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Nestlé Canada

Creating Shared Value:Our PurposeIn Action

2021

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From Our President & CEOA M E S S A G E

At Nestlé Canada, our people are at the heart of everything we do, and when we work together, amazing things can happen. This belief moves us everyday, which will ultimately drive our business in 2021 and for years to come.

I strongly believe that it is the people and culture that make a company successful. While COVID-19 has impacted our lives and the way we work, our team has proven that their tenacity, dedication, and passion is second to none as they have risen to define new benchmarks for sustainable business practices, innovation, and community investment.

Over the last eighteen months, we have stepped up to support our communities and partners like Kids Help Phone and Food BanksCanada, donating more than $7 million of food and beverage products; truly exemplifying how business can be, and should be, a force for good.

As the world’s largest producer of food and beverage, our vision is a future where none of our products end up in nature, and where the products that Canadians know and love, contribute to a healthy future for the generations to come. With our global footprint and vast supply chains, we understand the severity of climate change and we have made significant commitments and investments in climate initiatives to reduce our carbon footprint.

The culture at Nestlé Canada is strong and healthy, truly creating a safe place where people can thrive as their authentic selves. We have a proud and longstanding history in Canada and understand that we have a powerful role to play in celebrating and championing the diversity of families from coast-to-coast. I am proud not only of the diversity we each bring, but also of our continued focus on doing more to foster open, candid discussions and lead through change.

I am thrilled to share our Creating Shared Value 2020-2021 snapshot that shares our progress and stories of how we bring our Purpose to life, making the greatest impact on our people, communities and our planet.

Nestlé. Unlocking the power of food to enhance quality of life for everyone, today and for generations to come.

John Carmichael

President & CEONestlé Canada

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Contents2

President and CEO Message

3Table of Contents

4About

Us

6For Individuals and Families

14For our

Communities

21For ourPlanet

29The Road

Ahead

5Commitments &

Progress

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About UsFor more than 155 years, Nestlé has been a household name in kitchens and pantries across the country and is the largest consumer packaged goods company in Canada.

Part of our mission is to enhance quality of life and contribute to a healthier future – for individuals & families, communities and the planet. Here are just some of our accomplishments:

3,700+Nestlé Canada employees

$483MSpent with Canadian

suppliers in 2020

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Offices and warehouses across

Canada

$45MWorth of dairy purchased

from local Canadian farmers in 2020

2,500+

Canadian youth that were helped through Nestlé's

YOUth Initiative in 2020

35+

Over 35 brands across 8 key business divisions in

Canada

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For Individuals and Families For our Communities

Our 2030 ambition is to help 50 million children lead healthier lives.

Providing healthier choices

Inspiring children to lead healthier lives

Advocating for more plant-based foods

Investing in youth

Championing diversity, equity

and inclusion

Supporting thriving

communities

PackagingGreenhouse

gas reduction Sourcing

Our 2030 ambition is to help 10 million young people worldwide access economic opportunities.

Our 2030 ambition is to strive for zero environmental impact on operations.

Eliminate artificial colours and reduce artificial flavours.

Simplify ingredient lists and remove artificial ingredients.

Provide access to healthy food for children in need acrossCanada during the summer months.

Teach kids how to cook, eat and explore healthy food, leading to positive future habits.

Bring more plant-based products to market.

Increase healthy snack product offerings.

Support youth with workplace preparation.

Offer internships and job opportunities to youth candidates.

Be a responsible leader in creating a more inclusive workplace.

Participate in/host events and celebrations related to diversity, equity and inclusion.

Partner with organizations to further support community action.

Enable volunteer opportunities for employees through Nestlé Cares.

Partner with organizations to support at-risk communities across Canada.

Support COVID-19 relief efforts.

Develop functional, safe and environmentally sustainable packaging.

Ensure 100% of packaging is recyclable or reusable by 2025.

Reduce use of “virgin” (newly made) plastic by one-third by 2025.

100% renewable electricity at all our sites by 2025.

