Company Report Extract

© Covalence SA 1

2

Covalence EthicalQuote 1, avenue Industrielle, CH-1227 Carouge Geneva Switzerland

Tel: +41 (0)22 800 08 55 ; Fax: +41 (0)22 800 08 56

info@ethicalquote.com | www.EthicalQuote.com

COVALENCE REPORT EXTRACT

Research report exploring the ESG reputation of Sample Company and 30

Food & Beverages in the 2015 period with historical insights

Company Report Extract

© Covalence SA 2

SAMPLE COMPANY VS FOOD & BEVERAGES: GROUPS OF CRITERIA - POSITIVES

The radar chart and table below compare the distribution of positive news among the seven groups of criteria for Sample Company with that of the Food & Beverages sector.

Sample Company vs Food & Beverages: positive news by dimensions, 2015

Compared to peers, Sample Company shows relatively more positive news in criteria group PRODUCT (+7%) and LABOR (+3%), and less in SOCIETY (-6%) and ECONOMIC (-5%). Criteria and Issues corresponding to the differences within dimensions are presented on the next page.

Criteria group (positives) +/- Food & Beverages Sample Company

GOVERNANCE 0% 10% 10%

ECONOMIC -5% 17% 12%

ENVIRONMENT 0% 35% 34%

LABOR 3% 5% 8%

HUMAN RIGHTS 1% 2% 3%

SOCIETY -6% 25% 19%

PRODUCT 7% 7% 14%

0%

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25%

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35%

GOVERNANCE

ECONOMIC

ENVIRONMENT

LABORHUMAN RIGHTS

SOCIETY

PRODUCT

Nestlé

Food & Beverages sector

Company Report Extract

© Covalence SA 3

SAMPLE COMPANY VS FOOD & BEVERAGES: CRITERIA – NEGATIVES

The radar chart and table below compare the distribution of negative news among the 50 criteria for Sample Company with that of the Food & Beverages sector.

Sample Company vs Food & Beverages: negative news by criteria, 2015

In the 2015 period, Sample Company has received relatively more criticisms than peers on the following criteria: Product Compliance, Water Management, and Product Safety. Major negative issues & keywords for Sample Company have been: Legal issues, Customers; Government; Marketing Practices; Supply Chain; Workers and Workplace; Packaging; Human Rights..

id Criteria +/- Food & Beverages Sample

Company

49 Product Compliance 9% 7% 16%

17 Water Management 5% 4% 9%

45 Product Safety 3% 18% 21%

34 Forced Labor 3% 1% 4%

37 Local Communities 2% 5% 6%

18 Biodiversity -2% 2% 0%

21 Pollution -2% 3% 0%

42 Competition -3% 5% 2%

22 Environmental Impacts of Products -3% 5% 2%

25 Employment -5% 7% 2%

0%

5%

10%

15%

20%

25%

49 Product Compliance

17 Water Management

45 Product Safety

34 Forced Labor

37 Local Communities

18 Biodiversity

21 Pollution

42 Competition

22 Environmental Impacts ofProducts

25 Employment

Nestlé

Food & Beverages sector

Company Report Extract

© Covalence SA 4

FOOD & BEVERAGES: COUNTRIES OF ACTION

The next chart shows positive and negative news sorted by countries of action for the Food & Beverages sector in 2015. “Countries of action” means countries where action described in the news is taking place. The map displays the ratio of positive news / total news for each active country, while the histogram shows volumes of positives and negative news.

Food & Beverages: news by countries of action, 2015

0 500 1000 1500 2000 2500

USA

Non Defined

India

UK

France

Indonesia

Spain

Mexico

Canada

_Africa

China

Malaysia

Nigeria

Brazil

Ivory Coast

Ghana

Colombia

_Europe

South Africa

Switzerland

_Latin America

Kenya

Ireland

Belgium

Ethiopia

Australia

Egypt

Germany

Thailand

Argentina

Singapore

Philippines

Algeria

Netherlands

New Zealand

Tanzania

_North America

Myanmar

Vietnam

Japan

Company Report Extract

© Covalence SA 5

FOOD & BEVERAGES: LIST OF ACTIVE SOURCES

The chart below shows sources having generated positive and negative news naming Food & Beverages companies during 2015. The amount of different sources is: 761.

