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Nurturing a Healthier Life for Nigerians
Nestlé in society
Nestlé Nigeria
Creating Shared Value Report 2012
Highlights 2012 for Nigeria Nestlé
pupils participatingin Nestlé Healthy Kids programme in Nigeria.
10,000Promoting nutrition education and physical activity in primary schools.
Combating micronutrient deficiency in Nigeria.
Ensuring sustainable water resources management.
3 388,145 mreduction in water use in our factories equivalent to a 22% drop
total water
Supporting smallholders farmers to grow high quality grains.
2,500farmers trained through capacity building programmes.
Promoting stakeholder engagement and CSV leadership.
450expert stakeholders, including multi-lateral agencies, NGOs, industry associations, government representatives, academia, media, investors and social entrepreneurs,attended CWA regional CSV Forum in Lagos.
Continuously reducing our environmental footprints in Nigeria.
4.4GJ/tonne total on-site energy consumption, against 5.3 in 2011.
households use MAGGI cubes everyday, making it the single largest carrier of iodine and iron in Nigeria. MAGGI cubes are produced from local soybean.
20 million Providing Nigerians with nutritious, all family cereals enriched with iron and vitamin A.
households consumeGOLDEN MORN enriched with Iron and vitamin A every month .
20 mio
4water pumps at Agbara factory help address local water issues in the local community.
70 teachers and volunteers participating in ProjectWET to promote awareness and stewardship of water resources.
8,000tonnes of maize purchased from famers in Nigeria.
5,000tonnes of soybeanpurchased from farmers in Nigeria.
5,900tonnes of sorghum purchased from farmers in Nigeria.
55Journalists from print, electronic and online media participated in the CSV Media Workshop held in Lagos to strengthen reporting skills and raiselevel of media coverage of nutrition, water and rural development issues.
1st Company in CSV Performance in Nigeria.
257.64Greenhouse gases emission - kilogram C0 equivalents per 2
tonne of product against 320.22 direct GHG emissions in 2011
Promoting indigenous technological capability in Nigeria.
13students participating in an 18-month multi-skill, vocational training in electro-mechanical automatic and Instru-mentation engineering at Nestlé Technical Training Centre, Agbara.
2,179permanent employees.
Table of Contents
Nutrition Water
Rural Development
EnvironmentSustainability
Stakeholder Engegement
EnvironmentalSustainability
Human Resources
Compliance and Human Rights
Nestlé in society 3
2012 Performance Summary for Nestlé Nigeria
Nestlé has developed key performance
indicators (KPIs) as part of our
commitment to more evidence-based
reporting.
The key performance indicators in this
report specific to Nestlé Nigeria only.
Global equivalents where they exist
can be found at:
www.nestlé.com/csv/2012/kpis
Unless stated otherwise, performance
indicators are for the year ending 31
December 2012. The reference in the GRI
column are to the applicable indicator from
Nestlé in society and Creating Shared Value Key Performance Indicator GRI 2011 2012
Economic
Total Group Sales (NGN billion) EC1 116.7
Net Profit for the year (NGN billion) EC1 21.1
Nutrition
Products featuring Nestlé Nutritional Compass labelling (% of sales) PR3 % 100%
Popularly Positioned Products (NGN billion) PR3 68.6
Rural development and responsible sourcing
Farmers trained through capacity building programmes 2500
Water 3Total water withdrawal (million m ) EN8 388,145
3Total water withdrawal (m per tonne of product) EN8 3.18
Environmental sustainability
Total production volume (tonnes) 121,921
Raw materials used (tonnes) EN1
123,140Packaging Materials (tonnes) EN1 12,533
Total on-site energy consumption (gigajoules) 537,718
Total on site energy consumption (gigajoules per tonne of product) 4.4
97.9
16.5
100
55.8
700
438,238
3.71
117,996
119,176
11,607
629,400
5.3
Production volume
Materials
Energy
Nestlé in society 4
the Global Reporting Initiative G3.I
guidelines. We welcome feedback
on these KPIs, and how they may be
developed further.
Nestlé in society and Creating Shared Value Key Performance Indicator GRI 2011 2012
Emissions, effluents and waste
Direct GHG emissions (tonnes CO ) EN16 31,4132
Direct GHG emissions (kg CO eg per tonne of product) EN16 257.642
3Total water discharge (m ) EN21 62,4553Total water discharge(m per tonne of product) EN21 0.5123
Quality of water discharged (average mg COD/I) EN21 71
By–products (kg per tonne of product) EN22 12
Manufacturing sites certified against ISO 14001 (Sites certified: Agbara, Flowergate and Ota DC) 3
Human rights and compliance
Nestlé contraventions of infant formula marketing policy requiring remediation PR7 0
Infant formula marketing staff trained in the WHO Code (% of staff) PR6 100
Total number of significant product recall or incidents of non compliance PR2 0
Our people
37,700
320.22
115,758
0.9810
84.9
16
3
0
100
0
Environmental sustainability governance
Nestlé in society 5
Total workforce (number of employees) LA1 2,179
Total rate of new employee hires (%) LA2 4%
Total rate of employee turnover (%) 3%
Lost-time injuries and illnesses among employees and on-site contractors (per million hours worked) LA7 0.01
Total recordable injuries and illnesses among employees and on-site contractors (per million hours worked) LA2 0.54
Fatalities of employees and on-site contractors LA7 -
Average hours of training per year per employee per category LA10 20
Leadership positions held by women (%) LA13 33.3%
Local Management Committee members native to country EC7 33.3%
2,168
6%
3%
0.65
0.8
-
16
22.2%
33.3%
Nestlé in society
In the past, corporate investment in
community and environmental initiatives
were often seen as 'obligations’ or
simply philanthropy: added costs that
had to be borne to minimise operational
risks and protect reputation. Creating
Shared Value redefines many of these
obligations as opportunities to
strengthen the business long term –
adding value for shareholders and our
stakeholders.
