Nestlé has maintained its strong standing in the FTSE4Good index series (pdf, 500Kb). The index measures the performance of companies demonstrating strong Environmental, Social, and Governance (ESG) practices.
Companies are assessed on over 300 indicators covering themes such as health & safety, labor standards, human rights, water use, biodiversity, climate change, tax transparency, and anti-corruption.
Collectively all indicators produce a total ESG score ranging between 0 and 5. Nestlé's overall 2020 ESG rating was 4.9, which was considerably above the averages for the Food Products subsector (2.2) and Consumer Goods Industry (2.2).
Rob Cameron, Global Head of Public Affairs, Nestlé S.A., said: "We are pleased with this recognition of our efforts to report transparently against our commitments and action supporting the Sustainable Development Goals. We will continue to improve disclosures and transparency on Environment, Social and Governance matters to support investment decisions in responsible companies."
The FTSE4Good Index Series also helps investors integrate ESG factors into their investment decisions.
Nestlé was included in FTSEGood in 2011. Since then, Nestlé's yearly assessment confirmed its inclusion to the index, meeting the highest standards.
Nestlé Australia has announced an AUD 90 million (CHF 60 million) upgrade to its Blayney site, which manufactures Nestlé Purina PetCare pet food. The announcement brings total investment to the site to almost AUD 200 million (CHF 131 million) in the past 10 years.
The upgrade will extend existing production areas and include installation of new equipment, allowing for increased production capacity and export growth.
The Nestlé factory in Blayney began operations in 1989, and now features world-class facilities which manufacture brands such as Proplan, Supercoat, Felix, Fancy Feast and Purina ONE.
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Organic growth reached 2.8%, with real internal growth (RIG) of 2.6% and pricing of 0.2%. Growth was supported by sustained momentum in the Americas, Purina PetCare and Nestlé Health Science.
The underlying trading operating profit (UTOP) margin reached 17.4%, up 30 basis points. The trading operating profit (TOP) margin increased by 140 basis points to 16.9%.
Mark Schneider, Nestlé CEO, commented:"COVID-19 continues to impact people around the world. We stand with all those affected and are committed to helping where we can. I would like to thank every member of the Nestlé team for their dedication and hard work in the face of incredible challenges. Our priorities remain the same; keeping our people safe, assuring continued supply of essential food and beverages to consumers and caring for our communities and business partners through financial and in-kind support.
Nestlé has remained resilient in a rapidly changing environment, delivering solid organic growth and improved margins in the first half. These results demonstrate the agility of our business and the strength of our diversified portfolio across geographies, product categories and channels. With consumer behavior evolving faster than ever, we are adapting to this new reality by strengthening our innovation, leveraging our digital capabilities and executing with speed. Our engaged teams and their commitment to deliver business results while driving progress against our societal and environmental commitments make us a stronger company every day."
Read the full press release.
Follow the investor call audio webcast hosted by Mark Schneider, Nestlé Chief Executive Officer, and François-Xavier Roger, Nestlé Chief Financial Officer live at 14:00 CEST.
Nestlé Purina has today announced a further investment in the United States. The company will expand its operations in Cumberland County, Pennsylvania, hiring 94 additional employees and adding new processing and packaging lines to its Mechanicsburg location.
Purina has committed to investing more than USD 167 million into the project within the next three years. Purina, which currently employs 320 people in Mechanicsburg, also has pet food operations in Allentown and employs nearly 800 people in total in Pennsylvania.
"Pet owners have trusted Purina for more than 90 years, and demand for our pet food is strong and continues to grow," said John Bear, Vice President of Manufacturing, Purina. "Purina is proud to make high-quality foods for dogs and cats at our Mechanicsburg factory with a continued commitment to safety and environmental sustainability. This expansion reflects an investment in our local operations, and we look forward to continuing to deliver innovative and highly nutritious foods for pets."
Purina is the largest dry dog and cat food maker in the United States. The Mechanicsburg factory produces many of the company's flagship brands, including Purina ONE, Purina Pro Plan, Fancy Feast, Dog Chow, and Cat Chow.
