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Siting  and  Community  Commitment  Framework    

                                                                       

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What  is  the  Framework?    The  “Siting  and  Community  Commitment  Framework”  is  Nestlé  Waters  North  America’s  (NWNA)  outline  of  our  new,  stakeholder  informed,  approach  to  siting  new  spring  water  facilities.    We  believe  it  supports  our  goal  of  establishing  and  maintaining  positive  

relationships  with  the  communities  where  Nestlé  Waters  North  America  sources  spring  water  and  operates  facilities.  We  recognize  that  strong  community  relations  are  important  to  developing  these  sites  in  a  manner  that  works  well  for  both  the  local  community  and  the  

company.      The  framework  consists  of  principles  and  tools  connected  to  key  steps  throughout  the  site  

development  process.  The  principles  are  now  a  set  of  public  guidance  statements  supported  by  commitments  on  how  NWNA  intends  to  operate  before,  during  and  after  siting.    The  tools  will  help  our  representatives  provide  information  that  addresses  the  unique  needs  of  each  

community  in  which  we  seek  to  site  a  spring  water  facility.  It  will  also  help  them  engage  in  dialogue  with  community  leaders,  residents  and  organizations  to  build  trust.      

The  framework  is  supported  by  two  key  processes:    1. An  engagement  approach  at  the  local  level  that  seeks  to  understand  each  

community’s  needs  and  concerns  and  provide  ongoing  dialog  about  the  project  and  

the  process.    2. Engagement  by  Nestle  Water  North  America  with  stakeholders  at  the  national  level  on  

issues  that  are  larger  than  –  but  often  impact  –  relations  with  individual  communities  

(e.g.,  concerns  about  water  use  and  its  protection,  environmental  footprint  and/or  recycling).  

 The  framework  provides  a  structure  to  consult  with  local  communities,  seek  their  input  and  understand  their  questions  and  concerns,  both  during  the  siting  process  and  beyond.        

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Why  did  we  develop  this  Framework?      One  goal  of  Nestlé  Waters  North  America  (NWNA)  is  to  create  shared  value  in  communities  

where  we  operate.    We  bring  potential  economic  benefits  to  communities,  including  job  creation,  contribution  to  the  tax  base,  support  of  local  businesses,  capital  investments,  and  expertise  in  local  water  resource  management  and  charitable  giving.    To  turn  that  potential  

into  shared  value  requires  listening  to  and  understanding  the  issues,  concerns  and  needs  of  each  community.    

Over  the  past  decade,  we  experienced  considerable  growth  and  were  involved  in  the  siting  process  with  communities  across  the  country.    Over  several  years,  it  became  clear  that  we  needed  to  review  the  way  we  approached  that  process  in  order  to  improve.    While  some  sites  

were  developed  with  little  or  no  controversy,  others  were  more  controversial.    It  was  imperative  to  learn  and  understand  the  reasons  for  this  reaction,  identify  ways  to  improve,  

and  create  a  process  that  better  meets  community  expectations.      In  2008,  we  committed  to  working  with  stakeholders  to  develop  a  framework  to  more  

proactively  manage  our  siting,  provide  communities  in  which  we  are  seeking  to  site  a  spring  water  facility  the  opportunity  to  voice  their  concerns  and  make  siting  efforts  more  transparent.  We  publicly  announced  this  goal  in  our  2008  Corporate  Citizenship  Report.    

                     We  asked  Business  for  Social  Responsibility1  (BSR)  to  help  develop  this  new  framework,  drawing  on  its  experience  with  community  engagement  and  its  work  with  natural  resource  extraction  companies,  and  to  solicit  feedback    on    previous  NWNA    siting  projects  from  local  

and  national  stakeholders.    

1  BSR,  Business  for  Social  Responsibility  (bsr.org).    A  leader  in  corporate  responsibility  since  1992,  BSR  works  with  its  global  network  of  more  than  250  member  companies  to  develop  sustainable  business  strategies  and  solutions  through  consulting,  research  and  cross-­‐sector  collaboration.  

