Nestle launches global Food Bank Alliance with GFN, Feeding America, European Food Banks Federation; initiative aims to expand food access and reduce waste across 80 countries reaching 100 million people

Uniting Nestlé’s long-standing partnerships with The Global FoodBanking Network (GFN), Feeding America® (FA), and the European Food Banks Federation (FEBA), the Nestlé Food Bank Alliance has been launched. The global initiative is designed to expand access to food and reduce food waste around the world.

Through this initiative, Nestlé and its partners are working together to help strengthen food banking efforts. These networks operate in over 80 countries, reaching over 100 million people globally with critical food assistance. The work of this alliance will include sharing best practices to support local food banking efforts on the ground, collaborating on food waste reduction initiatives, and enhancing employee giving opportunities. By deepening relationships and fostering collaboration between Nestlé and food banks across geographies, the alliance aims to improve the quality, consistency, and reach of food assistance where it’s needed most.

"Food insecurity and food waste are two of the most urgent and interconnected challenges we face," said Nina Kruchten, Head of Community Giving at Nestlé. "It’s a paradox that while over two billion people struggle to access adequate nutrition,¹  we continue to witness food wastage at scale. With this global alliance, we’re strengthening the vital link between surplus and need. Together with our partners, we’re turning excess into access - so that nutritious food reaches those who need it most."

The launch of the Nestlé Food Banking Alliance builds on decades of local collaboration. For example, in the US, Nestlé has partnered with Feeding America for nearly 40 years to help increase access to food with product donations, employee volunteering and corporate grants. In the UK, Nestlé joined forces with Arla Foods in 2024 as part of the Coronation Food Project, donating the equivalent of 1.25 million breakfasts to food charity FareShare, a member of both FEBA and GFN.

This landmark initiative reflects Nestlé’s ongoing commitment to community giving, with a particular focus on food access. In 2024, the company contributed CHF 152 million to charitable causes, including CHF 110 million in product donations² - supporting both long-term partnerships with food banks and short-term disaster relief efforts around the world.

More information on Nestlé’s community impact initiatives 
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¹ State of Food Security and Nutrition in the World (SOFI) report 2024
² Nestlé S.A. Non-Financial Statement 2024 (pdf, 4Mb)Non-Financial Statement 2024 3 Introduction 4 Part 1 – General Disclosures 28 Part 2 – Environmental Disclosures 66 Part 3 – Social Disclosures 98 Part 4 – Governance Disclosures 103 About this Report 104 Appendix 1 – 2024 Reporting Scope and Methodology for ESG Key Performance Indicators (KPIs) 145 Appendix 2 – Statutory Non-Financial Matter Report Index (Article 964b CO) 149 Appendix 3 – Nestlé’s Report Pursuant to Article 964k of the Swiss Code of Obligations and the Ordinance Promulgated Thereunder Regarding Child Labor 150 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators 164 Appendix 5 – TCFD Index 167 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 178 Appendix 7 – Key Policies and Documents 186 Appendix 8 – Glossary 192 Appendix 9 – Assurance Statement 2 Non-Financial Statement 2024 Introduction Nestlé is a global multinational selling in 185 countries, listed Nestlé’s commitment to ethical business practices is on the Swiss Stock Exchange and governed by Swiss grounded in both the Swiss Code of Obligations and the company law. As a Swiss-based company with affiliates ESRS framework (see Own workforce and Business around the world, Nestlé is committed to adhering to the conduct). Nestlé maintains anti-corruption policies and legal and regulatory frameworks that govern its operations practices, in accordance with Article 964b of the Swiss Code within Switzerland, in the European Union and globally. of Obligations, to prevent, detect and respond to any The Swiss Code of Obligations mandates responsibilities instances of corruption or unethical behavior. Nestlé’s Code for the Board of Directors concerning the oversight and of Business Conduct reinforces these principles across all management of Nestlé. In accordance with Articles 716a and levels of its organization. 717 of the Swiss Code of Obligations, Nestlé’s Board of Nestlé is committed to ensuring that its business Directors assumes a proactive role in integrating sustainability practices not only comply with legal requirements but also considerations into Nestlé’s corporate governance framework contribute positively to society and the environment. (see General Disclosures and Governance Disclosures). This includes ensuring that Nestlé’s strategic decisions are Swiss Code of Obligations informed by sustainability factors, which are also central to This Non-Financial Statement 2024 has been prepared by its compliance with Swiss law, and future compliance with Nestlé S.A. (“Nestlé”) in accordance with Articles 964a-c of European regulatory requirements. the Swiss Code of Obligations. Moreover, in anticipation of Under Articles 964a-c of the Swiss Code of Obligations, the Group’s future obligation to report in accordance with Nestlé is required to disclose material non-financial CSRD, the structure, terminology and approach of this report information, particularly relating to environmental and social have been prepared with reference to the ESRS. matters, employee concerns, respect for human rights, and anti-corruption measures. Nestlé’s Non-Financial Statement Materiality 2024 provides transparent reporting on these areas, In this Non-Financial Statement 2024, Nestlé provides data consistent with reference to the Corporate Sustainability and information on topics that it has assessed as material to Reporting Directive (CSRD) and European Sustainability Nestlé’s sustainability practices, initiatives and performance, Reporting Standards (ESRS), and reflects its commitment closely aligned with the ESRS. to the principles of responsible business conduct as outlined For a description of Nestlé’s process to identify and by Swiss law. assess material impacts, risks and opportunities, see Nestlé upholds a strong commitment to human rights, Double materiality assessment. labor standards and social responsibility. Nestlé conducts The Content Index in Appendix 2 – Statutory Non- regular due diligence across its operations and supply chains Financial Matter Report Index (Article 964b CO) contains to identify, prevent and mitigate potential human rights the ESRS topics that Nestlé considers material. impacts. Nestlé’s policies and practices are designed to comply with Article 964j of the Swiss Code of Obligations, ensuring that Nestlé meets the highest standards of corporate responsibility (see Appendix 7 – Key Policies and Documents). Nestlé discloses its environmental policies, risks and performance metrics. Nestlé’s sustainability initiatives are aimed at achieving long-term environmental goals, such as reducing carbon emissions, conserving natural resources, and promoting circular economy practices (see Resource use and circular economy). Non-Financial Statement 2024 3 Part 1 – General Disclosures About this Non-Financial Statement 2024 Nestlé’s business model is to deliver nutritious products for people and pets. Nestlé makes and sells products in: Nestlé’s Non-Financial Statement 2024 aims to provide a Powdered and Liquid Beverages, PetCare, Nutrition and balanced picture of Nestlé’s material topics, related impacts Health Science, Prepared dishes and cooking aids, Milk and performance in the calendar year ending December 31, products and ice cream, Confectionery and Water. Nestlé’s 2024. For investors, Nestlé also provides an overview of business operates in five zones: North America (NA), Europe activities related to its major material issues in the (EUR), Asia, Oceania and Africa including Middle East (AOA), Nestlé Annual Review. Latin America (LATAM) and Greater China (GC).(1) Nestlé’s This Non-Financial Statement 2024 provides an overview diverse portfolio encompasses well-known brands and of the areas where Nestlé may have a significant impact on innovative offerings, allowing it to meet the ever-changing its surroundings, as well as the sustainability-related risks demands of consumers. Please refer to the ‘Our business’ and opportunities that may have a notable financial impact section of this year’s Nestlé Annual Review for more details on Nestlé. The Non-Financial Statement 2024 also aims to on this topic. present a transparent and accurate picture of Nestlé’s This Non-Financial Statement 2024 includes material strategy and progress to advance regenerative food systems information from the value chain to enable users to at scale, including its goals, roadmaps, guidelines, measures understand the significant impacts, risks and opportunities and achieved results in relevant areas. This Non-Financial relevant to Nestlé. This approach aligns with the findings of Statement 2024 is structured with reference to ESRS and in Nestlé’s double materiality assessment (DMA), which was accordance with the Swiss law requirements under Articles last reviewed in the autumn of 2024. 964b and 964j-l of the Swiss Code of Obligations and the In this Non-Financial Statement 2024, Nestlé considers its Swiss Ordinance on Climate Disclosures. upstream and downstream value chain as follows: This Non-Financial Statement 2024 covers Nestlé’s global – The upstream value chain includes both direct and operations and contains data for wholly-owned companies indirect suppliers. and subsidiaries that are consolidated in the Nestlé S.A. – The downstream value chain is limited to customers, financial statements as of December 31, 2024, excluding unless Nestlé identifies a material impact, risk or associates, joint ventures and suppliers unless otherwise opportunity beyond its direct customers. stated. This ensures consistency and completeness in reporting across both financial and sustainability dimensions. Nestlé has not exercised the option to omit any specific It covers the period from January 1, 2024, to December 31, piece of information related to intellectual property, know- 2024 unless otherwise stated. Please refer to the how or the results of innovation in this Non-Financial Consolidated Financial Statements of the Nestlé Group 2024, Statement 2024. All relevant information has been disclosed page 161, for the list of Nestlé Group companies. to provide a full and transparent view of Nestlé’s Throughout this Non-Financial Statement 2024, Nestlé sustainability performance and practices. provides information on strategic and material environmental, social and governance (ESG) key performance indicators (KPIs). These KPIs address key issues to Nestlé and its stakeholders. More information on the methodology used to calculate these metrics can be found in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024, where Nestlé details the definition, scope, methodology and assumptions for calculating and reporting on the selected ESG metrics. (1) In October 2024, the Nestlé Board of Directors approved changes to the company’s organization, effective as of January 1, 2025, to merge Zone Latin America (LATAM) and Zone North America (NA) to Zone Americas (AMS). Further, Zone Greater China (GC) became part of Zone Asia, Oceania and Africa (AOA). 4 Non-Financial Statement 2024 Part 1 – General Disclosures Specific definitions and assumptions This Non-Financial Statement 2024 marks the first year Nestlé’s Non-Financial Statement 2024 uses the definition of that Nestlé is presenting sustainability information in a short-, medium- and long-term horizons provided by CSRD, format intended to follow the ESRS structure, format, and except for the disclosures on climate change, which are as methodology, which may affect its comparability to previous stated in Climate change: Strategy and policies. reports. This Non-Financial Statement 2024 does not yet The climate change time horizon definitions were applied comply with all aspects of ESRS. Nestlé does not have due to the alignment with the Task Force on Climate-related material errors from prior periods; therefore, no corrections Financial Disclosures (TCFD) methodology to assess and for prior years’ errors have been made. disclose climate risks and opportunities. Climate-related risks are treated the same way as other risks at Nestlé and This Non-Financial Statement 2024 follows the are fully embedded in the Nestlé Enterprise Risk requirements of: Management (ERM) Framework, which encompasses – Article 964b of the Swiss Code of Obligations, as multiple complementary processes. This includes the outlined on page 145, including climate disclosures resilience analysis Nestlé conducted in 2023 which used based on the Ordinance on Climate Disclosures and the scenario-based modeling to identify climate-related impact recommendations of the Task Force on Climate-related risks and opportunities. The time horizons considered for Financial Disclosures, page 164. assessing climate-related risks and opportunities are – Article 964l of the Swiss Code of Obligations, which medium-term (5 years) and long-term (10–20 years). These addresses due diligence and transparency related to are longer than the time horizon provided by ESRS, as child labor, page 149. climate risk is expected to materialize on a longer timeline than the time horizons in CSRD. In the short-term (1–2 years), Finally, Nestlé has reported the information cited in the Nestlé assumes that the dynamic forecast, which includes Global Reporting Initiative (GRI) content index, page 167, for an 18-month outlook, incorporates potential climate-related the period from January 1, 2024 to December 31, 2024, with risks and opportunities, similar to other business-related reference to the GRI Standards. areas. These are covered in Climate change and summarized in Appendix 5 – TCFD Index of this Non-Financial Statement 2024. Governance There is a degree of uncertainty associated with calculating financial risks and opportunities in all areas Nestlé’s sustainability governance is integrated into its deemed material to Nestlé. Efforts have been made to corporate structure, with oversight by the Board of Directors. ensure the accuracy and reliability of the information The Board is responsible for Nestlé’s strategy and presented in this Non-Financial Statement 2024. However, organization and provides oversight over its financial and it should be noted that the metrics included in this Non- non-financial performance and reporting. The Board Financial Statement 2024 are subject to uncertainties due to approves Nestlé’s ESG and Sustainability Strategy and limitations in data-collection and measurement methods. approves its Non-Financial Statement for submission to the The precision of different techniques may also vary. The Annual General Meeting. The Sustainability Committee has Non-Financial Statement 2024 incorporates data obtained oversight over the structure and content of Nestlé’s ESG and from external sources or third parties as much as possible. Sustainability reporting and validates that the overall approach is in line with Nestlé’s strategy. The Audit Committee has oversight over the accuracy of Nestlé’s financial and non-financial reporting. Non-Financial Statement 2024 5 Part 1 – General Disclosures Nestlé's governance and implementation structure Board of Directors Board Committees The Board is responsible for Nestlé’s strategy and Sustainability Audit organization and provides oversight over its financial and Committee (SC) Committee (AC) non-financial performance and reporting. The Board The SC has oversight over the The AC has oversight approves Nestlé's ESG & Sustainability Strategy and structure and content of Nestlé’s over the accuracy of the approves its Non-Financial Statement for submission ESG & Sustainability reporting and Nestlé’s financial and to the Annual General Meeting. validates that the overall approach ESG & Sustainability is in line with its strategy. reporting. Executive Board Nestlé’s Executive Board is responsible for the definition Creating Shared Value (CSV) Council and execution of Nestlé’s ESG & Sustainability Strategy, which includes ensuring compliance with mandatory reporting obligations. The CSV Council is an external advisory body that advises senior management on a range of sustainability issues. ESG & Sustainability Council The ESG & Sustainability Council provides strategic leadership and execution support, and drives the implementation of Nestlé’s ESG & Sustainability Strategy, including its 2050 Net Zero Roadmap, ensuring focus and alignment. Scope: – 2050 Net Zero Roadmap – Packaging Sustainability – Water – Responsible Sourcing – Human Rights Key: – Communications Approves – Advocacy – Systems and Reporting Reports Advises 6 Non-Financial Statement 2024 Part 1 – General Disclosures The Board of Directors approved the Non-Financial Information is provided to the Board and other Statement 2024 to be issued on February 13, 2025, subject to supervisory bodies through a range of committees and approval at the Annual General Meeting on April 16, 2025. mechanisms, including: For the number of executive members, see page 21 of the – Risk and compliance activities are coordinated through Nestlé Corporate Governance Report. the Group Compliance Committee to ensure a holistic, For the number of non-executive members, see page 6 of entity-wide approach. The Audit Committee is provided the Nestlé Corporate Governance Report. yearly with the Group Compliance Report, a comprehensive For information about members’ experience relevant to documentation of Nestlé’s compliance framework, sectors, products and geographic locations of undertaking, systems, activities and improvement actions pursued by the see pages 6 and 7 of the Nestlé Corporate Governance Report. various functions. It includes a summary of the feedback For information about the roles and responsibilities of received on the Group’s integrity-reporting system as well management and supervisory bodies, see pages 18, 19 and as the compliance audits on Nestlé-operated sites (CARE). 20 of the Nestlé Corporate Governance Report. – Nestlé’s ESG and Sustainability Council provides strategic For information about the identity of management and leadership and execution support and drives the supervisory bodies or individual(s) within bodies responsible implementation of Nestlé’s ESG and Sustainability for oversight of impacts, risks and opportunities, see pages Strategy, including the Nestlé Net Zero Roadmap, ensuring 14, 15 and 16 of the Nestlé Corporate Governance Report. focus and alignment. Nestlé’s Executive Board is responsible for the execution – The Nestlé Human Rights Policy expresses Nestlé’s overall of Nestlé’s ESG and Sustainability Strategy, which includes strategy on human rights, from principles to operational ensuring compliance with mandatory reporting obligations. approach and governance. The Board is responsible for The implementation of Nestlé’s ESG and Sustainability Nestlé’s strategy, organization and oversight. The Executive Strategy is delegated to the ESG and Sustainability Council, Board is responsible for the execution of Nestlé’s approach. chaired by the Executive Vice President (EVP) Head of It has set out the roles and responsibilities within Nestlé to Strategic Business Units and Marketing and Sales. The ensure the implementation of the Human Rights Framework Council addresses the following topics: 2050 Net Zero and Roadmap, and Nestlé Human Rights Salient Issue Roadmap, packaging sustainability, water, responsible Action Plans throughout its business categories and sourcing, human rights, communications, advocacy, systems geographies. Nestlé’s Human Rights Steering Committee, and reporting. The Council meets every month and regularly which is chaired by the Executive Vice President Group reports to the full Executive Board. The structure helps to General Counsel, oversees the implementation of Nestlé’s accelerate and standardize decision-making at a global level. Salient Issue Action Plans, and monitors progress. During 2024, the Council met 12 times. The Council oversaw the implementation of the reporting obligations, including For the Group’s Enterprise Risk Management (ERM) see Swiss Non-Financial Reporting Obligations (Articles 964a to Double materiality assessment (DMA). 964c and Articles 964j to 964l of the Swiss Code of In 2024, the ESG and Sustainability Council was Obligations) which require specific disclosures on ESG risks, regularly updated on the DMA progress, which it policies, mitigation measures and outcomes, summarized in subsequently approved, including the material impacts, Appendix 2 – Statutory Non-Financial Matter Report Index risks and opportunities as presented in this Non-Financial (Article 964b CO) of this Non-Financial Statement 2024. Statement 2024. For information about sustainability-related expertise that Each impact, risk and opportunity is managed by the bodies either directly possess or can leverage, see page 7 of relevant Board and Executive committees to ensure the the Nestlé Corporate Governance Report. effectiveness of measures put in place to address them and their consideration within the Group’s strategy. Specifically for climate, the Board is responsible for Nestlé’s strategy, organization and oversight of climate-related matters, and monitors progress toward Nestlé’s climate-related goals and targets, while, as stated, Nestlé’s Executive Board is responsible for the overall execution of the sustainability strategy, which covers climate-related issues and includes the progress toward Nestlé’s climate-related goals and targets. Non-Financial Statement 2024 7 Part 1 – General Disclosures Incentive schemes and See Business conduct for detailed information related to risk remuneration policies management and internal controls over sustainability reporting. Regarding data quality, Nestlé continuously works to Incentive schemes and remuneration policies linked to improve this aspect of reporting, and it has appointed a Data sustainability matters have been created for members Quality Management Team and Manager to lead these of management. efforts and explore possibilities for automating data capture The ESG objectives (15% of the target) are set annually to replace manual processes. by the Compensation Committee and reflect selected Data collection within Nestlé involves regional performance measures from Nestlé’s ESG and Sustainability representatives collecting environmental and climate agenda. They relate to affordable nutrition with reporting data from suppliers and operations within their micronutrients fortification, reduction of greenhouse gas respective Zones and Markets. The ESG Finance Function (GHG) emissions, virgin plastic reduction, reduction of assists in extracting data from accounting, timekeeping and water-use in factories, and management positions held project systems. Employees from Group functions retrieve by women. These five objectives are equally weighted at other data from Nestlé’s systems for calculation, collation 3% each. Other employees are also linked to similar ESG and quality-control purposes. objectives through employee-specific objectives related to During 2024, an action plan was established to start individual priorities and performance. As of 2023, Nestlé operationalizing the sustainability-related controls for added an ESG-related KPI, ‘Reduction of greenhouse gas material data points, as well as an internal audit by Nestlé to (GHG) emissions’, as a fourth performance metric in the check KPIs and advise on suitable improvements. Long-Term Incentive Plan (20% of the target). Engaging with stakeholders Due diligence and risk management Engaging with Nestlé employees Nestlé is committed to responsible business conduct Nestlé discloses in the Workforce Disclosure Initiative (WDI) through due diligence processes. Nestlé takes into account how it engages with employees and how it takes their views international frameworks such as the GRI Consolidated Set on board, either as part of a formal information and of Standards 2021, the Sustainability Accounting Standards consultation process, or as part of employee-engagement Board (SASB) Standard for the Processed Foods sector and surveys and different idea-generating platforms. the OECD Due Diligence Guidance for Responsible Business Workforce matters are integrated into Nestlé’s 2025 Conduct (2018), to help identify, assess and address risks People Strategy, which is overseen by Nestlé’s Global Head related to environmental, social, employee, human rights and of Human Resources. combating corruption related matters. These steps include Nestlé’s commitment aims to ensure healthy and safe the following: working conditions for both employees and the individuals it – Embedding responsible business conduct into policies collaborates with. It also expects suppliers and business and management systems. partners to uphold these standards. Nestlé’s primary goal is – Risk identification: Operations and supply chains are to empower informed decision-making and encourage regularly assessed to identify potential adverse impacts. employees to take responsibility for themselves, their – Prevention and mitigation: Strict policies are enforced, and families and the success of Nestlé’s business. Additionally,  training is provided. Nestlé collaborates with partners to Nestlé proactively works toward identifying and manage risks. mitigating workplace health and safety risks, offering – Monitoring: Audits are conducted, performance tracked comprehensive health and well-being programs and and grievance mechanisms maintained. providing support to employees throughout their recovery – Remediation: Actions are taken promptly to remedy from injuries or illnesses. identified issues and engage with affected stakeholders. – Transparency: Due diligence efforts and outcomes are reported regularly. 8 Non-Financial Statement 2024 Part 1 – General Disclosures To implement its sustainability-related commitments, Furthermore, Nestlé sites are certified to ISO 45001, Nestlé has developed two global strategies: which stipulates that worker representation is an integral – Nestlé’s Global Safety Strategy is dedicated to upholding part of Nestlé’s management system, being audited the highest safety standards across Nestlé sites, externally by certification bodies. operations and projects. This strategy focuses on defining life-saving rules with zero tolerance for fatal and serious Engaging with stakeholders in the value chain injuries, while also emphasizing the right behaviors. Nestlé Nestlé values dialogue with stakeholders in its value chain, embraces digital safety innovation, leveraging technology suppliers, business partners, workers and farmers in its to seek to eliminate the occurrence of serious accidents. supply chains and local communities, as well as its Furthermore, it employs behavioral science to gain a consumers. Nestlé pays particular attention to individuals or deeper understanding of the factors driving at-risk groups who may be at greater risk due to their vulnerability behaviors and ways to address their root causes. or marginalization, such as migrant workers, children, – The Nestlé Roadmap for Employee Health outlines women and girls, gender minorities, ethnic and racial groups Nestlé’s priorities for the period 2024–2026. It summarizes and Indigenous Peoples and local communities. the Employee Health Vision, Principles and Pillars with key milestones and deliverables. It serves as a reference for Ratings Markets when developing Employee Health Strategies. Nestlé has received the following ratings for its stakeholder engagement: See Nestlé’s Salient Issue Action Plan: Safety and Health – Nestlé has been consistently listed in the FTSE4Good at Work for more details. Index since 2011 and was the first breast-milk substitute Nestlé is committed to fostering positive relations with company to be included. It has maintained a strong workers, worker representative bodies and trade unions, and standing in the Index, with an overall 2024 environmental, respects the right of employees to engage in union activities. social and governance (ESG) rating of 4.4 out of 5. At the global level, Nestlé continues to engage with the – In 2024, Nestlé was rated A by MSCI ESG Research for its International Union of Food, Agricultural, Hotel, Restaurant, performance on ESG issues. Catering, Tobacco and Allied Workers’ Associations (IUF) – Nestlé continues to be in the Carbon Disclosure Project through biannual meetings and working groups focused on (CDP) leadership band for climate change. It scored a B specific topics such as health and safety, gender equality for water security, an A- for palm oil and a B for other and non-discrimination. forest commodities. In 2024, two meetings of the Nestlé IUF working groups – Nestlé received a score of 22.7 and is rated as medium- took place. The working group on Social Sustainability risk on Sustainalytics’ 2024 ESG Risk assessment. This focused on topics such as the climate crisis, heat impacts score is Nestlé’s best result in five years and reflects its and access to water for workers. The working group on commitment to the effective management of ESG risks. Gender Equity discussed the Nestlé Global Guidance for – Nestlé ranked 9th out of 30 global food and beverage Menopause/Andropause at Work. manufacturers in the Access to Nutrition Initiative (ATNI) At regional and market levels, Nestlé engages with works Global Index 2024 and has been recognized for reporting councils, such as the Nestlé European Council for the nutritional value of its portfolio using the Health Star Information and Consultation (NECIC), labor federations, Rating (HSR). external experts and business organizations to find – Nestlé ranks second in the 2023 Nature benchmark and opportunities to continuously improve its labor practices. In the Food and Agriculture benchmark from the World 2023, upon the request of Nestlé employees at the NECIC, Benchmarking Alliance. Nestlé engaged in a deep-dive discussion on employee – Nestlé received the Reuters Responsible Business Awards health and well-being and presented global, European and 2023. The judges said Nestlé provided a good example to select countries’ health programs. other companies of transparently revealing progress Supporting this approach, Nestlé specifically monitors the against published targets and acting on results. number of formal agreements (bargaining agreements or – Nestlé was ranked second in the packaged food industry other formal documents) with trade unions, with a reference in Ceres’ Feeding Ourselves Thirsty analysis. The to safety or health. analysis compares the quality of water-risk management of 40 major food companies. Non-Financial Statement 2024 9 Part 1 – General Disclosures Summary of stakeholder engagement related to the value chain Academia and science: Governments, international organizations and NGOs: – Symposia – Discussions – Collaboration with institutions – Events – Conferences Consumers: – Social media Industry associations: – Brand campaigns – Regular engagements across ESG topics – Transparent information Investors and analysts: Customers: – Meetings – Regular meetings – Investor Days – Communications – Analyst calls – Topical events Suppliers: Farmers, youth and communities: – Programs – Grower programs for commodities – Guidance – Collaborative roadmaps Global partnerships: – Support – Joint intiiatives on key topics – Hosting of events Examples of Nestlé stakeholder engagement activity by topic Climate – Published the Climate Policy Engagement report and improved assessment by Influencemap (ranked Nestlé #5 out of about 200 companies). – Provided ongoing support to the International Chamber of Commerce, Business for Nature and the World Business Council for Sustainable Development in calling for strong action by policymakers to safeguard natural resources during global events such as New York Climate Week, COP29, CBD COP16 and UNCCD COP16. – Partnered with key suppliers to implement climate change mitigation actions. – Supported the development of ambitious nationally determined contributions (NDCs) in key countries (e.g. Brazil and the UK). Global – Refocused Nestlé’s partnership with the International Federation of Red Cross (IFRC), with a five-year strategic partnership for partnerships the Disaster Response Emergency Fund and Africa Hunger Crisis. – Renewed annual partnership with World Central Kitchen. – In partnership with UNESCO, the ‘Impulso Joven – Because Youth Matter’ program provides young people with the necessary resources and skills to develop and implement their novel solutions to create positive social and environmental impact in their communities. – Consolidated MOU with the Global FoodBanking Network, working toward the inclusion of European FoodBanking Network and Feeding America. Nature and – Organized a dialogue with experts and beneficiaries to discuss the challenges and opportunities of scaling up regenerative biodiversity agriculture together with the Alliance Bioversity International and the International Center for Tropical Agriculture (CIAT), The Nature Conservancy and OP2B/WBCSD at CBD COP 16. – Contributed to the 5th Anniversary of OP2B in a dedicated event organized at NYC Climate Week focusing on scaling up regenerative agriculture and advance the Action Agenda on Regenerative Landscapes. – Continued leadership in forest conservation and restoration reporting progress on 1t.org and within the Consumer Goods Forum (CGF) Forest Positive Coalition of Action. – Contributed to the Rimba Collective Progress Report which outlined collective commitment of conservation and restoration of 224 000 hectares of forest. 10 Non-Financial Statement 2024 Part 1 – General Disclosures Nutrition – Supported efforts to promote the role of food and nutrition in addressing global health challenges during the 77th World Health Assembly. – Participated in the Access to Nutrition Initiative project to harmonize the use of nutrient profiling models in non-financial reporting. – Convened members of ShareAction’s healthy market initiative to a meeting with Nestlé’s CEO, Laurent Freixe, to explore opportunities beneficial to both public health and its business. – Continuous engagement with the scientific community in external and internal conferences, such as the 2024 Nestlé International Nutrition Symposium which covered the topic ‘Rethinking the impact of nutrition on health: From nutrients to meals to balanced diets.’ Packaging – Engaged in development of solutions and policy proposals for packaging circularity and waste management as a member of the Advisory Board of the Ellen MacArthur Foundation New Plastics Economy, Steering Board of the Global Plastics Action Partnership and co-chair of the Business Coalition for a Global Plastics Treaty. – Participated as an observer at the UN Environment-hosted intergovernmental negotiating committee process for a global Treaty on Plastic Pollution. – Partnered with the Fair Circularity Initiative in promoting 10 Principles for Fair Partnerships with Waste Workers, and supported the establishment of the Living Income in the Informal Waste Sector report, Methodology and assessments in 10 countries. – Ongoing engagement with NGOs, key opinion leaders, and the scientific community through bilateral meetings, stakeholder site visits and industry conferences. – Partnerships with customers and start-ups to grow the reuse and refill ecosystem through B2B and B2C initiatives with PR3, CITEO, Circolution and systems solutions like ALDO. Social – Actively participated in the Child Labor Cocoa Coordination Group (CLCCG) negotiation process, which led to the signature of the Framework of Action 2024–2029 to contribute to the prevention and progressive elimination of child labor in cocoa- growing communities of Côte d’Ivoire and Ghana, between the World Cocoa Foundation and the governments of Côte d’Ivoire, Ghana and the United States. – Organized two in-depth consultation processes with diverse stakeholders in Brazil and Colombia as part of the implementation of Nestlé’s Salient Issue Action Plan on Indigenous Peoples’ and Local Communities’ Land Rights. – Together with the Skoll Center and the Oxford Martin School’s Programme on the Future of Food, Nestlé convened a diverse group of over 80 expert participants from the private, public, and social sectors earlier this year. The main outcomes of the discussion were outlined in a new report, ‘Towards a Just Transition in Global Food Systems’, where Nestlé outlined the five critical key approaches that emerged from these discussions. – Hosted a meeting between Nestlé’s CEO, Laurent Freixe, and the ILO’s Director General, Gilbert Houngbo, at Nestlé headquarters. – Hosted the members of the Alliance for YOUth at Nestlé’s global training center to celebrate the 10th anniversary of the Initiative. Transparency – Engaged with the investment community through Nestlé’s Annual General Meeting and regular investor meetings and analyst calls. – Held five in-person Chairman’s roundtables and engaged with investors throughout the year. – Held Capital Markets Days with investors and analysts. – Published the 2023 Creating Shared Value & Sustainability Report, recognized with a Swiss Sustainability Reporting Excellence Award. Double materiality assessment exposure and ensure a comprehensive understanding of each impact’s potential ramifications. Additionally, this helps put in Nestlé identified 39 material impacts and risks as part of the place the right metrics to measure progress in mitigating risks. DMA in 2024, conducted with a third-party organization, with Nestlé’s strategic framework is deeply intertwined with the material impacts, risks and opportunities outlined in the its impact management approach. Nestlé’s business model table on the next page. In addition, Nestlé discloses (see General Disclosures) is designed to integrate descriptive information on the identified risks alongside the sustainability at its core, ensuring that every strategic disclosures provided under each sustainability matter section decision considers the potential impacts on society, the in this Non-Financial Statement 2024. environment and Nestlé. This integration is achieved For each identified material impact, Nestlé’s internal subject- through a systematic process where potential impacts are matter experts develop, assess and document risks and identified, assessed and managed in alignment with Nestlé’s opportunities. This process is designed to substantiate Nestlé’s long-term goals. Non-Financial Statement 2024 11 Part 1 – General Disclosures By embedding impact analysis into its strategy, Nestlé and monitoring of its impact strategy. This framework endeavors to contribute positively to global sustainable includes accountability mechanisms and regular reviews to development goals while addressing negative ensure that Nestlé’s strategic objectives are consistently consequences. This proactive approach not only enhances aligned with its impact management goals. Through Nestlé’s resilience and adaptability but also reinforces its continuous learning and adaptation, Nestlé strives to commitment to creating shared value. Nestlé leverages its enhance its impact performance, fostering a culture extensive supply chain network and diverse portfolio to drive of sustainability. positive changes, ensuring that its business practices By defining the time horizons for impacts, risks and support sustainable development and ethical stewardship. opportunities, Nestlé enhances its capacity to plan Furthermore, Nestlé employs a governance framework, strategically, align resources effectively and measure detailed in Business conduct to oversee the implementation progress accurately. Description of impact and/or risk Value chain Time horizon Sustainability matter IRO names Rationale: description of negative impact and/or risk Climate change Climate Sourcing practices Impact: Climate change poses a significant challenge to sourcing of ingredients, change with extreme weather events risks, increased pests and diseases threatening adaptation crop yields. Adaptation is costly and complex, especially for small-scale farmers, and shifting sourcing regions adds to economic instability. Risk: Climate-related risks such as heatwaves, drought and water stress may impact raw materials, availability, quality and cost due to lower yields and greater yield variability. Climate Emissions from Impact: Greenhouse gas emissions linked to agricultural activities and land-use change sourcing and changes for ingredients. mitigation ingredients Risk: Policy risks (e.g. carbon tax), technology risks (e.g. replacement and substitution of emission intensive assets), and market risks (e.g. consumers adopting more sustainable choices) are factors that may potentially lead to supply disruptions, regulatory action, increasing operating costs and impacts on Nestlé’s reputation. Energy Energy mix Impact: Sources of energy (e.g. fossil fuel) can result in impacting climate change. Pollution Pollution Water pollution Impact: Activities in the value chain can impact water quality via industrial of water including discharge or chemical runoff. Without proper treatment, these can lead to eutrophication contamination of water bodies, including eutrophication and subsequent oxygen depletion in aquatic environments. Pollution Soil pollution Impact: Excessive or improper use of chemicals like synthetic fertilizers and of soil from agricultural pesticides in agriculture can disrupt local ecosystems, thereby affecting the activities integrity of the soil environment. 