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, G4-LA14, Investment G4-DMA, Child labor G4-DMA, Forced or compulsory labor G4-DMA,
Supplier human rights assessment G4-DMA, Local communities G4-DMA, Animal welfare G4-DMA, Compliance G4-DMA (Society), Supplier assessment for impacts on society G4-DMA
Responsible sourcing through our
procurement activities
The Nestlé Supplier Code sits at the heart of every business
relationship with our suppliers. The code reflects our
commitment to conducting our business activities in full
compliance with applicable laws, and to being guided by
integrity and honesty. It sets out the non-negotiable minimum
standards and best practices that we require our suppliers and
their own suppliers – right down to the individual farm level –
to respect and adhere to when doing business with us. Simple
pictorial versions of the code are made available to overcome
variations in language and literacy levels.
Implementation of the Supplier Code’s requirements is
embedded into our internal procurement procedures and
objectives, using approaches that are tailored to the nature
of the supply chain, the type of supplier and our commercial
relationship with them. However, as each supply chain has
its own characteristics and issues, we’ve also developed the
Nestlé Responsible Sourcing Guideline (RSG), along with
category-specific requirements for our priority ingredients and
materials. The guideline helps our suppliers improve practices,
where necessary, at farm or plantation level, with Nestlé’s
requirements often going beyond legal or international
requirements.
The guideline follows four general principles:
• Suppliers are expected to engage in a process of
continuous improvement;
• Suppliers should conduct their business with Nestlé in an
open and transparent way;
• Nestlé will support suppliers not yet able to comply with all
aspects of the RSG, but who are committed to becoming
compliant over time and demonstrate continuous, tangible
progress; and
• Suppliers are to continuously monitor and verify their
performance and progress, complying with independent
assessment where necessary.
Our policies and standards
Rural development is one of three priority areas for our
business, as highlighted in the Nestlé Corporate Business
Principles, which lay the foundations for everything we do.
The relevant principle states:
We contribute to improvements in agricultural
production, the social and economic status
of farmers, rural communities and in
production systems to make them more
environmentally sustainable.”
Nestlé’s Corporate Business Principles
Our ambitions to support rural development are set out in the
Nestlé Commitment on Rural Development, and are consistent
with the UN Sustainable Development Goals (also known as
the Global Goals) on poverty and hunger, nutrition, education,
gender equality and environmental sustainability.
In addition, the Nestlé Commitment on the Responsible Use
of Materials from Agricultural Origin applies to the upstream
value chain back to the primary production level. As part of
our drive to ‘remove the worst, promote the best and improve
the rest’, its principles span continuous improvement,
transparency along the value chain, supplier accountability and
support, and credible verification.
The Nestlé Supplier Code sets out the non-negotiable
minimum standards and best practices that we require our
suppliers and their own suppliers – right down to the individual
farm level – to respect and adhere to when doing business
with us. Implementation of the Supplier Code’s requirements
is embedded into our internal procurement procedures and
objectives. In addition, the Nestlé RSG helps our suppliers to
improve practices, where necessary, at farm or plantation
level, and ensure they meet or exceed internationally
recognised standards.
To maintain best practice, all our teams are guided by a
series of policies, procedures and documents, including:
• The Nestlé Commitment on Rural Development;
• The Nestlé Supplier Code;
• Nestlé’s Responsible Sourcing Guideline;
• The Nestlé Commitment on Natural Capital;
• The Nestlé Commitment on the Responsible Use of
Materials from Agricultural Origin;
• The Nestlé Commitment on Farm Animal Welfare;
• The Nestlé Commitment on Land & Land Rights in
Agricultural Supply Chains;
• The Nestlé Commitment on Child Labour in Agricultural
Supply Chains;
• The Nestlé Commitment to reduce food loss and waste; and
• The Nestlé Commitment on Labour Rights in Agricultural
Supply Chains.
Our commitment documents, derived from these policies and
procedures, provide accessible information on the specific
pledges we have made about key issues, such as farm animal
welfare and labour rights.
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