NESTLÉ IN SOCIETY REPORT 2018 - Nestlé Malaysia
NESTLÉIN SOCIETYREPORT2018
ENHANCING QUALITY OF LIFEAND CONTRIBUTING TO AHEALTHIER FUTUREWe are a company shaped by this purpose. Our firm commitment to stay trueto this defines us and forms the foundation of everything we do at Nestlé.Our purpose-driven resolve enables us to contribute positively to societyand ensures the sustainable growth of our Company.INSIDE THIS REPORTAbout This Report2About Us3A Message from Our Chairman and CEO4Nestlé in Society: Creating Shared Value6Creating Shared Value Governance10Stakeholder Engagement and Material Issues12CSV Key Performance Data16FOR INDIVIDUALS AND FAMILIES18FOR OUR COMMUNITIES46FOR THE PLANET76Awards and Achievements94GRI Content Index96Independent Assurance Report134
ABOUT THIS REPORTREPORT SCOPE AND BOUNDARYWELCOME TO THENESTLÉ INSOCIETY2018The Nestlé in Society reportis a key aspect of our policyto promote transparentreporting and communicationto our shareholders and otherstakeholders.Our 13th stand-alone annualsustainability report includesdetailed information aboutissues material to our business.This report demonstrates ourdedication to Creating SharedValue (CSV) and our progressagainst our commitments. OurCSV impact areas are thoseareas where our businessintersects most closely withsociety, and where we cancreate the most value.This Report covers the reporting period between January and December 2018. Itencompasses the operations of the Nestlé (Malaysia) Berhad (110925-W) (Company)and its subsidiaries (Group).The Report illustrates in detail our efforts to create value in areas that are relevant tothe Company as well as its value chain. It also focuses on the most material issuesidentified by our 2018 materiality assessment.THE NESTLÉ VALUE CHAINAgricultureNestléTier 1 SuppliersConsumersRetail/Business ChannelsREPORTING FRAMEWORKThis Report is prepared in accordance with the Global Reporting Initiative (GRI)Standards - Comprehensive Option. Following the GRI Standards, we address materialissues or those significant economic, environmental and social impact that substantiallyinfluence our stakeholders. The GRI is a non-profit organisation that promotes economicsustainability and leads in the field of non-financial reporting.The Report has also been prepared in accordance with Amendments to Bursa MalaysiaSecurities Berhad Main Market Listing Requirements relating to Sustainability Statementin Annual Reports.INDEPENDENT ASSURANCETo ensure the accuracy and objectivity of the reported information, this Report is subjectto a limited independent assurance by PricewaterhouseCoopers on selected issuesmaterial to our business. In order to view the scope of work and observations, refer tothe full assurance statement at the back of this Report.2
Nestlé in Society Report 2018ABOUT USTurnover ofCommercial operationsin MalaysiaRM5.5 bilin 2018SINCE 1912Operates7Employs more than5,200peopleMarket capitalisation ofRM35 bilas of 31 December 2018Factories and a NestléDistribution Centre100%of our manufacturingworkforce areMalaysianThe biggestHALAL22% of our total productionis exported to more than50 countriesacross the worldproducer in theNestlé world500Produces overhalal products, with locallymade leading householdbrand names such as MILO,MAGGI and NESCAFÉ3
A MESSAGE FROM OUR CHAIRMAN AND CEODEAR STAKEHOLDERS,As the largest food andbeverage manufacturer inMalaysia, we are fully aware ofthe responsibility we shoulder inpositively impacting individualsand families, our communitiesand the planet.Through our diverse portfolio, we areable to touch millions of lives every day, aprivilege we are truly grateful for and onethat we take very seriously.of CSV, we believe that in order for ourbusiness to prosper in the long-term,the communities we have a presence inshould prosper as well.Our Nestlé Purpose and Values frameworkforms the foundation of all that we doand has enabled us to achieve successin Malaysia over the years. Today, weare more committed than ever to makea difference in communities in which weoperate through the following key areas:NURTURING HEALTHIER, HAPPIERINDIVIDUALS & FAMILIES Individuals and Families – to nurturehealthier