The Guideline Daily Amounts label is applied on all Nestlé products.

34The criteria that ensure a strong Dietary Base for prod-ucts derive from four principles of assessment:

Consideration of the product category and its role in the overall diet: different products play a different role in our diet.

Consideration of specific nutritional factors pertinent to public health, such as calories, sugars, fat, sodium, according to the recommendation of global health or-ganizations.

Thresholds for each of these factors.

Consideration of individual serving specific to adults and children: Serving must depend on age and growth stage.

All Nestlé products in Greece have been assessed with the Nestlé Nutritional Profiling System.

The 60/40+ approach

The 60/40+ concept is directly linked to the Nestlé vi-sion for Nutrition, Health and Wellness. More and more

1.

2.

3.

4.

consumers seek products with comparative advantages for their diet and health without overlooking the important factor of taste.

That is why Nestlé wants its products to enjoy a 60% con-sumer taste preference as compared with the respective competitive products, with the additional “plus” of a nutri-tional advantage. In practice, this translates to two objec-tives: In the blind taste tests, we are looking for products to be preferred by at least 6 out of 10 consumers and we always examine the factors that bring this nutritional “plus”.

Each year, Nestlé ensures the 60/40+ of its best-selling products aiming to maximize consumer nutritional value. The programme is applied to thousands of products which are sold to 85 countries around the world.

The research studies carried out on a steady base on a great number of our products are a fundamental tool in the communication with our consumers.


35

The key to success of this procedure is nutritional control of our products. This is the job of the Nestlé Centre scientists, who compare our product with the corresponding competitive product sold in the mar-ket. The test examines the level of nutritional elements and the value of the main ingredients of our products. It identifies the nutritional advantages and disadvan-tages of a product so as to point to the right direction for improvement, that will lead to nutritional superiority.

The consumer is the final beneficiary of this proce-dure. It is with that in mind that products reflecting the consumer taste criterion with the optimum nutritional benefit are developed.

In Greece all products which are advertised, products with significant turnover and our strategic products, corresponding totally to 67% of our net sales, go through the 60/40+ testing process.

5.7. Nestlé Consumer Research Studies

The research studies carried out on a steady base on a great number of our products are a fundamental tool in the communication with our consumers. Through these research studies we aim to identify points for improvement and take important decisions regarding taste, packaging and overall image that consumers hold for a specific product.

For this purpose, we have a department of three that carries out the research studies requested by other departments in collaboration with research companies and provide us with useful data for further develop-ment of our products. At the same time, the Marketing Intelligence and Consumer Insight Department acts as an independent data source, as the data it collects from various surveys is helpful to other departments in acquiring a full or partial picture of the market and plan their strategy.

In 2011 Nestlé carried out 54 research studies, on a product or corporate level.

DepartmentNumber of

research studies

Coffee 31

Culinary 2

Infant formulas 3

Breakfast cereals 1

Water 3

Ice cream 9

Chocolate 4

Corporate reputation 1

Total 54

5.8. Responsible Communication

At Nestlé we are committed to responsible communica-tion with our consumers and we respect their privacy. Our policies in this aspect are based on the Nestlé Con-sumer Communication Principles.

Nestlé Consumer Communication Principles

The Nestlé Consumer Communication Principles de-scribe the strict criteria on which all communication with consumers must be based, both at a corporate and product level. These principles include aspects such as communication with all consumers, with children and in reference to a balanced diet and physical activity.

The full Nestlé Consumer Communication document can be found at http://www.nestle.com/Common/Nestle Documents/Documents/Library/Documents/About_Us/Communication-Principles.pdf

Nestlé Marketing Communication to Children Policy

Nestlé believes in responsible communication specifi-cally communication aimed at children, which:

Must encourage moderation, healthy dietary habits and physical activity;

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Must not undermine parental authority;Must not mislead children about the potential benefits from the use of the product; Must not create a sense of urgency;Must not generate unrealistic expectations of popu-larity or success;Must not create difficulty in distinguishing between programme content and advertising content; Must not use programme personalities, live or ani-mated, otther that our copyright characters to market products in or adjacent to television programmes, movies, magazines or printed material or on internet websites in which they normally appear so that our communication is clearly distinguished from such content.

The Nestlé Marketing Communication to Children Pol-icy was revised in March 2011 to include a series of new commitments as of September 2011. The main principles of this revision are:

No advertising or marketing activity may be directed at children under 6.Advertising for children from 6 to 12 is to be restricted to products with a nutritional profile which helps chil-

dren achieve a healthy, balanced diet, including clear limits for such ingredients as sugar, salt and fat (Nutritional Founda-tion).

There was no violation reported in connection to the above Nestlé Hellas

policies in 2011.

International Code of Marketing of Breast-Milk

Substitutes of the World Health Organization

The International Code of Marketing of Breast-Milk Substitutes was developed by the World

Health Organization in 1981, aiming to maintain and promote the practice of breastfeeding and to

ensure appropriate use of breast-milk substitutes where and when necessary.

Nestlé was the first infant nutrition Company to adopt the Code and strictly adheres to it up to present. Nestlé

specifically:

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Supports that breast-feeding is the best start in life for infants up to six months old. Fully adopts the Code as applied by each country.Has in place a strict system to ensure compliance with the Code in its activities.

In developing countries or “higher risk countries” Nestlé adheres to the WHO Code regardless whether it is in-corporated in local legislation. Distinction of countries as higher or lower risk is based on specific criteria related to infant mortality and malnutrition.

Greece and Cyprus are considered low risk countries. Nestlé strictly adheres to local legislation, in application of the corresponding EU legislation. For better manage-ment of this issue and to ensure full compliance, Nestlé Hellas has developed the Policies and Procedures Man-ual which covers all areas (behaviour of medical dele-gates, commercial policy, controlled provision of sam-ples, donation procedure, internal and external audit), including regular training of collaborating distributors and their staff.

A special Policies and Procedures Manual incorporating even stricter criteria was developed for Albania, which is considered a higher risk country, and is applied by our associate distributor in Albania.

Consumer privacy

Nestlé respects personal privacy and is committed to protecting personal data. This includes the right of in-dividuals to be informed and make decisions regarding the collection, transfer, use, disclosure, change, elimi-nation and any processing of their respective personal data.

The International Privacy Policy Standards of Nestlé set the key principles in greater detail and are adhered to by all Nestlé operations in Greece including the Consumer Serv-ices Department; there were no violations reported in 2011.

5.9. Supplier and customer relations: We develop responsible partners

Our supplier and customer relations are reflected in the Nestlé Corporate Business Principles:

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37

7th Principle: Supplier and customer relations

We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed to our own customers.

For this reason, we continuously monitor the progress of orders and record the accuracy of our deliveries, aiming to full agreement of orders and deliveries, year in year out. In other words we aim at a 100% customer service success rate.

The following table demonstrates our progress in this aspect. Specifically, we examine the ‘failure’ in serving an order as to the percentage of boxes not delivered against the total number of boxes ordered achieving a very good performance in this area as well.

5.10 The Nestlé sales network The Nestlé sales team in Greece has a staff of 150, whose daily work is to ensure our products are available to all large or small sales points.

There are approximately 130,000 points of sale for our products. These include retail stores, kiosks, gas sta-tions, pharmacies, pet shops, cafeterias, hotels as well as companies and consumers who purchase the Nes-presso and Aqua Spring products.

Our customer service network is very important to us.

3%

3%

2%

2%

1%

1%

0%

Target

Result2008 2009 20102011

Boxes not delivered/total of boxes ordered

38

Our main concern is to maintain an excellent relation-ship with our customers so we can grow to our mutual benefit. This is achieved with regular meetings at a senior management level and regular meetings/pres-entations of our new products. In the scope of good cooperation, we share information resulting from our own research studies on consumer behaviour and of-fer training on issues of our expertise such as the WHO Code on Infant Formulas, following the liberalization of infant formula trade to include supermarkets as well.