Food & Beverages sector: List of active sources, 2015

0 50 100 150 200 250 300

3BL Media

Bloomberg

Sustainable brands

The Guardian

Before It's News

Triple Pundit

Yahoo finance

Business and Human Rights

AlterNet

Coca-ColaCompany

JustMeans

Common Dreams newscenter

PR Newswire

Environmental Leader

Yahoo News

Greenbiz.com

Reuters

Business Standard

InvestorPoint.com

just-drinks.com

Economic Times

The Huffington Post - Blog

Food Navigator

Morningstar News

Examiner.com

Yahoo! India Finance

The Hindu

Business Wire

4-Traders

gmwatch.org

resources.made-in-china.com

Times of India

feedproxy.google.com

Just Food

AllAfrica

Organic consumers association

First Post

International Business Times

Edie Net

Care2

Correspondables

The Inquisitr News

Politico

unilever.com/

climateactionprogramme

ecobusiness

Mail Online

ens-newswire.com

Confectionery News

Popular Resistance

philanthropynewsdigest.org

Yahoo! News UK & Ireland

Investors.com

Supply Management

socialearth.org

Boursorama

Europa Press.es

Daily Kos

borgenproject.org

consumerist.com

Company Report Extract

© Covalence SA 6

4. SAMPLE COMPANY COMPANY ANALYSIS - HISTORY

ETHICALQUOTE REPUTATION SCORE

Dec 2015 EthicalQuote: 447| last period change: -92 | Dec 2014 EthicalQuote: 540

The charts above display the EthicalQuote – the actual dynamic ESG reputation tracker, and the Gain/Loss representing the monthly change of the EthicalQuote. The third chart shows the EthicalQuote per month versus the erosion (red dots). The erosion is set at 2% of the EthicalQuote at t-1. It can be considered as the objective to reach in order to keep the EthicalQuote - hence ESG reputation - of the company unchanged. The two charts below give a view of the gross material at the core of the metrics: Offer (positive news), Demand (negative news), volume (= Offer + Demand); the EthicalRate: (Offer – Demand)/ volume). These elements are frequently used in the research reports produced by Covalence.

Comment

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Demand (negative news) Offer (positive news)

Company Report Extract

© Covalence SA 7

SAMPLE COMPANY: DIMENSIONS HISTORICAL

This section examines how the EthicalQuote reputation curve calculated for Sample Company in each dimension (criteria group) has evolved historically in the Jan 2011 - Dec 2015 period.

Sample Company: reputation scores of dimensions, Jan 2011 - Dec 2015

Governance (see details p.49) The Governance, Commitments, and Engagement group covers corporate governance (including Governance structure, Cumulative functions, Board independence, Shareholders expression rights), as well as Commitments to External Initiatives and Stakeholder Engagement. Economic (see details p.50) The economic dimension of sustainability concerns the organization’s impacts on the economic conditions of its stakeholders and on economic systems at local, national, and global levels. Environment (see details p.51) The environmental dimension of sustainability concerns an organization’s impacts on living and non-living natural systems, including ecosystems, land, air, and water. Labor (see details p.52) The Labor Practices and Decent Work group includes these criteria: Employment, Employee Benefits, Trade Unions, Health and Safety, Training and Education, and Diversity and Equal Opportunity. Human Rights (see details p.53) The Human Rights group covers: Human Rights Policy, Discrimination, Child Labor, Forced Labor, Security Practices, and Indigenous Rights. Society (see details p.54) The Society group covers: Local Communities, Humanitarian Action, Corruption, Lobbying Practices, Contributions to Political Parties, Competition, Social Compliance, and CSR Awards. Product (see details p.55) Product Responsibility Performance Indicators address the aspects of products and services that directly affect customers, namely, health and safety, information and labeling, marketing, and privacy.

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2011 2012 2013 2014 2015

Environment

Economic

Governance

Society

Labor

Product

Human Rights

Company Report Extract

© Covalence SA 8

CRITERIA IN BI-DIMENSIONAL SPACE - 2015

The criteria below are located in a bi-dimensional space according to the quantity of positive news — on the vertical axis and the quantity of negative news — on the horizontal axis, registered for Sample Company in 2015.

Sample Company: criteria in bi-dimensional space, 2015

Criteria showing the most positive news for Sample Company in the 2015 period were: 22. Environmental Impacts of Products, 6. Social Sponsorship, 44. Awards, Reports and Comments, 37. Local Communities, and 45. Product Safety. Criteria registering the most negatives were: 45. Product Safety, 49. Product Compliance, 43. Social Compliance, 17. Water Management, and 37. Local Communities.

45 Product Safety

49 Product Compliance

37 Local Communities

44 Aw ards, Reports and Comments

17 Water Management

22 Env ironmental Impacts of Products

6 Social Sponsorship

43 Social Compliance

3 Commitments to External Initiativ es

20 Waste Management

16 Energy

25 Employment

31 Human Rights Policy

19 Emissions

34 Forced Labor33 Child Labor

15 Materials26 Employ ee Benef its

2 United Nations Policy

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Company Report Extract

© Covalence SA 9

PALM OIL The rule-based charts below express counts of news items for Sample Company regarding Palm oil by Major overlapping issues, Specific issues & keywords, Countries of action, Criteria, as well as by Companies, and a historical perspective.

