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 />
Child labor G4-DMA, G4-HR5, G4-HR11<br />
Monitor<strong>in</strong>g <strong>and</strong> remediation <strong>in</strong> the cocoa<br />
supply cha<strong>in</strong><br />
In <strong>2015</strong>, we cont<strong>in</strong>ued to implement <strong>our</strong> action plans to focus<br />
specifically on commodities <strong>and</strong> countries where there is a<br />
higher risk of child lab<strong>our</strong> issues.<br />
For <strong>our</strong> cocoa supply cha<strong>in</strong>, work<strong>in</strong>g with the ICI, we<br />
created a CLMRS to operate <strong>in</strong> the <strong>Nestlé</strong> Cocoa Plan supply<br />
cha<strong>in</strong> <strong>in</strong> Côte d’Ivoire, where we currently work with 79 cooperatives.<br />
The CLMRS covers awareness rais<strong>in</strong>g <strong>in</strong> local<br />
communities, data gather<strong>in</strong>g about the circumstances of<br />
children <strong>in</strong> <strong>our</strong> supply cha<strong>in</strong>, <strong>and</strong> provid<strong>in</strong>g cocoa farmers with<br />
the practical support <strong>and</strong> means to get their children back <strong>in</strong>to<br />
school.<br />
It complements other aspects of the <strong>Nestlé</strong> Cocoa Plan,<br />
which are designed to <strong>in</strong>crease farmer productivity <strong>and</strong><br />
<strong>in</strong>come <strong>and</strong> so help them out of poverty.<br />
In <strong>2015</strong>, the CLMRS was extended to a further 18<br />
co-operatives, tak<strong>in</strong>g the total to 40, <strong>and</strong> will cover all<br />
79 co-operatives by 2016.<br />
The ma<strong>in</strong> actors of the CLMRS<br />
• Community Liaison People: the <strong>in</strong>itial, <strong>and</strong> <strong>in</strong>tegral, step<br />
of the CLMRS is active work with the communities where<br />
the farmers live. By the end of <strong>2015</strong>, <strong>Nestlé</strong> had recruited<br />
687 Community Liaison People (CLP). Their role is to<br />
engage with local community households to gather all the<br />
data that is required better to underst<strong>and</strong> the environment<br />
<strong>in</strong> which they live <strong>and</strong> to identify issues related to child<br />
lab<strong>our</strong> risks. In <strong>2015</strong>, CLPs had <strong>in</strong>terviewed 14 582<br />
producers among the 24 470 registered cocoa farmers <strong>in</strong><br />
40 co-operatives; 26 679 children were <strong>in</strong>cluded with<strong>in</strong><br />
these assessments. This data is collected through specific<br />
templates that the CLPs can access via cell phones provided<br />
by <strong>Nestlé</strong> <strong>and</strong> ICI. Once gathered, the <strong>in</strong>formation is<br />
consolidated by the Co-op Child Lab<strong>our</strong> Agent (see below).<br />
The CLPs report situations <strong>in</strong> which children are at risk, <strong>and</strong><br />
organise awareness-rais<strong>in</strong>g activities <strong>in</strong> the communities to<br />
prevent child lab<strong>our</strong>. As a result of the CLMRS, by the end<br />
of <strong>2015</strong>, 120 067 farmers <strong>and</strong> community members had<br />
attended 7044 community awareness sessions.<br />
• Co-op Child Lab<strong>our</strong> Agents: as part of the CLMRS, each<br />
farm<strong>in</strong>g co-operative that works with <strong>Nestlé</strong> appo<strong>in</strong>ts a<br />
Child Lab<strong>our</strong> Agent. The agent is responsible for<br />
consolidat<strong>in</strong>g the <strong>in</strong>formation provided by the communities<br />
<strong>and</strong> pass<strong>in</strong>g this <strong>in</strong>formation along the cha<strong>in</strong>. Furthermore,<br />
the agent proposes child lab<strong>our</strong> prevention <strong>and</strong> remediation<br />
efforts based on the <strong>in</strong>formation <strong>and</strong> data collected <strong>in</strong> each<br />
community, <strong>and</strong> is responsible for ensur<strong>in</strong>g that these<br />
activities are followed through. The CLMRS <strong>in</strong> Côte d’Ivoire<br />
currently <strong>in</strong>volves 40 Child Lab<strong>our</strong> Agents, <strong>and</strong> a total of<br />
2019 agents, co-op managers, suppliers’ staff members <strong>and</strong><br />
<strong>Nestlé</strong> staff members were tra<strong>in</strong>ed <strong>in</strong> child lab<strong>our</strong> issues by<br />
ICI <strong>in</strong> <strong>2015</strong>.<br />