Creating Shared Value builds on our
commitment to compliance and
sustainability, both of which are
important ways of mitigating risks to our
business, protecting our reputation and
in the case of sustainability, reducing
costs. Creating Shared Value is
ultimately about ensuring our
competitiveness and commercial
success in the long term.
Compliance
Sustainability
The Nestlé in Society: Creating Shared
Value Report 2012 focuses on our work
in three core areas: nutrition, water and
rural development. The report also
highlights related progress in
environmental sustainability, support for
indigenous technological capability,
compliance and human rights as well as
stakeholder engagements in 2012.
Nestlé in society pyramid
Creating Shared Value
Nutrition, water, rural development
Protect the future
Laws, business principles, codes of conduct
Nestlé in society 6
For a company to be successful in the
long term and create value for its
shareholders, it must also create value for
the society. We call this Creating Shared
Value (CSV). We believe companies can
create value for society and contribute to
solving national problems in a variety of
ways - particularly through business
strategies that share the benefits of
commercial activities, delivering social,
environmental and financial returns.
Since the beginning of our operations in
Nigeria in 1961, Nestlé has always been
concerned with its impact on the
surrounding environment and
communities, adopting the highest
standards in all its operations. As a
result, our corporate culture has been
built on the belief that in order for us to
succeed as a business, we need to
ensure that the communities and
environment around us also prosper.
We believe that we can create value for
our shareholders and society by doing
business in ways that specifically help
address local issues in the areas of
nutrition, water and rural development.
We proactively identify opportunities to
link our core business activities to action
on related social issues. That is why we
have called this report Nestlé in Society:
Creating Shared Value Report 2012.
Our commitment to sustainability is
unwavering and we are pleased to
share our progress.
This is our first sustainability reporting
in line with the Global Reporting
Initiative G3.1 Guidelines. The Food
Processing Sector Supplement (FPSS)
is not referenced. The G3.1 enables us
to be transparent about a wider range
of sustainability issues.
This report highlights the major CSV
programmes that we have sustained in
the areas of nutrition, water, rural
development, environmental
sustainability, as well as compliance
and human rights commitments.
A Message from our Managing Director and Chief Executive
While these programmes do not claim
to address all of the significant social
problems that the country faces, we
believe that they create can make a
real and positive difference in society.
We have achieved a number of our
sustainability goals and we are on
track to achieve even more in the
years ahead as our sustainability
journey continues.
We welcome your input and ideas and
hope that you find our Nestlé in
society and CSV report informative
and engaging.
Martin Woolnough
Managing Director & Chief Executive
Nestlé in society 7
Martin Woolnough, visits Community Primary School Sagbe-Obe in Ibadan, Oyo State. Nestlé worked with the Oyo State Ministry of Education to introduce the Nestlé Healthy Kids Programme to the school.
Managing Director of Nestlé Nigeria,
Nestlé Nigeria CEO Martin Woolnough interacting with parents and teachers in Sagbe - Obe Community in Ibadan, Oyo State.
Nurturing a Healthier Life for Nigerians
To be the leader in nutrition, health and wellness, trusted by all stakeholders.
Mission Nurturing a healthier life for Nigerians
Values
Trust
Respect
Clarity
Action
Objective
Nestlé in society 8
Nestlé in society 9
Pupils of Sagbe-Obe Community Primary School in Ibadan, taking part in Nestlé Healthy Kids Programme.
About this Report
Our aim is to report on Nestlé’s long-
term impact on society and how this is
intrinsically linked to the creation of our
long-term business success.
This is our first sustainability report to
use Global Reporting Initiative (GRI)
G3.1 guidelines as reporting reference.
The Food Processing Sector
Supplement (FPSS) is not referenced.
As the learning process for this first
report using GRI G3.1, the scope of the
reporting period covers Nestlé Nigeria’s
operations for the year ending 31
December 2012.
The environmental data refers to
Agbara Factory only, and safety and
health figures cover 2,179 Nestlé
employees as well as contractors and
third party staff working on Nestlé sites.
Our subsequent CSV report will include
environmental data from Flowergate
factory.
The environmental performance
indicators support the consistent,
Our reporting history
Report boundary, scope and
assurance
We have not engaged the services of
independent parties to verify this report
as part of an assurance process. The
quantitative data presented was
calculated by Nestlé, in accordance
with the collection, recording and
analysis methods normally employed
by the company.
accurate and timely demonstration of
our environmental sustainability
performance at country level.
N
estlé carries out its social
responsibilities through value creation
focused on three areas: nutrition, water
and rural development. However, it is
not possible to report all our activities in
each area, and we follow the principle
of materiality, that is, we focus our
report on the company’s activities,
principles and values that can influence
stakeholders and decision-making
processes.
Nestlé in society 10
Agbara manufacturing complex is the biggest Nestlé factory in sub-Saharan Africa. The factory provides direct
employment to over 1,450 people locally, gives local consumers greater access to Nestlé products and offers other
indirect economic benefits across the community.
Nestlé in society 12
The Nestlé Corporate Business Principles
Nutrition, health and wellnessOur core aim is to enhance the quality of consumers' lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this viaour corporate proposition'Good Food, Good Life'.
1
2Quality assurance and product safetyEverywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe and of a high standard.
Consumer communication We are committed to responsible, reliable consumer communicationthat empowers consumersto exercise their right to make informed choices andthat promotes healthier diets. We respect consumer privacy.
3
Human rights in our business activities
We fully support the United Nations Global Compact's (UNGC) guiding principles on human rights and labour and aim to provide an example of good human rights and labour practices throughout our business activities.
4
Nestlé in society 14
The ten Nestlé Corporate Business
Principles are at the heart of
everything we do. The ten principles
are implemented through the relevant
codes, policies, and other processes
and tools developed by Nestlé to
ensure that they are practiced across
our company every day.
The ten principles of business
operation provide the foundations for
our Creating Shared Value strategy
and are addressed throughout this
report.
Leadership and personal responsibility Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination.