and happier livesOur Communities – to developthriving, resilient communitiesThe Planet – to steward resourcesfor future generationsUnderstanding that consumers todayexpect more from corporations, weensure that our business operations arein line with our purpose of enhancing thequality of life of Malaysian families andcontributing to their healthier future. Wealso continue to be guided by our values,which are deeply rooted in respect forour community, our people at Nestlé andtheir families as well as to a sustainablefuture. As part of our business philosophy4Our Nestlé products have grownalongside generations of Malaysians forthe past 106 years, with many of thembecoming household names. We areproud to have established such a strongand trusted reputation amongst Malaysianconsumers, both young and old.Never one to rest on our laurels, weconstantly seek ways to remain relevantto individuals and families. Mindful thatconsumers today are seeking healthierproducts which are just as tasty,we endeavour to meet these needsthrough our product innovations andrenovations. Catering to this, in 2018, welaunched healthy, great-tasting productssuch as MILO Less Sugar, CERELACNUTRIBITES and the FITNESSE Bar.We are also proud to have expanded ourHealthier Choice Logo (HCL) certifiedproducts range from 41 products in theprevious year to 59 products in 2018.As the Company’s Global Halal Centreof Excellence and the largest Halalproducer in the Nestlé world, we makestrong contributions to the Halal food andbeverage (F&B) industry on an ongoingbasis. In line with our CSV philosophy, webelieve in the importance of developingand nurturing Halal experts within thelocal industry.During the year, we were actively involvedin various platforms and initiatives toshare our Halal expertise. Through ourSME Mentoring Programme, we continuedto share our Halal knowledge and nurtureHalal best practices among local SMEsand entrepreneurs. We succeeded inreaching out to 80 companies in 2018.Along with offering healthier, greattasting foods and beverages, we alsohave initiatives in place to encourageMalaysians to lead healthier, more activelifestyles. This includes our NESTLÉ FORHEALTHIER KIDS (N4HK) Programme,a global initiative which aims to raiseawareness on nutrition, health andwellness as well as encourage physicalactivity among school-aged children. In2018, we reached out to close to 20,000Malaysian schoolchildren from schoolsthroughout Peninsular Malaysia.
Nestlé in Society Report 2018A MESSAGE FROM OUR CHAIRMAN AND CEODEVELOPING AND EMPOWERINGCOMMUNITIESBeyond profitability, as a Companycommitted to sustainable growth, it isimperative that we help to develop thriving,resilientcommunities.Programmeswhich we conduct in this respect aim tosupport rural development, promote andrespect human rights, as well as ensuredecent employment and diversity.As we rely on agricultural raw materialssupplied by farmers to produce our foodand beverages, we work closely withthem in rural areas and provide themwith the right training and support for asustainable way of working. For example,we have the longstanding NESTLÉCHILLI CLUB and NESTLÉ PADDY CLUBcontract farming schemes to assist localfarmers in improving their yields and thequality of their crops.As part of our commitment to responsiblesourcing, we ensure that our businessactivities do not have a negative impacton our environment and protect humanrights. Traceability and transparencythroughout our value chain are toppriorities to us, and we adhere to thenewly introduced Nestlé ResponsibleSourcing Standard. In 2018, we organisedinitiatives such as the ResponsibleSourcing Awareness Forum andIndicators of Forced and Bonded LabourWorkshop to highlight the importanceof ethical sourcing practices among oursuppliers.We continued to place a strong emphasison the wellbeing of our people, who arethe backbone of our Company and keyto our success. The year 2018 saw theintroduction of Nestlé’s enhanced GlobalMaternity Protection Policy which offersincreased benefits to new parents,including adoptive parents. In addition toproviding a postitive and fulfilling workenvironment for our people, we offervarious talent development