International Policy

Nestlé believes in the superiority of breastfeeding and recognizes that the World Health Organization's (WHO) International Code of Marketing of breast milk substitutes is an important instrument for the protection of it, particularly in countries where poor sanitary, economic and social conditions prevail. Read more on the WHO Code of Marketing PDF 136 Kb.

Nestlé sells and markets infant formula products responsibly, and we voluntarily and unilaterally apply the WHO Code in all developing countries. To ensure compliance with the WHO Code, Nestlé has developed a unique global management system, which includes the following aspects. For more information about infant formula download the following documents:

• Infant formula and complementary food labelling; PDF 91Kb
• Infant formula marketing PDF 99Kb

Nestlé in Canada Policy

In Canada, where the WHO Code is not legislated, Nestlé supports the position of Health Canada, the Canadian Paediatric Society and Dietitians of Canada. This position is outlined in the document, Nutrition for Healthy Term Infants, which states that breastfeeding for as long as possible is best, and that formula is appropriate if mothers choose to supplement or discontinue breastfeeding. In addition, Nestlé complies with the Food and Drug Act and Competition Act, which regulate the infant formula here in Canada.

Nestlé WHO Code Quality Assurance System

This has been implemented in all developing countries where Nestlé operates and is built along the lines of ISO quality assurance systems. The manual, outlining Nestlé policies and procedures, gives detailed operational guidelines to all Nestlé employees in their daily conduct of business related to infant formula to ensure compliance at all levels with both the WHO Code of Marketing of breast milk substitutes and local regulations.

Training, testing and compensation on WHO Code knowledge

Nestlé trains relevant Nestlé Nutrition personnel on the WHO Code. They are tested regularly on their knowledge, and their performance is a criterion upon which salary increases and promotions are based.

In 2009, 100% of staff involved in infant formula marketing in developing countries received specific WHO Code training [KPI]; we aim at 100% coverage in any given year, but this may not always be possible due to employee turnover. During the course of 2010, a new web-based training and testing tool was implemented to assess the Code knowledge of all Nestlé Nutrition's medical delegates on a continual basis.

Audits

Nestlé has established a significant program of WHO compliance and monitoring. Corporate auditors check approximately 20 countries every year to verify Code compliances. Any verified Code violation is submitted to the CEO of Nestlé for review and action, and is reported to the Audit Committee of the Board of Directors. The Nestlé system is recognized as best-in-class by social investment groups.

Read more about our implementation of the Code at the Babymilk website.

Leadership in focus: Nestlé Chairman Peter Brabeck-Letmathe, with Tshebedisano Primary School pupils in Soweto. In 2013, the school launched the Nestlé Healthy Kids Programme in South Africa, after winning a Nestlé Community Nutrition Award for their vegetable garden.

We believe that this 2013 report on Creating Shared Value at Nestlé represents a significant step forward in our drive to communicate transparently with our shareholders and stakeholders about our commitments and progress in all the areas where we engage with society. This report underlines our fundamental belief that for a company to be successful over the long term and create value for shareholders, it must also create value for society. At Nestlé, this begins with the creation of superior long-term value for shareholders by offering products and services that help people improve their nutrition, health and wellness.

Henri Nestlé founded the Company in 1866 on the success of a life-saving infant cereal. Today, we aim to enhance the quality of life of all our consumers by offering tastier and healthier food and beverages, as well as information and services to enable them to make the right choices at all stages of life. And we are investing for the future health and wellness of our consumers through our network of research centres, the Nestlé Institute of Health Sciences and the Nestlé Health Science business. We believe that good nutrition will play an ever more important role in the health and wellness of individuals and society.

To build a business capable of both delivering superior shareholder value and helping people improve their nutrition, health and wellness, Creating Shared Value is the approach we take to the business as a whole. In addition to nutrition, we focus on water, because water scarcity is a very serious issue in many parts of the world and water is quite simply the linchpin of food security. And we focus on rural development, because the overall well-being of farmers, rural communities, small entrepreneurs and suppliers is intrinsic to the long-term success of our business.

We continue to actively manage our commitments to environmental and social sustainability, necessary for operating our factories and for the sustainable growth and development of the communities and countries where we operate. With this report, we also restate our support for the UN Global Compact, as a founding member of UN Global Compact LEAD – an important platform for corporate sustainability leadership. We have always believed that in order to prosper we need the communities we serve and in which we operate to prosper as well; and that over the long term, healthy populations, healthy economies and healthy business performance are mutually reinforcing. This involves substantial training and education of people inside and outside Nestlé, as well as large investments in technology with lower environmental impact.

Partnerships in focus: Paul Bulcke visiting a Chilean peach farm, located in the Region of Libertador General Bernardo O’Higgins, near Nestlé’s San Fernando factory, where infant food is manufactured.

We recognise that our position in society brings both opportunities and responsibilities: to do business in compliance with national laws, international standards and our own values and principles, as expressed in our Code of Business Conduct, Corporate Business Principles and Management and Leadership Principles. For a company like ours to prosper, we must take a long-term view, framed in a robust set of principles and values which have been developed over nearly 150 years. They are based on respect: respect for people, respect for cultures, respect for the environment and respect for the future of the world we live in. Thus, our commitments go beyond simple compliance and are based on common sense values that form the foundation upon which we build our actions in Creating Shared Value.

Last year, we decided to publish a set of forward-looking commitments, covering every part of our business, in order to provide a clear sense of the strategic direction we are heading in and the standards to which we hold ourselves accountable. They are real, they are credible, and we will do everything in our power to make sure they are deliverable. But we know that there will be challenges along the way, and these too we will share with you. In this report, we hope to demonstrate where we are making progress, and where there is more work to be done. We hope this report enables you – our shareholders and stakeholders – to hold us accountable and offer guidance. We have also introduced a number of new commitments and will report on them in future years. We welcome your feedback on this report, on our commitments and our performance.