5
6
Environmental sustainabilityWe commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favour the use of sustainably-managed renewable resources, and target zero waste.
9
WaterWe are committed to the sustainable use of water and tocontinuous improvement in water management. Werecognize that the world faces agrowing water challenge andthat responsible managementof the world's resources by allwater users is an absolutenecessity.
10
Supplier and customer relations We require our suppliers,agents, subcontractors andtheir employees to demonstrate honesty,integrity and fairness, andto adhere to our non-negotiable standards. In thesame way, we are committed to our customers.
7
Safety and health at work We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain.
Agriculture and rural developmentWe contribute to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable.
8
Nestlé in society 15
Nutrition
Left to right: Guy Kellaway, Category Business Manager (Culinary); Prof. Tola Atinmo, Founding President, Federationof African Nutrition Societies (FANUS); Iquo Ukoh, Marketing Services Director; Dr. Abimbola Ajayi, Head of Nutrition Unit, Lagos State Ministry of Health; and Samuel Adenekan, Corporate Communications and Public Affairs Manager, at the launch of the new MAGGI cube fortified with iron.
Nestlé in society 16
Fortification of MAGGI
cubes to address local
needs
Buoyed by the need to ensure that
fortified products reach the people
who need them most, Nestlé
introduced a new range of fortified
bouillon cubes to Nigeria in 2012,
adding iron to the already iodine-
fortified MAGGI brand seasonings.
Bouillons are a staple part of many
lower income consumers' diets in
Nigeria and are consumed in a
variety of traditional dishes. A single
MAGGI cube can serve two or more
people. MAGGI cubes reach 20
million households every day, making
it the single largest carrier of iodine
and iron in Nigeria.
A common problem with fortification
is that other nutritional components
in the food may reduce the
bioavailability of the fortified nutrient.
Adding certain nutrients can also change
the appearance and taste of the food. To
address these issues, Nestlé has developed
novel processes to reduce the organoleptic
changes caused by certain micronutrients,
while at the same time optimizing their
bioavailability.
Micronutrient deficiencies represent a
serious health risk to a child’s health,
particularly in developing countries.
Micronutrients such as iron, vitamin A,
iodine and zinc are essential for growth
and development. Micronutrient
deficiencies account for one-third of all
malnutriton-related child deaths in the
world, many of them occurring in
developing countries. Extreme cases of
iron deficiency result in anaemia. In
Nigeria, the problem affects more than
three-quarters of preschool-age
children.
We market a growing number of
Popularly Positioned Products (PPPs),
high quality food products that provide
nutritional value at a price people can
afford. They include everything from
culinary products to beverages and
cereals.
In 2012, Nestlé made a giant stride in
the micronutrient fortification of two
popularly positioned products in Nigeria:
MAGGI cubes and GOLDEN MORN, an
all-family cereal. Food fortification – the
addition of one or more micronutrients
(vitamins, minerals and trace elements)
to food and beverages – offers one of
the most cost effective public health
solutions to address population-wide
nutrient deficiencies and improve the
nutritional value of foods.
Fortifying our Popularly Positioned
Products with micronutrients can help
address deficiencies where they are
most prevalent.
A cross-section of consumers at the MAGGI Star Kitchen event in Kano Sate.
Recipe demonstration on how to use MAGGI cubes during the cooking process.
Nestlé in society 17
Micronutrient Fortification of Popularly Positioned Products
Iyabo Lawani, Nestlé Home Economist engages consumers in a meal planningpuzzle game during MAGGI Star Kitchen neighbourhood activation event in Lagos.
MAGGI Star Kitchen: Educating families to
cook balanced meals with MAGGI
In addition to improving the
nutritional value of its products
by reducing salt content and
adding micronutrients, our
MAGGI brand introduced a
novel cooking education
programme in Nigeria in 2012.
Known as 'MAGGI Star
Kitchen', the mobile kitchen
travels to towns and cities
week by week, promoting
good cooking practices,
offering interactive cooking
demonstrations, women's
forums for group discussions,
meal planning tips and
presentations on micronutrient
fortification.
The MAGGI Star Kitchen is part
of the campaign to promote
home cooking using fresh local
ingredients. This is a complete
creating shared value initiative
as it combines taste and
nutrition through the use of
MAGGI Women Forum
MAGGI Women Forum is a development programme
from the MAGGI brand. It is designed in collaboration
with the State Ministry of Women's Affairs and relevant
local government agencies to empower women in home
management and in ensuring a healthy lifestyle for the
family.
In 2012, the MAGGI Women Forum was held in 8 states
and reached 38,500 women.
Cooking demonstration during the MAGGI Star Kitchenneighbourhood activation event in Lagos.
MAGGI Women Forum in Ibadan.
Nestlé in society 18
Promoting Culinary Hygiene and Health Education
fortified MAGGI cubes. As
home-cooked meal are often
healthier than processed food
or street food, there is an
additional nutritional benefit
to home cooking.
Furthermore, there is an
environmental benefit as
MAGGI's campaign promotes
the use of local ingredients
which have a lower
environmental impact and
support the local economy.
The mobile MAGGI Star
Kitchen reached 100,000
people in Nigeria in 2012.
Nestlé also produced simple
educational materials such as
pocket cards and fact sheets
in Nigeria's three main
languages: Yoruba, Hausa
and Igbo, to promote better
understanding of the health
benefits of micronutrient
fortified products.
Addressing Micronutrient
Deficiencies in Nigeria
through GOLDEN MORN
In Nigeria, around one third of
preschool children are deficient invitamin A, while more than three
quarters of young children and many
pregnant women suffer from iron
deficiency. To address this issue,
Nestlé has fortified its popularly
priced GOLDEN MORN family cereals
with both iron and vitamin A. More
than 210 million servings of GOLDEN
MORN are consumed in Nigeria every
year, so fortification gives families
across the country the opportunity to
increase their nutritional intake at
breakfast every day.
