Nespresso Launches Its 2020 Sustainability Ambition and the Nespresso Sustainable Development Fund

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MILAN, Aug. 27, 2014 /PRN=KYODO JBN/ --

    CHF 500 million overall investment, with CHF 15 million to develop AAA

coffee growing programs in Africa

    On the occasion of the second annual meeting of the Nespresso

Sustainability Advisory Board, Jean-Marc Duvoisin, CEO of Nestle Nespresso, set

out an ambitious strategy to accelerate the company's sustainability focus and

introduce several major new initiatives that will create significant benefits

for the business, society and the environment. The new sustainability program

entitled The Positive Cup will be based on an investment of CHF 500 million

over the next six years. Part of this investment will be used to establish a

new Sustainable Development Fund, which will play a key role in channelling

resources into specific projects. The new strategy is supported by members of

the Nespresso Sustainability Advisory Board (NSAB) including the Rainforest

Alliance, Fairtrade International, the International Union for the Conservation

of Nature (IUCN) and brand ambassador George Clooney.

    (Photo: http://photos.prnewswire.com/prnh/20140827/703180 )

    The Positive Cup strategy, based on the Nestle approach to Creating Shared

Value, builds upon the significant steps that the company has already taken

over the last five years* to improve farmer welfare and drive environmental

sustainability in coffee sourcing and consumption. It sets out concrete steps

that the company will implement to achieve its sustainability goals by 2020.

The fund will be used to finance the range of programs, which form part of the

strategy as well as to attract additional external partner funding.

    "Our sustainability approach has always been designed to do more than

simply minimise impacts," said Mr. Duvoisin. "The development of even more

innovative programs with our partners demonstrates our commitment to creating

shared value and generating positive impacts for all stakeholders across the

entire value chain. This CHF 500 million investment significantly builds on our

current sustainability investment to ensure the long-term success of our

business model. This includes securing access to the one to two percent of

coffee produced in the world that meets our strict quality and taste standards

through our AAA Sustainable Quality(TM) Program. This approach also allows us

to innovate thanks to the direct relationships we build with farmers. The

Sustainable Development Fund will allow us to allocate new funding to

groundbreaking programs such as the reviving of the coffee sector in South

Sudan."

    The Positive Cup Commitments

    The Positive Cup program incorporates ambitious goals in the areas of

coffee sourcing and social welfare; aluminium sourcing, use and disposal; and

resilience to climate change. Specifically, by 2020 Nespresso commits to:

    Coffee - 100% sustainably sourced coffee

    - Source 100% of its permanent range of Grand Cru coffees sustainably

      through the Nespresso AAA Sustainable Quality(TM) Program by

      significantly expanding the AAA Program in Ethiopia, Kenya and South

      Sudan, and investing over CHF 15 million in these countries over six

      years.

    - Assist farmers to achieve high certification standards (in water

      management, biodiversity and fair treatment of workers, for example)

      through our long-term partner Rainforest Alliance (since 2003) and

      Fairtrade.

    - Pursue innovative solutions to farmer welfare, including the expansion of

      the AAA Farmer Future Program initially through a retirement fund for

      farmers in Colombia.

    Aluminium - 100% sustainably managed aluminium

    - Expand the capacity to collect used aluminium capsules to 100% wherever

      the company does business and increase recycling rates.

    - Recycle Nespresso capsules collected by the company into new Nespresso

      capsules each time it makes sense environmentally**.

    - Source 100% of virgin aluminium capsule material compliant with the new

      Aluminium Stewardship Initiative standard, being developed within a multi-

      stakeholder programme led by the IUCN.

    Climate - 100% carbon insetting***

    - Further reduce by 10% the carbon footprint of the company.

    In addition, become 100% carbon neutral. Nespresso plans to inset its

residual operational carbon footprint and increase farm climate resilience

through an extensive agroforestry programme.

    "Our business model enables us to be involved in every stage of coffee

sourcing, production and sale. It allows us to maintain particularly close

relationships and have a direct dialogue with our consumers and Club Members,"

said Mr. Duvoisin. "As a result, we have a unique opportunity to strongly

engage with our Club Members to achieve our Positive Cup commitments, in

particular as it relates to capsule recycling. Nespresso cannot achieve its

objectives alone. We call on our Club Members to actively take part in

furthering our recycling efforts."

