Nestlé in society Creating Shared Value and meeting our commitments 2015

Nestlé in society:
Creating Shared Value
Nutrition, health
and wellness
Rural development
Water
Environmental
sustainability
Human rights
and compliance
Our
people
Supplier environmental assessment G4-DMA, Supplier assessment for labor practices G4-DMA, Supplier human rights assessment G4-DMA, Animal welfare G4-DMA
How it works
Each business unit takes overall responsibility for local rural
development activities in its own area. As appropriate, the
Rural Development Framework may be used to help inform
where interventions are needed.
Farmer Connect and direct
sourcing operations
Farmer Connect is our direct
sourcing programme through
which we buy almost half our
dairy ingredients and significant
volumes of coffee and cocoa.
Through Farmer Connect we
engage with 760 000 farmers
– mostly rural smallholders in
developing countries. More than
1200 Nestlé sourcing staff in
the field regularly visit farms,
carry out assessments using our
Responsible Sourcing Guideline
(RSG) requirements and provide
training and other assistance.
Tier 1 (direct) suppliers
Sub-tier suppliers
Farms and plantations
Responsible sourcing through our
procurement activities
Auditing
Through a rolling series of audits, we verify
that our direct suppliers are implementing
our Supplier Code. Audits are carried out by
independent verification firms, mainly
of manufacturing sites.
Traceability
We work with our direct suppliers to map the
upstream supply chain back to origin. This
helps us to understand the extended supply
chain right down to farm level and the suppliers
that contribute at each stage.
Farm assessments
We assess the implementation of our RSG on
farms and plantations, and identify any issues
that exist. Assessments are carried out by
partner organisations, such as Proforest and
The Forest Trust (TFT).
Responsible Sourcing activities
Farmer Connect suppliers
We ensure transparency and
traceability up to farmer level by
sourcing directly from farmers,
co-operatives and selected traders.
The baseline documents for our sourcing
activities are the Nestlé Supplier Code and
the Responsible Sourcing Guideline.
We engage with suppliers on
opportunities for continuous
improvement by applying Nestlé good
agricultural standards, principles and
practices on food safety and quality
assurance, and involve them in capacity
building and training, which enables them
to reach higher levels of sustainability.
Tier 1 suppliers
For suppliers in direct commercial
relationships with Nestlé, our activities
focus on an ethical audit of their
operations against the Nestlé Supplier
Code requirements, to measure how a
material or service is produced, and ensure
that processes are upgraded over time.
Sub-tier suppliers (extended
value chains)
For suppliers below Tier 1, where we are
not in a direct commercial relationship,
our activities focus on supply chain
mapping to establish transparency and
traceability to farm or plantation level, to
determine where the material comes from,
and ensure the continuous adherence to
our Supplier Code and Responsible
Sourcing Guideline through Responsible
Sourcing assessments at the origin (farm,
plantation, etc.).
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