REPORTING ON SUSTAINABLE FINANCIAL PRINCIPLES FOR THE

NIGERIAN CAPITAL MARKET

NESTLĖ NIGERIA PLC SUSTAINABILITY REPORT TO SECURITIES &

EXCHANGE COMMISSION AND THE NIGERIAN EXCHANGE

LIMITED

FOR THE YEAR ENDED

12/31/2022

Principle 1: Environmental, Social and Governance (ESG) Considerations

  • Regulated entities should put in place effective governance structures and consider the impact of their operations and activities on the environment and society.
  • The entities should innovate and implement measures that promote the good of the communities and the natural environment in which they operate. Factors to be considered include:
      • Efficient use of resources, such as energy and water;
      • Effective waste management;
      • Compliance with applicable labour and social standards; and
      • Alignment of their community development programmes with Nigeria's overall goal for sustainable economic and social development.
    • They should establish appropriate ways to encourage and promote desired behaviours of employees to meet ESG standards.

Kindly disclose the implementation status of Principle 1 in your entity by ticking ( ) in the appropriate cells in the table below and offer a brief description of your efforts so far.

Indicators

Completed

In

Yet to

Not

Brief description of action(s) taken towards implementation

progress

start

applicable

1.1. Entities should develop appropriate policies

- The Nestlé Corporate Business Principles specifies the

to integrate ESG considerations into

foundation for Sustainability and Creating Shared

decision-making processes and enterprise

Value. It also highlights the 10 principles for business

risk management framework.

operations including ESG considerations. Other

policies like the Nestlé Policy on Environmental

Sustainability, Nestlé Management Systems Policy and

Code of Business Conduct also reflect the company's

ESG standards and commitments.

1.2. Entities should also develop robust and

- The Nestlé Code of Business Conduct and Ethics

transparent procedures, which entail clear

specifies and helps the continued implementation of

governance structures, limits of authority,

the Corporate

Business

Principles

by

establishing

standards and codes of conduct, to support

certain

non-negotiable

minimum

standards

of

implementation of their policies and the

behavior

in key

areas. It

also provides

a frame

of

Principles.

reference against which to measure company

activities and governance structures.

1

Indicators

Completed

In

Yet to

Not

Brief description of action(s) taken towards implementation

progress

start

applicable

1.3. Entities should put in place programmes for

managing their environmental and social

In 2020, Nestlé SA introduced her net zero roadmap, with

footprints1. The programmes should reduce

commitment to halve GHG emissions by 2030 and achieve

greenhouse gas emissions, promote efficient

net zero by 2050. The roadmap also details global

use of water and energy, and improve waste

strategies for plastic waste management, regenerative

and construction management.

agriculture and improved operational efficiency.

Below are local examples of some programs geared

towards managing Nestlé Nigeria's environmental

footprints:

Greenhouse gas emission reduction: Generation of

electricity and steam using natural gas fuel - with less

CO2 effect.

Efficient use of water: Effective water recycling system for

water reuse purposes (For irrigation and cleaning of non-

production areas) to reduce water withdrawal.

Efficient use of energy: Use of CCHP (combined cooling,

heat, and power) systems for generating electricity and

use of economizer for steam boiler energy efficiency.

1.4. Entities should outline the minimum labour

Nestlé Nigeria fully supports the United Nations Global

and social standards they will apply in

Compact's (UNGC) guiding principles on human rights

managing their operations consistent with

and labour and aims to provide an example of good

good practice, such as the United Nations

human rights and labour practices throughout our

Declaration of

Human

Rights

and the

business activities. Nestlé Nigeria also complies with all

International Labour Organisation Charter.

applicable Nigerian Labor Laws.

1.5. Entities should

develop

and

promote

Nestlé Creates Shared Value for stakeholders in its

investment in community projects and

communities by investing in projects to improve livelihoods.

initiatives with the aim of contributing to the

Projects include:

sustainable development of their host

1. Rural development

communities.

2

Indicators

Completed

In

Yet to

Not

Brief description of action(s) taken towards implementation

progress

start

applicable

i.

Improving access to water and sanitation.

We provide over 14 million litres of clean

safe water to our communities daily. 16 new

WASH facilities were commissioned in the

past 3 years.

ii.

Improving

teaching

and

learning

environments in schools within our

communities

by renovating

classrooms,

providing WASH facilities, libraries and

playgrounds as needed.

2. Youth empowerment

i.

Technical Training program at the Nestlé

Technical Training Centers in Agbara and

Abaji

ii.

Community

scholarship

scheme for

secondary and tertiary education

1.6. Entities should articulate, in their sustainable

Nestlé's Responsible Sourcing Standard is shared with all

finance policies and procedures, ESG

vendors on registration. The policy covers Environmental

procurement

standards

for

suppliers,

and social care, Compliance, Human Rights, Safety and

contractors, and other third-party service

Health etc.

providers

1.7. Entities should monitor their service providers

Nestlé retains the right to audit the activities of service

to ensure compliance with the ESG

providers to ensure compliance and carries out spot

standards.

checks from time to time as required.

1.8. Entities should

regularly

conduct

internal

In 2022, an external audit of ESG practices was performed

reviews of the integrity and quality of ESG

by Ernst and Young.

practices and procedures for continuous

improvement.

External

audit

of ESG

practices and procedures may also be

undertaken.

1.9. Entities should set criteria for reporting their

Environmental Impact Assessments which cover several

ESG risk assessment processes on their

environmental risks areas are performed and reviewed

business operations and activities.

regularly.

3

Principle 2: Collaborative Partnership and Capacity Building

Regulated entities should collaborate with stakeholders to raise awareness on ESG issues, build capacity, manage risks, developinnovative solutions and promote widespread action across the Nigerian financial system.

Kindly disclose the implementation status of Principle 2 in your entity by ticking ( ) in the appropriate cells in the table below and offer a brief description of your efforts so far.

Indicators

Completed

In

Yet to

Not

Brief description of action(s) taken towards implementation

progress

start

applicable

2.1 Develop an ESG policy e.g.,

sustainable policy - to serve as a

The Nestlé Corporate Business Principles specifies the

tool and strategic framework to

foundation for Sustainability and Creating Shared Value

guide and support the entities in

the delivery of its sustainable

agenda.

2.2. Dedicate

Environmental

The Safety, Health and Environment (SHE) Department

Sustainable Office (ESO) to work

oversees, monitors and coordinates the implementation of

assiduously in enshrining in the

environment related policies across the organisation.

organization the workings of its

sustainable policies.

2.3. Develop structural mechanisms to

The company's structure for the implementation of the

guide the implementation of the

Sustainability Agenda Management team oversees.

structural policies and guidelines.

2.4. Have an

internal capacity

to

Same as 2.2 and 2.3

support the implementation

of

sustainable

policies

and

guidelines.

2.5. Engage and created the buy in of

Same as 2.2 and 2.3

key stakeholders to support the

implementation of the policies.

2.6. Develop

and

implement

the

Our Policy on Environmental Sustainability documents our

entity's sustainable strategy.

strategy in relation to sustainability.

4

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Nestlé Nigeria plc published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 16:25:30 UTC.