Nestle SA

To maintain the highest levels of integrity in our advocacy activities, we apply a robust approach as set out in our own Policy on Transparent Interactions with Public Authorities. We also pay close attention to external guidelines, including the Global Standard on Responsible Corporate Climate Lobbying. [...] Nestlé's advocacy priorities are transparently outlined in our Net Zero Roadmap, supporting ambitious government policies and private-sector leadership to ensure all sectors move more quickly towards rapid and sustained reductions in carbon emissions aligned with the goal of the Paris Agreement. [...] On all matters, Nestlé's advocacy is governed by the principles and guidance of Nestlé's Policy on Transparent Interactions with Public Authorities. It is designed to ensure that all interactions with public authorities on behalf of Nestlé are conducted in accordance with applicable national and local laws and regulations, established corporate business principles and company internal rules. It also requires that these activities are conducted transparently and professionally, and that relevant Nestlé employees and authorized third parties assigned to conduct lobbying activities regulated by law have a clear understanding of what transparent and responsible lobbying is. The Executive Vice President General Counsel, Corporate Governance and Compliance and the Deputy Executive Vice President Chief Communications Officer co-own this policy. Both position holders sit on Nestlé S.A.'s Executive Board and on the company's ESG & Sustainability Council. As such, they maintain a comprehensive overview of climate advocacy activities at Nestlé and formally approve this Nestlé Climate Policy Engagement Review. [...] Climate advocacy is part of the scope of the ESG & Sustainability Council and is overseen by its members which include 10 Executive Board members (see 4.1 Sustainability Governance). The ESG & Sustainability Council is supported by an internal Advocacy Coordination Group (ACG) which is sponsored by the Executive Vice President Group General Counsel and chaired by the Vice President Global Public Affairs. The purpose of this group is to ensure that Nestlé's global advocacy efforts across different topics are focused, consistent, informed, aligned and mutually supportive. [...] The global bodies in charge of defining climate advocacy priorities and activities at Nestlé provide strategic guidance and support to Nestlé's 5 geographical Zones via Zones Advocacy Committees. These define action plans with Nestlé Markets and business categories. Based on their guidance, Nestlé Markets define and implement climate advocacy activities in their local context. [...] To manage the local execution of climate advocacy activities at Nestlé, Market Heads must ensure compliance with the Nestlé Policy on Transparent Interactions with Public Authorities through delegation to Market Corporate Communication/Public Affairs/ Corporate & Government Affairs, and Legal & Compliance functions, all reporting to the Market Head. [...] If we identify a misalignment with an industry association position, we evaluate the importance of the gap to determine suitable required actions. This includes clearly communicating our concerns to help address the gap. Several steps can be taken depending on the degree of misalignment, starting with expressing concerns verbally. We will seek to ensure industry associations address gaps within a reasonable timeframe (e.g. 12 months). Depending on the situation, Nestlé can implement one or more of the following actions: • verbally repeat concerns with the association's position (e.g. in board meetings); • make a clear public statement regarding the misalignment; • request the industry association refrains from engaging on misaligned issues; • and/or suspension or discontinuation of membership. The consolidated feedback and results of our biennial review are outlined in the Industry Associations Review (Section 7) of this report.

The Board is responsible for Nestlé's strategy, organization and oversight of the Company's ESG/Sustainability agenda including climate and biodiversity. The Board's Sustainability Committee reviews Nestlé's environmental, social and governance (ESG) agenda and progress against our internal targets including those for climate and biodiversity. It has oversight over the content of the Company's non-financial reporting. In 2022, the Sustainability Committee reviewed Nestlé's regenerative agriculture approach and program, with a deep dive on dairy. The adoption of regenerative agriculture is a cornerstone of Nestlé's net zero ambition. The Audit Committee is informed of the content of our non-financial reporting and reviews the limited assurance process of selected assured metrics. It has oversight over the accuracy of the Company's financial and non-financial reporting according to the applicable rules. This split reflects the importance of sustainability in Nestlé's corporate governance structure and allows Board members to dedicate time and focus to these topics. The Sustainability Committee and the Audit Committee each meet at least four times per year. [...] Disclosure of our advocacy practices is important to enhance transparency and trust. That is why we welcome the development of the Global Standard on Climate Responsible Lobbying and use it to guide our annual Nestlé Climate Advocacy Industry Associations Review (pdf, 4Mb) disclosure. This includes: Our advocacy priorities on climate: 1. Encouraging regenerative forms of agricultural production 2. Helping to end deforestation risk and supporting forest positive restoration 3. Enabling more sustainable logistics and transportation 4. Supporting the rollout of renewable electricity and energy 5. Improving consumer communications and marketing claims 6. Advocating for higher ambition from countries and companies, and fair and clear rules for target setting and reporting progress [...] Our process for addressing misalignments: According to our Policy on Transparent Interactions with Public Authorities, "if Nestlé does not agree with an agenda or position of e.g. an industry or trade association, or industry alliance or any of its member companies, Nestlé should communicate transparently its position to the industry organization. Nestlé reserves its right to act as an individual company and engage independently with public authorities. In this context, Nestlé will use best efforts to prevent the misrepresentation of its positions by the industry organization. To ensure adherence to this policy, we undertook a comprehensive assessment to identify whether there may be material misalignments between our climate-related positions and some industry association positions or activities. This assessment helped identify trends and generated specific recommendations, in line with our Policy on Transparent Interactions with Public Authorities.

Our Nomination and Sustainability Committee, chaired by our Lead Independent Director, evaluates Board composition, structure and succession planning. It assesses candidates for nomination to the Board. Additionally, it reviews all aspects of our environmental and social sustainability. It oversees our response to climate change, our human rights due diligence program and our human capital management at Board level including our strategies for diversity and inclusion. In 2020 it helped develop our new Commitments framework, which will be rolled out in 2021.

Governance of our public actions and commitments to act on climate change sits at the highest level of our company. Our governance of climate change is evolving in recognition of its growing significance in society and our increasing understanding of its impact on our business. [...] At Board level, as of the Annual General Meeting 2021, Nestlé is splitting its existing Nomination and Sustainability Committee into a separate Nomination Committee and a focused Sustainability Committee. This reflects the importance of sustainability in Nestlé's corporate governance and allows Board members to dedicate more time and focus on each of these important topics. The Sustainability Committee will provide strategic guidance on climate-related matters and will report to the full Board of Directors, which has overall oversight. The Sustainability Committee of the Board will meet at least three times per year. [...] An Environmental, Social and Governance (ESG) Sustainability Council has been established at the Executive Board level. The ESG Sustainability Council provides governance, strategic leadership and execution support. It drives implementation of Nestlé's sustainability strategy, including implementation of our 2050 net zero roadmap, ensuring focus and alignment on execution. The ESG Sustainability Council is chaired by the Group's Executive Vice President (EVP) Head of Strategic Business Units and Marketing and Sales. [...] The ESG Sustainability Council pulls together the geographical business scopes led by our three EVP Zone CEOs and functional leadership at the Executive Board level. It meets every month and reports progress to the full Executive Board monthly. [...] To drive implementation and execution of strategies at operational level, an ESG Strategy and Deployment Unit was also created. This new unit integrates external developments and defines our sustainability strategies in support of Nestlé's ESG commitments. It coordinates our ESG sustainability activities and has oversight of internal ESG sustainability data gathering and external disclosures. The ESG Strategy and Deployment Unit reports to the EVP Head of Operations. [...] To ensure focused implementation of Nestlé's sustainability strategy, ESG-related KPIs are included in the 2021 Short-Term Bonus plan of the Executive Board.

###### Board-level governance

The Board is responsible for Nestlé's strategy, organization and oversight of climate-related matters and monitors progress toward our climate change goals and targets.

The Board's Sustainability Committee reviews Nestlé's environmental, social and governance (ESG) agenda and progress against our internal targets in sustainability and how its long-term strategy relates to its ability to create shared value. The Audit Committee is informed of the content of our non-financial reporting and reviews the limited assurance process of selected assured metrics. This split reflects the importance of sustainability in Nestlé's corporate governance structure and allows Board members to dedicate time and focus to these topics. The Sustainability Committee and the Audit Committee each meet at least three times per year.

Management-level governance

Nestlé's Executive Board is responsible for the overall execution of the sustainability strategy, which covers climate-related issues and includes the progress toward our climate change goals and targets. To ensure focused implementation of Nestlé's sustainability strategy, selected ESG-related key performance indicators (KPIs) are included in the Short-Term Bonus plan of the Executive Board (15% of the target). They are set annually by the Compensation Committee and reflect selected performance measures from the Company's ESG/Sustainability agenda. For Climate in 2022 they relate to deforestation, plastic packaging designed for recycling and reduction of water use in our factories.

The Executive Board is supported by the ESG and Sustainability Council. The Council provides governance, strategic leadership and execution guidance, makes recommendations to the Executive Board and takes decisions on behalf of the Executive Board within its delegated authority on climate-related issues and other relevant ESG matters. It coordinates the ESG sustainability-relevant activities and has oversight of internal ESG sustainability data gathering and external disclosures.

The ESG and Sustainability Council advises the Executive Board on making informed and science-based decisions and it drives focused and aligned actions to deliver on Nestlé's ESG targets, including Nestlé's Net Zero Roadmap. It is chaired by the Group's Executive Vice President (EVP) Head of Strategic Business Units and Marketing and Sales. The ESG and Sustainability Council coordinates between the Zones, Globally Managed Businesses and functions represented at the Executive Board level. It meets and reports progress to the full Executive Board monthly.

At an operational level, the ESG Strategy and Deployment Unit drives implementation and execution of strategies in support of Nestlé's sustainability commitments, with input from a cross-functional team of sustainability experts. It coordinates sustainability-relevant activities and has oversight of internal sustainability data gathering and external disclosures. It also provides advice to the ESG and Sustainability Council.

Governance of our public actions and commitments to act on climate change sits at the highest level of our company. Our governance of climate change is evolving in recognition of its growing significance in society and our increasing understanding of its impact on our business. [...] At Board level, as of the Annual General Meeting 2021, Nestlé is splitting its existing Nomination and Sustainability Committee into a separate Nomination Committee and a focused Sustainability Committee. This reflects the importance of sustainability in Nestlé's corporate governance and allows Board members to dedicate more time and focus on each of these important topics. The Sustainability Committee will provide strategic guidance on climate-related matters and will report to the full Board of Directors, which has overall oversight. The Sustainability Committee of the Board will meet at least three times per year. [...] An Environmental, Social and Governance (ESG) Sustainability Council has been established at the Executive Board level. The ESG Sustainability Council provides governance, strategic leadership and execution support. It drives implementation of Nestlé's sustainability strategy, including implementation of our 2050 net zero roadmap, ensuring focus and alignment on execution. The ESG Sustainability Council is chaired by the Group's Executive Vice President (EVP) Head of Strategic Business Units and Marketing and Sales. [...] The ESG Sustainability Council pulls together the geographical business scopes led by our three EVP Zone CEOs and functional leadership at the Executive Board level. It meets every month and reports progress to the full Executive Board monthly. [...] To drive implementation and execution of strategies at operational level, an ESG Strategy and Deployment Unit was also created. This new unit integrates external developments and defines our sustainability strategies in support of Nestlé's ESG commitments. It coordinates our ESG sustainability activities and has oversight of internal ESG sustainability data gathering and external disclosures. The ESG Strategy and Deployment Unit reports to the EVP Head of Operations. [...] To ensure focused implementation of Nestlé's sustainability strategy, ESG-related KPIs are included in the 2021 Short-Term Bonus plan of the Executive Board.