Read the full press release
Purina media contact: Michael Zerman
Email: [email protected]
Nestlé is today launching a new range of its YES! snack bars, with each bar containing 10 grams of plant protein from a delicious natural combination of nuts and peas.
Recent Nestlé research has shown that most people buying protein bars are now looking for more natural protein sources with no additives. Plant protein is one of the most preferred options to fuel an active lifestyle and get the most out of their busy day.
The new YES! Bar packs in 10 grams of plant protein from peas and nuts and gives consumers power on the go. Like other YES! bars, the new protein bars are made of wholesome ingredients, are high in fiber, use no artificial colors or preservatives, are gluten free and suitable for vegetarians.
Unlike most other protein bars, the new YES! protein bar is tapping into an emerging trend towards pea protein. This opens a new choice to those consumers looking for more innovative plant protein alternatives. And the new bars achieve this without any compromise between 'healthy' and 'tasty'.
The new bar comes in two delicious flavors: Almond, Peanut and Double Dark Chocolate; and Cashew, Blueberry and Dark Chocolate. Nuts are the number one ingredient, and the bars are drizzled with real dark chocolate made with sustainable cocoa certified by the Rainforest Alliance.
The bars will be available from September 2020 in European countries including the UK, Germany, Netherlands, and the Czech Republic.
As with the existing YES! range, the bars are carefully wrapped in recyclable paper. The paper is from sustainable sources, certified by the Forest Stewardship Council (FSC) or the Program for the Endorsement of Forest Certification.
Alexander von Maillot, Global Head of Confectionery at Nestlé, said: "We know that today people are living healthy active lifestyles and are looking for the right fuel that is good for them and for the environment. YES! plant protein bars use the power of nature to deliver a great wholesome product on the go and are wrapped in paper packaging that is easy to recycle and avoids plastic waste."
Louise Barrett, Head of the Nestlé Confectionery Product Technology Centre in York, said: "Pea protein is a key focus area for us because it has a high protein content and is one of the most environmentally friendly sources of plant protein. When developing these new YES! bars, we chose pea and nut protein to really stand out from many of the other bars on the market. At the same time, we made sure that taste was our top priority, and these bars taste really amazing!"
At a time when travel is restricted due to COVID-19, Nestlé is expanding the use of augmented reality technology to provide remote support to its production and R&D sites and to connect with suppliers.
Experts across the company and external providers are using remote assistance tools to connect with people at factories and other facilities around the globe. This has raised efficiency across operations and allowed experts to support multiple projects at the same time.
Using tools such as remote desktop, smart glasses, 360 degree cameras and 3D software, specialists can advise on complex tasks without needing to travel to the site.
The technology has been used in projects such as the set-up or redesign of factory lines, vital maintenance work and checking equipment with suppliers.
David Findlay, Global Head of Manufacturing at Nestlé, said: "Protecting our people is a top priority for Nestlé, something that has been clearly demonstrated time and time again during the COVID-19 crisis. The remote support approach isn't just a response to COVID-19 though. Going forward, remote assistance will become a new way of working. It will increase speed and efficiency in facilities and reduce travel to Nestlé sites, helping us reduce CO2 emissions across our operations. I am extremely proud that our teams have been able to expand our use of remote assistance technology so quickly to ensure we were able to continue to provide technical support. That has kept our factories running smoothly and delivered new investment projects on time."
There are many examples of remote support across Nestlé's factories and R&D facilities. For example, R&D teams in Switzerland helped to remotely renew existing and install new production lines and technologies for a dairy ready-to-drink (RTD) factory in Navanakorn, Thailand. The factory was completed ahead of schedule.
They also supported the installation of a new production line for infant cereals in Shuangcheng, China. Additionally, R&D expert teams in the UK worked with suppliers to remotely redesign and successfully test new confectionery molds for KitKat.
Other examples include maintenance work at factories in Columbia and Ecuador or setting up a new pet food line in the United States.
Thomas Hauser, Head of Nestlé Product & Technology Development, said: "To ensure business continuity, we accelerated the use of remote assistance and augmented reality technologies across our global R&D organization. These innovative technologies enabled our experts to provide support to our factories worldwide for critical activities such as the new set-up of production lines, as well as new equipment start-up, helping us to ensure that new product launches were delivered on time to consumers."
