Nestlé in society Creating Shared Value and meeting our commitments 2015

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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, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA, G4-LA15, G4-HR10, G4-SO9, G4-SO10 Tackling abuses in the seafood supply chain Our mandatory Nestlé Supplier Code and RSG on Fish and Seafood require all of our suppliers to respect human rights and to comply with all applicable labour laws. To reinforce this, Nestlé is taking action to eliminate labour and human rights abuses in the seafood supply chain. In 2015, we commissioned Verité, an NGO that works with companies to help understand and tackle labour issues, to investigate allegations of abuses in the Thai fishing industry. They collected information from fishing vessels, ports, mills and farms in Thailand on a range of issues, including trafficking, forced and underage labour, lack of grievance procedures, workplace conditions, and wages and benefits. Following Verité’s investigation we have launched an action plan on seafood sourced from Thailand, which takes into account their recommendations. Focused on 10 key activities, the plan contains a series of actions, designed to protect workers from abuses, improve working conditions and tackle unacceptable practices, including juvenile and teenage working. Those actions include establishing a migrant workforce emergency response team, setting up a grievance mechanism, providing training for captains and boat owners operating in the industry, raising awareness about minimum required labour standards, establishing better traceability of raw materials and enabling verification of labour standards in fishing vessels. The action plan was published in November 2015 and immediately put into place. It will continue to be rolled out throughout 2016, with a dedicated manager being based in Thailand to oversee its implementation. Alongside the Thai Government, local seafood suppliers and international buyers, we also continue to participate in the multi-stakeholder ILO Working Group, which is seeking collaborative solutions to improve labour conditions in Thailand’s complex seafood export industry. Another not-for-profit partner, Ocean Outcomes (formerly the Wild Salmon Center), promotes the conservation and sustainable use of marine ecosystems across the Pacific Rim, and has made good progress on its Salmon Fishery Improvement Projects (FIPs) in Russia. The group has launched two Salmon FIPs on the remote Kamchatka peninsula, in the Russian Far East. Now, more than 50% of Kamchatka wild salmon fisheries are Marine Stewardship Council certified, in assessment or in a FIP. The Government agency in Russia that controls salmon hatcheries has expanded its marking programme at all Government-run hatcheries to cover 100% of fish released. A team of independent observers completed a season in the field in western Kamchatka and found no cases of illegal activity in the commercial fishery, although one case of river poaching was discovered and reported. Tracking a seafood supply chain in the open ocean is a difficult process. However, our ambition is to confirm that the fish and seafood we source come from healthy fisheries or from fisheries and farms engaged in improvement projects. We are able to track about 60% of our whole fish purchases to the catch vessel. From there, our expert marine not-for-profit partner, Sustainable Fisheries Partnership, provides assessments on the source fisheries. Some 90% of the purchased seafood is by-product used for nutritious pet food products. We trace this product to as many source fisheries as have been identified – which is now up to 153 fisheries. Some 52% of these known fisheries are considered medium risk or better. Nestlé in society – Creating Shared Value and meeting our commitments 2015 136
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Water Water is critical to our business and our value chain, yet global withdrawals are predicted to exceed supply by 40% by 2030 1 . Respecting the right to safe, clean water and sanitation, we strive to use water efficiently and facilitate responsible water stewardship in catchments where we source water or ingredients, and where we have facilities. 1.7 million m³ Water saved across our operations by 362 water-saving projects. 41.2% Overall reduction in direct water withdrawals per tonne of product since 2005. 1st Nestlé’s ranking for water on Oxfam’s 2015 Behind the Brands scorecard. 2015 Global Water Awards Nestlé won the Corporate Water Stewardship award for its zero water technology, enabling our Lagos de Moreno dairy factory in Mexico to operate without using local groundwater. 1 Source: 2030 Water Resources Group. In this chapter 138 Our role in water stewardship 144 Water in our operations 149 Public policy advocacy and collective action 153 Water treatment and quality 156 Water in our supply chain 160 Community engagement Nestlé in society – Creating Shared Value and meeting our commitments 2015 137
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