All of Nestlé's advocacy activities on climate align with the ambitions of the Paris Agreement. This includes our work related to multi-stakeholder and business only coalitions and trade associations. Nestlé S.A. has developed climate legislative advocacy guidance on climate change (attached) for all our local and regional teams. The document underlines our commitment to carrying out climate advocacy activities in line with the Paris Agreement, whether globally or locally. We also apply our Policy on Transparent Interactions with Public Authorities (pdf, 2Mb). Disclosure of our advocacy practices is important to enhance transparency and trust, we therefore make publicly available: 1. Our advocacy priorities on climate 2. A disclosure of Nestlé S. A.'s memberships of private sector-led and multi-stakeholder coalitions related to these priorities 3. Nestlé's climate legislative advocacy guidance 4. Links to other public disclosures of Nestlé's advocacy activities 5. Examples of our global and regional advocacy activities Our climate advocacy priorities are: 1) clear and fair rules for Natural Climate Solutions (insetting), Carbon Market & Pricing and offsetting, Disclosure & Reporting, and Environmental Claims); 2) Policies to transform Agriculture, Energy, Logistics, and Packaging. Each Climate Advocacy Priority is led by one cross-functional working group, responsible for defining the corporate positions and strategies on the topic, validated by a Climate Advocacy Group at the global level. Implementation of these strategies is led by these working groups at global and regional level and by the local businesses, at country level.

Assessing our involvement in industry and trade organizations

We regularly review our involvement in industry and trade organizations to assess the relevance of our participation to our strategy and the achievements delivered.

The decision to resign from an industry organization is informed by several considerations, including when:

* We are regularly in opposition with the positions and/or agendas of the organization (this includes inappropriate lobbying practices)
* The organization has not delivered the outcomes expected over many years
* Weak governance is putting Nestlé's reputation at risk
* The evolution of the membership of the organization is not in alignment with our agenda, values and principles [...] Responsible lobbying framework

We look for continuous improvement in all that we do. It is in this spirit that we engage with Carnstone on their Responsible Lobbying Framework (pdf, 10Mb). Our policies, management systems and disclosure are also assessed by the Access to Nutrition Initiative (ATNI), against the Responsible Lobbying Framework.

We welcome this assessment as it helped us further understand our stakeholders' expectations and identify opportunities for strengthening our approach. We encourage other members of the industry and stakeholders (including civil society organizations) to implement the principles of the Responsible Lobbying Framework.

###### Introduction Governance Strategy and risk management Assessment of resilience Metrics and targets Summary Nestlé s TCFD Report 2021 7

### Advocating for change

###### We need a concerted effort by the public and private sectors together to radically decarbonize economies. This is essential for avoiding the worst potential consequences of climate change and to safeguard our collective future.

External advocacy forms a critical part of our Net Zero Roadmap, helping to create the right framework conditions for both our own and broader societal efforts to reduce emissions and mitigate risks.

Nestlé participates in a side event discussion at COP 26.

#### Our advocacy priorities

###### The right policy environment not only supports the delivery and potential acceleration of emissions reductions but also helps build broader resilience to climate-related impacts.

Reflecting our support for the most ambitious aim of the Paris Agreement, Nestlé focuses both on specific operational advocacy priorities, such as helping ensure clarity on carbon claims, as well as broader macro-level challenges like reforming agriculture policy.

All of Nestlé's advocacy activities on climate align with the ambitions of the Paris Agreement – namely the achievement of a 1.5°C-aligned decarbonization pathway.

###### Our advocacy priorities informed our engagement around the COP26 climate summit in Glasgow in 2021. We welcome the progress made at these negotiations on reducing potential temperature increases, particularly the recognition of the need to safeguard nature and improve livelihoods through a just transition.

However, we know that much more needs to be done in terms both of ambition and actual implementation of policy for a 1.5°C Paris Agreement-aligned pathway to remain within reach. We anticipate further momentum on climate change policy in 2022. Nestlé aims to play an active role in the build-up to and during the COP27 discussions in Egypt.

Further details can be found in our Creating Shared Value and Sustainability Report 2021.

###### Introduction Governance Strategy and risk management Assessment of resilience Metrics and targets Summary Nestlé s TCFD Report 2021 7

### Advocating for change

###### We need a concerted effort by the public and private sectors together to radically decarbonize economies. This is essential for avoiding the worst potential consequences of climate change and to safeguard our collective future.

External advocacy forms a critical part of our Net Zero Roadmap, helping to create the right framework conditions for both our own and broader societal efforts to reduce emissions and mitigate risks.

Nestlé participates in a side event discussion at COP 26.

#### Our advocacy priorities

###### The right policy environment not only supports the delivery and potential acceleration of emissions reductions but also helps build broader resilience to climate-related impacts.

Reflecting our support for the most ambitious aim of the Paris Agreement, Nestlé focuses both on specific operational advocacy priorities, such as helping ensure clarity on carbon claims, as well as broader macro-level challenges like reforming agriculture policy.

All of Nestlé's advocacy activities on climate align with the ambitions of the Paris Agreement – namely the achievement of a 1.5°C-aligned decarbonization pathway.

###### Our advocacy priorities informed our engagement around the COP26 climate summit in Glasgow in 2021. We welcome the progress made at these negotiations on reducing potential temperature increases, particularly the recognition of the need to safeguard nature and improve livelihoods through a just transition.

However, we know that much more needs to be done in terms both of ambition and actual implementation of policy for a 1.5°C Paris Agreement-aligned pathway to remain within reach. We anticipate further momentum on climate change policy in 2022. Nestlé aims to play an active role in the build-up to and during the COP27 discussions in Egypt.

Further details can be found in our Creating Shared Value and Sustainability Report 2021.

Our ESG and Sustainability Council oversees our sustainability strategy, advises the Nestlé Executive Board on how to make informed and science-based decisions, and helps to accelerate and standardize decision-making on a global level. It has the following workstreams: 2050 Net Zero, Sustainable Packaging, Water, Sustainable Sourcing and Communications and Advocacy.

To ensure that all of our direct and indirect activities that influence policy are consistent with our overall climate change strategy, we have established the governance of \"Nestlé in society and CSV (Creating Shared Value)\". Within our general corporate governance structure, the Chairman, the Chief Executive Officer and other members of the Executive Board are ultimately responsible for the supervision and management of our role in society and CSV, supported by a number of other governance bodies, including our Operations Sustainability Council, Issues Round Table, Water Task Force, Audit Committee, Risk Management Committee, R&D Council for Sustainability and Nutrition, and the Group Compliance Committee. **CSV Alignment Board** We have also established a quarterly CSV Alignment Board, chaired by our Chief Executive Officer, Paul Bulcke. This board is an umbrella organisation that oversees the strategic implementation of Creating Shared Value across all our businesses. It leads the development and evolution of our CSV and sustainability objectives and strategies at Group level including climate change, while reverting to the Executive Board for input and confirmation. It also liaises with and ensures coherence with our CSV Advisory Board, which gives external input to our activities. **CSV Advisory Board** The Nestlé Creating Shared Value Advisory Board, created in 2009, brings together external experts in corporate strategy, nutrition, water and rural development and climate change to assess our progress and discuss CSV opportunities and challenges. The CSV Advisory Board currently has 12 members. They are appointed for three years, and meet annually. In addition to advising the Chairman and CEO on our CSV agenda, the Board members also participate in our annual CSV Global Forum and select the winner of the Nestlé Prize in Creating Shared Value.

Nestlé announced in September 2019 its ambition to achieve zero net greenhouse gas emissions by 2050. It embraces the most ambitious aim of the Paris Agreement, to limit global temperature rise to 1.5°C. Over the past four years, Nestlé has aligned its objectives with science-based targets to keep the temperature increase below 2°C. In 2019, Nestlé signed the UN Global Compact Business Ambition for 1.5°C pledge, and will now align with the science-based targets to keep temperature to the 1.5°C pathway. Limiting global warming to 1.5°C requires transformational change across industries, governments and society as a whole. Nestlé will continue its advocacy for government policies to ensure all sectors move faster towards 1.5°C. Supportive legislation could help to reduce barriers to expanding renewable energy markets, incentivize innovation in the agriculture and forestry sectors to capture more carbon, and help to establish carbon pricing.

In 2020, the Nomination and Sustainability Committee of the Board of Directors of Nestlé provided strategic guidance on climate-related matters with reporting to the full Board of Directors, which had overall oversight. The Nomination and Sustainability Committee oversaw all aspects of our environmental, social and governance performance. It reviewed reports and gave advice on measures which shall ensure the long-term sustainability of the Company in its economic, social and environmental dimension (including its response to climate change and related reporting), and monitored the Group's performance against selected external sustainability indexes. It reviewed the Company's commitments on environmental, social and governance aspects as well as the Creating Shared Value and Sustainability Report 2020, and discussed periodically how other material non-financial risks affect the Company's financial performance and how its long-term strategy relates to its ability to create shared value. At Board level, as of the Annual General Meeting 2021, Nestlé is splitting its existing Nomination and Sustainability Committee into a separate Nomination Committee and a focused Sustainability Committee. This reflects the importance of sustainability in Nestlé's corporate governance and allows Board members to dedicate more time and focus on each of these important topics. The Sustainability Committee provides strategic guidance on climate-related matters and reports to the full Board of Directors, which has overall oversight. The Sustainability Committee of the Board meets at least three times per year. It reviews the Company's commitments on environmental, social and governance aspects as well as the annual Creating Shared Value report and discusses periodically how other material non-financial risks affect the Company's financial performance and how its long-term strategy relates to its ability to create shared value. An Environmental, Social and Governance (ESG) Sustainability Council (ESG Sustainability Council) has been established at the Executive Board level. The ESG Sustainability Council provides governance, strategic leadership and execution support. It drives implementation of Nestlé's sustainability strategy, including implementation of our 2050 Net Zero roadmap, ensuring focus and alignment on execution." [...] "In 2020, the Nomination and Sustainability Committee oversaw environment, including climate change and the climate roadmap supporting the Group's 2050 Net-Zero ambition. It met at least twice a year and as frequently as necessary to fulfill its task. The Committee Chairman provided a detailed report of its meetings to the full Board of Directors at each meeting in a dedicated Chairman's session. The Executive Board's oversight of climate-related matters covered both the risk-related and GHG reduction strategies. The Chief Financial Officer was responsible for the financial risk-related aspects and the EVP Global Head of Operations had oversight of the GHG reduction. Climate is integrated into the company's enterprise risk management (ERM) process and reviewed by the Board of Directors as part of the Board's annual risk assessment. The setting of targets and public commitments on climate-related matters forms part of our comprehensive Creating Shared Value approach to business strategy. It leads the strategic development and implementation of Creating Shared Value across our business, including for all commitments on the environment, objectives and strategies. In both cases of risk management and climate targets, the Executive Board reviewed and guided the strategy, policies and major plans of action including major capital expenditure, as well as oversight of the targets and public commitments. The annual budgeting and guiding the business plans was undertaken by individual Executive Board members (CFO, EVP Global Head of Operations). As of January 2021, the ESG Sustainability Council meets every month and reports progress to the full Executive Board monthly. It coordinates the ESG sustainability activities and has oversight of internal ESG sustainability data gathering and external disclosures. To ensure focused implementation of Nestlé's sustainability strategy, ESG-related KPIs are included in the 2021 Short-Term Bonus plan of the Executive Board.

All our climate change lobbying activities align with the goal of restricting global temperature increases to 1.5⁰C above pre-industrial levels and this translates into specific advocacy efforts at global, regional and country levels. We promote the same approach in the activities of trade associations and other types of private sector- led coalitions where Nestlé is a member at global, regional and local levels. In our Nestlé Climate Advocacy Industry Associations Review, we transparently publish an assessment of our main industry associations' positions and advocacy activities on climate matters and take action in case of misalignments, as per the Global Standard on Responsible Climate Lobbying.

### Governance for this issue

###### Nestlé Executive Board

Approves this action plan.

###### Nestlé ESG and Sustainability Council

Provides strategic leadership and execution support for this topic.

###### Nestlé Advocacy Coordination Group

Provides strategic leadership and execution on the engagement and advocacy strategy related to this action plan.

###### Nestlé ESG Climate and Sustainable Sourcing Workstream

Is responsible for the implementation of the action plan.

###### Nestlé Human Rights Community

Leads the human rights agenda throughout the company. It coordinates the implementation of Nestlé's Human Rights Framework and Roadmap throughout the value chain. Finally, it monitors the implementation of the framework and roadmap, and the efficiency of the program.

###### Nestlé Markets

Support the implementation of this action plan in relation to our country operations, in alignment with the global team.