Nestlé engineers are continuously scouting for and prototyping emerging technologies. They had already established virtual reality capabilities, and remote guidance had been used with limited scope on several projects.
With restrictions on travel, quarantine measures and the need to maintain distancing on-site with the spread of COVID-19, the need for this innovative approach increased.
"While we were able to quickly activate augmented reality remote support as part of our global COVID-19 IT response, this was not an overnight fix. It is based on our disciplined, forward-looking approach to innovation throughout our operations," said Filippo Catalano, Nestlé Group CIO.
Nestlé is transforming its operations by further digitalizing its supply chains and manufacturing. The goal is to create a competitive edge through data, artificial intelligence, automation and predictive analytics.
Digitalization can also help meet environmental targets such as cutting emissions. Nestlé has committed to achieve net zero emissions by 2050.
Nestlé partnered with the Ministry of Water and Forests of Côte d'Ivoire to protect and restore the Cavally forest reserve and enhance the resilience of local communities.
The company's CHF 2.5 million investment will finance efforts to end deforestation within the forest reserve and restore degraded forest. It will also support transition pathways for farmers currently producing in the reserve and promote regenerative agriculture for areas around the reserve.
Cavally forest reserve is one of 234 classified forests in Côte d'Ivoire, a biodiversity hotspot under threat due to deforestation.
Côte d’Ivoire has lost much of its forest cover over the past 60 years. From 1960 to 2015, the area of its forests decreased from 16 million to 3.5 million hectares. This loss of forest was caused by smallholder agriculture.
"Halting deforestation linked to cocoa is part of our ambition to transform our agricultural supply chain, making it more environmentally friendly and resilient. This is part of our accelerated action to tackle climate change, and it will contribute to achieving our zero net emissions commitment by 2050," said Magdi Batato, Executive Vice President, Head of Operations, Nestlé.
The government of Côte d'Ivoire recently adopted a national policy for the preservation, rehabilitation and extension of forests. "This partnership will strengthen our commitment to fight against deforestation caused in part by cocoa cultivation in Côte d'Ivoire and to strengthen the resilience of communities and cocoa producers. I am wishing for a successful implementation and hoping it becomes a replicable model for us to scale-up to other forests," said Alain Richard Donwahi, Ivorian Minister for Water and Forests.
The project will be implemented by the Côte d'Ivoire's Forest Agency (SODEFOR) and Earthworm Foundation, working in synergy with other stakeholders, including the cocoa communities.
Nestlé's Cocoa Plan Manager Darrell High said: "A sustainable production of cocoa that benefits local communities, the environment and the economic development of the country is possible. Our vision is for this project to serve as an example of how cocoa can be sourced in a way that simultaneously protects precious ecosystems in Côte d'Ivoire and preserves farmers' livelihoods."
The project will help to ensure that future farmers and communities cultivate cocoa and other crops outside Cavally forest areas. The project is aligned with Nestlé's participation in the Cocoa & Forest Initiative (CFI) and its action plan to ending deforestation in its cocoa supply chain as well as preserving and restoring existing forests.
Read the full press release
Nestlé Waters North America (NWNA) today announced that three more of its U.S. domestic still water brands, Ozarka, Deer Park and Zephyrhills, have started to convert their packaging to 100% recycled plastic (rPET).
"We have made significant strides on our journey to use more sustainable packaging," said David Tulauskas, Vice President and Chief Sustainability Officer of NWNA. "Bottles made with other bottles – like these – provide tangible proof that recycling works and the circular economy for plastics is achievable. By using recycled plastic, we are breathing new life into existing materials, reducing the need for new plastic and our carbon footprint, and supporting the 757,000 jobs in recycling and reuse activities in the U.S."
With the expansion of rPET to these brands, nearly 60% of all households in the U.S. will have access to one of NWNA’s regionally distributed spring water brands in bottles made entirely with recycled plastic.
This step brings the company closer to achieving its goals of using 25% rPET across its U.S. domestic portfolio by 2021 and 50% rPET by 2025.
