Nestlé in society Creating Shared Value and meeting our commitments 2015
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<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />
Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />
Nutrition, health<br />
<strong>and</strong> wellness<br />
Rural development<br />
Water<br />
Environmental<br />
susta<strong>in</strong>ability<br />
Human rights<br />
<strong>and</strong> compliance<br />
Our<br />
people<br />
Indirect economic impacts G4-DMA<br />
Local s<strong>our</strong>c<strong>in</strong>g <strong>and</strong> assistance to farmers<br />
Through <strong>our</strong> activities <strong>in</strong> <strong>2015</strong>, we enabled around 98 000<br />
farmers to access f<strong>in</strong>ancial services amount<strong>in</strong>g to<br />
CHF 33 million of assistance. Of this, CHF 28.9 million was<br />
direct f<strong>in</strong>ancial assistance by <strong>Nestlé</strong>, such as <strong>in</strong>vestment <strong>and</strong>/<br />
or operational loans, advanced payments, subsidised <strong>in</strong>terest<br />
rates <strong>and</strong> bank guarantees.<br />
The balance comprises third-party f<strong>in</strong>ancial assistance <strong>and</strong><br />
a non-exhaustive list of <strong>in</strong>-k<strong>in</strong>d support, such as the supply of<br />
plantlets <strong>and</strong> other capacity-build<strong>in</strong>g measures provided<br />
through Farmer Connect <strong>and</strong> as part of <strong>our</strong> activities, such as<br />
the Nescafé Plan, the <strong>Nestlé</strong> Cocoa Plan <strong>and</strong> the Nespresso<br />
AAA Susta<strong>in</strong>able Quality Program.<br />
• Farm management <strong>and</strong> record-keep<strong>in</strong>g (e.g.<br />
farm economics);<br />
• Water conservation <strong>and</strong> irrigation management; <strong>and</strong><br />
• Water <strong>and</strong> environmental sanitation for farm<strong>in</strong>g<br />
communities (<strong>in</strong>clud<strong>in</strong>g liquid <strong>and</strong> solid waste management)<br />
at farm level <strong>and</strong> <strong>in</strong> farm<strong>in</strong>g communities.<br />
Tra<strong>in</strong><strong>in</strong>g is aimed at both women <strong>and</strong> men farmers. We believe<br />
this will help address disadvantages faced by women farmers<br />
<strong>and</strong> lead to greater <strong>and</strong> higher-quality yields, <strong>in</strong>creased<br />
<strong>in</strong>comes, better family prospects <strong>and</strong> higher st<strong>and</strong>ards of liv<strong>in</strong>g.<br />
Number of farmers benefit<strong>in</strong>g from f<strong>in</strong>ancial assistance<br />
<strong>2015</strong> 98000<br />
2014 83600<br />
2013 59000<br />
Budget for f<strong>in</strong>ancial assistance to farmers –<br />
direct <strong>and</strong> <strong>in</strong>direct (CHF million)<br />
<strong>2015</strong> 33<br />
2014 39<br />
2013 50<br />
Farmer tra<strong>in</strong><strong>in</strong>g<br />
One of the key challenges of <strong>our</strong> rural development work is<br />
to develop poorer-perform<strong>in</strong>g farmers <strong>in</strong>to skilled farmers,<br />
able to meet <strong>our</strong> st<strong>and</strong>ards <strong>and</strong> become suppliers. We also<br />
aim to improve further the performance of elite farmers <strong>and</strong><br />
agripreneurs, with a special focus on owner-operated<br />
family farms.<br />
Number of farmers tra<strong>in</strong>ed through capacity-build<strong>in</strong>g<br />
programmes<br />
<strong>2015</strong> 400000<br />
2014 376000<br />
2013 300000<br />
In <strong>2015</strong>, we provided tra<strong>in</strong><strong>in</strong>g to about 400 000 farmers around<br />
the world – almost half <strong>our</strong> Farmer Connect supplier base –<br />