###### Forest Positive External Advisory Council

Was formed in 2021 to help Nestlé ensure the sound development of our Forest Positive strategy. It currently comprises eight external members, whose expertise includes agricultural supply chains and land use change; landscape initiatives; forestry; plant ecology; and land tenure rights.

###### Governance\n\n###### Our governance and implementation structure\n\n###### Sound governance is essential to create shared value, meet our environmental and social commitments and fulfill our due diligence and reporting obligations.\n\nNestlé's ESG & Sustainability Strategy is key to our decision-making. To ensure we meet our aim of long- term, sustainable value creation, the strategy is developed and delivered by our Executive Board and is approved and regularly reviewed by the Board of Directors and its Sustainability Committee. The Sustainability Committee Charter can be viewed here.\n\nThe Board of Directors approved the 2023 Nestlé Creating Shared Value and Sustainability Report to be issued on February 22, 2024, subject to approval at the Annual General Meeting on April 18, 2024.\n\nExecutive Board remuneration is linked to ESG indicators. In 2021, we introduced ESG-related key performance indicators (KPIs) to the Short-Term Incentive Plan for 15% of its grant value. In 2023, they relate to affordable nutrition with\n\n###### micronutrients, the reduction of greenhouse gas (GHG) emissions, plastic packaging designed for recycling, the reduction of water use in factories, and management positions held by women. Also in 2023, an ESG-related KPI was added as a fourth performance metric in the Long-Term Incentive Plan for 20% of its grant value. It relates to the reduction of GHG emissions. Full details of Board-level remuneration and bonuses are available in our Compensation Report.\n\nThe ESG & Sustainability Council provides strategic leadership and drives the implementation of Nestlé's ESG & Sustainability Strategy. The Council is chaired by our Executive Vice President (EVP), Head of Strategic Business Units and Marketing and Sales. The Council addresses the following topics: 2050 net zero, Sustainable Packaging, Water, Responsible Sourcing, Upstream Human Rights, Communications, Advocacy, and Systems and Reporting. The Council meets every month and regularly reports to the full Executive Board. The structure helps to accelerate and standardize decision- making on a global level.\n\n###### During 2023, the Council met 12 times. There was a particular focus on how the Nestlé brands were delivering on the ESG & Sustainability Strategy and valorizing it through brand communication. The Council also oversaw the implementation of the new reporting obligations, including Swiss Non-Financial Reporting Obligations (articles 964a to 964c and articles 964j to 964l of the Swiss Code of Obligations) which require specific disclosures on ESG risks, policies, mitigation measures and outcomes, summarized in the appendix of this report.\n\nWe monitor our ESG & Sustainability Strategy performance KPIs using an internal dashboard. For the full list of KPIs, see pages 79 to 89 in the appendix of this report.\n\nPerformance data are generated every quarter and progress is reviewed by the ESG & Sustainability Council. For full details of our governance structure, see our latest Corporate Governance Report.\n\n###### The ESG & Sustainability Council provides strategic leadership and execution support, and drives the implementation of Nestlé's ESG & Sustainability Strategy, including our 2050 Net Zero Roadmap, ensuring focus and alignment.\n\nScope:\n– 2050 net zero – Sustainable Packaging – Water – Responsible Sourcing – Upstream Human Rights – Communications – Advocacy – Systems and Reporting\n\n###### EXECUTIVE BOARD\n\n###### The Company's Executive Board is responsible for the execution of the Company's ESG & Sustainability Strategy, which includes ensuring compliance with mandatory reporting obligations.

Nestlé believes that transparent and constructive engagement is a vital part of policy decision-making process and, as such, communicates its advocacy priorities and objectives transparently. Nestlé also believes in open dialogue, supports multi-stakeholders actions and adopts responsible business practices. This approach applies across all of our material issues and our latest engagements can be found throughout our Creating Shared Value and Sustainability Report 2020. [...] We conduct regular operational reviews to ensure we are achieving our company public policy and advocacy goals and adjust our approach accordingly. [...] Under Section 10 of the Nestlé Code of Business Conduct, political contributions are not allowed. The only exception is the parent company in its home country, Switzerland, where minor contributions are made to political parties' secretariats to support the economic conditions and democratic structure in Switzerland. In 2020, the total of such payments for the functioning of party secretariats (no payments for campaigns) was CHF 210 000.

##### Advocating for change

###### Advisory

Throughout the year, we engage regularly with a wide range of stakeholders on ESG matters. This includes consulting our CSV Council, an external advisory council. The council provides advice to the Executive Board and helps ensure the sound development of Nestlé's long-term sustainability strategy and its positive social and economic impact.

In 2022, we continued to organize virtual roundtable events to gain external perspectives from sustainability experts. For example, before launching The Nescafé Plan 2030, we held a session with key opinion leaders to gather feedback and refine the details. We carried out a similar exercise for Nescafé's Dolce Gusto's new Neo home compostable range to gather input on how to communicate the benefits of the new capsule system without overclaiming.

A concerted effort by the public and private sectors together is necessary to radically decarbonize economies. This is essential for avoiding the worst potential consequences of climate change and to safeguard our collective future.

External advocacy forms a critical part of our Net Zero Roadmap and helps to create the right framework conditions for both our own and broader societal efforts to reduce emissions and mitigate climate-related risks.

###### Our advocacy priorities

We engage in climate-related advocacy to encourage government policies and private sector leadership that enable rapid and sustained reductions in greenhouse gas (GHG) emissions.

There are six key areas for our advocacy activities, designed to support delivery of most emissions savings necessary to hit our targets. These are (1) encouraging more regenerative forms of agricultural production, (2) ending deforestation risk and supporting forest positive restoration, (3) enabling more sustainable logistics, (4) supporting the rollout of renewable electricity and energy, (5) improving consumer communications and claims, and (6) advocating for higher ambitions from countries and companies and fair and clear rules for target setting and reporting progress.

Our advocacy priorities informed our engagement around the COP27 discussions in Egypt in 2022. We welcome the progress made on how best to adapt to the consequences of climate change. We also recognize there is much more work needed to fully realize the potential of food systems to help address climate change and related impacts, including biodiversity loss.

Further details can be found in our Creating Shared Value and Sustainability Report 2022.

At Nestlé, we support progressive climate action and policies that align with the Paris Agreement and the 1.5-degree pathway, and we want to be a positive change agent helping countries meet their climate targets and identify ways of going beyond existing plans.

We are convinced that we cannot achieve our ambitions on climate if they are not supported by the right guiding standards and public policies. That is why at Nestlé we have identified the need to advocate for critical Rules and Policies for climate, which we call Climate Advocacy Priorities. These are: 1) clear and fair rules for Natural Climate Solutions (insetting), Carbon Market & Pricing and offsetting, Disclosure & Reporting, and Environmental Claims); and 2) Policies to transform Agriculture, Energy, Logistics, and Packaging. Each Climate Advocacy Priority is led by one crossfunctional working group, responsible for defining the corporate positions and strategies on the topic, validated by a Climate Advocacy Group at the global level. Implementation of these strategies is led by these working groups at global and regional level and by the local businesses, at country level.

All Nestlé positions on our Climate Advocacy Priorities are in alignment with the aims of the Paris Agreement and, therefore, in line with the preferred 1.5-degree pathway and the Nestlé Net Zero Roadmap. This approach should extend to the activities of trade associations or other types of private sector led coalitions where Nestlé is a member at global, regional and local levels.

**Do you engage with policy makers to encourage further action on mitigation and/or adaptation?**

Yes

**Please explain (i) the engagement process and (ii) actions you are advocating**

We engage with policy makers to encourage further action on mitigation and adaptation
**Topic: Climate change mitigation and adaptation**
**i) Engagement method**
Being part of leading sustainability organizations dealing with climate change and participating in trade associations. We are a partner of the United Nations Private Sector Initiative on climate change adaptation. We participate of The Prince of Wales" Corporate Leaders Group on Climate Change and continue to be a strategic partner of this programme encouraging government and civil society to understand and address critical issues such as climate change. José Lopez is a member of the advisory board of the University of Cambridge Programme for Sustainability Leadership. The method is to engage with key international policy making fora, in particular through the Rio +20 process.
**ii) Nature of engagement**
Through seminars, working groups, providing case studies, experiences and other initiatives. Voluntary.
**iii) Actions advocated**
As part of the Prince of Wales" Corporate Leaders Group on Climate Change we encourage governments to undertake a variety of actions, recognising their responsibility for climate change and respective capabilities to respond, including: international collaboration, effective market mechanisms, financing the transition for low carbon and climate resilient development, incentivising innovation of new technology and skills and processes, encouraging energy and resource efficiency to reduce GHG emissions, and integrating adaptation and risk reduction.
We share information about our adaptation activities which helps stakeholders improve their understanding and assessment of impacts, vulnerability and adaptation to climate change.
**iv) Impact of those actions**
Positive: The UN initiative was launched in Durham 17th COP and case studies has been added in the database.
More than 400 signatories have endorsed the 2°C Challenge Communiqué to call on governments to take action to ensure a successful transition to green growth and a climate resilient economy.

**Topic: Assessment of the environmental performance of products and organisations including GHG emissions and their communication to consumers**
**i) Engagement method**
We are co-chairing, together with the European Commission (EC), the European Food Sustainable Consumption and Production (SCP) Roundtable and we also actively participate in the UNEP FAO Agrifood Task Force to advocate in this topic. We chair the Food Drink Europe Environmental Sustainability Committee.
We are participating in a national initiative, led by the French Ministry of Ecology and Sustainable Development, to communicate with French consumers about GHG emissions, particularly in relation to products such as Vittel, Nescafé and Nespresso.
We engage with the EC consultation on SCP. In China, authorities plan to establish a national standard on product environmental performnce (e.g. GHG) in which we participate.
**ii) Nature of engagement**
Directly as a company. Voluntary approach by providing feedback on public consultations on proposed policies and legislation. Nestlé is actively involved in consultation processes and provide our comments and recommendations on SCP (i.e Europe, China, Thailand).
**iii) Actions advocated**
To favour the development of an harmonized assessment methodology which has positive effects on tackling climate change at EU level.
To define robust criteria for the provision of comprehensive environmental information including GHG emissions, water & energy use and biodiversity. This helps getting better information and understanding on climate change and helps therefore addressing the negative consequences of climate change.
We advocate for harmonised and scientifically reliable methodology for food and drink products as well as suitable communication channels for consumers and other stakeholders.
**iv) Impact of those actions**
Positive: French government is considering a legislation based on a comprehensive set of indicators and the European Food SCP Roundtable launched a communication environmental performance tool.

**Topic: Further actions on reduction on GHG emissions, combat deforestation and use of natural refrigerants**
**i) Engagement method**
We are an active member of the Consumer Goods Forum (CGF) Sustainability Steering Committee and trade association.
**ii) Nature of engagement**
We work with governments on the broader global effort to tackle deforestation, and use its influence to support funding mechanisms and other practical schemes that will assist countries and local communities to conserve their natural assets. Voluntary
**iii) Actions advocated**
We share the CGF commitment to global zero-net deforestation by 2020.
Nestlé fully endorses CFG pledge to "take action to mobilise resources within our respective businesses to begin phasing out HFC refrigerants as of 2015 and replace them with non-HFC refrigerants where these are legally allowed and available for new purchases of point-of-sale units and large refrigeration installations".
**iv) Impact Positive: We have phase out 90% of refrigerants with high global warming.

