Nestle y las Metas de Desarrollo del Milenio Informe 2010

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Nestl and the United Nations Millennium Development Goals 201018

MillenniumDevelopmentGoals 4 and 5

Reduce childmortality/Improve maternalhealth

11 Nestl projects

9 countries

4 continents

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

According to UN gures, every minutea woman dies of complications relatedto pregnancy and childbirth. Almostall of these deaths are in developingcountries. In the same countries, thegures show that a child is 13 timesmore likely to die before its fth birthdaythan a child born in an industrialisedcountry. Most of these deaths wouldbe entirely preventable if people hadaccess to better sanitation, primaryhealthcare and basic infrastructure such

as water, sanitation, and nutritious food.Through our commitment to bring

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

For example, in 2008: We invested CHF 1.98 billion in

research to nd science-basedsolutions to nutrition needs.

Products worth more thanCHF 13.6 billion were reviewedfor taste preference and nutritional

value under our 60/40+ strategy. More than 65% of all our products

sold met or exceeded the NestlNutritional Foundation prole,a system we have developedto evaluate our products againstpublic health recommendationsand consumer science.

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

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

the provision of nutritious food, ratherthan supplementary injections or pills,we are working together with localhealth authorities to help addressissues such as identied, pre-existingdeciencies, by fortifying productsregularly consumed by targetconsumer groups in specic regions.

We are bringing safe, nutritiousand affordable food and beverageproducts to increasing numbers ofconsumers across the developingworld and support a wide variety ofprojects focused on giving people inthese areas, especially women andchildren, a better understanding ofhow to stay healthy.

Below you will nd some examplesof our fortied products in the

developing world. More can be foundat www.community.nestle.com.

Iron-fortied cerealsOur all-family cereals are nutrientdense foods and make a signicantcontribution to the intake of essentialnutrients such as vitamins, mineralsand bre.

Our infant cereals are availablein more than 70 countries andare particularly popular indeveloping countries.

To give our consumers the mostnutritious products, we have optimised


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

regions. Our all-family cereals arenutrient dense foods and make asignicant contribution to the intakeof essential nutrients such as vitamins,minerals and bre.


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

In many developing countries,such cereals may be the only fortiedfood given to an infant at a timewhen the intake of micronutrientscoming from breast milk decreases,especially if the mothers dietis decient.

In addition, as red meat in the dietis limited (or absent) in these countries,infant cereals offer a safe andconvenient way for mothers to ensuretheir children receive the iron theyneed to support physical growth andcognitive development.

To ensure this important foodproduct is readily accessible in low-income regions, infant cereals aresold in single-serve sachets in markets

such as India and Pakistan and aretypically sold through traditionalchannels, such as small local stores.

Nestl has sponsored a numberof studies of infant cereals indeveloping countries, showing theirbenets to child growth. We havealso published information on ironbioavailability that is now cited bymany researchers and is used by theWorld Health Organization (WHO)in their guidelines for the forticationof infant cereals.

The development of our productsis largely driven by our Creating Shared

Value concept. As this is afundamental part of our businessstrategy, we will continue to investin enhancing their quality andnutritional value. In developingcountries, this investment helps toimprove the health and wellbeing ofsome of the worlds poorest people bysupplying products tailored towards

the nutritional needs of specicpopulations. As a result we are helpingto tackle malnutrition in these deprivedareas and assisting millions of peoplein improving the quality and durationof their lives.

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

In Mexico, for example, wheremany children suffer from a lack of ironand zinc, we estimate that more than700000 consumers have boughtNido Rindes Diario brand milk,fortied with iron, zinc and vitamin A.Similarly, more than 2 million

consumers in Brazil and Indonesia havebeen reached by iron-enriched Ideal milk since 2005, helping reduce theprevalence of iron-deciency anaemiain both countries.

By the end of 2009, 17.2 billionservings of fortied milk products readily available in af fordable formatsto local populations were madeavailable to around 11 million peopleacross 60 countries, includingMorocco, Algeria, Tunisia andMauritania, where iron, vitamin Aand iodine deciencies all occurin varying degrees.

In Mexico, where many children sufferfrom iron and zinc deciencies, more than700000 consumers have bought our Nido Rindes Diario brand milk, fortied withiron, zinc and vitamin A.


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MillenniumDevelopmentGoal 7

Ensureenvironmentalsustainability

52 Nestl projects

31 countries

4 continents

For more information visitwww.community.nestle.com/mdg7

Since Nestls operations beganmore than 140 years ago, we haveadopted the highest environmentalstandards in all that we do, and in allour global locations.