5.11. Our suppliers

At Nestlé we do not only develop high quality products but we also make sure that this is done in a manner that reflects our Company’s commitment to full compliance with the applicable laws and regulations for all our busi-ness activities and to act with honesty and integrity. Our customers expect the same behaviour from all members involved in the process, especially our suppliers.

In this manner, our extensive supplier network is an ex-tension of our own business activities. And for this rea-son, our collaboration begins with the selection proce-dure, which includes auditing on a number of areas of interest and continues with follow-up and development of a relationship between us through fixed internal and external controls. Our goal is consistency and competi-tiveness with no deviation from the non-negotiable crite-ria prescribed by the Supplier Code. Thus, the relevant department identifies and selects the suitable suppliers for all our business activities, who become valuable al-lies of the other departments as well; their satisfaction is evaluated on a regular basis.

At Nestlé Hellas we emphasize collaboration with local suppliers, both as to raw materials and packaging mate-rials, especially for our factories in Greece.

The Nestlé Supplier Code goes beyond the legislation boundaries and prescribes internationally accepted business excellence principles which aim to ensure responsible relations with our suppliers with an emphasis placed on the following aspects:

Business integrity: It includes compliance with applicable laws and regulations

Sustainability: Nestlé suppliers must support sustainable development of the collaborating farmers.

Labour standard/Human rights: Full compliance with the relevant principles of the United Nations Global Compact in reference to forced labour, child labour, working hours, compensation, non-discrimination and the freedom of association and collective bargaining.

Safety and health: In reference to the workplace environment, as well as the product quality and safety.

Environment: The supplier must operate with care for the environment and ensure full compliance with all ap-plicable laws and regulations in the country where products are manufactured or delivered.

Supplying farmers: Communication and training regarding the Nestlé Supplier Code.

Audit and termination of the supply agreement: Nestlé reserves the right to terminate an agreement with any supplier who does not comply with the Code


39

*Note: In the case of water factories, the raw material used is resin (raw material used for the plastic bottles), delivered at the Vonitsa factory for the bottling of the Ko-rpi water, which takes place at the factory. In the case of Dodoni factory, all packaging material is supplied from outside the factory. 100% of the water bottled by both factories comes from local natural springs.

5.12. Fair competition

With respect to fair competition, Nestlé adheres fully to local legislation and our internal code. Specifically, Nestlé Code of Business Conduct is referring to the is-sue on Chapter 7 – Antitrust and fair dealing:

“We believe in the importance of free competition. Nestlé is prepared to compete successfully in today’s business environment and will always do so in full com-

pliance with all applicable antitrust, competition and fair dealing laws.”

The individual rules that prescribe to the behaviour of our employees cover the commercial policy and prices, market policy and relations with customers and sup-pliers. Special emphasis is placed on employees, es-pecially those involved with Marketing, Sales and the Supply Chain or who are in regular contact with com-petitors. Special training is provided to key staff on this issue, while it was decided in 2012 to extend the training to a larger part of the staff.

In case of doubt, the legal department is responsible to offer the necessary guidance.

There were no court decisions against or fines imposed on Nestlé Hellas for unfair trading in 2011.

The percentage of local suppliers in the Inofyta, Tavros, Vonitsa and Ioannina factories is as follows:

Inofyta factory (coffee)

é (π )

Vonitsa factory (water)*

Dodoni, Ioannina factory (water)*

Packaging materials

83%

Packaging materials

76%

Packaging materials

69%

Packaging materials

30%

Raw materials (coffee)

100% imported

Raw materials

24%

Raw materials

18%

Tavros factory (ice cream)

40

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 6 / Human Resources

6.1. We care for our people

A basic global Nestlé principle is to consider its per-sonnel as its most valuable asset and to invest in its development in every way. The Company adheres to lo-cal employment legislation, but its commitment is not limited there. Nestlé encourages open communication

with its people at all levels regarding changes aiming to improve the Company business and other practices. The Company adheres to the Nestlé Corporate Busi-ness Principles and the Code of Business Conduct, which demand legal compliance and establish the re-lationship with its personnel, based on mutual trust, in-tegrity and honesty.

6. Human ResourcesNestlé encourages open communication with its people at all levels regarding changes aiming to improve the Company business and other practices.

41

The Company’s relations with its personnel are outlined by the three Nestlé Corporate Business Principles:

4th Principle: Human rights in our business activities

We fully support the United Nations Global Compact’s guiding principles on human rights and labour and aim to provide an example of good human rights and labour practices throughout our business activities.

5th Principle: 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.

6th Principle: 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.

6.2. Our people in 2011

Company site Permanent Seasonal

Headquarters 453 12

Inofyta factory 124 2

Vonitsa factory 66

Tavros factory 279

Nespresso 61 1

Nestlé Waters Direct 62

Dodoni, Ioannina factory 9

Total: 1,069

It should be noted that in the factories in particular, the employees come mainly from the local community or neigh-bouring communities.

42

Workforce broken down by age group and gender is portrayed in the following two tables.

Workforce by gender

Women 371

36%

Men 663

64%

Workforce by age group

20-30 149 15%

30-40 342 34%

40-50 367 36%

50-65 158 15%

Diversity in our workforce

35 employees of other nationalities

10 employees with numerous children (4 children or more)

46 employees in special categories (some form of disability, members of families with numerous children, etc.)

6.3. Recruitment process

Our relationship with each employee starts with the hir-ing process. The Nestlé policy is to recruit people with personality and professional skills and to allow them to develop a long-term relation with the Company. For this reason, professional development potential is a key re-cruitment factor. We apply a consistent recruitment poli-cy for those that are new to the job market. This way, we offer an opportunity to young people to start their career, something that is not self-evident. The process begins with an evaluation of the CVs we receive daily, in order to locate the right person for the right job. Next, we are conducting interviews over the phone and face-to-face and a series of tests to evaluate the true skills and the candidate’s response time in the

fields associated with the position. Special attention is paid to the candidate’s personality, as the personal val-ues must be aligned with those of the Company. In addi-tion, we are looking for leadership skills in administrative staff positions. And while the evaluation and recruitment process is facilitated by a series of tools, there is no discrimination on grounds of origin, nationality, religion, race, gender or age.

The induction process is equally important as finding the right candidate for the right position. For this rea-son, at Nestlé Hellas we apply a full, 2-week induction programme, with personal meetings and an overview of various issues, such as the Company history and the Corporate Business Principles, nutritional training, infor-mation on health and safety and a visit to the market. At a second stage, new recruits participate in a group, 3-day induction and information programme, with pres-entations from all departments and a visit to one of the Company factories.

Special attention is paid to the candidate’s personality, as the personal values must be aligned with those of the Company. In addition, we are looking for leadership skills in administrative staff positions.


43

It should be noted that the lowest entry-level salary for permanent Company employees is 30% higher than the base salary. Furthermore, there are no payroll distinc-tions between men and women.

At Nestlé we try to cover our job openings internally, providing to our own people the opportunity for further development; as a result, recruiting mainly pertains to those who enter the job market for the first time.

Nestlé Hellas recruits in 2011 in numbers

Number of CVs received

Number of in-terviews for new

job openings

Recruitment of new colleagues

7164 376 48

In the recruiting process we take gender balance into consideration, a fact that is reflected in the 2011 recruit-ments.

