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
Procurement practices G4-DMA, G4-EC9, Supplier assessment for labor practices G4-DMA, Supplier human rights assessment G4-DMA,
Local communities G4-DMA, Supplier assessment for impacts on society G4-DMA
Our role in rural development and responsible sourcing
As a global company, Nestlé has a significant direct and indirect economic impact across our value chain, around
our factories and particularly through our supply chain. Our approach to Creating Shared Value is perhaps most
evident in the area of rural development, focusing on the rural communities around the world from which we
source agricultural raw materials.
Millions of farmers depend on our business for their livelihoods. More than 760 000 supply us directly or through
co-operatives and collection centres, while others are part of longer supply chains. The wellbeing of these farmers,
small-scale entrepreneurs, suppliers and rural communities is intrinsic to securing global food supplies, while
delivering our own growth strategy.
The year in brief
Challenges Actions Achievements
Farming seen as not attractive
Rural communities need to be more
attractive places in which to live, work
and invest. Farming needs to be seen as
a business and a livelihood of choice that
offers opportunities for societal
advancement.
Rural Development Framework
Through the framework we have identified
eight core areas that we believe are
important elements of rural development.
We have completed 11 baseline
assessments so far, to help us ascertain
current conditions and design
appropriate interventions.
Low productivity
Bringing about real change at a farm
level provides many challenges, from
checking that farmers act on our training
and advice, to ensuring they have
access to credit.
Farmer Connect
Our Farmer Connect programme supports
farmers through local sourcing and
assistance, training, developing alternative
income streams and supporting women
and young farmers.
400 000
Farmers accessing training through our
capacity-building programmes.
Supply chain complexity
Many of our supply chains are
complex, which makes tracing raw
materials a challenge.
Publishing progress reports
We publish category-specific reports
throughout the year, detailing the
progress we are making in the
responsible sourcing of our priority
raw materials.
54%
Percentage of high-priority raw materials
categories that was traceable back to the
primary source (e.g. plantation or farm)
and/or had their supply chains mapped.
Nestlé recognises that loyalty between farmers, suppliers and
the company is supported and enhanced by investments along
the value chain – for example, the provision of improved
planting materials, training programmes and technical support.
For a number of years, we have engaged heavily in rural
development through schemes such as Farmer Connect and
the Sustainable Agriculture Initiative at Nestlé (SAIN).
It is increasingly evident, however, that in addition to
supporting farmers within the supply chain, we need to
facilitate progress on broader aspects, such as women’s
empowerment, nutrition, and access to clean water and
adequate sanitation. This support helps to create the
circumstances that allow farmers to pursue their livelihoods by
choice, and strengthens the communities in which they live.
Now, to guide us further, we have developed a diagnostic
tool and process – the Rural Development Framework – to
help us align our business activities with local priorities. We
continue to share our progress on supplier assessments and
traceability activities; and on our bespoke coffee and cocoa
plans for improving the lives and social conditions of farmers
and the quality of their crops.
We recognise that the boundaries between the roles and
responsibilities of governments and those of companies are
becoming increasingly blurred. To support rural development,
we continue to work cooperatively with a range of partners at
national and international levels.
See also: Human rights and compliance.
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