Cut our emissions by 20% by 2025, by 2030 reduce emissions by 50%, and by 2050 we will be net zero.

100% certified sustainable cocoa by 2025.

Source 20% of key ingredients through regenerative agricultural methods by 2025.

100% responsibly sourced coffee by 2022.

Use more renewable thermal energy in our manufacturing.

Nestlé globally is focused on commitments across these three Pillars:

For the Planet

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For Individuals and Families

Inspired by our founder, Henri Nestlé, and with nutrition at our core, we work hard to offer food and beverages that enable healthier and happier lives.

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Goal:Help 50 million children globally lead healthier lives by 2030.

In this section:8 Simpler Ingredients10 Nestlé for Healthier Kids12 Food For the Future

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Individuals and Families C A N A D I A N I M P A C T H I G H L I G H T S

99% of our portfolio

contains no artificial colours and many

products also contain no artificial flavours.

In partnership with Food Banks Canada, in 2020 the

After the Bell Program delivered more than

130,000 food packs to over 150 communities across

the country.

Engaging children in cooking By providing nutrition education

through after-school and community-based programs

and sharing everyday tips and healthy recipes for parents.

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Individuals and Families: Simple Ingredients G O A L : S I M P L I F Y I N G O U R I N G R E D I E N T L I S T S A N D R E M O V I N G A R T I F I C I A L C O L O U R S

Tastier, Better-For-You Choices

Food and good nutrition are fundamental to our health. What we eat brings us well-being and is part of our cultural identity.

We are working hard to simplify our ingredients lists, removing artificial ingredients and adding positive nutrients, where possible. For example, recently our SMARTIES confectionery products replaced artificial colours with natural ingredients from foods that provide colour properties, such as sweet potato spirulina, turmeric and beetroot.

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Purina has helped dogs and cats live longer, healthier lives by offering scientifically based nutritional innovations and advancements with leading products such as Purina ONE, Pro Plan, Fancy Feast and Tidy Cats.

Our passion for pets goes beyond pushing pet nutrition forward, and into forging partnerships in the pet welfare world and raising awareness of what pets truly need.

Individuals and Families: Simple Ingredients G O A L : S I M P L I F Y I N G O U R I N G R E D I E N T L I S T S A N D R E M O V I N G A R T I F I C I A L C O L O U R S

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Nestlé for Healthier Kids

Individuals and Families: Nestlé for Healthier KidsG O A L : T O H E L P 5 0 M I L L I O N C H I L D R E N G L O B A L L Y L E A D H E A L T H I E R L I V E S B Y 2 0 3 0

In May 2018, Nestlé launched a global flagship initiative, Nestlé forto unify our efforts around the world to support parents and caregivers on their journey to raise healthier kids.

In Canada, over 300,000 children struggle to get enough food each month. This can have long term implications for children’s development, learning and growth.

During summer months, the After the Bell Program provides healthy meals and snacks for those children across Canada who would typically access school-centered support programs.

Our goal for 2021 is to increase the distribution to a total of 150,000 food packs delivered to communities across Canada to keep kids from going hungry.

After the Bell Program

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Food Explorers Cooking Club

Individuals and Families: Nestlé for Healthier KidsG O A L : T O H E L P 5 0 M I L L I O N C H I L D R E N G L O B A L L Y L E A D H E A L T H I E R L I V E S B Y 2 0 3 0

Designed for children aged 6-8 years who access food bank services, this Foodbanks Canada program combines nutritional education and a hands-on cooking initiative to teach kids how to cook, eat and explore a variety of healthy foods.

The curriculum includes seven lesson plans that incorporate food and nutrition learning, as well as hands-on preparation of healthy recipes. A portion of Nestlé’s program investment will be used to digitize the content to enable families to continue with the program at home.

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Individuals and Families: Food for the FutureG O A L : I N C R E A S E V E G E T A B L E S A N D F I B R E - R I C H G R A I N S I N O U R F O O D S A N D B E V E R A G E S

What we eat matters. Not only for our personal well-being, but also for the health of our planet.