6.4. Employee turnover

Employee turnover is recorded at an office staff level (73% to total permanent employees). The total employ-ee turnover rate for 2001 was 2.54%:

Total turnover by gender

Men 12

Women 5

Total turnover by region

Headquarters 11

Coffee factory (Inofyta) 0

Ice cream factory 5

Korpi factory (Vonitsa) 1

Water factory (Dodoni, Ioannina)

0

Total rate of turnover by age group

20-30 3 18%

30-40 10 58%

40-55 4 24%

Μen

42% Women:

58%

Gender balance

44

It should be noted at this point that our Company speci-fies a minimum notification period for important organi-zational changes and the obligation for information and possible negotiation, in the event that transfer of some business activities leads to a change of employer.

6.5. Employee progress and development

Employee development and evaluation during the year is carried out with the use of three important tools.

Performance EvaluationPerformance evaluation is a system that ensures a spe-cific, fixed method for employee evaluation based on predefined goals, agreed jointly by the employee and her/his supervisor. These goals must be measurable by individual actions and an implementation time plan must be specified. The overall performance of an employee is evaluated as to two priorities: the “what” pertaining to specific objectives and their achievement rate and the “how” which refers to the manner in which these ob-jectives were actually realized. Evaluation according to the four key Company behavioural principles plays an important role in this stage: proactive collaboration, ini-tiative, practise what you preach, result orientation. For those under a bonus scheme, the personal objectives achievement rate in conjunction with the corporate goal achievement rate are factors that determine the sum to-tal.

This process applies to all permanent Nestlé Hellas em-ployees. The goal of the Human Resources Department is to complete the quality evaluations on time and pro-vide continuous support in this aspect. In 2011, 98% of the process was completed on time, which was the third Nestlé performance worldwide and the first on a Euro-pean level.

360 evaluationThe relationship that develops between an employee and her/his supervisor is important but not the only one that should be taken into consideration. Employees can use the 360 Evaluation tool to assess the image por-trayed to their work cycle. This process allows employ-ees to receive valuable feedback on their overall image from more groups of colleagues, including their own group, their subordinates and to group colleagues ac-cording to the fields associated with their professional position. The result is an analytical, statistical review that

covers the entire Nestlé behavioural spectrum and pro-vides specific comments which will be of help for further improvement.

In 2011 a total of 26.360 Evaluations were conducted, while 30.360 Evaluations are scheduled for 2012.

Performance Development Guide The Performance Development Guide is another tool that allows Nestlé employees to identify their strong competencies and areas for improvement and schedule the necessary actions to help cover the gap. At the same time, employees can identify the course of their career and state availability for transfer, so they can be consid-ered candidates for job openings in other markets. The Performance Development Guide is completed in a soft-ware programme similar to the Performance Evaluation software and accompanies employees throughout their career at Nestlé.

6.6. Employee training

“Training is part of our Company

culture. Each employee, at all

levels is conscious of the need

to upgrade continuously her/his

knowledge and skills. The willing-

ness to learn is therefore a non-

negotiable condition to be em-

ployed by Nestlé”.



45

The ambition of Nestlé is to be a continuous learning organization. Each year, the Company implements a training programme that reflects the needs of employ-ees and its Company objectives using the knowledge and expertise of Company staff and external special-ized associates.

The training programmes implemented cover personal development and progress, consumer services, train-ing of medical delegates, personnel management and team building issues, administrative skills, develop-ment of interview or presentation techniques, financial seminars for non financial employees, human resourc-es programmes for employees outside the HR Depart-ment, operational knowledge and skills, innovation-de-velopment-technology, computer and foreign language courses. There was repeat training specifically on the

Nestlé Corporate Business Principles at a team level. An e-learning tool is designed specifically for compli-ance with the guiding principles of the United Nations Global Compact (UNGC), which are included in the Nestlé Corporate Business Principles, so that training of all personnel can be completed in 2012. An e-learn-ing tool for all employees was implemented on the is-sue of Corruption, which is also included in the Nestlé Code of Business Conduct, while an interactive training against corruption was implemented at a senior staff level, (180 employees representing 19% of the work-force).

Furthermore, the Nestlé International Training and Con-ference Centre Rive - Reine, close to Vevey, Switzerland is where Nestlé people from all over the world meet for 1 or 2-week training sessions.

46

2011 Nestlé training in numbers:

Company site Total hoursAverage

hours /person

Tavros Factory (ice cream)

Workers 2,673 21.21

Office staff 354 3.27

Sales team 473 10,75

Inofyta Factory (coffee)

Workers 2,321 23.21

Office staff 1,923 54.95

Water Factories

Workers 420 10.00

Office staff 572 23.86

Headquarters 3,150 8,08

Total 2011 training cost in Euros:

Seminars (cost) 152,046

Travel cost (tickets, hotels) 113,400

Total 265,446

Our office environmentAt Nestlé we want to create a friendly environment for our people. We apply an open door policy and we build relations based on cooperation and understanding. We subsidize employee meals at the Company restaurant, while as the leading Nutrition, Health and Wellness Com-pany we ensure a healthy choice in the daily menu; the fruits offered for free on each floor are replaced daily.

We believe that this atmosphere contributes to the devo-tion of employees to our Company. It is not accidental that employee turnover in 2011 on an office staff level was only 2.54%.


47

Agree Neutral Disagree

Do you believe that you are paid fairly for the work you do?

Are you given the opportunity to take initiative?

Do we support your success?

Do you have the support of your supervisor?

6

67 21 12

76 17 7

67 22 11

1282

Results of the Nestlé & I Survey in 2011

Employee benefits:

Additional maternity leave period beyond what is re-quired by legislation (16 additional calendar days)

Baby scheme, i.e. free infant formula for 1 year for each child (if the moth-er is not breastfeeding)

Wedding gift of 200 euros in cash

Christmas gift checks for employees (60 euros to be used at Nestlé mini market) and for their children (50 euros to be used in a popular toy store chain)

Gift and half salary for 15 years of service

Gift and one salary for 25 years of service

Medical and insurance plan for all employees

Pension plan

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Subsidized canteen products (breakfast and lunch)

Reduced prices on Nestlé products in the Company mini market

Nestlé & I Survey

Nestlé implements the “Nestlé & I” global employee survey, which reveals the views of our employ-ees, outlines issues that need improvement and takes action for their implementation.

More specifically, the full survey is implemented every two years.

Action plans are scheduled to address the issues outlined in the findings and the

results are evaluated during a smaller-scale survey carried out during the in-between years, aiming to

provide feedback on the anticipated progress on these issues.

A smaller-scale survey was carried out in 2011 and showed important progress on the issues addressed in 2010.

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48

6.7. Employee Health and Safety

At Nestlé we believe that sustainable success can be reached only through our people. No other asset in the Company is as important as the people who contribute with their work to our culture and business results. There-fore we devote all the necessary energy and attention to protect our employees and any other people involved along our Company’s value chain.

The Nestlé Policy on Safety and Health at Work describes our commitments and priorities in this area, with an em-phasis on legal compliance, continuous improvement, leadership and participation, behavioural approach, communication, education and training, implementation and audit. The Company target is zero accidents and zero calendar day absences from work due to an ac-cident.

Our Policy on Safety and Health at Work follows two main directions: Control of unsafe conditions and control of safe behaviour (Behavioural Based Safety). Regarding the first direction, there has been significant investment in all our facilities over the last years to ensure a work environment with the least possible risks. Recognizing that unsafe behaviour is at the root of accidents, we car-ried out more than 3,500 visits/discussions on safety issues in 2011, through the Safe Behaviour Control pro-gramme. The main goal of these visits/discussions is to identify and correct unsafe behaviour aiming to raise awareness on Safety and Health issues with simultane-ous engagement of all employees. It should be noted that the programme, first implemented in 2007, brought on significant improvements in the Safety and Health at Work sector and helped us attain significant milestones, such as 1194 accident-free days at the coffee factory in Inofyta (a significant achievement in 2011) and 3.5 acci-dent-free years at the water factory in Dodoni, Ioannina.

