Nestlé has published its 2022 Annual Report alongside its Creating Shared Value and Sustainability (CSV) Report. For the first time, the reports provide an overview of the nutritional value of Nestlé's global portfolio.
The company says throughout the year it continued to deliver fast-paced innovations, advanced its digital capabilities and maintained focus on strategic portfolio management.
CEO Mark Schneider and chairman Paul Bulcke wrote in the report’s letter to shareholders that despite the challenges of the pandemic waning at the beginning of 2022, the invasion of Ukraine at the end of February changed the course of the year. Global supply chain issues proliferated, inflation became rampant, concerns over energy shortages took hold and food insecurity grew.
“We faced a choice this past year in how to react to these challenges. There was little handwringing as it was clear to us that we could not lose sight of our long-term strategy: we continued to invest in R&D, our brands and sustainability initiatives.
“Increased food insecurity only strengthened Nestlé's commitments to maintaining essential food supplies, providing affordable nutrition and advancing regenerative food systems,” said Schneider and Bulcke.
As part of its focus on 'Good for You', Nestlé says it is setting a new standard in corporate transparency by being the first company to report on the nutritional value of its entire global portfolio.
Nestlé has benchmarked its products against the Health Star Rating (HSR) system, with results showing that Nestlé products with an HSR rating of 3.5 stars and above, together with its specialised nutrition products, like infant or medical nutrition, account for close to 60 per cent of the company’s sales (excluding Nestlé’s pet care business).
The company has also committed to setting a global target for the healthier part of its portfolio. Nestlé says it will complement this with more stringent responsible marketing practices as well as nutrition education programs and services.
As part of its 'Good for the Planet' work, Nestlé further reduced greenhouse gas emissions to below its 2018 baseline.
The company says achieved this result while growing its business substantially. For example, it increased its use of renewable electricity last year and is on track to achieve 100% renewable electricity by 2025.
The company also released its second voluntary Climate Risk and Impact Report, ahead of Swiss regulatory requirements.
Nestlé says it has stayed the course yet again in 2022 by balancing its objectives, enabling the company to generate reliable, sustainable returns.
The full Annual Report contains Nestlé's Annual Review as well as its Corporate Governance & Compensation Reports and Financial Statements.