Launch of GOLDEN MORN Choco, a chocolate-flavoured breakfast cerealfortified with vitamin A, at Agege market.
Left to right: Wale Arikawe, Category Business Manager (Dairy); Prof. Ignatius Onimawo, President, Nutrition Society of Nigeria; Mrs. Arinola Sodipo, representing the First Lady of Lagos State; Martin Woolnough, MD of Nestle Nigeria; Prof. George Obumneme, Director, Federal Ministry of Health at the launch of the new GOLDEN MORN (fortified with vitamin A and iron).
Nestlé in society 19
Nestlé in society 20
Helping Nigerian kids to
Get Active and
Healthy
Getting active and eating well
can help children achieve and
keep a healthy body weight. To
promote healthier lifestyles and
diets for kids, Nestlé launched
the Healthy Kids programme in
Nigeria in 2011, in collaboration
with the State Universal Basic
Education Board (SUBEB) and
Centre for Health Education,
Population and Nutrition
(CHEPON).
The Nestlé Healthy Kids
programme aims to teach the
benefits of a healthy lifestyle to
school-age children, giving them
the choice to develop positive
attitudes and behaviours towards
food and exercise to achieve and
maintain a healthy body weight
into adulthood.
The key to the programme's
success is the behaviour focused
approach and the quality of the
expert teams, which tailor the
format to meet the specific needs of
local communities.
We also ensure that Healthy
Kids is not associated with our
product brands.
The Healthy Kids programme
reached 10,000 pupils in Lagos
and Ogun states in 2012.
Nigerian children using textbooks provided by the Nestlé Healthy Kidsprogramme for 6 to12 year olds.
Promoting physical activity in schools through the Nestlé Healthy Kids programme.
Nestlé in society 21
Promoting Optimal Breastfeeding in
Nigeria
We believe that breastfeeding is the best start a
baby can have in life. In line with World Health
Organisation (WHO) recommendations, Nestlé
supports exclusive breastfeeding up to 6 months
of age, with continued breastfeeding along with
appropriate complementary foods up to two
years of age or beyond.
In 2012, Nestlé Nigeria lent a hand to the Federal
Ministry of Health (FMoH) to celebrate the World
Breastfeeding Week. In collaboration with the
FMoH, Healthcare professionals received SMS
messages promoting breastfeeding. These tips
reached 1,000,000 people.
We also support our female employees to
breastfeed by offering 4 months maternity leave
and 5 day paternity leave. Our head office is also
equipped with a breastfeeding room.Children relaxing at “Tinu-Baby Room” at the Ilupeju head office. The facility will enable female employees to breastfeed their babies during working hours.
Over the past few years and during 2012, we have had
constructive dialogue with different NGOs and interest groups on
optimal infant and young child nutrition, including breastfeeding.
To promote information sharing, education and foster professional
excellence among healthcare providers in Nigeria, the Department
of Peadiatrics, University of Uyo Teaching Hospital, Akwa Ibom
organized a workshop on neonatal resuscitation and nutrition in
the first 1,000 days of life in collaboration with the Nestlé
Nutrition Institute Africa (NNIA).
The Nestlé Nutrition Institute Africa, which is independent from
Nestlé, plays a vital role in providing healthcare professionals in
Africa with access to the most current nutrition information and
tools they can utilise to make good nutrition a motivating goal for
those they serve.
Healthcare professionals and key opinion formers generally
recognise that the primary interest of NNIA is in acquiring and
sharing knowledge to achieve positive change on nutrition issues.
Strengthening our leadership in Infant
and Young Child Nutrition
A cross-section of participants at the Neonatal Resuscitation Workshop in Uyo, Akwa Ibom.
Water
A cross-section of school pupils at Nestlé Waters Plant, Agbara Factory during the 2012 World Water Day
Nestlé in society 22
Nestlé in society 23
World Water Day
Every March, Nestlé Waters (Nigeria) marks World
Water Day in partnership with Project WET. Children
and teachers participate in Together for Water
festivals, to increase awareness of the importance of
fresh water for nature, healthy hydration, good
hygiene and disease prevention.
A cross-section of children on tour of Nestlé
Waters Plant at Agbara factory
Children participating in healthy hydration
activities at Agbara factory during the 2012
World Water Day.
Optimizing Water Reuse and Efficiency
We aim to be the most efficient water user among food
manufacturers in Nigeria. The close proximity of our food
manufacturing plant and the Nestlé Waters Plant at Agbara
has enabled us to install a connection so that all surplus water
from the Nestlé Waters deep well is used by Nestlé Nigeria 3plants, leading to a reduction in the water ratio (m /tonne of
3finished product) and annual water saving of 100,000m .
Water Use in our Operations
2008 2009 2010 2011 2012
600000
500000
400000
300000
200000
100000
0
Production volume (tonne) Total water withdrawal (cubic metre)
Water withdrawal versus production
volume, 2008 - 2012
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Water Ratio (cubic metre per ton)
2008 2009 2010 2011 2012
Water Ratio(cubic metre per tonne of finished product)
Since 2008, water withdrawals at our Agbara factory have
fallen significantly, while our food and beverage production
volume increased considerably. Total water withdrawal by
source is the sum of water used by our factory from all
sources. This includes water that may be treated through
industrial services (such as softening and demineralising),
non-contact cooling water, water used for cleaning and
water used by itself as a raw material (e,g. for bottled
waters).
The reduction in water withdrawal is the result of extensive
efforts by Nestlé engineers and environmental managers
to improve water efficiency in our operations.
Nestlé in society 24
7.05 5.82 4.33 3.71 3.18
Driving Operational Efficiency
As part of our commitment to drive operational
efficiency, we are focused on reducing water withdrawal,
increasing reuse and continually working to improve the
water efficiency of our products.
Nestlé in society 25
Treating Wastewater Effectively
When water cannot be reused, either in the manufacturing process or
for external factory purposes, it is treated and returned to the
environment.