An extensive programme to raise the awareness and train all personnel on health and safety issues, with an emphasis on office staff, warehouse and sales staff, was carried out in 2011 through actions such as the safe be-haviour campaign, markings at the factories and pres-entation at the key staff meeting. At the same time, a safe driving training session was addressed to the entire sales team and all those who drive Company cars. And because safety is not restricted to the work place or dur-ing work, a leaflet with safe driving advice was distrib-uted to all Company personnel.

As is the case every year, the 2011 goals are clearly set and monitored monthly, aiming to reduce the number of incidents and accidents.

Safety Index

Frequency of accidents at Nestlé in Greece

2008 2009 2010 2011

4.44 2.22 0.79 1.31

There was no death of an employee as a result of a work-related accident at Nestlé Hellas ever.

Recorded incidents in 2011

Headquarters 0

Ice cream factory in Tavros 2

Coffee factory in Inofyta 2

Water factory in Vonitsa 0

Water factory in Dodoni, Ioannina 0

Days without accident (data of 31/12/2011):

Headquarters 583

Ice cream factory in Tavros 248

Coffee factory in Inofyta 32

Water factory in Vonitsa 545

Water factory in Dodoni, Ioannina 1269

We also monitor employee absenteeism on a monthly and annual basis, as an employee satisfaction indicator.

The Company target is zero accidents and zero calendar day absences from work due to an accident.


49

Employee absenteeism in 2011:

Headquarters 691

Ice cream factory 770

Inofyta factory 648

Water Factory 402

Nespresso 128

Total number of days of absence due to illness or ac-cident: 2639

6.8. Nestlé Employee Council

The operation of our Company’s Employee Council is specified by Law 1767/88. The Council’s objective

is the representation of Nestlé Hellas employees to the Company. The Council comprises five members, in proportion to the number of Company employees and the members are elected every two years. Em-ployee issues are submitted to the council and dis-cussed during the regular monthly meetings. After be-ing evaluated by the members of the Council, they are sent to HR Department which in turn presents these issues to the monthly meeting of the Management Committee. In addition, the council collects, evaluates and provides offers to personnel, such as commercial discounts or healthcare discounts. Blood donation is organised twice a year at the council’s initiative and in collaboration with the Children’s Hospital. The Coun-cil participates in the Nestlé European Council, which meets twice a year for information and consultation on financial and other issues and guidance on any issues that may arise.

50

7. Environment

At Nestlé we are committed to apply environmentally sustainable business practices and significant investments for the improvement of our environmental management. This way, we ensure our Company’s sustainable development and we respond to the imperative need for protection of the planet and the future of the next generations.

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 7 / Environment

51

Our environmental performance in our business activities is specified in two Nestlé Corporate Business Principles:

9th Principle: Environmental Sustainability

We commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favour the use of sustainably-managed renewable resources, and target zero waste.

10th Principle: Water

We are committed to the sustainable use of water and continuous improvement in water management. We recognize that the world faces a growing challenge and that responsible management of the world’s resources by all water users is an absolute necessity.

The above principles are specified in detail by two indi-vidual policies and commitments:


Nestlé Commitments on Water

Nestlé Policy on Environmental Sustainability sets our priorities on this particular area.

WaterWater is used by all our suppliers, operations and by consumers. As a founding member of the United Na-tions Global Compact CEO Water Mandate, we continue to:

Work to reduce the amount of water withdrawn per kilo of product;Assure that our activities respect local water resourc-es;Take care that water we discharge into the environ-ment is clean;Engage with suppliers to promote water conserva-tion, especially among farmers;Reach out to others to collaborate on water conser-vation and access, with a particular focus on women and children.

1.

2.

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Managementreview

GeneralRequirements

Environmentalpolicy

PlanningImplementationand operation

Checking

When selecting agricultural raw materials we:Prefer to use agricultural materials which are pro-duced based on sustainable practices and are locally available;Provide technical assistance on sustainable agricul-ture production methods with our local Nestlé agri-cultural services or through partnership with public agricultural services and research organizations; Promote cooperation with other stakeholders in the food chain to leverage sustainable development in agriculture worldwide, in particular through the Sus-tainable Agriculture Initiative Platform that we co-founded.

During the manufacturing and distribution of our products, we use efficient technologies and apply best practices to:

Reduce the amount of energy consumed per kilo of product;Utilise sustainably-managed renewable energy sourc-es, where economically viable;Control and aim to eliminate emissions, including greenhouse gases.Recycle or recover energy from by-products.

The packaging of our products is critical to guarantee our high quality standards, to prevent food waste and to inform consumers. We strive to:

Reduce the weight and volume of materials;Lead the development and use of materials from sus-tainably-managed renewable resources;Support initiatives to recycle or recover energy from used packaging;Use recycled materials.

7.1. The NestléEnvironmental Management System

The Nestlé Policy on Environmental Sustainabil-ity is implemented through our Nestlé Environmental Management System (NEMS). This is a system of holistic evaluation of our environmental performance, which incorporates our environmental principles, as well as our programs and practices in our environmental activities. The Nestlé Environmental Management Sys-tem includes procedures for continuous improvement, is in accordance with the international standard ISO

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14001 and is implemented in all our production units in Greece. The goal of Nestlé is to apply every environmental regu-lation and legislation to the maximum and to act with en-vironmental responsibility through initiatives that restrict the environmental impact of its activities. Below is a schematic representation of the Nestlé Envi-ronmental Management System (NEMS):

53

It should be noted that there has not been an environ-mental accident recorded and no fine or monetary sanc-tion has been imposed on Nestlé in relation to its compli-ance with environmental legislation.

2009 2010 2011

Number of environmental accidents

0 0 0

Number of complains for environmental management

0 0 0

Number of fines on envi-ronment and sanctions

0 0 0

7.2. Our performance in 2011

Energy Management At Nestlé, energy management is a significant factor of key importance for our environmental performance. In all our production units there is an emphasis on efficient management of energy consumption aiming at an an-nual 3% reduction of consumed energy. Upgrading of equipment and our production process is a strategic Company target aiming to maintain the excellent qual-ity of our products and to improve our environmental performance at the same time. Important initiatives are

implemented in this aspect, with significant investments made for the reduction of energy consumption in the fol-lowing areas:

Improvement of energy efficiency in the production process Correct management of water resourcesReview of procedures aiming to optimize waste dis-posal Improvement of environmental impact from the use of Company fleet (employee training on safe and en-ergy-efficient driving)

Energy Consumption in gigajoules (GJoule)Total energy consumption from Nestlé Hellas operations is calculated at 126,292 GJoules as allocated in the fol-lowing diagram.

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Upgrading of equipment and our production process is a strategic Company target aiming to maintain the excellent quality of our products and to improve our environmental performance at the same time.

Headquarters

Factory Dodoni

FactoryKorpi

FactoryTavros

FactoryInofyta

3,240

921

20,406

62,622

39,103

54

Consumption of renewable energy sources

In all Nestlé production units, consumption of renew-able energy sources complies with the national strategy; there was increase noted during the last year.

7.3. Management of Greenhouse Gas Emissions

Preservation of the natural environment is an important priority for Sustainability at Nestlé. Efficient management of the energy consumed by our operations is very im-portant for reducing greenhouse emissions. Our contri-bution in reducing greenhouse emissions is specified through coordinated actions to decrease carbon diox-ide (CO2) emissions (through decrease of energy con-sumed) and other gases that contribute to the increase of this phenomenon.

According to the Nestlé policy, substances responsible for the depletion of the ozone layer have been removed from the production process of all our facilities follow-ing environmentally safe procedures and according to international practice, since the end of 2010. The follow-ing graphs present the 2011 direct and indirect carbon emissions (CO2) and other gases that contribute to the greenhouse gas emissions phenomenon.