We are committed to promoting sustainable, healthy diets, which include the use of local ingredients and the addition of more plant-based products.

Adding More Plants:Vegetables, Fibre and Whole Grains

Over the past year, we have launched several plant-based options in some of our most

beloved categories.

Our goal is to offer delicious alternatives for those trying to reduce or restrict animal-based

ingredients.

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Individuals and Families: Food for the FutureG O A L : I N C R E A S E V E G E T A B L E S A N D F I B E R - R I C H G R A I N S I N O U R F O O D S A N D B E V E R A G E S

GERBER's organic non-GMO cereal, purees and snacks, including new flavours like Fig Berry and Cranberry Orangehelp parents feel confident about what their little one is eating.

International Chef’s Day is an annual event and partnership between Nestlé Professional and Worldchefs that promotes healthy eating to children and provides nutritious recipe ideas to chefs and parents around the world.

The theme for 2020 was Healthy Food for the Future and provided an opportunity for us to share healthy, plant-based recipes with two Toronto-based family organizations.

International Chef’s DayGerber Organics

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For our Communities

With more than 3,700 employees across Canada, we have the power to enhance quality of life for the communities in which we live, work and play.

Goal:Help develop thriving, resilient and inclusive communities.

In this section:16 Global YOUth Initiative18 Diversity, Equity & Inclusion20 Nestlé Cares

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Since 2015, We've trainedover 12,000 young

people and hired over 3,200 young people under 30

Over the last 12 months, we

have supported over 2,500 youth through readiness for

work activities and digital events. This year, we will hire

over 60 interns.

Nestlé Needs YOUth The Diversity, Equity & Inclusion working

group launched at Nestlé

Canada is now made up of

more than 80 employees.

We have provided more than

$7M in product and monetary donations to

communities across Canada in 2020.

COVID-19 Response

For our CommunitiesC A N A D I A N I M P A C T H I G H L I G H T S

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For our Communities: Global YOUth InitiativeG O A L : H E L P I N G 1 0 M I L L I O N Y O U T H W O R L D W I D E A C C E S S E C O N O M I C O P P O R T U N I T I E S

“As a first year Finance Associate in a 3-year rotational program, I have the valuable opportunity to start my career where Nestlé's ice cream business begins - the London Factory.

I am grateful for the motivating environment and the strong leadership that is guiding my experience.”

- Evadne Sanussi, Finance Associate

The Nestlé Needs YOUth Global Youth Initiative aims to help 10 million young people worldwide access economic opportunities by 2030.

Globally, 10 million young people have been supported by the Global Alliance for YOUth that Nestlé founded in 2014.

Nestlé Youth Initiative

Around the world, more than 55 million people aged 15 to 24 are unemployed. In Canada, the youth unemployment rate averages at 14% and the COVID-19 pandemic has deepened the situation further.

Get Hired Program

By providing job opportunities to our youth through the Get Hired Program, we help equip them with the skills they need to thrive in the workplaces of today and tomorrow.

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We have partnered with CEE Centre for Young Black Professionals to financially support their Kitchen Masters Program and have introduced Nestlé Professional’s Young Culinary Talents Program (YOCUTA) to support black youth in gaining culinary skills to prepare them for the workforce.

Advancing Opportunities Through Partnerships

For our Communities: Global YOUth Initiative

We have scaled up online training to ensure continuity of

our internship program and transformed the program into

a digital-first experience.

This year we will hire over 60 interns.

Entrepreneurship

G O A L : H E L P I N G 1 0 M I L L I O N Y O U T H W O R L D W I D E A C C E S S E C O N O M I C O P P O R T U N I T I E S

We have collaborated with AIESEC Canada, a global youth leadership organization to help bridge the gap between industry leaders and youth. Together, we will virtually deliver the Spark Case Competition to nurture business talent and to help young leaders kick start and grow their business.

Pathways to Employment

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Diversity, equity and inclusion have always been key areas of importance, but in 2020, a new employee-led grouppaved the way for open, candid discussions and challenging the status quo. The DE&I Group commits to leading change across five key streams, including Mental Health & Wellness, Race & Ethnicity, Gender, Accessibility and LGBTQ+.

