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Siting and Community Commitment Framework
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What is the Framework? The “Siting and Community Commitment Framework” is Nestlé Waters North America’s (NWNA) outline of our new, stakeholder informed, approach to siting new spring water facilities. We believe it supports our goal of establishing and maintaining positive
relationships with the communities where Nestlé Waters North America sources spring water and operates facilities. We recognize that strong community relations are important to developing these sites in a manner that works well for both the local community and the
company. The framework consists of principles and tools connected to key steps throughout the site
development process. The principles are now a set of public guidance statements supported by commitments on how NWNA intends to operate before, during and after siting. The tools will help our representatives provide information that addresses the unique needs of each
community in which we seek to site a spring water facility. It will also help them engage in dialogue with community leaders, residents and organizations to build trust.
The framework is supported by two key processes: 1. An engagement approach at the local level that seeks to understand each
community’s needs and concerns and provide ongoing dialog about the project and
the process. 2. Engagement by Nestle Water North America with stakeholders at the national level on
issues that are larger than – but often impact – relations with individual communities
(e.g., concerns about water use and its protection, environmental footprint and/or recycling).
The framework provides a structure to consult with local communities, seek their input and understand their questions and concerns, both during the siting process and beyond.
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Why did we develop this Framework? One goal of Nestlé Waters North America (NWNA) is to create shared value in communities
where we operate. We bring potential economic benefits to communities, including job creation, contribution to the tax base, support of local businesses, capital investments, and expertise in local water resource management and charitable giving. To turn that potential
into shared value requires listening to and understanding the issues, concerns and needs of each community.
Over the past decade, we experienced considerable growth and were involved in the siting process with communities across the country. Over several years, it became clear that we needed to review the way we approached that process in order to improve. While some sites
were developed with little or no controversy, others were more controversial. It was imperative to learn and understand the reasons for this reaction, identify ways to improve,
and create a process that better meets community expectations. In 2008, we committed to working with stakeholders to develop a framework to more
proactively manage our siting, provide communities in which we are seeking to site a spring water facility the opportunity to voice their concerns and make siting efforts more transparent. We publicly announced this goal in our 2008 Corporate Citizenship Report.
We asked Business for Social Responsibility1 (BSR) to help develop this new framework, drawing on its experience with community engagement and its work with natural resource extraction companies, and to solicit feedback on previous NWNA siting projects from local
and national stakeholders.
1 BSR, Business for Social Responsibility (bsr.org). A leader in corporate responsibility since 1992, BSR works with its global network of more than 250 member companies to develop sustainable business strategies and solutions through consulting, research and cross-‐sector collaboration.
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How was the Framework developed? BSR led us through a four-‐step process to assess and evaluate our current approach, gather stakeholder feedback on what could be improved, and develop a framework to guide our
future siting projects. This process is outlined below:
Assessment. BSR conducted more than 60 interviews with internal and external stakeholders and visited key NWNA sites, current and considered. Internal stakeholders included
representatives from NWNA’s corporate communications, corporate citizenship and supply chain teams, as well as some of our natural resource managers involved in siting and community engagement. External stakeholders included independent geologists,
environmental conservation organizations, activist groups, conflict resolution specialists and representatives from several local communities where we sought (both successfully and unsuccessfully) to source spring water and/or locate a spring water facility. We received
candid feedback from the internal and external stakeholders, which further validated the need to develop this siting framework. Stakeholder input suggested a need to:
• Develop a more effective way to understand and assess the needs and interests of communities under consideration
• Be prepared for and engage in dialogue early in the siting process, even if many
questions do not yet have answers • Communicate the potential benefits and impacts of a project in a more clear and
direct way
• Reach beyond regulatory requirements to engage directly and transparently with the public in communities
• Provide additional training and/or resources to ensure we consistently engage in
dialogue with communities in a prompt, patient, respectful, and convenient way. Design. The results of the assessment were shared during a design charrette – a participatory
meeting – held for our staff and external stakeholders who, along with the assessment results, contributed ideas and expertise for the framework.