*Note: At the Dodoni factory, the direct CO2 emissions were zero, since the production unit operates solely with electrical energy.

**The zero Sox/equivalents emissions in the Dodoni production are due to the fact that it only uses electrical energy.

Factory Tavros

Factory Inofyta

230

244

925

1,289

1,510

1,292

20112010

Factory Korpi

00

Direct CO2 Gas Emissions (tons)*

Consumption of Renewable Energy Sources (%)

15%

15%

17%

Our contribution in reducing greenhouse emissions is specified through coordinated actions to decrease carbon dioxide (CO2) emissions.


Indirect CO2 Emissions (tons)

20112010

3,760

8,458

7,843

200

253

4,588

2,6422,596

Factory Dodoni

Factory Korpi

Factory Tavros

Factory Inofyta

55

7.4. Water management

Water management inreference to the Company’s envi-ronmental impact is a particular area of focus for Nestlé. We are committed to responsible water management and gradual decrease of consumption in our production units through upgrading of infrastructures and equip-ment. In 2011, total water consumption was at 466,088 cubic meters.

The actions we apply to reduce water consumption are methodically implemented and have produced a posi-tive result. Specifically, it should be noted that the Tavros factory achieved 15% savings in water consumption due to the operation of a closed pasteurized water recircula-tion system. In the Dodoni factory, the water used in the production process is recycled and reused achieving a 6% drop in water consumption compared the previous year’s water consumption.

Water Consumption (cubic meters)

20112010

32,071

38,933

140,459

179,010

287,501

369,054

6,057

6,027

Emissions of SOx / equivalents**

20112010

864

1,890

2,423

917

2,826

2,418

00

Factory Dodoni

Factory Korpi

Factory Tavros

Factory Inofyta

Factory Dodoni

Factory Korpi

Factory Tavros

Factory Inofyta

56

7.5. Waste management

At Nestlé, we are committed to responsible waste man-agement and disposal under the system for environ-mental management of our operations.

Regular tests and measurements are conducted on the quality of water with respect to liquid waste generated from the production process in all our factories, accord-ing to the environmental terms of operation.

Nestlé has developed an integrated waste monitoring system, aiming to map the existing situation and estab-lish reduction targets on an annual basis. For 2012, the Nestlé target is a 2% reduction of solid waste in each of its factories.

Apart from reducing the solid waste that is discharged to the environment, Nestlé has set individual targets for recycling materials as can be seen in the previous dia-gram.

With respect to hazardous waste, Nestlé ensures effi-cient disposal, by delivering hazardous waste to a spe-cialized and licensed hazardous waste Company, which is in turn responsible for their treatment according to en-vironmental legislation.

Liquid Waste (cubic meters)

20112010

98

96

41,192

59,079

112,526

160,194

9151,620

Solid Waste (tons)

20112010

12

12

252

304

105

141

72

72

Nestlé Hellas Sustainability Report 2011 / Chapter 7 / Environment

Factory Dodoni

Factory Korpi

Factory Tavros

Factory Inofyta

Factory Dodoni

Factory Korpi

Factory Tavros

Factory Inofyta

57

7.7. Company fleet

The Nestlé Company fleet is used to transport the prod-ucts we produce and our personnel. The Company fleet comprises 250 Company passenger cars and 28 trucks for transportation of our products. At Nestlé we system-atically record the routes of our Company fleet and cal-culate consumption in order to also assess the environ-mental impact generated by their use. At the same time we examine and implement actions that can help reduce the environmental impact. Raising the awareness of our personnel is of key importance in this aspect. For this reason, during the 2011 safe driving campaign we also

Consumption of raw materials (tons)

20112010

19,149

21,486

8,96611,208

15,54015,500

96,917

117,509

Consumption of packaging materials (tons)

20112010

37

43

3,607

4,400

3,648

4,100

3,859

4,882

7.6. Use of materials

The diagrams below present the consumption of raw materials and packaging materials in 2010 and 2011 in our four production units in Greece.

provided information on its environmental dimension. Additional actions towards that target are scheduled for 2012 and any improvement will be assessed.

Corporate Fleet Kilometres 2011

250 Company passenger cars 6,000,000

28 trucks for transportation of products

291,125

TOTAL 6,291,125

Passenger cars 250

Trucks

28

Factory Dodoni

Factory Korpi

Factory Tavros

Factory Inofyta

Factory Dodoni

Factory Korpi

Factory Tavros

Factory Inofyta

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Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 8 / Commitment to society

Nestlé serves its social role around the world with an emphasis on programmes and initiatives associated with its three Creating Shared Value pillars (Nutrition, Water, Rural Development) and focus on the local communities.

8. Commitment to society

8.1. Healthy Kids Global Programme

The Healthy Kids Global Programme is one of the most important Nestlé initiatives for Creating Shared Value in Nutrition. The programme is based on a simple belief we all share at Nestlé: education is the most effective tool to help kids understand that a balanced diet combined with physical activity can ensure that they will continue to lead healthy lives as they grow older.

All Nestlé subsidiaries around the world participate in this effort, by developing programmes that aim to the nutritional education of children. However, nutritional needs vary from country to country: from malnutrition in developing countries to overnutrition in developed coun-tries, the Nestlé programmes are designed and adapted to specific nutritional issues relevant to each area.

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This effort must be implemented carefully and responsi-bly. That is why at Nestlé we have developed strict crite-ria for the programmes under the Healthy Kids platform, while seeking the involvement and cooperation of rel-evant parties, such as nutrition experts, NGOs and state authorities on health issues. Currently, at Nestlé we have more than 60 active programmes underway in collabo-ration with at least 100 NGOs and state authorities. It is an effort that requires coordination, dedication and hard work. However, it is also a powerful example that reflects the way we Create Shared Value both for the Company and for the community where we live and work.

Under the guidance of our Creating Shared Value strat-egy, our endeavours and activities at Nestlé Hellas are mainly focusing on the following initiatives:

Healthy Kids ProgrammeWater Care FestivalFood donationsSupport to NGOs focusing on dissadvantaged children Employee volunteering

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8.2. Healthy Kids in Greece

As part of the Healthy Kids Programme in Greece, Nestlé Hellas supported two great initiatives addressed to pub-lic and private elementary school children.

Think and Eat ProgrammeThe original educational programme Think and Eat started in 2009 and is implemented by the Hellenic Nu-trition Institute, an active non-governmental nutritional organization. The programme is addressed to elemen-tary school children and aims to provide information and education on the importance of good eating habits, physical activity and an overall healthy lifestyle. During the school year, students have the opportunity to talk with nutritionists and nutrition and health scientists and receive informational material for themselves and their parents.

For the 2010 – 2011 school year, the Think & Eat Pro-gramme was redesigned in order to adapt to the stricter criteria of the Nestlé Healthy Kids programme. In its new form, it was extended to three cycles. The goal of the fist cycle was to teach children the value of breakfast and help them form the ideal diet on their own, based on their anthropometric measurements (weight, height, age)

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and specific instructions. During the second cycle, our young friends had the opportunity to learn the benefits of the Mediterranean diet in an entertaining way, through a theatrical play that was developed and presented by a team of specialized artists. The third cycle included interactive activities and an amusing video clip stress-

ing the necessity and benefits of physical activity. During the 2009 – 2011 period, the Think & Eat pro-gramme offered the opportunity to more than 8,000 students to be informed on the principles of a balanced diet and the beneficial role it plays in the development of their body and mind.


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Results of the programmeIn spite of the short implementation period, the programme had a positive im-pact on the weight, eating habits and physical activity of children.

