Nestle S A : Bernstein 2021 ESG Conference - Sustainable Packaging presentation by Rob Cameron, Head of Public Affairs

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Nestlé's Vision for Packaging Sustainability

Our long-term vision

• • None of our packaging ends up in landfill or as litter

Our commitments for 2025

• • 100% of our packaging will be recyclable or reusable

• • We will reduce our use of virgin plastics by 33%

Our packaging sustainability journey

April 2018

• • Launched global commitment on recycling and reusable packaging for 2025

September 2019

• • Inaugurated Nestlé Institute of Packaging Sciences

January 2020

• • Pledged CHF 1.5 bn toward food-grade recycled plastics

• • Committed to reduce virgin plastic use by 1/3 by 2025

December 2020

• • Published Net Zero roadmap

Our need: Fit-for-purpose food-grade packaging

Delivering safe and nutritious food

Adapting to product and geography

Our sustainable packaging 5 pillar strategy

Packaging reduction /	Reusable / refillable	Materials innovation	Recycling and waste	Rethinking behaviors
elimination	packaging systems	for recycling and	management	of Nestlé, retail
composting	infrastructure	partners and
consumers

Pillar 1: Reducing our use of packaging material

Reducing packaging complexity

Increasing use of recycled content

•	Shrink films made of recycled material
•	Removing unnecessary plastic lids
•	Recycled paper for non-food contact
•	Eliminating plastic accessories
•	Bottles made from up to 100% recycled PET
•	Eliminating unnecessary plastic layers and films

Pillar 1: Reducing our use of plastic packaging

Eliminating bottle cap tear-offs

• • Removing plastic tear-offs covering bottle caps and necks on flexible bottles opening

• • In Egypt, Nestlé Pure Life water eliminated 240 metric tons of PVC annually

Removing unnecessary lids

• • Removing over-cap lids from food puree tubs eliminated close to 2,300 metric tons of plastic annually

• • Introduced the Incredipouch, single material pouch for the future of recycling

Pillar 2: Scaling different models of packaging-free delivery systems

• • Reusable containers

• • Refill systems

• • Single-dose dispensers

• • In-store dispensers

• • Bulk Home Refill Delivery

Pillar 2: Scaling reusable and refillable systems

Algramo: Bulk refill for Purina PetCareLOOP: Reusable packaging

•	Piloting bulk delivery of pet foods by tricycle	•	Offering foods in high quality refillable packaging
•	Running pilots with consumers in Santiago, Chile	•	Piloting products in dairy, coffee, waters and
petcare
•	Convenience for heavy and bulky dry pet foods
•	Engaging major retailers in the US, Canada and France
•	Reusable containers integrate RFID chips
•	Packaging shifts to a reusable resource

Pillar 3: Pioneering alternative materials to facilitate recycling

Finding opportunities for paperization and the transition to mono-material polymers

Pillar 3: Pioneering alternative packaging materials to facilitate recycling

Packaging paperization

Paperization of straws

•	Replacing plastic with paper	•	Transitioning straws from plastic to paper
•	Creating packaging fit for local waste infrastructure	•	First mover, collaborating to create new supplier
partnerships, technologies and manufacturing processes
•	Innovating for protection in hot and humid climates

Pillar 4: Supporting infrastructure that helps to shape a waste-free future

Investing in support of circular economyCollecting and educating: Project STOP

• • Supporting start-ups via CHF 250 m venture fund

• • Creating a market for food-grade recycled plastic by allocating up to CHF 1.5 bn in premiums

• • Exploring opportunities for investment in innovation

• • 12 countries, 12 Plastic Neutrality Roadmaps

• • Supporting development of recycled plastics supply chain and driving local empowerment and employment

• • Facilities in Lekok and Nguling; 32 tons per day capacity

Pillar 5: Rethinking behaviors: Operations, retail partners and consumers

Training teams on packaging sustainability Encouraging recycling behaviors

•	Rolling out a sustainable packaging education and	•	Products designed to engage consumers in recycling and
training program to over 290 000 employees	reuse
•	Accelerating behavior change and helping the company	•	Collection points and mail in bags in multiple markets
meet its packaging objectives	(LOOP partnership, Retail sites, Nespresso)

Nestlé Institute of Packaging Science

• • 50 scientists conducting cutting edge research for safety and performance of new materials

• • Refillables, redesigning multi-material to mono-material, high-performance paper barriers and recycled content

• • Part of larger ecosystem of our global R&D network

Technology: Building a vibrant ecosystem for packaging innovation

Start-ups	Material suppliers	Universities
and entrepreneurs	and converters	and research institutes

Key takeaways

• • Investing in sustainable packaging to future-proof our business

• • Taking action with clear plans and milestones

• • Delivering on our vision through a multi-pillar approach

• • Collaborating to drive progress across the entire packaging ecosystem