• Suppliers: suppliers are the next stage <strong>in</strong> the system. <strong>Nestlé</strong><br />
currently works with six ma<strong>in</strong> suppliers <strong>in</strong> Côte d’Ivoire.<br />
Rais<strong>in</strong>g their awareness on child lab<strong>our</strong> <strong>and</strong> build<strong>in</strong>g their<br />
capacities <strong>in</strong> this area is a key success factor of the CLMRS.<br />
So far, 158 suppliers’ staff members, <strong>in</strong>clud<strong>in</strong>g agronomists,<br />
have received child lab<strong>our</strong> tra<strong>in</strong><strong>in</strong>g from ICI. Suppliers play a<br />
key role <strong>in</strong> the engagement process with the co-operative<br />
managers, expla<strong>in</strong><strong>in</strong>g how the system works <strong>and</strong> what is<br />
expected from them as part of it.<br />
• <strong>Nestlé</strong>: the last l<strong>in</strong>k <strong>in</strong> the cha<strong>in</strong> is <strong>Nestlé</strong>. <strong>Nestlé</strong> Côte<br />
d’Ivoire has a dedicated child lab<strong>our</strong> manager who<br />
coord<strong>in</strong>ates the overall implementation <strong>and</strong> function<strong>in</strong>g of<br />
the CLMRS. In close collaboration with ICI, we seek to:<br />
– Ensure that the CLMRS is rolled out to all the <strong>Nestlé</strong><br />
Cocoa Plan co-operatives by the end of 2016, <strong>and</strong><br />
engage with <strong>in</strong>dividual co-operatives to secure their<br />
buy-<strong>in</strong> along this j<strong>our</strong>ney;<br />
– Participate <strong>in</strong> the recruitment process of the CLP <strong>and</strong> the<br />
Co-op Child Lab<strong>our</strong> Agents;<br />
– Consolidate the data <strong>and</strong> <strong>in</strong>formation gathered through<br />
the system;<br />
– Make sure that each child lab<strong>our</strong> case identified is<br />
remediated <strong>in</strong> a timely manner <strong>and</strong> <strong>in</strong> the best <strong>in</strong>terest of<br />
the child or children <strong>in</strong>volved; <strong>and</strong><br />
– Develop a fund<strong>in</strong>g model for the system that is f<strong>in</strong>ancially<br />
susta<strong>in</strong>able over the long term.<br />
Enabl<strong>in</strong>g organisations<br />
The CLMRS would not function properly without the support<br />
provided by the ICI <strong>and</strong> the FLA, both of which play<br />
complementary roles as part of the system.<br />
ICI is <strong>in</strong>volved <strong>in</strong> work at a ground level, <strong>and</strong> has <strong>in</strong>creased<br />
staff members to extend the roll-out of the system by:<br />
• Recruit<strong>in</strong>g CLP <strong>and</strong> Child Lab<strong>our</strong> Agents;<br />
• Design<strong>in</strong>g, collat<strong>in</strong>g <strong>and</strong> coord<strong>in</strong>at<strong>in</strong>g the child lab<strong>our</strong><br />
database;<br />
• Tra<strong>in</strong><strong>in</strong>g all the different actors of the system on child lab<strong>our</strong><br />
but also on their role as part of the system;<br />
• Conduct<strong>in</strong>g awareness-rais<strong>in</strong>g sessions on child lab<strong>our</strong> for<br />
farmers <strong>and</strong> local communities;<br />
• Design<strong>in</strong>g <strong>and</strong> implement<strong>in</strong>g remediation activities; <strong>and</strong><br />
• Collect<strong>in</strong>g KPIs for the purpose of report<strong>in</strong>g on the overall<br />
performance of the system.<br />
The FLA plays a different role, ensur<strong>in</strong>g that <strong>Nestlé</strong> as a<br />
company becomes progressively compliant with its own Code<br />
of Conduct. The FLA’s role is based on audit<strong>in</strong>g rather than<br />
implementation. Each year, the FLA organises its own external<br />
audits, select<strong>in</strong>g co-operatives at r<strong>and</strong>om <strong>and</strong> send<strong>in</strong>g auditors<br />
to them to ensure that we meet the FLA Code of Conduct, as<br />
well as the <strong>Nestlé</strong> action plan. Follow<strong>in</strong>g each assessment, the<br />
FLA publishes the results along with <strong>our</strong> response to each<br />
f<strong>in</strong>d<strong>in</strong>g <strong>and</strong> any corrective actions taken.<br />
In <strong>2015</strong>, the FLA conducted five such audits at six<br />
co-operatives <strong>in</strong> Côte d’Ivoire that supply us with cocoa via the<br />
<strong>Nestlé</strong> Cocoa Plan.<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> 240