Improvement in physical activity

38%37%36%35%34%33%32%31%30%29%

Beginning of the programme End of the rogramme

Daily excersise

Weight improvement

25%

20%

15%

10%

5%

0%

Above normal Overweight Obese

Beginning of the programme

End of the programme

Improvement of eating habits

Bread with marmalade for breakfast

Yogurt for breakfast

Juice for snack

Sandwich from home for snack

Juice in the afternoon

Yogurt in the afternoon

Eating 5 fruits

Salad with the two main courses

0% 10% 20% 30% 40% 50% 70%60%

Beginning of the programme

End of the programme

80%

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“Nutritional education through theatrical play”Nestlé Hellas supported an innovative nutritional educa-tion programme developed by Nutrimed and the non-profit organization SciCo. The pilot programme was addressed to children from 8 to 10 years old and was im-plemented in ten elementary schools in Attica during the 2010-2011 school year. The goal of the programme is to affect the dietary choices and physical activity of school-age children and to test alternative teaching methods of a more interactive nature. The programme combines contemporary, innovative teaching techniques with the use of sound, image and music. The main tool used to transfer nutritional knowledge through many disciplines, such as math, chemistry and physics is a theatre play.

Musical movement games, pantomime, creative projects, imaginative action scenarios are some of the experimen-tal learning methods used in the programme that lasted the entire school year and covered ten units on nutrition:

the meaning of nutrition in our life

individual eating habits the factors that form eating habits (taste preference, family, environment, economy, media) understanding the Mediterranean diet and the Medi-terranean pyramid how nutrition is related to health, development and weight control boosting self-esteem in reference to body image the importance of physical activity the importance of breakfast, in-between meals and school meals for our health the connection between frequent meals and main-taining a normal body weight the importance of dental health and food safety in di-etary choices

The children of Nestlé Hellas employees also had the opportunity to enjoy the benefits of this programme during a one-time session that took place at Company headquarters and also at the Tavros factory.

Results of the programme

Improvement of dietary habitsSignificant changes were noted among the intervention groups and the control group for habits such as choco-late consumption, the number of meals, consumption of soft drinks and frequency of family meals. A significant increase in the number of meals was especially noted in the intervention team.

Improvement of psychological climate in the classroom Differences emerged in student satisfaction regarding school work, friction and competitiveness among stu-dents, the degree of difficulty of student school assign-ments and friendliness and mutual assistance between students. There were significant differences among the teams regarding competitiveness among students. The implementation period was too short to note big changes; however, the presence of a teacher and implementation of a programme by the teacher proved to be a positive critical factor.

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The programme combines contemporary, innovative teaching techniques with the use of sound, image and music.


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8.3. Healthy Kids: Goals for 2012

In view of the current situation in Greece, it is neces-sary more than ever to maintain and develop such pro-grammes; for this reason we intensified the Healthy Kids Programme for 2012. Thus, this year we adopt the Child and Development programme developed and applied by the Harokopeio University, which since 1997 has been mapping the body composition and nu-tritional profile as well as the physical activities of stu-dents throughout Greece and has evaluated more than 1,000,000 students up to present. In collaboration with the Ministry of Education, this programme started using

this data by sending personalized reports to each of the student families. These reports include each student’s Body Mass Index, an assessment of the level of their nutrition and physical exercise habits as well as specific suggestions/advice to parents. Along with the evaluation report, parents receive a brochure containing scientific information in simple language, regarding nutrition and exercise. This programme will reach 60,000 students during school year 2012-2013, which are the students of all Greek schools in the 3rd Elementary class. It will also include a pilot nutritional education section aiming, apart from mapping, to develop parallel support and help methods for the future.

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8.4. 2nd Water Care Festival at the Korpi factory

Natural Mineral Water Korpi organized for the second consecutive year the Water Care Festival at the Vonit-sa factory in Monastiraki, on World Water Day, March 2, 2011. The main priority and the goal of this year’s

festival was to raise the awareness of children on the importance of hydration to the human body and protec-tion of valuable water resources and of the environment, through specially designed educational activities and of course contact with water.

The Festival, with the participation of 120 children from 4 local schools, started with a guided tour of the Korpi factory, in the Korpi area in Monastiraki, Vonitsa (Aetoloakarnania) and continued with the interactive games on the world of water. During this tour, children had the opportunity to receive information on the im-portance of water for the planet and the efforts we must all make to protect the environment and the available water resources by making small changes to our daily routine. The selection of the Festival activities was car-ried out by the Korpi team in cooperation with Nestlé Waters, which has implemented similar initiatives on a global level under the scope of Project WET. The activi-ties were organized by specially trained employees of Natural Mineral Water Korpi with active participation of the teachers.

Nestlé Waters is especially aware of the need to protect water resources and their use in production


65

activities, on a global level. Honestly believing that children can make a difference in the protection of our planet if they have the correct information and education, and having received very positive com-ments on last year’s festival, we decided to organ-ize the Water Care Festival for the second year. We are excited and confident that this initiative will be a contribution in the right direction towards a better future”.

Georgos Sarris, Korpi Factory Manager

Local authorities, institutions and other agencies in-volved with environmental issues had the opportunity to come in contact through this festival and strengthen their relations of trust with the local community.The Water Care Festival will take place again in 2012.

Korpi supports Anoihti Agalia and donates medi-cal equipment to the Ippokratio General Hospital of Thessaloniki In early March 2011, the actual delivery of new medi-cal equipment from Anoihti Agalia of the Friends of Social Pediatrics and Medicine to the children’s renal laboratory of the Pediatric Clinic took place at the am-

phitheatre of the Ippokrateio General Hospital of Thes-saloniki. The equipment donated included an infrared spectrometer and a special microscope which will aug-ment the operation of the children’s renal laboratory of the Pediatric Clinic. The infrared spectrometer and the microscope were donated by Natural Mineral Water Korpi.

In the context of this donation, Natural Mineral Water Korpi used special packaging with the motto “Korpi. Springs….love!” thanking consumers for their trust through all these years and encouraging their sup-port to the very important work of Anoihti Agalia of the Friends of Social Pediatrics & Medicine, presenting this donation as an example - which does not require the purchase of a product- by making a donation to the Ip-pokrateio General Hospital of Thessaloniki.

“The purpose of this event was to provide for people suffering a disease - young or old - responsibly, with consistency and respect to the established right of all of us to health, prevention, medical care through a social state”.

Yolanda Vlahou, President of Anoihti Agalia

66

“Through this collaboration, Korpi water, a product directly associated with health and good physical condition, supports the work of Anoihti Agalia and demonstrates in practice its love for socially vulner-able groups, such as children, by supplementing the equipment of the only children’s renal labora-tory in our country, since consumption of water is directly linked to the good operation of the urinary tract and kidneys”.

Constantinos Koutsas, Country Business Manager Nestlé Waters

8.5. Product donations

Nestlé Hellas could not remain indifferent to the eco-nomic crisis in Greece and its con-sequences. In 2011, there has been a dramatic increase of requests for product donations as more mu-nicipalities set up social groceries collecting food and essential relief items for their financially weaker citizens.

In 2011 we donated food to more than 100 organizations and chari-table institutions, with an empha-sis on areas where our offices and factories are located. The purchasing value of everyday products (coffee, breakfast ce-real, culinary products, choco-late, ice cream, infant nutrition, bottled water) we donated in

2011 was more than 740,000 Euros.

8.6. Support of NGOs focusing on children

Nestlé Hellas provides regular support to NGOs whose priority is caring for children and families, through dona-tions of money, food or employee volunteering actions. Among these are the Smile of the Child (Χαμόγελο του Παιδιού), Friends of the Social Pediatrics Association “Anoihti Agalia”, SOS Children’s Villages Greece, the Hellenic Red Cross and Make-A-Wish Foundation in Greece.

