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, FP2, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15, G4-HR10,<br />
Animal welfare G4-DMA, G4-SO9, G4-SO10<br />
Meat, poultry <strong>and</strong> eggs<br />
<strong>Nestlé</strong> buys a range of meat, poultry <strong>and</strong> egg products from<br />
a wide variety of farmers around the world through its<br />
trade channels.<br />
We buy processed meat <strong>in</strong> the form of cooked <strong>and</strong><br />
dehydrated products, oils <strong>and</strong> powders, as well as cooked,<br />
frozen <strong>and</strong> fresh meat for use as <strong>in</strong>gredients <strong>in</strong> a range of <strong>our</strong><br />
foods <strong>and</strong> beverages.<br />
Most of <strong>our</strong> meat <strong>and</strong> poultry are used for ready-made <strong>and</strong><br />
frozen meals <strong>and</strong> for pet food, while eggs are mostly used for<br />
mayonnaise, pasta <strong>and</strong> pastry.<br />
We have made major progress <strong>in</strong> <strong>2015</strong> towards us<strong>in</strong>g only<br />
eggs from cage-free hens. In December <strong>2015</strong>, <strong>Nestlé</strong> USA<br />
announced that it will switch to us<strong>in</strong>g exclusively cage-free<br />
eggs <strong>in</strong> all of its US food products by 2020. We are also<br />
develop<strong>in</strong>g pilot projects with <strong>our</strong> suppliers <strong>and</strong> World Animal<br />
Protection to establish a roadmap for s<strong>our</strong>c<strong>in</strong>g cage-free eggs<br />
<strong>in</strong> Europe <strong>and</strong> the rest of the world.<br />
Traceability <strong>in</strong> the supply cha<strong>in</strong><br />
We began implement<strong>in</strong>g <strong>our</strong> Responsible S<strong>our</strong>c<strong>in</strong>g<br />
requirements for meat, poultry, eggs <strong>and</strong> dairy <strong>in</strong> late 2013.<br />
Initial progress has been slow because much of the meat <strong>and</strong><br />
poultry we buy is meat by-product used for pet food, <strong>and</strong> harder<br />
to trace. Our current assessment focus is on <strong>our</strong> food bus<strong>in</strong>ess.<br />
In <strong>2015</strong>, we purchased a total of 1.7 million tonnes of meat,<br />
poultry <strong>and</strong> eggs. Of this, 8.7% was traceable (target: 10%)<br />
<strong>and</strong> 3.34% was Responsibly S<strong>our</strong>ced (target: 5%).<br />
We are work<strong>in</strong>g towards further improv<strong>in</strong>g farm animal<br />
health <strong>and</strong> welfare <strong>in</strong> <strong>our</strong> supply cha<strong>in</strong>. We assess practices at<br />
farm level us<strong>in</strong>g the <strong>Nestlé</strong> Responsible S<strong>our</strong>c<strong>in</strong>g Assessment<br />
protocol, developed <strong>in</strong> conjunction with World Animal<br />
Protection. Our collaboration with World Animal Protection<br />
made us the first major food company to form a partnership<br />
with an animal welfare NGO. World Animal Protection<br />
subsequently helped us develop <strong>our</strong> category-specific<br />
requirements, which cover breed<strong>in</strong>g, feed<strong>in</strong>g, hous<strong>in</strong>g,<br />
husb<strong>and</strong>ry, health, transport <strong>and</strong> slaughter<strong>in</strong>g.<br />
Hav<strong>in</strong>g started by assess<strong>in</strong>g <strong>our</strong> dairy supply cha<strong>in</strong>s <strong>in</strong><br />
Europe <strong>and</strong> North America, we began implement<strong>in</strong>g <strong>our</strong><br />
Responsible S<strong>our</strong>c<strong>in</strong>g requirements for meat, poultry <strong>and</strong> eggs<br />
<strong>in</strong> <strong>our</strong> supply cha<strong>in</strong> <strong>in</strong> 2014. F<strong>in</strong>d<strong>in</strong>gs <strong>in</strong>cluded issues regard<strong>in</strong>g<br />
the storage of chemicals, access to water, disbudd<strong>in</strong>g without<br />
local anaesthetic <strong>and</strong> analgesia, <strong>and</strong> lab<strong>our</strong> policies. We will<br />
gradually implement them along <strong>our</strong> global supply cha<strong>in</strong>s,<br />
focus<strong>in</strong>g on animal welfare at a farm level.<br />
Together with World Animal Protection <strong>and</strong> <strong>our</strong> supply<br />
cha<strong>in</strong> partners, we will cont<strong>in</strong>ue to work to further improve<br />
farm animal welfare <strong>in</strong> <strong>our</strong> supply cha<strong>in</strong> by ensur<strong>in</strong>g<br />
compliance with <strong>our</strong> RSG requirements to ensure the highest<br />
possible levels of farm animal welfare along <strong>our</strong> supply cha<strong>in</strong>.<br />
Fish <strong>and</strong> seafood<br />
Our fish <strong>and</strong> seafood comes from a wide variety of s<strong>our</strong>ces.<br />
Like meat <strong>and</strong> poultry, the seafood we procure is used <strong>in</strong><br />
ready-made <strong>and</strong> frozen meals, nutrition products <strong>and</strong> pet food.<br />
Verification <strong>and</strong> certification<br />
Through <strong>our</strong> delivery partner agreements, we will <strong>in</strong>creas<strong>in</strong>gly<br />
be able to assess <strong>our</strong> supply cha<strong>in</strong> aga<strong>in</strong>st <strong>our</strong> categoryspecific<br />
requirements for fish <strong>and</strong> seafood, evaluate the<br />
susta<strong>in</strong>ability of seafood s<strong>our</strong>ces (wild <strong>and</strong> farmed) <strong>and</strong><br />
identify projects to enhance the environmental performance of<br />
<strong>our</strong> suppliers.<br />
Our RSG establishes a framework for cont<strong>in</strong>uous<br />
improvement <strong>in</strong> <strong>our</strong> wild caught <strong>and</strong> farmed seafood supply<br />
cha<strong>in</strong>, <strong>and</strong> its derived co-products, build<strong>in</strong>g towards<br />
Responsible S<strong>our</strong>c<strong>in</strong>g.<br />
We also recognise seafood certified by <strong>in</strong>dependent<br />
NGOs such as the Mar<strong>in</strong>e Stewardship Council, the world’s<br />
lead<strong>in</strong>g certification <strong>and</strong> eco-labell<strong>in</strong>g programme for<br />
susta<strong>in</strong>able seafood.<br />
Traceability <strong>in</strong> the supply cha<strong>in</strong><br />
By the end of <strong>2015</strong>:<br />
Fish <strong>and</strong> seafood supply cha<strong>in</strong> traceability results (for whole<br />
fish; by-product is traced only by the number of fisheries)<br />
130 000<br />
60%<br />
55%<br />
Total volume <strong>in</strong> scope:<br />
130 000<br />
Percentage of volume<br />
traceable: 60%<br />
(<strong>2015</strong> target: 60%)<br />
Percentage of volume<br />
Responsibly S<strong>our</strong>ced: 55%<br />
(<strong>2015</strong> target: 30%)<br />
Read <strong>our</strong> latest Progress Report on Responsible<br />
S<strong>our</strong>c<strong>in</strong>g of Meat, Poultry <strong>and</strong> Eggs.<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> 135