By accelerating the use of rPET in its bottles, NWNA is leading the shift from virgin plastic to recycled plastic and helping to create an end-market for sustainable rPET. Using recycled plastic can help keep it out of landfills, waterways and oceans, and reduces greenhouse gases by 67% compared to using new plastic1.
"As we continue our brand-by-brand approach to convert our portfolio to recycled plastic packaging, we are building on the rich history of Ozarka, Deer Park and Zephyrhills and giving them new purpose," said Yumiko Clevenger-Lee, Vice President and Chief Marketing Officer of NWNA. "By embedding sustainability into the foundation of our brands, we are able to deliver a superior product experience that also aligns with what our consumers want and what the planet needs."
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The COVID-19 pandemic is having a far-reaching impact on our communities, including an economic downturn that has hit young people particularly hard. Many schools and universities have closed their doors. Apprenticeships and traineeships have become scarcer. Youth unemployment is again on the rise.
Throughout this difficult time, Nestlé has maintained its efforts to support youth employability in Europe with the Nestlé needs YOUth initiative. Apprentices continued to go to work where possible, and trainees started to work remotely. Nestlé also organized digital training for its apprentices to allow them to complete their required curriculum. Furthermore, the company offered online training for young people working in hotels, restaurants and cafés to support them in learning new skills.
Salviano Silva, Nestlé apprentice at the Avanca factory in Portugal said: "I'm glad I could pursue my apprenticeship and gain relevant skills for my future despite the lockdown. I felt reassured with the additional safety measures taken in the factory. I'm also proud to have been part of the team that kept on producing essential products such as baby food."
Nestlé today reaffirmed its strong commitment to youth employment in Europe by supporting the relaunch of the European Alliance for Apprenticeships.
Speaking at a high-level event for the renewed European Alliance for Apprenticeships, Marco Settembri, CEO of Nestlé Zone Europe, Middle East and North Africa said: "More than ever, we must invest in young people. We strongly believe in the power of apprenticeships. They help young people transition from school to the workplace and get the right skills to shape the world of tomorrow, especially green and digital skills. Since 2014, we and our partners of the Alliance for YOUth have created more than 1,100 new apprenticeship programs. We are committed to continue this journey together."
The Alliance for YOUth is a business-driven European initiative launched by Nestlé in 2014. The Alliance for YOUth brings together more than 300 companies in Europe. The participating companies have created more than 300,000 jobs and training opportunities.
Read more on the European Alliance for Apprenticeships
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Nestlé has today joined other partners in founding the European Clean Trucking Alliance. This unique coalition brings together NGOs, shippers, logistics and consumer goods companies. Together they share the goal of accelerating the decarbonization of road freight transport in the EU.
As European countries seek to recover from COVID-19, Nestlé and the other members of this Alliance urge governments to invest in and speed up the shift towards greener transport. Further reducing CO2 and air pollution from road transport will help achieve the objectives of the European Green Deal and make Europe the first carbon-neutral continent.
Paul Lammers, Head of Supply Chain for Nestlé Zone Europe, Middle East and North Africa said: "We are proud to be one of the founding members of the European Clean Trucking Alliance. Improving the efficiency of our transport and distribution is crucial if we want to reach net zero carbon emissions by 2050. Since 2014, we have reduced our CO2 emissions in logistics by more than 10% in Europe. Having more zero-emission trucks and the required infrastructure will help accelerate this move."
Nestlé is already on the road to a net zero emissions future. In September 2019, the company announced its ambition to achieve zero net greenhouse gas emissions by 2050.. Nestlé will soon publish a plan consistent with this aim, including interim targets.
Some of specific actions to improve Nestlé's transport and distribution operations include:
- The recent opening of the European Transportation Planning Hub helps to manage all of Nestlé’s cross-border transportation in Europe in a more efficient way. It is helping the company to better optimize precious transportation resources, better filling trucks and linking journeys to reduce empty kilometres driven.
- Where possible, Nestlé is moving transport off the road to use alternative mode of transportation. In France, for instance the company has cut the equivalent of 27000 truck trips per year by moving the transport of its water brands Perrier to electric train.
