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, Indigenous rights G4-DMA,<br />
Supplier human rights assessment G4-DMA, G4-HR10, G4-HR11, G4-SO2, Animal welfare G4-DMA, Supplier assessment for impacts on <strong>society</strong> G4-DMA, G4-SO9, G4-SO10<br />
A series of reports on the topic, <strong>in</strong>clud<strong>in</strong>g one from Oxfam<br />
<strong>in</strong>to l<strong>and</strong> tenure <strong>and</strong> supply cha<strong>in</strong>s, have explored food <strong>and</strong><br />
beverage companies’ l<strong>and</strong> rights policies relat<strong>in</strong>g to sugar,<br />
palm oil <strong>and</strong> soya. Meanwhile, the Food <strong>and</strong> Agriculture<br />
Organization (FAO) of the United Nations produced Voluntary<br />
Guidel<strong>in</strong>es on the Responsible Governance of Tenure (VGGTs)<br />
of L<strong>and</strong>, Fisheries <strong>and</strong> Forests <strong>in</strong> the Context of National Food<br />
Security.<br />
In <strong>our</strong> <strong>Nestlé</strong> Commitment on L<strong>and</strong> & L<strong>and</strong> Rights <strong>in</strong><br />
Agricultural Supply Cha<strong>in</strong>s, we adopt the FAO VGGTs, <strong>and</strong><br />
commit both to zero tolerance for l<strong>and</strong> grabs, <strong>and</strong> to hold<strong>in</strong>g<br />
suppliers accountable for community l<strong>and</strong> rights. In short, we<br />
commit to s<strong>our</strong>ce <strong>our</strong> raw materials from l<strong>and</strong> that has not<br />
been illegally or unfairly taken. We advocate for others to do<br />
likewise, <strong>and</strong> work with a range of stakeholders to help the<br />
l<strong>and</strong>less ga<strong>in</strong> access to l<strong>and</strong>, with a focus on tenure for<br />
women.<br />
We have participated <strong>in</strong> a multi-stakeholder process hosted<br />
by the Rights <strong>and</strong> Res<strong>our</strong>ces Initiative <strong>and</strong> the Interlaken<br />
Group, which has developed operational guidel<strong>in</strong>es for<br />
companies to operationalise the VGGTs.<br />
The work of <strong>our</strong> partners, such as TFT <strong>and</strong> Proforest,<br />
<strong>in</strong>cludes assessments of <strong>our</strong> suppliers – <strong>and</strong> their suppliers –<br />
to determ<strong>in</strong>e the status of l<strong>and</strong> ownership <strong>and</strong> any l<strong>and</strong><br />
conflicts, <strong>and</strong> to ensure that the pr<strong>in</strong>ciples of Free, Prior <strong>and</strong><br />
Informed Consent (FPIC) are applied dur<strong>in</strong>g the due diligence<br />
process that leads to any new l<strong>and</strong> acquisition.<br />
Farm animal health <strong>and</strong> welfare <strong>in</strong> the supply cha<strong>in</strong><br />
<strong>Nestlé</strong> recognises <strong>and</strong> shares the concerns of <strong>our</strong> stakeholders<br />
about the welfare of animals raised for food <strong>and</strong> the need to<br />
ensure susta<strong>in</strong>able animal production systems. Through <strong>our</strong><br />
Supplier Code <strong>and</strong> RSG, which conta<strong>in</strong> a specific commitment<br />
on this issue, we are help<strong>in</strong>g to br<strong>in</strong>g about positive change<br />
throughout <strong>our</strong> supply cha<strong>in</strong>s.<br />
In <strong>2015</strong>, <strong>Nestlé</strong> cont<strong>in</strong>ued to build on its public commitment<br />
to cont<strong>in</strong>uously improve the health, care <strong>and</strong> welfare of farm<br />
animals <strong>in</strong> <strong>our</strong> global supply cha<strong>in</strong>.<br />
Our m<strong>and</strong>atory <strong>Nestlé</strong> Supplier Code requires each of <strong>our</strong><br />
suppliers of animal-derived <strong>in</strong>gredients to meet all applicable<br />
laws <strong>and</strong> regulations on animal welfare, <strong>and</strong> to communicate<br />
this to their suppliers <strong>and</strong> to the farmers themselves. To further<br />
improve the health, care <strong>and</strong> welfare of the farm animals <strong>in</strong> <strong>our</strong><br />
supply cha<strong>in</strong> – <strong>and</strong> to meet the expectations of <strong>our</strong> consumers<br />
<strong>and</strong> stakeholders – we have <strong>our</strong> <strong>Nestlé</strong> Commitment on Farm<br />
Animal Welfare. We are committed to elim<strong>in</strong>at<strong>in</strong>g from <strong>our</strong><br />
global supply cha<strong>in</strong> specific practices that are not consistent<br />
with the <strong>in</strong>ternationally accepted Five Freedoms:<br />
• Freedom from hunger, thirst <strong>and</strong> malnutrition;<br />
• Freedom from fear <strong>and</strong> distress;<br />
