Responsible sourcing

Our commitment: Implement responsible sourcing in our supply chain



Our commitment: Implement responsible sourcing in our supply chain


Our objectives

By 2015 – To both improve and demonstrate compliance with the Nestlé Supplier Code, and complete 10 000 Responsible Sourcing audits, 70% of them with full compliance.

By 2015 – 40% of the volumes of the 12 priority categories (palm oil; soya; sugar; pulp and paper; coffee; cocoa; dairy; fish and seafood; shea; vanilla; hazelnuts; and meat, poultry and eggs) to be traceable.


Our progress

By the end of 2014, we had audited 8 700 of our 10 000 Tier 1 suppliers (2013: 6 500), 73% of which fully complied with our Supplier Code. 1 300 more audits are planned for 2015. If we reach 10 000 audits by the end of 2015, we will have covered over 60% of our raw and packaging material suppliers, accounting for over 95% of our overall spend.

Currently, 38% of purchased volumes of our priority categories are traceable (2013: 17%), which means all farmers involved in supplying that ingredient (even via third parties) are known and identifiable by Nestlé or our suppliers. Furthermore, 28% (2013: 9%) are Responsibly Sourced, whereby the plantation or farm is either compliant with our Responsible Sourcing Guideline requirements or has an improvement plan in place, or complies with an equivalent certification scheme.

With operational activities for meat, dairy, shea and fish commencing in 2014, we are confident that 40% of our priority category volumes will be traceable, and 30% Responsibly Sourced, by 2015.


Our perspective

With consumers and other stakeholders increasingly looking for information about where their food comes from and how it was produced, responsible sourcing is an important investment, in both Nestlé’s future and that of the producers we rely on.

 

Our supply chains are complex and continuous improvement requires all parties to address social and environmental issues. We’ve made steady progress by encouraging the adoption of good agricultural practices, and engaging in capacity building, knowledge sharing and training, enabling our suppliers to reach higher levels of sustainability.

As well as working alongside NGO partners such as Proforest and The Forest Trust to map our supply chains for sugar, soya, palm oil and paper, we are also taking a proactive role in assessing suppliers of animal-derived ingredients against our Responsible Sourcing Guideline on farm animal welfare, and in tackling deforestation and addressing child labour in our supply chains.


Our Responsible Sourcing Traceability Operations

To be able to answer a key question that is being asked by our consumers: “Where does this food comes from?”, Nestlé is deploying a Supply Chain Management Programme operated by Achilles Ltd.

This Programme provides Nestlé suppliers (and their sub-suppliers) with a cost-effective, time-efficient and secure online process to trace their ingredients back to all potential farm or plantation’s origins.

Supply Chain Mapping is an integral requirement of Nestlé’s Responsible Sourcing Traceability Operations (RST-SCM) and is governed by the Nestlé Supplier Code.

The main objectives of the Supply Chain Mapping Programme are:

  • Develop a comprehensive picture of the extended supply chain right down to the farm level
  • Gain a better understanding of the suppliers that contribute to the products sold by Nestlé
  • Create a single, reliable online data source of supply chain mapping information that can be accessed centrally and is maintained annually and securely by an independent third party

The Programme is being rolled-out across our global supply base using a phased approach based on regions and product categories. Participation is therefore on an invitation basis only.

To find out more, download the RST-SCM Supplier Brochure (pdf, 655 Kb)


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