The Agbara factory has its own wastewater treatment facility, which
achieves the legal limits of COD (Chemical Oxygen Demand) of 90 mg
per litre and BOD (Biochemical Oxygen Demand) of 50 mg per litre for
treated effluents returning to the environment. We always ensure that
treated water is clean enough to sustain marine life.
Nestlé Brings Relief
When a natural disaster occurs, water
sources and distribution systems are
often polluted or damaged, resulting in an
immediate need for safe drinking water.
Nestlé, in partnership with local
authorities, can play a vital role to provide
affected communities with bottled water.
In 2012, Nestlé Nigeria donated water
and food products to the Nigerian Red
Cross Society for distribution to flood
victims in all affected states in Nigeria.
Providing Free, Clean Drinking Water to Nigerians
Nestlé helps to address local water issues in
communities where we operate because
improved water availability and access is
essential for rural development and improved
quality of life in the communities we depend
on for raw material supply.
Nestlé provides clean drinking water to the
immediate communities around our Agbara
factory.
Some residents fetching tap water in front of Agbara factory
Executive members of the Nigerian Red Cross Society, Edo State in a group picture with Nestlé Corporate Communication and Public Affairs Manager, during the donation of Nestlé PURE LIFE table water to Red Cross.
Agbara factory wastewater facility
Supporting Water Education for Teachers
Participants at Project WET Workshop held in Lagos in 2012.
Nestlé in society 26
Nestlé in society 27
Mrs F. A. Tijani
A cross section of teachers representing the key water users
at the 'Train-the-Trainer' Project WET Workshop in Lagos.
Project WET
To promote awareness, appreciation, knowledge and
stewardship of water resources, Nestlé launched Project WET
(Water Education for Teachers) in Nigeria in October 2012. The
launch was heralded by a 'Train-the-Trainer Workshop', themed
'Water Conservation and Healthy Hydration'.
The workshop brought together teachers and head teachers
from 20 schools drawn from 5 selected districts in Lagos State.
The Senior Vice President of Project WET, Mr. John Etgen,
facilitated the one-day workshop. The interactive workshop
examined diverse learning styles with relevant water-related
activities. Participants engaged in practical work and in thought
provoking discussions. The workshop also provided educators
with a large selection of creative teaching strategies and exposed
them to different local water-related teaching aids.
Country Business Manager, Nestlé Waters (Nigeria) Adewale Ojo (right) presenting certificate of parti-cipation to Akinwolere Colman, Head of Social Mobilisation Department, Lagos State Universal Basic Education Board (SUBEB), while Project WET Senior Vice President, John Etgen, looks on.
The Senior Vice President of Project WET, John Etgen,
explaining aqua bodies at the Project WET Workshop.
Nestlé in society 28
Rural Development
A Cassava farmer uprooting the high yielding cassava variety at IITA Ibadan multiplication site.
Nestlé in society 29
Nestlé's sustainable agricultural
strategy is designed to ensure a
steady supply of safe, high quality
agricultural commodities and to
allow rural communities to increase
their income as a result.
Nestlé in society 30
Nestlé/IITA Cassava Starch
Project
The Cassava Starch Project is aimed at
increasing productivity per hectare in
cassava, through multiplication and
dissemination of improved, high yielding
varieties. It seeks to ensure smallholder
farmers benefit from improved cassava
management practices.
The initiative aims to introduce smallholder
farmers in target communities to better
farming practices which will address the
common agronomic errors that keep root
yields below 12 tonnes per hectare. This
includes the efficient use of inputs, such as
the timely application of fertilizers /
herbicides and the use of harvesters to
reduce the drudgery of farming.
The project will also ensure sustainable
supply of cassava roots with high starch
content to targeted cassava starch
producing firms (MATNA Foods Company,
Akure and Nigeria Starch Mill, Ihiala) to
meet the supply needs of Nestlé.
The ultimate goal of the cassava project is
to replace imported corn starch with
cassava starch in our culinary
manufacturing process.
Between 2011 and 2012, over 500
hectares of land were planted with IITA
improved cassava varieties at various
locations in six states in the south-west
and south-east regions of Nigeria.
Supporting Smallholder Cassava Farmers
Cassava starch processing plant at MATNA Foods Company, Akure.
One of the Demonstration Plots (for resource use efficiency) at IITA Ibadan
Cassava tubers with high starch content at MATNA Foods Company, Akure.
Cassava starch sample from MATNAFoods Company, Akure
Nestlé Grains Quality
Improvement Project
The Nestlé Grains Quality Improvement
Project is designed to ensure our factories
receive a steady supply of safe, high
quality agricultural commodities, allowing
rural communities to generate higher
incomes as a result. Up to 30% of
cereal crops in Nigeria are lost to
mycotoxin contamination due to bad
agricultural and storage practices.
The project raises awareness through
campaigns; trains agricultural
The Project’s Components
extension agents and farmers on good
pre-harvest and post-harvest practices
for managing mycotoxin; tests grains
for mycotoxin to determine safety;
assesses possible uses of the grains;
develops warehouses to aggregate the
grains; and creates market linkages
with grains export value chain
organizations that are quality conscious
in order to maximise profits.
About 10,000 farmers (including
agricultural extension agents, farm
village heads, farm family heads, grains
suppliers and transporters) were
trained on best mycotoxin
management practices in the
2010/2011 farming season.
Factory gate rejection progressively
reduced from 4% in 2010 to 0.3% in
2012, showing that mycotoxin risk was
under control in our manufacturing
operation. Also, remarkable reduction
in grain storage at factory level: stock
cover significantly reduced from 8
weeks in 2009 to 3 weeks for
soybeans, and 4 weeks for maize and
sorghum in 2012.
Value to Society
Value to Nestlé
Assisting Farmers to Grow High Quality Grains
A cross-section of farmers, farm village heads, farm family heads, grains suppliers and transporters at the Mycotoxin Management Seminar in Kaduna State in 2012.