To ensure that all of our direct and indirect activities that influence policy are consistent with our overall climate change strategy, we have established the governance of \"Nestlé in society and CSV (Creating Shared Value)\". Within our general corporate governance structure, the Chairman, the Chief Executive Officer and other members of the Executive Board are ultimately responsible for the supervision and management of our role in society and CSV, supported by a number of other governance bodies, including our Operations Sustainability Council, Issues Round Table, Water Task Force, Audit Committee, Risk Management Committee, R&D Council for Sustainability and Nutrition, and the Group Compliance Committee. [...] We have also established a quarterly Nestlé In Society Alignment Board, chaired by our Chief Executive Officer, Paul Bulcke. This board is an umbrella organisation that oversees the strategic implementation of Creating Shared Value across all our businesses. It leads the development and evolution of our CSV and sustainability objectives and strategies at Group level including climate change, while reverting to the Executive Board for input and confirmation. It also liaises with and ensures coherence with our CSV Council, which gives external input to our activities. It helps ensure consistency with our overall climate change strategy and foster alignment between Nestlé activities that influence policy. [...] The Nestlé Creating Shared Value council, created in 2009, brings together external experts in corporate strategy, nutrition, water and rural development and climate change to assess our progress and discuss CSV opportunities and challenges. The CSV Council currently has 11 members. They are appointed for three years, and meet annually. In addition to advising the Chairman and CEO on our CSV agenda, the Board members also participate in our annual CSV Global Forum and select the winner of the Nestlé Prize in Creating Shared Value.

Nestlé's sustainability governance is integrated into its corporate structure, with oversight by the Board of Directors. The Board is responsible for Nestlé's strategy and organization and provides oversight over its financial and non-financial performance and reporting. The Board approves Nestlé's ESG and Sustainability Strategy and approves its Non-Financial Statement for submission to the Annual General Meeting. The Sustainability Committee has oversight over the structure and content of Nestlé's ESG and Sustainability reporting and validates that the overall approach is in line with Nestlé's strategy. The Audit Committee has oversight over the accuracy of Nestlé's financial and non-financial reporting. [...] The implementation of Nestlé's ESG and Sustainability Strategy is delegated to the ESG and Sustainability Council, chaired by the Executive Vice President (EVP) Head of Strategic Business Units and Marketing and Sales. The Council addresses the following topics: 2050 Net Zero Roadmap, packaging sustainability, water, responsible sourcing, human rights, communications, advocacy, systems and reporting. The Council meets every month and regularly reports to the full Executive Board. The structure helps to accelerate and standardize decision-making at a global level. During 2024, the Council met 12 times. The Council oversaw the implementation of the reporting obligations, including Swiss Non-Financial Reporting Obligations (Articles 964a to 964c and Articles 964j to 964l of the Swiss Code of Obligations) which require specific disclosures on ESG risks, policies, mitigation measures and outcomes, summarized in Appendix 2 – Statutory Non-Financial Matter Report Index (Article 964b CO) of this Non-Financial Statement 2024."
"The heads of the markets where Nestlé operates, known as 'Market Heads', oversee and protect operations and act as the ultimate custodians of business conduct locally. They receive support from relevant departments both locally and at the corporate level. Markets have implemented a local Compliance Program and established a Compliance Committee in alignment with the Group model. They have also designated Compliance Officers who ensure adherence to Nestlé's standards. This structured approach ensures that Nestlé's commitment to ethical practices and regulatory compliance is maintained consistently across all levels of the organization. [...] The Group Compliance Program is executed following the four pillars shown on the next page. The first pillar 'Governance and Culture' sets the tone on business conduct and relies on Nestlé's values, which are rooted in respect, the Nestlé Corporate Business Principles and the Nestlé Code of Business Conduct. [...] Nestlé encourages communication via various teams, including line managers, human resources, legal and compliance. In 2021, Nestlé enhanced its grievance mechanisms by consolidating internal and external reporting platforms into a unified global system known as Speak Up. This unified approach ensures a streamlined and effective process for addressing and resolving grievances, reinforcing Nestlé's commitment to accountability and continuous improvement in human rights practices. Building on this commitment, in 2024, Nestlé introduced the supply chain grievance management process to further strengthen the existing processes and establish an effective procedure for addressing grievances associated with any supplier that Nestlé purchases from, whether directly or indirectly. Speak Up is a global hotline that is accessible to both Nestlé employees and external stakeholders. Speak Up allows issues to be raised confidentially, and anonymously if desired, ensuring that concerns are professionally handled. Speak Up provides both Nestlé employees and any external stakeholders with the opportunity to raise non-compliance concerns. Speak Up can be accessed via corporate websites, QR codes, web forms, or through a phone line, and the system is independently operated by a third party to maintain the confidentiality and anonymity of the reporter when requested. In addition, Speak Up is regularly communicated across Nestlé to encourage its use and increase its visibility as a reliable grievance mechanism. [...] The Nestlé Privacy Notice is also regularly reviewed by the Group Data Protection Office to ensure it stays up to date and in line with evolving legislations and new technologies or use of consumer personal data. Data protection and privacy matters are led by the Group Data Protection Office and the Group Data Protection Officer, who both sit in Group Legal and Compliance.

To maintain the highest levels of integrity in our advocacy activities, we apply a robust approach as set out in our own Policy on Transparent Interactions with Public Authorities. We also pay close attention to external guidelines, including the Global Standard on Responsible Corporate Climate Lobbying. [...] Nestlé's global climate advocacy work is organized around three key aspects: [...] Each climate advocacy priority is led by one cross functional working group, responsible for defining corporate positions and strategies on the topic, overseen by a global Climate Climate Advocacy Working Group. [...] On all matters, Nestlé's advocacy is governed by the principles and guidance of Nestlé's Policy on Transparent Interactions with Public Authorities. [...] It is designed to ensure that all interactions with public authorities on behalf of Nestlé are conducted in accordance with applicable national and local laws and regulations, established corporate business principles and company internal rules. It also requires that these activities are conducted transparently and professionally, and that relevant Nestlé employees and authorized third parties assigned to conduct lobbying activities regulated by law have a clear understanding of what transparent and responsible lobbying is. [...] The Executive Vice President General Counsel, Corporate Governance and Compliance and the Deputy Executive Vice President Chief Communications Officer co-own this policy. Both position holders sit on Nestlé S.A.'s Executive Board and on the company's ESG & Sustainability Council. As such, they maintain a comprehensive overview of climate advocacy activities at Nestlé and formally approve this Nestlé Climate Policy Engagement Review. [...] Climate advocacy is part of the scope of the ESG & Sustainability Council and is overseen by its members which include 10 Executive Board members (see 4.1 Sustainability Governance). The ESG & Sustainability Council is supported by an internal Advocacy Coordination Group (ACG) which is sponsored by the Executive Vice President Group General Counsel and chaired by the Vice President Global Public Affairs. The purpose of this group is to ensure that Nestlé's global advocacy efforts across different topics are focused, consistent, informed, aligned and mutually supportive. [...] The global bodies in charge of defining climate advocacy priorities and activities at Nestlé provide strategic guidance and support to Nestlé's 5 geographical Zones via Zones Advocacy Committees. These define action plans with Nestlé Markets and business categories. Based on their guidance, Nestlé Markets define and implement climate advocacy activities in their local context. [...] To manage the local execution of climate advocacy activities at Nestlé, Market Heads must ensure compliance with the Nestlé Policy on Transparent Interactions with Public Authorities through delegation to Market Corporate Communication/Public Affairs/ Corporate & Government Affairs, and Legal & Compliance functions, all reporting to the Market Head. [...] If we identify a misalignment with an industry association position, we evaluate the importance of the gap to determine suitable required actions. This includes clearly communicating our concerns to help address the gap. Several steps can be taken depending on the degree of misalignment, starting with expressing concerns verbally. We will seek to ensure industry associations address gaps within a reasonable timeframe (e.g. 12 months). Depending on the situation, Nestlé can implement one or more of the following actions: • verbally repeat concerns with the association's position (e.g. in board meetings); • make a clear public statement regarding the misalignment; • request the industry association refrains from engaging on misaligned issues; • and/or suspension or discontinuation of membership. [...] After establishing the above criteria, we conducted internal research involving relevant Nestlé colleagues managing Corporate or Government Affairs, Regulatory Affairs or Legal matters in our different Zones and Markets where we operate across the world. These functions are the most likely to engage in dialogue with industry associations. [...] According to our Policy on Transparent Interactions with Public Authorities, "if Nestlé does not agree with an agenda or position of e.g. an industry or trade association, or industry alliance or any of its member companies, Nestlé should communicate transparently its position to the industry organization. Nestlé reserves its right to act as an individual company and engage independently with public authorities. In this context, Nestlé will use best efforts to prevent the misrepresentation of its positions by the industry organization." [...] To ensure adherence to this policy, we undertook a comprehensive biennial assessment to identify whether there may be material misalignments between our climate-related positions and some industry association positions or activities.

At Nestlé, we support progressive climate action and policies that align with the Paris Agreement and the 1.5-degree pathway, and we want to be a positive change agent helping countries meet their climate targets and identify ways of going beyond existing plans.

We are convinced that we cannot achieve our ambitions on climate if they are not supported by the right guiding standards and public policies. That is why at Nestlé we have identified the need to advocate for critical Rules and Policies for climate, which we call Climate Advocacy Priorities. These are: 1) clear and fair rules for Natural Climate Solutions (insetting), Carbon Market & Pricing and offsetting, Disclosure & Reporting, and Environmental Claims); and 2) Policies to transform Agriculture, Energy, Logistics, and Packaging. Each Climate Advocacy Priority is led by one crossfunctional working group, responsible for defining the corporate positions and strategies on the topic, validated by a Climate Advocacy Group at the global level. Implementation of these strategies is led by these working groups at global and regional level and by the local businesses, at country level.

All Nestlé positions on our Climate Advocacy Priorities are in alignment with the aims of the Paris Agreement and, therefore, in line with the preferred 1.5-degree pathway and the Nestlé Net Zero Roadmap. This approach should extend to the activities of trade associations or other types of private sector led coalitions where Nestlé is a member at global, regional and local levels.

To ensure that all of our direct and indirect activities that influence policy are consistent with our overall climate change strategy, we have established the governance of \"Nestlé in society and CSV (Creating Shared Value)\". Within our general corporate governance structure, the Chairman, the Chief Executive Officer and other members of the Executive Board are ultimately responsible for the supervision and management of our role in society and CSV, supported by a number of other governance bodies, including our Operations Sustainability Council, Issues Round Table, Water Task Force, Audit Committee, Risk Management Committee, R&D Council for Sustainability and Nutrition, and the Group Compliance Committee. [...] We have also established a quarterly Nestlé In Society Alignment Board, chaired by our Chief Executive Officer, Paul Bulcke. This board is an umbrella organisation that oversees the strategic implementation of Creating Shared Value across all our businesses. It leads the development and evolution of our CSV and sustainability objectives and strategies at Group level including climate change, while reverting to the Executive Board for input and confirmation. It also liaises with and ensures coherence with our CSV Council, which gives external input to our activities. It helps ensure consistency with our overall climate change strategy and foster alignment between Nestlé activities that influence policy. [...] The Nestlé Creating Shared Value council, created in 2009, brings together external experts in corporate strategy, nutrition, water and rural development and climate change to assess our progress and discuss CSV opportunities and challenges. The CSV Council currently has 11 members. They are appointed for three years, and meet annually. In addition to advising the Chairman and CEO on our CSV agenda, the Board members also participate in our annual CSV Global Forum and select the winner of the Nestlé Prize in Creating Shared Value. [...] To ensure that all engagements are consistent with the overall Nestlé strategy on climate change, position statements are available and reflect Nestlé's official position on specific issues that may prompt questions from external stakeholders, such as the media and NGOs. The Nestlé Policy on Environmental Sustainability and The Nestlé Commitment on Climate Change are available to all employees and used them internally to align our position vis-à-vis climate change.

We provide specific guidance to our local market teams on aligning advocacy and external engagement activities with the goals of the Paris Agreement, applying our Policy on Transparent Interactions with Public Authorities (pdf, 2Mb). [...] Disclosure of our advocacy practices is important to enhance transparency and trust. That is why we welcome the development of the Global Standard on Climate Responsible Lobbying and use it to guide our annual Nestlé Climate Advocacy Industry Associations Review disclosure. This includes: * Our advocacy priorities on climate * Nestlé S.A.'s main industry association memberships and an assessment of how far their positions are aligned with the objectives of the Paris Agreement * Our process for addressing misalignments * Nestlé's climate legislative advocacy guidance that helps equip our teams * Our governance structure for climate advocacy activities * Links to other public disclosures of Nestlé's climate advocacy activities * Examples of Nestlé's global and regional climate advocacy activities

In 2021, our Board created a separate, dedicated Sustainability Committee to advise on all aspects of our environmental and social sustainability. In particular, the Sustainability Committee oversees our response to climate change, our human rights due diligence program, and our strategies for diversity and inclusion.