Diversity, Equity and Inclusion

Our employees’ mental health has always been a key priority and never has it been more important to share resources for those in need than now.

Employees are encouraged to access support and resources offered via Morneau Sheppell and Kids Help Phone, an organization of which Nestlé Canada is a founding sponsor.

Mental Health and Wellness

For our Communities: Diversity, Equity and Inclusion

Our greatest strength is our diversity and

inclusiveness.

At Nestlé, that means ensuring that all employees feel respected and valued,

every single day.

G O A L : B E A R E S P O N S I B L E L E A D E R I N C R E A T I N G A M O R E I N C L U S I V E W O R K P L A C E

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In January 2021, Nestlé was recognized in the Bloomberg Gender Equality Index (GEI) for transparency in gender reporting and advancing women's equality in the workplace.

We continue to increase the proportion of women in top senior executive positions and make progress on gender balance, with women representing 50.1% of the Nestlé Canada workforce and 52.9% of management positions.

Gender

For our Communities: Diversity, Equity and InclusionG O A L : B E A R E S P O N S I B L E L E A D E R I N C R E A T I N G A M O R E I N C L U S I V E W O R K P L A C E

As a global priority, Nestlé Canada

joins millions of people around the world to celebrate

Pride Month in June.

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For our Communities: Nestlé CaresG O A L : E N A B L E V O L U N T E E R O P P O R T U N I T I E S T H R O U G H N E S T L É C A R E S

Supporting thriving communities starts in our own neighbourhoods and we are passionate to do more in the

communities where we live and work.

Our strategic focus areas for Nestlé Cares include access to healthy food, community well-being and planetary health.

In 2021, Nestlé Canada will participate in a Global

program to educate and build awareness among employees on food waste and recycling

and invite them to participate in a number of activations in

honour of World Food Day on October 16.

*All group images on this page were taken pre-pandemic

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For The Planet

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Goal:Providing climate leadership.

As the world's largest food and beverage company, we are committed to protecting the planet and our aim is to shape sustainable consumption and steward resources for future generations.

In this section:23 Tackling Plastic Pollution25 Carbon Neutrality & our Brands26 Greenhouse Gas Pollution27 Ensuring a Transparent and

Sustainable Food Chain

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Currently, 87% of our

packaging is recyclable or reusable.

In 2020, we lowered our

food waste at our

manufacturing facilities by 9% compared to 2019.

We have reduced our GHG rate by 33%,

saving approximately 6,100 tonnes of CO2

emissions since 2010.

For the PlanetC A N A D I A N I M P A C T H I G H L I G H T S

Six of our leading brands in Canada have committed to

achieving carbon neutrality by 2022 and

2025.

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Looking ahead to 2025, we aim to ensure 100% of our packaging is recyclable or reusable.

By the end of 2021, 90% of our packaging will have achieved this goal.

For our Planet: Tackling Plastic PollutionG O A L : E N S U R E 1 0 0 % O F O U R P A C K A G I N G I S R E U S A B L E O R R E C Y C L A B L E B Y 2 0 2 5

Reduce packaging and virgin plastic use:Eliminate unnecessary packaging and hard-to-recycle materials by one-third by 2025.

Pioneer Alternative Materials:Identify opportunities to develop better packaging materials.

Shape a waste-free future:Work to collect and recycle as much plastic as we use in our products under a ‘one tonne in, one tonne out’ principle.

Drive new behaviour:Support community engagement programs for lasting and impactful change, leading through our brands.

Scale reusable and refillable systems:Invest in alternative delivery systems.

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In Ontario, Häagen-Dazs has partnered with Loop, a global reuse platform, aimed at eliminating waste.

By visiting loopstore.ca, shoppers can choose from a range of products, including Häagen-Dazs - the first and only ice cream brand available in new special reusable packaging!