12 Non-Financial Statement 2024 Upstream Own operations Downstream Short term Medium term Long term Part 1 – General Disclosures Value chain Time horizon Sustainability matter IRO names Rationale: description of negative impact and/or risk Water Water Water scarcity Impact: Water consumption from local hydrogeological systems, without consumption adequate restoration or regeneration within the same watershed, as observed in activities such as agriculture or food and beverage production, can impact local water availability. Water Water Impact: Excessive withdrawals from local water resources can place increased withdrawals usage impacts pressure on the availability of water for other users or ecosystems. Water Water discharges Impact: Operations within the value chain can impact water quality, primarily discharges in water bodies through industrial effluent discharges and leaching from agriculture activities. These include thermal change or chemical runoff, which can result in adverse impact on the environment. Biodiversity Impacts on Pollinator decline Impact: Excessive or improper use of pesticides can harm pollinator the state populations, crucial for the state of species and ecosystems. of species Impacts on Soil erosion Impact: Intensive farming methods, such as excessive tillage or bare soils can the extent lead to soil erosion, thereby removing the nutrient-rich top layer of soil and and condition impairing ecosystem services such as water filtration. of ecosystem and dependencies on ecosystem services Climate Greenhouse Impact: Greenhouse gas emissions may intensify climate change and impact change gas emissions ecosystems and biodiversity. Risk: Supply disruptions, regulatory action including fines, litigation and impacts on reputation. Land-use, Deforestation Impact: Agricultural activities can be a key driver of land-use change, and can fresh contribute to deforestation, leading to negative impacts on forest ecosystems water-use and the ensuing decline in biodiversity. and sea-use Risk: Supply disruptions, regulatory action including fines, litigation and impacts change on reputation. Transformation of Impact: The shift toward certain ingredients can have adverse ecological effects, product portfolio such as deforestation and habitat loss. Direct Intensive farming Impact: Intensive farming practices can lead to resource depletion and disturb exploitation the balance of ecosystems. Non-Financial Statement 2024 13 Upstream Own operations Downstream Short term Medium term Long term Part 1 – General Disclosures Value chain Time horizon Sustainability matter IRO names Rationale: description of negative impact and/or risk Resource use Resource Food waste Impact: Food waste in the value chain encompasses the unnecessary disposal outflows of edible products and ingredients throughout distribution and consumption related to stages, and can have economic, environmental and social implications, such as products unnecessary use of resources or GHG emissions. and services Packaging Impact: Inadequate packaging designs for minimal material use, and the lack of progress on reusability, recyclability or compostability of materials and the lack of proper infrastructure, can lead to increased environmental degradation and elevates the demand for raw materials. Own workforce Freedom of Suppression Impact: Suppression of the right to form unions can affect workers’ rights of association, of the right to collective bargaining, hindering improvements in working conditions and works form unions socio-economic development. councils and rights of workers Health Work incidents Impact: Incidents at work can result in injury, harm or death of employees. and safety Stress and Impact: Mental and emotional pressures from work, including but not limited to mental workload the intensity and duration of working hours, can affect the health, productivity and well-being of employees. Gender Unequal pay Impact: Unequal pay can deepen socio-economic disparities, affect the work equality and for work of environment and increase the stress levels among underpaid groups. equal pay equal value for work of Gender inequality Impact: Gender inequality in the workplace can lead to reduced employee equal value morale and productivity, hinder talent acquisition and retention and result in missed opportunities for innovation and growth due to a lack of diverse perspectives and ideas. Diversity Incidents of Impact: Discrimination in the workplace can lead to inequalities, restrict access discrimination at to opportunities and resources, exacerbate social divisions and severely impact the workplace mental health and well-being of the affected individuals. 14 Non-Financial Statement 2024 Upstream Own operations Downstream Short term Medium term Long term Part 1 – General Disclosures Value chain Time horizon Sustainability matter IRO names Rationale: description of negative impact and/or risk Workers in the value chain Adequate Lack of Impact: Lack of living wage can make workers extremely vulnerable to poverty, wages living wages and potentially contribute to many other social and human rights issues, such as gender inequality and forced labor. Child labor Incidents of Impact: Incidents of child labor or child labor risks can deprive children of their child labor or  childhood, potential, dignity, interfere with their schooling, and be harmful to child labor risks their physical and mental development. Measures Incidents of Impact: Incidents of violence and harassment in the workplace can significantly against violence and undermine the overall work environment, leading to decreased employee violence and harassment in morale, increased absenteeism and potential reputational damage. These issues harassment in the workplace can ultimately affect productivity and the organization’s ability to attract and the workplace retain talent. Health Workplace Impact: Workplace incidents, diseases and fatalities can lead to a high human, and safety incidents, diseases economic and social burden. This includes reliance on benefits, early retirement, and fatalities exclusion from the labor market, the loss of a breadwinner and poverty. Forced labor Incidents of Impact: Incidents of forced labor or forced labor risks can perpetuate human forced labor or  rights abuses, economic exploitation, social inequality, and undermine global forced labor risks progress by eroding trust and hindering sustainable development. Water and Incidents of  Impact: Incidents of improper water and sanitation can lead to health issues, sanitation improper water child mortality, malnutrition, and hinder economic development by increasing and sanitation healthcare costs and reducing productivity; can exacerbate social inequalities, and contribute to the perpetuation of poverty cycles. Affected communities Adequate Lacking Impact: Lacking food security can result in severe malnutrition, stunted growth food food security in children, and heightened susceptibility to illnesses and chronic health conditions. This situation can lead to increased healthcare and perpetuate cycles of poverty, social instability, and economic disparity, making it challenging for communities to achieve sustainable development and improved quality of life. Water and Incidents of Impact: Incidents of improper water and sanitation can lead to health issues, sanitation improper water child mortality, malnutrition, and hinder economic development by increasing and sanitation healthcare costs and reducing productivity; can exacerbate social inequalities, and contribute to the perpetuation of poverty cycles. Land-related Indigenous Impact: The violation of Indigenous Peoples and local communities’ land and impacts Peoples’ and local resource rights can lead to significant economic, cultural, environmental, social, communities’ land and health detriments for the affected communities, exacerbating inequality and and resource rights human rights abuses. Non-Financial Statement 2024 15 Upstream Own operations Downstream Short term Medium term Long term Part 1 – General Disclosures Value chain Time horizon Sustainability matter IRO names Rationale: description of negative impact and/or risk Consumers and end-users Privacy Protecting Impact: Privacy incidents can lead to potential harm to people’s rights and consumers’ integrity, personal safety and well-being. personal data Access to Unclear or Impact: The lack of clear and comprehensive product information, as opposed (quality) insufficient product to accessible and user-friendly communication, hampers the ability of all information information consumers to fully understand the practices and ingredients involved. This gap in communication can lead to confusion and mistrust, preventing consumers from making informed decisions based on their personal preferences, health requirements and ethical considerations. Health and Impacts of Impact: Detrimental impact of excessive consumption of foods high in sugar, safety and unhealthy diets sodium, and fat can lead to an increased risk of obesity and associated security of noncommunicable diseases (NCDs). a person Consumption Impact: Negative repercussions for consumers can result from a breach in of safe and product safety or improper allergen labeling, leading to impurities, quality products contamination and related health issues. Risk: Incidents of food safety can lead to regulatory action including fines, litigation, loss of trust and impacts on reputation. Access to Products Impact: Products are not usable or available to all segments of the population, products accessibility such as those with different income segments and specific dietary needs. and services for specific consumer groups Responsible Ensuring Impact: Improper marketing communication can mislead and/or affect marketing compliance vulnerable consumer groups (e.g. children, infants and young children). practices with Nestlé Marketing Policies 16 Non-Financial Statement 2024 Upstream Own operations Downstream Short term Medium term Long term Part 1 – General Disclosures Value chain Time horizon Sustainability matter IRO names Rationale: description of negative impact and/or risk Governance Corporate Lack of adherence Impact: A lack of adherence/awareness of corporate values and compliance with culture to Nestlé’s values, principles, polices and applicable laws and culture can contribute to a decline in principles, public and employee trust, with potential reputational, legal and societal policies and repercussions. applicable laws Protection Lack of mechanism Impact: The absence of an independent and secure system can inhibit of whistle- to identify, report individuals from reporting misconduct, undermine transparency, erode trust in blowers and investigate institutions, hinder engagement and productivity, and pose risks to public concerns about welfare and legal compliance. unlawful behavior, including related business conduct, and inadequate protection against retaliation This DMA was performed at Group level, covering Nestlé uses various sources of information to inform its Nestlé’s global upstream, own operations and downstream analysis, such as internal data and internal subject-matter value chains. experts, external benchmarks, stakeholder feedback, media Nestlé’s process for identifying and assessing reports, and external expert opinions. In addition, Nestlé sustainability matters is based on a comprehensive and uses existing work such as Nestlé’s Human Rights systematic analysis of its operations and value chain, as Framework and Roadmap, and Nestlé’s Human Rights well as the external context in which it operates. Salient Issue Action Plans, to identify, prevent and mitigate – For impact materiality, Nestlé rated identified impacts any adverse human rights impacts that it may cause or on scale, severity and likelihood to understand the contribute to through its activities or as a result of Nestlé’s materiality of each topic. business relationships. – For financial materiality, which assesses risks and Nestlé conducts consultations on resource and circular opportunities, Nestlé identified sustainability factors economy matters through regular interactions with impacting its financial performance. stakeholders at various levels including local, regional, national and international platforms, both in-person Identifying impacts, risks and opportunities and online. The process of identifying and assessing impacts focuses on Nestlé’s external advisory Group, named the Creating risks or opportunities from Nestlé’s own operations, or as a Shared Value (CSV) Council, plays a crucial role in defining result of its business relationships, and involves mapping its agendas related to circular economy and resource value chain and understanding the impacts, risks or management. This includes ensuring regular consultations opportunities that are relevant for each stage of its with various stakeholders to discuss and demonstrate operations and business relationships. progress in key areas like recycling, reuse-and-refill systems, regenerative food systems and industry-initiative participation. Non-Financial Statement 2024 17 Upstream Own operations Downstream Short term Medium term Long term Part 1 – General Disclosures In the area of packaging circularity, Nestlé co-chairs the – Geographies: Nestlé considers the geographic locations Business Coalition for a Global Plastics Treaty, working with of its operations and value chain, and the specific government and civil society stakeholders, and Nestlé is a environmental, social, economic, political and cultural founding member of the Fair Circularity Initiative with the characteristics of each region or country. Nestlé’s division private sector and non-governmental organizations. Nestlé into Zones provides a tailored framework to help assess also engages with waste workers in the informal and impact in individual Zone geographies. It enables Nestlé to cooperative sectors, aiming for regulatory protection of the assess the potential impacts of its local presence, human rights of waste workers. This work in 2024 included employment practices, tax contributions, stakeholder the development of a living income methodology for informal engagement, regulatory compliance, adaptation to climate sector workers, and a capacity-building program for the change and water scarcity. assessment of living income in waste collection with local – Other factors: Nestlé considers any other relevant factors associations and cooperatives. that may affect its ability to prevent, mitigate or remediate Nestlé’s direct engagement with stakeholders in negative impacts, or enhance positive impacts, such as its circularity included a facilitation training on 3 Horizons’ governance structure, policies, procedures, management futures-mapping methodology for Nestlé employees and key systems, targets, indicators, incentives, training, audits, stakeholders to advance collective thinking on waste- reporting and grievance mechanisms. management systems and reuse-and-refill system futures. The Nestlé value chain underwent a screening for both To identify its material sustainability matters, Nestlé engages actual and potential impacts, risks and opportunities. The with a range of internal and external stakeholders, including extent to which the value chain is affected for each of the affected stakeholders, to understand their perspectives, identified impacts, risks and opportunities was specified and expectations and concerns. Nestlé uses various methods of described in detail. Furthermore, it was assessed whether consultation, such as surveys, interviews, focus groups, each specific impact leads to positive or negative outcomes, workshops, webinars and feedback mechanisms. Nestlé also as well as defined the affected time horizons of the impacts. seeks advice from external experts, such as sustainability Through this process, Nestlé aims to identify its most consultants, academics, industry associations, non- material sustainability matters, post-mitigation and to governmental organizations and standard setters to ensure prioritize its actions accordingly. This includes considering that it is aware of the latest trends, best practices and the following factors that may influence the likelihood of emerging issues in related sectors and beyond. adverse impacts on people and the environment: In 2024, this included a thorough external stakeholder – Specific activities: Nestlé considers the nature and scale of consultation, which comprised the CSV Council members its activities, such as sourcing, manufacturing, and additional representatives of affected stakeholders, distribution, marketing and sales, and how these may such as farmers from Côte d’Ivoire, Brazil and Pakistan, affect its stakeholders and natural resources. For example, non-governmental and not-for-profit organizations Nestlé assesses, through measurements, scientific (e.g. WWF, Oxfam, Ellen MacArthur Foundation), retailers methods, supply chain deep-dives and stakeholder (e.g. Walmart), suppliers and traders (e.g. Fonterra, Cargill) engagement the potential impacts of its water use, and academia (e.g. Johns Hopkins University), with their greenhouse gas emissions, waste generation, packaging inputs contributing to identifying and assessing Nestlé’s materials, human rights, nutrition and health outcomes, sustainability material topics. and community engagement. – Business relationships: Nestlé considers its indirect impact Financial materiality through business partners, such as suppliers, customers, Nestlé’s Enterprise Risk Management (ERM) framework is distributors, joint ventures, licensees and franchisees, and considered the key source for assessing financial materiality. how these may influence or contribute to its sustainability The ERM framework includes an assessment of Nestlé’s key performance. For example, Nestlé assesses, through field risks (financial and non-financial) rated using impact and visits, supplier engagement and targeted deep-dives the likelihood as criteria. The focus is on those risks that may potential impacts of its responsible sourcing requirements, impact the achievement of Nestlé’s financial objectives and supplier development programs, customer satisfaction sustainability commitments. initiatives, product quality and safety standards, and traceability systems. 18 Non-Financial Statement 2024 Part 1 – General Disclosures The overall risk-management process and evaluation of If required, cases relating to Nestlé’s risk-assessment the overall risk profile occurs at Group level, conducted processes are escalated to the Executive Board and related annually. ESG and sustainability topics are built into the ERM findings are reflected in decision-making processes at an process. This helps to ensure that the full range of material operational and strategic level. topics is incorporated into the risks that are considered across Nestlé. Risk management process and evaluation Sustainability Matters Risks Opportunities (2) Financial impact Likelihood The financial impact of risks and opportunities on the The probability that the financial impacts business model, financial targets and enterprise value. will occur. Rating on a scale of 1 – 6 Consolidation of the results at matter level The ERM assessment is conducted on an annual basis with The ERM assessment considers a five-year time horizon, the Executive Board. The ERM risk universe covers a broad with the assessment including individual interviews with range of topics including commercial (e.g. cyber, customer each Executive Board member to collect their ratings and and channel management), environmental (e.g. greenhouse comments on the key risks, emerging trends and longer- gas emissions), social (e.g. human rights, diversity and term outlook (beyond five years). Group Risk Management inclusion, health and safety), and governance (e.g. corporate consolidates the ratings and feedback to facilitate an governance and business ethics). Executive Board session (last held in August 2024) to confirm the risk assessment and identify owners and actions of mitigation strategies. The ERM heatmap is a 4x4 likelihood and impact matrix. (2) In 2024, only climate-related opportunities were assessed. Non-Financial Statement 2024 19 Part 1 – General Disclosures The following steps were undertaken to translate the ERM that have been implemented, where applicable. In addition, the ratings of risks to the CSRD approach of financial materiality: probability of a potential impact occurring was included in the – Where there was a one-to-one relationship there was a assessment to obtain a comprehensive picture of the potential direct mapping (e.g. Own workforce Health and Safety impacts. In particular, risks relating to the environmental and matched to ERM Employee Health and Safety). social impacts of the supply chain, including exposure to – Where there were multiple options, explanatory comments human rights risks, were reviewed at Group management were provided (e.g. Biodiversity and ecosystems matched level. There is also a detailed supplier risk and due diligence to ERM nature/biodiversity loss and GHG emissions). program, conducted by the Global Procurement function. – Where there were no equivalent matches, the ERM rating This is documented in detail in the assessment for was used and explanatory comments were provided (e.g. material impacts. Particular attention was paid to a Consumers and end-users Freedom of Expression does not consistent assessment based on defined criteria. The have an equivalent in ERM – subsequently, the explanation is severity of the impact was determined as follows: that: ‘Nestlé’s business model does not include products or – Actual negative impacts: The mean value was calculated services that may restrict freedom of expression’). from the assessments of scale, scope and irremediability. – Potentially negative impacts: The average of scale, scope Impact materiality and irremediability was also multiplied by the probability of The identified impacts were assessed using pre-defined occurrence, in the case of impacts on human rights, the objective assessment criteria to determine materiality. The probability was consistently set at 100%. severity results after consideration of the scale, scope, and – Potentially positive impacts: An average of the scale and actual irremediability of the respective impact. This scope was calculated and multiplied by the probability assessment may also take into account any remedial actions of occurrence. Evaluation per impact (3) Actual negative Actual positive Potentially negative Potentially positive impact impact impact impact Rating Extent of the impact Scale Severity of the impacts on the quality of life of the people affected or on the environment 1–6 Scope of the impact Scope Geographical extent and extent to which the value chain is affected (environmental issues) or number of people affected (social issues) 1–6 Reversibility of the impact Remediability Reversibility of the Reversibility of the impacts and the effort and duration required Not relevant impacts and the effort and duration required Not relevant 1–6 for this for this Probability of occurrence Likelihood 100% Not relevant Indication of the potential probability 1–6 Calculation result Severity (4) * likelihood (Scale + scope) * likelihood Severity (4) * likelihood (Scale+scope) * likelihood 1–6 (3) By assessing one assessment category as 6, the overall result of the impact becomes material. (4) Severity is defined as scale, scope and remediability. 20 Non-Financial Statement 2024 Part 1 – General Disclosures Calibration and refinement were conducted by the Group Assessing and addressing Compliance Committee in conjunction with relevant climate-related risks stakeholders. The methodology and approach were distributed to the subject-matter experts and senior The process for assessing and addressing climate-related management to ensure awareness and understanding. risks in Nestlé’s operations and along the value chain Calibration workshops were carried out to identify areas involves a comprehensive, multi-disciplinary approach for improvement or refinement. integrated globally throughout the organization. This assessment process is conducted annually and covers all stages of the value chain including direct operations, Assessing impacts, risks and opportunities upstream and downstream. Potential financial and operational impacts are determined For more information on how we identify and assess impacts by assessing transition risks (short and medium term) and and risks, please see the individual sustainability matter physical risks (short, medium and long term) as defined in sections in this Non-Financial Statement 2024. General Disclosures, in particular the yield impacts that In addition to the DMA general process described, Nestlé climate change might have across key commodities globally, regularly assesses its greenhouse gas (GHG) footprint to in order to ensure that Nestlé remains resilient in the face of quantify its impact on climate change. evolving climate conditions. Actual GHG emissions for Scopes 1, 2 and 3 are tracked The insights and findings of the climate-risk analysis are through an internal GHG accounting system (Greenhouse presented yearly to executive management and the Board of Gas Performance System (GPS)). GPS was developed Directors to integrate risk considerations into corporate internally for GHG accounting and reporting and the governance and strategic planning. The outcomes are methodology governing the system is aligned with the GHG incorporated into Nestlé’s strategic planning and fully Protocol Corporate Standard. GPS uses activity data directly integrated into Nestlé’s overall risk management processes from Nestlé’s central data systems (e.g. purchasing data across all levels of the organization. from SAP, packaging data from its packaging tracker) and it By incorporating the findings into its risk-management is updated on a quarterly basis. process and strategic decision-making, Nestlé is both Nestlé’s manufacturing IT system SHE-PM collects the reactive to imminent risks and proactive in opportunities activity data and emission factors, and performs the presented over varying timelines. This comprehensive calculation of the Group Scopes 1 and 2 GHG emissions. coverage not only supports immediate operational Finally, Nestlé tracks its GHG footprint against the Net adjustments but also long-term strategic alignments with Zero Roadmap glidepath, updating it based on the latest global climate targets. growth forecast and business changes to adapt its strategy Nestlé’s approach includes high-level assessments for and remain aligned to the net zero by 2050 path. product categories and in-depth scenario analyses across the value chain. – Top-down climate assessments are formally incorporated into the annual strategic portfolio reviews for Strategic Business Units and Globally Managed Businesses. Each unit considers how climate-related risks may affect its strategy and future business projections. The assessments consider risks at an individual Zone level and aggregated Global level. Non-Financial Statement 2024 21 Part 1 – General Disclosures – Bottom-up scenario analyses are conducted across the – Decision-making for decarbonization: The insights derived value chain to assess the resilience of Nestlé’s strategy from applying these scenarios guide strategic decisions under different climate scenarios. They are carried out in related to product development, resource allocation, risk partnership with Risilience, a UK-based company, which management and operational adjustments. By mapping is using methodologies and scenarios from its academic the potential impacts of varied emission trajectories, partner, the Centre for Risk Studies at the University decarbonization levers from energy efficiency of Cambridge Judge Business School. The relevant improvements to transitions in product portfolios can be operational teams, including procurement, agriculture better aligned toward lower-carbon alternatives. and business continuity management review the most – Impact on decarbonization decisions: Nestlé leverages significant climate-related risks, develop mitigation findings from these scenarios to strengthen the alignment strategies and identify opportunities. of the Nestlé Net Zero Roadmap. This reflects rigorous – The Nestlé Global Property Loss Prevention Program planning for both transition and physical risk factors and conducts in-depth assessments of natural catastrophe adaptation to the ever-evolving climate-related risks for existing sites and greenfield projects. This challenges affecting Nestlé’s global operations and includes risks such as precipitation, flood, hail, heat and value chains. drought. The process is based on the use of quantitative third-party models to generate a baseline for current expected losses and future expected losses from natural catastrophes. The objective is to proactively anticipate the changes in risk profile and define remedial action including associated capital expenditure at site level. It also supports decision-making for future standards of prevention and protection. Climate scenarios considered by Nestlé Nestlé has utilized climate scenarios in the following ways: – Climate scenarios utilization: Nestlé has employed three different Paris Agreement-consistent climate change mitigation scenarios based on low-, intermediate- and high-emission IPCC pathways to evaluate the transition risks associated with different trajectories of global decarbonization. These scenarios help identify what shifts might occur in the global economic, social and regulatory landscapes under varying climate outcomes and the necessary adaptation and mitigation strategies to undertake. – Analysis of risk impacts: – Low – Paris Ambition: This represents immediate coordinated global efforts to curb emissions, aiming to limit warming to 1.5°C by 2100. – Intermediate – RCP 4.5: This assumes reliance on existing or currently planned policies, potentially leading to a temperature increase of 2°C to 3°C by 2100. – High – RCP 8.5: This represents a scenario where few or no steps are taken to limit emissions, with potential warming of 4°C to 5°C by 2100. 22 Non-Financial Statement 2024 Part 1 – General Disclosures Climate modeling (5) Emissions trajectory High – RCP 8.5 Intermediate – RCP 4.5 Low – Paris Ambition Temperature increase by 2100 +4.0°C to +5.0°C 2.0°C to +3.0°C +1.5°C Global action against Few or no steps taken to Reliance on existing/planned policies Immediate and coordinated action climate change limit emissions. (not commitments). to curb emissions. Impact Modest technological Gradual shift to Rapid low-emissions innovations. shift to low-emissions low-emissions technologies. Consumer shifting to technologies. Modest shift low-emissions products. to low-emission products. Short and medium term Business scope Upstream, direct operations and downstream. Modeling simulations Net zero – Nestlé’s 20% absolute emissions decrease by 2025 and 50% by 2030. Modeling metrics Directional cumulative 10-year discounted cash flow (DCF) impacts on net zero business model under the three different scenarios. Risk category Transition risks Policy risks Actions to limit climate emissions include carbon tax, regulations linked to land and water use, restrictions and/or bans on specific materials, enhanced emissions-reporting obligations, etc. The scenario analysis modeled carbon tax as a proxy for policy risks. The analysis also considered changes in availability of key raw materials and their impact on raw material costs. Technology risks Costs related to decarbonization of the value chain, including replacement and substitution of emission- intensive assets, materials and services. The scenario analysis modeled the share of energy from renewables as a proxy for technology risks. Market risks Shifts in supply and demand as consumers switch to more sustainable products, or avoid specific categories, brands or materials due to environmental credentials. The scenario analysis modeled the proportion of consumers adopting more sustainable choices as a proxy for market risks. Physical risks Changing temperatures and weather extremes can affect Nestlé’s operations. Long term Scope 12 key raw materials representing 90% of Nestlé’s total spend (i.e. arabica coffee, robusta coffee, palm oil, cocoa, dairy, barley, maize, rice, soy, wheat, sugarcane and sugarbeet). Modeling simulations Assumed current footprint remains static until 2040. Modeling metric Projected percentage change in crop yields in 2040 compared to 2022 for selected raw materials. Risk category Physical risks Changing temperatures and weather extremes can affect the quality and availability of key raw materials through lower and variable yields, as well as shifts in the regions suitable for cultivation. (5) Note that the results of any modeling exercise are subject to uncertainty. In climate models, there are three main sources of uncertainty (scenario, model and natural variability). Non-Financial Statement 2024 23 Part 1 – General Disclosures Transition risks Risks to cash flows Nestlé analyzes transition risks under three types of Climate-change risks, including transition and physical risks, emission scenarios (i.e. low, intermediate, high) based on over the medium to longer term, were taken into account in various published models including the Intergovernmental assessing the risks to cash flows. Panel on Climate Change (IPCC) and the International Energy The outcomes of Nestlé’s assessments were considered in Agency (IEA) World Energy Outlook scenarios. the Group’s annual enterprise risk assessment and the annual In the context of a transition to a low-carbon economy, impairment review. For the latter, Nestlé considered how over the next 10 years transition-risk exposure will be climate risks may impact business forecasts prepared for affected by changes in policy, including potentially on testing its goodwill and indefinite life intangible assets (see carbon pricing and taxes, and businesses’ license to operate. note 9 of the Nestlé Group Consolidated Financial Statement). Consumer behaviors affecting preference for more sustainable products, together with new technology, including improvements to GHG performance, could also Assessing climate-related opportunities play a role. Depending on the global actions taken to address climate Nestlé chose to include only risks, rather than change, in the short to medium term it is estimated that opportunities, in the quantitative analysis of the climate transition risks will become material to the business. scenario analysis. Quantifying opportunities in climate scenario analysis is challenging due to limited data availability, and risks often have more established data Physical risks sources and methodologies for measurement. The qualitative assessment includes both risks and Climate-related risks such as heatwaves, drought and water opportunities. The qualitative assessment allows for a stress may impact raw material availability and quality broader consideration of potential opportunities, including through lower yields and greater yield variability. To estimate category-specific market and technology trends. the risk on commodities over the longer term, where the most of the risks are likely to materialise, Nestlé used the following modeling parameters focusing on the most Assessing pollution-related impacts probable climate trajectory (RCP 4.5). and risks Current and 2040 forecasted climate conditions were overlaid to estimate the percentage change in expected yields for the 12 commodities that were selected based on Core operations for water their materiality to the business, as well as their vulnerability to climate change. Nestlé employs a range of internationally recognized Key results of the process are described in Climate methodologies, tools and databases to assess pollution- change and include qualitative and quantitative climate related impacts and risks within its own operations and across modeling, scenario-based analysis and adaptation and its supply chain. These include the World Resources Institute mitigation strategies. (WRI) Aqueduct, the World Wildlife Fund (WWF) Water Risk Filter, the Alliance for Water Stewardship (AWS) principles, International Standard and the Food and Agriculture Organization (FAO) of the United Nation AQUASTAT datasets as well as the Water Footprint Network methodology. Nestlé conducts annual water-risk assessments at all of its factory locations. Additionally, it engages in environmental impact assessments and lifecycle assessments and aligns with ISO environmental management standards. These methodologies and tools are supplemented by an ERM Framework which includes detailed processes for risk identification, contextual issue assessments and decision-making for risk response. 