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How  was  the  Framework  developed?    BSR  led  us  through  a  four-­‐step  process  to  assess  and  evaluate  our  current  approach,  gather  stakeholder  feedback  on  what  could  be  improved,  and  develop  a  framework  to  guide  our  

future  siting  projects.  This  process  is  outlined  below:    

   Assessment.  BSR  conducted  more  than  60  interviews  with  internal  and  external  stakeholders  and  visited  key  NWNA  sites,  current  and  considered.    Internal  stakeholders  included  

representatives  from  NWNA’s  corporate  communications,  corporate  citizenship  and  supply  chain  teams,  as  well  as  some  of  our  natural  resource  managers  involved  in  siting  and  community  engagement.  External  stakeholders  included  independent  geologists,  

environmental  conservation  organizations,  activist  groups,  conflict  resolution  specialists  and  representatives  from  several  local  communities  where  we  sought  (both  successfully  and  unsuccessfully)  to  source  spring  water  and/or  locate  a  spring  water  facility.  We  received  

candid  feedback  from  the  internal  and  external  stakeholders,  which  further  validated  the  need  to  develop  this  siting  framework.    Stakeholder  input  suggested  a  need  to:    

• Develop  a  more  effective  way  to  understand  and  assess  the  needs  and  interests  of  communities  under  consideration  

• Be  prepared  for  and  engage  in    dialogue  early  in  the  siting  process,  even  if  many  

questions  do  not  yet  have  answers  • Communicate  the  potential  benefits  and  impacts  of  a  project  in  a  more  clear  and  

direct  way  

• Reach  beyond  regulatory  requirements  to  engage  directly  and  transparently  with  the  public  in  communities    

• Provide  additional  training  and/or  resources  to  ensure  we  consistently  engage  in  

dialogue  with  communities  in  a  prompt,  patient,  respectful,  and  convenient  way.      Design.  The  results  of  the  assessment  were  shared  during  a  design  charrette  –  a  participatory  

meeting  –  held  for  our  staff  and  external  stakeholders  who,  along  with  the  assessment  results,  contributed  ideas  and  expertise  for  the  framework.      

Conduct  baseline  analysis      

Assessment     Design   Alignment   Pilot  &    Training  

Draft  improved  approach  based  on  best  practices  and  stakeholder  input  

Vet  improved  approach  and  build  alignment  with  key  staff  and  stakeholders  

Train  our  siting  teams,  implement  in  pilot  siting  project  and  revise  based  on  pilot  site  results  

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Alignment.  To  ensure  the  draft  framework  reflects  best  practices  and  will  effectively  improve  NWNA’s  practices,  BSR  invited  external  experts  in  community  engagement,  watershed  

management  and  corporate  social  responsibility  to  assess  the  framework.  We  revised  and  refined  the  framework  to  incorporate  the  experts’  comments  and  feedback.    

Pilot/Training.  Training  will  need  to  take  place,  and  the  framework  will  be  put  into  practice  for  new  siting  opportunities  and  continually  revised  based  on  pilot  and  ongoing  results.        

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How is the Framework structured? The  Siting  and  Community  Commitment  Framework  is  a  set  of  principles  (green),  processes  (red)  and  tools  (blue)  to  help  guide  NWNA  in  openly  interacting  with  a  community  during  the  

siting  process.      The  development  of  this  was  a  direct  outcome  of  feedback  from  both  internal  and  external  stakeholders.      The  goals  are  to  transparently  share  the  process,  proactively  engage  with  the  community,  build  capacity  and  provide  tools  to  create  shared  value  for  

NWNA  and  the  local  community.  The  framework  provides  practical  guidance  for  conducting  open  dialogue  with  communities  that  addresses  their  values,  interests  and  concerns.    

      Key  Components  of  the  Framework:  

National  Stakeholder  Engagement:        

Better  understanding  of  stakeholder  expectations  can  help  NWNA  improve  decision  making  and  help  ensure  the  long  term  sustainability  of  our  business.    NWNA  will  listen  to,  and  engage  with,  stakeholders  on  issues  and  opportunities  related  to  bottled  water.  From  this  input  

NWNA  will  seek  to  set  targets  for  improvement  in  our  bi-­‐annual  citizenship  report  as  well  as  engage  with  others  on  achieving  these  goals.    The  engagement  will  enable  NWNA  to  clarify,  validate  and  get  feedback  on  its  approaches  and  focus  areas  as  well  as  draw  on  the  expertise  

of  stakeholders  in  addressing  areas  of  concern.    