###### Governance\n\n###### Our governance and implementation structure\n\n###### Sound governance is essential to create shared value, meet our environmental and social commitments and fulfill our due diligence and reporting obligations.\n\nNestlé's ESG & Sustainability Strategy is key to our decision-making. To ensure we meet our aim of long- term, sustainable value creation, the strategy is developed and delivered by our Executive Board and is approved and regularly reviewed by the Board of Directors and its Sustainability Committee. The Sustainability Committee Charter can be viewed here.\n\nThe Board of Directors approved the 2023 Nestlé Creating Shared Value and Sustainability Report to be issued on February 22, 2024, subject to approval at the Annual General Meeting on April 18, 2024.\n\nExecutive Board remuneration is linked to ESG indicators. In 2021, we introduced ESG-related key performance indicators (KPIs) to the Short-Term Incentive Plan for 15% of its grant value. In 2023, they relate to affordable nutrition with\n\n###### micronutrients, the reduction of greenhouse gas (GHG) emissions, plastic packaging designed for recycling, the reduction of water use in factories, and management positions held by women. Also in 2023, an ESG-related KPI was added as a fourth performance metric in the Long-Term Incentive Plan for 20% of its grant value. It relates to the reduction of GHG emissions. Full details of Board-level remuneration and bonuses are available in our Compensation Report.\n\nThe ESG & Sustainability Council provides strategic leadership and drives the implementation of Nestlé's ESG & Sustainability Strategy. The Council is chaired by our Executive Vice President (EVP), Head of Strategic Business Units and Marketing and Sales. The Council addresses the following topics: 2050 net zero, Sustainable Packaging, Water, Responsible Sourcing, Upstream Human Rights, Communications, Advocacy, and Systems and Reporting. The Council meets every month and regularly reports to the full Executive Board. The structure helps to accelerate and standardize decision- making on a global level.\n\n###### During 2023, the Council met 12 times. There was a particular focus on how the Nestlé brands were delivering on the ESG & Sustainability Strategy and valorizing it through brand communication. The Council also oversaw the implementation of the new reporting obligations, including Swiss Non-Financial Reporting Obligations (articles 964a to 964c and articles 964j to 964l of the Swiss Code of Obligations) which require specific disclosures on ESG risks, policies, mitigation measures and outcomes, summarized in the appendix of this report.\n\nWe monitor our ESG & Sustainability Strategy performance KPIs using an internal dashboard. For the full list of KPIs, see pages 79 to 89 in the appendix of this report.\n\nPerformance data are generated every quarter and progress is reviewed by the ESG & Sustainability Council. For full details of our governance structure, see our latest Corporate Governance Report.\n\n###### The ESG & Sustainability Council provides strategic leadership and execution support, and drives the implementation of Nestlé's ESG & Sustainability Strategy, including our 2050 Net Zero Roadmap, ensuring focus and alignment.\n\nScope:\n– 2050 net zero – Sustainable Packaging – Water – Responsible Sourcing – Upstream Human Rights – Communications – Advocacy – Systems and Reporting\n\n###### EXECUTIVE BOARD\n\n###### The Company's Executive Board is responsible for the execution of the Company's ESG & Sustainability Strategy, which includes ensuring compliance with mandatory reporting obligations.

The Sustainability Committee also oversees compliance of specific pledges, the regulatory environment and guidelines related to our product portfolio. The Executive Board is responsible for Nestlé's sustainability strategy management, through the ESG and Sustainability Council. The ESG and Sustainability Council provides governance, strategic leadership and execution guidance and makes recommendations to the Executive Board and decisions on behalf of the Executive Board within its delegated authority. The Council advises Nestlé's Executive Board on making informed and science-based decisions and it drives the focused and aligned actions to deliver our Net Zero Roadmap for example. The Council is chaired by the Group's Executive Vice President (EVP) Head of Strategic Business Units and Marketing and Sales. It also pulls together the geographical business scopes led by our three EVP Zone CEOs and functional leadership at the Executive Board level. It meets every month and reports progress to the full Executive Board regularly. To drive implementation and execution of strategies at the operational level, an ESG Strategy and Deployment Unit was also created. The ESG Strategy and Deployment Unit reports to the EVP Head of Operations. It is the responsibility of this unit to define Nestlé's sustainability strategies with the evolving environment and our ESG commitments in mind. This team of sustainability experts then both coordinates and monitors our sustainability activities around the world. Its role encompasses providing practical guidance and expertise for markets at the same time as having oversight of internal ESG sustainability data gathering and external disclosures. The new ESG Strategy and Deployment Unit develops, implements and monitors strategy. The new ESG and Sustainability Council reviews and approves the strategy.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Nestlé Climate Advocacy Industr y Associations Review 2023

Introduction: about this report

In lin e w i t h t h e ambi t io n s o f t he P ar is Agr e emen t , Ne s t lé ha s c ommi t te d to ac hie v in g ne t ze r o e mi s sion s by 2050, in c ludin g c u t t ing ab s o lu te in-s c op e e mi s sion s by 50% t his de c a de. We w ill a c hieve t his by r e du c in g c ar b on emis sio n s in o ur o p e r a t io n s and s upp l y c hain and r em ov in g c ar b on fr om t h e a t m o sp her e, a s o u t lin e d in o ur Ne t Z er o Ro a dm ap.

Success on our journey to net zero relies on the right external enabling environment. And our own approach is part of a much broader economy-wide movement towards net zero. The world still lacks sufficient international, national and regional policies and incentives to fully address the climate crisis. Indeed, society is currently off track for limiting warming to 1.5 or even 2 degrees above pre-industrial levels.

That is why, we, at Nestlé, are determined to use our voice to galvanize action – advocating alongside other companies, coalitions and associations for clear, robust and ambitious rules that bend the emissions curve in the right direction. We focus our engagement on the potential for food systems to move from being a source of carbon emissions to a net sink – delivering a range of co-benefits to nature and communities along the way.

Our own net zero plan aims to deliver change through a just transition – placing people at the heart of climate action – and we encourage policy makers to do the same. Success on the road to net zero must be science-based, collaborative and inclusive.

To maintain the highest levels of integrity in our advocacy activities, we apply a robust approach as set out in our own Policy on Transparent Interactions with Public Authorities. We also pay close attention to external guidelines, including the Global Standard on Responsible Corporate Climate Lobbying.

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

This Nestlé Climate Advocacy Industry Association Review 2023 provides a transparent overview of our current activities, including key advocacy highlights over the last 12 months. It sets out our climate advocacy priorities and our engagement with industry associations at global, regional, and country level. We will update these disclosures on an annual basis.

Contents

Introduction: about this report 1 Our approach 3 2 Our climate advocacy principles 4 3 Definitions 5

4 Climate advocacy & governance 6

4.1 Global sustainability governance 6

4.2 Governance of our global climate advocacy efforts 7

4.3 Governance of local climate advocacy efforts 7

5 Process and framework for the industry associations review 8

6 Overview of 2022 main direct climate-related advocacy activities 9 7 Industry associations review 10

Annex – Focus on organizations covered in this report and lobbying on climate matters 14

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1. Our approach

We s upp or t pr o gr e s si ve c lim a te a c tion and p o lic ie s tha t align w i t h t h e P ar i s Agre e m e n t and a 1.5 - de gre e p a thw ay. To t hi s en d, we align all of Ne s t lé's c lim a te c hange lo bby in g a c ti v i t ie s w i t h t he P ar i s Agre em e n t an d t h e go al o f r e s t r ic t in g glob al te mp er a t ure inc r e a s e s to 1.5⁰C ab ove pre -in du s t r ial leve ls . In t hi s c on te x t , we h ave e s t ablis he d sp e c i f ic ad vo c ac y pr ior i t ie s a t glob al, r e gional an d c o un t r y le vel s.

Our efforts apply to all affiliates of the Nestlé group, where the financial results of these companies are fully consolidated within Nestlé's financial reporting. This is typically the case when Nestlé owns directly or indirectly more than 50% of the shareholding of such company.

We engage in climate-related advocacy around six key areas, designed to support the delivery of the majority of the emissions savings necessary to hit our own targets.

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

These are: 1. Encouraging regenerative forms of agricultural production 2. Helping to end deforestation risk and supporting forest positive restoration 3. Enabling more sustainable logistics and transportation 4. Supporting the rollout of renewable electricity and energy 5. Improving consumer communications and marketing claims 6. Advocating for higher ambition from countries and companies, and fair and clear rules for target setting and reporting progress For each of these advocacy priorities, a detailed position is outlined in our Net Zero Roadmap.

We recognize there is much more work needed to fully realize the potential of food systems to help address climate change and related impacts, including biodiversity loss. We therefore engage in specific activities and engagement in discussions around food systems, such as those led by the United Nations via its Food Systems Summit process.

We complement this ambitious approach, where relevant, via our memberships of industry associations and other types of private sector led coalitions where Nestlé is a member at global, regional and local levels.

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2. Our climate advocacy principles

We s upp or t s t r o n g an d b ol d "Na t ionall y D e ter mine d C on tr ib u t ion s" ("ND C s" ) tha t align w i t h t h e 1.5 - de gr e e p a t hw ay. We als o enc o ur a ge g over nm en t s to tr an s la te t heir ND C s an d o t h er "C on fer enc e o f t he P ar t ie s" (CO P) c o mmi t m e n t s in to n a t ion al/re gio n al le gis la t ion to en s ure pro gr e s s again s t t he s e ambi t ion s .

We believe the following principles should apply to climate change related legislation or regulation:

Comprehensive policy and framework legislation

We support legislation that defines a clear institutional framework for climate change policy and its implementation. This should include long-term decarbonization and adaptation objectives along with midterm goals.

Transparency and disclosure. Measurement. Oversight

Climate legislation should require both the private and the public sectors to publish information on climate-related actions, physical risks, and vulnerabilities. Legislation should establish measurement, reporting, and verification systems to track progress, and monitor compliance. Finally, legislation should establish the mechanisms by which a government or other authorities will exercise oversight of policy implementation.

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

Financing the cost of decarbonization fairly

Legislation should establish how a government will finance the implementation of its climate policies, including cooperation with the private sector. Clear rules should apply equally, ensuring that efforts are imposed proportionally on all actors.

Avoidance of trade barriers

It is possible that some measures in principle destined to support the decarbonization of the economy may be perceived (or indeed be) a form of protectionism and therefore trigger "trade wars" among countries or blocks. This situation needs to be avoided as much as possible, as it will jeopardize progress on climate action.

Just transition (the social aspect of climate change mitigation)

People must be at the center of a just transition to a net zero economy. Governments should include measures to support those sectors of the population most affected by policy changes. This applies to food systems, where any shift to new methods of producing food in a less carbon intensive way, like regenerative agriculture practices, must safeguard the incomes and the rights of farmers, workers and communities.

Encouraging behavioral change at the consumer and societal level

Consumers have a collective ability to influence industry and accelerate cultural changes that support decarbonization. Legislation should promote and incentivize behavioral change by providing consumers with transparent and reliable information to help inform choices.

Looking at other policies through the lens of climate change

Public policy should be assessed through the lens of climate change to ensure its consistency with the aims of the Paris Agreement. Nestlé supports the development of climate legislation that enables and stimulates the development of large-scale regenerative food systems, providing affordable, nutritious, sustainable diets to everyone.

Panel on Regenerative agriculture at COP27 (feat. Rob Cameron, Nestlé's Global Head of Public Affairs & ESG Engagement) 

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3. Definitions

Advocacy

The process or act of supporting a cause or proposal. Nestlé's advocacy aims to directly and/or indirectly support decision-makers, stakeholders and relevant audiences in the pursuit of a broader positive societal agenda and outcome that is aligned with our business goals framed by our corporate purpose and values and built on science-based evidence. (Source: the Legal Dictionary).

