Water Is One of Three Major Focuses in Nestlé's Creating Shared Value

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Creating shared value lies at the heart of Nestlé's business. CSV goes beyond sustainability and compliance, aiming to create new and greater value for society and our shareholders within Nestlé's chosen focus areas — nutrition, water and rural development. Our long-term commitment to the environment, to the communities where we operate and to our own employees is never sacrificed for short-term performance. This explains our company's successful history of providing quality products supported by expertise in nutrition, health and wellness. This success story will be 150 years long next year – a great anniversary that Nestlé will be solemnly celebrating worldwide.

While aiming to ensure long-term profitability and sustained development of the business, Nestlé is trying at the same time to reduce its impact on the environment. This is made possible through measures and business practices aimed at establishing an environmental balance. First are the Nestlé Corporate Business Principles, which regulate the business processes and operations of over 300,000 employees and suppliers. A responsible attitude toward maintaining environmental sustainability, preserving water resources and enhancing agricultural development is part of the company's four fundamental principles.

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. According to forecast, by 2025, the number of states that face water crises will increase to 48 as water intake from natural sources exceeds their recovery (United Nations Environment Program). In the future, the situation will become even more aggravated since the world population will reach 10 billion by 2020.

Water has been identified as the most important factor for Nestlé's long-term success, as it affects the supply of raw materials, our operations and the consumption of many of our products. To make us the most efficient water user in our industry, Water Resource Reviews are conducted at factories and in commodity-growing areas. We help farmers become better stewards of water. We support water resource awareness and education programs and we take a leading role in the global dialog on the issue.

We have championed integrated solutions to the world's water crisis, for example, through the 2030 Water Resources Group and the UN Global Compact's CEO Water Mandate, the expert group to draw up the international standard ISO 14046:2014 "Environmental Management. Water Footprint. Principles, Requirements and Guidelines." the CEO Water Mandate, World Business Council for Sustainable Development Pledge. In 2014, we prepared our own in-house guide based on the Alliance for Water Stewardship Standard in order to raise the quality of water management in the key regions where Nestlé is present and has production activity.

For instance, Nestlé has decreased water discharges per ton of product by 52% since 2005.

Solving the problem of providing the planet's growing population with drinking water and food products requires the joint efforts of the state, business, and society. We are willing to help by advocating for effective water policies and water stewardship. Our proactive approach brings us into contact with public-private partnerships, industry bodies, NGOs and research institutions to learn and share best practice.

We are convinced that public discussion concerning the water efficiency of production enterprises (including the Nestlé company) is helping raise society's awareness of the global consequences of a water shortage and encouraging significant individual and collective measures.

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