24 Non-Financial Statement 2024 Part 1 – General Disclosures Locally, detailed hydrogeological studies are conducted Assessing water-related impacts and risks on an ad hoc basis, as per the criteria of the Nestlé Environmental Requirements (NER). These studies aim to Nestlé employs a range of internationally recognized assess and preserve the sustainability of local water methodologies, tools and databases to assess water-related resources or aim to guarantee the safe use of effluent water impacts, risks and opportunities within its operations and for irrigation. across its supply chain. These include WRI Aqueduct and the WWF Water Risk Filter, the AWS principles, FAO/AQUASTAT datasets as well Upstream for water and soil as the Water Footprint Network’s methodology. Nestlé conducts annual water risk assessments at all its factory In origins where Nestlé sources raw materials directly from locations. Additionally, Nestlé engages in environmental farmers (direct sourcing), it logs individual farm locations, impact assessments, life cycle assessments, and the use in order to assess water- and soil-related risks and of ISO environmental management standards. opportunities in each area. Nestlé uses the tools referred The methodologies and tools are supplemented by an to above to identify priorities related to water. ERM Framework which includes a detailed process for As part of Nestlé’s commitment to regenerative risk identification, contextual issue assessments and agriculture, it has developed a method of holistic collection decision-making processes for risk response. of primary data, covering key resources and inputs such as Locally, detailed hydrogeological studies are conducted soil, water, fertilizers and others. This data is used to identify ad hoc, as per the NER standard’s criteria. These studies risks and opportunities and drive priority actions within its aim to assess and preserve the sustainability of local direct sourcing, including in connection with pollution. water resources or guarantee the safe use of effluent water for irrigation. In geographies where Nestlé sources raw materials Engaging with stakeholders directly from farmers (i.e. direct sourcing), it is collecting precise farm locations to assess the water- and soil-related In addition to stakeholders consulted during its DMA, risks/opportunities. Nestlé uses the tools referred to above Nestlé also engages with a variety of stakeholders, including to identify priorities related to water. suppliers, local communities and others, to consult on In the context of the Nestlé Salient Issue Action Plan: water-related issues and pollution. Right to Water and Sanitation, risks, impacts and Nestlé also participates in water stewardship initiatives opportunities were assessed and prioritized using UNICEF/ and engages with local communities near its bottled-water World Health Organization data and primary data collected operations through a dedicated Community Relations through WASH4WORK tools. Process (CRP). This process facilitates stakeholder engagement and the development of collective actions to For more information on how we identify and access impacts manage water resources effectively. and risks, please see specific chapters. Through its Nestlé Responsible Sourcing Core Requirements, specific requirements are integrated into Nestlé’s procurement processes, so that suppliers comply with those requirements, as further described in Pollution. Non-Financial Statement 2024 25 Part 1 – General Disclosures Nestlé’s policies overview See Appendix 7 – Key Policies and Documents for detailed descriptions of all Nestlé policies disclosed in the Non-Financial Statement 2024. Nestlé has a variety of policies to manage material sustainability matters, descriptions of which can be found below, while further details of the key content, scope and implementation of these policies, related to each individual sustainability matter, can be found in the appropriate section of this Non-Financial Statement 2024. Policies materiality mapping Section Sustainability Matter Policies Climate Change Climate change adaptation Nestlé Net Zero Roadmap Nestlé Agriculture Framework Climate change mitigation Nestlé Net Zero Roadmap Nestlé Responsible Sourcing Core Requirements Energy Nestlé Net Zero Roadmap Pollution Pollution of water Nestlé Environmental Requirements (NER) Nestlé Responsible Sourcing Core Requirements Nestlé Agriculture Framework Pollution of soil Nestlé Responsible Sourcing Core Requirements Nestlé Agriculture Framework Water Water consumption Nestlé Environmental Requirements (NER) Nestlé Responsible Sourcing Core Requirements Nestlé Agriculture Framework Water withdrawals Nestlé Environmental Requirements (NER) Nestlé Responsible Sourcing Core Requirements Nestlé Agriculture Framework Water discharges Nestlé Environmental Requirements (NER) Nestlé Responsible Sourcing Core Requirements Nestlé Agriculture Framework Biodiversity Impacts on the state of species Nestlé Responsible Sourcing Core Requirements Impacts on the extent and condition Nestlé Responsible Sourcing Core Requirements of ecosystems and dependencies on Nestlé Agriculture Framework ecosystem services Climate change Nestlé Net Zero Roadmap Land-use, fresh water-use and Nestlé Responsible Sourcing Core Requirements sea-use change Nestlé Agriculture Framework Direct exploitation Nestlé Responsible Sourcing Core Requirements Resource use and Resource outflows related to Nestlé Policy on Environmental Sustainability circular economy products and services Nestlé Rules of Packaging Sustainability Own workforce Freedom of association, works Nestlé Corporate Business Principles councils and rights of workers Nestlé Code of Business Conduct Nestlé Human Rights Policy Nestlé Employee Relations Policy Nestlé Policy on Conditions of Work and Employment Health and safety Nestlé Corporate Business Principles Nestlé Human Resources Policy Nestlé Policy on Safety and Health at Work 26 Non-Financial Statement 2024 Part 1 – General Disclosures Section Sustainability Matter Policies Own workforce (continued) Gender equality and equal pay for Nestlé Total Rewards Policy work of equal value Diversity Nestlé Corporate Business Principles Nestlé Human Resources Policy Nestlé Policy Against Discrimination, Violence and Harassment at Work Nestlé Global Guideline on Disability Inclusion Nestlé Global Parental Support Policy Workers in the value chains Adequate wages Nestlé Human Rights Policy Nestlé Human Rights Framework and Roadmap Nestlé Responsible Sourcing Core Requirements Child labor Nestlé Human Rights Policy Nestlé Human Rights Framework and Roadmap Measures against violence and Human Rights Policy harassment in the workplace Human Rights Framework and Roadmap Nestlé Responsible Sourcing Core Requirements Health and safety Forced labor Nestlé Human Rights Policy Nestlé Human Rights Framework and Roadmap Water and sanitation Nestlé Responsible Sourcing Core Requirements Nestlé Human Rights Policy Affected communities Adequate food Nestlé Human Rights Policy Nestlé Responsible Sourcing Core Requirements Water and sanitation Nestlé Responsible Sourcing Core Requirements Nestlé Human Rights Policy Land-related impacts Nestlé Human Rights Framework and Roadmap Nestlé Responsible Sourcing Core Requirements Nestlé Human Rights Policy Consumers and end users Privacy Privacy notice on nestle.com Nestlé Privacy Policy Nestlé Privacy Standard Access to (quality) information Nestlé’s Good for You strategy Nestlé Policy on Micronutrient Fortification of Foods & Beverages Health and safety and security Nestlé Quality Policy of a person Access to products and services Nestlé Quality Policy Popularly Positioned Products Nestlé Policy on Micronutrient Fortification of Foods & Beverages Nestlé’s Good for You strategy Responsible marketing practices Nestlé Marketing Communication to Children Nestlé Policy for implementing the WHO Code Governance Corporate culture Nestlé’s Compliance Management System (CMS) Nestlé Corporate Business Principles Nestlé Code of Business Conduct Protection of whistle-blowers Nestlé Code of Business Conduct Nestlé Policy Against Discrimination, Violence and Harassment at Work Non-Financial Statement 2024 27 Part 2 – Environmental Disclosures In this section, Nestlé provides disclosures on Guided by the Net Zero Roadmap, Nestlé has been its material impacts, risks and opportunities adapting its business to deliver reductions in GHG emissions relating to environmental matters. across all three scopes of its activities, indicating a comprehensive approach to addressing both direct and indirect emissions across the value chain. Nestlé aims to reduce its greenhouse gas (GHG) emissions by 20% by 2025 Climate change and 50% by 2030 from 2018 levels, on the road to net zero by 2050 at the latest.(2) In this section More specifically, on top of its net zero target, Nestlé – Climate change adaptation. submitted its Forest, Land and Agriculture (FLAG) and – Climate change mitigation. energy/industry targets, which were approved by the – Energy. Science Based Targets initiative (SBTi) in 2023. As per those targets, Nestlé aims to reduce absolute Scope 3 FLAG GHG emissions by 50% by 2030 and 75% by 2050.(3) Nestlé aims Main targets (1) to reduce absolute Scopes 1, 2 and 3 energy/industry GHG – Nestlé aims to reduce its greenhouse gas (GHG) emissions by 50% by 2030 and 90% by 2050, compared to a emissions by 20% by 2025 and 50% by 2030 from 2018 baseline. 2018 levels, on the road to net zero by 2050 at Targets have been set according to criteria approved by the latest.(2) the SBTi, ensuring that they are compatible with what the – Nestlé aims to reduce absolute Scope 3 FLAG GHG latest climate science deems necessary to meet the goals of emissions by 50% by 2030 and 75% by 2050.(3) the Paris Agreement. Since 2023, progress has been reported annually using quantitative data measured as a GHG percentage net reduction, versus a 2018 baseline. Nestlé reports against its targets according to the recently Nestlé Transition Plan finalized SBTi FLAG-sector guidance. For the 2024 reporting year, Nestlé is continuing to categorize GHG emissions for Strategy and policies ingredients by specific gas types. It is also differentiating between FLAG and energy/industry (non-FLAG) emissions, In 2019, Nestlé announced its ambition to reach net zero in accordance with SBTi guidelines. Ingredients are the most greenhouse gas (GHG) emissions by 2050, and, in 2020, significant category of Nestlé’s emissions and where most published its timebound plan through its Nestlé Net Zero FLAG emissions occur, as broken down in the Net Zero Roadmap. The Net Zero Roadmap has been approved by Roadmap. Nestlé’s progress at the end of 2024: internal management and supervisory bodies, in addition to – Achieved a net reduction in absolute emissions of Nestlé’s shareholders, which approved it during Nestlé’s 20.38% versus a 2018 baseline, from GHG reductions Annual General Meeting in 2021. and removals. – Achieved a reduction in absolute emissions of 18.59% versus a 2018 baseline from GHG reductions. – Achieved an absolute amount of 1.64 million tonnes of carbon removals including landscape projects. – Further GHG reductions and removals are being planned, aiming to reach a 50% reduction in absolute terms by 2030, in line with Nestlé Net Zero Roadmap. (1) The definitions and calculation methodology applicable to track progress on these targets can be found in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024. (2) Covers emissions related to Nestlé’s net zero targets. Net reductions (%) of GHG emissions versus 2018 baseline. Includes removals from inside Nestlé’s value chains and sourcing landscapes (pending the publication of the SBTi guidance on Neutralization). (3) Net reduction of GHG emissions versus 2018 baseline (%). 28 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Tracking the evolution of Nestlé’s GHG footprint with a Evolving packaging percentage GHG emissions reduction, versus a 2018 Investments in innovations and new business models help baseline, enables Nestlé to confirm the effectiveness of its address the end-of-life challenges associated with emissions reduction and removal actions and to assess packaging. Nestlé has increased its efforts in the use of its progress toward its Net Zero target by 2050. It also recycled plastic packaging. That, and the collection, demonstrates the improvements Nestlé has made to help recycling and reuse of packaging contribute to lowering mitigate climate change since the launch of its Net Zero the emission factor component for Nestlé products. Roadmap in 2020. Tools and methods used to track and Nestlé’s actions in connection with this lever are guided visualize the progress are enhanced year-on-year following by the following targets: a continuous improvement approach. – By 2025, Nestlé aims to design above 95% of its plastic packaging for recycling and continues to work toward Nestlé Net Zero Roadmap and decarbonization levers 100% being recyclable or reusable. The Nestlé Net Zero Roadmap details the scope of emissions – By 2025, Nestlé aims to reduce the use of virgin plastic in included in the SBTi target scope (91.74 million out of packaging by one third (versus a 2018 baseline). 101.6 million tonnes CO2e in 2018), as further described in Gross Scopes 1, 2, 3 and total GHG emissions, and outlines Driving toward more sustainable logistics key decarbonization levers, as described below. This decarbonization lever includes actions such as: – Optimizing routes, loading vehicles more efficiently and Responsible sourcing of ingredients working with logistics providers to switch to low-emission This decarbonization lever relates to how Nestlé is working fuels. These include green electricity, green hydrogen and with farmers, suppliers and communities to source biofuels made from waste rather than virgin crops. ingredients in ways that help improve ecosystems, reduce – Using more rail and intermodal transport options. emissions and enhance livelihoods. By doing so, the – Minimizing energy consumption in warehouses, switching production of agricultural raw materials is benefiting more to renewable electricity and reducing waste. directly from the ecosystem which enables lower emission factors due to the decrease of fossil fuel inputs. Using the power of Nestlé brands and products Nestlé’s actions in connection with this lever are guided As consumer tastes change and preferences move toward by the following targets: more transparent and sustainable products and services, – Nestlé aims to achieve and maintain 100% assessed brand strategies and plans will continue to adapt, embracing deforestation-free primary supply chains: meat, palm oil, sustainability and meeting market demand, including by pulp and paper, soy, sugar, cocoa,(4) and coffee.(4) offering products with a lower carbon footprint. For more details on the KPI called ‘Percentage assessed deforestation-free for primary supply chains’ see Transforming the product portfolio Biodiversity and ecosystems. By lowering the environmental impact of product recipes, – By 2030, Nestlé aims for 100% of key ingredient volumes Nestlé aims to transform the brand portfolio. Portfolio and to be responsibly sourced. Knowing the origin of raw product managers incorporate GHG emissions information materials means it is possible to seek to improve into their decision-making, including selecting which performance against the Nestlé Responsible Sourcing ingredients to use and continuously improving eco-design Core Requirements and work toward positive outcomes tools used in R&D. To support this, more environmental for people, planet and climate. For more details on the impact data about ingredient supply chains are being made relevant KPIs see Nestlé Specific KPIs. available at the product level. Nestlé’s central data tracking – By 2025, Nestlé aims for 20% of key ingredients to be systems measure progress and improve the allocation of sourced from farmers adopting regenerative agriculture emissions and reductions to specific businesses. GHG practices, and 50% by 2030. For more details on the KPI accounting methodologies used internally help brands make called ‘Percentage of key ingredients sourced from comparisons and translate corporate targets into business- farmers adopting regenerative agricultural practices’ see specific actions. Biodiversity and ecosystems. (4) By 2025. Non-Financial Statement 2024 29 Part 2 – Environmental Disclosures Using renewable energy to manufacture products – Integrating trees into grazing land in a synergistic way: Nestlé’s actions in connection with this lever are guided by Trees on grazing land can support grass yields or enhance the following target: production, providing additional fodder. Using compost – By 2025, Nestlé aims to source 100% renewable electricity made from organic waste such as coffee pulp can enrich in all its manufacturing sites. the soil, building up organic matter and improving both soil structure and its potential to store carbon. Nestlé is increasing the proportion of renewable electricity – Switching to organic fertilizers wherever possible: Organic sourced in its manufacturing sites through power purchase fertilizers help the structure of the soil and its ability to agreements, green tariffs, renewable energy certificates and hold water and nutrients while avoiding the run-off of on-site production. For the geographies where no solutions synthetic alternatives. exist locally, Nestlé will continue to advocate for the creation – Adopting other regenerative agriculture practices: of the appropriate solutions. Alongside established forms of Farming techniques like reduced tillage, crop rotation and renewable electricity, such as wind and solar, Nestlé also cover crops reduce soil disruption. This helps to avoid plans to work with suppliers to increase the availability of nitrogen depletion, reduce soil erosion and control pests renewable thermal energy generated from sources such as and weeds. biogas and biomass, by 2030. – Planting trees and shrubs to create natural protection: Further emissions reductions are expected from Natural barriers created through intercropping and alley increasing the efficiency of operations. Many energy cropping protect crops against severe weather and efficiency projects are already planned for Nestlé’s sites erosion. This helps improve yields and capture carbon. across the globe, ranging from LED lighting systems to – Shade management agroforestry: Shade trees protect optimizing energy consumption during non-production times crops such as coffee from excessive heat. They also and recovering heat energy. increase organic matter in the soil, increasing its capacity Other actions include phasing out refrigerants with a high to retain water and store carbon. Trees planted for shade global warming potential (GWP), such as hydrofluorocarbons, also sequester carbon themselves. in Nestlé’s industrial refrigeration systems and replacing – Help restoring forests and peatlands: Healthy ecosystems these with new, natural refrigerants with zero or low GWP, store significant amounts of carbon. Forest restoration such as ammonia, CO2 and hydrocarbons. creates carbon sinks and protects waterways, wildlife and biodiversity. Peatland restoration, in addition to capturing Reducing and removing carbon from the atmosphere large amounts of carbon, maintains water tables and This decarbonization lever focuses on the use of nature- reduces fire risks. based solutions, such as agroforestry, soil management and peatland and forest restoration to lock GHGs in the ground. Advocacy: Using Nestlé’s voice to galvanize action All those levers deliver carbon removals but also a share of Nestlé advocates for fair and ambitious climate-change carbon reductions through the ecosystem services they policies that encourage the broader decarbonization of the deliver to the relevant agricultural productions, which in food and agriculture sector. exchange help reduce fossil fuel-based inputs. Current priorities include advocating for greater private- Nestlé’s actions under this lever include support to sector ambition on regenerative agriculture, and the implement the following practices: incorporation of regenerative agriculture principles into – Planting vegetation around water sources and wildlife public policy. corridors: Riparian buffers are uncultivated green areas that Nestlé also supports greater overall ambition on climate protect water sources from pollutants and erosion that may and nature through multi-lateral processes including the be caused by nearby land use. They act as filtration systems United Nations Framework Convention on Climate Change between agricultural and urban land and bodies of water, Conference of the Parties (UNFCCC COP) and the United improving water quality while also capturing carbon. Nations Convention on Biological Diversity Conference of the Parties (UN CBD COP). 30 Non-Financial Statement 2024 Part 2 – Environmental Disclosures In 2024, Nestlé looked for ways to support the Capital expenditures and assets development of ambitious and investible Nationally Nestlé’s physical assets may be impacted by climate change Determined Contributions (NDCs) on climate from countries (e.g. facilities in water-stressed areas, extreme weather which are due to be updated and submitted by February events damaging facilities). It is addressing this by following 2025 by Parties to the United Nations Framework Convention the ISO 14001 Standard on Environmental Management on Climate Change (UNFCCC). Nestlé also advocates for which helps Nestlé to understand climate-related risks and ambitious and progressive National Biodiversity Strategies opportunities for its assets. Where feasible, it takes relevant and Action Plans (NBSAPs) under the UN Convention on actions, including capital investments, to reduce the impact Biological Diversity (UN CBD). of climate-related factors on physical assets and the risk of Nestlé works on several other advocacy activities business interruption. In terms of weather-related incidents, including supporting policies consistent with applying a as part of the Nestlé Global Property Loss Prevention meaningful price on carbon emissions, which will help Program, an in-depth identification of natural hazard enable access to lower-carbon technologies such as exposure is made for existing sites and greenfield projects to alternative fuels for maritime shipping and supporting proactively anticipate potential risks such as floods and transparent and easy-to-understand environmental windstorms. This helps in the decision-making process for product labeling. future standards of prevention and protection, as well as preparation if an event occurs in the current sites. Alignment to business model and financial planning Nestlé’s transition plan, highlighted above, is fully embedded in the strategy of the Group to ensure its realization as part Climate-related risks of its sustainable growth. The following three sections cover both adaptation and mitigation actions. Nestlé has undertaken a process to identify climate-related risks as part of its comprehensive risk management strategy, Revenues using the Task Force on Climate-related Financial As part of the Net Zero Roadmap, Nestlé is transforming Disclosures (TCFD) framework for risk categorization. products in line with consumer trends and choices. It is Adaptation strategies to these risks involve enhancing launching products that have a lower carbon footprint and operational resilience (resilience of own operations as well contribute to a balanced diet. This includes more plant- as upstream and downstream supply chains) and based options. It is also reformulating products using modifying business practices, as well as taking proactive ingredients with a lower carbon footprint. measures to reduce overall GHG emissions and align with global climate goals. Acquisitions and divestments The resilience analysis Nestlé conducted in 2023 used Nestlé is considering climate-related risks and opportunities scenario-based modeling to identify climate-related impact in the acquisition and divestment decision-making process to risks and opportunities (see General Disclosures: Double ensure alignment of its portfolio to its transition plan. In materiality assessment for more details). addition to the considerations on fit with strategy, attractiveness of categories, ability to win and resource intensity, an ESG due diligence is performed as part of the mergers and acquisitions process and is considered alongside financial due diligence in the decision-making process. Non-Financial Statement 2024 31 Part 2 – Environmental Disclosures Resilience analysis results – climate-related transition risks In the short to medium term, Nestlé’s current mitigation strategy remains appropriate for physical risks with no material changes. Nestlé has however, identified a range of potential transition risks. These can vary significantly depending on the nature and speed at which countries act to align to a Paris Agreement trajectory. Climate-related transition risk impacts, mitigations and future opportunities, 10-year time horizon Impacts under Estimated directional cumulative 10-year climate discounted cash flow impacts with trajectory (5) Nestlé’s current mitigation strategy Mitigation strategy under the Nestlé Net Zero Roadmap Future opportunities Risk category Value chain Risks/impacts assuming no mitigation Intermediate emissions + 2.0°C – +3.0°C (6) Low emissions +1.5°C Policy Operations – Increase in raw materials costs. Med High – Aim to source 100% renewable electricity in Nestlé’s By implementing the Net Zero Roadmap, Nestlé is already addressing a Raw materials – Restrictions in land use. manufacturing sites by 2025; 95.3% achieved in 2024. significant part of the transition risks identified that it could potentially face – Increase in energy costs. – Aim for 20% of key ingredients to be sourced from farmers during the decade following the assessment, resulting in a net reduction of – Increase in costs for packaging materials. adopting regenerative agriculture practices by 2025 and 50% by its exposure. – Increase in cost of recycled packaging 2030; 21.3% achieved in 2024. In particular, to support farmers in: Nestlé continues to review opportunities to reduce its risk exposure materials due to constraint in supplies, – Implementing agroforestry. levels further and address upside potential of society’s transition to a e.g. recycled PET. – Increasing productivity without increasing land use. low-carbon economy. – Enhancing resilience to changing weather patterns. On this basis Nestlé anticipates the following opportunities: – Prioritize deployment of climate-smart agriculture practices in – Increasing the resilience of its supply chain through climate-smart highly exposed geographies. agriculture practices. – Diversify sourcing origins from highly exposed geographies. – Reducing direct costs from lower-emission sources of energy. – Product ingredients substitution: by 2030, plant-based proteins – Limiting exposure to regulatory changes and increased operation costs are anticipated to contribute 0.74 million tonnes CO2e to Nestlé’s due to carbon prices via reductions in its emissions. GHG emissions reduction target. – Increasing revenues resulting from more demand for low-emission – Virgin plastic reduction by one-third by 2025; 21.3% reduction products and services. achieved in 2024. – Growing consumer demand for low-carbon products such as plant-based foods and drinks. Market Brands and – Loss of revenue and/or missed Low Med – Constant review of products and business models based on – Continually upgrading its plant-based offerings in terms of taste, portfolio growth opportunities. environmental footprint. texture, flavor and nutrition. – 100% of R&D-led projects are assessed for potential climate impact. – Leveraging its expertise in plant proteins to expand its dairy-alternative offerings. Technology Operations – Asset write-downs, investments in Low Low – Switch to low-emission technologies. – Constantly assessing opportunities to reduce its products’ carbon low-emission technology to meet footprint, through changing recipes and by using alternative ingredients. market regulation. – Nestlé’s Good for You, Good for the Planet strategy demonstrates how climate change is integral to Nestlé’s financial planning and strategy. (5) Nestlé does not display the high-level emissions scenario due to its low impact level. Modeling the future is inherently uncertain and this increases over longer time horizons. Nestlé uses hypothetical scenarios – actual events may be significantly different. The statements and results summarized in this table do not represent forecasts of expected risk and outcomes. (6) Anticipated financial effects: CHF 7 billion < High < CHF 11 billion | CHF 3 billion < Medium < CHF 7 billion | Low < CHF 3 billion. 32 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Climate-related transition risk impacts, mitigations and future opportunities, 10-year time horizon Impacts under Estimated directional cumulative 10-year climate discounted cash flow impacts with trajectory (5) Nestlé’s current mitigation strategy Mitigation strategy under the Nestlé Net Zero Roadmap Future opportunities Risk category Value chain Risks/impacts assuming no mitigation Intermediate emissions + 2.0°C – +3.0°C (6) Low emissions +1.5°C Policy Operations – Increase in raw materials costs. Med High – Aim to source 100% renewable electricity in Nestlé’s By implementing the Net Zero Roadmap, Nestlé is already addressing a Raw materials – Restrictions in land use. manufacturing sites by 2025; 95.3% achieved in 2024. significant part of the transition risks identified that it could potentially face – Increase in energy costs. – Aim for 20% of key ingredients to be sourced from farmers during the decade following the assessment, resulting in a net reduction of – Increase in costs for packaging materials. adopting regenerative agriculture practices by 2025 and 50% by its exposure. – Increase in cost of recycled packaging 2030; 21.3% achieved in 2024. In particular, to support farmers in: Nestlé continues to review opportunities to reduce its risk exposure materials due to constraint in supplies, – Implementing agroforestry. levels further and address upside potential of society’s transition to a e.g. recycled PET. – Increasing productivity without increasing land use. low-carbon economy. – Enhancing resilience to changing weather patterns. On this basis Nestlé anticipates the following opportunities: – Prioritize deployment of climate-smart agriculture practices in – Increasing the resilience of its supply chain through climate-smart highly exposed geographies. agriculture practices. – Diversify sourcing origins from highly exposed geographies. – Reducing direct costs from lower-emission sources of energy. – Product ingredients substitution: by 2030, plant-based proteins – Limiting exposure to regulatory changes and increased operation costs are anticipated to contribute 0.74 million tonnes CO2e to Nestlé’s due to carbon prices via reductions in its emissions. GHG emissions reduction target. – Increasing revenues resulting from more demand for low-emission – Virgin plastic reduction by one-third by 2025; 21.3% reduction products and services. achieved in 2024. – Growing consumer demand for low-carbon products such as plant-based foods and drinks. Market Brands and – Loss of revenue and/or missed Low Med – Constant review of products and business models based on – Continually upgrading its plant-based offerings in terms of taste, portfolio growth opportunities. environmental footprint. texture, flavor and nutrition. – 100% of R&D-led projects are assessed for potential climate impact. – Leveraging its expertise in plant proteins to expand its dairy-alternative offerings. Technology Operations – Asset write-downs, investments in Low Low – Switch to low-emission technologies. – Constantly assessing opportunities to reduce its products’ carbon low-emission technology to meet footprint, through changing recipes and by using alternative ingredients. market regulation. – Nestlé’s Good for You, Good for the Planet strategy demonstrates how climate change is integral to Nestlé’s financial planning and strategy. Non-Financial Statement 2024 33 Part 2 – Environmental Disclosures Resilience analysis results – climate-related physical risks impacts In addition to transition risks, the resilience analysis has also highlighted physical risks over the long term related to Nestlé’s key ingredients, with a potential reduction in commodity yields or geographical shifts of commodities sourcing due to climate change driving changes in growing conditions. Impact of climate and physical risks on Nestlé’s key ingredient yields by 2040 Modeled yield changes by 2040 vs. 2022 based on intermediate emissions scenario. +2% increase or more UK France -2% decrease to +2% increase -2% decrease or more Germany China Ingredients Italy Spain Arabica US Robusta Palm oil Honduras Vietnam Cocoa Colombia Dairy Barley Brazil Indonesia Maize Mexico Ecuador Ghana Pakistan India Rice Soy Chile Wheat Argentina Côte d’Ivoire South Africa Thailand Malaysia Australia Sugarcane Sugarbeet The results of Nestlé’s resilience analysis provide Operational footprints and facilities comprehensive assessments of both physical and transition Nestlé’s Global Property Loss Prevention Program involves risks under various climate-related scenarios tied to different identifying natural hazard exposures such as floods and emissions pathways. Here is a summary of key outcomes: windstorms for existing sites and greenfield projects. This proactive approach informs decision-making for future Raw materials and supply chains prevention and protection standards. The analysis forecasts increased heatwaves, droughts and Nestlé projects an increase in climate-induced disruptions water stress up to the year 2040, which are likely to affect which could damage operational capabilities and assets. A the availability and quality of key raw materials that could slight increase in losses beyond current levels might occur potentially lead to increased price volatility and input costs. due to the heightened severity and frequency of extreme The findings suggest that some raw materials may weather events, but Nestlé’s current mitigation strategy experience yield reductions which may in turn influence remains appropriate. supply chain stability. 34 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Business model adjustments R&D initiatives As markets evolve with greater emphasis on sustainable Nestlé’s R&D strategy includes leveraging science to practices, shifts in consumer demand toward products with innovate and respond to the challenges posed by climate lower environmental footprints are anticipated. This risks. This includes the development of products that meet transition, while posing a challenge, also represents an sustainability criteria from their design phase, considering a opportunity to adjust product lines and business models to reduced environmental impact across their lifecycle. cater for this changing consumer landscape. Engagement and advocacy Business resilience Nestlé is actively engaging with stakeholders, including Nestlé believes that the Group continues to demonstrate the governments and industries, to encourage fair and resilience and agility to transition to a lower-carbon model. ambitious policies that support the transition to a It will create new growth opportunities as part of its ambition sustainable low-carbon economy. This engagement is critical to help deliver regenerative food systems at scale, for to aligning its business strategy with global efforts to combat instance, by exploring new sourcing origins. This is due to climate change. Nestlé’s broad geographic scope, supply chain flexibility, Overall, Nestlé’s strategic adaptation to climate change R&D, diversified product portfolio, leading brands and is comprehensive, involving modifications across product capital strength. development, operational practices and broader corporate engagements. These efforts are in line with its Strategic and financial planning net zero targets. The resilience analysis not only quantifies risks but also helps in strategic and financial planning to navigate these Anticipated financial effects from material physical and challenges effectively, aligning closely with broader goals transition risks and potential climate-related opportunities such as those outlined in the Nestlé Net Zero Roadmap. Nestlé anticipates financial effects for assets and business This includes consideration of how climate-related issues activities at material physical risks as well as transitions risks will impact on future demand for products and services by using a qualitative and quantitative modeling process. and potential implications on strategic and financial planning. TCFD recommendations are implemented and climate Investments in areas such as R&D, new technology, modeling across the value chain is developed. Climate business continuity, as well as acquisition and divestment scenarios are considered as described above and assess the activity, take into account the potential climate-related resilience of operations, upstream supply chains and Nestlé’s factors assessed to date. portfolio under different external conditions. Nestlé has the capability to adjust its strategic and business model to accommodate the impacts of climate Policies change through various adaptive measures and forward- See Appendix 7 – Key Policies and Documents for looking initiatives. These strategic adjustments are deeply detailed descriptions of all Nestlé policies disclosed in rooted in the overall corporate response to climate-related the Non-Financial Statement 2024. challenges and risks, as well as opportunities. The Nestlé Net Zero Roadmap, Nestlé Agriculture Framework and the Nestlé Responsible Sourcing Core Product innovations Requirements define requirements, practices and plans Nestlé is diversifying and adapting product lines, for to enable mitigation and adaptation to climate change. example with plant-based and lower carbon-footprint Nestlé’s policies cover the end-to-end value chain (as options. This not only reflects shifts in consumer defined in General Disclosures) and describe practices by preferences, but also aligns with sustainability targets. value chain steps and the types of practices in the sourcing of raw material ingredients including requirements on Operational efficiencies human rights, environmental conservation and restoration, Enhancements in logistics and operational activities are also resources management and water, ethics, labor and a key part of Nestlé’s adaptive strategy. Investments in low- working conditions. carbon logistics and shifts toward renewable energy sources in manufacturing processes illustrate proactive measures to mitigate emission levels and optimize operations. Non-Financial Statement 2024 35 Part 2 – Environmental Disclosures The key focuses, ambitions and actions of the policies Reducing dairy farm carbon emissions with manure above are as follows: separation – Zone Latin America – Implementation of the Nestlé Responsible Sourcing Nestlé is exploring different approaches to reduce dairy’s Core Requirements: GHG emissions. It is working with farmers, suppliers, – Nestlé aims to achieve and maintain 100% assessed leading universities, industry organizations, start-ups deforestation-free primary supply chains: meat, palm and local governments to research, test, validate and scale oil, pulp and paper, soy, sugar, cocoa,(7) and coffee,(7) up different agricultural solutions and technologies, with 93.5% achieved in 2024. This helps to enable including for dairy livestock. For example, better manure Nestlé to lower the carbon intensity of the ingredients it management can help reduce dairy farm emissions. In purchases thanks to the statistical land use change Mexico, farmers are separating cow manure into liquids (sLUC) discounting methodology. and solids. The solids are composted and returned to – Responsibly sourced verified key commodities volumes the soil while the liquid is incorporated into the (44.5% achieved in 2024) which include certification irrigation system. credentials on coffee, cocoa, palm oil, soy and sugar, and helps to enable Nestlé to lower the carbon intensity of the ingredients it purchases thanks to lower-carbon MMZero Carbon Program – Zone Europe farm practices implemented. In Zone Europe, Nestlé’s Manufacturing Masterplan Zero – Implementation of the Nestlé Net Zero Roadmap and the (MMZero) Carbon Program started in 2022. MMZero actions and levers as described in Strategy and policies. identifies opportunities for up to 50% energy use reduction – Implementation of the Nestlé Agriculture Framework. and up to 100% carbon reduction (Scope 1 and 2 Nestlé’s regenerative agriculture program is designed to emissions) in Nestlé’s factories. This led to Nestlé enhance farm resilience and, in turn, mitigate climate risk rethinking its factory operations aiming to create more for key ingredients. More details can be found in Pollution efficient manufacturing lines, recycle more waste energy, and Biodiversity and ecosystems. and switch to heat pumps instead of fuel-driven steam boilers. In 2023 and 2024, Nestlé has installed in Zone Europe eight industrial heat pumps, which replaced Actions and resources 100 Million kWh per year of natural gas and saves 20 000 tCO2 per year. At the end of 2024, in Zone Actions have been taken along the entire value chain in Europe, 50 out of 96 factories are included in the 2024, with 65% of GHG reductions achieved in sourcing MMZero program. and the remaining across manufacturing, logistics, recipe management, packaging and removals. The Nestlé Net Zero Roadmap defines the time horizon Driving circularity with biogas production – for when key actions will be completed quantitatively, with Zone Europe milestones for achievements in 2025, 2030 and 2050. Nestlé is partnering with farmers (directly or through fuel Quantitative and qualitative progress on actions and/or providers) to leverage biogas production from manure and action plans is disclosed on an annual basis. agriculture waste. This biogas can then be used as fuel in See Strategy and policies and the Nestlé Net Zero heavy duty vehicles. In 2024, more than 1500 tonnes of Roadmap for more details on actions, as well as information biogas in Europe have been used instead of an equivalent on decarbonization levers. quantity of fuels coming from fossil origins. (7) By 2025. 