Lobbying

The term generally refers to oral or written communication with a public official to influence legislation, policy or administrative decisions and includes any activity where an attempt is made to influence public decision-making processes. Lobbying can be direct, or indirect (via industry associations or any other thirdparty entity). (Source: OECD's Lobbyists, Governments and Public Trust – 2014)

Industry associations

In this report we use consistently "industry associations" referring to organizations founded and/or funded by businesses that operate in a specific industry. This terminology is used as a synonym of trade associations, industry body, business association or sector association. Generally, this covers all forms of business-led organizations. However, we also include in our report relevant partnerships with civil society organizations that convene businesses to collectively advocate and take a leading role on climate matters. This approach is in line with the Global Standard on Responsible Climate Lobbying which requires transparency over alliances, coalitions or thinktanks of which a given company is a member or to which it provides support.

Definition from the Global Standard on Responsible Climate Lobbying

The term 'corporate climate lobbying' refers to those activities carried out by corporations or their agents to directly or indirectly influence climate-significant policy decision-making by political or bureaucratic actors. Climate-significant policy refers to any environmental or non-environmental public policy with non-trivial implications – positive or negative – for realizing the temperature goals of the Paris Agreement. Such lobbying – also commonly known as advocacy – can have a significant impact on the stringency and effectiveness of public climate policy. It is not only a matter of societal concern, but also an issue of material, financial, significance for corporations and their investors.

Panel organized by We Mean Business Coalition at COP27 (feat. Magdi Batato, Nestlé's EVP Operations) 

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023 5

4. Climate advocacy and governance

A s ou t line d in o ur C re ating Share d

Value and Sus t ainabilit y Rep or t, s o un d

g over nanc e i s in te gr al to m ain t ainin g tr u s t and our lic e n s e to op er a te.

It is a cornerstone of our ability to create shared value. Our governance structure reflects our purpose, enables the achievement of our sustainability strategy, and supports our Environmental, Social and Governance (ESG) commitments. Climate-related advocacy matters are at the heart of our strategy and commitments.

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

4.1 Global sustainability

governance

The Nestlé Board of Directors, which includes 12 independent members (end 2022), is responsible for supervising our Creating Shared Value strategy and program. The Sustainability Committee of the Board of Directors reviews our sustainability strategy and ESG agenda on behalf of the Board.

The company's Executive Board is responsible for the execution of the sustainability strategy. In addition, the ESG and Sustainability Council provides governance, strategic leadership, and execution guidance on ESG matters globally. The Council is chaired by our Executive Vice President (EVP) Head of Strategic Business Units and Marketing and Sales and includes 10 Executive Board members in total. As of end 2022, the Council focuses on the following workstreams: 2050 GHG Net Zero, water, sustainable sourcing, sustainable packaging, and communication and advocacy. For full details of our governance structure, see our Sustainability Governance page on nestle.com.

Our governance structure

The infographic summarizes Nestlé's Sustainability Governance structure as of 2022:

BOARD OF DIRECTORS

The Board is responsible for the company's strategy and organization, including financial and non-financial reporting. This comprises identifying and enforcing both statutory and internal disclosure rules on ESG matters, particularly where ESG risks may affect the Company's performance.

EXECUTIVE BOARD

The Company's Executive Board is responsible for the execution of the Company's sustainability strategy, which includes the handling of the mandatory reporting obligations, with delegation to the ESG and Sustainability Council.

BOARD COMMITTEES

Sustainability Committee (SC)

The SC reviews the Company's sustainability agenda including the measures which ensure the Company's long-term sustainability strategy and its ability to create shared value.

Audit Committee (AC)

The AC is informed of the content of our non-financial reporting and audit process of selected assured metrics.

CREATING SHARED VALUE (CSV) COUNCIL

The CSV Council is an external advisory body that advises senior management on a range of sustainability issues.

ESG & SUSTAINABILITY COUNCIL

The ESG and Sustainability Council provides strategic leadership and execution support, and drives the implementation of Nestlé's sustainability strategy, including our 2050 Net Zero Roadmap, ensuring focus and alignment.

Five workstreams:

– 2050 Net Zero – Sustainable Packaging – Water – Sustainable Sourcing – Communications and Advocacy

ESG STRATEGY & DEPLOYMENT UNIT

Ensures execution, monitors external developments, and defines KPIs in support of Nestlé's sustainability strategy. Coordinates sustainability activities and has the oversight of internal ESG data and external disclosures. It also advises Nestlé's ESG and Sustainability Council.

ZONES AND MARKET MANAGEMENT

Management is responsible for ensuring the provision of relevant data for the Group non-financial reporting, and for complying with the non-financial reporting obligations at local level.

Key:

Board level

Nestlé executive

External advisory

Approves

Reports

Advises

6

4.2 Governance of our global climate advocacy efforts

Nestlé's global climate advocacy work is organized around three key aspects:

• The advocacy priorities and positions (the WHAT)

When we listen, we learn. When we learn, we can improve. That is why we regularly engage with and respond to a wide range of stakeholders to advance our advocacy on climate matters. We engage to learn the perspective of diverse stakeholders, and external feedback underpins our materiality assessment process and our prioritization of advocacy topics.

Each climate advocacy priority is led by one cross functional working group, responsible for defining corporate positions and strategies on the topic, overseen by a global Climate Advocacy Group.

Nestlé's advocacy priorities are transparently outlined in our Net Zero Roadmap, supporting ambitious government policies and privatesector leadership to ensure all sectors move more quickly towards rapid and sustained reductions in carbon emissions.

• The way we advocate and conduct relations with public authorities (the HOW)

On all matters, Nestlé's advocacy is governed by the principles and guidance of Nestlé's Policy on Transparent Interactions with Public Authorities.

This Policy is an expression of our belief that transparent and constructive engagement is a vital part of policy decision-making processes.

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

It is designed to ensure that all interactions with public authorities on behalf of Nestlé are conducted in accordance with applicable national and local laws and regulations, established corporate business principles and company internal rules, and are conducted transparently and professionally, and that relevant Nestlé employees and duly authorized third parties assigned to conduct lobbying activities regulated by law have a clear understanding of what transparent and responsible lobbying is.

The Executive Vice President General Counsel, Corporate Governance and Compliance and the Deputy Executive Vice President Chief Communications Officer co-own the referred policy.

Both position holders sit on Nestlé S.A.'s Executive Board and on the ESG & Sustainability Council. As such, they benefit from a comprehensive overview of climate advocacy and in addition to co-owning the referred Policy, formally approve this Nestlé Climate Advocacy Industry Associations Review.

• Oversight on climate advocacy activities

Overall advocacy activities at global level are overseen by an internal Advocacy Coordination Group (ACG) which is sponsored by the Executive Vice President General Counsel, Corporate Governance and Compliance and chaired by the Vice President Global Public Affairs and ESG Engagement. The purpose of this group is to ensure that Nestlé's global advocacy efforts across different topics are focused, consistent, informed, aligned and mutually supportive.

4.3 Governance of local climate advocacy efforts

The global bodies in charge of defining climate advocacy priorities and activities at Nestlé provide strategic guidance and support to the five (5) Nestlé geographical Zones through cross-functional teams in charge of advocacy efforts in their respective geographies (known as Zone Advocacy Committees). These define action plans with Nestlé Markets and business categories. Based on their guidance, Nestlé Markets define and apply climate advocacy activities in their local context.

In addition, to manage local execution of climate advocacy activities, Nestlé's Market Heads must ensure compliance with the Nestlé Policy on Transparent Interactions with Public Authorities through delegation to Market Corporate Communication/Public Affairs/ Corporate & Government Affairs, and Legal & Compliance functions, all reporting to the Market Head.

7

5. Process and framework for the industr y associations review

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

B u sine s s a c t ion s o n de c a r b oniz a t io n an d ot h er su s t aina bili t y topic s have b e t ter c h an c e s to s u c c e e d w hen r ule s ar e c le ar, c er t ain and ambi t io u s .

Industry associations and coalitions, or non-profit groups with a business network, and multi-stakeholder groups featuring industry participation can all play an important role in developing and implementing industry standards and best practices. They also provide a valuable platform for industry-wide engagements with governments, regulators and communities.

Nestlé group companies are members of industry associations and business-driven coalitions around the world. We join these to advance collective progress on topics where collective action is needed, including to support our own progress on sustainability. We acknowledge that some businesses haven't fully initiated their pathway to decarbonization yet and might be influential in some industry associations in which we participate. This could generate industry association positions that may not be fully aligned with our company's position and approach.

prevent the misrepresentation of its positions by the industry organization."

To ensure adherence to this policy, we undertook a comprehensive assessment to identify whether there may be material misalignments between our climate-related positions and some industry association positions or activities.

We established a list of criteria based on private sector best practice1 and included advice from key stakeholders. This led to us selecting 36 main industry associations for assessment, that meet one or more of the following criteria: • Significant membership fee (> 50 000 CHF); • Nestlé is a direct member; • Nestlé has an influential position (e.g. holds a board seat); • Nestlé regards the association as retaining some influence over climate-related public policy; • The association operates in regions or countries where we have significant business activities.

According to our Policy on Transparent Interactions with Public Authorities, "if Nestlé does not agree with an agenda or position of e.g. an industry or trade association, or industry alliance or any of its member companies, Nestlé should communicate transparently its position to the industry organization. Nestlé reserves its right to act as an individual company and engage independently with public authorities. In this context, Nestlé will use best efforts to

After establishing the above criteria, we conducted internal research involving relevant Nestlé colleagues managing Corporate or Government Affairs, Regulatory Affairs or Legal matters in our different Zones and Markets where we operate across the world. These functions are the most likely to engage in dialogue with industry associations.

Our research intended to: • Identify the main industry associations which Nestlé is a member of considering the above criteria; • Collect details about Nestlé's role/position in the association and membership fees; • Understand whether an industry association currently advocates on climate changerelated policy or regulation. If so, we sought to understand whether the industry association has a public position and if that advocacy position is aligned with the Paris Agreement and its global imperative to 1) collectively reduce GHG emissions to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and 2) pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.

These data helped identify trends and generated specific recommendations, in line with our Policy on Transparent Interactions with Public Authorities.

The consolidated feedback and results of this exercise are outlined in the Industry Associations Review (Section 6) of this report.

1. As per Influence Map's recommendations in their Corporate Lobbying Reviews

8

6. Over view of 2022 main direct climate -related advocacy activities

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

202 2 fe a t ur e d im p or t an t glob al c o nvenin g s on c lim a te c ha n ge s uc h a s CO P 27.

Nestlé was present in Sharm-El-Sheikh and focused on supporting the launch of a business Call to Action, under the leadership of the World Business Council on Sustainable Development (WBCSD) and co-signed with industry peers to "Put food on the Table at COP27 and beyond." For Nestlé and its peers, it was crucial to broadly mobilize public and private sector actors, including at COP27, to help illustrate how food systems can move from being a contributor to climate change and biodiversity loss to part of the solution, with positive outcomes for food producers, companies and consumers. This journey continues in 2023.

Also, in 2022, we publicly supported the Business for Nature's campaign for mandatory disclosure of impacts and dependencies on biodiversity by large companies and financial institutions at the CBD COP15 negotiations in Montreal. Nestlé participated in the negotiation process throughout 2022, meeting government representatives directly to advocate for an ambitious agreement. In Montreal, Nestlé shared various platforms with stakeholders to continue demonstrating the commitment of business to addressing biodiversity loss, and to support policies that help halt and reverse the loss of nature by 2030.

 Rob Cameron at COP27

Supporting this work, Nestlé's Global Head of Public Affairs stated that "at Nestlé, we're taking action across our business to help protect and restore biodiversity – particularly through our commitment to roll out regenerative agriculture and work towards deforestation risk free supply chains for our key commodities. All parties must do more to help halt and reverse the loss of nature by 2030. That's why we support the call for governments to include comprehensive and mandatory nature disclosure rules for large companies and financial institutions in global policy at the UN Biodiversity COP15."

In the European Union, Nestlé supported the development of legislation on deforestationfree supply chains. This legislation aims to reduce greenhouse gas emissions and biodiversity loss as well as reducing the EU's impact on global deforestation and forest degradation. During the development phase, Nestlé joined other business leaders across the food industry to support ambitious action by the European Union to increase supply chain transparency and traceability for commodities that may be linked to deforestation. Nestlé also actively advocated for decarbonization of the road freight sector and through the company's membership of Food Drink Europe, engaged around defining a comprehensive methodology for the EU's the Product Environmental Footprint (PEF) proposal.

