The Nescafé Plan for Responsible Production

I. Executive Summary

PLAN

The NESCAFÉ Plan for responsible production

The production of coffee affects the environment and the society. Our goal is to leave the lowest environmental footprint while Creating Shared Value for society.

Like agriculture and consumption, the production of coffee affects the environment and the society. Our goal is to leave the lowest environmental footprint while Creating Shared Value for society.

In terms of the manufacturing process, we strive to reduce water and energy consumption and lower emissions of greenhouse gases. We're using more recycled materials, reducing the weight of our packaging and using spent coffee grounds as fuel instead of disposing of the waste as landfill.

As part of the NESCAFÉ plan we are investing funds into our factories to

* reduce energy use by 20 percent per tonne produced by 2020

* reduce waste use by 30 percent per tonne by 2020

* use spent coffee grounds as fuel in all factories

The location of our production facilities is also important. 55% of NESCAFÉ is manufactured in factories in the developing countries. This helps local workers acquire new skills and higher income, is an incentive for the development of local suppliers and entrepreneurs, and raises environmental standards.

GOAL

Coffee farmers are harmed by fluctuating coffee prices which make it harder for them to invest in the next year's crop. If we can help them attain higher efficiency, cost reductions and quality improvements then they are less affected by these fluctuations. At the same time, we can also promote more sustainable agriculture by encouraging farmers to avoid pollution, use less pesticide and conserve water.

In the food industry, we rely on long-term supply of quality agricultural raw materials. With a modern food supply chain that is vast and complicated, SAI platform founders knew it would require the combined efforts of all the major organisations to have a truly positive effect. We designed SAI to share knowledge and actively communicate best practices. We seek to involve ALL partners along the food chain. And we simultaneously take into account environmental, economic and social aspects of agricultural sustainability.

With this in mind, we set up a SAI project in Aldea Ojercaibal, a village of around 300 families situated about 112 kilometres west of Guatemala City. We were struck by the fact that although local farmer expertise is considerable and the coffee produced is of a consistently high quality, the town is still considered quite poor. Our SAI team went in and identified four key areas where

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