Our Corporate Business principlesstate that: We will not sacrice long-term development for short-term gain.This view guides all of our decisionmaking to ensure that we alwaysoperate in the most responsible wayand that we continue to enjoy successlong into the future.

Our Creating Shared Value concept,where we look to create economic andsocial value simultaneously, can onlysucceed if we are also environmentallysustainable. Our goal is always to meetthe current needs of our business,shareholders and stakeholders, withoutcompromising the ability of futuregenerations to meet theirs.

In todays consumer society thisis no small challenge. A combinationof population growth and increasingafuence is leading to consumptionpatterns that exceed the planets abilityto replenish its resources.

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

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

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

To monitor and report on all aspectsof our performance, we have acomprehensive range of key indicatorsin place. More than twenty of thesemeasures are focused on ourenvironmental performance andcover aspects such as materials usageor reduction, energy consumption,greenhouse gas emissions andreductions, packaging reduction,governance and compliance, andwater withdrawn, saved or returned

to the environment. These measuresunderline the importance we placeon reducing our environmentalfootprint, and demonstrate ourongoing commitment to improvingthe sustainability of our operations.

Below are just a few examplesof the ways we strive to improveour environmental per formance. You can nd more at www.community.nestle.com.

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

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


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


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the worlds supply ofteninefciently. This is why our trainingprogrammes for farmers includeeffective water management.

In Nicaragua, we have taken thisa step further and are actively workingto develop a low-cost drip irrigationsystem to be used in plantationswhere we source coffee as part of apublic-private partnership betweenNestl, ECOM, and two US-basedNGOs, Rainforest Alliance andInternational DevelopmentEnterprises IDE, covering 1500 coffeeproducers.

Through the sustainable use andcontrol of water, we can accelerateplant growth and achieve betterquality crops, even during water-stress periods. In 2006, a pilotprogramme with low cost and lowpressure systems was introducedin 11 plantations in Nicaragua.The eld results that same year

showed an increase in productionof 40 to 60%, as well as rapid growthin young plants. New plants that wereirrigated produced yield in two years,in comparison to three years forthose plants that were not. The sameresults were conrmed in 2007and 2008.

In practice, coffee plants aregenerally not irrigated. Recentexperience shows that whensupplementary irrigation is usedduring water-stress periodswhere soil humidity is low (especiallyduring owering periods), an increase

in productivity, plant growth andquality is achieved.

The purpose of this project isto introduce, implement and monitorlow-cost drip irrigation systemsand integrate these as a part ofa sustainable, economic, social,and environmentally-certied coffeevalue chain.

This initiative will aid producersin ten coffee zones in Nicaragua,as well as those in Honduras,El Salvador, and Guatemala.

Shuangcheng milk district, ChinaNestls milk operations inShuangcheng (discussed underMDG 1) have provided new income-earning opportunities for local milkfarmers and have identiedenvironmental problems to address.With the increasing number of cowsin Shuangcheng, adequate manurestorage became important to avoidcontamination of ground watersupplies. Because most manurestorage systems require sizeableinvestments with no immediatenancial returns, local farmershad little incentive to improve theirmanagement of animal waste.Nestl took action by nancing thedistribution of biogas digesters to helpfarmers store their manure in secure,

covered containers and collect themanures methane gas as energy forhome cooking, lighting, and heating.

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

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

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


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

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

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

With the support of theInternational Federation of RedCross and Red Crescent (IFRC)

Societies, we have invested in theimplementation of a water, sanitation,hygiene education and wastemanagement project in 25 schoolsin the cocoa belt of the Gagnoaregion, Cte dIvoire, to increaseaccess to clean water and hygieneknowledge among the population.Over the past three years, ve deepbore water pumps have beeninstalled, 25 school latrinesrehabilitated and training has beenprovided to Ivorian Red Crossbranches in hygiene education.

We forged another collaborativepartnership with the IFRC inMozambique by donating funds forthe drilling of deep wells and theinstallation of 22 community water

supplies to provide clean and safewater for some 40000 people.The funds were also used to traincommunities in pump maintenanceand to improve overall hygienepractices. With additional supportfrom the British Red Cross and theNorwegian Red Cross, theInternational Federation of Red Crossaims to install a total of 39 similarwater facilities in the province ofNampula. The success of the waterfacilities initially installed with oursupport has also inspired theEuropean Union to join forces and

expand the programme to otherprovinces in Northern Mozambique.

In 2008, we partnered with theLutheran World Federation (LWF)and Inter-Faith Action for Peace inAfrica (IFAPA) to provide nancialand technical support to supply cleanwater to rural communities in Kirehe,eastern Rwanda. This project has

positively impacted an estimated22000 people in the area throughimproved health, hygiene andeconomic output.

