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-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, Local communities G4-DMA, Animal welfare G4-DMA, Supplier assessment for impacts on society G4-DMA, G4-SO9, G4-SO10
Farm animal welfare management ISO
working group
Nestlé is actively involved in an international,
multi-stakeholder working group to develop an ISO
technical specification (TS) on farm animal welfare
management. The goal of the proposed TS is to improve
the living conditions of animals bred and kept for food
production, and to provide a management tool to
facilitate the implementation of the animal welfare
principles of the OIE’s Terrestrial Animal Health Code.
Nestlé representatives contribute to the ISO TS working
group through the Swiss Association for Standardization
(SNV) and SSAFE (Safe and Secure Approaches in Field
Environments), a public–private partnership dedicated to
integrating food safety with animal and plant health. The
working group is expected to develop the draft TS with a
view to a vote in early 2016.
Coffee
We sourced around 10% of the world’s coffee production in
2015 for our coffee brands, including Nescafé and Nescafé
Dolce Gusto. Our coffee is sourced both through trade
channels and through Farmer Connect direct sourcing
channels, representing 211 400 farmers, collectives and
beneficiaries.
The origins of the coffee we purchase vary. Our Nescafé
business has a broad geographical scope covering most of the
coffee belt (which straddles the equator between the tropics
of Cancer and Capricorn) across Latin America, Africa, Asia
and Oceania. Meanwhile, Nespresso permanent Grand Cru
coffees were sourced directly from over 74 000 farmers in 12
countries of origin, across Latin America, East Africa and Asia.
Suppliers are carefully selected for the quality and aromatic
profile of their coffees.
To reflect this variety, our coffee initiatives have been tailormade
to Nespresso as well as Nescafé.
For each contract for green coffee (which is processed and
dried but not roasted), the Nestlé Supplier Code sets out the
social and environmental standards we expect from our
suppliers. We monitor compliance through the use of external
verification or certification schemes, as well as periodic spot
checks at suppliers’ premises.
Coffee supply chain traceability results
849 000 tonnes
56%
Total volume:
849000 tonnes
Percentage of volume
traceable (back to groups
of farms/plantations): 56%
(target: 51%) of which all
were Responsibly Sourced:
56% (target: 51%)
Our long-term ability to source the right quality and quantity of
coffee for our major brands depends on the sustainability of
coffee farming. Ageing trees, plant diseases, declining yields,
volatile prices and climate change are just some of the threats
to the livelihoods of coffee farmers, the vast majority of whom
are smallholders of advanced age with no more than a hectare
or two of land. Coffee growing is also being challenged by
alternative crops considered by growers as better commercial
prospects.
Our initiatives
We support the responsible farming, production, supply and
consumption of coffee through two major schemes:
• The Nespresso AAA Sustainable Quality Program, which
seeks to protect the highest-quality coffees required for
Nespresso Grands Crus, preserve the environment and
enhance farmer welfare; and
• The Nescafé Plan, a global initiative that brings together our
commitments and activities, ranging from on-the-ground
support for the farmers who supply us directly and through
trade channels to the application of plant science to
improve yields and quality.
Both the Nescafé Plan and the Nespresso AAA Sustainable
Quality Program have distinctive features, standards and
requirements that reflect their different business models and
sourcing operations. Nevertheless, all our coffee initiatives
share a commitment to quality, productivity and efficiency,
supported by our Supplier Code.
We are investing CHF 350 million in support of the Nescafé
Plan over the decade 2010–2020. We also take part in a
number of pre-competitive sustainable coffee initiatives,
including the Coffee Working Group of the SAI Platform and
IDH’s SCP, intended to facilitate the development of
sustainable green coffee supplies, and WEF programmes in
Vietnam, Indonesia, Myanmar and Mexico.
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