 

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The  Siting  &  Community  Principles  and  Commitments:    These  are  a  direct  public  statement  of  our  commitments  in  community  engagement,  water  stewardship  and  community  investment.    

It  is  important  for  a  company  to  respectfully  integrate  into  the  local  community  and  to  earn  and  maintain  the  public’s  trust.  Because  water  resources  are  important  for  every  community,  it  is  understandable  that  people  will  have  questions  and  concerns  related  to  water  use  and  

management.    These  Principles  and  Commitments  will  guide  us  in  consulting  with  the  community,  managing  water  resources  and  creating  value  for  the  community:              

1.  Listening  and  Communicating  in  a  Respectful  and  Collaborative  Process  We  will  communicate  openly  in  the  siting  process,  listen  to  and  learn  about  the  local  communities,  respond  to  their  questions  and  review  their  priorities  as  we  design  our  projects.  

NWNA’s  goal  is  to  ensure  the  community  understands  the  full  nature  of  the  project  proposal  and  has  the  opportunity  to  provide  feedback  and  discuss  concerns.      

 

To  live  up  to  this  principle,  we  commit  to:    

• share  information  in  a  timely  manner  with  public  officials  and  directly  with  local  

communities    as  the  scientific  research  proceeds      • seek  opportunities  to  hear  from  the  community    formally  and  informally,    for  example,  in-­‐  

person  meetings,  presentations  and/or  community  advisory  panels,  and  to  communicate  

through  multiple  channels,  such  as  newsletters  or  project  websites,  in  an  effort  to  reach  and  encourage  participation  from  the  local    community  and  to  provide  an  opportunity  for  

questions.    • establish  a  process  applicable  to  the  local  community  to  address  issues  that  may  arise  

from  the  local  community  or  officials  during  the  site  development  process  and  during  on-­‐going  operations.            

2.  Managing  Water  Resources  for  Long-­‐Term  Sustainability  NWNA  will  obtain  required  permits  and  comply  with  regulations  and  requirements  regarding  its  proposed  siting.  Our  actions  will  continue  to  demonstrate  the  importance  of  responsible,  

respectful  management  of  natural  resources.  This  principle  applies  to  the  management  of  our  spring  sites  selection  and  development  of  spring  water  sources,  rate  and  volume  of  water  withdrawal,  design,  construction,  operation,  distribution  and  transportation.  We  monitor  and  

manage  our  spring  sites  to  help  ensure  that  our  water  withdrawals  and  their  effect  on  the  quality  and  quantity  of  water  resources,  the  watershed  ecosystem,  our  neighbors  and  other  water  users  are  sustainable  over  the  long  term.    

 To  live  up  to  this  principle,  we  make  the  follow  commitments:      Assessment    

• Before  filing  water  permit  applications,  the  spring  source  is  studied  for  at  least  one  

year  (all  four  seasons).    We  may  undertake  a  longer  study  if  the  scientific  studies  suggest  further  analysis.        

• NWNA conducts scientific studies at proposed spring water sites as part of the site selection process. These studies cover appropriate aspects of both the biological

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environment and the physical nature of the potential source aquifer. These studies are designed to better understand the potential effects of NWNA’s  use  of  spring  water  and  may  include  some  or  all  of  the  following:  biological  studies  of  plant  and  fish  life  and  

habitat, assessments of surface and ground water, and recharge patterns.  This  will  help  us  establish  a  base  line  for  the  potential  sustainable  yield  over  time  of  the  spring  source.      

Monitoring  and  adaptive  strategies  • Monitoring  data  from  a  range  of  environmental  receptors  are  analyzed  on  an  on-­‐going  

basis  for  the  duration  of  operations.      Examples  of  monitoring  might  include  biological studies of plant and fish life and habitat, assessment of surface and ground water, and recharge patterns. As  a  result  of  this  monitoring,  NWNA  adapts  its  use  of  the  resource  where  and  when  necessary  to  manage  the  source  sustainably  over  time.    

