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, G4-EN1, Energy G4-DMA, G4-EN11, G4-EN12, G4-EN13, Emissions G4-DMA, G4-EN26, Supplier environmental assessment G4-DMA
Sourcing raw materials
We continue to implement our Responsible Sourcing Guideline
(RSG) in the supply chains of our 12 priority categories, against
our initial objective to have assessed 30% of the volume of
these categories against our RSG, and for them to be
compliant or have improvement plans ongoing, by 2015.
The suppliers of these materials are already subject to the
terms of our Corporate Business Principles and The Nestlé
Supplier Code. But through the RSG, we incorporate
performance requirements on the use and management of
water and soil, the maintenance and enhancement of
biodiversity (in high conservation value areas in particular),
and the elimination of deforestation.
Raw materials and deforestation
The destruction of tropical rainforests and associated peatlands
contributes to biodiversity loss as well as social and land
conflicts. In The Nestlé Commitment on Deforestation and
Forest Stewardship, we pledge that our products will not be
associated with deforestation. This covers all the raw materials
we use to make our products, as well as packaging material.
Our RSG has been developed to help procurement staff and
suppliers to implement our commitment. In addition, The
Nestlé Commitment on Biofuels raises awareness of the risks to
forests, water and food supplies resulting from the conversion
to growing biofuel crops.
We have taken a proactive role in tackling deforestation
through our Responsible Sourcing programme. Three
categories of raw material are central to our ‘no deforestation’
commitment, as they are considered to have the highest
impact on deforestation and forest stewardship: palm oil, soya,
and pulp and paper. Our approach remains the same for all
three: to work with suppliers and partners to map our supply
chains back to the origin, assessing their performance against
our RSG, and then working with them to improve their
activities so that they meet our requirements. Other
commodities – including meat and dairy products, cocoa and
coffee – are also problematic in some places, and are being
tackled accordingly, country by country.
Working collaboratively, we also:
• Support the CGF to mobilise resources to help achieve
zero net deforestation by 2020;
• Helped set up the Tropical Forest Alliance 2020 (TFA 2020),
a public–private partnership that aims to reduce tropical
deforestation associated with key global commodities;
current TFA 2020 partners include the governments of the
United States, United Kingdom, Norway, the Netherlands,
Indonesia and Liberia; members of the CGF; and around 30
NGOs;
• Endorsed the New York Declaration on Forests to halt and
reverse the loss of forests, and participated in conferences
and events to raise awareness, seek solutions and develop
cross-sector solutions; and
• Sit on the The Program Coordination Board of the IDH’s
Initiative for Sustainable Landscapes, a programme that
seeks landscape-level solutions and approaches to tackle
deforestation in six landscapes across the world.
Improving biodiversity through direct sourcing
For our Farmer Connect activities, sourcing milk and coffee
from more than half-a-million farmers, we take a more handson
approach to assessing impacts and influencing behaviours
to protect biodiversity at the farm level.
For example, our dairy factories and milk districts are often
close to protected areas and areas of high biodiversity. Using
RISE, our assessment and action planning tool, we work with
dairy farmers to review their practices and develop action
plans for economic, social and environmental improvements.
In 2015, RISE studies have been completed on 189 farms in
12 different markets, including dairy, coffee and cocoa.
Biodiversity issues in the coffee sector are managed
primarily through the 4C Coffee Code, Nespresso’s AAA
Sustainability Quality Program and the Nescafé Plan.
Initiatives to promote better farming practices include
safeguards against sourcing from protected areas, restrictions
on pesticide use, soil conservation and watercourse protection.
We continue to help farmers implement silvopastoral
systems, planting different species of trees, hedges and
shrubs on pasture land to improve biodiversity and yields.
The advantages of a properly managed silvopastural system –
which combines forestry and grazing of domesticated animals
in a mutually beneficial way – are enhanced soil protection and
increased long-term income resulting from the simultaneous
production of trees and grazing animals. Nestlé Nicaragua has
helped 10 pilot farms implement silvopastoral systems.
Improvement programmes at our factories
Our objective
By 2015 – Improvement programmes are taking place for
all factories adjacent to Important Water Areas 12 to reduce
our impacts on the surrounding area.
All factories operate according to our Nestlé Environmental
Management System, and 626 of all Nestlé sites are certified
to the ISO 14001:2004 standard. This gives us a solid
foundation for developing initiatives with local authorities and
other stakeholders to manage our operations, improve
performance and enhance biodiversity where our factories are
located in legally protected areas and Important Water Areas.
Following consultancy work by the UNEP World
Conservation Monitoring Centre (UNEP-WCMC) to identify the
key biodiversity connections to our factories, we have sought to
interpret those links to determine dependency and impact. We
have analysed which of our factories are within, or adjacent to 13 ,
areas of high biodiversity or protected areas. The resulting
database highlights many factories where high biodiversity risk
has been identified and where we will focus our future actions
to safeguard the natural environments that we depend on.
12 Legally protected or under a conservation agreement which, if impaired or lost, could
adversely impact the environmental, social, cultural or economic benefits derived from the
catchment in a significant or disproportionate manner.
13 Within 2 km.
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