    Nespresso Sustainability Advisory Board - Driving innovation and

collaboration

    The second annual NSAB brought together long-time Nespresso brand

ambassador George Clooney, partners including The Rainforest Alliance,

Fairtrade International, TechnoServe, IUCN and Pur Projet and Nespresso

management, to help the company enhance its long term sustainability strategy

and to serve as a base for partnership on sustainability initiatives.

    The collaborative platform has played an important role in shaping the

company's approach and informing the development of innovative and impactful

programs.

    "We are proud of our long-standing relationship with Nespresso," said

Tensie Whelan, President of the Rainforest Alliance. "This cutting edge

approach will help us further build on the real impact we together are having

on the ground in farming communities, driving economic and environmental

benefits for over 60,000 farmers who are part of the AAA Program. The Nespresso

commitment to increase the amount of Rainforest Alliance certified coffee to

50% is an important next step in our collaboration and will provide further

assurances to consumers that the coffee they are buying is having a positive

impact."

    "The AAA Farmer Future Program, coming out of the Nespresso and Fairtrade

commitment to work together, will bring measurable benefits to farmers and

their families in Caldas, Colombia," said Harriet Lamb, CEO of Fairtrade

International. "Farmers selling to Nespresso now have the option to invest

Fairtrade Premiums in this first-of-its-kind retirement fund. It's good news

for the farmers - whose average age is over 50 and who face an uncertain future

- and one way to help protect the future of coffee in Colombia by offering

better,

long-term prospects."

    "If there is to be lasting peace and prosperity in South Sudan, part of the

equation will be a diversified economy and opportunities that benefit the

people of the country," said George Clooney. "The investment by Nespresso and

TechnoServe in South Sudan's coffee sector, even while the conflict is ongoing,

is providing much-needed income for hundreds of farmers and their families

living in coffee communities. It is also an investment in South Sudan's future

prospects for peace and economic development, where wealth is created and

shared. What Nespresso and TechnoServe are doing in partnership with South

Sudanese agricultural cooperatives in the coffee sector can provide a model for

other agricultural investments."

    "The approach that Nespresso is taking is completely aligned with the

vision we have to integrate social and environmental innovations into the heart

of business," said Tristan Lecomte, President of Pur Projet. "We believe that

investing in reforestation of agricultural regions will not only restore

natural ecosystems but ultimately also improve coffee quality and productivity

and provide better returns for farmers."

    "We are pleased to be able to work with Nespresso to foster greater

sustainability and transparency throughout the aluminium value chain," said

Julia Marton-Lefevre, Director General of IUCN. "The forward looking approach

that the company is taking to further expand its recycling solutions and

encourage consumers to recycle will be greatly strengthened by the commitment

to source 100% of virgin aluminium capsule material compliant with the new

Aluminium Stewardship Initiative standard. The company has played a leading

role in initiating the new standard and continues to be a strong proponent for

sustainable aluminium use."

    *Nespresso 2013 sustainability commitments

    Nespresso has met and surpassed its 2013 sustainability commitments, set

out in 2009. The company has exceeded its goal of sourcing 80% of its coffee

from its AAA Sustainable Quality(TM) Program (84%), putting in place the

capacity to recycle over 75% of Nespresso capsules sold worldwide (80%) and

reducing the carbon footprint of a cup of Nespresso coffee by 20% (-20.7%).

    ** For example, in UK, France, Switzerland, Belgium, Luxembourg,

Netherlands, Austria and Italy.

    *** Definition of insetting: unlike "offsetting" traditional carbon

compensation where compensation takes place in a different location using

uncorrelated actors and technical activities, "insetting" integrates

socio-environmental commitments at the heart of the companies' business

activities and networks.

    More information:

    Videos: http://www.youtube.com/nespresso

    Backgrounders on AAA Program in Africa, AAA Farmer Future Program and

agroforestry available here:

http://www.nestle-nespresso.com/media/library/documents

    Nespresso Sustainability Advisory Board members and description:

http://www.nestle-nespresso.com/ecolaboration/sustainability-advisory-board/sustainability-advisory-board

    About Nestle Nespresso SA

    Nestle Nespresso SA is the pioneer and reference for highest-quality

portioned premium coffee. Headquartered in Lausanne, Switzerland, Nespresso

operates in almost 60 countries and has more than 9,500 employees. In 2013, it

operated a global retail network of over 320 exclusive boutiques. For more

information, visit the Nestle Nespresso corporate website:

http://www.nestle-nespresso.com.

    CONTACT

    Diane Duperret

    Corporate PR Manager, Nestle Nespresso SA

    diane.duperret@nespresso.com

    T: +41-21-796-92-89

    SOURCE: Nespresso