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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, Child labor G4-DMA<br />

Partnership with the Fair Labor<br />

Association (FLA)<br />

We were the first company <strong>in</strong> the food <strong>in</strong>dustry to become<br />

affiliated with the FLA, a non-profit multi-stakeholder <strong>in</strong>itiative<br />

that works with major companies to improve work<strong>in</strong>g<br />

conditions <strong>in</strong> their supply cha<strong>in</strong>s.<br />

To date, the FLA, as an <strong>in</strong>dependent external monitor, has<br />

<strong>in</strong>vestigated <strong>our</strong> hazelnut supply cha<strong>in</strong> <strong>in</strong> Turkey <strong>and</strong> cocoa<br />

farm<strong>in</strong>g <strong>in</strong> Côte d’Ivoire on <strong>our</strong> behalf. It highlighted issues<br />

concern<strong>in</strong>g workers’ rights, child lab<strong>our</strong>, work<strong>in</strong>g conditions<br />

<strong>and</strong> other topics, such as the role of women. We cont<strong>in</strong>ue to<br />

work with them to address these f<strong>in</strong>d<strong>in</strong>gs.<br />

Women farmers<br />

Women make up nearly half (43%) of the agricultural lab<strong>our</strong><br />

force <strong>in</strong> develop<strong>in</strong>g countries 2 , yet ILO data suggests the yields<br />

they achieve are on average 20% to 30% lower than those of<br />

men 3 . This is because they have less access to improved<br />

seeds, fertilisers, equipment, tra<strong>in</strong><strong>in</strong>g <strong>and</strong> <strong>in</strong>formation.<br />

<strong>Nestlé</strong> believes that this issue must be addressed.<br />

Throughout <strong>2015</strong>, we cont<strong>in</strong>ued <strong>our</strong> work with women farmers<br />

<strong>in</strong> <strong>our</strong> coffee, cocoa <strong>and</strong> milk supply cha<strong>in</strong>s by provid<strong>in</strong>g<br />

tra<strong>in</strong><strong>in</strong>g on technical skills, res<strong>our</strong>ce stewardship <strong>and</strong> bus<strong>in</strong>ess<br />

issues. We also promote gender awareness tra<strong>in</strong><strong>in</strong>g, work with<br />

women’s associations to create platforms for dialogue <strong>and</strong><br />

help women farmers to <strong>in</strong>crease their <strong>in</strong>come by grow<strong>in</strong>g<br />

additional food crops.<br />

Help<strong>in</strong>g farmers develop<br />

new <strong>in</strong>come streams<br />

Coffee is the ma<strong>in</strong> <strong>in</strong>come s<strong>our</strong>ce for the hamlets of Papua New<br />

Gu<strong>in</strong>ea’s Baiyer Valley. While work<strong>in</strong>g with Papua New Gu<strong>in</strong>ea<br />

Coffee Exports <strong>and</strong> Baki Kopi to develop a 4C (Common Code<br />

for the Coffee Community) Unit <strong>in</strong> the valley, <strong>Nestlé</strong> has<br />

developed a project to enc<strong>our</strong>age farmers to develop alternative<br />

<strong>in</strong>come streams, particularly for women, such as beekeep<strong>in</strong>g.<br />

The project is a jo<strong>in</strong>t venture between the Baiyer District<br />

Adm<strong>in</strong>istration <strong>and</strong> <strong>Nestlé</strong>. The Baiyer District Adm<strong>in</strong>istration<br />

provides tra<strong>in</strong><strong>in</strong>g facilities <strong>and</strong> a beekeeper, <strong>and</strong> <strong>Nestlé</strong> is<br />

provid<strong>in</strong>g beehives, beekeep<strong>in</strong>g equipment <strong>and</strong> queens<br />

with broods.<br />

The project consists of develop<strong>in</strong>g an apiary for use as a<br />

demonstration <strong>and</strong> tra<strong>in</strong><strong>in</strong>g facility, <strong>and</strong> a range of tra<strong>in</strong><strong>in</strong>g<br />

c<strong>our</strong>ses. These will focus on the <strong>in</strong>ter-dependency between<br />

coffee, fruit <strong>and</strong> vegetable production <strong>and</strong> bee activity, as well<br />

as environmental awareness. The project will also <strong>in</strong>clude the<br />

supply of beehives to Baiyer’s women’s associations.<br />

More than 300 farmers are expected to complete the<br />

tra<strong>in</strong><strong>in</strong>g <strong>and</strong> beg<strong>in</strong> build<strong>in</strong>g their own hives. The potential<br />

annual <strong>in</strong>come from three hives is estimated to be equivalent<br />

to the average annual <strong>in</strong>come from family coffee farm<strong>in</strong>g <strong>and</strong><br />

allows a more even spread of <strong>in</strong>come throughout the year.<br />

Separate monthly tra<strong>in</strong><strong>in</strong>g c<strong>our</strong>ses for women <strong>and</strong> men will<br />

follow <strong>in</strong> 2016, <strong>and</strong> a mobile honey extraction facility will also<br />

be developed.<br />

We are do<strong>in</strong>g more to improve the lives of women <strong>in</strong> <strong>our</strong><br />

supply cha<strong>in</strong>s, by:<br />

• Integrat<strong>in</strong>g women’s empowerment <strong>and</strong> gender aspects<br />