programmesto upskill our employees. In the yearunder review, we delivered a wide rangeof training sessions and initiatives for ourpeople to maximise their potential andadvance their careers.TOWARDS A GREENER FUTUREIn our bid to steward resources for futuregenerations, we go to great lengths toensure that our business operations areconducted in a sustainable manner. Wedo this first and foremost by embracingresponsible water stewardship. InMalaysia, we encourage good watermanagement at all our manufacturingfacilities as well as through initiativessuch as our Kinabatangan RiLeaf Projectand the Safe Water, Safe CommunitiesProject.The Kinabatangan RiLeaf Project waslaunched in 2011 with the aim of restoring2,400 hectares of land along the LowerKinabatangan River through tree-plantingefforts. Having achieved this initial target,in 2018, we decided to push beyond ourcommitment to plant one million trees by2020. Meanwhile, our Safe Water, SafeCommunities Project was established withthe objective of providing underservedcommunities in remote areas with accessto safe and clean water.Toenhancetheenvironmentalperformance of our packaging, wecontinued our innovative efforts to reducepackaging material usage. In 2018, wesucceeded in reducing material usage by517 tonnes.Apart from that, other entedincludeminimisinggreenhouse gas emissions, improvingefficiencies in our transportation anddistribution activities, and reducingenergy consumption. These generatedtangible results during the year.AWARDS & RECOGNITIONSAs a result of our Company’s dedicationto enhancing quality of life andcontributing to a healthier future, weearned several recognitions and awardsin 2018. These include “SuccessfulInternational Halal Company”, “MostPopular Graduate Employer Award”,and “Best Environmental ResponsibilityAward” among others. For the full list ofawards and recognitions, please refer topages 94 & 95 in this report.Today, we operate in an increasinglycompetitive world, where consumersare more concerned about the food thatthey eat and the impact our Companyhas on communities and the planet.In light of this, we are steadfast in ourcommitment to sustainable businesspractices and producing high quality,great-tasting and nutritious products thatcontinue to resonate with Malaysians inthe years ahead.Y.A.M. Tan Sri Dato’ SeriSyed Anwar JamalullailChairmanJuan AranolsChief Executive Officer5
NESTLÉ IN SOCIETY: CREATING SHARED VALUEJUAN ARANOLSCEO, Nestlé MalaysiaLooking to the future, Creating Shared Value (CSV) remains the fundamental guidingprinciple for how Nestlé conducts business around the world. The CSV model focuseson creating economic and social value simultaneously for both our shareholders andsociety at every stage of our value chain. This is how Nestlé brings its purpose to life –to enhance quality of life and contribute to a healthier future.At Nestlé, we believe that in order to create long term value for the Company we mustconcurrently create value for society. We aim to have a positive impact on society whilewe grow our business. We enable healthier and happier lives for individuals and families,we help develop thriving and resilient communities and finally, we steward the planet’snatural resources for future generations.As the world’s largest food and beverage company, we believe that our size and scaleprovide both opportunities and responsibilities. It is crucial that our Company operatesin compliance with national laws, international standards and our own values andprinciples, as expressed in the Nestlé Corporate Business Principles (NCBP) – whichalso form the basis of our CSV strategy. Beyond mere compliance, our commitmentsare embodied in our vision of CSV.Investing sustainablybehind our brands is toaddress the need forhealthier lifestyles andexpectations of societyas well as to act uponour environmentalresponsibility, whereaction and progress isvery much needed.NESTLÉ IN SOCIETY PYRAMIDCREATINGSHARED VALUENutrition, Water& Environment, RuralDevelopment and Our PeopleSUSTAINABILITYProtect the FutureCOMPLIANCELaws, Business Principles, Codes of Conduct6