Conduct baseline analysis
Assessment Design Alignment Pilot & Training
Draft improved approach based on best practices and stakeholder input
Vet improved approach and build alignment with key staff and stakeholders
Train our siting teams, implement in pilot siting project and revise based on pilot site results
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Alignment. To ensure the draft framework reflects best practices and will effectively improve NWNA’s practices, BSR invited external experts in community engagement, watershed
management and corporate social responsibility to assess the framework. We revised and refined the framework to incorporate the experts’ comments and feedback.
Pilot/Training. Training will need to take place, and the framework will be put into practice for new siting opportunities and continually revised based on pilot and ongoing results.
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How is the Framework structured? The Siting and Community Commitment Framework is a set of principles (green), processes (red) and tools (blue) to help guide NWNA in openly interacting with a community during the
siting process. The development of this was a direct outcome of feedback from both internal and external stakeholders. The goals are to transparently share the process, proactively engage with the community, build capacity and provide tools to create shared value for
NWNA and the local community. The framework provides practical guidance for conducting open dialogue with communities that addresses their values, interests and concerns.
Key Components of the Framework:
National Stakeholder Engagement:
Better understanding of stakeholder expectations can help NWNA improve decision making and help ensure the long term sustainability of our business. NWNA will listen to, and engage with, stakeholders on issues and opportunities related to bottled water. From this input
NWNA will seek to set targets for improvement in our bi-‐annual citizenship report as well as engage with others on achieving these goals. The engagement will enable NWNA to clarify, validate and get feedback on its approaches and focus areas as well as draw on the expertise
of stakeholders in addressing areas of concern.
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The Siting & Community Principles and Commitments: These are a direct public statement of our commitments in community engagement, water stewardship and community investment.
It is important for a company to respectfully integrate into the local community and to earn and maintain the public’s trust. Because water resources are important for every community, it is understandable that people will have questions and concerns related to water use and
management. These Principles and Commitments will guide us in consulting with the community, managing water resources and creating value for the community:
1. Listening and Communicating in a Respectful and Collaborative Process We will communicate openly in the siting process, listen to and learn about the local communities, respond to their questions and review their priorities as we design our projects.
NWNA’s goal is to ensure the community understands the full nature of the project proposal and has the opportunity to provide feedback and discuss concerns.
To live up to this principle, we commit to:
• share information in a timely manner with public officials and directly with local
communities as the scientific research proceeds • seek opportunities to hear from the community formally and informally, for example, in-‐
person meetings, presentations and/or community advisory panels, and to communicate
through multiple channels, such as newsletters or project websites, in an effort to reach and encourage participation from the local community and to provide an opportunity for
questions. • establish a process applicable to the local community to address issues that may arise
from the local community or officials during the site development process and during on-‐going operations.
2. Managing Water Resources for Long-‐Term Sustainability NWNA will obtain required permits and comply with regulations and requirements regarding its proposed siting. Our actions will continue to demonstrate the importance of responsible,
respectful management of natural resources. This principle applies to the management of our spring sites selection and development of spring water sources, rate and volume of water withdrawal, design, construction, operation, distribution and transportation. We monitor and
manage our spring sites to help ensure that our water withdrawals and their effect on the quality and quantity of water resources, the watershed ecosystem, our neighbors and other water users are sustainable over the long term.
To live up to this principle, we make the follow commitments: Assessment
• Before filing water permit applications, the spring source is studied for at least one
year (all four seasons). We may undertake a longer study if the scientific studies suggest further analysis.
• NWNA conducts scientific studies at proposed spring water sites as part of the site selection process. These studies cover appropriate aspects of both the biological
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environment and the physical nature of the potential source aquifer. These studies are designed to better understand the potential effects of NWNA’s use of spring water and may include some or all of the following: biological studies of plant and fish life and
habitat, assessments of surface and ground water, and recharge patterns. This will help us establish a base line for the potential sustainable yield over time of the spring source.
Monitoring and adaptive strategies • Monitoring data from a range of environmental receptors are analyzed on an on-‐going
basis for the duration of operations. Examples of monitoring might include biological studies of plant and fish life and habitat, assessment of surface and ground water, and recharge patterns. As a result of this monitoring, NWNA adapts its use of the resource where and when necessary to manage the source sustainably over time.