Nestlé in society 31
Oluwaseun Akinoso, Nestlé Nigeria Strategic Buyer (Agric Raw Materials) showing a sample of mycotoxin - infested maize to farmers.
Mycotoxin Posters in Hausa
Engaging with Stakeholders
A cross-section of participants during the CWA regional CSV Forum in Lagos in 2012.
Nestlé in society 32
Engaging with our
stakeholders underpins
Creating Shared Value (CSV),
enabling us to share insights,
identify emerging issues,
shape our responses, develop
strategy and continue to drive
performance improvements in
the areas of nutrition, water
and rural development.
Stakeholders – ranging from
consumers, customers and
suppliers to the investor
community, employees,
governments and multi-lateral
agencies, non-governmental
organizations (NGOs),
community-based
organizations, civil society and
academia – are all important to
our continuing business
success and our ability to
'Create Shared Value'.
Nestlé in society 33
Nestlé CWA Regional Creating
Shared Value Forum
In pursuit of efforts to promote and
mainstream Creating Shared Value as a
corporate strategy and reach out to broader
stakeholder audiences, Nestlé Nigeria hosted
the maiden Regional CSV Forum for Central
and West Africa in September 2012.
The theme of the forum, organised in
collaboration with Lagos Business
School/Pan African University was “Creating
Shared Value: the Role of Business in Food
Security and Nutrition”.
The two-day event featured four plenary
sessions on the following thematic issues:
Harnessing the potential of micronutrient
malnutrition: challenges and
opportunities;
The role of agronomy research;
Food security and water crisis;
Capacity building in the agricultural value
chain; and
The big idea: Creating Shared Value.
The Forum enabled us to work with a number
of stakeholders to share insights, identify
best practices, discuss our CSV performance
and understand stakeholder expectations and
concerns on our CSV strategy.
About 450 participants and external expert
stakeholders from multi-lateral agencies, non-
governmental organisations (NGOs) industry
associations, government representatives,
farmer associations, academics, investors,
social entrepreneurs and the media attended
the event.
Stakeholders Engagement
A cross-section of participants at the regional CSV Forum.
Professor Mark Kramer of Harvard University, one of the pioneers of the creating shared value concept, speaking on “Creating Shared Value: Redefining the Role of Business in Society'' at the CSV Forum.
Nestlé in society 34
Nestlé in society 35
Nestlé holds Creating Shared
Value Workshop for Journalists
To further promote better understanding of
nutrition, water and rural development issues
and equip journalists with requisite reporting
skills, Nestlé organised a workshop for health
and science editors in 2012. Featured
speakers provided fresh thinking on how to
mainstream nutrition, water and rural
development reporting in the media. The
Special Adviser to the Minister of Agriculture
and Rural Development, Dr. Olukayode
Oyeleye led discussion on ''Telling the
agricultural story: opportunities and
mechanisms''; The Anglophone Africa
Coordinator, World Federation of Science
Journalists, Akin Jimoh, spoke on the
''Challenges of communicating science-based
food and nutrition information to the public'',
while the President, Africa Federation of
Science Journalists, Diran Onifade talked on
''Turning water into news''.
About 55 senior media executives from print,
electronic and online media attended the
event.
Nestlé Nigeria Managing Director, Martin Woolnough, making opening remarks at the CSV Media Workshop.
Akin Jimoh, the Anglophone African Coordinator of World Federation of Science Journalists facilitating a session on “Challenges of communicating science-based food and nutrition information to the public”.
Nestlé Regional Corporate Communication and Public Affairs Manager for Central and West Africa, Bineta Mbacke addressing journalists during the CSV Media Workshop.
Creating Shared Value Award
Nestlé emerges best Company in CSV
Performance in Nigeria
Nestlé has earned praise for its leadership in
Creating Shared Value in Nigeria. At the 2012
edition of the Nigerian Social Enterprise Reports and
Award (SERA), Nestlé won first Prize for CSV
performance. The company was also voted the third
most socially responsible company in Nigeria. Ken
Egbas the Managing Director of Tru Contact,
organisers of the event, commended Nestlé for
building the capacity of smallholder farmers through
the Nestlé Grains Quality Improvement Project,
among others.
Receiving the award on behalf of Nestlé Nigeria,
Martin Kruegel the Finance and Control Director,
stated: “Nestlé is most grateful for this recognition.
As the first organisation to adopt CSV, this
constructive approach has become a compelling
model for Nestlé to leverage its core activities and
partnership for the joint benefit of society and
shareholders. The SERA Award will be a strong
encouragement for us to continue with our efforts”.
Martin Kruegel, Nestlé Nigeria Finance and Control Director, speaking at the SERA Award.
Martin Kruegel, Nestlé Nigeria Finance and Control Director, receiving the certificate of third most socially responsible company in Nigeria from SERA.
Nestlé in society 36
Nestlé in society 37
Feedback from stakeholders
To further engage with our stakeholders, a dinner reception was
organised for key opinion leaders in Central and West Africa
during the CSV Forum.
The stakeholders were supportive of the overall CSV approach
and were highly complimentary about the spirit in which the
CSV Forum was conducted.
There was a wide-ranging discussions of relevant issues and
specific areas of concern were highlighted by the stakeholders,
including:
the growing importance of micronutrient fortification of
staple foods;
the increasing challenges of malnutrition;
the loss of skills and knowledge in farming communities as
low income drives people away from the sector;
increasing water stress and water security driven by climate
change.
Stakeholders also made a number of recommendations on
improving the overall strategic CSV approach including the
following suggestions:
extend the company's collaboration with community based
organisations, civil society and government players;
take a more active lead in public policy issues;
undertake more community engagement.
We value all suggestions and recommendations as part of
developing our CSV approach for the future. We will continue
to update all our stakeholders about our CSV, environmental
sustainability and compliance performance on a regular basis.