In the U.S., Nestlé has been actively involved in advocacy activities related to climate involving coalitions of companies at both Federal and State level.

Recent examples include: • Joining like-minded organizations and stakeholders to advocate in support of federal climate legislation, culminating in the White House urging swift passage of the Inflation Reduction Act in August 2022 – a once in a generation government investment in U.S. climate initiatives.

• Nestlé publicly supported Ceres' first ever Farm Bill Priorities, which were sent to the U.S. Congress in September 2022. These priorities make the case for improved technical assistance, conservation programs, enhanced market development opportunities for farmers, more equitable land access and tenure, and reformed crop insurance.

• Nestlé signed a letter to Governors of several States considering rule adoptions in support of the Advanced Clean Trucks rule, which would increase model availability and reduce costs of zero-emissions medium- and heavyduty vehicles. As an outcome, several U.S. states have adopted the rule, including California, Massachusetts, New Jersey, New York, Oregon, Washington, and Vermont.

• In North Carolina (NC), Nestlé joined a business letter reaffirming interest to fortify a Carbon Plan, which was at risk of falling short of effectively meeting the state's climate targets. The NC Utilities Commission Carbon Plan released in 2022 reflected asks in that business letter. Notably, it included solar energy provisions, increases in demandside management, retiring coal-fired power plants, increasing battery storage, and an emphasis on developing targeted plans for engaging low-income, minority, and rural communities.

9

7. Industr y associations review sTehveerreasl emaorcnhthwsebceotwndeuecntQed4 o2v0e2r2 an d

Q1 202 3 enab le d a c o m pr ehe n s i ve mapping of t he m ain indu s t r y a s s o c ia t io n s for Ne s t lé an d t he ir p o si t ion on c lim a te m a t te r s a s we ll a s the P ar i s Agre e m en t in p ar t ic ular (fo r c r i te r ia p le a s e r e fer to s e c t ion # 5 Pro c e s s an d Fr am e wor k fo r t he Indu s t r y A s s o c ia t io n s r e v ie w).

It also helped establish a more systematic reporting process on Nestlé's climate advocacy efforts through industry associations. It was a learning exercise involving engagement with different levels of the organization, explaining the context driving Nestlé's implementation of the Global Standard on Climate Responsible Lobbying.

We've listed 36 industry associations, of which 61% have membership fees above 50 000 CHF. Nestlé has a Board seat (or equivalent influential position) in 86% of them.

The main finding of our work is that none of

the 36 most significant organizations listed have material misalignment or diverging views with Nestlé's climate position and the Paris Agreement.

However, we note that 47% (17) of them do not have a clear position on the Paris Agreement: • For 8 organizations (22%), the rationale is that they do not lobby on climate matters. This is a noticeable trend among food and beverage industry associations at country level (as opposed to industry associations with a regional or a global scope) which tend to focus their lobbying efforts on other topics. On environmental matters, other active advocacy areas include, for example, plastic and packaging waste which may be a more immediate topic for interactions between the food and beverage industry and public authorities.

• We identified 9 industry associations (25%) considered as active on climate-related lobbying but that have no available position in the public domain on the Paris Agreement. As part of our normal interactions with these organizations, we will look for opportunities to highlight the importance of clearly stating alignment between advocacy activities and the aims and ambitions of the Paris agreement. We have already done so with Food Drink Europe – one of our most important industry association partners globally – which has undertaken specific actions in this regard (such as updating their website with an explicit commitment to help achieve the objectives of the Paris Agreement).

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

Lobbying Transparency Registers and industry associations in our review

Several lobbying transparency registers exist that require the transparent disclosure of Nestlé's participation to active industry associations in a geography.

In the case of the EU transparency Register (the Register), there might be discrepancies between the comprehensive list of industry associations in the Register and those reported in this current report. The rationale is that not all industry associations in the Register meet the criteria we established for this global review.

There is also a difference of scope: whereas the former focuses on activities at EU level, our review aims to provide an overview of responsible climate lobbying at globally.

10

Over view of industr y associations and positions

Geography: Global

Name

World Economic Forum

Membership fees range

Nestlé highest position

Is this an influential position in the organization?

Does the industry association (or charity) actively lobby on regulation related to climate change? (Yes/no)

If yes, does it have a clear public position on the Paris Agreement?

If yes again, is the position aligned with the aim of the Paris Agreement?

Above 300 000 CHF

Member of the Board of Trustees

Global Coffee Platform

Above 300 000 CHF

Board member

World Cocoa Foundation

Above 300 000 CHF

Board member

N/A

N/A

N/A

N/A

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

Ellen MacArthur Foundation

World Business Council on Sustainable Development (WBCSD)

Above 300 000 CHF (including fees and donations)

Between 100 000 CHF and 300 000 CHF

Consumer Goods Forum

Between 50 000 CHF and 100 000 CHF

Strategic

partner

Chair of the Food & Agriculture Pathway Board

Board member

International Dairy Federation (IDF)

International Chamber of Commerce

No fees paid to IDF (fees paid to local branches)

Member of several standing Committees

Under 20 000 CHF

Member; Co-Chair Biodiversity Working Group

To some N/A extent

Geography: Regional level

Name FoodDrinkEurope

Geography

Membership fees range

Nestlé highest position

Is this an influential position in the organization?

Does the industry association actively lobby on regulation related to climate change? (Yes/no)

If yes, does it have a clear public position on the Paris Agreement?

If yes again, is the position aligned with the aim of the Paris Agreement?

Europe

Between 50 000 CHF and 100 000 CHF

President

Yes No

European Round Table

Europe

Between 50 000 CHF and 100 000 CHF

Member

AIM – European Brands Association

Food Industry Asia

Europe

Between 20 000 CHF and 50 000 CHF

Board member

Asia

Between 50 000 CHF and 100 000 CHF

Coordinating Council Member

11

Over view of industr y associations and positions

Geography: Europe

Name Economiesuisse

Swiss Holdings

Country

Membership fees range

Switzerland

Above 300 000 CHF

Nestlé highest position

Is this an influential position in the organization?

Does the industry association actively lobby on regulation related to climate change? (Yes/no)

If yes, does it have a clear public position on the Paris Agreement ?

If yes again, is the position aligned with the aim of the Paris Agreement?

Member of the Committee

Switzerland

Between 100 000 CHF and 300 000 CHF

President

N/A

N/A

Unione Italiana Food

Italy

Between 100 000 CHF and 300 000 CHF

Member of General Council

Food and Drink Federation (FDF)

UK

Above 300 000 CHF

Lebensmittelverband Deutschland e.V.

Germany

Between 50 000 CHF and 100 000 CHF

Member of the Board member Board and President's Committee

N/A N/A

2. Alliance 7 is a French coalition of 9 Unions of the food industry and Specialized Nutrition

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

Bundesverband der Deutschen Süßwarenindustrie e.V. (BDSI)

Germany

Between 50 000 CHF and 100 000 CHF

Board member

ANIA

France

Above 300 000 CHF (paid to Alliance 72 which devolves a portion to ANIA)

Board member (as Alliance 7 representative)

N/A N/A

Geography: North America

Name CERES – BICEP

Country

Membership fees range

USA

Between 20 000 CHF and 50 000 CHF

Ecosystem Services Market Consortium (ESMC)

The Food Marketing Association (FMI)

Sustainable Food Policy Alliance

USA

Between 50 000 CHF and 100 000 CHF

USA USA

Above 300 000 CHF

Between 20 000 CHF and 50 000 CHF

Nestlé highest position

Is this an influential position in the organization?

BICEP Member Steering Committee

Does the industry association actively lobby on regulation related to climate change? (Yes/no)

If yes, does it have a clear public position on the Paris Agreement?

Member Board of Directors

If yes again, is the position aligned with the aim of the Paris Agreement?

Member Board of Directors

Founding member

N/A

N/A

Yes No

Food Health and Consumer Products Association

Canada

Between 100 000 CHF and 300 000 CHF

Member Board of Directors

N/A

N/A

12

Over view of industr y associations and positions

Geography: Latin America

Name CONMEXICO/ Consumers Goods Association

Country

Membership fees range

Nestlé highest position

Mexico

Between 50 000 CHF and 100 000 CHF

Member of the Board

ABIA – Brazilian Association of Food Industries

Brazil

Between 50 000 CHF and 100 000 CHF

President of the Board

Is this an influential position in the organization?

Does the industry association actively lobby on regulation related to climate change? (Yes/no)

If yes, does it have a clear public position on the Paris Agreement ?

If yes again, is the position aligned with the aim of the N/A Paris Agreement?

N/A

N/A

CEBDS – Conselho Empresarial Brasileiro para o Desenvolvimionento Sustentavel

Brazil

Under 20 000 CHF

Member of the Board

ABRACE – Brazilian AB Chile Association of Large Industrial Energy Consumers and Free Consumers

Brazil

Between 20 000 CHF and 50 000 CHF

Member

Chile

Between 20 000 CHF and 50 000 CHF

Board member

N/A

N/A N/A

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

COPAL (Coordinadora de las Industrias de Productos Alimenticios)

Argentina

Under 20 000 CHF

Board member

N/A

Geography: Asia, Oceania and Africa

Name Australian Food and Grocery Council – AFGC

Australian Industry Group – AIGroup

Country

Membership fees range

Nestlé highest position

Australia

Between 100 000 CHF and 300 000 CHF

Australia

Between 20 000 CHF and 50 000 CHF

Deputy Chair Standing Committee Member

Is this an influential position in the organization?

Does the industry association actively lobby on regulation related to climate change? (Yes/no)

If yes, does it have a clear public position on the Paris Agreement?

If yes again, is the position aligned with the aim of the Paris Agreement?

N/A

N/A

Federation of Malaysian Manufacturers (FMM)

Business Leadership South Africa

Malaysia

Between 20 000 CHF and 50 000 CHF

Council Member and Sustainable Development & Climate Change Committee – Chairman

South Africa

Between 20 000 CHF and 50 000 CHF

Member

Yes No

China Beverage Industry Association (CBIA)

China

Under 20 000 CHF

Vice Chairman

China Dairy Industry Association (CDIA)

China

Under 20 000 CHF

Vice Chairman

N/A N/A

13

Annex – Focus on organizations covered in this repor t and lobbying on climate matters

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023 14

Global memberships (Information mostly gathered from external organization websites)

Organization Position

World Economic Forum (WEF) The WEF spearheads multistakeholder engagement towards the resolution of the climate issue. The WEF is committed to supporting global efforts in the private and public sectors to limit global temperature rise.

Learn more on: https://www.weforum.org/topics/climate-change

Ellen MacArthur Foundation The Ellen MacArthur Foundation is an international charity that develops and promotes the idea of a circular economy that tackles global challenges including climate change, biodiversity loss, waste, and pollution. Its approach considers that the transition to renewable energy is critical to reduce greenhouse gas emissions and meet the targets set out in the Paris Agreement, but it needs to be accompanied by a complete redesign in the way we make and produce things, including our food, based on circular economy principles. In this way, we can find solutions to the emissions that arise from how we produce and consume and build climate resilience.

Learn more: https://ellenmacarthurfoundation.org/topics/climate/overview

World Business Council on Sustainable Development (WBCSD)

Consumer Goods Forum

The WBCSD builds impactful coalitions and networks that facilitate the sharing of knowledge, enable, and accelerate the adoption of standards and tools and creates advocacy inputs for common policy asks. WBCSD mobilizes members to create the scale needed to transform their businesses and value chains to achieve Net Zero by 2050. WBCSD actively calls for policies that are consistent with ambitious action on climate and enable business-led solutions to scale and speed implementation of the Paris Agreement.

Learn more: https://www.wbcsd.org/Programs/Climate-and-Energy/Climate/Climate-Action-and-Policy

The Consumer Goods Forum (CGF) brings together consumer goods manufacturers and retailers in pursuit of business practices for efficiency and positive change across the industry benefiting shoppers, consumers and the world without impeding competition. It is an official "Accelerator" of the UN-backed Race to Zero campaign, to help increase progress towards net zero among its global membership.