through <strong>our</strong> capacity-build<strong>in</strong>g programmes. Our farmer<br />
tra<strong>in</strong><strong>in</strong>g <strong>and</strong> support focuses on:<br />
• Seed <strong>and</strong> plant propagation techniques;<br />
• Soil fertility <strong>and</strong> plant nutrition;<br />
• Plant health <strong>and</strong> protection;<br />
• Post-harvest process<strong>in</strong>g, storage <strong>and</strong> waste reduction;<br />
• Animal feed <strong>and</strong> fodder production, storage<br />
<strong>and</strong> conservation;<br />
• Farm animal nutrition, <strong>in</strong>clud<strong>in</strong>g raw material safety<br />
<strong>and</strong> quality;<br />
• Farm animal health, care <strong>and</strong> welfare;<br />
Biofortified cassava <strong>in</strong> Nigeria<br />
Cassava is the staple food for more than 70 million people <strong>in</strong><br />
Africa, <strong>and</strong> an alternative crop to maize <strong>and</strong> wheat <strong>in</strong> waterscarce<br />
regions ow<strong>in</strong>g to its low water requirements. As such, it<br />
could help mitigate the effects of climate change. Cassava is<br />
also used <strong>in</strong> <strong>Nestlé</strong> Maggi factories as a replacement for corn<br />
starch, which leads to reduced imports of corn starch <strong>and</strong><br />
<strong>in</strong>creased <strong>in</strong>comes for cassava growers. In addition,<br />
biofortified cassava can help fight diseases related to<br />
nutritional deficiencies <strong>in</strong> rural communities.<br />
Given the importance of cassava, <strong>Nestlé</strong>’s research <strong>and</strong><br />
development (R&D) facility <strong>in</strong> Abidjan has been research<strong>in</strong>g<br />
biofortification to improve the crop’s nutritional value <strong>and</strong> its<br />
ability to fight diseases related to maln<strong>our</strong>ishment.<br />
Work<strong>in</strong>g with the International Institute of Tropical<br />
Agriculture (IITA), we evaluated cassava varieties to assess<br />
productivity <strong>and</strong> nutritional value. Subsequent research sought<br />
to select suitable new types, establish more precise<br />
<strong>in</strong>formation on their properties <strong>and</strong> run assessment trials. We<br />
also produced a cassava agronomy field manual for farmers<br />
<strong>and</strong> extension workers.<br />
F<strong>our</strong> biofortified cassava varieties were developed <strong>and</strong><br />
tested <strong>in</strong> Nigeria <strong>and</strong> Côte d’Ivoire, yield<strong>in</strong>g between 35 <strong>and</strong> 70<br />
tonnes per hectare, compared to local varieties that yield about<br />
18 tonnes per hectare. In addition, a manual for cassava<br />
cultivation focus<strong>in</strong>g on good agricultural practices was<br />
prepared for use, both as a tool for extension workers <strong>and</strong> as<br />
an <strong>in</strong>put for farmer tra<strong>in</strong><strong>in</strong>g.<br />
As well as complet<strong>in</strong>g analysis at R&D Abidjan on the plants’<br />
nutritional value, we also aim to <strong>in</strong>vestigate ways to get rid of<br />
the cassava mosaic virus, which is responsible for up to 70% of<br />
post-harvest losses. As cassava fields are largely owned by<br />
women, it is anticipated that high-quality plant<strong>in</strong>g material will<br />
fav<strong>our</strong> women <strong>in</strong> particular <strong>and</strong> contribute to their <strong>in</strong>come.<br />
We also have technical assistance schemes <strong>in</strong> place across<br />
most countries where we have milk operations: these <strong>in</strong>clude<br />
manag<strong>in</strong>g water programmes with farmers <strong>and</strong> provid<strong>in</strong>g<br />
farmers with access to f<strong>in</strong>ance.<br />
<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 101