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
FP1, Supplier environmental assessment G4-DMA, G4-EN32, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15,
G4-HR6, Supplier human rights assessment G4-DMA, G4-HR10, G4-HR11, Animal welfare G4-DMA, Supplier assessment for impacts on society G4-DMA, G4-SO9, G4-SO10
The results
Our objectives
By 2015 – To both improve and demonstrate
compliance with the Nestlé Supplier Code, and
complete 10 000 Responsible Sourcing Guideline audits,
70% of them with full compliance.
Auditing results
Goal: 10 000 audits by 2020
2015 82%
10 950
Total Tier 1 suppliers audited by end of 2015: 10 950
Percentage of audited suppliers who were fully
compliant: 82%
By 2016 – For Tier 1 suppliers, cover 50% of the total
volume sourced from Responsible Sourcing Guideline
audited Tier 1 suppliers, with 70% compliance.
Nestlé does not have a formal incentivisation programme for
suppliers. However, we work closely with our suppliers to help
them improve their performance and implement corrective
actions where needed. If suppliers refuse to comply with our
audit process or fail to implement corrective action plans, we
reduce our purchases from them or, in some cases, terminate
our relationship.
Suppliers can share audit reports with other members of
the AIM-PROGRESS platform, a forum of 39 consumer goods
manufacturers and suppliers that recognise the audits as a
way to facilitate responsible sourcing and sustainable
production. This helps to promote good practice across the
industry and avoids the need to undergo separate ethical
audits for other customers.
As per our new objective, in 2016, our focus will be on
increasing compliance across our total sourcing activities.
Our auditing programme aims to guide our Tier 1 suppliers
towards full compliance with the Nestlé Supplier Code,
identifying areas where compliance is not yet achieved.
By 2015, we had achieved our objective of 10 000 audits
with at least 70% full compliance (which means no noncompliances
whatsoever). Together, the audited suppliers
account for some 95% of our overall spend.
Each supplier receives a report detailing areas for
improvement and the requirements to achieve compliance.
In all cases of non-compliance, a corrective action plan is
approved, containing detailed measures and timelines to
ensure that practices are improved. Of the 22 704 noncompliances
identified, around 8174 have been addressed
through a range of improvements, such as fitting fire
extinguishers, clearing access to emergency exits, improving
toilet and hand-washing facilities, and providing clean drinking
water. An estimated 1.4 million employees are now benefiting
from better working conditions as a result.
Of the non-compliances being addressed:
• 54.5% are health and safety issues, such as not providing
adequate protective equipment to employees;
• 15.5% are working hours issues, such as working more than
60 hours a week; and
• 41% are accommodation-related issues, such as inadequate
rest facilities or unhygienic toilets.
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