36 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Libby’s pumpkin and regenerative agriculture – Nestlé’s Net Zero Roadmap: SBTi Corporate Net-Zero Zone North America Standard Criteria and GHG Protocol Corporate Standard Over the years, Nestlé’s strong relationship with the The Nestlé Net Zero Roadmap follows the rules established by central Illinois farmers that supply for Libby’s has the SBTi following the GHG Protocol Corporate Standard. Climate encouraged the early adoption of regenerative agriculture targets are based on the latest GHG Protocol yearly releases. practices. These pumpkin farmers are using practices that The scope is described in Appendix 1 – Reporting Scope and help improve a variety of key environmental outcomes Methodology for ESG Key Performance Indicators 2024. such as soil health, water consumption, productivity and Acquisitions and divestitures are also treated according to on-farm emissions. For example, during the 2023 crop the rules established by the SBTi. year, farmers who supply for Libby’s emitted 2132 fewer Scope 3 emissions are calculated as per the GHG Protocol tonnes of CO2e emissions compared to conventional categories, in accordance with SBTI rules. farming practices. Nestlé includes the following GHG Protocol categories in its Scope 3 GHG emissions inventory: – Purchased goods and services. – Capital goods. Targets, metrics and performance – Fuel- and energy-related activities (not included in Scope 1 or 2). For targets related to climate change mitigation and – Upstream transportation and distribution. adaptation, see Strategy and policies. – Waste generated in operations. – Business travel. Science-based target setting – Employee commuting. Nestlé has structured its targets to be ambitious and in line – Upstream leased assets. with the Paris Agreement objectives to combat climate – Downstream transportation and distribution. change effectively. These science-based targets position – Use of sold products. Nestlé as a leader in aligning with global efforts to help – End-of-life treatment of sold products. mitigate climate change. – Investments. Specifically, the targets contain the following validated aspects: Categories excluded from calculation: – Science-based targets: Targets are approved by the SBTi, – Processing of sold product. and are aligned with a pathway to limit global warming to – Downstream leased assets. 1.5°C. This alignment is crucial as it ensures targets are not – Franchises. only ambitious but also scientifically grounded to meet international climate goals. Categories calculated but excluded from SBTi target scope: – Company-wide application: Targets apply Company-wide, – Purchased services. across all significant scopes of emission – Scope 1 (direct – Capital goods. emissions), Scope 2 (indirect emissions from purchased – Upstream leased assets. energy), and pertinent categories within Scope 3 (other – Use of sold products. indirect emissions). This comprehensive approach – Investments. encapsulates emissions from direct operational emissions to those from Nestlé’s extended supply chain. These categories have been excluded from Nestlé’s Net Zero SBTi target because they are not applicable to Nestlé business Target setting and coverage: Targets are in absolute value or because of the limited ability of Nestlé to address their versus the 2018 baseline. Aligned with SBTi rules, certain reductions. However, these categories continue to be emissions where Nestlé has very limited reach to decrease monitored in Nestlé’s total GHG inventory. Despite this have been descoped. They represent 10% of the Nestlé exclusion, 90% of Nestlé’s total Scope 3 emissions are Scope 3 footprint. Accordingly, Nestlé’s net zero target is included in the net zero scope and target. All other categories covering 100% of baseline Scope 1 and 2 emissions and as per the GHG Protocol Corporate Accounting and Reporting 90% of baseline Scope 3 emissions. Standard and the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard are included. Non-Financial Statement 2024 37 Part 2 – Environmental Disclosures Energy consumption and mix The energy consumption shows a slight increase versus Renewable electricity sourced in Nestlé's manufacturing sites 2023 despite the energy savings projects delivered. at year end (percentage) Production volumes increase and changes in product mix are the main reason for the increase in energy consumption. 91.9 95.3 100 Energy consumption and mix (percentage) 2024 Percentage of fossil sources in total energy consumption 62.7 Percentage of renewable sources in total energy consumption 37.2 2023 2024 2025 Gross Scopes 1, 2, 3 and total GHG emissions Target year Nestlé’s Scope 3 emissions are calculated as per the Nestlé continued to progress toward its target: aim to GHG Protocol categories, in accordance with SBTi rules. source 100% renewable electricity in all its manufacturing See Science-based target setting for details. sites by 2025. Nestlé GHG footprint breakdown by Scope Nestlé Specific KPIs (percentage) (million tonnes CO2e) 2023 2024 101.60 Global fleet of vehicles switched to 49.3 54.2 9.86 lower-emission options 86.10 84.38 86.44 9.69 9.69 Scope 3 (not in scope for  Nestlé continues to make progress in turning its fleet of 72.93 71.35 Net Zero Roadmap) vehicles to lower-emission options. Scope 3 (in scope for  Energy consumption and mix Net Zero Roadmap) Scope 2 Gigajoules Gigajoules MWh (emitted indirectly 2023 2024 2024 market-based) Total energy consumption related 76 824 313 78 784 554 21 884 598 2.02 0.33 0.26 Scope 1 to own operations (factories only) 3.28 3.15 3.08 (emitted directly) Total energy consumption from – 29 286 167 8 135 046 2018 2023 2024 renewable sources (factories only) Baseline year Fuel consumption from coal and – 1 415 269 393 130 coal products Fuel consumption from crude oil – 6 552 519 1 820 144 and petroleum products Fuel consumption from natural gas – 39 688 112 11 024 476 Fuel consumption from other – 0 0 fossil sources Consumption of purchased or – 2 020 047 561 124 acquired electricity, heat, steam and cooling from fossil sources Consumption of purchased or – 22 299 055 6 194 182 acquired electricity, heat, steam and cooling from renewable sources Consumption of self-generated – 52 789 14 664 non-fuel renewable energy 38 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Nestlé net GHG footprint breakdown by value chain steps (SBTi scope) (million tonnes CO2e) In 2018, the baseline year for the SBTi carbon target, Nestlé The 2024 GHG footprint breakdown is the result of the emitted 91.74 million tonnes of CO2e (SBTi scope, impact of Nestlé’s climate actions by value chain steps which corresponds to 2024 rebaselining value), comprising: are focusing on sourcing ingredients. These categories are monitored as part of a comprehensive approach to managing and reporting on emissions across Nestlé’s operations and value chain. 65.3% related to sourcing ingredients Sourcing Nestlé’s ingredients and 11.1% related to finished goods 65% packaging products 91.74 74.69 Manufacturing Nestlé’s 10.3% related to products 6% million tonnes overheads and others million tonnes Packaging Nestlé’s products 12% CO2e 6.8% related to manufacturing products Managing logistics 7% 6.5% related to Overheads and others 10% managing logistics Nestlé GHG emissions,(8) GHG removals (million metric tonnes CO2e) and percentage net reduction versus 2018 baseline 100 Peak carbon 90 91.74 (9) 2018 baseline 74.69 20.38% 80 GHG Net GHG reduction  emissions (8) vs. 2018 baseline (10) 1.64 73.05 GHG removals 70 Net GHG emissions 60 Net Zero Roadmap launched 50 2018 2019 2020 2021 2022 2023 2024 In 2024, Nestle achieved a 20.38% net reduction of GHG emissions versus 2018 baseline, meeting Nestle’s Net Zero SBTi milestone of 20% by 2025 one year ahead of time. (8) Includes Scopes 1, 2 (market-based) and 3 covered by the Net Zero Roadmap. (9) Restated baseline due to acquisitions, divestitures, methodological enhancements and more representative emissions factors change. (10) Net reduction (in %) includes GHG reductions and GHG removals from projects on farms supplying Nestlé and in Nestlé’s sourcing landscapes. Non-Financial Statement 2024 39 Part 2 – Environmental Disclosures Disaggregation of GHG emissions by GHG category GHG removals and GHG mitigation projects financed (for ingredients only) through carbon credits Nestlé has a net zero commitment by 2050 which includes % reduction 2018 2024 vs. 2018 SBTi-approved Forest, Land and Agriculture (FLAG) targets and Energy/Industry targets. Removals projects on farms Carbon dioxide (CO2) 30.13 24.06 20.19 supplying Nestlé are, in accordance with SBTi, contributing Methane (CH4) 16.46 13.08 20.56 to Nestlé's FLAG target. In 2024, this equates to 1.60 million Nitrous oxide (N2O) 6.38 5.50 13.74 tCO2e, representing 97.3% of the total removals. Pending the publication of the SBTi guidance on approach to Scope 3 GHG emissions (million metric tonnes CO2e) neutralization, other removals projects that are in Nestlé’s sourcing landscapes are also included in its calculations and 2024 contribute to Nestlé’s net zero target. In 2024, this equals to Dairy and livestock 22.41 0.04 million tCO2e, representing 2.7% of the total removals. Soil and forests 17.07 Other 35.21 2024 absolute CO2e reductions and removals from projects and as percentage of total projects (12) Emissions disclosures Responsible sourcing 26% 2024 Percentage of Scope 1 GHG emissions from regulated 33.6 Sourcing – Dairy and livestock 27% emission trading schemes (11) Sourcing – Soil and forest 12% Gross location-based Scope 2 GHG emissions 2.59 18.12 Manufacturing 13% (million metric tonnes CO2e) million metric Gross market-based Scope 2 GHG emissions 0.26 Packaging 6% tonnes CO2e (million metric tonnes CO2e) Logistics 3% Total GHG emissions location-based 77.02 Recipe reformulation 5% (million metric tonnes CO2e) Total GHG emissions market-based 74.69 Removals 9% (million metric tonnes CO2e) Biogenic emissions from CO2 from the combustion or 0.74 bio-degradation of biomass not included in Scope 1 GHG emissions (million metric tonnes CO2e) (11) GHG emissions from sites located in countries or states that implemented ETS. (12) Emissions reductions are assessed relative to a baseline year prior to commencement of a project. These projects contribute to Nestlé's climate KPIs but are separate calculations and therefore not directly comparable. Projects are financed by Nestlé or co-financed with Nestlé's suppliers on farms, in supply sheds from which Nestlé is sourcing agricultural ingredients. Projects typically represent a change in farming practices and/or infrastructure investments. In a small number of cases, this includes preferential sourcing from low-carbon farms, including premium payments to farmers recognizing the improvements already made on these farms. 40 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Natural climate solutions Nestlé ensures the quality of carbon credits used, by These initiatives align with the Nestlé Net Zero Roadmap adhering to high-integrity and quality standards. These and form part of the broader strategy to use natural climate criteria include: solutions like agroforestry, silvopasture and the restoration – Certification standards: Carbon credits are sourced from of forests and peatlands – actions that physically remove projects certified by reputable standards, such as the VCS CO2 from the atmosphere. The permanence of those and the Gold Standard. These standards ensure that the actions and corresponding carbon removals is closely carbon credits represent real, quantifiable, permanent and monitored through: additional GHG reductions or removals. – In-field measurements through soil organic matter – Co-benefits: Preference is given to projects that not only sampling, tree-growing measurements and other on-site offer GHG reductions but also provide social, economic evaluation methods. and environmental co-benefits, such as biodiversity – Remote-sensing methods (such as satellite monitoring) enhancement, improvement in local air quality and aiming to secure the restoration and check that the socio-economic development of local communities. trees planted, wetland restored or windbreakers are – Third-party verification: All carbon credits utilized undergo still standing. third-party auditing to ensure that the GHG reductions or removals claimed are accurate and in line with Carbon-removal calculations also integrate a 20% buffer to international standards. account for potential loss and non-permanence during the project lifetime. In case the loss is bigger, Nestlé discloses Nestlé relies on detailed calculations and methodologies in carbon-removal reversal. estimating GHG removals and storage. These calculative methods and frameworks ensure GHG accounting is Net zero achievements – no use of offsets connected to Nestlé’s initiatives, especially in efforts aimed Nestlé does not use offsets (carbon credits disconnected at achieving net zero emissions. Key aspects include: from Nestlé’s value chain) to deliver against its Net Zero – Methodologies for GHG removals: Roadmap, or short- and medium-term targets. – Nature-based removals involve methodologies that In 2024, some Nestlé brands such as Gerber, Nescafé calculate sequestered carbon through tree planting Origins do Brazil and Wunda purchased carbon credits from and soil management changes in their multifaceted outside their value chain, totaling 58 000 (from Verified agroforestry projects. Growth rates and the carbon Carbon Standard (VCS) and American Carbon Registry sequestration capabilities of different tree species (ACR)) as additional contributions to climate action, and soil types are considered, utilizing science- supporting carbon-neutral certifications and claims. None of based models. those credits purchased from projects outside the value – Regenerative agriculture practices are accounted for by chain count for net zero purposes. measuring improvements in soil carbon enrichment, using methodologies that specifically quantify changes Climate Monitoring Reporting Verification – use of in soil composition due to enhanced farming practices, Voluntary Carbon Standards based on laboratory analysis and field data collection. Nestlé uses carbon credits certification standards to – Frameworks and Standards: demonstrate the monitoring and verification of its various – By following internationally recognized standards such removal projects, notably through nature-based solutions as the Intergovernmental Panel on Climate Change such as reforestation (including tree-planting initiatives) and (IPCC) and the World Resources Institute’s GHG agroforestry (particularly those involving diverse planting Protocol for Project Accounting, accuracy, schemes interspersed with agricultural crops and designed reproducibility and alignment with global reporting to sequester carbon efficiently). Nestlé has not converted requirements is ensured. removal activities into carbon credits sold on the – For carbon credits, investments adhere to standards voluntary market. such as the VCS or the Gold Standard, which verify that the credits represent actual, verifiable GHG reductions or removals. Non-Financial Statement 2024 41 Part 2 – Environmental Disclosures – Assumptions in calculations: Internal carbon pricing – Assumptions for growth and soil enhancement are Nestlé uses a customized form of carbon pricing mechanism based on empirical data and long-term studies, with through a Net Impact Value (NIV) metric, calculated as the adjustment factors applied for site-specific conditions expected emission reduction divided by the total cost of a and external influences, such as climatic changes project.* These prices vary by the type of decarbonization. impacting growth rates or carbon maintenance. The cost of decarbonization is also integrated into Nestlé’s – For carbon credits, assumptions often involve the M&A due diligence. baseline scenario of emissions (i.e. what the emissions Based on the NIV, Nestlé assesses the hundreds of would have been without the project) alongside the projects (both OPEX and CAPEX) that it commissions each projected sequestration or reduction impacts. year toward achieving its GHG reduction targets. It is an internal calculation method that assigns a monetary value to Total GHG reversals (million metric tonnes CO2e) emission reduction efforts. This helps evaluate the cost- Zero GHG reversals in 2024. effectiveness of projects and is a useful benchmark to assess the ‘true’ cost of a project. Total GHG removals (million metric tonnes CO2e) Anticipated financial effects from material physical and 1.64 transition risks and potential climate-related opportunities See the Climate-related transition risk impacts, mitigations and future opportunities, 10-year time horizon table for more information. 0.76 Nestlé Specific KPIs 0 2018 2023 2024 Nestlé’s Reporting Scope and Methodology for ESG Key Baseline year Performance Indicators document provides details and definitions. It can be found in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024. GHG removals and GHG mitigation projects financed through carbon credits Responsible sourcing Sourcing is subject to specific disclosures through specific 2024 metrics, mostly by type of raw materials. Total amount of carbon credits outside value chain 0.053 Most metrics relate to ‘responsibly sourced’, which means that are verified against recognized quality standards that the origin of Nestlé’s priority raw materials is known and and cancelled (million metric tonnes CO2e) the way they are produced has been assessed as compliant Total amount of carbon credits outside value 0.00503 with the requirements laid out in its Nestlé Responsible chain planned to be canceled in future Sourcing Core Requirements. Operationally, the criteria to (million metric tonnes CO2e) define if a raw material is responsibly sourced are that the Carbon credits: share (percentage of volume) 0.0 material comes from a low risk country with subnational of reduction projects traceability or that the origin of the material is traceable back Carbon credits: share (percentage of volume) 100.0 to the group of farms and Tier 1 suppliers’ volume are of removal projects compliant with the Nestlé Responsible Sourcing Core Carbon credits: share (percentage of volume) 100.0 Requirements at production level. Nestlé’s responsible for each recognized quality standard sourcing target applies to 14 priority raw materials: cereals Carbon credits: share (percentage of volume) 0.0 and grains; cocoa; coconut; green coffee; dairy (derivatives issued from projects in European Union and fresh milk); fish and seafood; hazelnuts; meat, poultry and eggs; palm oil; pulp and paper; soy; spices; sugar; * The sentence should read as follows: Nestlé uses a customized form of carbon pricing mechanism through a Net Impact Value (NIV) metric, calculated as the and vegetables. See Biodiversity and ecosystems for total cost of a project divided by the expected emission reduction. additional information. 42 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Key ingredients responsibly sourced (percentage) Cocoa sourced through the Nestlé Cocoa Plan (percentage) (14) 100 100 85.5 88.9 44.5 36.2 2023 2024 2030 2023 2024 2025 Target year Target year Certified palm oil sourcing (RSPO) (percentage) (13) Cage-free eggs sourced (percentage) 100 100 100 72.9 74.4 2023 2024 2023 2024 2025 Target year Nestlé continues to maintain its performance on RSPO, an important certification scheme for its responsibly Progress has been made in key geographies such as sourced journey. Europe, North America and Asia, Oceania and Africa. Nestlé faces unavailability of cage-free supply, particularly in Latin America. (13) In 2024, 100% of Nestlé's crude palm oil (CPO) and Palm Kernel Oil (PKO) was either from RSPO certified sources or covered by Certified Sustainable Palm Oil (CSPO) and Certified Sustainable Palm Kernel Oil (CSPKO) book and claim credits. (14) The percentage cocoa sourced through the Nestlé Cocoa Plan includes volumes of Rainforest Alliance certified mass balance cocoa. It also includes verified Nestlé Cocoa Plan volumes and farm data provided by suppliers. Non-Financial Statement 2024 43 Part 2 – Environmental Disclosures Nestlé Specific KPIs Approach to baseline recalculation More granular emission factors imply recalculations of base 2023 2024 year emissions across Scope 1, Scope 2 (both location-based Percentage of Nespresso Coffee 94.4 91.4 (15) and market-based) and Scope 3 for all reporting years since sourced through the Nespresso AAA the 2018 baseline year, including recalculation of SBTi Sustainable Quality™ program targets. Nestlé ensures that the baseline value for its GHG Percentage of coffee supplies 92.5 93.0 emissions is representative and reflects the full scope of its responsibly sourced activities prone to external factors by following systemic (excluding Nespresso) methodologies. Farmers trained on practices (number) 497 395 472 732 By addressing these changes comprehensively, Nestlé Number of farmers in the 179 399 163 643 makes sure that the GHG inventory and its reduction targets Nestlé Cocoa Plan adhere to the best practices in environmental disclosure, Number of forest and fruit trees 1 386 240 1 737 740 and that progress tracking toward its GHG reduction goals distributed to cocoa farmers is reliable. This approach also assures stakeholders that the reported GHG reductions are reflective of actual mitigation efforts rather than changes in accounting or Methodology and assumptions reporting methodologies. Nestlé has made minor changes in the methodology and Restatement methodology definition of what constitutes its reporting undertakings and its value chain. Further details on the methodology and Adjustment Previous years and baseline emissions are adjusted assumptions used are included in Appendix 1 – Reporting for structural to account for significant structural changes, such as Scope and Methodology for ESG Key Performance changes acquisitions and divestments, which can affect the Indicators 2024. This represents a continuous improvement scope of operations and, consequently, the GHG approach for which, year-on-year, Nestlé works to have more emissions profile. This adjustment ensures that the accurate data and methodologies. Any methodological baseline remains representative over time, change, regardless of significance, is applied across all regardless of changes in Nestlé’s structure. reporting years to ensure like-for-like performance reporting. Application Nestlé ensures consistent reporting over time by of updated restating for any structural, methodological, or more Reported GHG emissions: updates to methodology methodologies representative emission factors changes. For and definitions in 2024 and emission example, Nestlé receives some supplier-specific factors emission factors with some delay due to the time Granular More granular emission factors over the years required for validation and substantiation of these emission factors introduced, taking into account variations by country, emission factors with its suppliers and partners. material, supplier and farm. This new level of detail Another example is in relation to database updates aligns with the approach to applying emission that are related to methodological updates. All these factors and adheres to SBTi guidelines. emission factors are incorporated over all years for which the data was related to, and the latest version of the emission factor is used in current year calculations. If Nestlé receives emission factors for multiple years it will use the data point for the best year it represents. Nestlé's uses the best available substantiated emission factors at the time of the consolidation and disclosure, however it knows that some of its projects are not yet fully represented and will be incorporated in subsequent years. (15) The decrease versus 2023 is due to volatility in demand for certain coffee qualities which could not be sourced through the Nespresso AAA Sustainable Quality program™ after the harvest period ended. 44 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Pollution Use of agrochemicals (e.g fertilizers and pesticides) requirements: In this section – Only pesticides that are legally approved for use within the – Pollution of water. relevant country are utilized and they are applied for the – Pollution of soil. sole purpose of controlling weeds, diseases or invasive species and pests. – The decision to use synthetic pesticides is based on prior monitoring, evaluation and forecasting of pest pressure, Water and soil pollution in Nestlé’s rather than on a systematic approach. upstream value chain – The detailed list of pesticides to be avoided in field applications is included in the Nestlé Responsible Sourcing Core Requirements. These pesticides are named Strategy and policies in the Stockholm list of Persistent Organic Pollutants, the Rotterdam Prior Informed Consent Procedure mechanism See Appendix 7 – Key Policies and Documents for and/or the Montreal Protocol on Substances that Deplete detailed descriptions of all Nestlé policies disclosed in the Ozone Layer; categorized as 1A and 1B hazardous the Non-Financial Statement 2024. pesticides by the World Health Organization, as known Nestlé has policies and initiatives that aim to mitigate carcinogens according to the Globally Harmonized System negative impacts related to the pollution of water and soil of Classification and Labelling of Chemicals, as 1A in its upstream value chain and pollution of water in its carcinogens by the European Chemicals Agency, or Group operations in line with Nestlé’s material impacts, risks 1 carcinogens by the International Agency for Research and opportunities. on Cancer. Nestlé has specific requirements in the Nestlé – Hazardous materials, chemicals and dangerous Responsible Sourcing Core Requirements related to water substances are safely stored, handled, recycled, reused and soil pollution risks. These include environmental and disposed of in accordance with the manufacturer’s requirements for the management of water and natural recommendations. Only legally approved chemical resources and the use of agrochemicals such as fertilizers substances are used. A year-round nutrient management and pesticides. Some of the specific requirements are plan is in place to monitor and optimize the application of detailed below. fertilizers in response to crop needs (when and where). This does not apply to small farms or smallholder farmers. Water and natural resources management requirements: – Water resources and water bodies are protected from In 2020, Nestlé announced its target on regenerative contamination (e.g. preventing run-off, maximizing water agriculture in the context of the Net Zero Roadmap. retention and minimizing soil erosion). Regenerative agriculture, by design, aims to improve soil – Wastewater is treated before being discharged into health, biodiversity and water resources. It promotes the the environment. adoption of practices such as the reduction of synthetic – Residual water used for cleaning pesticide application inputs, agroforestry, cover crops, reduced tillage, riparian devices is released in the field or in a dedicated buffers, integrated pest management and integrated soil collecting area. fertilization management. This approach is described in the – Irrigation systems are optimized in order to minimize water Nestlé Agriculture Framework. In particular, and in addition use and avoid the transport of chemicals, nutrients or to the requirements included in the Nestlé Responsible sediment from the soil surface or root zone toward surface Sourcing Core Requirements, the Framework also or groundwater bodies. establishes that Nestlé aims to progressively phase out other – Documented procedures or processes are in place to pesticides and controversial practices. ensure the implementation of measures for the sustainable management of water resources and to effectively mitigate negative impacts, including on other water users. This does not apply to small farms or smallholder farmers. Non-Financial Statement 2024 45 Part 2 – Environmental Disclosures Actions and resources Nestlé is in the process of assessing water and soil pollution in its upstream supply chain, using secondary data. This is In its supply chain, Nestlé engages suppliers and partners in expected to help with potentially setting related targets and regenerative agriculture (see Strategy and policies for more with assessing the effectiveness of measures. Specifically information). In 2020, Nestlé announced its target: aim to with respect to water, Nestlé is one of the companies piloting source 20% of its volume of key ingredients from farmers science-based targets (SBTs) for nature which may provide a adopting regenerative agriculture practices by 2025, and future scenario where companies can operationalize the 50% by 2030. See Biodiversity and ecosystems for details Convention on Biological Diversity’s Kunming-Montreal on progress. Global Biodiversity Framework (GBF). The SBTs for nature Within fresh milk sourcing, Nestlé engages with suppliers technical guidance was released in 2024 and Nestlé has and farmers to support the development of advanced been working to define potential targets in line with its manure management technologies. requirements and to understand what might be required Nestlé verifies alignment to and compliance with the from an operational perspective. The Science Based Targets Nestlé Responsible Sourcing Core Requirements using Network (SBTN) established two targets which together different methods at different tiers of the supply chain. address the primary impacts on water, as follows: These include self-declaration, desk-based assessments and – Fresh water use. second- or third-party site audits or assessments. The tools – Fresh water quality. used to assess compliance depend, at Nestlé’s discretion, on the supply chain tier and the level of risk. Risk is assessed taking into consideration different criteria, such as the country(ies) of operation and of origin (for materials and ingredients), the level of spending, and the type of goods or service supplied to Nestlé. Nestlé has identified priority materials and ingredients that present a higher risk of environmental and/or social issues. In those cases, it works closely with its direct suppliers and other partners to conduct a supply chain mapping and carry out assessments in the upstream supply chain. Direct suppliers: – Human Rights and Environmental Due Diligence (HREDD) assessments. – Site audits carried out by independent audit firms using Sedex best-practice principles and the SMETA methodology. – Responsible Business Alliance (RBA) audits. – EcoVadis self-assessment questionnaire. – Any other means, as may be required by Nestlé. Origins (for Nestlé’s priority materials and ingredients): (16) – Validated certification schemes. – Validated industry schemes or programs. – Validated landscape or jurisdictional initiatives. (16) Countries of origin categorized as low risk for environmental, social and governance issues using data from Verisk Maplecroft are not subject to verification. 46 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Water pollution in Nestlé’s operations Actions and resources Strategy and policies In Nestlé operated factories and distribution centers, effluent water is managed in on-site treatment plants or diverted to a The Nestlé Environmental Requirements (NER) Standard local third-party facility. Water discharges are monitored in applicable to Nestlé’s operations (e.g. factories, R&D all sites of Nestlé’s factories. Nestlé complies with local centers, head offices and boutiques) addresses water regulations as a minimum and monitors all relevant impacts that may be associated with Nestlé’s activities such substances specified in NER including nitrates, phosphorus as increased turbidity, eutrophication, pH/redox change, and COD load, as part of its standard internal environmental contamination by hydrocarbon or any hazardous material monitoring and reporting routine. It is consolidated monthly and over-exploitation. at a factory level and reported in Nestlé’s internal Any water discharged into waterways must be treated environmental reporting system: SHE-PM. The data is then effectively to avoid harming the environment. Nestlé uses consolidated at the corporate level. The data is used to track various technologies to treat the water it uses prior to reuse and evaluate Nestlé’s internal water use efficiency as well as or release into the environment. The physico-chemical the potential impact on the other watersheds’ stakeholders parameters continuously monitored in its effluents are as and ecosystems. It is reported to different stakeholders follows: pH with defined thresholds, biochemical oxygen within Nestlé (including executive management) to demand (BOD), chemical oxygen demand (COD), total continuously drive improvement. suspended solids (TSS), total nitrogen (TN), total phosphorus (TP), oil and grease, and color. For example, Nestlé has set Nestlé Specific KPIs an internal limit of 125 mg O2/L for COD that is mandatory in all operations. 2023 (17) 2024 NER also covers building standards (e.g. to prevent Total direct output of chemical 1911 4540 contaminant spills), the operation of water wells within oxygen demand (COD) load to factories and operations of internal effluent treatment plants. the environment (tonnes) (18) NER sets requirements for effluent water quality Aggregated annual chemical oxygen 81 86 discharged from direct operations and aims to protect the demand (COD) concentration (mgO2/l) (18) environment in the case of: Percentage of effluent water 51 52 – Effluent water discharge to the surface water body. treated internally (18) – Effluent water used for irrigation. In case of incidents, Nestlé’s Management of Environmental Exceptional Compliance Issues and Analysis & Reporting of SHE Incidents Standards define mandatory practices for the analysis and reporting of events that could or do result in injuries, illnesses and environmental impacts. (17) 2023 figures considered effluents after internal treatment only; whereas 2024 results account for all effluents, after both internal and external treatment. (18) Metrics reported only relate to factories. Non-Financial Statement 2024 47 Part 2 – Environmental Disclosures Water resources The Nestlé Environmental Requirements Standard (NER) is aimed at preventing harm to the environment and local In this section natural resources and defines all mandatory environmental – Water consumption. requirements that apply to Nestlé’s direct operations, such – Water withdrawals. as sustainable water use or effluent water quality. NER is – Water discharges. monitored at local and Group level through an internal tracking system. The actions below highlight Nestlé’s proactive and Main targets (19) location-specific approach to water stewardship, as it aims – Nestlé sets targets of water use reduction in its toward sustainability in its operations and the preservation of manufacturing sites, especially in those located in water resources for future generations. water stressed areas. – Nestlé is committed to certifying all Nestlé Waters sites to the Alliance for Water Stewardship (AWS) Actions and resources certification by the end of 2025. – As of 2025, Nestlé Waters will help nature retain more Nestlé has been continuously improving water use efficiency water than the business uses in all its operations. in its manufacturing sites. This is achieved through annual quantitative targets, delivered by the implementation of advanced water-reducing innovations and technologies, as well as the promotion of the recycling and reuse of water. Water consumption, withdrawals and Between 2021 and 2023, Nestlé delivered an absolute discharges in operations reduction of 7.6 million m3 of water, which exceeded the goal Nestlé had set to reduce water use in factories by 6 million m3. Nestlé prioritizes investment in water-reducing initiatives Strategy and policies for facilities located in areas of high water risk. Since 2024, the setting of annual site-level water-reducing targets is Nestlé is committed to sustainable water use, particularly integrating local water stress. This context-based approach in water-stressed areas across its operations and supply prioritizes actions ‘Where it Matters’. The graph shown on chains, through the implementation of specific actions the next page is a representative example to explain the tailored to local conditions. Nestlé continuously strives to ‘Where it Matters’ approach. Improvements in water improve water use in its factories by adopting efficient efficiency and reductions in water withdrawals can help technologies. mitigate local water risks. All Nestlé factories, without exception, need water to operate properly and water stress may impact their production capacity through potential restrictions. Nestlé Waters (Nestlé’s bottled water business) follows the Alliance for Water Stewardship (AWS) International Water Stewardship Standard at all its sites; and, since 2021, Nestlé Waters has been identifying and implementing projects designed to help regenerate local water cycles in areas where it operates. See Appendix 7 – Key Policies and Documents for detailed descriptions of all Nestlé policies disclosed in the Non-Financial Statement 2024. (19) The definitions and calculation methodology applicable to track progress on these targets can be found in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024. 48 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Water use per tonne of product Targets, metrics and performance Nestlé has established measurable targets to minimize its m3/t impact on water resources. These targets align with Nestlé’s long-term sustainability goals and regulatory requirements, “Where it Matters” as outlined below. – Nestlé sets annual targets of water use reduction in its manufacturing sites, especially in those located in water- stressed areas: – This aligns with Nestlé’s efforts in managing the material impacts and risks associated with water use, especially in areas facing water stress. Nestlé’s targets Tar contribute to the management of material impacts, risks get and opportunities related to areas at water risk by focusing on water-related actions in locations deemed as higher risk. Since 2024, water use efficiency improvements in direct operations are driven by water risk assessments to focus operations and resources allocation in manufacturing sites located in water- stressed areas. This strategic approach ensures that actions and resources are aligned with the management of material impacts and risks, particularly Low High in areas identified as high-risk for water-related issues. Water stress In 2024, total water use reduction in manufacturing sites amounted to 2.72 million m3. Nestlé factories – Nestlé Waters is working toward meeting their commitment to have local water stewardship projects delivering more volumetric water benefits than the volume Additionally, Nestlé Waters intends to certify all its sites Nestlé Waters withdraws in its operations, by end of 2025: to the AWS Standard by 2025. The AWS Standard provides – This will be achieved through collaboration with a framework to assess and understand the impact and partners to identify and support local solutions that are dependencies from Nestlé’s manufacturing water use in designed to help regenerate the ecosystems in the a watershed and guide the implementation of water areas around each of Nestlé Waters’ sites. stewardship initiatives within the watershed through – Nestlé is committed to certifying all Nestlé Waters sites to collective actions together with local stakeholders. These the Alliance for Water Stewardship (AWS) certification by actions are externally audited and certified following ISEAL the end of 2025: requirements (AWS is an ISEAL Community Member). – The Standard requires water users to understand and act collectively on water challenges. With 25 Nestlé Waters sites certified by AWS, Nestlé Waters is working toward meeting their commitment in 2025. Nestlé Specific KPIs: Alliance for Water Stewardship 2023 2024 Number of Nestlé Waters sites certified 23 25 to the Alliance for Water Stewardship’s (AWS) international Standard Non-Financial Statement 2024 49 Part 2 – Environmental Disclosures Ecological thresholds have not been considered or evaluated. Water consumption, withdrawals and Nestlé’s targets align closely with various globally recognized discharges in the value chain and industry-specific guidelines and initiatives, promoting sustainable water use and management practices. Strategy and policies These targets demonstrate Nestlé’s proactive strategy to align with global sustainability norms and contribute to Nestlé works closely with local stakeholders, particularly in the responsible management of water. agriculture, to improve water conservation, through engagement and capacity building. Water use disclosures (million m3) Limited access to water may also disrupt the production of crops or food from Nestlé’s suppliers and business 2023 2024 partners, and the availability and affordability of key ingredients. Agriculture accounts for 70% of all water 95.6 l water 48.4 52.9 97.9 Tota withdrawals worldwide. In some regions, water withdrawn consumption to produce food is increasing pressure on Total water the water cycle. Agricultural inputs can also affect the quality discharged of water resources. Total water See Appendix 7 – Key Policies and Documents for consumed detailed descriptions of all Nestlé policies disclosed in 47.2 Water use 45.0 the Non-Financial Statement 2024. reduction in factories Nestlé has several policies that aim at mitigating potential negative impacts of activities on local water resources in its value chain. Water withdrawn The Nestlé Responsible Sourcing Core Requirements describes the specific requirements related to water in the 3.0 2.72 Total water use reduction in factories chapters: Supplier 4.2 and Farmers 3.2. By design, the regenerative agriculture practices approach as described in the Nestlé Agriculture Framework helps to reduce the use of synthetic inputs and protect water streams. Water use disclosures 2023 2024 Actions and resources Total water consumption in areas at – 25.0 water risk, including areas of high Water in responsible sourcing water stress (million cubic meters) The Nestlé Responsible Sourcing Core Requirements call for Water consumed in regions with 48.6 55.5 several actions, some of which are outlined below: High or Extremely High Baseline – Water withdrawals are monitored, and volumes allowed by Water Stress (percentage) license(s) or permit(s) are not exceeded. Water withdrawn in regions with 36.7 44.8 – Local water resources are used efficiently and negative High or Extremely High Baseline effects on other water users including communities, wildlife Water Stress (percentage) and ecosystems within the same watershed are mitigated. – Wastewater is treated before being discharged into the environment. – Water resources and water bodies are protected from contamination (e.g. preventing run-off, maximizing water retention and minimizing soil erosion). – Irrigation systems are optimized in order to minimize water use and avoid the transport of chemicals, nutrients or sediment from the soil surface or root zone toward surface or groundwater bodies. 