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Climate change is putting coffee-growing areas under pressure. Building on a decade of experience with the Nescafé Plan, Nestlé is accelerating work to help tackle climate change and address social and economic challenges within Nescafé supply chains.

In 2022, Nestlé's largest coffee brand and one of the world's favorite coffees outlined its extensive plan to invest over one billion Swiss francs to help make coffee farming more sustainable: the Nescafé Plan 2030. A central part of this is working with coffee farmers to help them transition to regenerative agriculture.

Regenerative agriculture is an approach to farming that aims to improve soil health and protect water resources and biodiversity. Healthier soils are more resilient to the impacts of climate change and can increase yields, helping improve farmers' incomes. As such, supporting farmers to make this transition can help reduce emissions from coffee farming while contributing to better farmer livelihoods and stronger communities.

Nescafé is committed to supporting farmers who take on the risks and costs associated with the move to regenerative agriculture, with priority for the seven countries where we source 90% of our coffee. Nescafé will provide farmers with training, technical assistance and high-yielding coffee plantlets. In Mexico, Côte d'Ivoire and Indonesia, Nescafé will pilot a financial support scheme to help farmers accelerate the transition to regenerative agriculture.

Purina Pro Plan Veterinary Diets HA Hydrolyzed was the first truly hypoallergenic dry diet for dogs with food allergies. Progressive science has led to Purina Pro Plan Veterinary Diets EL Elemental - our most advanced formula for dogs with food sensitivities to date.

Purina Pro Plan Veterinary Diets EL Elemental is formulated with purified amino acids to support dermatological and gastrointestinal health in dogs with adverse food reactions. It contains low-allergen carbohydrate sources to help minimize the risk of an allergic reaction. It is also highly digestible to promote optimal nutrient absorption and has limited fat to aid digestion for dogs with compromised gastrointestinal tracts. The formula contains omega-3 and omega-6 fatty acids, vitamin A and zinc to maintain and protect the skin barrier, and prebiotic fiber to help nourish the gastrointestinal tract. Great taste ensures adequate nutrition intake.

The science behind Purina therapeutic diets represents a collaboration between Purina nutritionists, researchers and veterinarians. Purina Pro Plan Veterinary Diets EL Elemental serves as another example of using breakthrough science to create life-changing therapeutic nutrition that addresses challenging conditions.

In 2022, Purina Pro Plan Veterinary Diets EL Elemental arrived on US shelves. Additional countries will follow in 2023. This is great news for dogs with food sensitivities and their owners.

Nestlé is committed to helping parents and caregivers get the infant formula they need so their children can thrive. We were pleased to work with the US government to address the formula shortage as part of Operation Fly Formula.

In the spring of 2022, the United States experienced a severe infant formula shortage following a recall of another manufacturer's products. Nestlé teams from around the globe mobilized all resources to help address the crisis through its Nestlé Health Science and Nutrition businesses.

Although a small player in the US infant formula market, Nestlé realized early on this could become a national health crisis for families and took immediate action, even as details of supply chain issues were still unfolding. Nestlé teams in Switzerland, Germany, the Netherlands, Mexico and the United States accelerated production of formulas, including those that serve a critical medical purpose.

During a time when infant formula out-of-stock rates hit as high as 70%, Nestlé was the first partner to participate in Operation Fly Formula. The first two flights in May 2022 flew 500 000 bottle equivalents of Nestlé Health Science's Alfamino Infant and Alfamino Junior and a million bottle equivalents of Gerber Good Start Extensive HA - all for babies with cow's milk protein allergies. This was followed by many more shipments of specialized and non-specialized Nestlé infant formula, including NAN Supreme pro and Gerber Gentle.

Demanding flexitarian consumers want easy ways to include more healthy, plant-based meals in their diets without compromising on taste. Nestlé is at the forefront in responding to this trend, innovating plant-based options that are delicious, nutritious, sustainable and more convenient.

Nestlé continues to use its innovation expertise to develop and improve delicious plant-based food. High-quality, sustainably sourced ingredients contribute to great taste. The increased use of vegetables and legumes creates greater nutritional value.

In 2022, we continued to expand the plant-based options within our Garden Gourmet brand, such as the new chicken alternative, Sensational Crispy Mini Filet. Beyond new innovations, we constantly explore ways to improve the quality of existing popular plant-based products - the Garden Gourmet Sensational Burger is now even more flavorful and juicy.

Our plant-based strategy is not only about creating meat alternatives. The popular Maggi Veggie Masala Noodles has the same iconic taste as the original but now includes nutritious carrots and beans. Plus, Maggi offers recipes to cook delicious plant-based meals from scratch. Plant-based versions of the popular Wagner Piccolinis have now entered more homes, providing vegan and vegetarian options. And the new Thomy Vegan Tartare offers a plant-based sauce option.

Our plant-based innovations are proving that we can offer consumers healthy options with a lower environmental burden that taste great.

In Pakistan, where one out of two children is deficient in iron, Nestlé has brought a breakthrough solution to market with Bunyad Iron+. The affordable dairy-based drink is fortified with a new source of iron that is more suitable for dairy products, as well as three times more absorbed in the body compared to existing available sources.

Access to affordable nutrition is a global challenge affecting many people around the world, especially in emerging countries. Many people suffer from micronutrient deficiencies, particularly children and pregnant women. To help address this challenge, Nestlé is accelerating its efforts to develop more affordable nutrition products that contain essential vitamins and minerals.

The unique and proprietary iron source is based on Ferri-Pro, a technology originally developed by Riddet Institute at Massey University in New Zealand - acquired by Nestlé in January 2019. After acquiring the technology, Nestlé R&D continued to work with Massey University to bring the new source of iron to the market. The result is Iron+.

The Nestlé Dairy teams in Pakistan and Switzerland, supported by the Nestlé R&D Center for Dairy in Konolfingen, Switzerland, successfully launched the innovative Iron+ in the affordable nutrition brand Bunyad in 2022. Two glasses of Bunyad Iron+ offer 60% of daily iron requirements, as well as providing calcium and vitamins A and C.

At Nestlé Waters, protection of water resources in terms of quantity and quality is at the heart of our sustainability strategy. This is crucial both for our operations and for the communities located in the watersheds where we operate. We are unwavering in our commitment and continued to make progress toward our goals in 2022.

For several years now, we have used the Alliance for Water Stewardship (AWS) Standard to structure our understanding and drive actions to support good water stewardship. Created by prominent conservation organizations and experts, adoption of the AWS Standard is helping us strengthen the collection and sharing of data on watersheds, engage with local stakeholders and communities, and analyze shared water challenges to design tailored action plans, including collective initiatives within the watershed.

In 2021, Nestlé Waters expanded its efforts to include a commitment to lead the regeneration of local water cycles, to help create a positive water impact everywhere we operate. More than 100 projects will be implemented by 2025 across 47 sites with that objective.

At the end of 2022, 40 projects have already been identified or implemented. These projects are adjusted to local contexts and bring tailored benefits, including a drip irrigation program in the Pakistani city of Sheikhupura, restoration of water quality in Thailand's Khanom Chin canal and pond renaturation to protect amphibians close to Spain's Viladrau municipality.