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 />
The Susta<strong>in</strong>able Agriculture Initiative<br />
at <strong>Nestlé</strong> (SAIN)<br />
We also have <strong>our</strong> own global programme to support farmers<br />
<strong>and</strong> promote susta<strong>in</strong>able development across a range of<br />
commodities. The Susta<strong>in</strong>able Agriculture Initiative at <strong>Nestlé</strong><br />
(SAIN) enables us to address key challenges <strong>in</strong> water<br />
management <strong>and</strong> irrigation, such as resilience to drought <strong>and</strong><br />
flood<strong>in</strong>g; wastewater <strong>and</strong> organic waste treatment; <strong>and</strong> farm<br />
<strong>in</strong>tensification techniques.<br />
Through SAIN, we hold regional workshops for farmers <strong>and</strong><br />
share best practice through field projects <strong>and</strong> public–private<br />
partnerships, some of which are featured <strong>in</strong> this chapter.<br />
Our <strong>in</strong>itial objective, to be achieved by <strong>2015</strong>, was to def<strong>in</strong>e<br />
<strong>and</strong> start to implement action plans to save water <strong>in</strong> <strong>our</strong><br />
upstream supply cha<strong>in</strong>s for coffee, sugar, rice <strong>and</strong> cereals, <strong>and</strong><br />
<strong>our</strong> work <strong>in</strong> this area has been extended <strong>in</strong>to 2020. Focus is<br />
given to high-priority locations, which are selected based on a<br />
range of water-related issues such as exposure to scarcity,<br />
floods <strong>and</strong> competition with other users.<br />
Our objectives<br />
By <strong>2015</strong> – Def<strong>in</strong>e <strong>and</strong> start to implement action plans to<br />
save water <strong>in</strong> <strong>our</strong> upstream supply cha<strong>in</strong> for coffee, sugar,<br />
rice <strong>and</strong> cereals <strong>in</strong> high-priority locations.<br />
By 2020 – Implement all action plans def<strong>in</strong>ed for improved<br />
water management <strong>in</strong> <strong>our</strong> upstream supply cha<strong>in</strong> for coffee,<br />
sugar, dairy <strong>and</strong> cereals <strong>in</strong> high-priority locations.<br />
SAIN action plan: coffee<br />
In 2014, through <strong>our</strong> SAIN programme, we def<strong>in</strong>ed <strong>and</strong> began<br />
to implement an action plan to save water <strong>in</strong> <strong>our</strong> upstream<br />
supply cha<strong>in</strong> for coffee. We promote water conservation to <strong>our</strong><br />
network of around 20 000 Farmer Connect suppliers <strong>in</strong><br />
Vietnam through <strong>our</strong> Nescafé Better Farm<strong>in</strong>g Practices (NBFP),<br />
developed <strong>in</strong> collaboration with the NGO Ra<strong>in</strong>forest Alliance.<br />
The NBFP recommend farm-level methods such as fix<strong>in</strong>g<br />
leaks, us<strong>in</strong>g irrigation techniques such as drip systems, <strong>and</strong><br />
schedul<strong>in</strong>g irrigation to help farmers <strong>in</strong>crease crop yield <strong>and</strong><br />
quality while us<strong>in</strong>g less water. These help farmers move<br />
towards compliance with social <strong>and</strong> environmental<br />
susta<strong>in</strong>ability criteria such as the 4C Code.<br />
Sav<strong>in</strong>g water <strong>in</strong> Vietnam’s coffee fields<br />
Vietnam is the world’s second-largest coffee producer <strong>and</strong> the<br />
world’s largest exporter of Robusta coffee, with 2.6 million<br />
people rely<strong>in</strong>g on the sector for their livelihood. Most coffee is<br />
grown <strong>in</strong> the Central Highl<strong>and</strong>s, where agriculture accounts for<br />
around 96% of the region’s water use. But erratic ra<strong>in</strong>fall,<br />
prolonged periods of drought <strong>and</strong> overextraction means that<br />
groundwater scarcity poses a grow<strong>in</strong>g threat to farmers,<br />
households <strong>and</strong> <strong>in</strong>dustry (watch a short video).<br />
A study by <strong>Nestlé</strong> <strong>and</strong> the Swiss Agency for Development<br />
<strong>and</strong> Cooperation (SDC) to evaluate water susta<strong>in</strong>ability <strong>in</strong> the<br />
coffee sector of Vietnam estimated that, on average, coffee<br />
farmers use 60% more water for irrigation than necessary<br />
dur<strong>in</strong>g the dry season. They also <strong>in</strong>cur f<strong>in</strong>ancial <strong>and</strong> lab<strong>our</strong><br />
costs, hav<strong>in</strong>g to buy petrol to operate well pumps <strong>and</strong> spend<br />
time water<strong>in</strong>g their fields.<br />
We have worked <strong>in</strong> a public–private partnership with the<br />
SDC s<strong>in</strong>ce 2011 to improve irrigation practices with Vietnam’s<br />
coffee farmers, <strong>and</strong> educate those beyond <strong>our</strong> network about<br />
good agricultural practices <strong>and</strong> water management. Our fiveyear<br />
partnership now serves more than 50 000 farmers <strong>and</strong> by<br />
2018, the project will deliver an action plan for water-scarce<br />
hotspots; an early warn<strong>in</strong>g weather system; a tra<strong>in</strong><strong>in</strong>g<br />
programme with field schools; <strong>and</strong> capacity-build<strong>in</strong>g for local<br />
<strong>in</strong>stitutions.<br />
• Action plan: <strong>in</strong> cooperation with the University of<br />
Neuchatel, a large-scale water supply <strong>and</strong> dem<strong>and</strong> study<br />
conducted <strong>in</strong> Dak Lak prov<strong>in</strong>ce found that groundwater<br />
res<strong>our</strong>ces are replenished two to three months after the dry<br />
season. Detailed results will be presented to an <strong>in</strong>ternational<br />
conference <strong>in</strong> Vietnam <strong>in</strong> March 2016.<br />
• Early warn<strong>in</strong>g weather system: <strong>in</strong> cooperation with the<br />
Hanoi University of Science, a short-term weather<br />
prediction model has been developed for the Central<br />
Highl<strong>and</strong>s. It is currently be<strong>in</strong>g f<strong>in</strong>e-tuned <strong>and</strong> tested. The<br />
weather forecast is updated every six h<strong>our</strong>s <strong>and</strong> predicts up<br />
to 36 h<strong>our</strong>s ahead.<br />
• Farmer tra<strong>in</strong><strong>in</strong>g programme: around 60 tra<strong>in</strong>ers have<br />
attended five Tra<strong>in</strong> the Tra<strong>in</strong>er sessions, <strong>and</strong> almost 7000<br />
beneficiaries have been tra<strong>in</strong>ed on five Good Agricultural<br />
Practices topics. Participation rates <strong>in</strong> the farmer field<br />
school programme averaged around 80%.<br />
• Policy advocacy: <strong>in</strong> cooperation with the National<br />
Agricultural Extension Centre, an agricultural forum<br />
focus<strong>in</strong>g on water <strong>and</strong> fertiliser use <strong>in</strong> the coffee sector was<br />
attended by around 200 farmers from the five Central<br />
Highl<strong>and</strong> prov<strong>in</strong>ces, where they had the opportunity to<br />
directly <strong>in</strong>teract with key coffee experts.<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> 157