Nestlé in Society Report 2018NESTLÉ IN SOCIETY: CREATING SHARED VALUECreating Shared Value at Each Stage of the Value ChainAgriculture andRural DevelopmentFARMERSTIER 1 SUPPLIERSEnvironment,Manufacturingand PeopleNESTLÉProduct andConsumersRETAIL/BUSINESSCONSUMERSProviding R&Dand expertisefor supplierslnvesting in localmanufacturingplantsBuilding brandsthrough responsiblemarketingValue for NestléSecuring suppliesof high-qualityraw materialsImproving communityrelationships andproduct qualityLoweringmanufacturing anddistribution costsEntering newand emergingmarketsAchievingcompetitiveshareholder returnsValue for SocietyCHANNELSProviding expertiseand supportfor farmersImproving yieldsand increasingincomesReducingconsumption ofnatural resourcesCreating jobs inlocal communitiesWidening access toproducts thatconsumers valueGenerating localinvestments andeconomic growthIncreasing valueand volumeof sales7
NESTLÉ IN SOCIETY: CREATING SHARED VALUEBringing our Purpose to LifeIn today’s rapidly changing world, majorchanges are occurring at all levels.Consumers today have ever-evolvingexpectations and we are operating ina fast-changing, competitive businessenvironment. With people becoming moreaware of the role of food in managingtheir health as well as placing moreimportance on the environment, theyhave high expectations of companies.They also want to know how companiescontribute towards a brighter future forour communities and environment.Our purpose has been our driving forceand will continue to propel our Companyforward. Our purpose framework willbring us even closer as one Companyacross all our businesses, marketsand functions. We intend to go beyondbusiness performance, and are committedto continue making a positive impact forindividuals and families, our communities,and for the planet – this is what we meanby CSV.With our wide food and beverageportfolio, we are privileged to have theopportunity to touch millions of livesevery day. This includes the farmers wework with to the individuals and familieswho enjoy our products, the communitieswhere we live and work and the naturalenvironment upon which we all depend.Their challenges are our challenges.Their success is success we all share.8We strive towards enhancing qualityof life and contributing to a healthierfuture:FOR INDIVIDUALS AND FAMILIESBy offering products and services thatenable healthier and happier lives.FOR OUR COMMUNITIESBy helping to develop thriving andresilient communities and supportbetter livelihoods for those we liveand work with.FOR THE PLANETBy shaping sustainableconsumption and stewardingresources for future generations.Underpinning all our efforts are our values,which are rooted in Respect: respect forourselves, respect for others, respectfor diversity and respect for thefuture. Guided by these values, we workalongside our partners and stakeholdersto ensure that this approach to our CSVis embodied in all our behaviour, policiesand actions.Contributing to the SustainableDevelopment GoalsDriven by our Company’s purpose, ourCSV approach is closely aligned with theUnited Nations (UN) 2030 Agenda forSustainable Development. Having helpedto shape the 17 Sustainable DevelopmentGoals (SDGs), we – together withthe global business community – arecommitted to doing our part in achievingthese goals. We recognise that we livein an interconnected world in which ourfutures are inextricably linked.In line with that, we have integrated theSDGs into our CSV approach, enablingus to identify goals where we can createthe biggest impact, or at least mitigatea negative impact. Globally, we havemapped out our material issues againstthe SDGs to see where our initiativesare best placed in order to add the mostvalue, whether directly or indirectly.As part of Nestle’s aim to help achievethe UN’s 2030 Agenda, globally we havedefined three overarching ambitionswhich will support the SDGs. Theseglobal ambitions are: Enable healthier and happier lives:Helping 50 million children leadhealthier lives by 2030;Help develop thriving, resilientcommunities:Helping to improve 30 millionlivelihoods in communities directlyconnected to our business activitiesby 2030; andSteward resources for futuregenerations:Striving for zero environmentalimpact in our operations by 2030.
