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
G4-EC2, Energy G4-DMA, Emissions G4-DMA
Adapting to climate change
We are only part of the climate change solution; business can
play a role, but more needs to be done at a wider, collaborative
level. So increasingly, we are working with our suppliers to
help them adapt to climate change: both to support their
livelihoods and the environment, and to reduce the risk to the
long-term supply of materials for our business.
Agroforestry project in Rosières,
France
Nestlé France’s Rosières factory, located in Santerre, northern
France, sources about 110 000 tonnes of select varieties of
potatoes for its Mousline brands; three-quarters of this volume
comes from the 190 producers who form the Santerre
Producers Group (SPG). Audits performed in 2012 and 2013
among the SPG suggest that the use of water for irrigation,
fertilisers and pesticides are high, putting long-term soil
fertility at risk.
To make land use more sustainable, production practices
have been adapted to involve agroforestry – the use of trees
within agriculture to protect natural habitats, regulate water
availability and reduce soil erosion. Mousline promotes
agroforestry projects with willing SPG producers, while Pur
Projet, an NGO that assists companies in regenerating and
preserving ecosystems, provides operational support; the
producers themselves are responsible for soil preparation,
planting and general maintenance.
In 2014, three agroforestry pilot projects were set up at
farms close to the Rosières factory, each involving different
types of hedge. A total of 3500 trees and shrubs were planted,
forming 3.3 km of hedging, and the agricultural school Lycée
Le Paraclet has started to assist with soil analysis.
Looking ahead, we hope to identify new potato farmers to
join the initiative, and to assess the impact of the hedges
planted to date.
We are especially committed to helping farmers adapt to
climate impacts and become more resilient. Supported by
training and advice, they can continue to grow crops in the
face of changing patterns of climate and agricultural
production. We use our scientific expertise and resources to
help improve crop resilience and yield, with our R&D centres
in Tours, France, and Abidjan, Côte d’Ivoire, working to
develop drought-resistant cocoa and coffee plantlets, and
varieties that are less vulnerable to disease.
Our work to assist cocoa and coffee farmers adapt to
environmental challenges was recognised as an example of
best practice by the United Nations Framework Convention on
Climate Change (UNFCCC) and shared as part of its Adaptation
Private Sector Initiative.
We have shared case studies on private sector engagement
as part of an online tool that showcases how businesses and
communities can adapt to the effects of climate change (see
an example here).
Nespresso AAA agroforestry
programme
Nespresso sources coffee beans from regions across the
world, many of which are already experiencing the first signs
of the adverse impacts of climate change. Extreme weather
conditions, leading to increased incidence of disease,
landslides and water scarcity, are becoming a threat to the
availability of coffee beans. A 2014 paper by the International
Center for Tropical Agriculture in Colombia suggests that, due
to increasing temperatures driven by climate change, Latin
American countries (where Nespresso sources a large share of
its high-quality coffees) would lose 15% to 30% of the current
area suitable for Arabica coffee bean cultivation by 2050.
Since 2003, in partnership with the Rainforest Alliance,
Nespresso has been committed to ensuring farmers’
livelihoods and securing its supply of high-quality sustainable
coffee via the implementation of its unique coffee-sourcing
model, Nespresso’s AAA Sustainable Quality Program. At the
end of 2015, 85% of Nespresso coffee supply was sourced
from the AAA Program.
A dedicated agronomists’ network has promoted
sustainable farming practices to mitigate negative
environmental impacts, while increasing farm productivity and
coffee quality. In 2014, conscious of the impact of climate
change on landscapes, Nespresso decided to amplify its
actions to build resilient coffee ecosystems by investing in
agroforestry as part of its AAA Program. We plan to replicate
the activities piloted in the Cauca region of Colombia and the
Huehuetenango region of Guatemala in other relevant AAA
sourcing regions.
Nespresso commissioned Pur Projet, specialists in the
development of community ecosystem management, to run
the pilot projects in Guatemala and Colombia along with local
farmers’ organisations (ADESC and FNC). The field
assessments carried out at the early stage of the process
highlighted the key challenges to be addressed in both regions.
In Huehuetenango the primary concerns are landslides, coffee
rust and drought, while in Cauca, the key challenges are
watershed regeneration and degraded pastures.
Far-reaching community and corporate benefits
Nespresso is convinced that agroforestry is an efficient
investment to reinforce its coffee supply chain while having a
positive impact on natural capital and creating additional
economic value from each hectare of coffee farm. The positive
effects on land, biodiversity and water include:
• Preventing erosion;
• Enhancing the fertility of soils, and increasing the presence
of pollinators and biological control;
• Limiting water evaporation and regulating fresh water
availability;
• Naturally protecting ecosystems and preserving
biodiversity;
• Improving water quality;
• Absorbing carbon from the air; and
• Creating economic benefits for farmers through crop
diversification and carbon certification.
Nestlé in society – Creating Shared Value and meeting our commitments 2015 213