<strong>in</strong>to <strong>our</strong> Rural Development Framework;<br />

• Publish<strong>in</strong>g a <strong>Nestlé</strong> Action Plan on Women <strong>in</strong> the Cocoa<br />

Supply Cha<strong>in</strong> <strong>and</strong> commission<strong>in</strong>g the FLA to assess women<br />

<strong>in</strong> <strong>our</strong> supply cha<strong>in</strong> <strong>in</strong> Côte d’Ivoire. A progress report was<br />

published <strong>in</strong> January <strong>2015</strong>; <strong>and</strong><br />

• Help<strong>in</strong>g to <strong>in</strong>crease women’s representation <strong>in</strong> committees<br />

<strong>and</strong> at managerial levels through the tra<strong>in</strong><strong>in</strong>g of<br />

representatives from n<strong>in</strong>e co-operative societies <strong>in</strong> the<br />

Central region of Kenya.<br />

Boost<strong>in</strong>g women farmers’<br />

<strong>in</strong>come through agrit<strong>our</strong>ism<br />

Ecuador’s fav<strong>our</strong>able biodiversity, social <strong>and</strong> geographic<br />

conditions offer farmers an opportunity to diversify <strong>and</strong> to<br />

comb<strong>in</strong>e t<strong>our</strong>ism with agriculture. With this <strong>in</strong> m<strong>in</strong>d, <strong>Nestlé</strong><br />

has launched a project to tra<strong>in</strong> farmers <strong>in</strong> agrit<strong>our</strong>ism <strong>and</strong><br />

f<strong>in</strong>d opportunities to generate additional <strong>in</strong>come <strong>and</strong><br />

improve livelihoods.<br />

The project is run with farmers from the Comunitaria<br />

Progresista Zhucay, a community association with 26<br />

participants, 22 of whom are women, <strong>in</strong> La Troncal-Cañar<br />

prov<strong>in</strong>ce. Their farms – surrounded by beautiful l<strong>and</strong>scapes,<br />

such as rivers <strong>and</strong> jungle with preserved biodiversity – offer<br />

much scope for t<strong>our</strong>ism, such as t<strong>our</strong>s <strong>and</strong> cocoa-farm<strong>in</strong>g<br />

demonstrations. Us<strong>in</strong>g this environment, agrit<strong>our</strong>ism will<br />

enable farmers to keep produc<strong>in</strong>g cocoa us<strong>in</strong>g good<br />

agricultural practices <strong>and</strong> preserv<strong>in</strong>g natural res<strong>our</strong>ces.<br />

<strong>Nestlé</strong> hired an agrit<strong>our</strong>ism specialist to help roll out<br />

workshops. These covered topics <strong>in</strong>clud<strong>in</strong>g welcom<strong>in</strong>g<br />

t<strong>our</strong>ists, customer service <strong>and</strong> potential development<br />

opportunities, such as teach<strong>in</strong>g t<strong>our</strong>ists about cocoa farm<strong>in</strong>g,<br />

fish<strong>in</strong>g, talks on medic<strong>in</strong>al <strong>and</strong> ancestral plants, production of<br />

h<strong>and</strong>-crafted chocolates <strong>and</strong> lodg<strong>in</strong>g on the farms.<br />

A year <strong>in</strong>to the project, 21 <strong>Nestlé</strong> Cocoa Plan farms have<br />

received 43 visitors, boost<strong>in</strong>g their <strong>in</strong>come. Women are <strong>in</strong><br />

charge of the agrit<strong>our</strong>ism projects, while their husb<strong>and</strong>s work<br />

on the cocoa plots or other farm<strong>in</strong>g activities.<br />

The pilot project should be fully established <strong>in</strong> 2016, when<br />

Cocoa Plan farmers from other areas will be <strong>in</strong>vited to visit <strong>and</strong><br />

learn from the experiences of the participants <strong>and</strong> to get<br />

<strong>in</strong>volved themselves. We will cont<strong>in</strong>ue to run workshops, <strong>and</strong><br />

field technicians will monitor the progress of implementation<br />

on each farm. Visitor numbers <strong>and</strong> their feedback will be<br />

reviewed annually.<br />

See Cocoa to read more about <strong>our</strong> work to promote<br />

gender equality.<br />

2 www.fao.org/docrep/013/i2050e/i2050e00.htm<br />

3 www.ilo.org/public/english/employment/ent/coop/africa/download/coopafrica_<br />

leaflet_iwd2012.pdf<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> 104

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