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       Siting	
  and	
  Community	
  Commitment	
  
                         Framework	
  	
  
                            	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

                                                      1
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.	
  	
  
	
  
	
  




                                                                                                                                                2
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.	
  




                                                                                                                                                3
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	
  	
                   Design	
                            Alignment	
                        Pilot	
  &	
  	
  
                                                                                                          Training	
  


       Conduct	
                     Draft	
  improved	
                 Vet	
  improved	
                  Train	
  our	
  siting	
  
       baseline	
                    approach	
                          approach	
  and	
                  teams,	
  
       analysis	
  	
  	
            based	
  on	
  best	
               build	
  alignment	
               implement	
  in	
  
                                     practices	
  and	
                  with	
  key	
  staff	
             pilot	
  siting	
  
                                     stakeholder	
                       and	
                              project	
  and	
  
                                     input	
                             stakeholders	
                     revise	
  based	
  on	
  
                                                                                                            pilot	
  site	
                  	
  
	
                                                                                                          results	
  
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.	
  	
  
	
  



                                                                                                                                               4
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.	
  	
  
	
  
	
  




                                                                                                                                               5
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.	
  	
  
	
  


                                                                                                                                                6
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


                                                                                                                                                    7
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.	
  




                                                                                                                                              8
 
	
          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.	
  	
  
	
  
	
  
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.	
  	
  	
  	
  
               	
  
        	
  


                                                                                                                                              9
 
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.	
  	
  




                                                                                                                                                       10
 
Graphically	
  this	
  step	
  by	
  step	
  and	
  side	
  by	
  side	
  process	
  looks	
  like	
  this:	
  
	
  




	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  
	
  
	
  
	
  




                                                                                                                  11
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.	
  
	
  
	
  
	
  

                                                                                                                                                 12
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.	
  



                                                                                                                                                   13
 
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.	
  	
  
	
  




                                                                                                                                            14

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  • 1.         Siting  and  Community  Commitment   Framework                                                                             1
  • 2. 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.         2
  • 3. 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.   3
  • 4. 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     Design   Alignment   Pilot  &     Training   Conduct   Draft  improved   Vet  improved   Train  our  siting   baseline   approach   approach  and   teams,   analysis       based  on  best   build  alignment   implement  in   practices  and   with  key  staff   pilot  siting   stakeholder   and   project  and   input   stakeholders   revise  based  on   pilot  site       results   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.       4
  • 5. 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.         5
  • 6. 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.       6
  • 7. 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 7
  • 8. 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.   8
  • 9.     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.         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.             9
  • 10.   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.     10
  • 11.   Graphically  this  step  by  step  and  side  by  side  process  looks  like  this:                                   11
  • 12. 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.         12
  • 13. 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.   13
  • 14.   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.       14