Nestlé in Society Report 2018NESTLÉ IN SOCIETY: CREATING SHARED VALUEOur Company's PurposeEnhancing quality of life and contributing to a healthier futureOur AmbitionsFor Individualsand FamiliesFor OurCommunitiesFor ThePlanetEnabling healthier and happier livesHelping develop thriving, resilientcommunitiesStewarding resources for futuregenerationsOur CSV Impact AreasNutrition, Health and WellnessRural DevelopmentWaterHuman Rights and ComplianceEnvironmental SustainabilityOur PeopleHow We Make ImpactOffering tastier and healthier choicesEnhancing rural livelihoodsCaring for waterInspiring people to lead healthier livesRespecting and promoting human rightsActing on climate changeBuilding, sharing and applyingnutrition knowledgePromoting decent employmentand diversitySafeguarding the environmentThrough our Ambitions, we are Supporting the Sustainable Development Goals9
CREATING SHARED VALUE GOVERNANCEWe want to be the trusted leader in our sector. Building our business on clear principles and sound governance helps us maintaintrust in the Nestlé brand and reduce risk throughout our value chain.Nestlé Corporate Business PrinciplesOur Nestlé Corporate Business Principles form the foundation of our culture, values and Creating Shared Value strategy. It is essentialthat all employees comply with the principles through the ongoing implementation of relevant business codes, policies, processesand tools.Our Corporate Business Principles are reviewed by the Executive Board and are aligned with international best practices andstandards such as the United Nations Global Compact (UNGC) Principles.We monitor their application and effectiveness through various channels, including our CARE (Nestlé Corporate ComplianceAssessment Programme of Human Rights & Labour Practices, Business Integrity, Safety & Health, Environmental Sustainability andSecurity) audits.GOVERNANCE STRUCTURE AT GLOBAL LEVELThe Board of Directors, the Chairman, Chief Executive Officer (Group CEO) and Executive Board supervise and manage Nestlé’s rolein society, including the Creating Shared Value strategy. They are supported by internal management bodies such as the Nestlé inSociety Board, as well as the Operations Sustainability Council, Issues Round Table, R&D Council for Sustainability and Nutrition, andthe Group Compliance Committee.GLOBAL GOVERNANCE STRUCTUREBoard of DirectorsNomination and SustainabilityCommitteeChairman and CEOExecutive BoardNestlé in Society Board10Individuals and FamiliesLeadership CommitteeCommunitiesLeadership CommitteeEnvironmentalLeadership CommitteeTopics covered:Nutrition and health,responsible marketingTopics covered:Rural development, humanand labour rights, healthand safety, gender, youthTopics covered:Climate change, water,plastics, stewardship,food loss and wasteIssuesRoundTableWHO CodeComplianceCommitteeGroupComplianceCommittee
Nestlé in Society Report 2018CREATING SHARED VALUE GOVERNANCEThe Nestlé in Society BoardExternal Advisory GroupsThe Global Nestlé in Society Board leads the strategicdevelopment and implementation of CSV across our business,including all societal commitments, objectives and strategies,and seeks input and confirmation from the Executive Board. It ischaired by the Group CEO.Beyond our internal governance structure, we also take a wide,more inclusive approach, with advice from two formal externaladvisory councils: the Nestlé Nutrition Council and the CSVCouncil. They are tasked to further develop the CSV concept andanalyse the Nestlé value chain. For the complete list of expertson the Advisory Board, please visit our Nestlé S.A. website atwww.nestle.com.Specifically, the Board works to: Ensure all activities and workstreams align with Nestlé’spositioning in society;Assess and draw appropriate conclusions from societaldevelopments affecting Nestlé; andFurther strengthen our credentials in Creating Shared Value,environmental sustainability and compliance.GOVERNANCE STRUCTURE AT NESTLÉ MALAYSIAEstablished in 2011, the CSV Council of Nestlé Malaysiaensures that sustainability issues are taken into accountacross all business operations. Headed by the GroupCorporate Affairs Department, the Council consists ofcross-functional representatives from across the Company.The CSV Council meets the Board of Directors twice a year topresent the progress of CSV initiatives as well as discuss CSVissues of the Company.CSV GLOBALLY AND IN MALAYSIANestlé S.A. CSVAdvisory Board:Nestlé MalaysiaGroup CorporateAffairs Department:Nestlé S.A.:Assesses our progressand discusses CSVopportunities andchallengesBusiness Units/Support Functions:Implement CSVinitiatives in MalaysiaReceives adviceand approvesrecommendationsLeads implementationof the CSV strategyin MalaysiaNestlé MalaysiaCSV Council:Ensures CSV ispresent across alloperationsin Malaysia11
STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUESSTAKEHOLDER ENGAGEMENTNestlé products have been household staples in Malaysia since 1912. We have earned the trust of consumers and other stakeholdersthrough continuously ensuring good quality products and playing an active role in the community. We value the opinions of ourstakeholders, who include our employees, consumers, suppliers and communities as well as people we engage with regularly suchas authorities, government, NGOs, shareholders, industry and trade associations and academia. Different stakeholders have specificareas of interest that can have a direct impact on our business.PROTECT AND BUILDTRUSTBUILDINGTRUSTCreating SharedValuePROTECTINGTRUSTIssue ManagementSTAKEHOLDER ENGAGEMENT PROCESS12IDENTIFYINGMAPPING & DEFININGENGAGEMENT LEVELWe consider our stakeholdersto be those who have a directinterest in our business andthose who have an interest inhow we manage our business.Our extensive stakeholderengagement process with bothinternal and external stakeholdersallows us to track and managecurrent and emerging issues.We will continue to manage relevantCSV initiatives and share ourprogress against commitments in afair and transparent manner.