 Mitigation  

• If  in  the  course  of  monitoring  and  managing  the  spring  source,  NWNA  finds  that  actual  results  are  inconsistent  with  projections  or  expectations,  it  will  conduct  a  scientific  investigation  to  evaluate  the  root  cause.  NWNA  will  consider  appropriate  mitigation  options,  which  may  include  temporarily  reducing  withdrawals  or  habitat  improvement  programs,  to  help  ensure  the  sustainability  of  the  resource.  NWNA  monitors  to  understand  the  effects  of  our  withdrawals  on  neighboring  wells  and,  where  applicable,  offers  well  assessment  and  protection  agreements  that  address  adverse  effects  to  their  water  supply  from  NWNA’s  use.      

 Transparency  

• NWNA  shares  with  the  local  community:    o aquifer  test  results  and  base  line  conditions  of  the  proposed  spring  water  

source    o results  of  studies  associated  with  the  proposed  development  of  the  spring  

water  facility    o results  of  our  monitoring,  and    o if  and  when  appropriate,  our  mitigation  plans.    

 Third  Party  review  

• NWNA  supports  review  of  its  science  by  a  mutually  agreed  upon  independent  and  appropriately  qualified  professional.  

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 3.  Shared  Value  and  Community  Investment  We  strive  to  develop  our  spring  sites  in  a  manner  that  creates  shared  value,  by  working  with  

the  local  community  to  enhance  the  positive  contributions  of  our  presence  and  understanding  potential  challenges.  Our  goal  is  to  make  meaningful  contributions  to  communities  where  we  do  business  and  to  create  shared  value  that  earns  respect  and  trust.  We  seek  to  understand  

the  ways  in  which  we  can  bring  value  to  the  community  through  jobs  and  tax  revenues,  our  expertise  in  sustainable  water  resource  management,  partnerships,  charitable  giving  and  volunteerism.      To  live  up  to  this  principle,  we  commit  to      

• offer  local  employment  opportunities  and  support  local  suppliers,  where  practical,  for  the  operation  of  the  proposed  spring  water  facility.    NWNA  jobs  typically  provide  total  compensation  and  benefits  that  are  above  average  compared  to  comparable  jobs  with  other  employers  in  the  area  including  medical  and  dental  benefits,  401(k)  and  profit  sharing  for  its  employees.      

• work  with  the  local  community  to  explore  how  NWNA’s  proposed  presence  in  the  community  can  help  meet  the  specific  needs  of  the  local  community,  merging    community  input  with  NWNA’s  focus  on  watershed  improvement,  water  education,  and  community  health  &  wellness.    

• undertake  traffic  and  environmental  studies  for  the  proposed  siting  of  a  spring  water  facility  and  other  appropriate    economic  and  community  assessments  as  applicable.          

 

Nestlé’  S.A.’s    global  commitment  on  water      Our  principle  of  ‘Managing  Water  Resources  for  Long  Term  Sustainability’  should  be  seen  in  the  context  of  Nestlé’  S.A.’s  global  commitment  to  water.      Nestlé’s  Corporate  Business  Principles  state:-­‐      We  are  committed  to  the  sustainable  use  of  water  and  continuous  improvement  in   water   management.   We   recognize   that   the   world   faces   a   growing   water  challenge   and   that   responsible   management   of   the   world’s   resources   by   all  water  users  is  an  absolute  necessity.      In  addition,  Nestlé  also  recognizes  the  right  of  all  people  to  have  access  to  clean  water  to  meet  their  basic  needs.  

Nestle  S.A.  is  a  founding  signatory  of  the  CEO  Water  Mandate,  an  initiative  led  by  the  United  Nations  Global  Compact.  In  2010,  the  UN  Global  Compact’s  CEO  Water  Mandate  published  a  Framework  for  Responsible  Policy  Engagement,  as  well  as  a  full  Guide  on  Responsible  Business  and  Water  Policy.  Furthermore,  the  Mandate  produced  a  White  Paper  on  the  Right  to  Water.  Nestlé  continued  to  be  one  of  the  leading  companies  within  the  Mandate  and  has  been  active  in  all  three  work  streams  on  Policy  Engagement,  Water  Disclosure  and  Human  Right  to  Water.    

