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