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 />
Water <strong>in</strong> <strong>our</strong> supply cha<strong>in</strong><br />
Every year, <strong>Nestlé</strong> works directly with around 760 000 farmers, provid<strong>in</strong>g a wide range of support – from droughtresistant<br />
plantlets to shar<strong>in</strong>g <strong>in</strong>formation about agricultural methods that ma<strong>in</strong>ta<strong>in</strong> yield while us<strong>in</strong>g less water. Our<br />
sphere of <strong>in</strong>fluence touches millions more suppliers through the commodities we purchase, such as coffee, cocoa<br />
<strong>and</strong> milk for <strong>our</strong> products, <strong>and</strong> paper for <strong>our</strong> packag<strong>in</strong>g, so engag<strong>in</strong>g with <strong>our</strong> suppliers, especially those <strong>in</strong>volved<br />
<strong>in</strong> agriculture <strong>and</strong> forestry, is critical to achiev<strong>in</strong>g water security <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> water stewardship <strong>commitments</strong>.<br />
Prioritis<strong>in</strong>g <strong>in</strong>terventions <strong>in</strong> water-scarce locations <strong>and</strong> Important Water Areas 7 , we provide tra<strong>in</strong><strong>in</strong>g to farmers on<br />
water quality, water usage <strong>and</strong> reta<strong>in</strong><strong>in</strong>g soil moisture, while <strong>our</strong> R&D teams support the selection <strong>and</strong> propagation<br />
of drought-resistant cocoa <strong>and</strong> coffee trees.<br />
W<br />
A<br />
T<br />
E<br />
R<br />
Work to achieve water efficiency <strong>and</strong><br />
susta<strong>in</strong>ability across <strong>our</strong> operations<br />
Advocate for effective water policies<br />
<strong>and</strong> stewardship<br />
Treat the water we discharge effectively<br />
Engage with suppliers, especially those<br />
<strong>in</strong> agriculture<br />
Raise awareness on water conservation, <strong>and</strong><br />
improve access to water <strong>and</strong> sanitation across<br />
<strong>our</strong> value cha<strong>in</strong><br />
Work<strong>in</strong>g with <strong>our</strong> suppliers<br />
Our commitment<br />
Engage with suppliers, especially<br />
those <strong>in</strong> agriculture<br />
We estimate that around 63.5 billion m 3 of water is consumed<br />
by the agricultural goods we use <strong>in</strong> <strong>our</strong> products (93.3% from<br />
ra<strong>in</strong>water <strong>and</strong> 6.7% from irrigation). And with over 70% of the<br />
world’s available freshwater supplies used to grow food, the<br />
food <strong>and</strong> beverage <strong>in</strong>dustry is <strong>in</strong> a strong position to <strong>in</strong>fluence<br />
improvements <strong>in</strong> global water stewardship. Industry leaders<br />
have already achieved significant advances <strong>in</strong> susta<strong>in</strong>able<br />
water management <strong>in</strong> their operations but we must focus<br />
beyond the factory gates, where farmers are often the biggest<br />
users of water <strong>and</strong> the key stakeholders <strong>in</strong> a catchment.<br />
<strong>Nestlé</strong>’s greatest challenge to reduc<strong>in</strong>g water consumption<br />
lies <strong>in</strong> address<strong>in</strong>g the impacts of <strong>our</strong> complex agricultural<br />
supply cha<strong>in</strong>s. Water management <strong>and</strong> conservation is<br />
specific to a locality <strong>and</strong> is usually temporal <strong>in</strong> nature. Our<br />
research <strong>in</strong>dicates that we can achieve significant<br />
improvements <strong>in</strong> water use simply by <strong>in</strong>troduc<strong>in</strong>g better<br />
agricultural techniques at a farm level, some of which require<br />
significant <strong>in</strong>vestment.<br />
We are currently implement<strong>in</strong>g <strong>our</strong> Responsible S<strong>our</strong>c<strong>in</strong>g<br />
Guidel<strong>in</strong>e (RSG) for 12 major categories of <strong>in</strong>gredients, with<br />
specific requirements on social <strong>and</strong> environmental aspects;<br />
these <strong>in</strong>clude water management guidel<strong>in</strong>es based on the<br />
Pr<strong>in</strong>ciples & Practices for Susta<strong>in</strong>able Water Management <strong>in</strong><br />
Agriculture – at a farm level developed by the Susta<strong>in</strong>able<br />
Agriculture Initiative (SAI) Platform.<br />
The Susta<strong>in</strong>able Agriculture Initiative<br />
(SAI) Platform<br />
<strong>Nestlé</strong> is one of the found<strong>in</strong>g members of the SAI Platform, a<br />
non-profit organisation that promotes the pr<strong>in</strong>ciples <strong>and</strong><br />
practices needed for susta<strong>in</strong>able water management <strong>in</strong><br />
agriculture among food <strong>and</strong> beverage companies. Its Water<br />
Committee recently issued a Water Footpr<strong>in</strong>t<strong>in</strong>g of Livestock<br />
report, summaris<strong>in</strong>g key water footpr<strong>in</strong>t<strong>in</strong>g methodologies for<br />
livestock production <strong>and</strong> highlight<strong>in</strong>g gaps <strong>and</strong> areas for<br />
improvement.<br />
The SAI Platform’s Water <strong>and</strong> Agriculture Work<strong>in</strong>g Group<br />
has also f<strong>in</strong>alised a new report on Water Stewardship for<br />
Susta<strong>in</strong>able Agriculture. This document, <strong>in</strong>tended for food <strong>and</strong><br />
dr<strong>in</strong>k companies <strong>and</strong> their agricultural supply cha<strong>in</strong>s, provides<br />
practical guidance on the steps required for farm-level water<br />
stewardship. The report aims to empower key decision-makers<br />
such as bus<strong>in</strong>ess leaders <strong>and</strong> farm managers to underst<strong>and</strong><br />
the scope of farm-level water stewardship <strong>and</strong> where<br />
specialist expertise is required; to make the right practical <strong>and</strong><br />
<strong>in</strong>vestment choices; <strong>and</strong> to communicate better on water<br />
stewardship issues. The three clear steps to farm-level water<br />
stewardship described <strong>in</strong> the report are improved knowledge,<br />
an assessment of risks both to <strong>and</strong> from the farm, <strong>and</strong> actions<br />
to address those risks.<br />
7 Water-related areas of a catchment that are legally protected or under a conservation<br />
agreement which, if impaired or lost, could adversely impact the environmental, social,<br />
cultural or economic benefits derived from the catchment <strong>in</strong> a significant or<br />
disproportionate manner.<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> 156