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, FP2, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA,
G4-LA15, G4-HR10, Animal welfare G4-DMA, G4-SO9, G4-SO10
Farmer Help Camps
Nestlé Pakistan procures fresh milk from 150 000 farmers,
either directly or through third parties. Most farmers have four
to five animals, with an average milk production of fewer than
eight litres per day for cows and four litres for buffalo, which
means there are significant opportunities to increase yields and
farmers’ incomes.
After the 2010 floods that destroyed crops and left many
people in Pakistan homeless, Nestlé initiated Farmer Help
Camps, bringing food, relief and financial support to more than
50 000 people. To help farmers rebuild agricultural capacity,
Nestlé funded a vaccination programme for 300 000 animals,
and provided advice on animal husbandry and fodder
production.
Following their success, Farmer Help Camps have
continued to be rolled out, with veterinary and agronomy
specialists visiting villages to support and train farmers and
raise awareness of good agricultural practices. Specialists
organise one or two Farmer Help Camps weekly. Activities
include animal vaccinations and/or deworming, advice on
using animal drugs; introducing low-cost, quality concentrate
animal feed; advice on fodder production and fertiliser use;
disseminating information on good practices; organising
awareness camps at schools; and helping farmers prepare for
future disasters.
Since 2010, around 17 000 camps have been held, with a
total attendance of nearly 330 000 participants.
Procurement of milk derivatives
Nestlé buys a large quantity of milk derivatives, such as whey
protein, lactose, cheese and milk powders. These are used in
many applications, including healthcare products, beverage
mixes, ready-to-drink milk and infant formula.
The best raw materials are vital in foods and beverages for
mothers and infants. Infants and young children are much
more sensitive to contaminants because their organs and
immune systems are not fully developed and their diets are
less varied than those of adults. While infant nutrition is tightly
regulated around the world, guidelines and requirements differ
between countries. However, we often go beyond local
legislation: the dairy-based ingredients we use in our baby
food must comply with our own global standards, which are
among the strictest in the world, and must be 100% traceable.
Verification and certification
We work with independent auditor, SGS, for dairy foods (as
well as for meat, poultry and eggs. SGS conducts farm
assessments in our suppliers’ upstream supply chains against
our RSG, with a focus on farm animal welfare, labour practices
and environmental impacts. It uses the Responsible Sourcing
Assessment protocol we developed with World Animal
Protection.
• In 2015, 130 dairy farm assessments were carried out
worldwide. Issues found ranged from missing
documentation (e.g. training and fertiliser application
records) to issues concerning painful procedures, such as
thermal disbudding without local anaesthetic; and
• Some of SGS’s assessments were attended by
representatives from World Animal Protection, who also
support Nestlé in training SGS auditors on animal health
and welfare issues. Six training sessions were delivered by
our Global Procurement Team to 40 SGS auditors in 2015,
covering Nestlé’s RSG requirements and the assessment
process, while World Animal Protection conducted training
on farm animal welfare. We are gradually implementing our
RSG and category-specific requirements along our global
supply chains. These reinforce our specific commitments on
farm animal welfare, and cover breeding, feeding, housing
and husbandry, health, transport and slaughtering.
Traceability in the supply chain
By the end of 2015, we had made good progress on
traceability and Responsible Sourcing for dairy products.
Dairy supply chain traceability results
Palm oil
7 million tonnes
59%
52%
Total volume:
7 million tonnes
Percentage of volume
traceable: 59%
(2015 target: 50%)
Percentage of volume
Responsibly Sourced: 52%
(2015 target: 45%)
We bought around 420 000 tonnes of palm oil in 2015 – around
1% of the global production – from a number of processing
companies that source oil from Malaysia, Indonesia and other
countries.
We mainly use palm oil as a cooking oil and as an ingredient
in food categories, such as confectionery and culinary.
Verification and certification
Our category-specific requirements for palm oil require our
suppliers to source oil from plantations that:
• Comply with local laws and regulations;
• Do not come from areas cleared of natural forest after
November 2005;
• Respect the FPIC of local and indigenous communities;
• Protect high-carbon-value forests;
• Protect peatlands; and
• Comply with the principles and criteria of the Roundtable on
Sustainable Palm Oil (RSPO), the industry-wide certification
body that promotes the growth and use of sustainable palm
oil products.
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