Nestlé in society Creating Shared Value and meeting our commitments 2015
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<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />
Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />
Nutrition, health<br />
<strong>and</strong> wellness<br />
Rural development<br />
Water<br />
Environmental<br />
susta<strong>in</strong>ability<br />
Human rights<br />
<strong>and</strong> compliance<br />
Our<br />
people<br />
G4-EC7, Procurement practices G4-DMA, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15, Child labor G4-DMA,<br />
Indigenous rights G4-DMA, G4-HR8, G4-HR9, Supplier human rights assessment G4-DMA, G4-HR10, G4-HR11, G4-SO2, Supplier assessment for impacts on <strong>society</strong> G4-DMA, G4-SO9, G4-SO10<br />
Our partner Proforest has carried out a number of<br />
assessments for sugar <strong>and</strong> soya that have identified ways of<br />
help<strong>in</strong>g farmers implement best practices <strong>and</strong> take remedial<br />
actions to correct issues.<br />
Forced lab<strong>our</strong>, safety <strong>and</strong> other social issues also occur <strong>in</strong><br />
palm oil production, <strong>and</strong> there are further lab<strong>our</strong> concerns <strong>in</strong><br />
the fish <strong>and</strong> seafood supply cha<strong>in</strong>. We are fully committed to<br />
ensur<strong>in</strong>g that <strong>our</strong> products are not associated with forced<br />
lab<strong>our</strong> through <strong>our</strong> m<strong>and</strong>atory <strong>Nestlé</strong> Supplier Code <strong>and</strong> RSG,<br />
which requires all of <strong>our</strong> suppliers to respect human rights <strong>and</strong><br />
to comply with all applicable lab<strong>our</strong> laws. In the case of fish<br />
<strong>and</strong> seafood, we are, for example, engag<strong>in</strong>g with <strong>our</strong> suppliers<br />
<strong>in</strong> Thail<strong>and</strong> to identify any potential unlawful lab<strong>our</strong> practices<br />
<strong>and</strong> pursue appropriate actions to elim<strong>in</strong>ate such practices<br />
from <strong>our</strong> supply cha<strong>in</strong>, as well as work<strong>in</strong>g alongside the Thai<br />
Government <strong>and</strong> the ILO.<br />
Read more about <strong>Nestlé</strong>’s position on this issue <strong>in</strong> the<br />
<strong>Nestlé</strong> Commitment on Lab<strong>our</strong> Rights <strong>in</strong> Agricultural<br />
Supply Cha<strong>in</strong>s.<br />
Child lab<strong>our</strong><br />
Child lab<strong>our</strong> has been identified as an issue <strong>in</strong> <strong>our</strong> hazelnut,<br />
vanilla <strong>and</strong> cocoa supply cha<strong>in</strong>s. We are committed to<br />
elim<strong>in</strong>at<strong>in</strong>g child lab<strong>our</strong> from all <strong>our</strong> supply cha<strong>in</strong>s. Read more<br />
about how <strong>Nestlé</strong> is tackl<strong>in</strong>g this issue <strong>in</strong> Human rights <strong>and</strong><br />
compliance.<br />
Gender <strong>in</strong>equality<br />
Gender <strong>in</strong>equality <strong>and</strong> discrim<strong>in</strong>ation rema<strong>in</strong> widespread, <strong>and</strong><br />
the contribution – both direct <strong>and</strong> <strong>in</strong>direct – of women <strong>in</strong> the<br />
supply cha<strong>in</strong> often goes unrecognised, unrewarded <strong>and</strong><br />
unrecorded. In <strong>our</strong> cocoa supply cha<strong>in</strong>, for example, they<br />
perform many tasks, from plant<strong>in</strong>g seedl<strong>in</strong>gs <strong>and</strong> collect<strong>in</strong>g<br />
cocoa pods to transport<strong>in</strong>g, ferment<strong>in</strong>g <strong>and</strong> dry<strong>in</strong>g the cocoa,<br />
but men often take responsibility for sell<strong>in</strong>g the cocoa, <strong>and</strong> the<br />
distribution of any f<strong>in</strong>ancial compensation. And even when<br />
they comb<strong>in</strong>e this <strong>in</strong>come with additional activities, such as<br />
grow<strong>in</strong>g other food crops, most women struggle to earn<br />
enough to ma<strong>in</strong>ta<strong>in</strong> an acceptable st<strong>and</strong>ard of liv<strong>in</strong>g.<br />
Other barriers fac<strong>in</strong>g women <strong>in</strong>clude communities<br />
recognis<strong>in</strong>g male-only l<strong>and</strong> ownership, the near-absence of<br />
women <strong>in</strong> leadership or managerial roles <strong>in</strong> cocoa cooperatives,<br />
<strong>and</strong> a lack of health <strong>and</strong> safety awareness <strong>and</strong><br />
access to tra<strong>in</strong><strong>in</strong>g <strong>and</strong> protective equipment. Our Action Plan<br />
on Women <strong>in</strong> the Cocoa Supply Cha<strong>in</strong> sets out to address<br />
