In Q4 of 2019, we engaged with the Chair of Nestle S.A. to discuss its strategic approach to sustainability. The Chair outlined Nestleâ€™s â€œCreating Shared Valueâ€ approach, which aims to create value for both shareholders and society through actions that substantially address social or environmental challenges. This approach requires Nestle to prioritize issues that matter most to its business and wider stakeholders, including climate change, natural resources, water stewardship, food, and product safety and product packaging and plastic usage.
We also discussed the importance of a transparent reporting framework that can help companies capture and report on key metrics that help investors evaluate companiesâ€™ sustainability efforts. Nestle devotes significant resources to providing disclosure against several reporting frameworks, so the firm would support the emergence of a common reporting standard.
We highlighted the benefits of adopting SASBâ€™s materiality framework, which is widely accepted, transparent and provides guidance on financially material factors by sector. In response, the Chair stated that Nestle is currently working on a similar project with the World Economic Forum. Nonetheless, the Chair agreed to consider whether reporting against the SASB materiality framework would better drive the companyâ€™s reporting of material ESG risks.