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, G4-EN32, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15, Supplier human rights assessment G4-DMA, G4-HR10,
Animal welfare G4-DMA, Supplier assessment for impacts on society G4-DMA, G4-SO9, G4-SO10
Our commitment
Implement responsible sourcing in our
supply chain
Nestlé’s Responsible Sourcing activities work across three
strands –
• Farmer Connect: farmers and co-operatives through whom
we buy materials directly;
• Tier 1 suppliers: suppliers with whom we deal directly; and
• Sub-tier suppliers: who supply our suppliers and from
whom we do not buy directly.
The Nestlé RSG sets out the acceptable means of verification
and what constitutes the definition of ‘Responsibly Sourced’.
Our Responsible Sourcing activities define ingredients against
these two benchmarks:
• Responsibly Sourced: where places of origin are assessed
against our RSG requirements and found to be compliant,
or corrective action plans are developed (or equivalent
standards implemented); and
• Traceable: where ingredients we buy are identified back to
their places of origin, such as mill, plantation or farm.
Tier 1 auditing
Nestlé’s auditing of Tier 1 suppliers began in 2010. The
purpose of the audits is to verify how a material or service is
produced and to drive our direct suppliers’ continuous
progress towards full compliance with our Supplier Code. All
new suppliers are screened when entering into a business
relationship with Nestlé, and signing the code is an integral
part of our mandatory vendor approval process.
The process
Suppliers are required to arrange and host an ethical audit to
show they are adhering to national and international laws and
standards, and the minimum standards set out in our Supplier
Code. These take place across all categories (raw, packaged,
etc.) globally.
Audits are carried out by approved independent verification
firms, using either the Sedex Members Ethical Trade Audit
(SMETA) 4 Pillars guideline for most of the production facilities
or the EcoVadis methodology for certain services suppliers.
The topics assessed reflect best practice in labour standards,
health and safety, the environment and business ethics.
Because of the scale of our global operations and the vast size
of our supply chains, our Responsible Sourcing activities
continue to focus on 12 priority categories: palm oil, soya, sugar,
pulp and paper, coffee, cocoa, dairy, fish and seafood, shea (to
be replaced by cereals in 2016), vanilla, hazelnuts, and meat,
poultry and eggs.
The audit process
3 Resolution
If any gaps are identified in
relation to our standards, we
support the supplier to close
these by working together on
an agreed course of action.
If a supplier doesn’t improve
its practices within an agreed
timeframe, we remove them
from our supply chain and look
to establish new partnerships
with other suppliers.
1 Site visit
Site visits take place on a
rolling basis, using consistent
audit criteria covering:
• Labour standards;
• Safety and health;
• Environment; and
• Business integrity.
2 Report
Following a site visit, the
auditor* provides a report for
the supplier and for Nestlé,
identifying any issues of
non-compliance.
* Leading verification firms
Bureau Veritas, Intertek and SGS.
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