8.7. Employee volunteerism In 2011 we activated volunteerism by encouraging em-ployees and providing them with the opportunity to par-ticipate in a series of initiatives.

Donation of school material to Smile of the Child In September 2011, we invited our employees to donate school materials in good condition in order to support the needs of children cared for by the NGO “Smile of the Child”. All Nestlé operations in Greece participated in this action and the response was great. Apart from donating material, many employees volunteered to par-ticipate in the next steps of this initiative: sorting the ma-terial next steps according to needs and transporting it to the Smile of the Child Support Centre in Marousi.

The initiative in numbers

Number of employees who donated school materials

134

Number of volunteers 67

School bags 49

Pencil cases 67

Notebooks 620

Pencils 1439

Pens 605

Erasers 469

Pencil sharpeners 162

Coloured pencils 887

Markers 1339

Total number of items delivered 8864

Number of children supported by the Smile of the Child

3619

“The children and the people of the Smile of the Child organization wish to extend our warmest thanks for your very important contribution to our ef-forts and especially in school supplies, which were used to help the 3619 children supported by our Organisation”.

Costas Giannopoulos, Chairman of the Board of Di-rector of The Smile of the Child


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A good deed for ChristmasIn December 2011, we decided to celebrate Christmas with a simple gift of love: sending food to 800 families in need, with an emphasis on areas where our central of-fice and the four Nestlé factories in Greece are located (Marousi, Tavros, Inofyta, Vonitsa, Dodoni).

The Company was briefed on the needs of these areas and donated products such as coffee, breakfast cere-als, potato puree and chocolate, which were distribut-ed by the social services of local authorities and other charitable organizations.

Many Company personnel were mobilised for the practi-cal requirements of this event and rushed to participate in an original celebration in the spirit of volunteering by offering their services as they undertook packaging the food and hundreds of bags, which they then decorated with their own personal wish to the families.

“The products you gave us were distributed to our fellow citizens in socially vulnerable groups who are suffering from the current economic depression. A part of the products was donated to fellow citizens who participated in the New Year’s meal of love of the Municipality of Marousi and there was special reference made to your Company”.

Nicolas Alepous, Head of the Social Responsibility Of-fice of the Municipality of Marousi

“We wish to thank you for donating your Company’s products to the people and families under our protec-tion, which is a confirmation of your strong sense of social responsibility. Your participation in the work of Arogi encourages us to continue our efforts”.

Vicky Eliott, Chair Person of the Arogi Social Care Foun-dation

“Getting to know personally the representatives of employees who visited our facility and had the oppor-tunity to learn about our work, was very important to us. Equally important to the people that we help was the feeling of solidarity they experienced through the hand-written cards inside the gift packages. Please, convey our thanks to all employees who directly and materially helped our mission with their personal work”.

V. Karavia, Tavros Deputy Mayor

“We wish to extend our warmest thanks for respond-ing to our request so eagerly. Your donation consti-tutes significant help in achieving our goal to offer some relief to the poor in our Municipality, especially during this period”.

Anastasia Makarona-Psyhogiou, President of the Chalki-da Municipal Education, Protection and Solidarity Organi-sation

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Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 9 / Corporate Responsibility Report Quality Assurance

9. Corporate Responsibility Report Quality Assurance

Nestlé requested that the Centre for Sustainability and Excellence (CSE) provides an independent assurance and comment on the Corporate Responsibility Report of the Company for the period January 2011- December 2011.

69

9.1. Introduction

Nestlé requested that the Centre for Sustainability and Excellence (CSE) provides an independ-ent assurance and comment on the Corporate Responsibility Report of the Company for the period January 2011- December 2011.

CSE is part of an international network of experts and one of the top companies in the world specialized in finding solutions for Corporate Social Responsibility and Sustainable Develop-ment.

9.2. Assurance Statement

We were commissioned to review the Corporate Responsibility Report 2011 of Nestlé Hellas, as well as the policies, practices and performance data provided therein.

Our approach was based on the best practices adopted for the Assessment and Submission of Sustainability Reports, including the G3 guidelines of the GRI. The data provided in the Cor-porate Responsibility Report was reviewed through interviews, sampling test and verification of the qualitative performance data related to Corporate Social Responsibility for the aforemen-tioned time period.

We believe our work is a sound basis from which the following conclusions may be drawn:

The first Corporate Responsibility Report of Nestlé Hellas has disclosed with clarity the corporate responsibility goals providing a balanced presentation of CSR management and all available information.

Nestlé Hellas developed its Corporate Responsibility Report according to GRI G3 guidelines after determining the key materiality issues of the organization, following a self-assessment methodology.

The disclosure of CSR Key Performance Indicators was incorporated in the Corporate Re-sponsibility Report with clarity, providing better coverage and setting of quantitative goals.

Nestlé Hellas goal setting covers all aspects of its main operations and corporate responsi-bility initiatives, providing the ability to identify the organization’s commitments for improving its CSR performance.

Athens, June 2012Nikos AvlonasManaging Director & President CSEwww.cse-net.org

9.3. Communication with Nestlé

The Corporate Responsibility Report 2011 of Nestlé Hellas is available to the public through the Company’s corporate site www.nestle.gr

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Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 10 / GRI Index

10. GRI Index

Nestlé Hellas has evaluated the Corporate Responsibil-ity Report and finds that the report has been compiled in line with the G3 Guidelines B+ application level.

The CSE has evaluated the Corporate Responsibility Re-port of Nestlé Hellas according to the GRI G3 Guidelines B+ application level.

This report is the first attempt to capture the effects of Nestlé Hellas CSR activities and covers all its activities, based on the overall CSR strategy and targets. The Report covers the period January 2011 - December 2011.

Coverage:

Full Index Coverage in the Report

Partial Index Coverage in the Report

No reference in the Report

Coverage non applicable

71

GRI Principles Table

Section Coverage

1. STRATEGY AND ANALYSIS

1.1 A message from the CEO

1.2 Creating Shared Value at Nestlé

2. ORGANISATIONAL PROFILE

2.1 Nestlé Hellas

2.2 Nestlé in Greece

2.3 The structure of Nestlé in Greece

2.4 The Nestlé facilities in Greece

2.5Nestlé in Greece and the world / The structure of Nestlé in Greece

2.6 The structure of Nestlé in Greece

2.7 The structure of Nestlé in Greece / The Nestlé facilities in Greece

2.8 Scope of the report

2.9 The history of Nestlé in Greece

2.10 Awards received in 2011

3. REPORT PARAMETERS

3.1 About our Sustainability and Creating Shared Value Report



3.4 Communication with Nestlé/ Evaluation form

3.5 About our Sustainability and Creating Shared Value Report/ The content of the Report

3.6 Scope of the Report

3.7About our Sustainability and Creating Shared Value Report/ Scope of the Report

3.8About our Sustainability and Creating Shared Value Report/ Scope of the Report

3.9 The Nestlé Environmental Management System

3.10 ---- ----

3.11 ---- ----

3.12 GRI PRINCIPLES TABLE

3.13 Corporate Responsibility Report Quality Assurance

4. GOVERNANCE, COMMITMENTS AND ENGAGEMENT

4.1 Corporate Governance/ Company organizational structure



4.4Corporate Governance/ Compliance Committee/ Security Committee / Safety Committee

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4.5Renumeration of Managers/ Determination of qualifications and expertise for senior management and senior staff

4.6 Corporate Governance/ Compliance Committee


4.8 Our mission and values/ Nestlé Code of Business Conduct

4.9 Nestlé Corporate Business Principles


4.11Nestlé Corporate Business Principles/ Creating Shared Value at Nestlé

4.12Nestlé Corporate Business Principles/ International Code of Marketing of Breast-Milk Substitutes of the World Health Organization