Nestlé in Society Report 2018STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUESWe use different channels to engage with our stakeholders, such as formal meetings, surveys, websites, social media and marketresearch. In 2018, we held a Stakeholder Engagement Day where 80 business partners and suppliers, industry and trade associations,regulatory bodies, ministries, health and sports bodies as well as academia and media partners were invited to learn more about ourproducts and services as well as to provide feedback through a survey.Multi-Stakeholder PartnershipsNestlé is a strong advocate of multi-stakeholder partnership and engagement as it unlocks the potential for coordinated, holisticactions. We value the contribution every sector of society makes in creating an environment where all parties take responsibility,contribute collectively and work to achieve common goals.As a reflection of this, through our involvement in the Federation of Malaysian Manufacturers (FMM), together with keyindustry participants, we collaborate closely with relevant Government bodies, authorities and regulators to addresspertinent issues facing the industry, such as food manufacturing related proposals, legislation and guidelines. On a broaderscale, we share our expertise on Halal industry matters and provide counsel on key areas such as responsible marketing tochildren and nutrition labelling.13
STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUESThe table below summarises the standard methods we use in engaging with our stakeholders throughout the year:Stakeholder GroupsEngagement MethodsEmployees Ongoing education and training programmes Townhall meetings and roadshows People Development and Performance (PDP) Safety, Health and Environment (SHE) initiatives Intranet (The Nest) Employee Volunteer Programme (Reaching Out to Newsletter (The Nestlé Edge) Internal e-announcement and news Employee events (annual hi-tea, festive celebrations etc.)Consumers and Corporate and brand websites Consumer research (Corporate Equity Monitor)General Public Consumer relationship marketing (Dear Nestlé Club) Social media channels (Facebook and Instagram) Corporate and brand campaignsShareholders and Investors LocalCommunity & Kids - ROCKS)Advertisements and promotions Exhibitions and showcasesAnnual Report Analyst briefingsAnnual General Meeting Announcements to Bursa Malaysia Securities Berhad Community development programmes Monthly food contribution programmeCommunities CSV projects Corporate Social Responsibility initiativesBoard of Directors Board of Directors meetings Corporate & CSV events Creating Shared Value update meetingsNon-Governmental Roundtable discussions Monthly food contribution programmeOrganisations Strategic partnerships and agreements Key Opinion Leaders (KOL) survey Memberships Corporate Social Responsibility initiatives Advocacy meetings Regulatory filings Roundtable issue discussions Exhibitions and showcases Ministerial engagements and dialogues Key Opinion Leaders (KOL) survey Face-to-face engagements Corporate and brand events Dialogues and forums Key Opinion Leaders (KOL) survey Media familiarisation trips to CSV project sitesIndustry and Trade Member participation in key associations Key Opinion Leaders (KOL) surveyAssociations Advisory panelists Exhibitions and showcasesSuppliers Supplier Engagement Day (Nestlé Procurement Day) Small & Medium Enterprise (SME) Training on Responsible Sourcing Standard andMentoring ProgrammeGovernmentMediaNestlé Malaysia Anti-Corruption, Gift andEntertainment PolicyCustomers/ Product campaignsRetailers Consumer engagement activitiesAcademia Partnership programmes Talks and forums Employer branding activities (e.g. career fairs)14 Key Opinion Leaders (KOL) survey
