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, G4-EC8, Procurement practices G4-DMA, FP2, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15,
G4-HR5, G4-HR10, Local communities G4-DMA, G4-SO9, G4-SO10
Reviving coffee production in
South Sudan
Traceability in the supply chain
Cocoa supply chain traceability results
In 2015, Nespresso launched Suluja ti South Sudan (‘beginning
of South Sudan’), the first-ever coffee to be exported from
South Sudan and the country’s first significant non-oil export
in a generation. This represents a positive step towards
rebuilding the country’s economy, which was shattered by
conflict. Nespresso became the first major coffee company to
re-enter South Sudan in 2011, though the coffee industry was
largely destroyed during the conflict: trees needed replanting,
farmers required basic equipment and commercial
infrastructure needed developing. To address these issues and
revive coffee production, Nespresso collaborates with partner
TechnoServe and the Ministry of Agriculture, Forestry,
Co-operatives and Rural Development.
To date, Nespresso has invested more than CHF 700 000 in
reviving the coffee industry in the Yei region of the country.
The company aims to invest CHF 2.5 million in the coming
years and to expand the programme to include several
thousand farmers by 2020. Focusing on Yei, the hub of the
country’s coffee production, the programme aims to help
smallholder coffee farmers to improve yields and quality.
Specific initiatives include a coffee replanting programme,
implementing centrally located wet mills, providing agronomy
training, and developing commercial channels for sales and
exports. Six coffee co-operatives have been established,
around 900 farmers have so far received support and training,
and six wet mills have been put in place. Farmers delivering
their coffee to the wet mills have earned a 40% premium over
the local market price.
Suluja ti South Sudan became available for the first time in
October 2015 to Nespresso Club Members in France, albeit in
limited volumes. Nespresso sees this as a long-term investment
in helping revive South Sudan’s coffee industry and does not
expect to make a return on investment for many years.
However, Nespresso believes the project has the potential to
stimulate significant economic growth in the region.
Cocoa
I have seen that there is great change within the
community. We want to produce the right quality.
People now have hope. We will be able to pay school
fees for children and in the end develop the country.”
Joseph Malish Thomas, Farmer, South Sudan
Cocoa, the most important ingredient in chocolate, is grown in
remote rural regions by more than 4.5 million farmers, and
Nestlé uses around 10% of the world’s production. Major
cocoa-growing countries include Côte d’Ivoire, Ghana, Brazil,
Ecuador, Venezuela, Mexico and Indonesia.
This year, we purchased 400 000 tonnes of cocoa. Of this,
some 121 481 tonnes (30%) was sourced through the Nestlé
Cocoa Plan.
The Nestlé Cocoa Plan
Our commitment
400 000 tonnes
30%
Roll out the Nestlé Cocoa Plan with
cocoa farmers
The Nestlé Cocoa Plan seeks to address key challenges within
the cocoa supply chain. In particular, it aims to improve the
profitability of cocoa farmers and help secure a long-term supply
of high-quality cocoa for our business, while addressing issues
surrounding gender inequality and child labour (see Human
rights and compliance for more details about our work to identify
and eliminate child labour from our cocoa supply chain).
The pillars of the Nestlé Cocoa Plan
Activities fall under three main pillars:
Enabling farmers to
run profitable farms,
through:
• Farmer training;
• Higher-yielding
cocoa plants;
• Access to better
inputs; and
• Rewarding farmers
for good-quality
cocoa.
Improving social
conditions by:
• Assisting with
solutions for
identified cases of
child labour, with
practical help for
children, mothers
and communities,
such as school
building;
• Promoting gender
equality; and
• Water and
sanitation provision.
Total volume:
400000 tonnes
Percentage of volume
traceable: 30% (2015
target: 25%) of which all
were Responsibly Sourced:
30% (2015 target: 25%)
Long-term supply of
sustainable, quality
cocoa by:
• Building long-term
supply chain
relationships;
• Supply chain
transparency to
farmer group; and
• Respecting the
environment and
avoiding
deforestation.
Underlying these pillars is a multi-stakeholder approach based
on transparency and collaboration with partners, in which we
work with partners such as WCF’s CocoaAction, the Fair
Labor Association, UTZ Certified, Fairtrade, IDH, local NGOs
and research organisations.
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