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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 />

<strong>Nestlé</strong> Vietnam <strong>and</strong> ACOM test<br />

coffee irrigation techniques<br />

In Vietnam’s Lam Dong prov<strong>in</strong>ce, <strong>Nestlé</strong> has been work<strong>in</strong>g<br />

with Atlantic Commodities (ACOM) on a year-long study to<br />

exam<strong>in</strong>e the water-sav<strong>in</strong>g potential of different coffee irrigation<br />

methods. Throughout <strong>2015</strong>, <strong>in</strong>formation was dissem<strong>in</strong>ated to<br />

farmers <strong>in</strong> coffee-grow<strong>in</strong>g districts, water-sav<strong>in</strong>g <strong>and</strong> drip<br />

irrigation systems were set up, <strong>and</strong> selected farmers were<br />

taught how to manage <strong>and</strong> record the water they used to<br />

irrigate their crops. N<strong>in</strong>e demonstration plots were successfully<br />

established. Results will be available <strong>in</strong> 2016.<br />

Although it is too early to assess the effectiveness of the<br />

new systems, coffee trees are already show<strong>in</strong>g better<br />

vegetative growth at the drip irrigation plots, <strong>and</strong> less water,<br />

energy <strong>and</strong> lab<strong>our</strong> is be<strong>in</strong>g used <strong>in</strong> coffee cultivation. Fertiliser<br />

can also be applied by dissolv<strong>in</strong>g it <strong>in</strong> the water used to irrigate<br />

the trees rather than be<strong>in</strong>g applied to each tree manually. We<br />

cont<strong>in</strong>ue to conduct follow-up visits to provide on-site advice,<br />

<strong>and</strong> <strong>in</strong>vite the farmers to visit the demonstration plots to<br />

exchange knowledge <strong>and</strong> share ideas.<br />

Intelligent water management <strong>in</strong> Colombia<br />

Colombia endures periods of both water shortage dur<strong>in</strong>g dry<br />

years <strong>and</strong> excess from periods of <strong>in</strong>tense ra<strong>in</strong>. This imbalance<br />

affects the productivity of coffee farms, with yields down by<br />

up to 40%. As coffee is the country’s ma<strong>in</strong> agricultural<br />

product, an effective <strong>in</strong>tegrated water management system<br />

needs the coffee sector to act as a pioneer <strong>and</strong> key<br />

stakeholder.<br />

To help address the issue, Nescafé <strong>and</strong> Nespresso launched<br />

a major water stewardship <strong>in</strong>itiative: the Intelligent Water<br />

Management (IWM) project. In cooperation with the<br />

Colombian M<strong>in</strong>istry of Rural Development, the Colombian<br />

Federation of Coffee Growers (FNC), the Dutch M<strong>in</strong>istry of<br />

Foreign Affairs <strong>and</strong> the Wagen<strong>in</strong>gen University <strong>and</strong> Research<br />

Centre (WUR), the IWM project seeks to make the Colombian<br />

coffee sector more resilient to the effects of climate change<br />

<strong>and</strong> water scarcity through improved environmental<br />

performance at a farm <strong>and</strong> watershed level.<br />

With a budget of EUR 20.5 million (CHF 24.6 million) over<br />

five years (2014–2018), this public–private partnership <strong>in</strong>volves<br />

programmes tailored to local needs <strong>and</strong> conditions <strong>in</strong> 25 river<br />

catchments. The beneficiaries <strong>in</strong>clude around 500 000 water<br />

users, <strong>in</strong>clud<strong>in</strong>g 11 000 coffee farms. The programmes focus<br />

on f<strong>our</strong> areas:<br />

• Clean technology transfer – sav<strong>in</strong>g water <strong>and</strong> discharg<strong>in</strong>g<br />

better-quality water after the coffee-wash<strong>in</strong>g process.<br />

Tra<strong>in</strong><strong>in</strong>g on the economic management of farms <strong>and</strong> IWM<br />

has been given to hundreds of participat<strong>in</strong>g coffeeproducers,<br />

while 10 pioneer<strong>in</strong>g water-reuse systems have<br />

been constructed. The feasibility of a central mill as an<br />

alternative to <strong>in</strong>dividual mills was also assessed.<br />

• Healthy ecosystems – us<strong>in</strong>g agroforestry <strong>and</strong><br />

bioeng<strong>in</strong>eer<strong>in</strong>g to m<strong>in</strong>imise soil erosion <strong>and</strong> ensure the<br />

conservation of important water areas. Around 160 farms<br />

have been selected for reforestation <strong>and</strong> agroforestry<br />

projects, <strong>and</strong> coffee plantlets have been distributed to<br />

farmers to create nurseries. The replant<strong>in</strong>g of 90 hectares<br />

will start <strong>in</strong> 2016. Fifteen sites prone to l<strong>and</strong>slides have also<br />

been selected for specific bioeng<strong>in</strong>eer<strong>in</strong>g restoration<br />

projects to prevent soil erosion.<br />

• Knowledge generation – implement<strong>in</strong>g a water <strong>and</strong><br />

climate monitor<strong>in</strong>g system <strong>and</strong> prevent<strong>in</strong>g crop damage<br />

due to extreme weather events. All the equipment for 25<br />

water <strong>and</strong> climate monitor<strong>in</strong>g stations has been <strong>in</strong>stalled at<br />

selected farms, <strong>and</strong> two rounds of water samples taken.<br />

• Cooperation <strong>and</strong> participation – collective action <strong>and</strong><br />

advocacy through engagement with public <strong>and</strong> private<br />

sector organisations, academia <strong>and</strong> civil <strong>society</strong>. Action<br />

plans are under development, <strong>and</strong> 27 local Manos al Agua<br />

community participation groups have been set up.<br />

As it enters its third year, the IWM programme will now<br />

concentrate on tra<strong>in</strong><strong>in</strong>g farmers <strong>and</strong> implement<strong>in</strong>g specific<br />

actions <strong>in</strong> each of the 25 river bas<strong>in</strong>s, <strong>in</strong>clud<strong>in</strong>g reforest<strong>in</strong>g,<br />

bioeng<strong>in</strong>eer<strong>in</strong>g activities <strong>and</strong> the <strong>in</strong>stallation of climate<br />

monitor<strong>in</strong>g stations.<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> 158

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