Nestlé in Society Report 2018STAKEHOLDER ENGAGEMENT AND MATERIAL ISSUESMATERIAL ISSUESContinuous engagement with both internal and externalstakeholders is the only way to ensure that we prioritise theenvironmental, economic and social issues that matter most toour stakeholders and have the biggest influence on our business.In accordance with our commitment to conduct a formalmateriality assessment every two years, we collected feedbackfrom our stakeholders and updated our materiality matrix in 2018.In addition to consultation during our Stakeholder EngagementDay, both internal and external stakeholders had the opportunityto tell us which of Nestlé’s material issues they consider to be ofhighest priority.Based on 2018 assessment, we added Water to the matrixwhile Community Development and Talent Management topicswere renamed Community Engagement and Training andDevelopment, respectively, to represent the activities undertakenin these areas more accurately.Each issue’s position in the matrix is indicative of its relativeimportance to stakeholders and potential for business impact. Theissues included in this assessment are by nature interconnectedand improvements in one can, and do, lead to changes in another.In order to maximise shared value among our stakeholders, it isour responsibility to deliver solutions across the full spectrum ofmaterial issues facing our business.OUR MATERIALITY MATRIX 2018HighestWaste ManagementFood Safety & QualityPackagingINCREASING CONCERN TO STAKEHOLDERSNutrition, Health andWellnessWaterRural Development andEmpowermentClimate ChangeIntegrity & GovernanceCommunity EngagementDiversity & InclusionSupply Chain andDistributionHuman RightsEmployee Health andSafetyTraining andDevelopmentInnovationHalalProduct Marketing andAdvertisingINCREASING OR CURRENT IMPACT ON NESTLÉHighIndividuals & FamiliesOur CommunitiesThe PlanetHighestGovernance & Ethics15
CSV KEY PERFORMANCE 131,223,069Taxes129,367169,666217,008Net .00275.00280.003.52.71.910010098Products with Guideline Daily Amount (GDA) labelling(% as at 31 December 2018)9910098Products meeting or exceeding consumer taste preference(% of sales)889295Number of products with Healthier Choice Logon/a41594,2167,02319,474*– Number of farmers who participated in NPC (Jan/Feb)299285270– Number of farmers who participated in NPC (Aug/Sept)290272263– Average yield (Jan/Feb)6.10MT/ha5.27MT/ha5.43MT/ha– Average yield (Aug/Sept)6.44MT/ha5.71MT/ha5.58MT/ha– Total number of hectares (Jan/Feb)798762739– Total number of hectares (Aug/Sept)762732723ECONOMICOperational FootprintTotal number of factoriesValue Generation (RM’000)Total sales for MalaysiaValue Distribution (RM’000)TurnoverOperating costsEarnings per share (sen)Net dividends per share (sen)Dividend yield (%)##NUTRITIONProducts displaying the Nestlé Nutritional Compass (NNC)(% as at 31 December 2018)NESTLÉ FOR HEALTHIER KIDS Programme(Number of students involved)RURAL DEVELOPMENTNESTLÉ PADDY CLUB* This data has been independently audited. Please refer to the Independent Assurance Report from pages 134 & 135.#2017 comparative figure restated due to adoption of MFRS, Leases.16
Nestlé in Society Report 2018CSV KEY PERFORMANCE DATADescription2016201720
the responsibility we shoulder in positively impacting individuals and families, our communities and the planet. DEAR STAKEHOLDERS, As the Company’s Global Halal Centre of Excellence and the largest Halal producer in the Nestlé world, we make strong contributions to the Halal
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