Learn more: The Consumer Goods Forum Becomes UN Race to Zero Accelerator at COP26 - The Consumer Goods Forum

International Dairy Federation The International Dairy Federation (IDF) represents the global dairy sector and ensures the best scientific expertise is used to support high quality milk and nutritious, safe and sustainable dairy products.

In 2021 the IDF and other organizations in the dairy industry launched the pathways to dairy net zero bringing together dairy farms of every size and type, as well as organizations throughout the dairy supply chain dedicated to reducing dairy's greenhouse gas emissions by 2050.

Learn more: Pathways to Dairy Net Zero – Be part of Pathways to Dairy Net Zero

International Chamber of Commerce (ICC)

As the institutional representative of 45 million companies worldwide ICC recognizes the urgent need to keep the global temperature increase below 1.5° Celsius and achieve net-zero emissions by 2050.

Taking action on this mission, the ICC was highly visible at COP27 embarking the private sector towards substantial climate action.

Learn more: Climate action - ICC - International Chamber of Commerce (iccwbo.org)

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

Regional

Organization

FoodDrinkEurope (FDE)

European Round Table (ERT)

AIM – European Brands Association

Food Industry Asia – FIA

Position

FDE promotes the ideas, innovations and policies that enable the food and drink industry to make products that are not only safe and delicious, but also contribute to a greener planet, healthier living and a thriving economy. FDE has a position on climate which explicitly mentions the absolute commitment to helping the European Union become the first climate-neutral continent by 2050, and to achieve the Paris Agreement objective to keep the global temperature increase below 2°C above 1990 levels.

Learn more: https://www.fooddrinkeurope.eu/wp-content/ uploads/2021/02/Climate_change_-_position_paper.pdf

and Climate change - FoodDrinkEurope : FoodDrinkEurope

ERT regroups the leaders of some of Europe's largest businesses united by the ambition to promote sustainable growth and prosperity in Europe. On the occasion of the fifth anniversary of the Paris Climate Agreement, under the leadership of ERT, 57 business leaders from some of Europe's largest industrial and tech companies, declared their support for a climate-neutral Europe by 2050 and a net greenhouse gas emissions reduction target of 55% by 2030, backed by robust industrial policy.

Learn more: Energy Transition & Climate Change - ERT

AIM is the European Brands Association representing brand manufacturers in Europe on key issues which affect their ability to design, distribute and market their brands.

AIM members are committed to mitigate climate change by reaching the global consumer goods industry's goal of driving down carbon emissions through innovation in production processes, supply chains and products. AIM supports the implementation of government policies that create the right context for change and business action to advance the goal of the Paris Agreement to limit global temperature rises to 1.5 degrees by the end of the century.

Learn more: AIM statement on climate change_final.pdf

FIA plays a critical role in building trust between the industry and the public sector through the development and deployment of science-based policies and regulations in the Asia Pacific region. Its work cuts across the connected areas of smart regulation and safe food; health, nutrition and innovation; as well as sustainable and resilient supply chains.

FIA works on strengthening supply chains to be more resilient, efficient and sustainable. FIA is committed to achieve the Paris Agreement objective to keep the rise in global temperature within 1.5°C above 1990 levels.

Learn more: https://foodindustry.asia/

15

Europe

Organization

economiesuisse

Food and Drink Federation (FDF)

Lebensmittelverband Deutschland e.V.

Bundesverband der Deutschen Süßwarenindustrie e.V. (BDSI)

Unione Italiana Food

Association Nationale des Industries Alimentaires (ANIA)

Position

economiesuisse is the federation of Swiss business committed to maintaining Switzerland as a strong business location based on liberal free market principles.

economiesuisse supports Switzerland's climate goals and policies to reduce carbon emissions. The organization has been supportive of the Paris Agreement and committed in December 2020 to reach carbon neutrality by 2050. This was reiterated as part of the public consultation for Switzerland's Strategy for Sustainable Development 2030.

Learn more: https://www.economiesuisse.ch/fr/articles/economiesuisse-soutient-lobjectif-zero-emission-nette-dici-2050

FDF supports major changes in the food system to meet the goals of the Paris Agreement. That is why FDF has developed a Roadmap to Net Zero which outlines how it, and the wider food and drink sector, are contributing to deliver Net Zero. It is accompanied by the FDF's Achieving Net Zero handbook, which provides practical guidance for all food and drink manufacturers in implementing their own decarbonization roadmap.

Learn more: net-zero-handbook-summary.pdf (fdf.org.uk)

Although not fully explicit on the Paris Agreement, Lebensmittelverband Deutschland has issued a fundamental policy position on sustainable food systems. This position supports the aim of climate neutrality in the food chain and requires measures at all stages to reduce emissions and increase productivity.

Learn more: Position/Stellungnahme: Nachhaltigere Lebensmittelsysteme: Grundsatzposition der deutschen Lebensmittelwirtschaft: Lebensmittelverband Deutschland

The BDSI, representing the German confectionery industry, has issued several positions supporting sustainable food systems. These include efforts in areas where it can influence sustainable development: be it in the cocoa sector, regarding other food raw materials, such as palm oil or hazelnuts, helping towards the prevention of illegal deforestation, or resolving issues in the field of packaging.

Learn more: Nachhaltigkeit - Bundesverband der Deutschen Süßwarenindustrie (bdsi.de)

Although not fully explicit on the Paris Agreement, Unione Italiana Food refers to the 2030 Agenda for Sustainable Development of the United Nations as a point of reference for the integration of the Sustainable Development Goals (SDGs) in its reporting. Unione Italiana Food also adheres to initiatives such as: Alliance of Italian companies for water and climate change and the UN Global Compact.

Learn more: Unione-Italiana-Food-Rapporto-sostenibilita-6dicembre.pdf (unioneitalianafood.it)

Although ANIA does not have an explicit position on the Paris Agreement, it has participated in several regulatory initiatives in France in relation to climate, including supporting the Climate and Resilience Bill in 2021, based on its 5 pillars-manifesto of the Green Transition: reduce the carbon impact of industrial sites, promote the circularity of packaging, accelerate the development of sustainable transport and supply chain, fight against food waste and supporting environmental labeling.

Learn more: https://www.ania.net/developpement-durable/projet-de-loi-climat-et-resilience

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

North America

Organization

CERES – Business for Innovative Climate and Energy Policy (BICEP)

Ecosystem Services Market Consortium (ESMC)

Sustainable Food Policy Alliance (SFPA)

Position

Ceres is a non-profit sustainability advocacy organization. Nestlé is a member of the Ceres Company Network, which includes major corporations committed to driving sustainable business leadership, including through deep stakeholder engagement and policy action to help stabilize the climate.

Ceres is a partner of the Paris Aligned Investment Initiative—a collaborative investor-led global forum enabling investors to align their portfolios and activities with the goals of the Paris Agreement. Its aim is to enable a growing number of investors across North America and the globe to support a net-zero and resilient future.

Learn more: Paris Aligned Investment Initiative | Ceres

ESMC has been active in public policy making by responding to public consultations on several climate relevant regulatory initiatives. In particular, ESMC supports the aims of any actions that help the United States meet its obligations under the Paris Agreement in ways that benefit the agricultural sector and increase the sector's resilience to climate change impacts, while reducing those overall impacts as much as possible.

Learn more: https://ecosystemservicesmarket.org/our-work/policy/comments/

SFPA is a coalition of four major food and beverage companies: Nestlé USA, Danone North America, Mars Inc and Unilever United States. SFPA member companies advocate directly to accelerate the pace of food industry action and collective support for public policies in priority areas, including climate change.

The SFPA advocates for food and agriculture policies that improve people's lives and protect the planet. Its Climate Policy Principles and Priorities include establishing an ambitious carbon pricing system to reduce economy-wide GHG emissions to achieve the Paris Agreement goal to keep global temperature increases well below 1.5 degrees Celsius. It also supports the Government's April 2021 Nationally Determined Contribution to cut U.S. emissions by at least 50 percent below 2005 levels by 2030.

Learn more: https://foodpolicyalliance.org/app/uploads/2021/11/ sfpa-climate-principles-2021c.pdf

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Latin America

Organization

Conselho Empresarial Brasileiro para o Desenvolvimionento Sustentavel (CEBDS)

Brazilian Association of Large Industrial Energy Consumers and Free Consumers (ABRACE)

Coordinadora de las Industrias de Productos Alimenticios (COPAL)

Position

The main objective of CEBDS activities in the context of the Conferences of the Parties (COP) is to strengthen the central role of the Brazilian business sector at the forefront of climate ambition in the era of implementation of the Paris Agreement. Article 6 of the Paris Agreement: It must be fully regulated to contribute to the trajectory of not exceeding 1.5ºC of global warming of the average temperature. The complete operation of this article is strategic for Brazil, which will be responsible for a large part of the credits negotiated in this market.

Learn more: https://cebds.org/temas/mudancas-climaticas/

While ABRACE doesn't have a position on climate matters yet, it will become a priority for its working group's agenda. Nestlé's highlights are published on ABRACE's website which showcase Nestlé's advocacy position that "without the proper regulatory and political environment, it will be more challenging for Nestlé and other organizations to achieve zero net emissions by 2050 and for our collective actions to have a positive impact."

Although COPAL doesn't yet have a public position on the matter, it shares the Paris Agreement ambitions. Therefore, COPAL is joining the Climate Action Roundtable led by the Climate Change National Cabinet and the process will start soon.

NESTLÉ CLIMATE ADVOCACY INDUSTRY ASSOCIATIONS REVIEW 2023

Asia, Oceania and Africa

Organization

Australian Industry Group – AIGroup

Federation of Malaysian Manufacturers (FMM)

Business Leadership South Africa (BLSA)

China Beverage Industry Association (CBIA)

China Dairy Industry Association (CDIA)

Position

AI Group is part of the Australian Climate Round Table together with other organizations. Joint principles of this round table include a call to action that major parties' support Australia's participation in the Paris Agreement and its objective of taking action towards "holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels." The overarching aim is for Australia to play its fair part in international efforts to achieve this while maintaining and increasing its prosperity.

Learn more: Climate-roundtable-joint-principles-November-2019-FINAL.pdf (australianclimateroundtable.org.au)

Whereas FMM does not have an explicit position on climate change, it has set up a Sustainable Development & Climate Change working group which is chaired by Nestlé. Recently FMM urged the government to establish a one-stop centre and offer an ESG Fund of up to RM2 billion to assist micro, small and medium enterprises (MSMEs) in implementing the environmental, social and governance (ESG) initiative.

Learn more: https://www.fmm.org.my/images/articles/publication/FMM_BIA_July-Sept2022.pdf

BLSA supports net-zero GHG emissions reductions within clearly defined timeframes by or before 2050. It is explicitly outlined in statements such as: "if we are going to deliver on targets such as net zero carbon emissions by 2050, we have to pull together as a country."

Learn more: https://hub.blsa.org.za/blsa-ceos-weekly/blsa-ceos-newsletter-7-november-2021/

CBIA has not issued public statement on the Paris Agreement. But the association is also working on carbon neutrality, for example, sharing and discussing carbon neutrality cases at the 2022 annual meeting.

China Dairy Industry Association (CDIA) issued the "Proposal for Promoting Green, Low-carbon and Sustainable Development of China Dairy Industry" at its 2021 annual meeting. (Please see below link for details). CDIA also issued the "Code of Conduct for Green Development of China Dairy Industry" at its 28th annual meeting in 2022.

Learn more: https://www.cdia.org.cn/index.php/cate_newinfo/2148.html

In addition, the secretary general of CDIA supported the launch of a first neutral carbon neutral product on the Chinese market, a Nestlé product, for contributing to China's dairy industry achieving China's "dual-carbon" goal (i.e., "achieving carbon peak by 2030 and carbon neutrality by 2050).

Learn more: Nestlé Zhuo Chun Nengen 3 organic milk powder is launched on the market, an important step towards carbon neutrality (qq.com)

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