Nestlé in society Creating Shared Value and meeting our commitments 2015

Nestlé in society:
Creating Shared Value
Nutrition, health
and wellness Rural development Water
Environmental
sustainability
Human rights
and compliance
Our
people
Materials G4-DMA
RISE: evaluating sustainability
To improve the environmental, social and economic
performance of those in our supply chain, we apply RISE
(Response-Inducing Sustainability Evaluation), a tool that helps
smallholder farmers evaluate environmental impacts at the
farm level. RISE uses 10 performance ratings ranging from
‘problematic’ to ‘good performance’ to assess areas such as
crop production, water use and energy consumption, and any
potential effects on climate change and biodiversity, and
identify improvements.
The lessons from the various RISE studies – originally
focused on the dairy sector but increasingly extended to cover
coffee and cocoa farmers too – are shared with the farmers
who supply us by Nestlé agronomists.
Read more about RISE in Rural development.
Environmental sustainability in
the dairy sector, Chile
In Chile, the production of Nido Crece Light milk powder
begins with responsible sourcing, starting with the dairy
producers who deliver their milk to our Llanquihue plant.
Across Chile’s dairy sector, our Environmental Sustainability
on Dairy Sites programme assesses the environmental standards
of our direct suppliers and pays a bonus to producers who
comply with them. Five core concepts are audited: environmental
protection, low-carbon dairy farming, environmental services,
animal welfare and the protection of human health. In the
Llanquihue region, more than 90% of our milk – from almost 500
farmers – is audited under this programme.
In addition, 32 suppliers of other primary materials to our
dairy business in Chile have been audited under our global
Responsible Sourcing programme to evaluate health and
safety, labour standards, environmental sustainability and
business integrity.
Herta strengthens supplier
relationships, France
To strengthen its links with direct suppliers and promote
sustainable best practice in the sourcing of its pork, Herta
Foods in France set up a working group of professionals to
discuss how to improve animal welfare and lessen the sector’s
environmental impact.
To help the company fully understand the impact of the
different stages of our value chain, Herta carried out a simple
life-cycle assessment on its ham. This analysis showed that the
areas with the highest impact on the environment were
farming, production and packaging.
Informed by this, Herta s’engage Filière Préférence was
launched in 2013. This partnership between Herta, farmers and
slaughterhouses was the first initiative uniting all the
stakeholders in the supply chain for any meat-farming
organisation in France. Each stakeholder group made a
commitment to the other members of the partnership:
• Farms will supply pork in line with Herta’s best-practice
standards, gaining ‘points’ for doing so, and will commit to
engage in a process of continual improvement based on
farm audits and corrective action plans;
• Slaughterhouses will only source from partner farms
involved in the initiative and only supply cuts of pork that
meet Herta’s specifications; and
• Once a farm acquires the required number of points, Herta
commits to buying all their cut-pork products for three years.
These mutually beneficial relationships help secure supplies of
good-quality meat, improve the health and wellbeing of the
animals, and improve the sector’s impact on water, air and soil.
So far, 65 farms and five slaughterhouses have signed up to
Filière Préférence, supplying about 7% of Herta’s ham.
As part of the PNA (Programme National pour
l’Alimentation/National Food Programme) framework, Herta’s
policy was endorsed through a Government charter, signed in
the presence of the Minister for Agriculture at Nestlé France’s
headquarters.
To support farmers in the scheme, Herta also intends to
create a ‘farmers club’ to share the best initiatives across the
network and attract other farmers to participate.
Nestlé in society – Creating Shared Value and meeting our commitments 2015 180