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 The  Side  by  Side  Process  for  Site  Development:    This  process  is  used  to  develop  new  spring  water  sources.    Different  members  of  our  siting  teams  must  work  side  by  side,  in  unison,  to  

help  meet  community  and  company  expectations.  The  side  by  side  is  a  clear  “road  map”  that  helps  our  representatives  understand  their  responsibilities,  and  helps  everyone  see  opportunities  for  engagement.    Developing  and  maintaining  positive  community  relations  

requires  proactive  management  throughout  the  site  development  process.  Community  relations  and  engagement  activities  fit  with  the  different  phases  of  the  project  cycle,  from  initial  concept  through  construction  and  operations.    

 Homework  –  Step  I  -­‐  the  starting  point.      This  phase  assesses  if  the  site  is  likely,  from  the  surficial  review,  to  meet  NWNA’s  environmental,  quality  and  other  criteria.  

 Commit  to  Investigate  &  Plan  Engagement  –  Step  II  –  If  a  site  passes  the  Homework  phase  then,  as  we  continue  to  monitor  the  source,  we  seek  to  better  understand  the  local  

community  and  stakeholders  and  start  to  the  engagement  process.          Program  of  Investigation  &  Engagement  –  Step  III  -­‐  This  is  generally  the  longest  phase.      It  

includes  carrying  out  the  engagement  plan  and  undertaking  ongoing  dialogue  with  stakeholders  on  the  investigation  and  project.    It  is  also  in  this  phase  that  the  majority  of  scientific  investigation  is  conducted,  usually  in  a  phased  approach  over  time.  

 Design,  Permitting  &  Engagement  –  Step  IV  -­‐  In  this  phase  we  gather  the  results  of  studies  undertaken,  share  with  stakeholders  and  get  feedback,  and  determine  if  and  to  what  extent  

the  spring  source  can  be  developed.    At  this  stage  we  decide  if  we  proceed  to  formal  permitting  of  the  site.  We  will  work  with  the  local  community  to  identify  ways  in  which  we  can  deliver  on  our  commitment  to  add  value  to  the  local  community  

 Ground  Breaking  and  Operations  -­‐    Step  V  –  After  receiving  permits  to  proceed,  we  start  construction,  hiring,  training  and  commence  operations.      We  also  begin  our  community  

investment  programs  developed  in  Step  IV.    

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 Graphically  this  step  by  step  and  side  by  side  process  looks  like  this:    

                           

 

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The  Community  Engagement  Toolkit:  The  Community  Engagement  Toolkit  consists  of:    

» Tools  that  support  key  activities  at  different  phases  of  the  site  development  process  to  develop  and  execute  a  community  engagement  strategy.

» Guidance  that  provides  more  qualitative  insight  and  direction  based  on  experience  and  best  practice.

 

Shared  Value:    Nestle  Waters  North  America  believes  in  creating  shared  value  in  the  communities  where  we  are  a  member.    We  seek  to  be  a  positive  force  in  local  communities,  providing  long-­‐term  mutual  value  through  our  business  operations.      Economic  benefits  from  business  presence  such  as  jobs  and  tax  revenues  that  result  from  our  development  and  operation  of  a  spring  water  source  or  a  bottling  facility  represent  a  baseline upon  which  shared  value  is  developed.    We  seek  to  be  a  preferred  local  employer  through  investment  in  long-­‐term,  value-­‐added  jobs  and  spending  with  vendors  in  the  state,  where  practical,  to  contribute  to  economic  vitality.      We  understand  that  a  key  way  shared  value  is  created  is  through  community  engagement  and  knowledge  of  individual  community  needs  and  aspirations.  We  seek  to  listen  to  the  community  to  understand  its  priorities,  needs  and  concerns  and  tailor  our  contribution  appropriately.    Our  community  investment  policy  sets  out  strategic  priorities  for  support  (sponsorship,  donation,  or  partnerships  etc.),  allows  local  managers  to  respond  to  specific  community  needs  as  articulated  by  that  community,  and  encourages  our  employees  to  volunteer.    Specifically,  the  policy  supports:    

• partnering  with  the  local  community    to  help  ensure  the  local  watershed  is  understood,  protected  and  maintained,  including  supporting  science  education  about  watersheds  at  local  schools  

 • healthy  hydration  initiatives,  such  as  providing  water  for  sports  events  in  the  local  

community    

• providing  water  for  emergencies    

• programs  that  meet  specific  local  communities  needs      

Integration  Plan:  The  Framework  for  Community  Commitment  in  Siting  will  be  supported  by  an  implementation  plan  to  ensure  that  the  proper  capabilities,  resources  and  accountabilities  are  developed  to  carry  out  the  framework  successfully.      This  will  be  carried  out  over  the  next  

year  or  so.    

