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, Investment G4-DMA,
Supplier human rights assessment G4-DMA, Local communities G4-DMA, G4-SO1, G4-SO2, Animal welfare G4-DMA, Supplier assessment for impacts on society G4-DMA
MATERIALITY ISSUE VALUE CHAIN KEY: Moderate Significant Major
Agriculture Tier 1
suppliers
Nestlé
Retail/
business
channels
Consumers
Community development and unemployment*
Improving people’s lives through community and societal
participation and improving access to employment, education
and skills development.
Sub-issues defined
• Community relations: positively engaging with communities
in areas of operation.
• Income and wealth inequality: working to close the gap in
the distribution of income, wealth and assets.
• Living wage: ensuring those in work 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.
• Youth unemployment: tackling the number of young people
not in employment, education or training.
* These issues have sub-issues that are shared across Rural development and Our people.
Our commitments
Our public commitments reflect our business’s key material
issues, and enable stakeholders to challenge us about our
performance and the ways in which we address the issues we
face. Our commitments in the areas of rural development and
responsible sourcing are to do the following:
• Roll out the Rural Development Framework to understand
the needs of farmers;
• Implement responsible sourcing in our supply chain;
• Continuously improve our green coffee supply chain; and
• Roll out the Nestlé Cocoa Plan with cocoa farmers.
These formal commitments have been translated into a number
of operational priorities. Key performance indicators track our
impacts on farm economics, women’s empowerment, labour
standards, nutrition, water and sanitation.
The sustainable development of agriculture has to be
a central pillar in the endeavour to achieve food and
nutrition security. All actors in the food value chain,
starting with farmers, must be involved.”
Paul Bulcke, Chief Executive Officer, Nestlé
Governance and management systems
Strategic responsibility for Nestlé’s rural development activities
and procurement lies with Magdi Batato, the Executive
Vice-President of Operations, while final accountability rests
with the Executive Board and the CEO.
The operational strategy for rural development is chiefly
delivered by the Corporate Agriculture Team through a network
of sourcing staff and extension workers in the supply chain.
Responsible Sourcing, including farm animal welfare, is jointly
delivered by Corporate Procurement and Corporate Agriculture.
Farmer Connect and direct sourcing operations
Each business unit takes overall responsibility for local rural
development activities in its own area. As appropriate, the
Rural Development Framework may be used to help inform
where interventions are needed.
As well as our in-house expertise, we also call on the advice
and capabilities of partners at different stages of the supply
chain, to assist us with tracing, assessing and monitoring
activities. This includes a website and toll-free helpline that
suppliers and farmers can use for reporting violations of
regulations, laws and the Nestlé Supplier Code anonymously
and confidentially.
Our progress against the commitment objectives is indicated
throughout the chapter using the following icons:
Achieved
In progress
Not yet achieved
New objective
Nestlé in society – Creating Shared Value and meeting our commitments 2015 93