4.13 Nestlé participation in organizations and business associations

4.14 Mapping of stakeholders




MANAGEMENT APPROACH DISCLOSURES

Section Coverage

ECONOMIC ASPECT

Economic performance

Nestlé Hellas: 2011 Strategy and financial performance

Market presence Nestlé Hellas: 2011 Strategy and financial performance

Indirect economic impacts

Nestlé Hellas: 2011 Strategy and financial performance

ENVIRONMENTAL ASPECT

Materials Environment

Energy Environmental sustainability

Water Environment

Emissions Environmental sustainability

Products and services

Environmental sustainability

Compliance Nestlé Environmental Management System


73

Transport Environmental sustainability

Overall Environment

LABOUR ASPECT

Employment 4th Principle: Human rights in our business activities

Labour/management relations

We care for our people

Occupational health and safety

6th Principle: Safety and health at work

Training and education

Employee training

Diversity and equal opportunity

5th Principle: Leadership and personal responsibility

HUMAN RESOURCES ASPECT

Investment and procurement practices


Non-discrimination 4th Principle: Human rights in our business activities

Freedom of association and collective bargaining


Child labour 4th Principle: Human rights in our business activities

Forced and compulsory labour


Security practices 6th Principle: Safety and health at work

SOCIAL ASPECT

CommunityCreating Shared Value at Nestlé/ Nestlé Corporate Business Principle

Corruption Nestlé Code of Business Conduct

Public policy Nestlé participation in organizations and business associations

Anti-competitive behaviour

Consumer communication

Compliance Creating Shared Value at Nestlé

PRODUCT RESPONSIBILITY ASPECT

Customer health and safety

Nestlé Corporate Business Principle/ 1st Principle: Nutrition, Health and Wellness/ 2nd Principle: Quality assurance and product safety

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Product and service labelling

Nestlé Corporate Business Principle/ 3rd Principle: Consumer communication

Marketing communications

Nestlé Corporate Business Principle/ 3rd Principle: Consumer communication

Customer privacyNestlé Corporate Business Principle/ 3rd Principle: Consumer communication

Compliance Creating Shared Value at Nestlé

GRIPERFORMANCE INDICATOR

Section Coverage

ECONOMIC PERFORMANCE

EC1 Nestlé Hellas: 2011 Strategy and financial performance

EC2 ---

EC3 Nestlé Hellas: 2011 Strategy and financial performance

EC4 ----

EC5 Recruitment process

EC6 Our suppliers

EC7 Our people in 2011

EC8Food donations

Korpi supports Anoihti Agalia and donates medical equipment to the Ippokratio General Hospital of Thessaloniki

ENVIRONMENTAL PERFORMANCE

EN1 Use of materials

EN2 ---

EN3 Energy consumption

EN4 Energy consumption

EN5 Energy management

EN6Energy management/ Consumption of renewable energy sources

EN7 Energy management

EN8 Water management

EN9 ---

EN10 Water management

EN11 --- ---

EN12 --- ---

EN13 --- ---

EN14 --- ---

EN15 --- ---


75

EN16 Management of Greenhouse Gas Emissions


EN18 ---



EN21 Waste Management


EN23 Nestlé Environmental Management System


EN25 ---

EN26 ---


EN28 Nestlé Environmental Management System

EN29 Company fleet

EN30 ---

LABOUR PRACTICES AND DECENT WORK PERFORMANCE

LA1 Our people in 2011/ Recruitment process

LA2 Recruitment process

LA3 Our office environment

LA4 Nestlé Employee Council

LA5 Employee turnover

LA6Employee Safety Committee

Nestlé Employee Council

LA7 Employee Health and Safety

LA8 ---

LA9 ---

LA10 Employee training

LA11 Employee training

LA12Performance evaluation

360 evaluations

LA13 Our people in 2011

LA14 Recruitment process

HUMAN RIGHTS PERFORMANCE

HR1 4th Principle: Human rights in our business activities

HR2 Our suppliers

HR3 Employee training

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HR4 Compliance Committee

HR5 Nestlé Employee Council

HR6 Our suppliers

HR7 Our suppliers

HR8 ---

HR9 No violation of human rights recorded

SOCIAL PERFORMANCE

SO1 ---

SO2 Compliance Committee

SO3 Employee training

SO4 Nestlé Code of Business Conduct/ Compliance Committee

SO5 Nestlé participation in organizations and business associations

SO6 Nestlé Code of Business Conduct

SO7 Fair competition

SO8 Fair competition

PRODUCT RESPONSIBILITY PERFORMANCE

PR1 Nestlé Quality Management System (NQMS)

PR2 Nestlé Quality Management System (NQMS)

PR3Compliance on the label/ The Nestlé Nutritional Compass/ Guideline Daily Amounts (GDA)

PR4 Compliance on the label

PR5The 60/40+ approach

Nestlé Consumer Research Studies

PR6The Nestlé Consumer Communication Principles/ Nestlé Policy on Communication and Marketing to Children

PR7The Nestlé Consumer Communication Principles/ Nestlé Policy on Communication and Marketing to Children

PR8 Consumer privacy

PR9Nestlé Quality Management System (NQMS)/ The Nestlé Consumer Communication Principles/ Nestlé Policy on Communication and Marketing to Children


77

GRI Application Level Table

Report Application C C+ B B+ A A+

ST

AN

DA

RD

DIS

CLO

SU

RE

S

G3 ProfileDisclosures

OU

TPU

T Report on:1.12.1.-2.103.1. - 3.8, 3.10 - 3.124.1. - 4.4., 4.14 - 4.15

RE

PO

RT

EXT

ER

NA

LLY

AS

SU

RE

D

Report on all criteria listed for Level C plus:1.23.9, 3.134.5 - 4.13, 4.16 - 4.17

RE

PO

RT

EXT

ER

NA

LLY

AS

SU

RE

D

Same as requirement for Level B

RE

PO

RT

EXT

ER

NA

LLY

AS

SU

RE

D

G3 ManagementApproach

Disclosures OU

TPU

T

Not Required

Management Ap-proach Disclosures for each Indicator Category

Management Ap-proach Disclosures for each Indicator Category

G3 Performance Indicators & Sec-

tor Supplement Performance

Indicators

OU

TPU

T

Report on a minimum of 10 Performance Indicators, Including at least one from each of: Economic, Social and Enviromental

Report on a minimum of 20 Performance Indicators, at least one from each of: Economic, Enviro-mental, Human rights, Labor, Society, Prod-uct Responsability

Report on each core G3 and Sector Sup-plement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaning the reason for its omission

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11. Evaluation form

By filling out the form below, you are helping us improve our CSR Strategy and Initiatives.

All information to be obtained in the evaluation form will be used only for internal evaluation by our CSR management team.

Which Nestlé stakeholder group do you belong to?

Employee

Society

Local Community

NGO

Consumer

Customer

Media

Other

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter11 / Evaluation form

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What is your opinion about the Contents of our Sustainability and Creating Shared Value Report?

Chapter Excellent Good Average Poor

Nestlé in Greece and the world

Creating Shared Value at Nestlé

Nestlé in the Greek market: Delighting consumers

We care for our people

Environment

Commitment to society

What is your opinion on the methodology used for the development of our Report?

Are there any key areas or topics you would like us to include or elaborate on further in our next Sustainability and Creating Shared Value Report?

Other comments

Personal Data (Optional)

Name:

Company/ Organization:

Tel.:

Email:

Send the completed evaluation form via email to [email protected] or by post to Angeliki Papadopoulou, Corporate Affairs Manager, Nestlé Hellas, 4, Patroklou Str. 151 25 Paradissos Maroussi

Nestlé Hellas Sustainability and CSV Report 2011 / Chapter 11 / Evaluation form