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
G4-12, G4-EC7, Procurement practices G4-DMA, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15,
Supplier human rights assessment G4-DMA, G4-HR10, G4-HR11, Supplier assessment for impacts on society G4-DMA, G4-SO9, G4-SO10
Our priority sourcing categories
Mapping our extended supply chains across priority categories of ingredients and materials is a long-term
process. Working together with specialist partners and other agencies, we’re making steady progress but as each
supply chain presents its own set of challenges, we also need to define, develop and implement strategies to
address such complex issues as women’s empowerment and deforestation. Our progress towards having
traceable and Responsibly Sourced raw materials in each of our 12 priority categories is summarised in the table
below. These categories are then covered in detail in the rest of the chapter, as are the major challenges that arise
across our supply chains.
Traceable 2015 Responsibly Sourced 2015
Commodity Target (%) Actual (%) Level of traceability Target (%) Actual (%)
Coffee 56.0 56.0 Back to group of farms/plantations n/a 56.0
Cocoa 30.0 30.0 Back to plantation 25.0 30.0
Dairy 50.0 59.0 Back to farm 45.0 55.0
Palm oil 95.0 90.0 Back to mill 70.0 47.0
Pulp and paper 70.0 74.0 Back to the forest 60.0 55.0
Soya 50.0 55.5 At least back to mill 35.0 42.9
Sugar 60.0 60.9 At least back to mill 40.0 40.3
Shea 0.0 0.0 Back to co-operative 0.0 0.0
Hazelnuts 60.0 65.0 Back to farm 20.0 20.0
Vanilla 95.0 95.0 Back to plantation 40.0 40.0
Meat, poultry and eggs 11.6 8.7 Back to farm 6.7 3.4
Fish and seafood 60.0 60.0 Back to boat/aquaculture 30.0 55.2
All categories 40.0 54.0 All categories 30.0 43.0
Challenges in the supply chain
Across the supply chains for our priority ingredients and
materials, there are a number of serious issues and challenges
that we are working to address and, where possible, eliminate.
Inevitably we have to prioritise such issues, and our approach
to this takes into account a number of elements, such as
volumes sourced, risks associated with the supply chain and
the influence we will have within those markets. In many
cases, the issues are larger than we can tackle by ourselves,
so we work with a range of partner organisations to tackle the
issues on the ground and ensure the standards we set are
adhered to throughout the supply chain.
Labour conditions
Labour conditions are a challenge across several supply chains,
including sugar, hazelnuts, vanilla, and fish and seafood,
although the specific issues vary from one ingredient to another.
The most widespread and serious issue in both the sugar and
the hazelnut supply chains is safe and healthy working
conditions for labourers and, in particular, the many temporary
migrant workers employed during the harvest period.
For many of these workers and their families, especially the
hundreds of thousands of Kurdish families from southern
Turkey who harvest hazelnuts, seasonal work is sometimes the
only means of survival. The specific issues they face include:
limited access to sanitation and potable water; overcrowding
and lack of personal space and privacy; children not receiving
education; and limited knowledge of safe working practices,
such as the appropriate use, storage and disposal of
chemicals. A lack of employment records, compensation
discrimination and harassment are also issues that occur.
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