ESG at

Nestle
Safira Andriani, Noyna Roy, Mohammad
Sangadji, Muhammad Fayyadh
 01 02
History & Overview, Financials
and Sustainability
Journey

03 04
ESG Footprint ESG Framework &
Action Plan
0
1Y &
HISTOR

OVERVI
EW
History & Overview

- Founded in 1866 as a baby

formula brand in Switzerland

- Moved into convenience foods

after WW2, including instant coffee
and noodles

- 1981: started promoting health

and wellness

- 2017 onwards: steps up

sustainability goals

Source: Nestle
History & Overview

- Over 2000 brands

globally
- With 10 divisions

- F&B: dairy, coffee,

chocolate, ice cream,
drinks, baby food, water

- Others: Health care and

cosmetics

Source: Nestle
Sustainability Journey

“We believe in the power of food to enhance quality of life” - Nestlé

Goals:
- 50% reduction in emissions by 2030, net zero by 2050
- 100% renewable energy by 2025 (currently at 78.4%)
- 100% deforestation free supply chain (currently at 99.1%)
Source: Nestle Sustainability
02
FINANCI
ALS
Financial Results – Income
Statement
In 000,000s CHF Swiss
Franc YoY Income Statement Comparison
CY PY
75000
Income Statement: 1/1 to 12/31
65000
Revenue: 6055 13756
Sales, net 94,424 87,088 55000 3421
Cost of Goods Sold (COGS) 51,745 45,468
Gross Profit 42,679 41,620 12206 11297
45000
45% 48%

CHF (in 000,000s)

Expenses: 35000
Distribution Expenses 8,386 7,919
Marketing & Administration Expenses 16,850 17,294 25000
42679 41620
Research and Development Cost 1,696 1,670
15000
Depreciation 3,541 3,440
Operating Profit: 12,206 11,297
13% 13% 5000

Other Income/Expense: 2022 -4720

2021
-5000
Other Income (2,053) (9,982)
2021 2022
Other Expenses 5,474 5,262 -15000
Total Other 3,421 (4,720)
Gross Profit Operating Profit Total Other Net Income

Taxes 2,730 2,261

Net Income: 6,055 13,756
Financial Results – Balance Sheet
In 000,000s CHF Swiss
Franc YoY Balance Sheet Comparison
CY PY

Balance Sheet: 12/31 300000

Current Assets:
Cash 5,511 6,988 250000 42792 53727
Receivables, net of allowance
11,116 11,155
for bad debt (AR)
Inventory 15,019 11,982 200000

CHF (in 000,000s)

Total Current Assets 31,646 30,125 92390 85415
Long-Term Assets:
Property, Plant, & Equipment, 150000
net of depreciation (PPE) & 103,536 109,017
Other Assets
Total Assets 135,182 139,142 100000

135182 139142
Current Liabilities: 50000
Accounts Payable (AP) 20,523 20,907
Accrued Expenses 5,114 5,051
Total Current Liabilities 25,637 25,958 0
2022 2021
Long-Term Liabilities 2021 2022
Term Loan 66,753 59,457 Total Assets Total Liabilities
Total Liabilities 92,390 85,415 Total Member's Equity
Financial Results - 2022
Ratios
In 000,000s CHF Swiss
Franc
Returns
ROE 13%
ROA 4%
ROIC 9%

Free Cash Flow CHF 10,706

Liquidity
Current Ratio 1.23
Quick Ratio 0.65
Valuation
Price / Earnings Ratio 6
Enterprise Value / EBITDA 22.75
Leverage
Debt / Equity 1.56
03
ESG
FOOTPRIN
T
Nestle ESG Footprint
Impact on society and environment

6.4 million tons of CO2 reduced against BAU scenario

82% percentage of plastic packaging designed for recycling

2.4 million of m3 of water reduction usage in factories

5.6 million youth have been enabled to have economic opportunities since 2017

30% percentage of women in the top 200+ senior executive positions

Source : 2022 Nestle Sustainability Report
Nestle ESG Footprint
Key issue compared to industry peers

Supply chain Raw Material Sourcing Product Safety

labor standard and Quality

Source : MSCI Nestle ESG rating 2022

04
ESG
FRAMEWOR
K & ACTION
PLAN
 Evaluating & Measuring ESG at Nestle

Climate
Agriculture
Packaging ESG Framework:
● ESG focus area and goals
Nature ● Risk mitigation and
Water management
● Industry benchmarking
People
 ESG FOCUS AREAS & GOALS
Climate
Do our part to curb climate change by
reducing greenhouse gas (GHG)
emissions across our value chain.
Nature
Achieve and maintain deforestation
free primary supply chain and source
ingredient through regenerative
agriculture
Sourcing ingredients
sustainably
Working with farmers, supplier, and
communicate to source ways that
protect ecosystem, reduce emissions
and enhance livelihoods.
Water
Drive water security to assure business
continuity while positively contributing
to communities.
Evolving
packaging
Packaging helps keep food safe but causes
waste. Investment in packaging innovations
and new business models help keeps waste
out of landfills
People
Forging deep engagement on climate
issues with farmers, industry,
governments, NGOs and communities.
 ESG Risk Rating

Risk Ratings based on:

27.2 Medium Risk 1. Exposure: a company’s
vulnerability to ESG risk
129 out of 627 in the Food (Medium)
2. Management: actions
Products Industry taken by company to
manage ESG issues
(Strong)

Source: https://www.sustainalytics.com/esg-rating/nestl-sa/1007910219
 Comparing Industry Risk Ratings
33.7

27.2

22.1 22.6
17.7

D Pe M N K
an ps on es ra
on ic de tl e ft
e o, le H
SA In z ei
c. n z

Source: https://www.sustainalytics.com/esg-rating/nestl-sa/1007910219
 Our ESG Action Plan
ESG TARGET PERFORMANCE AGAINST TARGET RECOMMENDED
FOCUS
Reduce absolute GHG ACTIONS
emissions by 50% by
CLIMATE 2030
1
Source 20% key
Create partnership for key
sources with farmers and
AGRICULTURingredients through
regenerative agriculture local communities to
E
implement regenerative
Reduce virgin plastic by
one third versus agriculture initiative
baseline
PACKAGING
Maintain 100% assessed 2 Invest in R&D to identify
deforestation-free
and implement innovative
primary supply chain regenerative agriculture
(meat, palm oil, pulp and practices
paper, soy, and sugar) by
NATURE 2022 and 2025 for cocoa
and coffee Advocate and participate in
Reduce water use in 3 extended producer
factories by 6 million. responsibility program to
m3 between 2021 and
WATER 2023 take responsibility for the
entire lifecycle of the
Help 10 million young
people around the world product.
have access to economic
PEOPLE opportunities
 Thank You
Q&A
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