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, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA,<br />
G4-LA15, G4-HR10, G4-SO9, G4-SO10<br />
Tackl<strong>in</strong>g abuses <strong>in</strong> the seafood<br />
supply cha<strong>in</strong><br />
Our m<strong>and</strong>atory <strong>Nestlé</strong> Supplier Code <strong>and</strong> RSG on Fish <strong>and</strong><br />
Seafood require all of <strong>our</strong> suppliers to respect human rights <strong>and</strong><br />
to comply with all applicable lab<strong>our</strong> laws. To re<strong>in</strong>force this, <strong>Nestlé</strong><br />
is tak<strong>in</strong>g action to elim<strong>in</strong>ate lab<strong>our</strong> <strong>and</strong> human rights abuses <strong>in</strong><br />
the seafood supply cha<strong>in</strong>. In <strong>2015</strong>, we commissioned Verité, an<br />
NGO that works with companies to help underst<strong>and</strong> <strong>and</strong> tackle<br />
lab<strong>our</strong> issues, to <strong>in</strong>vestigate allegations of abuses <strong>in</strong> the Thai<br />
fish<strong>in</strong>g <strong>in</strong>dustry. They collected <strong>in</strong>formation from fish<strong>in</strong>g vessels,<br />
ports, mills <strong>and</strong> farms <strong>in</strong> Thail<strong>and</strong> on a range of issues, <strong>in</strong>clud<strong>in</strong>g<br />
traffick<strong>in</strong>g, forced <strong>and</strong> underage lab<strong>our</strong>, lack of grievance<br />
procedures, workplace conditions, <strong>and</strong> wages <strong>and</strong> benefits.<br />
Follow<strong>in</strong>g Verité’s <strong>in</strong>vestigation we have launched an action<br />
plan on seafood s<strong>our</strong>ced from Thail<strong>and</strong>, which takes <strong>in</strong>to<br />
account their recommendations. Focused on 10 key activities,<br />
the plan conta<strong>in</strong>s a series of actions, designed to protect<br />
workers from abuses, improve work<strong>in</strong>g conditions <strong>and</strong> tackle<br />
unacceptable practices, <strong>in</strong>clud<strong>in</strong>g juvenile <strong>and</strong> teenage<br />
work<strong>in</strong>g. Those actions <strong>in</strong>clude establish<strong>in</strong>g a migrant<br />
workforce emergency response team, sett<strong>in</strong>g up a grievance<br />
mechanism, provid<strong>in</strong>g tra<strong>in</strong><strong>in</strong>g for capta<strong>in</strong>s <strong>and</strong> boat owners<br />
operat<strong>in</strong>g <strong>in</strong> the <strong>in</strong>dustry, rais<strong>in</strong>g awareness about m<strong>in</strong>imum<br />
required lab<strong>our</strong> st<strong>and</strong>ards, establish<strong>in</strong>g better traceability of<br />
raw materials <strong>and</strong> enabl<strong>in</strong>g verification of lab<strong>our</strong> st<strong>and</strong>ards <strong>in</strong><br />
fish<strong>in</strong>g vessels.<br />
The action plan was published <strong>in</strong> November <strong>2015</strong> <strong>and</strong><br />
immediately put <strong>in</strong>to place. It will cont<strong>in</strong>ue to be rolled out<br />
throughout 2016, with a dedicated manager be<strong>in</strong>g based <strong>in</strong><br />
Thail<strong>and</strong> to oversee its implementation. Alongside the Thai<br />
Government, local seafood suppliers <strong>and</strong> <strong>in</strong>ternational buyers,<br />
we also cont<strong>in</strong>ue to participate <strong>in</strong> the multi-stakeholder ILO<br />
Work<strong>in</strong>g Group, which is seek<strong>in</strong>g collaborative solutions to<br />
improve lab<strong>our</strong> conditions <strong>in</strong> Thail<strong>and</strong>’s complex seafood<br />
export <strong>in</strong>dustry.<br />
Another not-for-profit partner, Ocean Outcomes (formerly<br />
the Wild Salmon Center), promotes the conservation <strong>and</strong><br />
susta<strong>in</strong>able use of mar<strong>in</strong>e ecosystems across the Pacific Rim,<br />
<strong>and</strong> has made good progress on its Salmon Fishery<br />
Improvement Projects (FIPs) <strong>in</strong> Russia. The group has<br />
launched two Salmon FIPs on the remote Kamchatka<br />
pen<strong>in</strong>sula, <strong>in</strong> the Russian Far East. Now, more than 50% of<br />
Kamchatka wild salmon fisheries are Mar<strong>in</strong>e Stewardship<br />
Council certified, <strong>in</strong> assessment or <strong>in</strong> a FIP.<br />
The Government agency <strong>in</strong> Russia that controls salmon<br />
hatcheries has exp<strong>and</strong>ed its mark<strong>in</strong>g programme at all<br />
Government-run hatcheries to cover 100% of fish released.<br />
A team of <strong>in</strong>dependent observers completed a season <strong>in</strong> the<br />
field <strong>in</strong> western Kamchatka <strong>and</strong> found no cases of illegal<br />
activity <strong>in</strong> the commercial fishery, although one case of river<br />
poach<strong>in</strong>g was discovered <strong>and</strong> reported.<br />
Track<strong>in</strong>g a seafood supply cha<strong>in</strong> <strong>in</strong> the open ocean is a difficult<br />
process. However, <strong>our</strong> ambition is to confirm that the fish <strong>and</strong><br />
seafood we s<strong>our</strong>ce come from healthy fisheries or from<br />
fisheries <strong>and</strong> farms engaged <strong>in</strong> improvement projects.<br />
We are able to track about 60% of <strong>our</strong> whole fish purchases<br />
to the catch vessel. From there, <strong>our</strong> expert mar<strong>in</strong>e not-for-profit<br />
partner, Susta<strong>in</strong>able Fisheries Partnership, provides assessments<br />
on the s<strong>our</strong>ce fisheries. Some 90% of the purchased seafood is<br />
by-product used for nutritious pet food products. We trace this<br />
product to as many s<strong>our</strong>ce fisheries as have been identified –<br />
which is now up to 153 fisheries. Some 52% of these known<br />
fisheries are considered medium risk or better.<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> 136