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
Traceability and assessments
The second component of our Responsible Sourcing activities
is traceability and assessments. This involves mapping our
supply chains back to the primary producer to identify where
the material originally comes from. It is a major undertaking,
especially with certain ingredients, such as meat and seafood,
which have very complex supply chains that may lack
transparency. Traceability and transparency are, therefore,
essential in enabling us to assess whether our sub-tier
suppliers, with whom we do not have a direct commercial
relationship, are meeting our ethical and sustainability
requirements.
All Nestlé suppliers are required to meet our requirements.
However, we recognise that supply chain transformation
cannot be achieved overnight so, where appropriate, we
support suppliers who are not able to meet the RSG
immediately but are committed to eliminating noncompliances
over time. Progress against these action plans is
monitored and regularly reported.
Traceability and assessment process
4 Monitoring & compliance
We re-assess the completion of
identified issues to ensure standards
are implemented and maintained,
before starting the process with a
new pool of suppliers.
1 Engagement & mapping
We ask our direct suppliers to
work with us to map our upstream
supply chains back to origin.
3 Continuous
development plans
We work with suppliers to improve
farm and plantation performance
and implement development
programmes to tackle the issues
identified.
2 Guidelines
We work with expert partners
to develop specific RSGs
and assess practices at the
material’s place of origin.
The process
By mapping our supply chains back to origin, we can engage
with the supplier and perform assessments on the ground to
check alignment with the Nestlé Responsible Sourcing
Guideline. Where necessary, we can then work with suppliers
to address any issues identified and support them through
action plans to enable them to meet our requirements.
To answer a question asked by our consumers – namely,
‘Where does this food come from?’ – Nestlé uses a Supply
Chain Management programme operated by Achilles Ltd. This
programme provides Nestlé suppliers and their sub-suppliers
with a cost-effective, time-efficient and secure online process
to trace their ingredients back to their places of origin.
Supply chain mapping is an integral requirement of Nestlé’s
Responsible Sourcing Traceability Operations and is governed
by the Nestlé Supplier Code. The main objectives of the Supply
Chain Mapping programme are to:
• Develop a comprehensive picture of the extended supply
chain, right down to the farm level;
• Gain a better understanding of the suppliers that contribute
to the products sold by Nestlé; and
• Create a single, reliable online data source of supply chain
mapping information that can be accessed centrally and is
maintained annually and securely by an independent
third party.
The programme is being rolled out across our global supply
base using a phased approach, founded on regions and
product categories. Participation is, therefore, on an invitation
basis only.
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