50 Non-Financial Statement 2024 Part 2 – Environmental Disclosures – Documented procedures or processes are in place to Regenerative agriculture practices, together with ensure implementation of measures for the sustainable improved irrigation techniques and connected technologies, management of water resources and to effectively mitigate allow for water use reduction and increased water resilience. negative impacts including on other water users. These practices are initially implemented and measured at farm level, with benefits expected to improve the overall Water in agriculture watershed health as similar practices are implemented at Nestlé has partnered with the University of Wageningen larger scale. to identify key proxy metrics for the quantification of Improved watershed health contributes to the sustainability water benefits from selected agricultural practices, such as of local water resources and, in return, improves farmers, those found in the Nestlé Agriculture Framework. The communities, nature and supply resilience. implementation of such practices can have positive impacts on local water resources. Improving watershed health (20) Pilot farms Existing Nestlé Farm Assessment Tool Nestlé Framework for Water in Agriculture Regenerative Agriculture Impacts on Water Watershed level Farm level (20) The impact of regenerative practices is assessed in detail on selected pilot farms. Based on these results, similar practices are promoted on a larger scale and benefits are assessed through existing Nestlé Farm Assessment Tools. Non-Financial Statement 2024 51 Part 2 – Environmental Disclosures To assess risks and opportunities for the implementation Metrics and performance of these activities, Nestlé assesses the water footprint of its key agricultural commodities, such as coffee, cocoa, Nestlé Specific KPIs fresh milk and sugar, and water stress assessments at sourcing locations. 2023 2024 In priority regions, Nestlé works with farmers to Percentage of sites where projects – 67.6 implement water-efficient irrigation systems and overall started to deliver volumetric water good agricultural and water stewardship practices. benefits (VWB) Percentage of total withdrawn water – 39.8 The Nestlé Waters Regeneration Pledge volumes that are ‘regenerated’ The Nestlé Waters Regeneration Pledge aims to lead the Nestlé Waters volumetric water 4.4 8.2 regeneration of local water cycles to help create a positive benefits delivered by implementing water impact everywhere the business operates by 2025. local water stewardship projects Positive water impact means that within the watershed it is (million cubic meters per year) operating, each Nestlé Waters factory needs to deliver volumetric water benefits corresponding at least to its current year annual withdrawals. The business wants to expand its current efforts around water management beyond Nestlé Waters own bottled-water operations. The aim is to develop projects to help nature retain more water than Nestlé Waters bottled-water business uses. In collaboration with partners, Nestlé Waters identifies and supports local solutions that help nature retain more water than the category uses in its operations. Outcomes of all projects are quantified using the World Resources Institute’s Volumetric Water Benefit Accounting (VWBA) methodology, and an external expert’s panel, composed of NGOs, academics and think tanks, reviews all projects ensuring they are addressing current and future water challenges. By delivering 8.2 million m3 per year of volumetric water benefits, Nestlé Waters exceeded its 2024 target of 8 million m3/y. Natural flood management – Zone Europe The town of Buxton, UK, is located near the headwaters of the River Wye and surrounded by steep hills, making it susceptible to flooding during prolonged and high- intensity rainfall. Flooding of roads and housing has already occurred on several occasions. Nestlé Waters collaborates with the Environment Agency, local authorities and non-governmental organizations (e.g. Moors for the Future, University of Derby and Derbyshire Wildlife Trust) to implement a natural flood management program in the catchment area to reduce the severity of flood events. This work builds on the strong community relationship and complements the broader work of Nestlé Waters that supported the Alliance for Water Stewardship Platinum re-certification of the Buxton factory in 2024. 52 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Biodiversity and ecosystems The Nestlé Agriculture Framework is a key policy related to action on regenerative agriculture and therefore related In this section with biodiversity and ecosystems. It describes a – Impacts on the state of species. comprehensive agriculture model which defines the three – Impacts on the extent and condition of ecosystem and key resources of any agricultural system: soil, water and dependencies on ecosystem services. biodiversity as the focus of the collective restoration efforts. – Climate change. Priority actions are the use of more diverse production – Land-use, fresh water-use and sea-use change. systems, the integration of livestock and actions across – Direct exploitation. landscapes: all supported by science-based agronomical and agroecological principles. In line with the aim to protect pollinators, Nestlé will also prioritize actions on insecticides Main targets (21) in accordance with the Framework. – By 2025, Nestlé aims for 20% of its key ingredients to Nestlé’s Salient Issue Action Plan Indigenous Peoples’ be sourced from farmers adopting regenerative and Local Communities’ (IPLCs) Land Rights includes agriculture practices,(22) and 50% by 2030.(23) climate ecosystem-related actions. The action plan was – By 2030, Nestlé aims for 100% of key ingredient(24) assembled and published based on knowledge gathered volumes to be responsibly sourced.(25) from IPLCs through a due diligence process. Respecting the – By 2025, Nestlé aims to achieve and maintain 100% rights of and engaging with IPLCs is essential for net zero assessed deforestation-free primary supply chains: and nature-related action. meat, palm oil, pulp and paper, soy, sugar, cocoa,(26) and coffee.(26) Actions and resources Below there is a description of how Nestlé’s policies, Strategy and policies framework, requirements and adopted measures have been effectively supporting nature and biodiversity. See Appendix 7 – Key Policies and Documents for detailed descriptions of all Nestlé policies disclosed in Deforestation the Non-Financial Statement 2024. Conservation – Deforestation-free in primary The Nestlé Responsible Sourcing Core Requirements sets supply chains out the compliance expectations of Nestlé’s upstream By 2025, Nestlé aims to achieve and maintain 100% supply chains and includes the conservation and protection assessed deforestation-free primary supply chains: meat, of High Carbon Stocks and High Conservation Value areas, palm oil, pulp and paper, soy, sugar, cocoa,(26) and coffee.(26) among other requirements related to ecosystems. This document is the base of Nestlé’s deforestation-free operations and performance which aims to support the conservation of nature. (21) The definitions and calculation methodology applicable to track progress on these targets can be found in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024. (22) https://www.nestle.com/sites/default/files/2022-07/nestle-agriculture-framework.pdf. (23) In 2024, the following ingredients are included in the numerator: dairy (fresh milk and dairy derivatives), coffee (excluding blended green coffee and Blue Bottle Coffee), cocoa, cereals and grains, soy and vegetables. The denominator includes all raw materials in scope: coffee (excluding blended green coffee and Blue Bottle Coffee), cocoa, dairy (fresh milk and dairy derivatives), sugar, cereals and grains, meat, poultry and eggs, palm oil, soy, vegetables, fish and seafood (excluding co and byproducts). (24) ‘Key ingredients’ refers to 14 key agricultural raw materials that cover 95% of Nestlé’s annual sourcing by volume: cereals and grains; cocoa; coconut; coffee (excluding blended green coffee and Blue Bottle Coffee); dairy (fresh milk and dairy derivatives); fish and seafood (excluding co and byproducts); hazelnuts; meat, poultry excluding pet care and eggs; palm oil; pulp and paper; soy; spices; sugar; and vegetables. (25) https://www.nestle.com/sites/default/files/asset-library/documents/library/documents/suppliers/nestle-responsible-sourcing-standard-english.pdf. (26) By 2025. Non-Financial Statement 2024 53 Part 2 – Environmental Disclosures The Nestlé Responsible Sourcing Core Requirements Restoration – Global Reforestation Program require that there is no expansion or production on areas This Program, which implements large-scale reforestation converted from natural forests and other natural ecosystems projects in Nestlé’s supply chain and sourcing landscapes, after commodity sectoral cut-off dates where they exist, but supports Nestlé’s Net Zero Roadmap. Reforestation and in no case later than December 31, 2020. This includes natural landscape restoration are aimed to help reverse primary forests, protected areas (e.g. IUCN protected areas biodiversity loss. Forests and natural ecosystems provide categories I-IV, UNESCO World Heritage Sites, wetlands on habitats for many species, store water, absorb carbon the Ramsar List), High Conservation Values (HCV) lands in dioxide, and contribute directly to the livelihoods of and around the producer territory, high carbon stock (HCS) Indigenous peoples’ and local communities. It is important forests, wetlands, savannas, and peatlands regardless of to invest at the landscape level, seeking environmental and depth (except where farming practices protect peat), and socio-economic co-benefits. riparian buffers adjacent to aquatic ecosystems (except With projects in Brazil, Colombia, Côte d’Ivoire, Mexico, where it complies with applicable law). Vietnam, Australia, China, Honduras, Nicaragua, and This is measured as a KPI called ‘Primary supply chains Thailand, the Global Reforestation Program has planted for meat, palm oil, pulp and paper, soy, sugar, cocoa and 7.04 million trees during 2024 (including Nespresso’s coffee assessed as deforestation-free’, which is calculated as agroforestry efforts as part of their Net Zero journey in follows: Total volume of commodities in scope assessed Colombia, Guatemala, Ethiopia, Costa Rica, and Uganda). deforestation free, divided by the total volume of commodities in scope, multiplied by 100 (measured in Ecosystem services metric tonnes). This KPI is not equivalent to the EU Regenerative agriculture Regulation on Deforestation-free Products (EUDR), and has Nestlé defines regenerative agriculture as follows: distinct definition and calculation methodology. ‘Regenerative agriculture is an approach to farming that aims to protect, renew and restore farmland and its ecosystem.’ 2023 2024 By 2025, Nestlé aims for 20% of its key ingredients to be Primary supply chains for meat, palm oil, 93.4 93.5 sourced from farmers adopting regenerative agriculture pulp and paper, soy, sugar, cocoa and practices, and 50% by 2030. coffee assessed as deforestation-free (%) Regenerative agriculture helps improve soil health, Meat (%) 99.9 100.0 sequester carbon and support food security. It helps reduce Palm oil (%) 96.0 96.3 the impact of agriculture on water and natural resources. Pulp and paper (%) 98.2 99.0 Action is based on five pillars (diverse cropping Soy (%) 97.9 96.1 systems and livestock integration; biodiversity; collective Sugar (%) 98.1 97.8 and landscape actions; soil health; and water security Cocoa (%) 42.3 46.4 and quality) and is guided by the Nestlé Agriculture Coffee (%) 92.8 93.1 Framework. More details on the practices are included in Climate change. Nestlé has made progress and is working on resolving traceability challenges in certain commodities such as cocoa. Details of the methodology are included in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024. 54 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Responsible sourcing Nestlé Purina PetCare Europe Ocean Restoration Nestlé aims to continue making progress in sourcing Program – Zone Europe ingredients under the Nestlé Responsible Sourcing Core Nestlé Purina PetCare Europe (Purina Europe) launched at Requirements. The Requirements enforce conservation the beginning of 2024, its first Ocean Restoration Program. practices as well as a ramp up of farm practices that help to The Purina Europe Ocean Restoration Program is focused reduce the use of fossil fuel-based inputs. This on future supply chain resilience by helping to improve and implementation aims to help flora and fauna provide restore the marine habitats which are critical for fish ecosystem services for the agricultural raw material populations. Fish is part of Purina Europe’s supply chain production to thrive. This implementation is tracked through because it uses fish by-products. These are parts of fish the ‘Responsibly sourced’ KPI which implies that either the that are not consumed by humans but provide a valuable material comes from a low-risk country with subnational ingredient in pet food, so that nothing goes to waste. traceability or that the origin of the material is traceable back Seagrass meadows, kelp forests and oyster reefs provide to the group of farms and Tier 1 suppliers’ volumes are nursery grounds, shelter and food for many species, but compliant with the Nestlé Responsible Sourcing Core they have been affected by overfishing, pollution and Requirements at production level. Mass balance schemes climate change and this is impacting the many species that are used when physical traceability is not achieved for the rely on them. Purina Europe’s aim is to restore 1500 volumes in scope of those KPIs. hectares of marine habitat by 2030 in the region where it Nestlé’s supplier contracts include a stringent clause sources, by working with expert partners and promoting requiring the provision of traceability information. Nestlé collaboration to develop the solutions, methodologies and conducts an annual traceability exercise covering 14 key raw scientific knowledge needed to scale in a cost-effective materials, reaffirming its commitment to responsible way. Healthy oceans are not just critical for Purina Europe’s sourcing and enabling traceability. In addition, Nestlé supply chain, but also for local communities and publishes lists of its suppliers for these key raw materials, businesses. The Program aims to improve ocean health as well as their origin. across multiple sites in Europe, bringing back nature and See Climate change: Nestlé Specific KPIs for more details. biodiversity to the benefit of all. Details of the methodology are included in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024. Just transition – IPLCs The IPLCs Salient Issue Action Plan sets out a series of measures that Nestlé is taking between 2023 and 2025 to address its challenges, including impact indicators, in order to: – Strengthen Nestlé’s existing risk assessment approach. – Engage and build capacity of Nestlé’s suppliers on the topics of land rights and human rights defenders. – Review and strengthen requirements and safeguards on IPLCs’ land rights within Nestlé’s existing programs (e.g. Global Reforestation Program). – Support IPLCs-centered landscape conservation and restoration projects. – Collaborate with peers and stakeholders to help address systemic issues and develop common approaches and tools. – Identify government engagement opportunities to strengthen respect for IPLCs’ land rights. – Support access to remedy and help address systemic issues within Nestlé’s operations and supply chains. Non-Financial Statement 2024 55 Part 2 – Environmental Disclosures Targets, metrics and performance The scope of the KPI includes agricultural raw materials coming from the Nestlé Farmer Connect value chain (Nestlé’s See Actions and resources for more details. Farmer Connect program works directly with farmers to ensure supply of certain agricultural raw materials) and from Piloting science-based targets for nature industrial suppliers for the following categories: Nestlé is one of the companies piloting science-based targets – Dairy (fresh milk and dairy derivatives). (SBTs) for nature which may provide a future scenario where – Coffee (excluding blended green coffee and Blue companies can operationalize the Convention on Biological Bottle Coffee). Diversity’s Kunming-Montreal Global Biodiversity Framework – Cocoa. (GBF) which is nature’s equivalent to the Paris Agreement for – Cereals and grains. climate change. The SBTs for nature technical guidance was – Soy. released in 2024 and Nestlé has been working to define – Vegetables. potential targets in line with its requirements and to understand – Sugar. what might be required from an operational perspective. The Science Based Targets Network (SBTN) established Details of the methodology are included in Appendix 1 – three interconnected targets which together address the Reporting Scope and Methodology for ESG Key primary impacts of the land sector, as follows: Performance Indicators 2024. – No Conversion of Natural Ecosystems. – Land Footprint Reduction. – Landscape Engagement. Responsible sourcing By 2030, Nestlé aims for 100% of key ingredient(27) volumes to be responsibly sourced.(28) By end of 2024, this figure reached 44.5%. Regenerative agriculture In 2024, Nestlé achieved 21.3% of its key ingredients sourced from farmers adopting regenerative agriculture practices, ahead of its 2025 target of 20%, thus contributing to supply chain resilience as well as reducing GHG emissions. The performance measure of regenerative agriculture percentage is calculated by: Total volume of categories in scope from farmers qualified as ‘engaged in the transition toward regenerative agriculture (Level 1)’, ‘Advanced (Level 2)’ or ‘Leading (Level 3)’, divided by the total volume of categories in scope (measured in tonnes) during the given year. Level 1 is an entry point in regenerative agriculture and constitutes a transition toward more advanced practices of regenerative agriculture (i.e. Level 2 and Level 3). (27) ‘Key ingredients’ refers to 14 key agricultural raw materials that cover 95% of Nestlé’s annual sourcing by volume: cereals and grains; cocoa; coconut; coffee (excluding blended green coffee and Blue Bottle Coffee); dairy (fresh milk and dairy derivatives); fish and seafood (excluding co and byproducts); hazelnuts; meat, poultry excluding pet care and eggs; palm oil; pulp and paper; soy; spices; sugar; and vegetables. (28) https://www.nestle.com/sites/default/files/asset-library/documents/library/documents/suppliers/nestle-responsible-sourcing-standard-english.pdf. 56 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Resource use and circular economy Nestlé Rules of Packaging Sustainability This Policy provides a comprehensive set of up-to-date In this section standards and internal guidelines to ensure Nestlé’s global – Resource outflows related to product and services and local packaging transformation contributes to achieving (Packaging). its commitments in 2025 and beyond. – Resource outflows related to product and services (Food waste). Overview – Circular economy (Packaging). Packaging vision Nestlé’s vision is that none of its and commitments packaging ends up in landfill or as litter. It is helping create a future where cleverly designed packaging, innovative Main targets (29) new materials, better recycling – By 2025, Nestlé aims to design above 95% of its infrastructure and reusable or refillable plastic packaging for recycling systems and continue packaging can prevent waste on land. to work toward 100% being recyclable or reusable. Packaging Sustainability Key initiatives to enable this vision: – By 2025, Nestlé aims to reduce its use of virgin five-pillar strategy 1. Less Packaging (Reduce) plastics by one third, versus 2018 baseline. 2. Less Packaging (Reuse and Refill) 3. Better Packaging (Redesign) 4. Better System (Recycle) Packaging 5. Better System (Rethinking Behaviors) The Golden Design Rules These guide current and future Strategy and policies packaging design, define the way Nestlé designs its packaging today, and in the See Appendix 7 – Key Policies and Documents for future, to ensure its recyclability. detailed descriptions of all Nestlé policies disclosed in The Negative List This explains the materials to be the Non-Financial Statement 2024. removed and by when, including Nestlé has developed a set of internal policies including the list of materials, additives, the Nestlé Policy on Environmental Sustainability and the packaging concepts and items which Rules of Packaging Sustainability, with the latter covering all are or will be considered obsolete based finished products sold by Nestlé. Nestlé’s guidelines and on the evolution of recycling standards are made available to supply chain partners as technologies and infrastructure and relevant. In addition, all policies are complemented by the legal/regulatory framework. Group’s Packaging Sustainability Strategy toward 2025. As a signatory of the Ellen MacArthur Foundation Global Commitment, Nestlé provides voluntary reporting to the public on its plastic packaging. (29) The definitions and calculation methodology applicable to track progress on these targets can be found in Appendix 1 – Reporting Scope and Methodology for ESG Key Performance Indicators 2024. Non-Financial Statement 2024 57 Part 2 – Environmental Disclosures Nestlé follows the guidelines of the Ellen MacArthur 4 Better System (Recycle): Nestlé is working to help stop Foundation (EMF) ‘New Plastics Economy Commitment – plastic waste entering the environment across its global Commitments, Vision and Definitions (Feb. 2020)’, and in operations. It engages in the development of collection, preparing Nestlé’s plastic packaging voluntary disclosures it sorting and recycling systems wherever it operates, referred to the ‘Global Commitment 2024 Reporting recognizing that optimizing packaging design and use of Guidelines (2024)’ of the EMF. recyclates are necessary elements. Nestlé’s Packaging Design Rules refer to the voluntary 5 Better System (Rethinking Behaviors): Addressing the framework developed by the Consumer Goods Forum, called waste management challenge requires fundamental the ‘Golden Design Rules for Packaging Sustainability’, see behavioral change from all stakeholders, including Nestlé, table for details. retail partners, suppliers and consumers – across all pillars. Nestlé advocates for well-designed regulation that Consumer Goods Forum: Golden Design Rules for is aligned with the principles of the waste hierarchy. Packaging Sustainability Nestlé’s scope of key action covers the primary, secondary Golden Design Rules for Packaging Sustainability and tertiary packaging materials for all finished food and – Increase recycling value in PET bottles. beverage products sold by Nestlé, and the time horizon – Remove problematic elements from plastic packaging. Nestlé is currently working to is 2025. – Eliminate excess headspace. – Reduce plastic overwraps. Reusable and recyclable plastic packaging – Increase recycling value for PET thermoformed trays and other PET Nestlé has made several commitments on packaging thermoformed packaging. sustainability as part of the Ellen MacArthur Foundation’s – Increase recycling value in flexible consumer packaging. (EMF) Global Commitment. In 2018, Nestlé joined the EMF – Increase recycling value in rigid HDPE and PP. initiative in moving toward making 100% of its plastic – Reduce virgin plastic use in business-to-business plastic packaging. packaging reusable or recyclable. Nestlé reports progress – Use on-pack recycling instructions against this commitment every year. Since 2022, although Nestlé has been designing for recycling the infrastructure for plastics recycling is not Actions and resources developing fast enough in many countries around the world. As a result, from 2022, Nestlé has started to report an Nestlé’s packaging sustainability strategy is structured additional KPI ‘How much of Nestlé’s packaging is designed around five pillars of action: for recycling’. Nestlé’s aim is for more than 95% of its plastic 1 Less Packaging (Reduce): Nestlé wants to use less packaging to be designed for recycling by 2025. packaging material, including less virgin plastic, which it Nestlé’s aim is to reduce its use of virgin plastics in aims to reduce by a third by 2025 versus its 2018 baseline. packaging by one third by 2025, and Nestlé is pioneering 2 Less Packaging (Reuse and Refill): To eliminate the need alternative packaging materials to facilitate recycling. for disposable packaging, Nestlé is working to eliminate Packaging plays an important role in safely delivering non-recyclable plastics and investing in innovative, high-quality food and drinks to consumers, and in alternative delivery systems. reducing food loss and waste. Nestlé needs to consider 3 Better Packaging (Redesign): Nestlé is collaborating with alternatives carefully before making changes to packaging, industrial partners to develop new packaging materials whether plastic, paper, metal or glass to ensure the safety and solutions. It is working to design over 95% of its of its products. plastic packaging for recycling systems, while working toward 100% recyclable or reusable packaging. 58 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Nestlé engages in the development of post-consumer Waste collection in Malaysia – Zone Asia, Oceania, Africa collection, sorting and recycling systems wherever it Nestlé supports collection, sorting and recycling operates, and has made progress in taking voluntary actions infrastructure in the countries where its products are sold in this area. Nestlé supports governments in accelerating and, in some countries, aims to collect and recycle the infrastructure development by supporting the development same amount of plastic as it uses in its products under of well-functioning collection, sorting and recycling schemes a “one tonne in, one tonne out” principle. wherever it operates, and scaling-up reusable and refillable For example, in Malaysia, Nestlé joined forces with alternatives where possible. Nestlé has supported over 200 Petaling Jaya City to launch a door-to-door collection collection projects and activities in over 12 countries. In these and recycling program as a voluntary recovery initiative. activities, Nestlé partners with private local waste This pioneering program has been recognized by both management entities and stakeholders to collect, sort, trade, the United Nations Environment Program (UNEP) and recycle or process post-use materials. the Ministry of Environment Malaysia as an example of Nestlé is also working to integrate recycled content into all separation-at-source best practice. packaging materials, including plastic packaging. Investing in recycled plastics Packaging plays a major role in assuring food quality and Targets, metrics and performance safety, areas of paramount importance at Nestlé which drive the current and future financial investment (and other Nestlé’s packaging targets were set as part of its resources) allocated to Nestlé’s action plan on recycled participation as a signatory of the UNEP/Ellen McArthur plastics. Some plastics are difficult to recycle for food Foundation co-hosted New Plastics Economy Global packaging leading to a limited supply of food-grade recycled Commitment, and scientific-based research on circular plastics. To create a market, Nestlé is therefore committed to economy matters. Performance data is collected every sourcing tonnes of food-grade recycled plastics and paying quarter and progress is reviewed by the ESG and a premium for these materials between now and 2025. Sustainability Council internally. Nestlé’s investment in procuring recycled plastics aims to Nestlé’s targets related to resource use and the circular reverse that trend by making recycled food-grade plastic a economy are defined to help with the promotion of more attractive financial proposition to suppliers, which it sustainable practices across its value chain. The focus is on hopes will help to encourage the adoption of recyclable the efficient use of resources and optimizing waste food-grade plastic in the industry. In addition, Nestlé has management through prevention, reuse and recycling. committed investments to reconfigure packaging lines in its Nestlé’s actions and targets demonstrate proactive factories. Regarding sustainability investments, including engagement in integrating circular economy principles into packaging, these are managed by Nestlé’s venture fund its business operations, through significant reductions in the which provides catalytic capital to companies. use of virgin plastics along with increased use of recycled In 2019, Nestlé opened the Nestlé Institute of Packaging content in packaging materials. Sciences to evaluate the safety and functionality of innovative packaging solutions that are recyclable, reusable, biodegradable, or compostable, with the aim to reduce the overall amount of packaging used. Non-Financial Statement 2024 59 Part 2 – Environmental Disclosures Targets Packaging Packaging Target Progress KPI Sustainability Pillar Sustainability Target Baseline year 2024 Definition Plastic Pillar 3 Better By 2025, Nestlé aims – 2025 86.4% A designed for recycling target that involves packaging Packaging – to design above 95% simplifying and redesigning plastic packaging designed Redesign of its plastic packaging formats makes recycling easier. By reducing the for recycling for recycling systems complexity of packaging, such as eliminating and continue to work unnecessary mixed materials or components, it toward 100% being increases the likelihood of compatibility with existing recyclable or reusable. recycling systems. Virgin plastic Pillar 1 Less By 2025, Nestlé aims 2018 2025 21.3% A virgin plastic reduction target, aimed at reducing the reduction Packaging – to reduce its use of use of virgin plastic by a third by 2025 compared to a versus 2018 Reduce virgin plastics by 2018 baseline, directly addresses environmental baseline one third, versus impacts by decreasing reliance on non-renewable 2018 baseline. resources and lowering plastic production-related carbon emissions. By using less virgin plastic and optimizing packaging materials, this measure helps to reduce the overall demand for new plastic. Percentage of Pillar 2 Less Eliminate non- – 2025 89.5% The target of increasing the percentage of packaging packaging that Packaging – recyclable plastics that is recyclable, reusable or compostable helps is recyclable, Reuse and Refill and investing in Nestlé reduce the use of non-recyclable plastics and reusable or innovative, alternative encourages the adoption of alternative delivery compostable Pillar 3 Better delivery systems. systems. By using more recyclable materials and Packaging – investing in innovative packaging solutions under the Redesign Engage in the Reuse and Refill, Redesign, and Recycle pillars of development Nestlé’s packaging strategy, this initiative helps Nestlé Pillar 4 Better of collection, to promote the circularity of its packaging. Additionally, system – Recycle sorting and engaging in the development of collection, sorting and recycling systems. recycling systems ensures that recyclable packaging is effectively processed and recycled, further helping reduce plastic waste and its environmental impact by 2025 compared to the 2020 baseline. Scope and definitions Target and KPI scope Virgin plastic is defined as plastic that has not been Nestlé’s targets and KPIs cover the primary, secondary and previously used or subjected to processing other than for its tertiary packaging materials for all finished food and original production. It includes fossil and bio-based plastics. beverage products sold by Nestlé and currently covers 95% Recycled plastic is defined as pre-consumer of Nestlé sales. and/or post-consumer plastic packaging as per the ISO 14021:2016 Standard. Performance data preparation All changes applied in the current reporting period apply The main source of data for KPIs is Nestlé’s sales data. in 2018 as well. For example, a company acquired in 2021 is Each unit sold has a defined weight of packaging reported in the current period and 2018 baseline is maintained and the corresponding weight is applied to all updated accordingly. units sold within the given reporting year. Generally, production data is used to obtain the detailed composition of the packaging sold (e.g. bill of materials, material specifications) with some limited exceptions depending on the relevant KPI listed on the following page. 60 Non-Financial Statement 2024 Part 2 – Environmental Disclosures Progress vs targets Methodology Plastic packaging designed for recycling (percentage) Percentage defined by reduction of usage of virgin plastic Relationship with policy objectives: between the reporting period and 2018, divided by total Pillar 3 Better Packaging – Redesign. virgin plastic volume of 2018. Virgin plastic volume is obtained by deducting the recycled plastic volume from the 95 83.5 86.4 total plastic packaging volume of the period. Primary, secondary and tertiary packaging are taken into account in the calculation. Packaging that is recyclable, reusable or compostable 2023 2024 2025 Target year (percentage) In 2024, the design of Nestlé’s plastic packaging has 86.6 89.5 improved leading to 86.4% designed for recycling, reflecting the impact of its packaging transformation projects. Methodology Packaging Designed for Recycling (D4R) refers to packaging 2023 2024 materials and formats which are compliant with Nestlé’s Negative List and aligned with the Golden Design Rules. The D4R definition also uses some aspects of the Ellen Methodology McArthur Foundation reporting guidelines and Consumer Percentage of packaging that is recyclable, reusable or Goods Forum Design Rules to better align with industry views. compostable is defined by comparing the weight in The KPI reflects the D4R status of the packaging portfolio at kilograms of these materials with the total weight in the end of the reporting year. The KPI is calculated using the kilograms of packaging. last available material specifications applied to the packaging Recyclable: As defined in the Ellen McArthur Foundation quantities of the full reporting period. reporting guideline definitions, a packaging or packaging Additional criteria from the packaging sustainability rules component is recyclable if it is successfully post-consumer on material specifications will gradually be included in future collected, sorted, and recycled with a recycling rate of 30% reporting, including black color and black carbon color, poly- in multiple regions, collectively representing more than 400 ethylene terephthalate glycol (PET G) and separability from million inhabitants. the other materials constituting the packaging. Reusable: Reusable is the characteristic of a product or packaging that has been conceived and designed to Virgin plastic reduction versus 2018 (percentage) accomplish within its lifecycle a certain number of trips, Relationship with policy objectives: rotations or uses for the same purpose for which it was Pillar 1 Less Packaging – Reduce. conceived. The weight of reusable packaging is defined by the total weight of reusable packaging, divided by Baseline year Target year the number of expected rotations over the entire life of 2018 2023 2024 2025 the package. 14.9 21.3 33 Compostable: Following ISO 18606, a material is compostable (home or industrial compostable) if through microbial activity, its biodegradable components produce compost, (also CO2 and water), and in the case of anaerobic digestion, also methane. The KPI follows FB-PF-410A.1 Sustainability Accounting In 2024, Nestlé’s usage of virgin plastic reduced by 21.3% Standard Index (SASB) requirements. versus the 2018 baseline, aligning with Nestlé’s Net Zero Roadmap and demonstrating the positive impact of its virgin plastic reduction projects. Non-Financial Statement 2024 61 Part 2 – Environmental Disclosures Resource outflows ongoing basis with stakeholders active in the circular The products and materials shown in the table reflect the key economy value chain, as well as those impacted by the value categories as outflow of Nestlé’s production process related chains’ activities. This is done on a bi-lateral meeting and to plastic packaging. Classification is based on Ellen collective convening basis. McArthur Foundation (EMF) reporting rules. For downstream informal waste collectors and workers in cooperative settings, Nestlé has partnered and engaged Ellen McArthur Foundation classification of key plastic with civil society, waste workers’ representatives, and packaging categories experts in the UN Guiding Principles for Business in Human Rights to develop the Fair Circularity Initiative, which comprises 10 guiding principles for corporate engagement Rigid plastics – PET bottles with waste workers and related programs to ensure their – Other PET rigids voices and interests are respected and considered. – HDPE bottles – HDPE other rigids – PP bottles Actions and resources – PP other rigids Flexible plastics – >A4 mono-materials PE in Champions 12.3 states that around one-third of food B2B context produced globally is either lost or wasted. Nestlé is working to – Recommendations). (4) Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures, version of October 2021 (the text can be downloaded at www.fsb-tcfd.org > Publications > Implementing guidance). Non-Financial Statement 2024 145 Appendix 2 – Statutory Non-Financial Matter Report Index (Article 964b CO) Environmental matters Disclosures in Non-Financial Statement 2024 Page reference Environmental matters Climate change 28 Pollution 45 Water resources 48 Biodiversity and ecosystems 53 Resource use and circular economy 57 Metrics Metrics used to manage environmental-related risks, opportunities Appendix 4 – Nestlé’s sustainability key 150 and performance performance indicators Social matters Disclosures in Non-Financial Statement 2024 Page reference Social matters Own workforce 66 Workers in the value chain 76 Affected communities 83 Consumers and end-users 88 Metrics Metrics used to manage social matters-related risks, opportunities Appendix 4 – Nestlé’s sustainability key 150 and performance performance indicators Employee-related matters Disclosures in Non-Financial Statement 2024 Page reference Employee-related matters Business conduct 98 General Disclosures 4 Own workforce 66 Metrics Metrics used to manage employee-related risks, opportunities Appendix 4 – Nestlé’s sustainability key 150 and performance performance indicators 146 Non-Financial Statement 2024 Appendix 2 – Statutory Non-Financial Matter Report Index (Article 964b CO) Respect for human rights Disclosures in Non-Financial Statement 2024 Page reference Respect for human rights Workers in the value chain 76 Business conduct 98 Own workforce 66 Affected communities 83 Consumers and end-users 88 Resource use and circular economy 57 Metrics Metrics used to manage human rights-related risks, opportunities Appendix 4 – Nestlé’s sustainability key 150 and performance performance indicators Combatting corruption Disclosures in Non-Financial Statement 2024 Page reference Combatting corruption Business conduct 98 Metrics Metrics used to manage corruption-related risks, opportunities Appendix 4 – Nestlé’s sustainability key 150 and performance performance indicators Material risks Disclosure in Non-Financial Statement 2024/Nestlé 2024 Annual Review Page reference General disclosures 4 Nestlé 2024 Annual Review 48–51 In addition, material risks relevant to a specific non-financial matter for which information is required to be disclosed – pursuant to Article 964b of the CO are included in the topic chapters referenced in this index with respect to such specific non-financial matter. Non-Financial Statement 2024 147 Appendix 2 – Statutory Non-Financial Matter Report Index (Article 964b CO) Policies Disclosure in Non-Financial Statement 2024 Page reference Appendix 7 – Key policies and documents 178 In addition, policies relevant to a specific non-financial matter for which information is required to be disclosed pursuant – to Article 964b of the CO are included in the topic chapters referenced in this index with respect to such specific non-financial matter. Reference to national, European or international frameworks (5) Disclosure in Non-Financial Statement 2024 Page reference General Disclosures 4 Global Reporting Initiative Content Index 167 Sustainability Accounting Standards Board Index 176 Coverage of subsidiaries Disclosure in Non-Financial Statement 2024 Page reference General Disclosures 4 (5) KPIs referenced in this Non-Financial Statement 2024 follow the criteria as specified in Appendix 1. 