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, G4-EN12, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA,
G4-LA15, G4-HR10, G4-SO9, G4-SO10
Pulp and paper
Nestlé bought 1.58 million tonnes of pulp and paper in 2015,
much of it from paper mills, converters and packaging
manufacturers in Europe, Brazil, China, India, Indonesia,
Malaysia and the United States. It is used for food packaging,
wrapping and transportation, although we also need paper for
office stationery and marketing materials.
Well over 35% of the pulp and paper Nestlé uses involves
recycled materials. Recycling in the pulp and paper industry is
well established but food safety, quality and physical
properties prevent us from using 100% recycled material.
Recycled material is considered not to add to deforestation, so
we do not map and assess the upstream recycled supply chain
for the same concerns as we would for ‘virgin’ pulp and paper.
Traceability
In partnership with TFT, we map and assess supply chains of
paper and board suppliers across a number of high-priority
countries. This is taking place in three phases:
• 2011–2015: United States, Europe, Brazil, China, Indonesia,
Malaysia and India;
• 2013–2016: Thailand, Vietnam and Central and West Africa;
and
• 2015–2017 (started): Chile, Japan and Mexico.
In 2015, TFT began to engage with Nestlé buyers and key
suppliers in Phase 3 countries, supply chain mapping started
and the first visits, based on supply chain information, took
place. To date, 31 supplier field visits, follow-up visits and
workshops have now been carried out across the 13 Wave 1–3
countries. In Canada, Chile and Russia in particular, we have
carried out field visits to determine how companies in our
supply chain are operating close to Intact Forest Landscapes
and HCV areas, as well as respecting indigenous people’s
rights. Each of these areas of investigation has its own
particular issues and challenges. We will follow up these field
visits and resulting recommendations in 2016.
In Thailand and South Africa, we have conducted field visits
to understand the key role that smallholders play as providers
of raw material in the pulp and paper supply chain, and how
the pulp and paper companies are managing their out-grower
schemes to meet Nestlé’s RSG. There is still work to be done
on this front and we shall look to learn from the work we are
conducting through TFT’s Rurality initiative on palm oil and
explore the opportunities to extend this to pulp and paper.
Progress in Europe
Our European Procurement Team helped create the RSG for
pulp and paper, outlining our commitment to ensuring that the
wood fibres we use for cartonboard and paper packaging are
traceable and Responsibly Sourced. The Fibre Packaging
Procurement Team also developed a self-assessment tool to
help paper and board producers show supply chain
transparency.
While the Fibre Packaging Procurement Team initially worked
with paper and board suppliers, our partner TFT has focused on
providing verification of fibre supply chains and forest practices.
TFT’s support also involves engaging with Nestlé buyers and
suppliers, assessing the environmental and social performance
of processing sites and forests, formulating practical
recommendations and monitoring their implementation.
Supplier scorecards are used for direct engagement with
suppliers, and time-bound action plans by suppliers with lower
scores have been received and are being monitored. Nestlé
local markets have reacted positively to the approach, which
emphasises sustainable forest management and environmental
management in general rather than paper certification.
Verification and certification
As well as focusing on deforestation and virgin fibre, our
category-specific requirements for pulp and paper, developed
in conjunction with TFT, require:
• Adherence with local and national regulations and laws;
• Protection of high-carbon-stock forests;
• Protection of HCV sites; and
• No development on peat, regardless of depth.
The RSG reinforces Nestlé’s specific commitments on
deforestation and forest stewardship, rural development and
water stewardship.
Nestlé also used Forest Stewardship Council (FSC)
accreditation to demonstrate compliance. The FSC is an
international NGO dedicated to promoting responsible
management of the world’s forests and best meets Nestlé’s
criteria for credible certification.
Traceability in the supply chain
In addition to engaging with paper mills, converters and
packaging manufacturers, 33 visits to our suppliers’ sites were
carried out in 2015.
We aim to source only pulp and paper that meet our ‘no
deforestation’ requirements or, at the very least, from suppliers
that are making measurable progress to meeting them. When
companies in our supply chains do not comply and/or are not
willing to engage or change, we will continue to exclude them
from our supply chains, while monitoring their progress to
determine whether or not to engage with them again in the
future (see below).
Read our latest Progress Report on Responsible
Sourcing of Pulp and Paper.
Pulp and paper supply chain traceability results
1 580 000 tonnes
74%
55%
Total volume:
1580000 tonnes
Percentage of volume
traceable (at least back to
the country of origin): 74%
(2015 target: 70%)
Percentage of volume
Responsibly Sourced
(assessed and engaged in
continuous improvement,
compliant, or certified
against an approved
sustainability scheme and
recycled): 55% (2015
target: 60%)
Nestlé in society – Creating Shared Value and meeting our commitments 2015 130