- The acceleration towards alternative fuels and electric trucks where solutions are already available. In Italy, Nestlé has been jointly working with its transport partners to use Liquified Natural Gas (LNG) trucks. The company also continues to work closely with the industry on the deployment of electric truck technology particularly for short journeys. This will soon be the case for some parts of Nestlé’s transport operations in Europe.
As customer interest in plant-based creamers continues to see rapid growth, Nestlé and Starbucks today announced Starbucks Non-Dairy Creamers, the latest innovation from their global coffee alliance.
Building on Starbucks entry into the creamer category in July 2019, it is now expanding its existing portfolio to include non-dairy options.
Starbucks Non-Dairy Creamers are available in two flavors – caramel and hazelnut – to bring customers exciting new ways to enjoy coffee at home. Crafted with a unique blend of almonds and oats, Starbucks Non-Dairy Creamers create a rich and smooth texture with delicious flavors inspired by customer-favorite handcrafted beverages.
Starbucks Non-Dairy Creamers will be available in the refrigerated dairy aisle nationwide in the United States beginning in August.
Nestlé and Starbucks continue to innovate and expand rapidly to deliver a premium experience to coffee lovers around the world.
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Vittel and Ashoka, a non-profit organization promoting social entrepreneurship, have announced the winners of the ’Act For Biodiversity’ Challenge, a global search for changemakers who can collaborate to preserve and restore biodiversity.
The five winning projects: Health in Harmony, Farming for Nature, Renature, Camino Verde, and Forest&Life will share EUR 150,000 and benefit from support within a project accelerator. The projects focus on different impact zones and vary from fighting deforestation and promoting regenerative agroforestry to educational programs for students. Most of them include a strong element of cooperation with local communities and farmers.
Launched in January 2020, the 'Act For Biodiversity' Challenge looks for solutions that are already being implemented and engaging people and organizations across sectors to preserve biodiversity. The five winning projects were selected out of more than 200 submissions by a panel of experts on biodiversity.
Vittel has promoted biodiversity with its Agrivair program for nearly 30 years to protect its water catchment area. The company is now stepping up and expanding its activities beyond its territory. This fits with Nestlé's commitment to achieve net-zero emissions by 2050 - promoting biodiversity is a key element on this journey.
Find out more about the 'Act For Biodiversity' Challenge
Nespresso has announced a CHF 160 million investment to expand its Romont production center in Switzerland to meet increasing consumer demand for its high-quality premium coffees and support international development in the coming years.
"Despite the challenging times we have all been living in, this strategic long term investment reconfirms Nespresso's continuous business success and leadership in the portioned coffee segment, which we pioneered back in 1986," said Guillaume Le Cunff, CEO of Nespresso. "It also demonstrates our continued commitment to our Swiss roots and to the long-term economic development of the region and the country, with which we share values of quality, innovation and expertise."
"These are the kind of announcements that feel good in times of crisis. Nespresso confirms that large international groups can produce competitively in our region. It’s also an investment that strengthens our region in the bio-economy field with which I’m very pleased," said Olivier Curty, State Councillor and Director of Economic Affairs and Employment at the Canton of Fribourg.
The construction of the second production hall is set to start in June 2021. It will result in an augmented capacity of 10 new production lines dedicated to producing Nespresso coffees for the Vertuo and Professional ranges and the creation of 300 new direct jobs in the next 10 years while increasing third party employment and local and regional business development. The first new production lines are expected to be fully operational by June 2022.
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As people are firing up barbecues across Europe, Nestlé has improved its Garden Gourmet plant-based burger to give it an even meatier taste and texture.
It is now so incredibly juicy and incredibly delicious that it really deserves a name that does it justice: Garden Gourmet Sensational Burger.
The new burger is appearing in stores (and on grills) across Europe now. Aside from its even more meat-like flavor and texture, the burger now also cooks better, making that transformation from raw to cooked with a satisfying sizzle.
It is the second upgrade to the Garden Gourmet plant-based burger in just over a year since it was first launched. Further improvements and innovations for the burger and other plant-based products are expected later this year, as Nestlé's plant protein experts, food scientists and chefs continue to listen to consumer feedback and create an exciting product pipeline.