148 Non-Financial Statement 2024 Appendix 3 – Nestlé’s Report Pursuant to Article 964l of the Swiss Code of Obligations and the Ordinance Promulgated Thereunder Regarding Child Labor (1) The above-mentioned provisions of Swiss law require Nestlé S.A. to prepare and publish an annual report in compliance with its statutory due diligence obligations with respect to child labor. Nestlé’s child labor report consists of the information contained in the following documents.(2) 1. The information contained in – Workers in the value chain, which is available here. 2. Nestlé Human Rights Policy, which is available here. 3. Nestlé’s Human Rights Framework and Roadmap, which is available here. 4. Nestlé’s Responsible Sourcing Core Requirements, which is available here. 5. Nestlé’s Corporate Business Principles, particularly section 6 thereof, which is available here. 6. Nestlé’s Salient Issue Action Plans: Child labor and access to education, which is available here. (1) Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor (DDTrO) of 3 December 2021. (2) In each case together with any of the policies, frameworks or other documents referenced in these documents. Items 2. to 6. constitute Nestlé’s supply chain policy on child labor. Non-Financial Statement 2024 149 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators For definitions and calculations methodology of these indicators please refer to Appendix 1 – 2024 Reporting Scope and Methodology for ESG Key Performance Indicators (KPIs). General disclosures Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Number of executive members Number 15 2-9/c-i Number of non-executive Number 276 505 2-9/c-i members Percentage of variable 2-19/b remuneration dependent on sustainability-related targets and (or) impacts Short-term Incentive – % 15 Management Long-term Incentive – % 20 Management Total number of employees Number 276 000 275 000 270 000 2-7/a (head count) Total number of employees Number 277 000 2-7/a In 2024, Nestlé changed (head count) the methodology used to calculate number of employees. For more information to refer to Appendix 1. Environment Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Climate change Percentage reduction of GHG % 17.54 20.38 Disclosed in the 2023 emissions versus 2018 baseline report as 13.58, this was restated using the latest available data. Percentage of fossil sources in % 62.7 302-1/a total energy consumption Renewable electricity sourced % 63.7 78.4 91.9 95.3 FB-PF- in Nestlé’s manufacturing sites 130A.1(3) at year end Total energy consumption Gigajoules 82 779 476 80 131 120 76 824 313 78 784 554 302-1/e FB-PF- related to own operations 130A.1 (factories only) Total energy consumption MWh 21 884 598 302-1/e FB-PF- related to own operations 130A.1(1) (factories only) Total energy consumption Gigajoules 29 286 167 302-1/b FB-PF- from renewable sources 130A.1(3) (factories only) Total energy consumption MWh 8 135 046 302-1/b FB-PF- from renewable sources 130A.1(3) (factories only) Consumption of purchased Gigajoules 22 299 055 302-1/c or acquired electricity, heat, steam, and cooling from renewable sources Consumption of purchased MWh 6 194 182 302-1/c or acquired electricity, heat, steam, and cooling from renewable sources 150 Non-Financial Statement 2024 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Environment (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Climate change (continued) Consumption of purchased Gigajoules 2 020 047 or acquired electricity, heat, steam, or cooling from fossil sources Consumption of purchased MWh 561 124 or acquired electricity, heat, steam, or cooling from fossil sources Consumption of self-generated Gigajoules 52 789 302-1/c FB-PF- non-fuel renewable energy 130A.1 Consumption of self-generated MWh 14 664 302-1/c FB-PF- non-fuel renewable energy 130A.1 Percentage of renewable % 25.3 30.6 35.0 37.2 302-1/b FB-PF- sources in total 130A.1(3) energy consumption Fuel consumption from coal Gigajoules 1 415 269 302-1/a and coal products Fuel consumption from coal MWh 393 130 302-1/a and coal products Fuel consumption from crude Gigajoules 6 552 519 302-1/a oil and petroleum products Fuel consumption from crude MWh 1 820 144 302-1/a oil and petroleum products Fuel consumption from Gigajoules 39 688 112 302-1/a natural gas Fuel consumption from MWh 11 024 476 302-1/a natural gas Fuel consumption from other Gigajoules 0 302-1/a fossil sources Fuel consumption from other MWh 0 302-1/a fossil sources Global fleet of vehicles % 27.2 41.0 49.3 54.2 switched to lower emission options Gross Scope 1 greenhouse Million 3.28 3.42 3.33 3.15 3.08 305-2/a 2021 and 2022 restated gas emissions tonnes due to acquisitions, CO2e divestitures, emissions factor restatements and Gross market-based Scope 2 Million 2.02 1.48 0.78 0.33 0.26 305-2/b adjusted scope. greenhouse gas emissions tonnes CO2e Gross Scope 3 greenhouse Million 86.44 88.91 83.99 72.93 71.35 305-3/a In scope for gas emissions tonnes Net Zero Roadmap CO2e Total GHG emissions Million 91.74 93.81 88.09 76.41 74.69 tonnes CO2e Non-Financial Statement 2024 151 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Environment (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Climate change (continued) Disaggregation of GHG Million emissions by GHG category metric (for ingredients only) tonnes CO2e Carbon dioxide (CO2) Million 30.13 24.06 305-5/b metric tonnes CO2e Methane (CH4) Million 16.46 13.08 305-7/a-iv metric tonnes CO2e Nitrous oxide (N2O) Million 6.38 5.50 305-7/a-i metric tonnes CO2e Percentage reduction of GHG % 305-5/b emissions versus 2018 baseline (for ingredients only): Carbon dioxide (CO2) % 11.89 20.19 305-5/b Methane (CH4) % 15.32 20.56 305-5/b Nitrous oxide (N2O) % 11.36 13.74 305-5/b Scope 3 GHG emissions dairy Million 22.41 305-3/d and livestock metric tonnes CO2e Scope 3 GHG emissions soil Million 17.07 305-3/d and forests metric tonnes CO2e Scope 3 GHG emissions other Million 35.21 305-3/d metric tonnes CO2e Percentage of Scope 1 GHG % 33.6 305-1/2.1.1 emissions from regulated emission trading schemes Gross location-based Scope 2 Million 2.59 305-2/a greenhouse gas emissions metric tonnes CO2e Total GHG emissions Million 77.02 305-1, location-based metric 305-2, tonnes 305-3 CO2e Total GHG emissions Million 74.69 305-1, market-based metric 305-2, tonnes 305-3 CO2e Gross other indirect (Scope 3) Million 81.04 Total Scope 3 inventories. GHG emissions metric tonnes CO2e Biogenic emissions from CO2 Million 0.74 305-1/c from the combustion or metric bio-degredation of biomass tonnes not included in Scope 1 CO2e GHG emissions 152 Non-Financial Statement 2024 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Environment (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Climate change (continued) Total GHG removals Million 0.76 1.64 305-5 metric tonnes CO2e Total GHG reversals Million 0 metric tonnes CO2e Total amount of carbon credits Million 0.053 305-1/2 outside value chain that are metric verified against recognized tonnes quality standards and cancelled CO2e Total amount of carbon credits Million 0.00503 outside value chain planned to metric be cancelled in future tonnes CO2e Carbon credits: share % 0.0 (percentage of volume) of reduction projects Carbon credits: share % 100.0 (percentage of volume) of removal projects Carbon credits: share % 100.0 (percentage of volume) for each recognized quality standard Carbon credits: share % 0.0 (percentage of volume) issued from projects in European Union Percentage Nespresso coffee % 92.6 93.1 94.4 91.4 sourced through the Nespresso AAA Sustainable Quality™ Program Percentage of coffee % 81.5 87.0 92.5 93.0 supplies responsibly sourced (excluding Nespresso) Percentage of key ingredients % 16.3 22.0 36.2 44.5 FB-PF- Key ingredients refers to 14 responsibly sourced 430A.1 key agricultural raw materials that cover 95% of Nestlé's annual sourcing by volume: cereals and grains; cocoa; coconut; coffee; dairy; fish and seafood; hazelnuts; meat, poultry and eggs; palm oil; pulp and paper; soy; spices; sugar; and vegetables. Data before 2022 are not comparable since definition changed. Percentage certified palm oil % 71.1 71.0 100.0 100.0 FB-PF- 2022 data comprises sourcing (RSPO) 430A.1 Roundtable on Sustainable Palm Oil certifications and credits as follows: 20.0% segregated, 1.6% mass balance, 45.6% book and claims without including credits from independent smallholders, 3.7% book and claims from independent smallholders only. Non-Financial Statement 2024 153 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Environment (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Climate change (continued) Percentage cocoa sourced % 50.6 68.3 85.5 88.9 FB-PF- The percentage cocoa through the Nestlé Cocoa Plan 430A.1 sourced through the Nestlé Cocoa Plan includes volumes of Rainforest Alliance certified mass balance cocoa that are not accounted for in the global Responsibly Sourced indicator above. Nestlé also includes verified Nestlé Cocoa Plan volumes and farm data provided by suppliers. Percentage cage-free % 76.3 71.7 72.9 74.4 eggs sourced Number of forest and fruit trees Number 1 038 904 1 470 614 1 386 240 1 737 740 distributed to cocoa farmers Farmers trained on practices Number 435 500 419 228 497 395 472 732 404-2 Number of farmers in Number 152 236 157 157 179 399 163 643 the Nestlé Cocoa Plan Pollution Total direct output of chemical Tonnes 1911 4540 oxygen demand load to the environment Aggregated annual chemical mgO2/l 81 86 2023 figures considered oxygen demand concentration effluents after internal treatment only; whereas 2024 results account for all effluents, after both internal and external treatment. Percentage effluent water % 51 52 Metrics reported only relate treated internally to factories. Water resources Nestlé Waters volumetric water Million 2.3 4.4 8.2 benefits (VWB) delivered by cubic  implementing local water meters stewardship projects Percentage of sites where % 67.6 projects started to deliver volumetric water benefits (VWB) Percentage of total withdrawn % 39.8 volumes that are ‘regenerated’ Nestlé Waters sites certified to Number 19 21 23 25 303-1 FB-PF- the AWS Standard 140A.1 Total water consumption Million 39.0 43.9 47.2 45.0 303-5/a FB-PF- cubic  140A.1(3) meters Total water consumption in Million – – – 25.0 303-5/b FB-PF- areas at water risk, including cubic  140A.1(4) areas of high-water stress meters Water consumed in regions % 49.1 51.5 48.6 55.5 303-5/b FB-PF- with High or Extremely High 140A.1(4) Baseline Water Stress Water withdrawn in regions % 35.4 36.1 36.7 44.8 303-3/b FB-PF- with High or Extremely High 140A.1(4) Baseline Water Stress 154 Non-Financial Statement 2024 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Environment (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Water resources (continued) Total water withdrawn Million 98.0 97.1 95.6 97.9 303-3/a FB-PF- cubic  140A.1 meters Total water discharges Million 59.0 53.2 48.4 52.9 303-4/a cubic  meters Water use reduction Million 2.30 2.38 3.00 2.72 FB-PF- in factories cubic  140A.3(5.4) meters Biodiversity and ecosystems Primary supply chains for meat, % 93.4 93.5 101-6/e palm oil, pulp and paper, soy, sugar, cocoa and coffee assessed as deforestation-free: Meat % 99.9 100.0 101-6/e Palm oil % 96.0 96.3 101-6/e Pulp and paper % 98.2 99.0 101-6/e Soy % 97.9 96.1 101-6/e Sugar % 98.1 97.8 101-6/e Cocoa % 42.3 46.4 101-6/e Coffee % 92.8 93.1 101-6/e Percentage of key ingredients % 6.8 15.2 21.3 The scope of numerator in sourced from farmers 2024 includes agricultural adopting regenerative raw materials coming both agriculture practices from Nestlé Farmer Connect value chain (Nestlé Farmer Connect program works directly with farmers to ensure supply of certain agricultural raw materials) and from industrial suppliers for the following categories: dairy (fresh milk and dairy derivatives); coffee (excluding blended green coffee and blue bottle); cocoa; cereals and grains; soy; vegetables, sugar. Please refer to the Appendix 1 – 2024 Reporting Scope and Methodology for ESG Key Performance Indicators (KPIs) for full details. Number of trees planted Number 6 826 000 7 039 421 Commitment is cumulative, under GRP however, all numbers provided here are annual achievements. Non-Financial Statement 2024 155 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Environment (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Resource use and circular economy Plastic packaging designed % 74.9 81.9 83.5 86.4 306-2 FB-PF- Based on the Ellen for recycling Manage- 410A.1 MacArthur Foundation ment of Global Commitment significant reporting rules. waste-realt- ed impacts Virgin plastic reduction versus % 8.1 10.5 14.9 21.3 306-2 2018 baseline Manage- ment of significant waste-realt- ed impacts Percentage of packaging % 85.4 85.8 86.6 89.5 306-2 FB-PF- Based on the Ellen that is recyclable, reusable Manage- 410A.1 MacArthur Foundation or compostable ment of Global Commitment significant reporting rules. waste-realt- ed impacts Total weight of Metric 1 811 947 1 564 810 1 770 141 306-3/a waste generated tonnes Hazardous waste Metric 839 3157 631 306-3/a Changes in the classification generated – biomass tonnes of waste in 2022 mean that prior year data is not comparable. Non-hazardous waste Metric 1 414 716 1 027 439 1 174 624 306-3/a generated – biomass tonnes Hazardous waste Metric 33 061 9622 13 506 306-3/a generated – other waste tonnes Non-hazardous waste Metric 363 331 524 592 581 380 306-3/a generated – other waste tonnes Global PET (Polyester) use % 32.1 34.8 34.2 33.3 Global PE (Polyethylene) use % 18.1 19.1 19.1 19.2 Global PP (Polypropylene) use % 19.4 21.6 23.7 25.9 Global PO (Polyolefin) use % 5.4 6.6 6.5 7.2 Global laminates use % 24.1 17.2 15.3 13.6 Global use, other plastics % 0.8 0.7 1.2 0.8 Total weight of packaging Million 3.8 3.6 3.4 3.4 301-1/a FB-PF- tonnes 410A.1 Total weight of Kilotonnes 927.0 896.6 872.9 plastic packaging Packaging made from recycled % 39.5 36.0 41.5 43.2 301-2/a FB-PF- and/or renewable materials 410A.1 Packaging that is reusable % 1.00 0.84 0.49 FB-PF- 410A.1 Recycled content in % 4.3 7.7 9.3 14.7 306-2 FB-PF- plastic packaging 410A.1 Packaging pieces placed Billions 344 330 320 321 306-2 FB-PF- 2021 data restated due to on the market 410A.1 acquisitions, divestitures and packaging changes. 156 Non-Financial Statement 2024 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Social Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Own workforce Employees having access to Number 227 640 233 385 233 385 235 396 My Health Numbers program Employees having participated in Number 49 687 108 830 118 401 123 592 My Health Numbers program Number of employees that Number 31 636 33 136 37 157 38 924 Due to a methodology completed #HealthyLives, a change in the tracking global training on physical process (removal of activity, mental health, nutrition curriculum counting), Nestlé and sleep (cumulative) can observe a decrease in the total number of Number of views of Number 445 776 509 974 530 340 564 041 employees versus the #HealthyLives (global training cumulative numbers on physical activity, mental reported in 2023. health, nutrition and sleep) videos (cumulative) Countries offering a nap room % 53.0 54.5 38.0 48.0 or equivalent to rest Canteens offering a % 94.4 94.6 96.0 95.8 healthy meal Number of views of Number 14 480 4066 3885 2991 HealthTalks webinars Number of views of the global Number 130 063 156 600 227 000 322 319 employee health and wellbeing communication campaigns (Healthy Life Days) Activations in Pleaz platform to Number 26 193 60 452 123 374 155 589 support mental health and physical activity Countries offering Employee % 93 97 403-6/a Assistance Program (EAP) to support employee’s mental health and wellbeing Countries providing supportive % 93 76 403-6/a measures for employees working with cancer or other critical health conditions Number of primary and Number 58 272 55 119 401-3/b secondary caregivers having used paid parental leave Retention of primary and Number 92.7 91 401-3/e secondary caregivers having used paid parental leave after one year CARE audit gaps closed Number 161 283 186 84 2-16b CARE audits performed Number 247 264 194 245 2-16b CARE audit gaps identified Number 333 511 298 227 2-16b Average hours of technical or Hours – 13.8 404-1/a The 2024 KPI has been vocational training provided expanded to the entire to workers in the company employee headcount of Nestlé, whereas the previous KPI was based only on the operations workforce. Average hours of technical Hours 15.8 9.3 15.1 404-1/a or vocational training provided to workers in the Company's operations Nestlé employees hired under Number 23 899 26 610 23 804 23 238 30 years old, unlimited and temporary contract Non-Financial Statement 2024 157 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Social (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Own workforce (continued) Total number of employees by Number 259 930 2-7 employment type (permanent and temporary), by gender: Permanent male Number 155 175 147 310 149 800 147 187 2-7/b-i Permanent female Number 94 337 94 072 96172 96 313 2-7/b-i Permanent other Number 53 2-7/b-i Temporary male Number 8632 7883 7857 7916 2-7/b-ii Temporary female Number 8779 8335 8471 8455 2-7/b-ii Temporary other Number 6 2-7/b-ii Total number of employees by Number 2-7 employment type (full-time and part-time), by gender: Full-time employees: male Number 160 649 152 629 154 752 152 722 2-7 Full-time employees: female Number 96 382 95 991 98 503 99 064 2-7 Part-time employees: male Number 3158 2564 2905 2381 2-7 Part-time employees: female Number 6734 6416 6140 5704 2-7 Total number of employees Number 2-7 by employment contract (permanent and temporary), by region: Permanent Asia, Number 55 034 58 304 57 276 2-7/b-i Oceania, Africa Permanent Europe Number 76 618 77 222 75 949 2-7/b-i Permanent Greater China Number 19 366 18 280 17 495 2-7/b-i Permanent Latin America Number 55 125 53 732 54 935 2-7/b-i Permanent North America Number 35 267 38 495 37 898 2-7/b-i Data not available for prior years due to restructure of Temporary Asia, Number 3868 3781 3763 2-7/b-ii geographical zones. Oceania, Africa Temporary Europe Number 7152 6975 7266 2-7/b-ii Temporary Greater China Number 276 560 608 2-7/b-ii Temporary Latin America Number 4512 4570 4350 2-7/b-ii Temporary North America Number 412 446 390 2-7/b-ii Percentage of total employees % 54.4 56.3 52.7 51.3 2-30/a covered by collective bargaining agreements Gender distribution in number Number 405-1/b-i of employees (head count) at top management level: Male Number 19 781 405-1/b-i Female Number 17 798 405-1/b-i Other Number 4 405-1/b-i Total Number 37 583 405-1/b-i 158 Non-Financial Statement 2024 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Social (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Own workforce (continued) Gender distribution in % 405-1/a-i percentage of employees at top management level: Male % 52.6 405-1/b-i Female % 47.4 405-1/b-i Other % 0.0 405-1/b-i Total % 100.0 405-1/b-i Percentage of management % 46.4 47.4 405-1/b-i positions held by women Percentage of women on % 33.3 38.5 405-1/b-i company board Chairperson is a woman Yes/No No No Gender balance in % 20.0 20.0 board leadership Chief Executive Offer (CEO) Yes/No No No is a woman Woman Chief Financial Offier Yes/No No Yes 405-1/b-i (CFO) or equivalent Percentage of women % 31.2 40.0 executive officers Chief Diversity Officer (CDO) Yes/No Yes Yes Percentage of women in % 46.4 47.4 405-1/b-i total management Percentage of women in % 34.6 36.0 405-1/b-i senior management Percentage of women in % 47.0 47.9 405-1/b-i middle management Percentage of women in % 38.9 39.2 405-1/b-i non-managerial positions Percentage of women in % 39.8 40.3 405-1/b-i total workforce Percentage of women % 51.7 51.4 total promotions Percentage of women % 14.01 14.6 2023 data restated IT/Engineering from 31.0%. Percentage of new hires % 44.7 47.1 401-1/a are women Percentage of women attrition % 45.8 45.9 Number of weeks of fully paid Number 18 18 401-2 primary parental leave offered Number of weeks of fully Number 4 4 401-3 paid secondary parental leave offered Parental leave retention rate % 91.9 91.0 401-3/e Flexible working policy Yes/No Yes Yes Employee resource groups Yes/No Yes Yes for women Unconscious bias training Yes/No Yes Yes Annual anti-sexual Yes/No Yes Yes harassment training Non-Financial Statement 2024 159 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Social (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Own workforce (continued) Recordable injury rate per Number 1.33 1.21 1.17 1.14 403-9/a-iii million hours worked Total recordable fatalities Number 3 6 1 4 403-9/a-i (injury related) Total irreversible injuries Number 13 22 10 18 403-9/a-iii Recordable illness rate per Number 0.71 0.66 0.66 0.50 million hours worked Total recordable fatalities Number 0 0 0 0 403-10/a (illness related) Total irreversible illnesses Number 20 20 16 10 403-10/a Global mean (average) raw Percentage 6.7 -9.1 405-2 In 2024, Nestlé expanded gender pay gap the number of employees included within the scope to also cover those under a collective bargaining agreement. Subsequently, this changed the mix of male and female profiles, significantly altering the final result of the analysis versus 2023. Workers in the value chain Number of households covered Number 87 422 108 810 123 953 408-1/c by the CLMRS to prevent and address child labor risks Total number of children who Number 96 580 408-1/c The methodology has have received support through changed in 2024 and the prevention and remediation data is not comparable with actions as part of the CLMRS previous years. Total number of children who Number 15 035 28 583 2022 and 2023 data only have received support through includes children helped for prevention and remediation the first time. actions as part of the CLMRS Number of children who Number 8974 12 135 26 857 408-1/c Cumulative number since reported no longer engaging in the implementation of the potentially hazardous activities CLMRS in 2012. as part of the CLMRS Percentage volume of cocoa % 70.6 88.9 408-1/c covered by the CLMRS or other dedicated due diligence systems, including mass balance Affected communities Young people around the world Million 401-2 with access to economic opportunities since 2017: Cumulative Million 3.8 5.6 7.7 10.2 401-2 Per year Million 2.1 2.5 401-2 Apprenticeship and Number 11 598 11 495 10 807 10 612 401-2 traineeship opportunities Young farmers trained through Number 7422 5121 8464 9574 agripreneurship program Young people impacted through Number 1 291 306 1 415 687 1 393 147 1 648 290 digital events (e.g. career fairs, educational webinars, e-learning programs) that focus on upskilling young people and make them more employable 160 Non-Financial Statement 2024 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Social (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Affected communities (continued) Young entrepreneurs who have Number 64 977 72 630 70 838 received some basic but tangible benefit from Nestlé Community giving investment: CHF Financial aid CHF 39 265 000 38 532 000 201-1/a-ii Product donations CHF 135 490 000 110 219 000 201-1/a-ii Others CHF 2 716 000 3 571 000 201-1/a-ii Total amount CHF 177 471 000 152 322 000 201-1/a-ii Consumers and end-users Number of servings of Billions 128.4 129.2 127.6 132.0 affordable nutrition with micronutrient fortification Total number of servings of Billions 196.4 202.1 197.1 198.7 The ‘big four’ micronutrients micronutrient fortified foods are iron, vitamin A, iodine and beverages and zinc. 2021 data corrected to adjust for some products that were reclassified. This KPI is excluding CPW in line with the scope of reporting. Health Star Rating – Less than % 21 21 21 Covers 73% of total net sales 1.5 – without pet care in 2024. Excludes products that are not foods or Health Star Rating – Between % 22 20 20 beverages for consumption 1.5 and 3.5 – without pet care and some entities where the recipes were not available Health Star Rating – 3.5 and % 37 38 38 this year. Health Star Ratings above – without pet care are calculated based on the recipe for each product and are not necessarily included in the product label. Specialized nutrition – without % 20 21 21 pet care (HSR) Percentage of global NNS % 79 76 73 covered by the assessment – without pet care (HSR) Health Star Rating – Less than % 17 17 17 Covers 92% of total net sales 1.5 – with pet care in 2024. Excludes products that are not foods or Health Star Rating – Between % 18 16 16 beverages for consumption 1.5 and 3.5 – with pet care and some entities where the recipes were not available Health Star Rating – 3.5 and % 30 31 30 this year. Health Star Ratings above – with pet care are calculated based on the recipe for each product and are not necessarily included in the product label. Specialized nutrition – with pet % 35 36 37 care (HSR) Percentage of global NNS % 97 95 92 covered by the assessment – with pet care (HSR) Number of countries with audits Number 32 39 33 on the Nestlé Policy for implementing the WHO Code Instances of detected Number 96 125 186 416-2 FB-PF- non-compliance with the 270A.3 Nestlé Policy for implementing the WHO Code Non-Financial Statement 2024 161 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Social (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Consumers and end-users (continued) Compliance with Nestlé 417-3 Marketing Communication to Children policy: TV % 98.7 98.4 98.4 Websites % 100.0 100.0 100.0 Social media % 83.4 100.0 100.0 Influencers % 100.0 37.5 88.9 100% of the audited influencers’ posts were assessed as not appealing to children below 13 years. Following a change in methodology, breaches for posts not targeted to children are also included. Average total % 95.5 84.0 96.8 Compliance with Nestlé % 417-3 Updated methodology Marketing Communication to reflect Nestlé’s new to Children policy: Policy commitments. TV % 100.0 Digital media % 92.3 Social media % 89.6 Average total % 96.9 Number of food safety Number 9 10 13 5 FB-PF- recalls issued 250A.4 Number of data breaches Number 8 8 16 418-1/b The number of data notified to authorities breaches reported here for 2024 only includes breaches that have affected consumers and excludes any other category of individuals. The reason the 2023 number is marked as ‘–’ is because in 2023, Nestlé only reported the total number of data breaches, including those affecting consumers, employees and other individuals. Therefore, the KPI that was reported in 2023 is not comparable to the 2024 KPI that relates solely to consumers. Governance Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Business conduct Percentage of FSSC Certified % 97 98 98.4 95.3 Manufacturing and R&D units that produce food and pet food for human and pet (cats and dogs) consumption Percentage of ingredients % by cost 88.0 91.9 92.9 94.4 FB-PF- sourced from Tier 1 supplier 250A.2 facilities certified to a Global Food Safety Initiative (GFSI) recognized food safety certification program 162 Non-Financial Statement 2024 Appendix 4 – Nestlé’s Sustainability Key Performance Indicators Governance (continued) Indicator Unit Baseline value (2018) 2021 2022 2023 2024 GRI index SASB index Notes on the data Business conduct (continued) Total messages received Number 2475 2516 2874 3218 2-26/a-ii through Speak Up system Selected messages received Number through Speak Up system by sub-category: Labor practice Number 373 272 249 292 2-26/a-ii Harassment (excluding Number 108 168 214 216 2-26/a-ii sexual harassment) Fraud (misappropriation or Number 137 128 131 130 2-26/a-ii misconduct on accounting/ financial statement) Safety and health Number 156 122 88 155 2-26/a-ii Bribery and corruption Number 55 88 47 189 2-26/a-ii Messages received did not (including conflict of interest) involve government officials. Violence and Number 78 86 172 146 2-26/a-ii discrimination Sexual harassment Number 59 81 104 72 2-26/a-ii Human rights Number 49 16 1 3 2-26/a-ii (child labor, forced labor and modern slavery) Confidential information, Number 49 65 51 44 2-26/a-ii privacy policy (data privacy, trade secrets, intellectual property) Total cases substantiated Number 580 578 691 644 2-26/a-ii through Speak Up system Selected cases substantiated Number through Speak Up system by sub-category: Labor practice Number 77 69 69 37 2-26/a-ii Harassment (excluding Number 37 52 44 42 2-26/a-ii sexual harassment) Sexual harassment Number 22 36 29 26 2-26/a-ii Fraud (misappropriation or Number 28 35 43 46 2-26/a-ii misconduct on accounting/ financial statement) Bribery and corruption Number 4 22 5 33 2-26/a-ii Cases substantiated did not (including conflict of interest) involve government officials. Safety and health Number 29 21 21 28 2-26/a-ii Violence and Number 19 16 53 35 2-26/a-ii discrimination Human rights Number 1 0 1 0 2-26/a-ii (child labor, forced labor and modern slavery) Confidential information, Number 11 8 18 5 2-26/a-ii privacy policy (data privacy, trade secrets, intellectual property) Total messages closed through Number 1944 1758 2341 2420 2-16b Speak Up system Total monetary value of CHF 225 000 225 000 415-1/a financial political contributions made by the organization in Switzerland Non-Financial Statement 2024 163 Appendix 5 – TCFD Index (1) Governance Disclosure in the Nestlé Summary of Nestlé’s alignment with the Task Force on Non-Financial Statement 2024 Climate-related Financial Disclosures (TCFD) Board’s oversight Page 5 Oversight of climate-related risks and opportunities is embedded at the highest level. The Board has oversight of climate-related matters and monitors progress toward related goals. The Board is responsible for the strategy and organization and provides oversight of its financial and non-financial performance and reporting. The Board approves the Company’s ESG/sustainability strategy and approves its Non-Financial Statement for submission to the Annual General Meeting. Management’s role Page 5 The Executive Board is responsible for executing sustainability strategies, including the Nestlé Net Zero Roadmap, through an ESG & Sustainability Council. Strategy Disclosure in the Nestlé Summary of Nestlé's alignment with the Task Force on Climate-related Non-Financial Statement 2024 Financial Disclosures (TCFD) Climate-related risks Pages 21–24 and 32–33 Climate change is considered a material risk for Nestlé. Within Nestlé’s Enterprise and opportunities Risk Management framework, an annual assessment of climate change risks is Impacts of climate-related Pages 21–24 and 32–33 conducted and strategy and plans to mitigate them are reviewed. Nestlé assesses risks and opportunities related financial risks using a discounted cash flow methodology. Resilience of the Pages 21–24 and 32–33 The assessment establishes: organization’s strategy – Transition risks: Nestlé has assessed transition risks over 10 years, based on analysis of risk impacts from Low – Paris Ambition, Intermediate – RCP 4.5 and High – RCP 8.5. Modeling results show a degree of exposure, but the Nestlé Net Zero Roadmap could materially reduce this. – Physical risks: changing temperatures and weather extremes can affect Nestlé’s operations. For 12 key ingredients covering 90% of Nestlé’s spend, Nestlé estimated the yield change in 2040 versus today in a ‘steady-state’, intermediate climate scenario (+2 to 3°C by 2100), discounting the unpredictable impacts of extreme events. Nestlé is well positioned to implement nature-based solutions for less resource-intense and more resilient food production. (1) Nestlé has prepared disclosures referenced in this appendix according to the TCFD Recommendations published in 2017 and 2021. 164 Non-Financial Statement 2024 Appendix 5 – TCFD Index Risk management Disclosure in the Nestlé Summary of Nestlé’s alignment with the Task Force on Non-Financial Statement 2024 Climate-related Financial Disclosures (TCFD) Processes for Pages 21–24 The process for assessing and addressing climate-related risks in Nestlé’s identifying and assessing operations and along the value chain involves a comprehensive approach climate-related risks integrated throughout the organization. These assessment processes are Processes for managing Pages 21–24 conducted annually and cover all stages of the value chain including direct climate-related risks operations, upstream and downstream. Nestlé’s approach to assessment Integration into the Pages 21–24 includes the following: organization’s overall – Top-down climate assessments are formally incorporated into the annual risk management strategic portfolio reviews for Strategic Business Units and Globally Managed Businesses. Each unit considers how climate-related risks may affect strategy and future business projections. – Bottom-up scenario analyses are used to assess the resilience of Nestlé’s strategy under different climate scenarios. The relevant operational teams, including procurement, agriculture, and supported by quantitative third-party modelling, review the most significant climate-related risk, develop mitigation strategies and identify opportunities. – The Nestlé Global Property Loss Prevention Program conducts in-depth assessments of natural catastrophe risks (such as precipitation, flood, hail, heat and drought) for existing sites and greenfield projects. The process is based on the use of quantitative third-party models to generate a baseline for current expected losses and future expected losses. Where appropriate, remedial action including associated capital expenditure at site level is defined. It also supports decision-making for future standards prevention and protection. The insights and findings of the climate-risk analysis are presented yearly to executive management and the Board of Directors to integrate risk considerations into corporate governance and strategic planning. The outcomes are incorporated into Nestlé’s strategic planning and fully integrated into Nestlé’s overall risk management processes across all levels of the organization. Targets Disclosure in the Nestlé Summary of Nestlé's alignment with the Task Force on Climate-related Non-Financial Statement 2024 Financial Disclosures (TCFD) Targets used to Pages 32–33, 166 Nestlé reviews its progress against the Net Zero Roadmap to validate that its manage climate-related activities are keeping it on the path to net zero and are helping mitigate and risks, opportunities adapt to climate risk throughout its value chain. and performance Non-Financial Statement 2024 165 Appendix 5 – TCFD Index Key selected metrics Unit 2021 2022 2023 2024 Related target Achieved reduction of GHG % 17.54 (2) 20.38 emission vs. 2018 baseline Gross Scope 1 greenhouse gas Million 3.38 3.27 3.16 3.08 emission (CO2e) metric tonnes Gross market-based Scope 2 Million 1.44 0.74 0.31 0.26 greenhouse gas emissions (CO2e) metric tonnes Gross Scope 3 greenhouse gas Million 98.75 93.79 84.08 71.35 emissions (CO2e) metric tonnes Total (Scopes 1, 2 & 3) Million 103.58 97.80 87.54 74.69 GHG emissions (CO2e) metric tonnes Nestlé’s Net Zero Roadmap Primary supply chains for meat, % 93.4 93.5 with intermediate targets: palm oil, pulp and paper, soy, sugar, – Reduce by 20% by 2025 and cocoa and coffee assessed as 50% by 2030 from 2018 deforestation-free levels, on the road to net Key ingredients sourced from % 6.8 15.2 21.3 zero by 2050 at the latest farmers adopting regenerative agriculture practices Renewable electricity sourced in % 63.7 78.4 91.9 95.3 Nestlé's manufacturing sites at year end Total energy consumption from Gigajoules 29 286 167 renewable sources (factories only) Total energy consumption from MWh 8 135 046 renewable sources (factories only) Virgin plastic reduction % – – 14.9 21.3 Part of Nestlé’s packaging vs. 2018 baseline sustainability strategy. Nestlé is committed to 33% virgin plastic reduction by 2025 compared to 2018. Water use reduction in factories Million 2.72 Nestlé sets annual targets of cubic meters water use reduction in its manufacturing sites, especially in those located in water stressed areas. (2) Disclosed in the 2023 report as 13.58, this was restated using the latest available data. 166 Non-Financial Statement 2024 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 About this index This content index accompanies Nestlé’s Non-Financial Statement 2024, which has been produced with reference to the Global Reporting Initiative (GRI) Consolidated Set of Standards 2021 and the Sustainability Accounting Standards Board (SASB) Standard for the Processed Foods sector. It is designed to help stakeholders locate the relevant disclosures against each reporting standard. In addition to these reporting standards, Nestlé's disclosures reflect the results of a comprehensive materiality assessment undertaken by an independent third party. Nestlé includes all material disclosures in its index. For a detailed explanation of the indicators included in this index, visit the GRI website or the SASB website. The data in this report relate to the fiscal year ending December 31, 2024, unless otherwise stated. Global Reporting Initiative Content Index Nestlé has reported the information cited in this GRI content index for the period calendar year ending December 2024, with reference to the GRI Standards. Nestlé used GRI 1: Foundation 2021. Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 2: General disclosures 2021 General disclosures 2-1 Introduction, page 3 Annual Review 2024 Organizational details 2-2 About this Non-Financial Statement 2024, page 4 Entities included in the organization’s sustainability reporting 2-3 About this Non-Financial Statement 2024, page 4 Reporting period, frequency and contact point 2-4 Climate change, page 28 Restatements of information Pollution, page 47 Employee relations, page 66 Diversity, equity and inclusion, page 73 Consumption of safe and quality products, page 93 2-5 About this report, page 103 External assurance 2-6 About this Non-Financial Statement 2024, page 4 Annual Review 2024 Activities, value chain and other business relationships 2-7 Own workforce, page 70 Employees 2-9 Governance, page 6 Annual Review 2024 Governance structure and composition 2-10 Corporate Governance Report 2024 Nomination and selection of the highest governance body 2-11 Corporate Governance Report 2024 Chair of the highest governance body Non-Financial Statement 2024 167 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 2: General disclosures 2021 (continued) General disclosures (continued) 2-12 Governance, page 6 Role of the highest governance body in overseeing the management of impacts 2-13 Governance, page 6 Delegation of responsibility for managing impacts 2-14 Governance, page 6 Role of the highest governance body in sustainability reporting 2-15 Business conduct, Corporate culture, page 99 Code of Business Conduct Conflicts of interest 2-16 Business conduct, Whistleblowing, page 101 Communication of critical concerns 2-17 Corporate Governance Report 2024 Collective knowledge of the highest governance body 2-19 Governance, page 8 Compensation Report 2024 Remuneration policies 2-20 Governance, page 8 Compensation Report 2024 Process to determine remuneration 2-22 CEO letter Creating Shared Value at Nestlé, page 3 Statement on sustainable development strategy 2-23 Nestlé Policies Overview, page 26 Policy commitments Appendix 7 – Key Policies and Documents, page 178 2-24 Business conduct, page 98 Embedding policy commitments and throughout the Non-Financial Statement 2024 under relevant individual sustainability matters 2-25 Business conduct, page 98 Processes to remediate negative impacts 2-26 Business conduct, Whistleblowing, page 101 Mechanisms for seeking advice and raising concerns 2-27 Business conduct, page 98 Compliance with laws and regulations 2-28 Governance, page 8 www.nestle.com/sustainability/ Membership associations responsible-business/leadership-advocacy 2-29 Governance, page 8 Approach to stakeholder engagement 2-30 Employee relations, page 66 Collective bargaining agreements 168 Non-Financial Statement 2024 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 3: Material topics 2021 Material topics 3-1 Double materiality assessment, page 11 Process to determine material topics 3-2 Double materiality assessment, page 11 List of material topics 3-3 Double materiality assessment, page 11 Management of material topics and through the Non-Financial Statement 2024 GRI 200: Economic performance GRI 201: Economic performance 2016 201-1 Annual Review 2024 Direct economic value generated and distributed 201-2 Assessing and addressing climate-related risks, page 21 Financial implications and Assessing aclimate-related opportunities, page 24 other risks and opportunities due to climate change GRI 203: Indirect economic impacts 2016 203-1 Actions and Resources section in each of the sustainability Infrastructure investments and matters throughout the Non-Financial Statement 2024 services supported 203-2 Significant indirect economic impacts GRI 205: Anti-corruption 2016 205-1 Business conduct, page 98 Operations assessed for risks related to corruption 205-2 Business conduct, page 98 Communication and training about anti-corruption policies and procedures 205-3 Business conduct, page 102 Confirmed incidents of corruption and actions taken GRI 206: Anti-competitive behavior 2016 206-1 Business conduct, page 98 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Non-Financial Statement 2024 169 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 200: Economic performance (continued) GRI 207: Tax 2019 207-1 www.nestle.com/sustainability/ Approach to tax responsible-business/tax- management-strategy 207-2 www.nestle.com/sustainability/ Tax governance, control, responsible-business/tax- and risk management management-strategy 207-3 www.nestle.com/sustainability/ Stakeholder engagement and responsible-business/tax- management of concerns related to tax management-strategy 207-4 www.nestle.com/sustainability/ Country-by-country reporting responsible-business/tax- management-strategy GRI 300: Environmental disclosures GRI 301: Materials 2016 301-1 Packaging, page 64 Materials used by weight or volume Appendix 4, page 156 301-2 Packaging, page 64 Recycled input materials used Appendix 4, page 156 301-3 Packaging, page 64 Reclaimed products and their Appendix 4, page 156 packaging materials GRI 302: Energy 2016 302-1 Climate change, page 38 Energy consumption within Appendix 4, page 150 the organization 302-2 Climate change, page 38 Energy consumption outside of Appendix 4, page 150 the organization 170 Non-Financial Statement 2024 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 300: Environmental disclosures (continued) GRI 303: Water and Effluents 2018 303-1 Water resources, page 48 Interactions with water as a Appendix 4, page 154 shared resource 303-2 Water resources, page 48 Management of water discharge-related impacts 303-3 Water resources, page 50 Water withdrawal Appendix 4, page 154 303-4 Water resources, page 50 Water discharge Appendix 4, page 155 303-5 Water resources, page 50 Water consumption Appendix 4, page 154 GRI 304: Biodiversity 2016 304-2 Biodiversity and ecosystems, page 53 Significant impacts of activities, products and services on biodiversity 304-3 Biodiversity and ecosystems, page 53 Habitats protected or restored GRI 305: Emissions 2016 305-1 Climate change, page 39 Direct (Scope 1) GHG emissions Appendix 4, page 151 305-2 Climate change, page 39 Energy indirect (Scope 2) GHG emissions Appendix 4, page 151 305-3 Climate change, page 39 Other indirect (Scope 3) GHG emissions Appendix 4, page 151 305-5 Climate change, page 39 Reduction of GHG emissions Appendix 4, page 151 GRI 306: Waste 2020 306-1 Resource use and circular economy, page 57 Waste generation and significant waste-related impacts 306-2 Resource use and circular economy, page 57 Management of significant Appendix 4, page 156 waste-related impacts 306-3 Resource use and circular economy, page 57 Waste generated Appendix 4, page 156 Non-Financial Statement 2024 171 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 400: Social disclosures GRI 401: Employment 2016 401-3 Diversity, equity and inclusion, page 73 Parental leave GRI 403: Occupational health and safety 2018 403-1 Health and safety, page 71 Occupational health and safety management system 403-2 Health and safety, page 71 Hazard identification, risk assessment, and incident investigation 403-3 Health and safety, page 71 Occupational health services 403-4 Health and safety, page 71 Worker participation, consultation, and communication on occupational health and safety 403-5 Health and safety, page 71 Worker training on occupational health and safety 403-6 Health and safety, page 71 Promotion of worker health Appendix 4, page 157 GRI 403: Occupational health and safety 2018 (continued) 403-7 Health and safety, page 71 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 403-9 Health and safety, page 71 Work-related injuries Appendix 4, page 160 403-10 Health and safety, page 71 Work-related ill health Appendix 4, page 160 172 Non-Financial Statement 2024 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 400: Social disclosures (continued) GRI 404: Training and education 2016 404-1 Employee relations, page 66 Average hours of training per year Appendix 4, page 157 per employee 404-2 Employee relations, page 66 Programs for upgrading employee skills Appendix 4, page 157 and transition assistance programs GRI 405: Diversity and equal opportunity 2016 405-1 Diversity, equity and inclusion, page 73 Diversity of governance bodies Appendix 4, page 158 and employees 405-2 Diversity, equity and inclusion, page 73 Ratio of basic salary and remuneration Appendix 4, page 160 of women to men GRI 406: Non-discrimination 2016 406-1 Business conduct, page 98 Incidents of discrimination and corrective actions taken GRI 408: Child labor 2016 408-1 Workers in the value chain, page 76 Operations and suppliers at significant risk for incidents of child labor GRI 409: Forced or compulsory labor 2016 409-1 Workers in the value chain, page 77 Operations and suppliers at significant risk for incidents of forced or compulsory labor Non-Financial Statement 2024 173 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 400: Social disclosures (continued) GRI 413: Local communities 2016 413-1 Workers in the value chain, page 77 Operations with local community engagement, impact assessments, and development programs GRI 415: Public policy 2016 415-1 Appendix 4, page 163 Political contributions GRI 416: Customer health and safety 2016 416-1 Consumption of safe and quality products, page 93 Assessment of the health and safety impacts of product and service categories 416-2 Consumption of safe and quality products, page 93 Incidents of non-compliance Business conduct, page 98 concerning the health and safety impacts of products and services 174 Non-Financial Statement 2024 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 Global Reporting Initiative Content Index (continued) Disclosure in Nestlé Non-Financial Disclosure Statement 2024 Further information GRI 400: Social disclosures (continued) GRI 417: Marketing and labeling 2016 417-1 Ensuring compliance with Nestlé marketing policies, page 91 Requirements for product and service information and labeling 417-2 Ensuring compliance with Nestlé marketing policies, page 91 Incidents of non-compliance Business conduct, page 98 concerning product and service information and labeling 417-3 Ensuring compliance with Nestlé marketing policies, page 91 Incidents of non-compliance Business conduct, page 98 concerning marketing communications GRI 418: Customer privacy 2016 418-1 Protecting consumers’ personal data, page 95 Substantiated complaints concerning Business conduct, page 98 breaches of customer privacy and losses of customer data Non-Financial Statement 2024 175 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 SASB Index Disclosure in Nestlé Non-Financial Accounting metric Code Relevant GRI Disclosure Statement 2024 Energy management 1) Total energy consumed FB-PF-130a.1 302-1 Climate change, page 38 2) Percentage renewable FB-PF-130a.1 302-1 Water management (1) Total water withdrawn, FB-PF-140a.1 303-1, 303-2, 303-3, 303-5 Water resources, page 50 (2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress Description of water management FB-PF-140a.3 303-1, 303-2, 303-3, 303-5 Water resources, page 50 risks and discussion of strategies and practices to mitigate those risks Food safety Global Food Safety Initiative (GFSI) audit FB-PF-250a.1 416-2 Consumers and end-users, page 95 (1) non-conformance rate and (2) associated corrective action rate for (a) major and (b) minor non-conformances Percentage of ingredients sourced from FB-PF-250a.2 416-2 Consumers and end-users, page 95 Tier 1 supplier facilities certified to a Global Food Safety Initiative (GFSI) recognized food safety certification program (1) Total number of notices of FB-PF-250a.3 416-2 Not disclosed food safety violation received, (2) percentage corrected (1) Number of recalls issued and FB-PF-250a.4 416-2 Consumers and end-users, page 95 (2) total amount of food product recalled Health and nutrition Discussion of the process to identify FB-PF-260a.2 – Consumers and end-users, page 88 and manage products and ingredients related to nutritional and health concerns among consumers 176 Non-Financial Statement 2024 Appendix 6 – Global Reporting Initiative and Sustainability Accounting Standards Board Indexes 2024 SASB Index (continued) Disclosure in Nestlé Non-Financial Accounting metric Code Relevant GRI Disclosure Statement 2024 Product labeling and marketing Percentage of advertising impressions FB-PF-270a.1 – Consumers and end-users, page 93 (1) made on children and (2) made on children promoting products that meet dietary guidelines Revenue from products labeled as FB-PF-270a.2 – Not disclosed (1) containing genetically modified organisms (GMOs) and (2) non-GMO Number of incidents of non-compliance FB-PF-270a.3 417-2 Consumers and end-users, page 93 with industry or regulatory labeling and/or marketing codes Total amount of monetary losses as a FB-PF-270a.4 417-3 Not disclosed result of legal proceedings associated with labeling and/or marketing practices Packaging lifecycle management 1) Total weight of packaging, FB-PF-410a.1 301-1, 301-2, 301-3 Resource use and circular economy, page 64 (2) percentage made from recycled and/or renewable materials, and (3) percentage that is recyclable, reusable, and/or compostable Discussion of strategies to reduce FB-PF-410a.2 301-1, 301-2, 301-3 Resource use and circular economy, page 57 the environmental impact of packaging throughout its lifecycle Environmental and social impacts of ingredient supply chain Percentage of food ingredients FB-PF-430a.1 308-1, 414-1 Responsible sourcing, page 43 sourced that are certified to third-party environmental and/or social standards, and percentages by standard Suppliers’ social and environmental FB-PF-430a.2 308-1, 414-1 Not disclosed responsibility audit (1) non-conformance rate and (2) associated corrective action rate for (a) major and (b) minor non-conformances Ingredient sourcing Percentage of food ingredients FB-PF-440a.1 303-1, 303-2, 303-3 Not disclosed sourced from regions with High or Extremely High Baseline Water Stress List of priority food ingredients and FB-PF-440a.2 308-1, 414-1 Responsible sourcing, page 43 discussion of sourcing risks due to Resilience analysis study, page 34 environmental and social considerations Non-Financial Statement 2024 177 Appendix 7 – Key Policies and Documents Nestlé Agriculture Framework Nestlé Employee Relations Policy The Nestlé Agriculture Framework describes Nestlé’s vision The Nestlé Employee Relations Policy provides a frame of for agriculture as a central building block for advancing reference for the collective relationships with trade unions regenerative food systems at scale. and other employee representatives based on the human ‘Regenerative agriculture’ is defined as an outcome-based rights and labor practices chapter of the Nestlé Corporate farming approach that protects and improves soil health, Business Principles and the Nestlé Human Resources Policy. biodiversity, climate, and water resources while supporting This Policy reinforces Nestlé’s commitment to long-term farming business development, according to the Sustainable business development through an open dialogue with its Agriculture Initiative Platform. employees and external stakeholders in line with its Creating Nestlé’s comprehensive regenerative agriculture model Shared Value concept. The Policy not only requires strict defines the three key resources of any agricultural system: compliance with the law, but it guides Nestlé’s actions even soil, water and biodiversity. if the law is more lenient or where there is no applicable law The Framework’s primary audience is Nestlé’s internal at all. agriculture and sourcing community; however, it can also The present Policy replaces the Nestlé Industrial Relations be used to explain Nestlé’s approach and expectations in Policy issued in 2000. The policy applies to all employees broader contexts, including suppliers. and is available via the Nestlé website. The Framework is available via the Nestlé website. Nestlé The Nestlé Executive Board is accountable for encourages the application of a combination of practices and implementation of this Policy. impact-based indicators to monitor the progress of farms on the regenerative journey. Nestlé Global Guideline on Disability Inclusion The Nestlé Executive Board is accountable for Through membership of the International Labour implementation of this Policy. Organization’s Global Business and Disability Network, Nestlé promotes the inclusion of people with disabilities Nestlé Corporate Business Principles across its global workforce. The Nestlé Corporate Business Principles set out expectations for the actions and behaviors of everyone at In 2020, Nestlé signed The Valuable 500, committing to: Nestlé, reflecting Nestlé’s culture which has developed over – Provide equal opportunities for all, and continuously advance more than 150 years. accessibility for people with disabilities within its operations. The Principles provide a strong ethical framework, – Promote awareness and understanding of the experience ensuring integrity of action and compliance with laws, of people living with disabilities, in order to mitigate regulations and with Nestlé’s own commitments. On the unconscious bias and create an even more inclusive foundation of strong business ethics and compliance, workplace. Nestlé does business sustainably and in a way that creates – Leverage the Nestlé Needs YOUth initiative to positively shared value. impact the lives of young people living with disabilities, Nestlé conducts business in an ethical and helping them develop the skills they need to thrive. principles-based manner even in the absence of legal or regulatory frameworks. The Guideline seeks to provide a solid foundation and Where Nestlé’s own principles and policies are stricter consistent approach for all Markets and Business Units than local legislation, the higher standard applies. This helps seeking to advance their disability inclusion journey. This Nestlé meet societal expectations and distinguishes it in journey is about recognizing the value of diversity and the marketplace. embracing its richness. It is also about creating an Specifically, the Principles focus on consumers, environment where individuals with disabilities feel respected, employees, the value chain, business integrity, transparent empowered and understood, and have access to equal interaction and communication, and compliance. opportunities and rights in the workplace. The Guideline The Policy applies to all employees and is available via the applies to all employees and is available via the Nestlé website. Nestlé website. The Nestlé Executive Board is accountable for The Nestlé Executive Board is accountable for implementation of this Guideline. implementation of this Policy. 178 Non-Financial Statement 2024 Appendix 7 – Key Policies and Documents Nestlé Global Parental Support Policy Nestlé Human Rights Framework and Roadmap This Policy defines minimum standards to be applied across The Framework has two aims: Nestlé to support its employees as new parents, helping – To strengthen the level of due diligence across Nestlé’s provide a healthy start in the life of their children, and value chain. promote their own well-being as working parents. – To support enabling environments for the respect and The Policy specifically promotes and sets out minimum promotion of human rights. standards on the following: – Paid leave for primary and secondary caregivers. Human rights at Nestlé supports a particular set of people: – Employment protection and non-discrimination. – Farmers in the supply chains and their families. – Health protection in the workplace. – Workers in the supply chains, including at the farm level. – Conducive work environment to breastfeed. – Communities in and around Nestlé operations and supply – Flexible work arrangements. chains, including women and children. – Nestlé employees and on-site contractors. This Policy supersedes the Global Maternity Protection – Consumers. Policy. The Policy applies to all employees and is available via the Nestlé website. The Nestlé Human Rights Framework and Roadmap The Nestlé Executive Board is accountable for incorporates stakeholder recommendations and inputs and implementation of this Policy. has been developed to anticipate upcoming regulatory developments. In addition, Nestlé has included Nestlé’s Good for You Strategy recommendations from various organizations, including Food and good nutrition are fundamental to everyone’s business and human rights experts and benchmarks. health, well-being and quality of life, as well as their cultural Due diligence is at the heart of Nestlé’s Human Rights identity. With Nestlé’s global presence, extensive portfolio, Framework and Roadmap. Nestlé has developed dedicated as well as research and development capabilities, it is well action plans that articulate Nestlé’s strategy for assessing, placed to deliver on its ambition to bring tasty and balanced addressing, monitoring and reporting on each human rights- diets within the reach of billions of people today and for related issue identified as salient (see Nestlé’s Human Rights generations to come. The Good for You strategy sets out Salient Issue Action Plans). These efforts cover Nestlé’s how to bring this to life via two pillars: ‘Portfolio and own operations and supply chains across all countries where products’ and ‘Communication and services’. It aims to it works. enable better options in categories. Nestlé chooses to serve and develop the right products for most needs and incomes, Nestlé Human Rights Policy as well as deliver information and services to encourage Nestlé respects and promotes human rights in its operations responsible consumption and nutritious choices. Good for and entire value chain, in line with the United Nations You covers Nestlé’s global portfolio including food and Guiding Principles on Business and Human Rights (UNGPs) beverage, specialized nutrition, and pet care. Nestlé’s priority and the Ten Principles of the UN Global Compact. Nestlé is is to grow its portfolio segments with a Health Star Rating committed to the International Bill of Human Rights and the (HSR) ≥ 3.5 and specialized nutrition products, and it is principles concerning fundamental rights set out in the committed to doing so with transparency, responsible International Labour Organization’s (ILO) Declaration on the marketing and reduced sodium in key categories of its Fundamental Principles and Rights at Work. Nestlé is portfolio. committed to the ILO Tripartite Declaration of Principles The Nestlé Executive Board is accountable for concerning Multinational Enterprises and Social Policy, and implementation of this Strategy. the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises. Nestlé has due diligence processes in place to assess, address and report transparently on actual and potential human rights risks across its value chain in line with the UNGPs. Non-Financial Statement 2024 179 Appendix 7 – Key Policies and Documents Nestlé values dialogue with stakeholders in its value The action plans harness Nestlé’s strengths and chain, including employees, on-site contactors, suppliers, capacities that have been developed over the years, with business partners, workers and farmers, local communities, those of its value chain partners and external partners and as well as consumers. Nestlé pays particular attention to stakeholders. The action plans are informed by human rights individuals or groups who may be at greater risk due to their impact assessments (HRIAs) carried out between 2009 and vulnerability or marginalization, such as migrant workers, 2017 and the human rights risk assessment (HRRA) children, women and girls, sexual and gender minorities, methodology that Nestlé developed over the course of 2020 ethnic and racial groups, and indigenous peoples to provide and 2021, as well as its audit, monitoring and grievance resilient, fair livelihoods and dignified work for people across mechanisms and processes. Nestlé’s Human Rights Steering the world to support themselves and their families. Nestlé Committee oversees and guides the strategic direction and respects and promotes the rights of environmental, land and implementation of the Salient Issue Action Plans. The 10 human rights defenders (HRDs) as defined by the UN salient issues are: Declaration on HRDs.(1) – Child labor and access to education. This Policy is operationalized through the Nestlé Human – Forced labor and responsible recruitment. Rights Framework and Roadmap and the Salient Issue – Living income and living wage. Action Plans. – Gender equity, non-discrimination and non-harassment. Nestlé’s Board is responsible for Nestlé’s strategy, – Safety and health at work. organization and oversight including on matters related to – Freedom of association and collective bargaining. human rights and through the Sustainability Committee it – Right to water and sanitation. monitors progress, goals and targets. The Executive Board is – Indigenous Peoples and local communities land rights. responsible for the execution of Nestlé’s approach and has – Data protection and privacy. set out roles and responsibilities within Nestlé to ensure a – Right to food and access to nutritious, affordable and coordinated implementation of Nestlé’s Human Rights adequate diets. Framework and Roadmap throughout Nestlé’s business categories and geographies. Nestlé’s Human Rights Steering Nestlé Marketing Communication to Children Committee, which is chaired by the Group General Counsel, Since 2023, as part of Nestlé’s efforts to help bring tasty oversees the implementation of Nestlé’s salient issue action and balanced diets within reach for people around the world, plans and monitors progress. The Policy, the Framework and Nestlé has been strengthening its industry-leading Roadmap, and the Salient Issue Action Plans apply to all responsible marketing practices, by placing restrictions employees and are available via the Nestlé website. on its marketing communication for children under the age of 16. Nestlé’s Human Rights Salient Issue Action Plans These new commitments go beyond the EU Pledge, the Nestlé’s salient issues are the areas it has identified as those Children’s Food and Beverage Advertising Initiative in the human rights at risk of the most severe negative impact on US, and other regional pledges; and Nestlé complies with people through its activities or business relationships. Nestlé applicable regulations wherever it operates, as a minimum. has developed dedicated action plans to address its salient The Policy applies to all controlled affiliates of the Nestlé human rights issues. These action plans sit at the heart of Group. Nestlé works with its joint-venture partners to ensure Nestlé’s approach to human rights and put the Nestlé they follow similar principles of this Policy. The Policy sets Human Rights Framework and Roadmap into practice. They out age and product requirements, scope and help Nestlé enhance its level of human rights due diligence communication measurement, characters, celebrity throughout the value chain and across priority countries. endorsement and premiums, on-pack communication and at The action plans articulate Nestlé’s strategy for embedding, point of sales, marketing communication and sales in assessing, addressing and reporting on each salient issue, primary and secondary schools, and compliance with defining what it needs to do across Nestlé’s business national laws and regulations. activities, as well as what collective action can be taken. (1) Human rights defenders are individuals or groups who act to promote, protect or strive for the protection and realization of human rights and fundamental freedoms through peaceful means. 180 Non-Financial Statement 2024 Appendix 7 – Key Policies and Documents Marketers in Nestlé are required to be trained on the The Policy applies to: Marketing Communication to Children Policy as part of their – Nestlé employees, regardless of their contractual status, onboarding and take regular refresher training. In addition, but also their job position or other status, and to any other Nestlé’s marketing practices, including for children, are person working for or at Nestlé’s sites and facilities (such regularly assessed by independent third parties such as the as interns, contractors and consultants) and/or interacting Access to Nutrition Initiative (ATNI)’s Global Index. with a Nestlé employee and/or under a business The Policy is targeted at Nestlé legal and compliance, relationship with Nestlé. marketing and sales globally, corporate communications and – In situations occurring in their employment environment or public affairs globally, regulatory and scientific affairs, NHW related to business activities and in the business context managers, and nutritionists. The Policy is available via the only, including but not limited to: Nestlé website. – In the workplace, comprising public and private spaces The Nestlé Executive Board is accountable for which are a place of work. implementation of this Policy. – In places where the worker is paid, takes a rest break or a meal, or uses sanitary, washing and Nestlé Net Zero Roadmap changing facilities. Nestlé’s Net Zero Roadmap outlines the ambition to – During work-related trips, travel, training, events achieving net zero greenhouse gas emissions by 2050. or social activities It involves transformations across Nestlé’s entire value – Through work-related communications, chain, such as collaboration with suppliers, farmers and including those enabled by information and communities to increase use of regenerative agriculture communication technologies. practices; investment in logistics, packaging and – In employer-provided accommodation, such as manufacturing activities; and actions aimed at reducing company dormitories and transportation. the risk of deforestation. The Roadmap includes the – When commuting to and from work. implementation of natural climate solutions. Key milestones include aiming to achieve a 20% reduction in emissions by In addition to local provisions on the prevention and 2025 and a 50% reduction by 2030 (versus a 2018 baseline). elimination of discrimination, violence and harassment at work, this Policy sets out the standards to be applied across Nestlé Policy Against Discrimination, Violence and Nestlé on discrimination, violence and harassment at work. Harassment at Work Where the above standards are stricter than local legislation, Nestlé is committed to providing its employees with an the higher standards will apply. In accordance with local laws inclusive, safe and healthy work environment. Nestlé and regulations, workers and their representatives may respects the personal dignity, privacy and personal rights of participate, when appropriate, in prevention, awareness and every employee, as set out in the UNGPs and the Ten training actions on discrimination, violence and harassment Principles of the UN Global Compact. Nestlé has zero at work. tolerance for any kind of discrimination, violence and Markets are expected to adopt this Policy locally or harassment at work. integrate it into the existing policies, programs and Recognizing that discrimination, violence and harassment procedures, in consultation with workers and their at work are incompatible with the Nestlé purpose and values, representatives as required locally. The Market Heads are Nestlé’s Corporate Business Principles, as well as with the responsible for the implementation of this Policy. Local Nestlé Leadership Framework behaviors, this Policy sets out programs and procedures against discrimination, violence the core principles of respectful behavior, equality, zero and harassment must be reviewed with the local Compliance tolerance, proportionality and fairness, privacy and Committee annually, to assess whether changes or confidentiality, and non-retaliation. adaptations need to be made. The Policy applies to all employees and is available via the Nestlé website. The Nestlé Executive Board is accountable for implementation of this Policy. Non-Financial Statement 2024 181 Appendix 7 – Key Policies and Documents Nestlé Policy for Implementing the WHO Code Nestlé’s commitment however goes beyond its own Guided by the WHO Code and Nestlé’s support for employees. Nestlé cares about all people working inside or breastfeeding during the first six months of life, the Nestlé outside its premises under contractual obligations with Policy for implementing the WHO Code provides specific service providers and it insists that they also take steps so guidance and rules related to the responsible marketing of that adequate working conditions are made available to infant formulas. them. Nestlé believes that it is essential to build a This Policy applies to the entire Nestlé Group. Compliance relationship based on trust and respect for employees at with the Policy is mandatory for all Nestlé employees and all levels. third parties acting under Nestlé’s authorization. Nestlé does not tolerate any form of harassment or The provisions of this Policy apply globally to: discrimination. Therefore, managers are committed to – All Infant Formulas designed to satisfy the nutritional building and sustaining, with their teams, an environment requirements of healthy infants from birth to 6 months. of mutual trust. Nestlé human resources ensures that a – Bottles and teats. respectful dialogue is present, and the voice of the employees is heard. In Higher Risk countries, the provisions of this Policy The Policy applies to all employees and is available via the additionally apply to: Nestlé website. – All Follow-on Formulas designed to satisfy the nutritional The Nestlé Executive Board is accountable for requirements of healthy infants from 6 to 12 months. implementation of this Policy. – Complementary foods and drinks for infants younger than 6 months. Nestlé Policy on Environmental Sustainability The Nestlé Policy on Environmental Sustainability Nestlé is committed to working constructively with parents, is committed to full compliance with all applicable governments, healthcare providers, civil society and others. legal environmental requirements and Nestlé’s The Policy applies to all employees and is available via the internal requirements: Nestlé website. – Where specific environmental legislation is non-existent The Nestlé Executive Board is accountable for or insufficient. implementation of this Policy. – The continual improvement of the environmental performance of Nestlé’s activities, products and services Nestlé Policy on Conditions of Work and Employment and prevention of pollution through the Nestlé Nestlé is committed to providing employees all over the Environmental Management System (NEMS) which world with good working conditions, a safe and healthy work complies with the international ISO 14001 standard. environment, and flexible employment possibilities that – The systematic assessment and optimization of support a better balance of private and professional life environmental impacts in the design of new and consistent with its ambition as a global leader in nutrition, renovated products. health and wellness. – The responsible sourcing of ingredients, packaging As such, Nestlé provides flexible working conditions materials and other goods and services from suppliers. whenever possible and encourages employees to have outside interests, especially community involvement. Those The Policy applies to all employees and is available via the with line management responsibilities are required to take Nestlé website. personal ownership of safety and health within their area of The Nestlé Executive Board is accountable for responsibility and are encouraged to develop their capability implementation of this Policy. in this area. 182 Non-Financial Statement 2024 Appendix 7 – Key Policies and Documents Nestlé Policy on Micronutrient Fortification of Nestlé Policy on Safety and Health at Work Foods and Beverages The Nestlé Policy on Safety and Health at Work is based on The aim of this Policy is to promote the micronutrient the Nestlé Corporate Business Principles and the Nestlé fortification of foods and beverages at levels that help to Leadership Framework, which are binding for the whole improve and maintain health, in amounts that do not Nestlé Group. increase the risk of developing adverse consequences from Nestlé devotes all the necessary energy and attention to excessive consumption. protecting employees, contractors and any other people Nestlé uses the latest micronutrient deficiency data from involved with it along the value chain, including suppliers, international or national health authorities in order to target customers and the public. the fortification of its foods and beverages accordingly. Nestlé implements in all its sites the mandatory Nestlé Nestlé complies with applicable local regulations. In the Occupational Safety and Health Management System, which absence of local regulations, Nestlé complies with the latest meets or exceeds the requirements of the health and safety applicable Codex Alimentarius Guidelines.(2) Nestlé sets laws applicable in the countries in which it operates. the target for its voluntary fortification at 15% of the nutrient Nestlé builds a proactive safety culture by driving reference value (NRV) of the relevant micronutrient(s) per the implementation and continual improvement of the individual serving. Exceptions are only made if necessary to Nestlé Occupational Safety and Health Management comply with local regulations. In addition, Nestlé places an System through: upper limit on fortification levels at 20% of the age-specific – Communication with employees, contractors and tolerable upper intake level (UL) per serving. A comprehensive other stakeholders. internal standard for the implementation of this Policy – Educating, training and equipping employees to ensure guarantees its application throughout Nestlé. that they are empowered to avoid unsafe situations and to This Policy applies to those foods and beverages that respond rapidly to unexpected events. meet the following conditions: – Influencing training and education of contractors, – Contribute to meeting the requirements of a large part suppliers and community. of the population at risk of developing a specific micronutrient deficiency. Nestlé implements this Policy through the Nestlé – Are consumed widely and regularly, should contribute to Occupational Safety and Health Management System, which a balanced and varied diet, should be affordable for and includes periodic self-assessments and specific audits. Local likely to be purchased by the population at risk. management is accountable for the Policy’s implementation. To ensure a consistent and coherent implementation The Policy applies to foods and beverages for human worldwide, Nestlé submits all its manufacturing sites to consumption that are sold under brands owned by Nestlé.(3) OHSAS 18001 certification by independent accredited bodies. Food supplements, products for infants and young children The Policy applies to all employees and is available via the (below 36 months of age) and food for special medical Nestlé website. purposes or for special dietary needs (e.g. maternal nutrition The Nestlé Executive Board is accountable for products) are not covered by this Policy. The Policy is implementation of this Policy. targeted at Nestlé R&D, application groups, marketing, communications, NHW managers, nutritionists, public affairs, regulatory affairs, legal and compliance, and quality management. The Policy is available via the Nestlé website. The Nestlé Executive Board is accountable for implementation of this Policy. (2) Guidelines on nutrition labelling (cxg 2–1985), general principles for the addition of essential nutrients to foods (CAC/GL 9–1987), guidelines for use of nutrition and health claims (CAC/GL 23–1997). (3) Subject to the terms of the relevant license agreements when brands are licensed to third parties. Non-Financial Statement 2024 183 Appendix 7 – Key Policies and Documents Nestlé’s Popularly Positioned Products (PPP) Strategy The Quality Policy, which applies across the complete Nestlé As a global leader in nutrition, health and wellness, Nestlé Group, and which is complemented by unit-specific quality has a responsibility to provide consumers with high-quality, policies, is achieved through the implementation of the nutritious products, regardless of where it sells them and the Nestlé Quality Management System (NQMS). All functions price point at which it sells them. Therefore, Nestlé has across the value chain are responsible for achieving Quality developed a specific business model called ‘Popularly objectives and continuously improving quality performance. Positioned Products’ (PPPs) which focuses on the specific The Quality Function acts as the guardian and the needs of around three billion lower-income consumers challenger of the NQMS. Management by process is an worldwide. PPPs offer these consumers the opportunity to essential principle of NQMS. It provides the framework for consume high-quality food products that provide nutritional attaining and maintaining compliance, measuring value at an affordable cost and appropriate format. By performance and continuing to achieve consumer and leveraging Nestlé’s global footprint and expertise along the customer delight. Nestlé ensures full alignment of NQMS to value chain, including its global R&D network and expertise, ISO Quality standards. NQMS is implemented across the it ensures continuous innovation across a range of nutritious organization and verified by independent third-party and affordable foods. Nestlé has grown to be the world’s certification bodies. biggest food and beverage PPP Company in both the Nestlé expects that its external business partners developed and emerging economies. Nestlé’s current PPPs (vendors, contract manufacturers, licensees, joint ventures spread from culinary products to beverages, to dairy and and customers) demonstrate their alignment with its confectionery: with 4000+ products overall, sold under requirements to achieve food safety and compliance. a number of major global brands including Maggi, Nido Nestlé fosters a quality culture by developing quality and Nescafé. awareness throughout the organization and encouraging The Nestlé Executive Board is accountable for a management attitude that anticipates potential implementation of this Strategy. quality issues. All Nestlé personnel are empowered with the necessary Nestlé Quality Policy competencies and tools in order to consistently fulfil policies, Nestlé products and brands are trusted and chosen by principles and standards. millions of people all over the world to fulfil their nutrition, Nestlé enhances the effectiveness of NQMS through the health and wellness needs, at every moment of the day and use of the management tools and methods provided by across their lifetime. Nestlé Continuous Excellence (NCE) and GLOBE data The Quality Policy summarizes the essential elements of management solutions. Nestlé’s commitment to excellence and includes: The Quality Policy is reviewed annually and communicated – Fostering a quality mindset with the objective of to employees and third parties. developing, manufacturing and providing products and The Nestlé Executive Board is accountable for services with zero defects that are trusted and preferred implementation of this Policy. by individuals and families and delivering on Nestlé’s promise to enable healthier and happier lives. Nestlé Responsible Sourcing Core Requirements – Complying with relevant laws and regulations as well as Nestlé’s aim is to ensure that the Nestlé Responsible internal requirements. Sourcing Core Requirements (the Requirements) are – Continuously challenging Nestlé to improve the quality systematically put into effect throughout its supply chain, management system to guarantee product safety, prevent thereby helping to transform production practices in a way quality incidents and eliminate defects through the review that will impact positively on people, nature and climate. of quality objectives and results. This approach is helping Nestlé build the foundations – Encouraging participation and promotion of quality necessary to advance regenerative food systems at scale. responsibilities among all employees and third parties The Requirements need to be complied with by all actors through standards, education, training and coaching, forming, directly or indirectly, part of Nestlé’s supply chain. supervision and effective communication. The Requirements constitute an integral part of Nestlé’s contracts with its direct suppliers. 