Mitigation
• If in the course of monitoring and managing the spring source, NWNA finds that actual results are inconsistent with projections or expectations, it will conduct a scientific investigation to evaluate the root cause. NWNA will consider appropriate mitigation options, which may include temporarily reducing withdrawals or habitat improvement programs, to help ensure the sustainability of the resource. NWNA monitors to understand the effects of our withdrawals on neighboring wells and, where applicable, offers well assessment and protection agreements that address adverse effects to their water supply from NWNA’s use.
Transparency
• NWNA shares with the local community: o aquifer test results and base line conditions of the proposed spring water
source o results of studies associated with the proposed development of the spring
water facility o results of our monitoring, and o if and when appropriate, our mitigation plans.
Third Party review
• NWNA supports review of its science by a mutually agreed upon independent and appropriately qualified professional.
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3. Shared Value and Community Investment We strive to develop our spring sites in a manner that creates shared value, by working with
the local community to enhance the positive contributions of our presence and understanding potential challenges. Our goal is to make meaningful contributions to communities where we do business and to create shared value that earns respect and trust. We seek to understand
the ways in which we can bring value to the community through jobs and tax revenues, our expertise in sustainable water resource management, partnerships, charitable giving and volunteerism. To live up to this principle, we commit to
• offer local employment opportunities and support local suppliers, where practical, for the operation of the proposed spring water facility. NWNA jobs typically provide total compensation and benefits that are above average compared to comparable jobs with other employers in the area including medical and dental benefits, 401(k) and profit sharing for its employees.
• work with the local community to explore how NWNA’s proposed presence in the community can help meet the specific needs of the local community, merging community input with NWNA’s focus on watershed improvement, water education, and community health & wellness.
• undertake traffic and environmental studies for the proposed siting of a spring water facility and other appropriate economic and community assessments as applicable.
Nestlé’ S.A.’s global commitment on water Our principle of ‘Managing Water Resources for Long Term Sustainability’ should be seen in the context of Nestlé’ S.A.’s global commitment to water. Nestlé’s Corporate Business Principles state:-‐ We are committed to the sustainable use of water and continuous improvement in water management. We recognize that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity. In addition, Nestlé also recognizes the right of all people to have access to clean water to meet their basic needs.
Nestle S.A. is a founding signatory of the CEO Water Mandate, an initiative led by the United Nations Global Compact. In 2010, the UN Global Compact’s CEO Water Mandate published a Framework for Responsible Policy Engagement, as well as a full Guide on Responsible Business and Water Policy. Furthermore, the Mandate produced a White Paper on the Right to Water. Nestlé continued to be one of the leading companies within the Mandate and has been active in all three work streams on Policy Engagement, Water Disclosure and Human Right to Water.
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The Side by Side Process for Site Development: This process is used to develop new spring water sources. Different members of our siting teams must work side by side, in unison, to
help meet community and company expectations. The side by side is a clear “road map” that helps our representatives understand their responsibilities, and helps everyone see opportunities for engagement. Developing and maintaining positive community relations
requires proactive management throughout the site development process. Community relations and engagement activities fit with the different phases of the project cycle, from initial concept through construction and operations.
Homework – Step I -‐ the starting point. This phase assesses if the site is likely, from the surficial review, to meet NWNA’s environmental, quality and other criteria.
Commit to Investigate & Plan Engagement – Step II – If a site passes the Homework phase then, as we continue to monitor the source, we seek to better understand the local
community and stakeholders and start to the engagement process. Program of Investigation & Engagement – Step III -‐ This is generally the longest phase. It
includes carrying out the engagement plan and undertaking ongoing dialogue with stakeholders on the investigation and project. It is also in this phase that the majority of scientific investigation is conducted, usually in a phased approach over time.
Design, Permitting & Engagement – Step IV -‐ In this phase we gather the results of studies undertaken, share with stakeholders and get feedback, and determine if and to what extent
the spring source can be developed. At this stage we decide if we proceed to formal permitting of the site. We will work with the local community to identify ways in which we can deliver on our commitment to add value to the local community
Ground Breaking and Operations -‐ Step V – After receiving permits to proceed, we start construction, hiring, training and commence operations. We also begin our community
investment programs developed in Step IV.
