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 />
Procurement practices G4-DMA, Supplier environmental assessment G4-DMA, Environmental grievance mechanisms G4-DMA, Supplier assessment for labor practices G4-DMA,<br />
Supplier human rights assessment G4-DMA, Animal welfare G4-DMA<br />
Responsible s<strong>our</strong>c<strong>in</strong>g through <strong>our</strong> procurement activities<br />
With consumers <strong>and</strong> other stakeholders <strong>in</strong>creas<strong>in</strong>gly seek<strong>in</strong>g <strong>in</strong>formation about the orig<strong>in</strong>s of <strong>our</strong> <strong>in</strong>gredients <strong>and</strong><br />
how they were produced, responsible s<strong>our</strong>c<strong>in</strong>g – the s<strong>our</strong>c<strong>in</strong>g of raw materials <strong>and</strong> paper <strong>in</strong> full compliance with <strong>our</strong><br />
RSG criteria, with traceability <strong>and</strong> transparency throughout <strong>our</strong> supply cha<strong>in</strong>s – has never been more important.<br />
Responsible s<strong>our</strong>c<strong>in</strong>g is an <strong>in</strong>vestment <strong>in</strong> <strong>our</strong> future <strong>and</strong> <strong>in</strong> the futures of the farmers <strong>and</strong> producers on whom<br />
we depend for the <strong>in</strong>gredients <strong>in</strong> <strong>our</strong> foods <strong>and</strong> beverages. It requires cont<strong>in</strong>uous improvement, <strong>and</strong> all parties <strong>in</strong><br />
the supply cha<strong>in</strong> are responsible for address<strong>in</strong>g economic, social <strong>and</strong> environmental issues that can affect supply,<br />
livelihoods <strong>and</strong> susta<strong>in</strong>ability.<br />
See also: Environmental susta<strong>in</strong>ability <strong>and</strong> Human rights<br />
<strong>and</strong> compliance.<br />
Implement<strong>in</strong>g responsible s<strong>our</strong>c<strong>in</strong>g<br />
Responsible s<strong>our</strong>c<strong>in</strong>g is an essential part of ensur<strong>in</strong>g a<br />
susta<strong>in</strong>able future for <strong>our</strong> bus<strong>in</strong>ess. Consumers <strong>and</strong><br />
stakeholders <strong>in</strong>creas<strong>in</strong>gly want to know where the foods <strong>and</strong><br />
beverages they buy orig<strong>in</strong>ate from, how they are produced,<br />
<strong>and</strong> that laws <strong>and</strong> st<strong>and</strong>ards on key issues, such as lab<strong>our</strong><br />
conditions, animal welfare <strong>and</strong> environmental protection, are<br />
adhered to <strong>in</strong> the s<strong>our</strong>c<strong>in</strong>g <strong>and</strong> manufactur<strong>in</strong>g processes.<br />
Responsible s<strong>our</strong>c<strong>in</strong>g places shared responsibility on all<br />
parties <strong>in</strong> the supply cha<strong>in</strong> to address the economic, social <strong>and</strong><br />
environmental issues that can affect <strong>our</strong> supply of <strong>in</strong>gredients<br />
<strong>and</strong> the livelihoods of the people who produce them.<br />
Our programme is founded on <strong>Nestlé</strong>’s Corporate Bus<strong>in</strong>ess<br />
Pr<strong>in</strong>ciples <strong>and</strong> <strong>our</strong> <strong>Nestlé</strong> Supplier Code requirements we ask<br />
of all <strong>our</strong> suppliers, <strong>and</strong> their employees, agents <strong>and</strong><br />
subcontractors. Our RSG sets out more detailed requirements<br />
<strong>and</strong> is applicable to all stages of the upstream value cha<strong>in</strong><br />
back to the primary production level. With a focus on critical<br />
social, environmental <strong>and</strong> farm animal welfare-related<br />
challenges, the RSG def<strong>in</strong>es specific requirements for the<br />
supply cha<strong>in</strong>s of <strong>our</strong> priority categories. These help <strong>our</strong><br />
suppliers to improve practices at a farm or plantation level,<br />
where necessary, <strong>and</strong> ensure they meet or exceed<br />
<strong>in</strong>ternationally recognised st<strong>and</strong>ards.<br />
There are many challenges. For example, many of <strong>our</strong><br />
supply cha<strong>in</strong>s are complex, both geographically <strong>and</strong> <strong>in</strong> terms<br />
of language, so <strong>in</strong>itiatives <strong>and</strong> materials must be tailored to<br />
meet local needs. We’ve made steady progress, by<br />
enc<strong>our</strong>ag<strong>in</strong>g the adoption of <strong>in</strong>ternationally recognised ethical<br />
practices. These drive economic viability, social acceptability,<br />
<strong>and</strong> food safety <strong>and</strong> quality, help<strong>in</strong>g to address stakeholder<br />
concerns, such as food security <strong>and</strong> the environmental<br />
susta<strong>in</strong>ability of agriculture. Our commitment documents<br />
provide accessible <strong>in</strong>formation on the specific pledges we<br />
have made about key issues, such as farm animal welfare <strong>and</strong><br />
lab<strong>our</strong> rights. Through the application of these policies,<br />
pr<strong>in</strong>ciples <strong>and</strong> guidel<strong>in</strong>es, we’re mak<strong>in</strong>g progress <strong>in</strong> trac<strong>in</strong>g the<br />
materials we buy right back to their place of orig<strong>in</strong> – the<br />
essential step <strong>in</strong> identify<strong>in</strong>g <strong>and</strong> address<strong>in</strong>g issues – while<br />
performance is cont<strong>in</strong>uously tracked through supplier farm or<br />
plantation assessments.<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> 105