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
Child labor G4-DMA, G4-HR5, G4-HR11
In 2015, USD 20 507 (CHF 20 714) was invested in
remediation equipment and activities during the harvest
period. Around 3000 hats and 3000 pairs of gloves were
provided to those picking hazelnuts, as well as 600 first aid
kits; and a toll-free number was promoted, through which
complaints could be made. Furthermore, 10 summer schools
and camps for younger children were organised; these were
attended by 1808 children.
Read more about hazelnuts in the Rural development
chapter.
Action plan for vanilla
Madagascar is one of the world’s leading producers of vanilla,
and its importance to the Malagasy economy is clear; the
national agricultural industry employs 80% of the population.
However, a shortage of bees means that vanilla, an orchid, has
to be pollinated by hand. Combined with harvest and then
curing, this makes vanilla a labour-intensive crop and,
therefore, more suited to small-scale farmers. There are about
80 000 farmers cultivating vanilla, living on an average of
USD 2 (CHF 1.98) per day, and most rely almost exclusively on
vanilla for their income. With such low levels of income,
smallholder farmers struggle to meet their basic needs and
often rely on child labour.
As vanilla is a crop that requires delicate handling, children
normally start unpaid work on the less delicate tasks around
the age of 13, with only older children help their parents during
the labour-intensive pollination phase. The work that children
are involved with is considered training, to prepare them for
when they are older and take on the responsibility themselves.
Nestlé’s priority in this context is to work with partners to
find solutions tailored to helping farmers diversify their crops,
reduce vanilla dependence and tackle the issue of child labour.
In 2013, Nestlé began a partnership with local supplier
Givaudan to develop responsible sourcing, including combating
child labour through sturdier educational infrastructures.
Since 2010, Givaudan and its supplier Henri Fraise Fils (HFF)
have worked with the Development Advice Group, focusing on
village development, which led to the creation of the
Association Développement Equitable à Madagascar
(Association for the Fair Development of Madagascar) in June
2014. The association manages the organic vanilla farmers’
rural development programme in the Sambava district, which
is financed by HFF, Givaudan and Nestlé. The programme aims
to provide selected villages with better access to education by
building, extending or repairing schools, and providing
equipment. To date, four schools have been built.
Improved educational facilities mean that children of vanilla
farmers have the opportunity to seek other employment
outside of vanilla cultivation. To date, 3316 schoolchildren and
2200 Malagasy families have benefited from the programme.
Through the Responsible Sourcing activities and fund
allocation in 2015, we were able to sponsor the building of two
schools close to our sourcing locations.
While the many challenges facing the vanilla industry still
include security of supply, price stability and better quality
beans, the focus has increasingly switched to the social
responsibility of the industry, the organisation of farmers and
communities, and tackling child labour. Although there is
much to be done, these efforts show that we and our partners
are committed to real change.
Read more about vanilla in the Rural development chapter.
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