Benue Cultural troupe entertaining guests at the CSV KOL dinner
Participants going through CSV brochures at the exhibition stand during the Regional CSV Forum
Bola Audu, CSV Field Officer interacting with some participants during the CSV Forum
Professor Mark Kramer of Harvard University (left) exchangingviews with Etienne Benet, Head of Region, Nestle Central and West Africa at the KOL dinner
Environmental Sustainability
Nestlé in society 38
The Agbara manufacturing complex is one of the biggest Nestlé factories in zone A-O-A (Asia, Oceania and Africa). For
many decades we have focused on making the factory more environmentally efficient. Already certified to ISO 14001:2004,
Agbara factory, uses the most efficient technologies to optimise energy and water consumption, minimise waste generation,
utilise sustainably – managed renewable energy sources and eliminate emissions, including greenhouse gases.
As the leading Nutrition, Health and
Wellness Company in Nigeria, Nestlé is
committed to environmentally sustainable
business practices along the value chain.
We are continuously reducing our
environmental footprint by ensuring
efficient use of energy for manufacturing
operations. We commissioned a Tri-
generation Power Plant at Agbara factory
in 2011. The plant generates electrical
power, while chilled and hot water are
generated using heat from the power plant
exhaust gases. This allows us to increase
overall energy efficiency from 42 to 74 per
cent and to reduce CO emissions by 5,000 2
tonnes per year.
Continuously Reducing our
Environmental Footprints in
Nigeria
Nestlé in society 39
Promoting environmentally sustainable business practices
Why the investment in Tri-
generation Power Plant?
Nigeria's power infrastructure is one of
the major challenges constraining
socio-economic growth and
development in Nigeria. Most of
Nigeria's infrastructure in the power
sector was built in the 1970s and
1980s. Due to lack of maintenance and
expansion of the facilities, the country
has suffered significantly from the
impact of inconsistent electric supply.
In spite of the abundant energy
resources in the country, the quantity,
quality and availability of electrical
power does not allow for efficient
factory operations.
Ensuring Environmental
Sustainability and Energy
Optimization
One of Nestlé's key environmental
sustainability challenges is energy
efficiency. Energy is expensive and is
associated with multiple environmental
consequences. For example, one of the
primary air emissions associated with the
production of energy is carbon dioxide,
which contributes to global warming.
Nestlé in society 40
Mrs F. A. Tijani
Optimising the use of fossil fuels to
generate energy is a critical element in
the management of energy resources.
The tri-generation power plant
generates electrical power as prime
energy. Chilled water and hot water are
produced by recovering the heat
generated from the power plant
exhaust gases. As this heat is usually
expelled into atmosphere, the recovery
of the heat improves overall energy
efficiency. The use of new eco-friendly
absorption chillers also eliminates the
need for ozone-depleting refrigerants,
therefore further reducing the plants'
environmental footprint.
The Agbara Factory Tri-generation
Power Plant is a major contribution to
Nigeria's drive to reduce carbon
emissions. The new tri-generation
plant is also a significant effort in
technology transfer which is over and
above the technology of a standard
power plant.
Nestlé in society 41
Nestlé in society 42
A cross - section of participants at the Responsible Sourcing Workshop for Nestlé suppliers and vendors in Lagos in 2012.
Mrs F. A. Tijani Ikosi Primary School, Ikosi-Ketu
Responsible sourcing of raw materials
Nestlé transforms agricultural raw materials into tasty,
nutritious and healthy food and beverage products.
We are working with farmers and others in our supply
chain to grow, harvest and process these raw
materials in more environmentally efficient ways
through, for example, our responsible sourcing
programme.
In our Responsible Sourcing Audit Programme we
request key vendors to demonstrate compliance with
Nestlé supplier code with emphasis on integrity,
safety and health, labour compliance and
environmental sustainability.
Nestlé in society 43
Nestlé Nigeria supply chain team at the 2012 Vendors'
Day Programme.
Human Resources
Students of the Nestlé Technical Training Agbara Centre, in Mechanical Workshop.
Nestlé in society 44
In support of Nigeria's drive towards rapid
transformation and development of indigenous
technological capability, Nestlé Nigeria
inaugurated a state-of-the-art Technical Training
Centre at Agbara factory in 2011.
Multi-skill training: The Centre, which is part of
our Creating Shared Value initiatives, offers 18-
month multi-skill vocational training in Electro-
Mechanical – Automation and Instrumentation
Engineering. The programme is tailored along
the syllabus of the City and Guilds of London
Technicians Examinations Certificate.
Learning facilities: The Centre is ideally located
in the middle of engineering activities in the
factory. It is well equipped with modern
classrooms, a standard library, computer and
technical drawings rooms, state-of–the-art
electrical / instrumentation / automation and
mechanical workshops.
Dr Umar Bindir, Director-General of the National Office for Technology Acquisition and Promotion (NOTAP) (left) congratulating the Swiss Ambassador (right) and Nestlé MD, Martin Woolnough during the formal opening of the Technical Training Centre.
Nestlé in society 45
Supporting Development of IndigenousTechnological Capability in Nigeria
Nestlé in society 46
International Exposure
for Trainees:
The best five students from
each promotion will have the
opportunity to participate in an
additional training module of
four months in Switzerland. The
five students will be sponsored
by the Swiss Embassy as part
of a bilateral Migration
Partnership Agreement
between Switzerland and
Nigeria. The partnership, which
has a pioneering character,
brings co-operation between
Switzerland and Nigeria to a
new level. Designed to
acknowledge both the
opportunities and challenges of
migration, the partnership is the
first of such agreement
between Switzerland and an
African country.
Dr Umar Bindir, the Director-General National Office for Technology Acquisition and Promotion (NOTAP) congratulates students of the Technical Training Centre.
Raphael Omaballa working in the Electrical Workshop
Nestlé in society 47
Safety is one of Nestlé's 10 Corporate
Business Principles, establishing safety
as a non-negotiable priority. High quality
workplace conditions contribute not only
to product quality, but also to employee
safety and satisfaction. We are
committed to preventing accidents,
injuries and illness related to work, and
to protecting employees, contractors
and others in the value chain. We also
understand that when an employee
experiences an injury, it is our
responsibility to investigate to see how
we can improve working conditions.