Nestl WatersOur bottled waters business isa good example of how we arebuilding environmental stewardshipinto every stage of ourmanufacturing processes.

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

NWNA has also successfullyreduced the amount of additionalwater used, i.e. all the waterrequired that does not go into the

bottles, by 30% over four years.This is the result of multipleinitiatives and the sharing of bestpractices among our hundredsof factories worldwide.

In 2009, Nestl factories needed0.68 l of additional water for everylitre they bottled, though some haveachieved an even lower water useratio. Packaging is essential for foodsafety and freshness, and enablesus to give consumers importantnutritional information. However,to reduce our environmental footprintwe are making considerable

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


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investments in limiting the impactof packaging, led by our ProductTechnology Centre in Vit tel, which hasa dedicated laboratory conductingpackaging research and tests.

As a result of our continuousefforts, over the last four years, NestlWaters has made some importantimprovements worldwide. We have

reduced the quantity of PET resinneeded to manufacture our bottles bymore than 20% and have developednew bottle shapes. These save morethan 89 million kilogrammes of resinand help to avoid more than 356billion tonnes of CO 2eq emissionsover two years.

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

NWNA aims to increase recyclingrates for PET bottles in the US from25% to 60% by 2018. To do this it is

working with partner organisation,GreenOps, to re-educate consumers tosee plastic as a valuable resource andmotivate them to recycle more of theirwaste by using recycling stations anda system of rewards. The innovativeRe-source bottle and campaignsurrounding the product have earnedit silver Cradle-to-Cradle certication.

Our Creating Shared Value conceptis about ensuring that we continueto run a protable and responsiblebusiness in the long-term. Therefore,the protection of the environmentis of prime importance to us. We have

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

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

can have an adverse affect on theplanets natural resources.

We also go beyond our ownorganisation and value chain, usingour position as one of the worldslargest and most respected nutritioncompanies to raise awareness of keyissues such as water scarcity amongkey industry and governmental

groups, to actively use our knowledgand experience to help furtherglobal learning, and to educateend-consumers in the importanceof practices such as recycling andwater conservation.

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


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MillenniumDevelopmentGoal 8

Develop a globalpartnershipfor development

128 Nestl projects

56 countries

5 continents

For more information visitwww.community.nestle.com/mdg8

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

One of our key collaborators is theInternational Federation of Red Crossand Red Crescent (IFRC) Societies,as well the country ofces of the RedCross, through whom we provide ruralcommunities with access to cleanwater infrastructure.

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

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

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

water, nutrition and rural developmentcreates shared value for all.

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

Board, an independent global bodycomprised of internationally recognisedexperts in corporate strategy, nutrition,water and rural development.

The rst Nestl Prize in CreatingShared Value of CHF 500000 wasawarded in May 2010 to InternationalDevelopment Enterprises (IDE)Cambodia for a project entitledFarm Business Advisors: Scaling upprivate-sector delivery of agriculturalsupport services in Cambodia. Startedin 2005, this non-prot organisationhas developed a micro-franchise modelto deliver high-quality agricultural


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

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


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

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

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

Eighty-ve percent of Cambodias14 million people and ninety percentof its poor live in rural areas anddepend primarily on agriculture fortheir livelihood. Cambodian farmerscan improve their standard of livingby growing and selling vegetables.However, many cannot exploit this

opportunity because they lack thetechnical know-how, quality rawmaterials, farming equipment, credit,or market information.

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

nutrition with more diverse food. FBAsthen earn an additional income fromselling their products and services.

The CSV Prize of CHF 500 000,committed by Nestl to IDE Cambodia,will enable the organisation to bringthis innovative approach to scale bytraining at least 36 additional FBAs andwill have a direct and tangible impacton the lives of 20000 people in morethan 4000 rural households. The nextstep for IDE will be to develop thefranchise operations into a privatesocial enterprise to create a self-sustaining entity that will continue toserve small farmers without relying on

continued donor support.What makes the Nestl prize

unique is this nancial commitmentover a three-year period to ensurelong-term success and self-sufciency.In addition, the winner will havethe opportunity to share ideas andrecommendations with, as well asreceive feedback from, world-leadingexperts in the area of ruraldevelopment who are par t of the NestlCreating Shared Value Advisory Board.

For more information about theNestl Prize in Creating Shared Value,visit www.nestle.com/CSV/CSVPrize.


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June 2010, Nestl S.A., Public Affairs

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

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

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

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

IllustrationSimon Pemberton/Heart

ProductionAltavia Swiss

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

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


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Nestle y las Metas de Desarrollo del Milenio Informe 2010

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