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, Child labor G4-DMA, Supplier human rights assessment G4-DMA, Animal welfare G4-DMA
The results
Our objectives
By 2015 – 40% of the volumes of the 12 priority
categories (palm oil, soya, sugar, pulp and paper, coffee,
cocoa, dairy, fish and seafood, shea, vanilla, hazelnuts,
and meat, poultry and eggs) to be traceable.
Traceability and assessment results
14.4 million tonnes
54%
43%
Total volume in scope:
14.4 million tonnes
Percentage of volume
traceable: 54%
(target: 40%)
Percentage of
traceable volume
Responsibly Sourced:
43% (target: 30%)
By 2016 – For upstream, 50% of the volume of our
12 priority categories to be traceable.
Inevitably, some categories of raw material are making faster
progress than others. For example, around 95% of the vanilla
flavours we procure are traceable, while for other categories,
such as meat, poultry and eggs, and fish and seafood, supply
chains are more complex and progress will consequently be
slower. However, we are confident that our ongoing activities
will enable us to make further progress in improving
traceability in 2016, and have introduced a new objective to
measure progress.
Partnerships, assurance and verification
Our supplier network is vast, which means that mapping our
major supply chains is a significant undertaking that we can’t
do alone. We have, therefore, built partnerships with a number
of expert organisations to help us, by:
• Developing category-specific requirements;
• Acting as implementation partners on the ground, carrying
out field assessments against our social and environmental
requirements;
• Addressing any issues through technical assistance and
training; and
• Carrying out their own independent verifications to ensure
they meet their respective standards.
• 4C Association – Nestlé is a founding member of the
4C (Common Code for the Coffee Community)
Association, a multi-stakeholder group designed to
improve efficiency, profitability, transparency and
sustainability in the production, processing and
trading of coffee through training and verification.
• Fair Labor Association (FLA) – a collaborative effort of
universities, civil society organisations and socially
responsible companies dedicated to protecting
workers’ rights and supporting companies to
voluntarily meet internationally recognised labour
standards. Guided by the FLA’s findings, we have
continued to work on addressing child labour issues in
the harvesting of hazelnuts in Turkey and cocoa
farming in Côte d’Ivoire (see Human rights and
compliance), as well as assessing the role of women in
the cocoa supply chain. The FLA has also advised us in
the development of the Rural Development Framework.
• Fairtrade International – Fairtrade International
coordinates Fairtrade labelling at an international level,
sets international standards and helps producers
around the world to gain Fairtrade certification. The
organisation has set up a pilot of the Nespresso AAA
Farmer Future Program, an initiative to enhance farmer
welfare through the creation of a retirement fund, in
Colombia.
• Global Good – a collaborative effort between Bill Gates
and Intellectual Ventures that assesses our dairy
supply chain in Kenya, Zimbabwe and Indonesia, to
identify how technology might address gaps in water,
nutrition and rural development. Our agreement will
focus on increasing the agricultural productivity of
smallholder dairy farmers in East Africa through
technology innovation.
• Proforest – an independent, non-profit organisation
specialising in natural resources acts as our delivery
partner for mapping our soya and sugar supply chains,
assessing suppliers and developing action plans.
• Rainforest Alliance – we partnered with the Rainforest
Alliance to help us deliver the Nescafé Plan and
develop our Rural Development Framework. It also
co-created the Nespresso AAA Sustainable Quality
Program and helps us to deliver it on the ground.
• Sustainable Agriculture Initiative Platform – we
co-founded this global food industry initiative with
Danone and Unilever to promote sustainable
agriculture at field level through six working groups
(cereals; coffee; dairy; fruit; potatoes and vegetables;
and water and agriculture).
• Solidaridad – our Rural Development Framework was
developed with the assistance of this international civil
society organisation. We have also contributed to a
project to improve the food security of coffee farmers
in Kenya and Ethiopia.
continued...
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