Safety and Health at Work
0.01
2012
LTIFr - Total Country 2012
We achieved a 98.5%
improvement in Lost Time
Injury and Illness Frequency
rate (LTIFr) during 2012.
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.65
2011
Sunday Nmecha, undergoing screening exercise at Ilupeju head office staff clinic.
Nestlé in society 48
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2011 2012
RIFr - Total Country 2012
Our Total Recordable injury
and illness frequency rate
(TRIFr) also dropped by
32.5% over corresponding
period in 2011.
0.8
0.54
Supply chain team at the Ota Distribution Centre, celebrating 1000 dayswithout accident on site. The site also passed ISO 14001 and OHSAS 18001
We require everyone to play an
active role in promoting
awareness and knowledge of
safety and health to employees,
contractors and other people
related to or impacted by our
business activities. Each of our
facilities builds a proactive safety
culture through communication,
training, education and equipping
employees so that unsafe
situations are avoided and rapid
response is available.
We monitor our performance
through the Nestlé Occupational
Safety and Health Management
System.
Nestlé in society 49
Anti Corruption
WHO Code Compliance
Our company has zero-tolerance
attitude to corruption and unethical
practices. Our new integrity reporting
system includes the roll-out of a
dedicated website for employees to
deal with compliance-related
grievances.
This anonymous whistleblowing system
enables staff to raise concerns in
relation to our operations and report
malpractices, illegal acts or omission by
employees. Such concerns could be
communicated to the company through
the new Integrity Reporting System.
We also use our Nestlé Continuous
Excellence (NCE) framework to foster a
common understanding of compliance
across the functions. This includes the
verification of appropriate principles and
policies, adequate internal controls,
effective structures, monitoring and
reporting among others.
We are strongly committed to
marketing our infant nutrition products
in accordance with the International
Code of Marketing of Breast-milk
substitutes (WHO Code) and with
national legislation. To this end, we
have in place strict policies and
procedures, and train all our employees
involved in the marketing of infant
nutrition products on the WHO Code.
In 2011, Nestlé became the first infant
formula manufacturer to be included in
the FTSE4Good index. It is the only
responsible investment index in the
world that includes strict criteria and
rigorous monitoring of the marketing of
breast-milk substitutes by
manufacturers.
Human Rights Due
Diligence:
We integrate human rights into all
aspects of our business operations.
We exercise due diligence to identify,
prevent and address actual or
potential human rights impacts
resulting from our activities or the
activities of those with whom we
have relationships.
Our due diligence process includes
the following components:
Workplace Relations
A comprehensive Human Rights
Impact Assessment on Nestlé
Nigeria was conducted in 2011 by
the Danish Institute for Human
Rights (DIHR). The assessment was
part of efforts to help ensure human
rights responsibilities are
implemented in Nestlé globally.
To further advance human rights
principles in the workplace, 1,186
employees were trained on human
rights in 2011 and 1,466 in 2012. The training helps our staff better
understand the relevance of human
rights principles to business
operations.
We are not just committed to
the relevant ILO Conventions,
international standards and
initiatives through the Nestlé
Corporate Business Principles,
but we also work permanently
to improve the level of
awareness and to ensure
compliance with those
Compliance and Human Rights
standards throughout the company.
Management meets regularly with the
local union and the National Union of
Food Beverages and Tobacco
Employees (NUFBTE) as well as the
Food, Beverage and Tobacco Senior
Staff Association (FOBTOB) to
exchange information and discuss
workplace matters.
Our employees have the right to
exercise freedom of association and
collective bargaining. The national
unions of both junior and senior staff
categories are represented in
membership by our staff.
Equal Opportunities and Non-
discrimination
Our policies are free from
discrimination based on race, colour,
gender, religion, ethnicity or tribe,
health status such as HIV/AIDS.
Grievance Procedure
To further discharge our responsibility
to respect human rights, we have
established grievance handling
mechanisms which are legitimate,
accessible, equitable, rights-
compatible, clear and transparent and
based on dialogue and mediation.
Respecting the Right of IndigenousPeople
Land acquisition for manufacturing
purpose is done through relevant and
appropriate government agency.
There is no incident of violations
involving rights of indigenous people.
Nestlé Nigeria continues to take proactive approach to embedding human rights principles
within business operations. The bi-annual MD-Union Forum is an interactive approach to
foster good workplace and industrial relations.
Nestlé in society 50
Responsible Advertising
and Marketing
· We are committed to responsible, reliable,
consumer communication that empowers
the consumers to exercise their right to
informed choice and promotes healthier
diets.
· We adhere strictly to the Nestlé Consumer
Communication Principles. We do not
advertise to children under 6 years of age.
· Advertising to children aged 6 – 12 years is
restricted to products that meet
predetermined nutritional profiling criteria.
· Our children's communication principles are
specifically aimed at protecting children by
ensuring that the advertising is not
misleading, does not undermine parental
authority or generate unrealistic expectation
of success.
Supplier and Customer Relationship
· To foster good business practices within
our supply chain, we have communicated
Nestlé Supplier Code to our suppliers in
Nigeria through a training on Responsible
Sourcing.
· All our significant suppliers and contractors
have undergone screening on human rights
through our internal risk assessment to
identify suppliers with a high-risk potential.
· All our suppliers have completed a self-
assessment questionnaire and were
assessed through a third-party audit.
Nestlé in society 51
Human Rights Issue
Next Steps
We have made remarkable progress on
our CSV focus areas of nutrition, water
and rural development as well as on
human rights and compliance. However
we still need to do more to provide
greater disclosure in respect of progress
and lessons learned from these CSV
programmes.
In our next report, we plan to align
completely with Global Reporting
Initiative’s (GRI) G3.1 guidelines and
Food Processing Sector Supplement
(FPSS).
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