Palm oil: Specific issues & keywords

Palm oil: Countries of action Palm oil: Criteria

Palm oil: Companies Palm oil: History

0 10 20 30 40 50 60

EnvironmentSupply Chainsustainability

Palm OilDeforestation

Local sourcingforest

supply chainsourcing

Customersoil

Legal issuesMarketing Practices

BrandingNGO

Economic Developmentaccountable

Rural DevelopmentWorkers and Workplace

Packaginghumanely

CommunityimpactLabour

Programscommunity

program

0 5 10 15 20

Malaysia

Indonesia

USA

Ivory Coast

_Latin America

_Africa

UK

Non Defined

South Sudan

Brazil

New Zealand

Ghana

Cameroon

Colombia

Sudan

India

Switzerland

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Governance Economic Environment Labor HumanRights

Society Product

Positive news (ethical offers) Negative news (ethical demands)

0102030405060708090

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Company Report Extract

© Covalence SA 10

Palm oil: Comments & Sources

Palm oil: Comments

Comment Below the quantity of positive and negative news registered for Sample Company regarding Palm oil is represented by tags, countries of source and the list of most active sources.

Palm oil: Tags cloud

Words found in news titles relating to the topic (without company name)

Palm oil: Countries of source Palm oil: List of active sources

SAMPLE COMPANY: RECENT CHANGES WITHIN SOURCE GROUPS

1 6 11 16 21 26 31 36 41

USA

UK

Malaysia

Netherlands

Qatar

Belgium

Switzerland

Madagascar

0 2 4 6 8 10 12 14

The Star Online

AlterNet

Confectionery News

Care2

Greenpeace International

NBCNEWS.com

Sustainable brands

Rainforest Action Network

Yahoo News

TreeHugger

The Guardian

Business Green

grist.org

america.aljazeera.com

Daily Kos

Environmental Leader

abc7news.com

Le Vif.be L'express

PR Newswire

inside climate news

Schweizer News - Weltweit

wildmadagascar.org

Live Trading News

USA Today

Company Report Extract

© Covalence SA 11

The chart below shows changes registered during 2015 in the distribution of positive and negative news within source groups.

Sample Company: changes within source groups, 2015 vs 2014

Over 2015 Professional organization (+4%) and National NGO (+3%) have gained importance within positive news, while Specialised press (-13%) and Enterprise headquarter (0%) reduced their weight. Within negatives Press (12%) and International NGO (4%) have emerged to the detriment of Specialised press (-14%) and Individual (blogs) (-2%).

SAMPLE COMPANY: REGIONS OF SOURCE

This next section examines the distribution of positive and negative news within regions of sources for Sample Company.

Sample Company: news by source regions, 2015

In terms of volume of information, North America gathered the largest amount of news, positive and negative. Europe comes second and Asia-Pacific third. One region was negatively balanced: Asia-Pacific.

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Positive news (ethical offers) Negative news (ethical demands)

Company Report Extract

© Covalence SA 12

Criteria Analysis 20. Waste Management [Environment]

Criteria Top 10 Issues & Keywords News count % of total Trend

20. Waste Management

ENVIRONMENTAL IMPACT OF PRODUCTION, Waste, WATER ISSUES,

Recycling, Water, Packaging, WATER PACKAGING, Energy, landfill, Customers

Positives 21 4% ↘

Negatives 4 1%

Score /Volume 17/25 (68%)

Criteria coverage: Waste management and disposal method; Transport of hazardous waste; Water

discharge; Impact of water discharge on biodiversity. (GRI G3.1 EN21, EN22, EN24, EN25)

Competitors

Food & Beverages sector, 2015

History Sample Company: score and volume

Issues & Keywords Sample Company, 2015

Countries of action Sample Company, 2015

Countries of source Sample Company, 2015

Source groups Sample Company, 2015

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Volume Score Moving avg

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ENVIRONMENTAL IMPACT OF…Waste

WATER ISSUESRecycling

WaterPackaging

WATER PACKAGINGEnergylandfill

CustomersRURAL DEVELOPMENT AND…

materialhelp

Supply ChainNestlé Waters

partnershipdisposal

bottledBranding

bottle

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Positive news (ethical offers) Negative news (ethical demands)

Company Report Extract

© Covalence SA 13

5. ANNEXES

Company Methodology

> About Covalence > Methodology

> Team > Sources

> Clients > Criteria

> News > Universe

> Services > Publications

> Covalence in the News

Interested in our Company Reports?

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For more information, please contact: antoine.mach@ethicalquote.com ; phone: +41 (0) 22 800 08 55.