Wayne England, head of Nestlé's food business, said: "As consumers around the world seek healthier, more sustainable diets, we have created some of the tastiest and healthiest plant-based foods available. The new Garden Gourmet 'Sensational' name evokes the senses that are stimulated by our burger: the visible transformation and aroma when cooking, the sound of it sizzling in the pan or on the grill, the great taste and texture."
The Garden Gourmet Sensational Burger still has some of the best nutritional values of any plant-based burger on the market, scoring a Nutri-Score 'A' rating. It also accounts for much lower CO2 emissions, water and land use than a beef burger.
It combines natural soy and wheat protein, color from natural plant extracts, rapeseed and coconut oil and a proprietary method of fermenting plant-based ingredients to boost the 'umami' flavor of the burger.
Torsten Pohl, Head of the Nestlé Product Technology Center in Singen, Germany, which specializes in plant-based foods, said: "We are focused on delivering competitive plant-based products which are both nutritious and great-tasting. Our experts continuously explore new technologies and recipes, to deliver a wide range of plant-based innovations that have the right texture, the right taste, as well as a superior nutritional profile."
Nestlé is committed to providing more delicious, nutritious and sustainable plant-based options for consumers around the globe. People are continuing to look for different ways to eat more healthily and lower the environmental footprint of their diets. Nestlé has announced its ambition to achieve zero net greenhouse gas emissions by 2050, including by offering more plant-based food and beverages.
Nestlé has been working in plant-based food for around 20 years. The Garden Gourmet brand enjoys a heritage that goes back around 35 years as a pioneer in plant-based food.
As Wayne England added: "We know plant-based food and we know meat substitutes. We have been doing this as long as anybody and will continue to focus our energy on what really matters to consumers – delivering truly outstanding plant-based products that are good for people and for the planet."
Other Garden Gourmet 'no compromise' products, including plant-based sausages and grounds, will also carry the 'Sensational' name going forward.
Today, the World Health Organization (WHO), the United Nations Children's Fund (UNICEF) and other civil society organizations published a Call to Action, calling on manufacturers of breast-milk substitutes to take steps towards full implementation of the WHO International Code of Marketing of Breastmilk Substitutes (Code).
We share the common goal of working together to ensure breastfeeding and optimal nutrition for all mothers, infants and young children worldwide. We also share the Call to Action's ambition of full Code compliance by industry and the implementation of the Code globally by 2030. We are reviewing the Call to Action and will publish our response soon.
Nestlé believes breastmilk is the ideal nutrition for babies and we support and promote the WHO's recommendation on breastfeeding. We comply with the Code and relevant WHA resolutions as implemented by national governments everywhere in the world, as a minimum. Over the years, we have taken significant steps to strengthen our breastmilk substitutes marketing practices and will continue to do so. Nestlé welcomes fair feedback from stakeholders that helps us to continuously improve. We highly respect the role that WHO, UNICEF and civil society organizations have played in advancing this issue.
The Call to Action recognizes that a level playing field for all companies is essential. In the absence of legislation, achieving such a level playing field will require everyone to work together, including us. Nestlé is committed to leading the way and encourages all stakeholders to work together to achieve this important goal.
Our response will reflect our commitment to improving the health of mothers and children across the world and we look forward to engaging in this important work.
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Nestlé S.A.'s Board of Directors today approved a new strategic direction for its Waters business. The company will sharpen its focus on its iconic international brands, its leading premium mineral water brands, and invest in differentiated healthy hydration, such as functional water products. The Board also confirmed its intent to explore strategic acquisitions to grow in this category, while pledging to make its entire global water portfolio carbon neutral and replenish associated watersheds by 2025.
At the same time, the Board concluded that its regional spring water brands, purified water business and beverage delivery service at its Nestlé Waters North America unit lie outside this focus. As a result, the company has decided to explore strategic options, including a potential sale, for the majority of the Nestlé Waters business in North America (U.S. and Canada), excluding its International brands. This review is expected to be completed by early-2021.
Read the full press release