Häagen-Dazs Reusable Packaging

We are a founding partner of the landmark Canada Plastics Pact, which connects over 40 diverse organizations from across Canada’s plastics value chain. From government and industry stakeholders to nongovernmental organizations, we’ve come together to rethink the way that we design, use and reuse plastics, as we transition to a more circular economy by 2025.

For our Planet: Tackling Plastic PollutionG O A L : E N S U R E 1 0 0 % O F O U R P A C K A G I N G I S R E U S A B L E O R R E C Y C L A B L E B Y 2 0 2 5

Founding Partner of the Canada Plastics Pact

Recycle Gerber® Baby Food Packaging in Partnership with Terracyle®

Parents are invited to sign up at:

https://www.terracycle.com/en-

CA/brigades/gerber-en-ca

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For our Planet: Carbon Neutrality and our BrandsG O A L : A C H I E V E N E T - Z E R O G R E E N H O U S E G A S E M I S S I O N S B Y 2 0 5 0 A N D A 5 0 % R E D U C T I O N B Y 2 0 3 0

Nespresso: Carbon Neutral Since 2017

Nespresso has committed to delivering 100%

carbon-neutral coffee for at-home and professional

customers by 2022.Several of our popular brands have made

commitments to achieve carbon neutrality by 2022 and 2025 by investing in a mix of

renewable energy, packaging, operational improvement and high-quality offset projects.

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For our Planet: Greenhouse Gas ReductionG O A L : A C H I E V E N E T - Z E R O G R E E N H O U S E G A S E M I S S I O N S B Y 2 0 5 0 A N D A 5 0 % R E D U C T I O N B Y 2 0 3 0

Reduced CO2 in our logistics by 22% over the last 6 years, exceeding our goal by 10%

Transitioned 100%of our

manufacturing and distribution sites to

be landfill-free

Reduced water usage across our manufacturing facilities by 26% since 2010, saving about 124million litres of water -equivalent to nearly 50 Olympic-sized swimming pools!

Shipped 96% of customer orders to

Western Canada on rail intermodal.

Rail can be 2-3 times more efficient

than road transportation which

is why we will continue to

move shipments from Road to Rail

at every opportunity within

North America.

In 2020, we reduced our food waste in our

operations by approximately 9%.

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For our Planet: Responsible Sourcing

The Nestlé Cocoa Plan is active in the main cocoa-producing countries of Côte d’Ivoire and Ghana, which currently supplies 100% of our cocoa needs in Canada.

The Plan operates across three key pillars:

Better Farming Better Lives Better Cocoa

Responsible Cocoa Sourcing: The Nestlé Cocoa Plan

In 2020, Nescafé exceeded its responsible sourcing goal for that year by reaching 75%, by taking an integrated approach supporting positive environmental and economic impacts for farmers.

We are scaling up our ambitions and by 2022, Nescafé Canada aims to be 100% responsibly sourced.

Responsible Coffee Sourcing:The Nescafé Plan

G O A L : E N S U R I N G A T R A N S P A R E N T A N D S U S T A I N A B L E F O O D C H A I N

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The cane that we use for sugar production in Canada mainly comes from

Brazil which is then 100% processed at Canadian refineries. We work with

suppliers who ensure that the sugar is sourced from mills where its

operations, farms and plantations comply with local laws and regulations

and our Responsible Sourcing Guidelines (RSG).

Sugar Production

Whenever we can source locally, we do!

In addition to locally sourcing eggs, 100% of

our dairy used for our ice cream and confectionery products is sourced from

Canadian farms,representing over

$45 million in local dairy purchases in 2020 alone.

Commitment to Cage-Free Eggs

We are committed to improving farm

animal welfare standards and

working closely with local farms to

ensure the production system changes

required in their egg supply will offer

their hens a good quality of life in a rich

and stimulating environment.

G O A L : E N S U R I N G A T R A N S P A R E N T A N D S U S T A I N A B L E F O O D C H A I N

For our Planet: Responsible Sourcing

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The Road Ahead

To stay up to date on Nestlé Canada’s initiatives, please visit: corporate.Nestlé.ca

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