• Freedom from physical <strong>and</strong> thermal discomfort;<br />
• Freedom from pa<strong>in</strong>, <strong>in</strong>jury <strong>and</strong> disease; <strong>and</strong><br />
• Freedom to express normal patterns of behavi<strong>our</strong>.<br />
We fully support the work of the World Organisation for<br />
Animal Health (OIE) <strong>in</strong> promot<strong>in</strong>g the implementation of these<br />
Five Freedoms <strong>in</strong> the global supply cha<strong>in</strong>. <strong>Nestlé</strong> will also<br />
support the development <strong>and</strong> implementation of sciencebased<br />
<strong>in</strong>ternational st<strong>and</strong>ards <strong>and</strong> guidel<strong>in</strong>es by OIE.<br />
Among the specific practices we have committed to<br />
elim<strong>in</strong>at<strong>in</strong>g are:<br />
• For cattle: dehorn<strong>in</strong>g; tail dock<strong>in</strong>g, disbudd<strong>in</strong>g <strong>and</strong><br />
castration without anaesthetic <strong>and</strong> analgesia; <strong>and</strong> veal<br />
crates;<br />
• For pigs: gestation crates; tail dock<strong>in</strong>g; <strong>and</strong> surgical<br />
castration;<br />
• For poultry <strong>and</strong> eggs: cage systems, particularly barren<br />
cages; <strong>and</strong> rapid-growth practices with respect to the<br />
effects on animal health <strong>and</strong> welfare; <strong>and</strong><br />
• For animal production systems <strong>in</strong> general: <strong>our</strong> first focus is<br />
the responsible use of antibiotics <strong>in</strong> l<strong>in</strong>e with the OIE’s<br />
guidance, <strong>and</strong> the phas<strong>in</strong>g out of growth promoters.<br />
The <strong>Nestlé</strong> Commitment on Farm Animal Welfare serves as the<br />
basis of <strong>our</strong> Responsible S<strong>our</strong>c<strong>in</strong>g requirements on meat,<br />
poultry <strong>and</strong> eggs <strong>and</strong> dairy-based foods <strong>and</strong> beverages. We<br />
have a partnership with World Animal Protection to implement,<br />
ref<strong>in</strong>e <strong>and</strong> strengthen <strong>our</strong> Responsible S<strong>our</strong>c<strong>in</strong>g requirements.<br />
We aim for <strong>our</strong> suppliers to demonstrate cont<strong>in</strong>uous<br />
improvement <strong>in</strong> meet<strong>in</strong>g <strong>our</strong> RSG. We have been work<strong>in</strong>g with<br />
a number of <strong>our</strong> suppliers to trace <strong>our</strong> animal-derived<br />
<strong>in</strong>gredients back to farm. This <strong>in</strong>cludes farm-level assessments<br />
conducted by an <strong>in</strong>dependent third-party audit firm, SGS, to<br />
make sure that <strong>our</strong> requirements on farm animal health, care<br />
<strong>and</strong> welfare are be<strong>in</strong>g met. Several hundred assessments have<br />
been carried out s<strong>in</strong>ce 2014 to ensure compliance with <strong>our</strong><br />
RSG, with World Animal Protection present at a number of<br />
these visits. In <strong>2015</strong>, we reported the f<strong>in</strong>d<strong>in</strong>gs of these<br />
assessments <strong>in</strong> <strong>our</strong> Progress Report on Responsible S<strong>our</strong>c<strong>in</strong>g<br />
of Dairy, Meat, Poultry & Eggs, <strong>and</strong> carried out around 360<br />
further assessments dur<strong>in</strong>g the year. World Animal Protection<br />
supports <strong>Nestlé</strong> through shar<strong>in</strong>g their expertise on farm animal<br />
health, care <strong>and</strong> welfare, <strong>and</strong> tra<strong>in</strong><strong>in</strong>g SGS auditors on animal<br />
health <strong>and</strong> welfare matters, while we provide them with the<br />
opportunity to engage further with suppliers <strong>and</strong> to promote<br />
good farm animal welfare practices with<strong>in</strong> the food <strong>in</strong>dustry.<br />
Bus<strong>in</strong>ess Benchmark on Farm Animal Welfare<br />
In recent years, we have contributed to the stakeholder<br />
consultation process on the Bus<strong>in</strong>ess Benchmark on<br />
Farm Animal Welfare (BBFAW), a global measure of<br />
animal welfare st<strong>and</strong>ards <strong>in</strong> food companies supported<br />
by World Animal Protection <strong>and</strong> Compassion <strong>in</strong> World<br />
Farm<strong>in</strong>g. In <strong>2015</strong>, <strong>Nestlé</strong> rema<strong>in</strong>ed <strong>in</strong> the ‘Tier 3:<br />
Established but work to be done’ rank<strong>in</strong>g, <strong>in</strong>dicat<strong>in</strong>g that<br />
farm animal welfare is an ‘established’ part of <strong>our</strong><br />
bus<strong>in</strong>ess, but that there are areas for improvement.<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> 114