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
Indirect economic impacts G4-DMA, Procurement practices G4-DMA, G4-EC9, Supplier assessment for labor practices G4-DMA, G4-LA15,
Supplier human rights assessment G4-DMA, Local communities G4-DMA, Animal welfare G4-DMA, Supplier assessment for impacts on society G4-DMA
Material issues
Nestlé uses a formal materiality process to identify the most
important issues for our stakeholders and our business. The
results are communicated in a materiality matrix. Our material
issues are also considered and mapped with regard to their
degree of importance in different parts of the Nestlé value
chain. In the value chain, ‘Agriculture’ includes smallholder
farmers with whom we do not have direct relationships and
‘Tier 1 suppliers’ refers to those suppliers in direct commercial
relationships with Nestlé.
The Nestlé value chain
Agriculture
Tier 1
suppliers
Nestlé
Retail/
business
channels
Consumers
Each material issue is made up of a number of sub-issues,
which are highlighted during the research process. They are
used as a lens to help define the scope of analysis. In this
section, we have provided a synthesis of the findings related to
rural development.
Five material issues fell under the banner of rural
development and responsible sourcing that were rated as being
of concern to our stakeholders and of strategic importance to
our business: rural development, traceability, farm animal
welfare, community development and unemployment,
and women’s empowerment.
These issues are critical to our responsible sourcing of
agricultural raw materials. Our stakeholders expect us to meet
the highest standards of farm animal welfare and traceability,
and to ensure that ingredients have been grown and processed
responsibly and can be traced back to origin. They see work on
rural development as important to improving livelihoods and
promoting sustainable agricultural communities.
MATERIALITY ISSUE VALUE CHAIN KEY: Moderate Significant Major
Agriculture Tier 1
suppliers
Nestlé
Retail/
business
channels
Consumers
Rural development
Directly and indirectly promoting economic activity and
improving livelihoods of agricultural workers in the supply
chain to promote sustainable agricultural communities.
Sub-issues defined
• Rural living wage: ensuring farmers and agricultural workers
are paid enough to maintain a decent standard of living,
adequately covering the costs of food, shelter, and other
necessities for oneself and one’s family.
Traceability
Ensuring that priority ingredients have been grown and
processed responsibly and can be traced back to origin where
possible.
Animal welfare
Safeguarding the wellbeing of animals in the supply chain and
promoting farm animal health and welfare.
Women’s empowerment*
Empowering women to participate fully in society and the
economy across the value chain, in the workplace,
marketplace, and community.
Sub-issues defined
• Women farmers: protecting the rights of women in the
agricultural labour force and improving their access to and
ownership of agricultural resources and inputs.
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