184 Non-Financial Statement 2024 Appendix 7 – Key Policies and Documents Nestlé verifies alignment to and compliance with the Requirements using different methods at different tiers of the supply chain. The Nestlé Responsible Sourcing Core Requirements 2024 version replaces and supersedes the Nestlé Responsible Sourcing Standard adopted in 2018. The Nestlé Executive Board is accountable for implementation of the Requirements. Nestlé Rules of Packaging Sustainability The Nestlé Rules of Packaging Sustainability are aimed at changing the way Nestlé interacts with packaging. Nestlé’s vision is that none of its packaging, including plastics, ends up in landfill or as litter. The Rules are applied to all packaging innovations and renovations, in order to improve design for recycling and overall environmental performance and are defined by: – The Golden Rules: confirmed attributes that define the way Nestlé designs its packaging today and in the future to ensure recyclability. – The Negative List: a list of materials, additives, packaging concepts and items which are or will be considered obsolete based on the evolution of recycling technologies and infrastructure and legal/regulatory framework. The Rules follow industry standards for design for recycling where the product is marketed, such as 7 EPBP for PET, 4evergreen for the EU, CEFLEX for Flexibles and APR in the United States. The Rules apply to all employees and are available via the Nestlé website. The Nestlé Executive Board is accountable for implementation of the Rules. Non-Financial Statement 2024 185 Appendix 8 – Glossary The Nestlé glossary supplements the EU published ESRS glossary. Defined term Definition 3 Horizons’ futures- The 3 horizons mapping offers companies a way to assess opportunities, technologies and initiatives for mapping methodology future growth, while preserving present-day performance. 8 Life-Saving Rules A set of critical standards reflecting Nestlé’s strong Zero Harm vision, designed to help its employees and contractors instantly recognize and understand the rules that help keep everyone safe. 10 Principles on Fair Partnerships The 10 Principles of Fair Partnerships specify the ways that Fair Trade Enterprises are set up and behave to ensure they put people and the planet first. The World Fair Trade Organization (WFTO) carries out verification and monitoring to ensure these principles are upheld. Access to Nutrition Initiative (ATNI) ATNI is a global non-profit organization which drives market transformation for improved access to nutrition. It aims to see healthier and more affordable food products available for all. Advancing regenerative food systems Nestlé’s intention to advance regenerative food systems at scale marks a profound development in its at scale thinking. Each word in this phrase is important and addresses how Nestlé is accelerating its activities: – Advancing by raising Nestlé’s voice and using its influence to drive progress, in collaboration with others. – Regenerative to help protect, renew and restore farmland and landscapes. – Food systems encompassing every actor, activity, process and product involved in growing, raising, making, packaging, delivering and consuming food and the management of food and food-related waste. – At scale because the planet, communities and individuals need global, systems-level change. Alliance for Water Stewardship (AWS) AWS is a global membership collaboration comprising businesses, NGOs and the public sector. Its members contribute to the sustainability of local water-resources through their adoption and promotion of a universal framework for the sustainable use of water – the International Water Stewardship Standard, or AWS Standard – that drives, recognizes and rewards good water stewardship performance. Audit Committee Nestlé’s Audit Committee has oversight over the accuracy of the Company’s financial and non-financial reporting, and internal controls, and reviews reports regarding compliance, fraud and risk management. CARE Social Audit Program The Nestlé CARE Program aims to verify that all employees and Nestlé-operated sites comply with international standards and local legislation, as well as Nestlé’s own Corporate Business Principles and Code of Business Conduct. Cash-generating units (CGUs) CGUs are the smallest identifiable group of assets that generate cash inflows from continuing use. They are largely independent of the cash inflows from other assets or groups of assets. Community Relations Process (CRP) 2.0 Nestlé Waters has introduced the Community Relations Process 2.0 in an effort to assess and to address impacts from Nestlé Waters operations. Nestlé Waters assesses, on the basis of a number of KPIs, the performance of all factories with regard to community relations on an annual basis. Activities that were conducted in the scope of Nestlé Waters’ Community Relations Process 1.0 prior to 2015 will incorporate the content of these guidelines with the CRP 2.0 when reassessed in future. Compensation Committee (CC) The Compensation Committee (CC) recommends to the Board of Directors the compensation policy and the fees to be paid to the Members of the Board of Directors, including the compensation of the Chair of the Board. The CC proposes to the Board the remuneration system and principles for the Group for approval. The CC reviews and approves compensation and benefits policies and programs as proposed by the CEO together with the Chair of the Board, reviews performance relevant to compensation and determines individual compensation and benefit conditions for designated senior executives. Creating Shared Value (CSV) Council The Creating Shared Value (CSV) Council is an external advisory council formed in 2009. The CSV Council helps ensure the sound development of long-term sustainability and positive social and economic impacts of Nestlé’s CSV business strategy. Corporate Sustainability Reporting The Corporate Sustainability Reporting Directive (CSRD) issued by the European Union. Directive (CSRD) EcoVadis self-assessment questionnaire The EcoVadis sustainability assessment is a paid service that assesses Company’s material sustainability impacts based on documented evidence. 186 Non-Financial Statement 2024 Appendix 8 – Glossary Defined term Definition Employee Assistance Program The Nestlé Employee Assistance Program is a support service provided to employees that offers confidential counseling, resources, and guidance to help them address personal and work-related challenges, promoting their well-being and mental health. Enterprise Risk Management (ERM) Nestlé’s Enterprise Risk Management (ERM) is a framework designed to identify, assess and mitigate risks to minimize their potential impact and support the achievement of Nestlé’s long-term business strategy. ESG Finance Function The ESG Finance Function is responsible for ensuring the accuracy and due diligence of the Non-Financial Reporting metrics. It supports the Group functions in data processes, management and control. Fair Circularity Initiative The Fair Circularity Initiative brings businesses together around the aim of ensuring the human rights of workers within the informal waste sector are respected and their critical role in circular value chains is recognized. FTSE4Good The FTSE4Good Index Series is designed to measure the performance of companies demonstrating specific environmental, social and governance (ESG) practices. Global Food Safety Initiative (GFSI) The Global Food Safety Initiative (GFSI) collaborates with the world’s leading consumer goods companies, across borders and barriers to help ensure safe food for people everywhere. GFSI is a Coalition of Action from the Consumer Goods Forum (CGF), bringing together food retailers and manufacturers from across the CGF membership and an extended food safety community to oversee third-party food safety standards for food business operators globally. Global Guidance on Disability Inclusion This Guidance seeks to provide a solid foundation and consistent approach for all Markets and Business Units seeking to advance their disability inclusion journey. It provides guidance on how to create a culture of inclusion, training on disability awareness, accessibility and accommodation, inclusive acquisition, retention and development of employees with disabilities, and whenever possible, collect and analyze disaggregated data related to disability inclusion, in compliance with local legislation, principles of confidentiality, and right to privacy of persons with disabilities. Global Guidance on Menopause/ Nestlé promotes a supportive and respectful workplace culture that embraces the unique needs of Andropause at Work employees. The Guidance offers a general understanding of menopause/andropause for all employees and assists managers in creating a healthier, more supportive and forward-thinking work environment where everyone can thrive. Global Reforestation Program (GRP) In support of Nestlé’s Net Zero Roadmap, the GRP implements large-scale reforestation projects in Nestlé’s supply chains and sourcing landscapes. Global Reporting Initiative (GRI) GRI is the independent, international organization that helps businesses and other organizations take responsibility for their impacts, by providing them with the global common language to communicate those impacts. Globally Harmonized System (GHS) The GHS addresses classification of chemicals by types of hazards and proposes harmonized hazard of Classification and Labelling communication elements, including labels and safety data sheets. It aims at ensuring that information on of Chemicals physical hazards and toxicity from chemicals be available in order to enhance the protection of human health and the environment during the handling, transport and use of these chemicals. The GHS also provides a basis for harmonization of rules and regulations on chemicals at national, regional and worldwide level, an important factor also for trade facilitation. Group Compliance Report The Group Compliance Report prepared by Group Compliance includes aspects of business conduct across Nestlé. Hazard Analysis and Critical Control HACCP is a management system in which food safety is addressed through the analysis and control of Point (HACCP) system biological, chemical and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product. Health Star Rating (HSR) system The Health Star Rating (HSR) is a front-of-pack labelling system that rates the overall nutritional profile of packaged food and assigns it a rating from ½ a star to 5 stars. It provides a quick, easy, standard way to compare similar packaged foods. The more stars, the more nutritionally valuable the food. Non-Financial Statement 2024 187 Appendix 8 – Glossary Defined term Definition High Carbon Stocks area A High Carbon Stocks (HCS) area refers to a region or land area that contains a significant amount of carbon stored in its vegetation and soil. These areas are typically characterized by dense forests or vegetation that play a crucial role in carbon sequestration and mitigating climate change. Identifying and protecting HCS areas is important for preserving biodiversity, maintaining ecosystem services, and reducing greenhouse gas emissions. High Conservation Values From endemic species to sacred sites, all natural habitats – especially forests – inherit conservation values. Those biological, ecological, social or cultural values of outstanding significance are known as ‘high conservation values,’ or HCVs. Human Rights Steering Committee Nestlé’s Human Rights Steering Committee oversees and guides the strategic direction and implementation of Nestlé’s Human Rights Policy and Framework and its Salient Issue Action Plans. Impacts, risks and opportunities (IROs) Impacts, risks and opportunities (also referred to as IROs) aid the understanding of what a businesses impact is in terms of environmental, social and governance matters, from the perspective of impact materiality, financial materiality, or both. ISEAL Code ISEAL's Code of Good Practice for Sustainability Systems provides a globally recognized framework, defining practices for effective and credible sustainability systems. Long-term incentive (LTI) plan Nestlé’s LTI plan remunerates eligible senior members of the organization on long term objectives. My Health Numbers Nestlé’s My Health Numbers program aims to help employees assess their health, know their personal risks and get support on what they can do to reduce them. The program includes three steps: 1) Biometrics health check with an online health risk assessment; 2) Short consultation with a health professional; and 3) Use of aggregated statistics to design targeted interventions. The program includes an initial anonymous screening and, while none of the data collected are connected to individual employees, the aggregated statistics are key to developing effective well-being programs and interventions going forward. Nationally determined Nationally determined contributions (NDCs) are at the heart of the Paris Agreement and the achievement contributions (NDCs) of its long-term goals. NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change. The Paris Agreement (Article 4, paragraph 2) requires each Party to prepare, communicate and maintain successive nationally determined contributions (NDCs) that it intends to achieve. Nestlé Analysis and Reporting of This Standard provides mandatory practices for the analysis and reporting of events that could or do SHE Incidents Standard result in injuries, illnesses and environmental impacts, referred to as incidents. Markets must also ensure compliance with local legal requirements. Nestlé Annual Report The Annual Report contains Nestlé’s Annual Review including Creating Shared Value highlights, the Corporate Governance and Compensation Reports, and the Financial Statements. Nestlé’s Code of Business Conduct Nestlé’s Code of Business Conduct helps the implementation of the Corporate Business Principles by establishing certain non-negotiable minimum standards. Nestlé Environmental Requirements This Standard applies to all product categories and the following Nestlé plants: production plants under (NER) Standard Nestlé’s operational control, distribution centers operated by Nestlé, R&D facilities, specialized laboratories, Nestlé-owned milk collection centers and data centers. It aims to ensure proper environmental protection and minimize the environmental impact of Nestlé’s operations. Nestlé European Council for In 1996, Nestlé management and employee representatives established a Nestlé European Council Information and Consultation (NECIC) for Information and Consultation (NECIC) to maintain a meaningful dialogue at the European level between Nestlé and employee representatives on significant European transnational matters of importance to employees. Nestlé Farmer Connect Nestlé Farmer Connect focuses on training farmers in good agricultural practices, helping them grow safe, high-quality raw materials, and develop resilient, sustainable farms. 188 Non-Financial Statement 2024 Appendix 8 – Glossary Defined term Definition Nestlé’s Global Equal Pay review Nestlé’s Global Equal Pay review is an assessment conducted to ensure equal compensation for all employees, regardless of gender. The review aims to address any potential pay gaps within the organization. It involves analyzing compensation data, controlled for job roles, and performance to ensure that employees are remunerated fairly and in line with their skills, experience, and contributions. The Global Equal Pay review demonstrates Nestlé’s commitment to promoting gender equality and ensuring equitable treatment in the workplace. Nestlé Global Property Loss The Nestlé Global Property Loss Prevention Program is managed centrally by Nestlé’s corporate Group Prevention Program Risk Services department which provides an in-depth identification of exposures to property risks including potential risks such as floods, windstorms, interruption of supply, and others. Nestlé Institute of Packaging Sciences The Nestlé Institute of Packaging Sciences enables Nestlé to accelerate its efforts to bring functional, safe and environmentally friendly packaging solutions to the market and to address the global challenge of plastic packaging waste. Nestlé’s management and Nestlé’s Board of Directors is the supervisory body and the Executive Board is the management body. supervisory bodies Nestlé’s Board of Directors is responsible for the Company’s strategy and organization and provides oversight over its financial and non-financial performance and reporting and the Executive Board is responsible for, among other matters, the execution of the Company’s ESG and Sustainability Strategy, which includes ensuring compliance with mandatory reporting obligations. The implementation of Nestlé’s ESG and Sustainability Strategy is delegated to the ESG and Sustainability Council, chaired by the Executive Vice President (EVP), Head of Strategic Business Units and Marketing and Sales. The Sustainability Committee has oversight over the structure and content of Nestlé’s ESG and Sustainability reporting and validates that the overall approach is in line with Nestlé’s strategy. Nestlé also has the Chair’s and Corporate Governance Committee, the Audit Committee, the Compensation Committee, and the Nomination Committee. Nestlé’s Management of This Standard provides mandatory process and makes reference to associated documents (further Environmental Exceptional mandatory) for the management and reporting of environmental exceptional compliance issues when, Compliance Issues Standard on rare occasions, compliance with legal environmental requirements and Nestlé Environmental Requirements (NER) may not be achieved immediately. Nestlé Management System (NMS) The Nestlé Management System (NMS) for Quality and Safety, Health and Environment (SHE) allows for Quality and Safety, Health and Nestlé to record work-related illnesses. Through the data collected, Nestlé has identified the following Environment (SHE) health risks: Musculoskeletal disorders, stress, unhealthy eating, lack of physical activity and excess weight. The program is designed to mitigate these risks including long-term actions such as education, awareness and intervention elements. Nestlé Roadmap for Employee Health The Nestlé Roadmap for Employee Health outlines Nestlé’s priorities and summarizes the Employee Health Vision, Principles and Pillars, provides key milestones and deliverables to serve as a reference for Markets when developing their employee health strategies. Nestlé’s Sustainable Sourcing Program Nestlé’s Sustainable Sourcing Program is an initiative implemented by Nestlé to ensure that the raw materials and ingredients used in its products are sourced in a responsible and sustainable manner. The Program applies the Nestlé Responsible Sourcing Core Requirements. The Program focuses on various aspects, including environmental sustainability, social welfare and economic viability. It involves working closely with suppliers and partners to promote sustainable agricultural practices, protect natural resources, support local communities, and ensure fair working conditions throughout the supply chain. The Program reflects Nestlé’s commitment to ethical sourcing, transparency and the long-term sustainability of Nestlé’s supply chain. Nestlé Total Rewards Policy Nestlé focuses on fixed pay, variable pay, benefits, personal growth and development and work life environment as the key elements that define Total Rewards. Nestlé’s Voice of Consumer Nestlé’s seven-point mission aims to engage consumers in a friendly and caring dialogue, in order to create beneficial products and services together. Non-Financial Statement 2024 189 Appendix 8 – Glossary Defined term Definition Paris Agreement The Paris Agreement is the international treaty on climate change adopted by 196 Parties at the UN Climate Change Conference (COP21) in Paris, France, on December 12, 2015. Power BI platform Power BI is a collection of software services, apps, and connectors that work together to help companies create, share, and consume business insights in the most effective way possible. Responsible Business The RBA Code of Conduct is at the core of member requirements. Members are required to commit to the Alliance (RBA) audits Code of Conduct, spread that commitment to their supply chains, and must undertake a range of assessment activities to ensure they are accountable to their commitment to the Code. Rotterdam Prior Informed Consent (PIC) The PIC procedure is a mechanism for formally obtaining and disseminating the decisions of importing Procedure mechanism Parties as to whether they wish to receive future shipments of those chemicals listed in Annex III of the Convention and for ensuring compliance with these decisions by exporting Parties. SAP SuccessFactors The SAP SuccessFactors HCM suite is changing the way employees work, managers manage, and organizations adapt. Fueled by AI, it is a cloud HR solution that can help quickly and confidently turn the latest innovations into real-world results. Science Based Targets initiative (SBTi) The SBTi is a corporate climate action organization. Science Based Targets Network (SBTN) The SBTN is a group of organizations working to shape private sector and city impacts on nature by using science-based targets. Sedex Members Ethical SMETA is an audit, which helps organizations to understand standards of labour, health and safety, Trade Audit (SMETA) environmental performance, and ethics within their own operations or at a supplier site. Sustainability Accounting Standard SASB Standards help companies disclose relevant sustainability information to their investors. Available Index (SASB) for 77 industries, the SASB Standards identify the sustainability-related risks and opportunities most likely to affect an entity’s cash flows, access to finance and cost of capital over the short, medium or long term and the disclosure topics and metrics that are most likely to be useful to investors. Sustainability Committee Nestlé’s Sustainability Committee has oversight over the structure and content of Nestlé’s ESG and sustainability reporting and validates that the overall approach is in line with Nestlé’s strategy. The Consumer Goods Forum (CGF) The CGF is the only organization that brings consumer goods retailers and manufacturers together globally. Tier 1 suppliers A Tier 1 supplier is any legal business entity from which any Nestlé entity or affiliate purchased a service or material. Too Good to Go’s Consumption Too Good to Go’s Pact brings together industry, retail, NGOs, trade organizations and digital operators Dates Pact in the fight against food wastage. UN Global Compact 10 Principles The UN Global Compact is a call to companies to align strategies and operations with ten universal principles on human rights, labor, environment and anti-corruption, and take actions that advance societal goals – including the Sustainable Development Goals. WASH Pledge Self-Assessment Tool The WASH Pledge Self Assessment Tool helps companies to measure, set targets and monitor progress based on the compliance score – supporting decision making regarding investment and priority action. Where it Matters In the context of water usage, the concept of ‘Where it Matters’ refers to the strategic allocation and prioritization of resources to areas or activities where they are most needed or have the greatest impact. It involves identifying and focusing on critical areas, such as water-stressed regions or essential processes, where efficient and responsible water management can make a significant difference in terms of sustainability, conservation, and social impact. By directing attention, resources, and efforts to these priority areas, organizations can optimize their water usage and contribute to addressing water scarcity challenges effectively. Workforce Disclosure Initiative (WDI) The WDI aims to improve corporate transparency and accountability on workforce issues, provide companies and investors with comprehensive and comparable data and help improve access to decent work worldwide. 190 Non-Financial Statement 2024 Appendix 8 – Glossary Defined term Definition World Resources Institute’s (WRI) WRI and partners at Quantis, LimnoTech and Valuing Nature have developed a new approach for Volumetric Water Benefit Accounting implementing and valuing water stewardship activities. The VWBA meets a critical need in corporate (VWBA) methodology water stewardship: a common method for assessing the benefits of water stewardship activities in a comparable way and ensuring they address current or projected water challenges and contribute to public policy priorities. Zones (1) Nestlé is organized into five geographical Zones: – Zone North America (NA) comprised of the United States and Canada. – Zone Latin America (LATAM) including Brazil, Mexico and the Caribbean region. – Zone Europe (EUR). – Zone Asia, Oceania and Africa (AOA) including the Middle East and North Africa (MENA) region. – Zone Greater China (GC). (1) In October 2024, the Nestlé Board of Directors approved changes to the company’s organization, effective as of January 1, 2025, to merge Zone Latin America (LATAM) and Zone North America (NA) to Zone Americas (AMS). Further, Zone Greater China (GC) became part of Zone Asia, Oceania and Africa (AOA). Non-Financial Statement 2024 191 Appendix 9 – Assurance Statement Ernst & Young Ltd Phone: +41 58 286 51 11 Avenue de la Gare 39a www.ey.com/en_ch P.O. Box CH-1002 Lausanne To the Board of Directors of Nestlé S.A. Lausanne, 12 February 2025 Independent Assurance Report on selected Sustainability Key Performance Indicators (KPIs) of Nestlé S.A. We have been engaged to perform assurance procedures to provide limited assurance on the selected environmental, social and governance KPIs and non-financial information (including GHG emissions) listed in Annex 1 of this assurance report and included in Nestlé S.A. and its consolidated subsidiaries’ (the Group´s) Non-Financial Statement for the reporting period from 1 January 2024 to 31 December 2024 (the Report). Our limited assurance engagement focused on the selected KPIs and non-financial information (including GHG emissions) presented in Appendix 1 of the Report, as well as on the non-financial matters disclosures as referenced in Appendix 2 of the Report. We did not perform assurance procedures on other information included in the Report, other than as described in the preceding paragraph, and accordingly, we do not express a conclusion on that information. Applicable criteria The Group defined as applicable criteria (the Applicable Criteria):  The Group’s “2024 Reporting Scope and Methodology for ESG Key Performance Indicators” in Appendix 1 of the Report and  Art. 964b of the Swiss Code of Obligations in Appendix 2 of the Report. Inherent limitations The accuracy and completeness of the selected KPIs and non-financial information (including GHG emissions) are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. Our assurance report should therefore be read in connection with the Group’s “2024 Reporting Scope and Methodology for ESG Key Performance Indicators”, its definitions and procedures on non-financial matters reporting therein. Responsibility of the Board of Directors The Board of Directors is responsible for the selection of the Applicable Criteria and for the preparation and presentation, in all material respects, of the selected KPIs and non-financial information (including GHG emissions) in accordance with the Applicable Criteria. This responsibility includes the design, implementation, and maintenance of internal control relevant to the preparation of the KPIs and non-financial information (including GHG emissions) that are free from material misstatement, whether due to fraud or error. This responsibility includes the duty on transparency and accountability on non-financial matters according to Art. 964b CO and the related preparation of the disclosures as referenced in Appendix 2 of the Report. 192 Non-Financial Statement 2024 Appendix 9 – Assurance Statement Page 2 Independence and quality control We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Our responsibility Our responsibility is to express a conclusion on the selected KPIs and non-financial information (including GHG emissions) based on the evidence we have obtained. We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information. This standard requires that we plan and perform this engagement to obtain limited assurance about whether the selected KPIs and non- financial information (including GHG emissions) are free from material misstatement, whether due to fraud or error. Summary of work performed Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance. Although we considered management’s internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems. The Greenhouse Gas (GHG) quantification process is subject to scientific uncertainty, which arises because of incomplete scientific knowledge about the measurement of GHGs. Additionally, GHG procedures are subject to estimation (or measurement) uncertainty resulting from the measurement and calculation processes used to quantify emissions within the bounds of existing scientific knowledge. Our limited assurance procedures included, amongst others, the following work:  Assessment of the suitability of the Applicable Criteria in terms of their relevance, comprehensiveness, reliability, neutrality and understandability and their consistent application  Interviews with relevant personnel to understand the business and reporting process, including the sustainability strategy, principles and management Non-Financial Statement 2024 193 Appendix 9 – Assurance Statement Page 3  Interviews with the Group’s key personnel to understand the sustainability or non- financial reporting system during the reporting period, including the process for collecting, collating and reporting the KPIs and Non-financial Information (including GHG emissions)  Checking that the calculation criteria have been correctly applied in accordance with the methodologies outlined in the Applicable Criteria  Analytical review procedures to support the reasonableness of the data  Identifying and testing assumptions supporting calculations  Testing, on a sample basis, underlying source information to check the accuracy of the data  Conducting site visits in the USA, UK, Switzerland, France, Philippines, Nigeria, India, and Mexico based on quantitative and qualitative criteria: o Inquiring of personnel responsible for internal non-financial reporting and inspection of documents on a sample basis at the sites we visited  When data originated from third parties, evaluating the competence, capabilities and objectivity of the third party and concluding, based on our review of the data provided, whether the results of the third parties work were adequate for our purposes  Assessing the aggregation process of data at Nestlé Group level  Critically reviewing the Report for plausibility and consistency of qualitative and quantitative information related to the KPIs and Non-financial Information (including GHG emissions)  For the KPI "% virgin plastic reduction,” reviewing the 2018 baseline calculation by performing analytical review procedures and checking organizational boundaries  For the KPI “% net reduction of GHG emission vs 2018 baseline,” reviewing the 2018 baseline calculation by checking that organizational boundaries and emission factors were applied consistently  Assessing that the Report contains the information required by Art. 964b para. 1 and para 2 CO. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusions. Conclusion Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the selected KPIs and non-financial Information (including GHG emissions) in the Report of the Group have not been prepared, in all material respects, in accordance with the Applicable Criteria. Ernst & Young Ltd Jeanne Boillet Laura Meadwell Executive in charge Partner Enclosure ► Annex 1: Selection of consolidated environmental, social and governance KPIs 194 Non-Financial Statement 2024 Appendix 9 – Assurance Statement Page 4 Annex 1: Selection of consolidated environmental, social and governance KPIs Selected KPIs Reported Value Environmental 1. Percentage net reduction of greenhouse gas (GHG) 20.38% emissions vs 2018 baseline 2. Gross Scope 1 greenhouse gas (GHG) emissions 3.08 million tonnes of CO2e 3. Gross market-based Scope 2 greenhouse gas 0.26 million tonnes of CO2e (GHG) emissions 4. Gross Scope 3 greenhouse gas (GHG) emissions 71.35 million tonnes of CO2e 5. Total energy consumption related to own operations 78 784 554 gigajoules (factories only) 6. Percentage of key ingredients responsibly sourced 44.5% 7. Primary supply chains for meat, palm oil, pulp and 93.5% paper, soy, sugar, cocoa and coffee assessed as deforestation-free 8. Percentage of key ingredients sourced from farmers 21.3% adopting regenerative agricultural practices 9. Total weight of packaging 3.4 million tonnes 10. Virgin plastic reduction versus 2018 baseline 21.3% 11. Plastic packaging designed for recycling 86.4% 12. Total weight of waste generated in tons and a 1 770 141 metric tonnes breakdown of this total by composition of the waste 13. Water use reduction in factories 2.72 million cubic meters 14. Total direct output of chemical oxygen demand 4 540 tonnes (COD) load to the environment 15. Aggregated annual chemical oxygen demand (COD) 86 mgO2/l concentration 16. Nestlé Waters volumetric water benefits delivered by 8.2 million cubic meters implementing local water stewardship projects 16.1 Percentage of total withdrawn volumes that 39.8% are ‘regenerated’ 16.2 Percentage of sites where projects started to 67.6% deliver volumetric water benefits (VWB) 17. Nestlé Waters sites certified to the Alliance for Water 25 Stewardship (AWS) Standard  Non-Financial Statement 2024 195 Appendix 9 – Assurance Statement 5 Selected KPIs Reported Value Social & Governance 18. Number of servings of micronutrient fortified 132.0 billion affordable nutrition 19. Total number of servings of micronutrient fortified 198.7 billion foods and beverages 20. Young people around the world with access to 10.2 million economic opportunities since 2017 21. Percentage of management positions held by 47.4% women 22. Percentage of women executive officers 40% 23. Recordable injury rate per million hours worked 1.14 24. Recordable illness rate per million hours worked 0.5 25. Total recordable fatalities (injury related) 4 26. Total recordable fatalities (illness related) 0 27. Total irreversible injuries 18 28. Total irreversible illnesses 10 29. Percentage of Food Safety System Certification 95.3% (FSSC) Certified Manufacturing & R&D units that produce food and pet food for human and pet (cats and dogs) consumption 30. Percentage of ingredients sourced from Tier-1 94.4% supplier facilities certified to a Global Food Safety Initiative (GFSI) recognized food safety certification program 31. Speak Up system 31.1 Total messages received through Speak Up 3 218 system 31.2 Total cases substantiated through Speak Up 644 System 31.3 Total messages closed through Speak Up 2 420 system 32. Nutritional value transparency: Health Star Rating (HSR) 32.1 Health Star Rating: less than 1.5 (without 21% PetCare) 32.2 Health Star Rating: between 1.5 and 3.5 20% (without PetCare) 196 Non-Financial Statement 2024 Appendix 9 – Assurance Statement 6 Selected KPIs Reported Value Social & Governance 32.3 Health Star Rating: 3.5 and above (without 38% PetCare) 32.4 Specialized nutrition: without PetCare (HSR) 21% 32.5 Percentage of global Net Net Sales (NNS) 73% covered by the assessment: without PetCare (HSR) 32.6 Health Star Rating: less than 1.5 (with PetCare) 17% 32.7 Health Star Rating: between 1.5 and 3.5 (with 16% PetCare) 32.8 Health Star Rating: 3.5 and above (with 30% PetCare) 32.9 Specialized nutrition: with PetCare (HSR) 37% 32.10 Percentage of global Net Net Sales (NNS) 92% covered by the assessment: with PetCare (HSR) 33. Total number of employees (head count) 277 000 33.1 Total number of employees by employment type 96 313 (Permanent, female) (permanent and temporary) by gender 147 187 (Permanent, male) 53 (Permanent, other) 8 455 (Temporary, female) 7 916 (Temporary, male) 6 (Temporary, other) 33.2 Total number of employees by employment type 57 276 (Permanent, Asia, Oceania, (permanent and temporary) by region Africa) 17 495 (Permanent, Greater China) 54 935 (Permanent, Latin America) 37 898 (Permanent, North America) 75 949 (Permanent, Europe) 3 763 (Temporary, Asia, Oceania, Africa) 608 (Temporary, Greater China) 4 350 (Temporary, Latin America) 390 (Temporary, North America) 7 266 (Temporary, Europe) 33.3 Total number of employees on a full-time or 99 064 (Full-time, female) part-time employment by gender 152 722 (Full-time, male) 5 704 (Part-time, female) 2 381 (Part-time, male) Non-Financial Statement 2024 197 Appendix 9 – Assurance Statement 7 Selected KPIs Reported Value 34. Average hours of technical or vocational training 13.8 hours provided to workers in the company 35. Percentage of volume of cocoa covered by the Child 88.9% Labor Monitoring and Remediation System (CLMRS) or other dedicated due diligence systems, including mass balance 36. Number of households covered by the Child Labor 123 953 Monitoring and Remediation System (CLMRS) to prevent and address child labor risks 37. Number of countries with audits on the Nestlé Policy 2023: 39 for implementing the WHO Code 2024: 33 38. Instances of detected non-compliances with the 2024: 186 Nestlé Policy for implementing the WHO Code 39. CARE audits performed 245 40. Global mean (average) raw gender pay gap 9.1% in favor of women 41. Community giving investment: total amount 152 322 000 CHF 42. Percentage of variable remuneration dependent on Management sustainability-related targets and (or) impacts Short-term incentive: 15% Long-term incentive: 20% 43. Compliance with Nestlé Marketing Communication to 96.9% Children Policy 198 Non-Financial Statement 2024