   

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What  will  be  different  based  on  the  Framework?  

In  the  past,  we  have  evolved  and  adapted  our  siting  process  based  on  what  we  learned  from  each  new  community  we  work  with.  From  these  experiences  we  have  engaged  in  activities  

such  as  one-­‐on-­‐one  meetings  with  residents,  large  group  public  presentations,  information  hotlines  and  community  newsletters.  The  framework  resulting  from  the  informed  BSR  process  however  represents  an  improvement  and  new  direction.  Here  are  some  of  the  changes  we  

have  made  to  our  siting  approach:    

» National  engagement.  We  will  engage  with  stakeholders  at  a  national  level    to  

address  regional  and/or  national  issues  which  are  often  raised  during  conversations  with  local  communities,  and  work  with  others  to  identify  solutions    

 

» An  approach  to  community  engagement  based  on  articulated  principles  and  specific  commitments.  The  principles  will  guide  our  conduct  in  local  communities  during  the  

siting  process  and  the  specific  commitments  outline  tangible  actions  so  that  the  community  knows  what  to  expect  from  us.      

 » An  enhanced  community  assessment  process.  We  have  developed  an  enhanced  

process  to  better  understand  the  community  needs  and  concerns  at  early  stages  of  siting.  We  want  to  learn  as  much  as  possible,  as  early  as  possible,  about  who  the  key  stakeholders  are  and  their  interests  and  concerns.  This  assessment  process  will  help  

us  better  understand  the  community’s  perspective  and  address  potential  issues  in  a  more  open  and  transparent  way.  

 

» Tools  to  encourage  more  effective  engagement.  We  have  developed  tools  to  help  our  siting  teams  with  effective  communications  outreach  and  dialogue  that  can  also  be  customized  to  the  specific  needs  and  expectations  of  each  community.  BSR  has  

incorporated  suggestions  and  provided  guidance  on  common  dilemmas  to  build  the  capacity  of  our  staff  “on  the  ground.”  

 » Integrated  engagement  in  the  site  development  process.  We  have  developed  a  vision  

for  on-­‐going  community  engagement  throughout  the  five  phases  of  the  siting  process  (see  chart  on  page  10).  Again,  while  each  situation  will  be  different,  this  enhanced  siting  process  is  intended  to  provide  broad  guidance  on  the  kinds  of  activities  our  staff  

in  the  field  should  be  undertaking  to  develop  and  implement  effective  community  engagement    at  different  stages  of  spring  site  development.  

 » A  clearer  statement  of  shared  value.  As  part  of  a  broader  initiative  at  Nestlé  Waters  

North  America  to  articulate  the  “shared  value”  our  company  seeks  to  create,  we  have  better  defined  our  opportunities  to  contribute  to  communities.  We  are  developing  policies  and  practices  for  more  effective  community  investment,  employee  

volunteering  and  other  types  of  contributions.  

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 What’s  next?      The  framework  is  intended  to  be  applied  by  NWNA’s  siting  teams  –  our  employees  and  other  team  members  in  the  field  who  guide  the  process  of  site  development.  We  plan  to  incorporate  this  framework  into  training  programs  for  relevant  employee  groups  and  develop  

mechanisms  for  ongoing  review  of  the  framework.      As  has  been  noted,  every  site  will  be  different  –  and  so  the  framework  is  built  to  provide  

expectations  and  boundaries  as  well  as  tools,  processes  and  options  that  provide  some  flexibility.  The  specifics  of  how  often,  and  in  what  form,  engagement  and  accountability  take  place  will  be  determined  by  each  site  development  project.    

 For  our  part,  we  commit  to  using  the  framework  as  a  guide  to  engage  responsibly  with  those  communities  where  we  seek  a  new  spring  water  source  and/or  seek  to  operate  a  new  spring  

bottling  facility.  We  hope  it  will  help  a  community  understand  the  process  and  expectations  as  well  as  help  address  issues  and  promote  dialogue  that  leads  to  shared  value  for  the  community,  as  well  as  Nestlé  Waters  North  America.