these issues.<br />
Deforestation<br />
Deforestation is a major environmental issue that has long<br />
been associated with the palm oil, pulp <strong>and</strong> paper, <strong>and</strong> soya<br />
supply cha<strong>in</strong>s <strong>in</strong> particular, <strong>and</strong> also affects sugar production.<br />
Poor forest management <strong>and</strong> the loss of High Conservation<br />
<strong>Value</strong> (HCV) areas still rema<strong>in</strong> a challenge. Ris<strong>in</strong>g consumer<br />
dem<strong>and</strong> means tropical ra<strong>in</strong>forests <strong>and</strong> associated peatl<strong>and</strong>s<br />
have been cleared to make way for plantations, which<br />
contribute to greenhouse gas emissions, soil erosion, water<br />
pollution <strong>and</strong> a loss of biodiversity; work<strong>in</strong>g conditions <strong>and</strong><br />
l<strong>and</strong> conflicts over tenure rights are also an issue. Many NGOs<br />
actively campaign aga<strong>in</strong>st unsusta<strong>in</strong>able practices.<br />
In 2010, <strong>Nestlé</strong> made a ‘no deforestation’ commitment,<br />
stat<strong>in</strong>g that all of its products, globally, will not be associated<br />
with deforestation by 2020 (<strong>Nestlé</strong> also supports the<br />
Consumer Goods Forum’s ambition for zero net deforestation<br />
by 2020). This commitment was the first of its k<strong>in</strong>d by a food<br />
company, <strong>and</strong> covers all the raw materials we use to make <strong>our</strong><br />
foods <strong>and</strong> beverages, as well as <strong>our</strong> packag<strong>in</strong>g, mak<strong>in</strong>g<br />
traceability <strong>and</strong> transparency crucial. A significant number of<br />
traders <strong>and</strong> manufacturers have s<strong>in</strong>ce followed <strong>our</strong> lead <strong>and</strong><br />
developed susta<strong>in</strong>able palm oil policies <strong>and</strong> ‘no deforestation’<br />
<strong>commitments</strong> of their own. With<strong>in</strong> the soya supply cha<strong>in</strong>, we<br />
work with Proforest to identify, categorise <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong> highrisk<br />
zones. In the Cerrado area of Brazil, for example, we only<br />
s<strong>our</strong>ce products from l<strong>and</strong> that has not been converted from<br />
HCV areas to other l<strong>and</strong> use.<br />
We are also develop<strong>in</strong>g <strong>and</strong> shar<strong>in</strong>g tools to enable<br />
smallholder farmers to avoid deforestation <strong>and</strong> the loss of<br />
natural vegetation, <strong>and</strong> f<strong>in</strong>d<strong>in</strong>g ways to help them m<strong>in</strong>imise<br />
water consumption. In the sugar supply cha<strong>in</strong>, for <strong>in</strong>stance,<br />
remediation activities are implemented <strong>in</strong> conjunction with a<br />
network of local delivery partners <strong>in</strong> specific countries, who<br />
can br<strong>in</strong>g additional local knowledge to the process.<br />
L<strong>and</strong> acquisition: respect<strong>in</strong>g the rights of local <strong>and</strong><br />
<strong>in</strong>digenous peoples<br />
L<strong>and</strong> tenure is one of the eight key areas that are <strong>in</strong>cluded <strong>in</strong><br />
<strong>our</strong> Rural Development Framework <strong>and</strong> we are gather<strong>in</strong>g data<br />
<strong>and</strong> <strong>in</strong>sights on the status of farmers’ property rights.<br />
Secure rights to l<strong>and</strong> <strong>and</strong> natural res<strong>our</strong>ces are essential to<br />
rural development. They help to reduce uncerta<strong>in</strong>ties <strong>and</strong><br />
facilitate long-term <strong>in</strong>vestment; <strong>in</strong> contrast, <strong>in</strong>secure l<strong>and</strong><br />
rights lead to poverty, l<strong>and</strong> degradation <strong>and</strong> forest conversion.<br />
Our efforts to improve l<strong>and</strong> rights were recognised when we<br />
were awarded the <strong>in</strong>dustry-lead<strong>in</strong>g score for this category <strong>in</strong><br />
Oxfam’s <strong>2015</strong> Beh<strong>in</strong>d the Br<strong>and</strong> rank<strong>in</strong>gs.<br />
<strong>Nestlé</strong> does not directly acquire or lease agricultural l<strong>and</strong>,<br />
though we do acquire l<strong>and</strong> for factory sites <strong>and</strong> a small number<br />
of demonstration farms. However, we do buy <strong>in</strong>gredients such<br />
as palm oil, soya <strong>and</strong> sugar, which are some of the common<br />
raw materials driv<strong>in</strong>g l<strong>and</strong> acquisition <strong>and</strong> ‘l<strong>and</strong> grabb<strong>in</strong>g’.<br />
<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 113