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, Child labor G4-DMA,
Supplier human rights assessment G4-DMA, Animal welfare G4-DMA
• Sustainable Fisheries Partnership – this international
non-governmental organisation (NGO) is our
implementation partner for our fish and seafood
supply chain, enabling us to roll out the requirements
of our RSG.
• The Forest Trust (TFT) – an international non-profit
organisation that acts as our implementation partner
to help us map our palm oil and paper supply chains,
assess suppliers and develop action plans.
• UTZ – the largest programme for the sustainable
farming of cocoa in the world, covering good
agricultural practices, farm management, social and
living conditions, and the environment.
• Verité – a global NGO that works with companies to
help them understand and tackle labour issues. Nestlé
partnered with Verité in 2015 to tackle labour issues in
the Thai fishing industry.
• World Animal Protection – Nestlé has a global
partnership with this international animal welfare NGO.
We first began working in collaboration with World
Animal Protection in November 2013 to develop our
Responsible Sourcing Assessment protocol on farm
animal welfare in our supply chain and we continue to
work together to assess our suppliers of animalderived
ingredients against our RSG on farm animal
welfare. Read more about animal welfare.
• IDH – the sustainable trade initiative – the IDH
accelerates and scales-up sustainable trade by
creating and convening coalitions of leading
multinationals, civil society organisations,
governments and other stakeholders to drive
sustainability. Nestlé is involved with the IDH
Sustainable Coffee Program (SCP), a pre-competitive,
public–private consortium that aims to address
underinvestment, poor production practices and
adverse climatic conditions in the coffee sector.
Issues in traceability and supply
chain mapping
Achieving transparency and traceability in the supply chains
of our key categories of raw materials and paper presents a
number of common challenges, such as supplier diversity
and supply chain complexity.
For example, where a supply chain has a diversity of
suppliers, it is likely that such an approach for one raw material
in one location will not be the right approach elsewhere,
making it difficult to devise the most appropriate strategy for
implementation and continuous improvement. For example,
in the case of sugar, some supply chains involve large, millowned
plantations; in other situations, there are many
thousands of smallholders with plots of less than a hectare,
who are not bound to a specific mill but have strong ties with
associations or co-operatives. All of these variables and needs
must be taken into account and have input from all relevant
stakeholders for any strategy to be effective.
The shape and complexity of the supply chains for certain
raw materials can also vary considerably between countries.
In Brazil, for example, pulp and paper companies are often
integrated, with forests, mills and converting factories sharing
common ownership. Many are also certified, helping to
demonstrate compliance with our sourcing requirements.
By contrast, supply chains in Malaysia and China are
incredibly complex, with layers of middlemen and traders
between the forest and the mills, which weakens our ability to
influence suppliers. Meanwhile, in India and Indonesia, much
of the packaging for our products uses recycled, rather than
virgin, fibre.
Nestlé Brazil wins supplier
management award
Nestlé Brazil has been rewarded for its excellent management
and relationship practices with partners and suppliers, and the
enhancement of its rural and urban community management.
The Guia EXAME de Sustentabilidada, a sustainability guide
by the bi-weekly magazine EXAME, was created in 2000 to
identify, assess and announce the best corporate social
responsibility initiatives in Brazil and indicate model companies
for such practices. More than 200 Brazilian companies
participated in 2015.
The guide evaluates companies based on 10 key indicators in
terms of economic, social, environmental and general
dimensions. With an overall score of 83.8 points (out of 100),
Nestlé Brazil performed above average in several categories,
including human rights, and supplier and climate change
management. We are supported by independent audit
companies to ensure that our 48 000 suppliers in Brazil comply
with the standards of the Nestlé Supplier Code.
Nestlé Brazil is working closely with farmers on various rural
development programmes. More than 2000 milk producers
participate in the Boas Práticas na Fazenda, where we offer
technical support to improve the quality and safety of milk.
Together with farmers supplying our factory in São José do Rio
Pardo, we seek continuous excellence in the production of
greens and vegetables for our baby food and culinary products.
And, through the Nescafé Plan, we offer technical support to
encourage the development of robusta coffee production in the
state of Espírito Santo.
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