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Graphically this step by step and side by side process looks like this:
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The Community Engagement Toolkit: The Community Engagement Toolkit consists of:
» Tools that support key activities at different phases of the site development process to develop and execute a community engagement strategy.
» Guidance that provides more qualitative insight and direction based on experience and best practice.
Shared Value: Nestle Waters North America believes in creating shared value in the communities where we are a member. We seek to be a positive force in local communities, providing long-‐term mutual value through our business operations. Economic benefits from business presence such as jobs and tax revenues that result from our development and operation of a spring water source or a bottling facility represent a baseline upon which shared value is developed. We seek to be a preferred local employer through investment in long-‐term, value-‐added jobs and spending with vendors in the state, where practical, to contribute to economic vitality. We understand that a key way shared value is created is through community engagement and knowledge of individual community needs and aspirations. We seek to listen to the community to understand its priorities, needs and concerns and tailor our contribution appropriately. Our community investment policy sets out strategic priorities for support (sponsorship, donation, or partnerships etc.), allows local managers to respond to specific community needs as articulated by that community, and encourages our employees to volunteer. Specifically, the policy supports:
• partnering with the local community to help ensure the local watershed is understood, protected and maintained, including supporting science education about watersheds at local schools
• healthy hydration initiatives, such as providing water for sports events in the local
community
• providing water for emergencies
• programs that meet specific local communities needs
Integration Plan: The Framework for Community Commitment in Siting will be supported by an implementation plan to ensure that the proper capabilities, resources and accountabilities are developed to carry out the framework successfully. This will be carried out over the next
year or so.
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What will be different based on the Framework?
In the past, we have evolved and adapted our siting process based on what we learned from each new community we work with. From these experiences we have engaged in activities
such as one-‐on-‐one meetings with residents, large group public presentations, information hotlines and community newsletters. The framework resulting from the informed BSR process however represents an improvement and new direction. Here are some of the changes we
have made to our siting approach:
» National engagement. We will engage with stakeholders at a national level to
address regional and/or national issues which are often raised during conversations with local communities, and work with others to identify solutions
» An approach to community engagement based on articulated principles and specific commitments. The principles will guide our conduct in local communities during the
siting process and the specific commitments outline tangible actions so that the community knows what to expect from us.
» An enhanced community assessment process. We have developed an enhanced
process to better understand the community needs and concerns at early stages of siting. We want to learn as much as possible, as early as possible, about who the key stakeholders are and their interests and concerns. This assessment process will help
us better understand the community’s perspective and address potential issues in a more open and transparent way.
» Tools to encourage more effective engagement. We have developed tools to help our siting teams with effective communications outreach and dialogue that can also be customized to the specific needs and expectations of each community. BSR has
incorporated suggestions and provided guidance on common dilemmas to build the capacity of our staff “on the ground.”
» Integrated engagement in the site development process. We have developed a vision
for on-‐going community engagement throughout the five phases of the siting process (see chart on page 10). Again, while each situation will be different, this enhanced siting process is intended to provide broad guidance on the kinds of activities our staff
in the field should be undertaking to develop and implement effective community engagement at different stages of spring site development.
» A clearer statement of shared value. As part of a broader initiative at Nestlé Waters
North America to articulate the “shared value” our company seeks to create, we have better defined our opportunities to contribute to communities. We are developing policies and practices for more effective community investment, employee
volunteering and other types of contributions.
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What’s next? The framework is intended to be applied by NWNA’s siting teams – our employees and other team members in the field who guide the process of site development. We plan to incorporate this framework into training programs for relevant employee groups and develop
mechanisms for ongoing review of the framework. As has been noted, every site will be different – and so the framework is built to provide
expectations and boundaries as well as tools, processes and options that provide some flexibility. The specifics of how often, and in what form, engagement and accountability take place will be determined by each site development project.
For our part, we commit to using the framework as a guide to engage responsibly with those communities where we seek a new spring water source and/or seek to operate a new spring
bottling facility. We hope it will help a community understand the process and expectations as well as help address issues and promote dialogue that leads to shared value for the community, as well as Nestlé Waters North America.
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