Implement responsible sourcing in our supply chain and promote animal welfare
Implement responsible sourcing
Consumers have a right to know where their food comes from, and how it was sourced.
Why it matters
Consumers and stakeholders increasingly want to know where their food comes from, what it contains and how it was made. We are proud to be implementing responsible sourcing and to answer our consumers’ questions. Transparency in our supply chains and responsible sourcing of our materials are essential to ensuring our sustainable future.
As a leading food and beverage manufacturer, we have established a robust set of guidelines on responsible sourcing and are continually working to make our supply chain more transparent. This includes using 100% cage-free eggs in our European supply chain by 2020.
What we are doing
We are continuously improving the way we source our supplies.
For Tier 1 suppliers, cover 80% of the total spend and volume sourced from audited and compliant suppliers.
Our result: 61% of our total spend and volume sourced from audited and compliant suppliers.
For upstream, 80% of the spend and volume of our priority categories to be traceable and 70% to be responsibly sourced.
Our result: 72% of our 14 priority categories of raw materials are traceable and 63% are responsibly sourced.
|Traceable Actual %||Level of traceability||Responsibly sourced
|Cereal||55%||36.2%||Back to farm||31.6%||45%|
|Cocoa||43%||49%||Back to plantation||49%||43%|
|Coffee||70%||57%||Back to group of farms/plantations||57%||70%|
|Dairy||85%||86.3%||Back to farm||80%||85%|
|Fish and seafood||95%||99%||Whole fish only, back to fishery/farm||42%||50%|
|Hazelnuts||90%||90%||Back to farm||80%||75%|
|Meat, poultry and eggs||31%||32.5%||Back to farm||23.9%||23.5%|
|Palm oil||70%||54%||Back to plantation||64%||80%|
|Pulp and paper||95%||90%||Back to country of origin (applies to virgin fiber only). Responsibly sourced figures include recycled fiber||90%||90%|
|Soya||85%||78%||At least back to mill||75%||80%|
|Spices||Reporting from 2019||Reporting from 2019||Reporting from 2019||Reporting from 2019||Reporting from 2019|
|Sugar||80%||80.5%||At least back to mill||61%||60%|
|Vanilla||85%||99.5%||Back to plantation||89.4%||90%|
|Vegetables||60%||70%||Back to primary processor||74%||50%|
Happier chickens are tastier
We are set to improve the welfare of millions of chickens in Europe through our leading food brands Herta, Buitoni, Wagner and Maggi. By working with supply chain partners, we’re encouraging improved living conditions, ensuring more humane practices and reducing stocking density. The result is that by 2026, all Nestlé products in Europe that use chicken will have reached a higher standard for welfare.
Consumers want to know where their food comes from and how it is made. As part of our commitment to source ingredients responsibly, we will improve welfare standards for millions of chickens used in our food products in Europe, including our Herta, Buitoni, Wagner and Maggi ranges.Marco Settembri, CEO, Nestlé Zone Europe, Middle East and North Africa
We were also proud to win a Good Egg Award in 2018 because of our decision to source only eggs from cage-free hens for our food products in Europe by 2020. You can read more details about our award and the other work we’re doing with meat, poultry and eggs.
Bringing smallholder palm oil farmers into the fold
Smallholders account for 40% of global palm oil production. Given this, NGO The Forest Trust (TFT) and Nestlé are collaborating on five smallholder initiatives under the TFT Rurality program in Indonesia, Malaysia, Ghana, Côte d’Ivoire and Peru. The aim is to build smallholder inclusion into our supply chains, while developing smallholders’ resilience and their capability to produce responsibly. These projects aim to create value for everyone along the supply chain: smallholders, mill operators, dealers, suppliers and Nestlé. Depending on the area, these initiatives focus on efficiency, self-sufficiency, diversification, innovation and infrastructure.
Nestlé is also co-funding a project with our supplier Wilmar in Honduras, called the WISSH project, which will support 5,000 smallholders. A video on the website showcases the work of the WISSH project during its first two years.
We co-founded the industry’s first global collaboration for animal welfare
In October 2018, we joined with six other food companies to launch the Global Coalition for Animal Welfare (GCAW). The world’s first global food industry-led collaboration, GCAW unites major companies and animal welfare experts to improve standards for animals at scale.
By building relationships with like-minded stakeholders, Nestlé is part of a global effort to address barriers to change and to accelerate progress on key animal welfare issues.
GCAW plans to publish a collective action agenda in 2019, focusing on five priority areas, including cage-free policies, improved broiler chicken welfare, farmed fish welfare, antimicrobial resistance and global standards for transportation and slaughter.
Together, the seven member companies of GCAW serve 3.7 billion customers every day. This is a huge opportunity for us to make a difference to animal welfare standards around the world.
Our program to support smallholder sugar producers in the Philippines
In partnership with Proforest and the Sugar Industry Foundation, Inc., we have been supporting thousands of smallholders in the Philippines’ largest sugar-growing region, Negros Occidental, to increase their incomes and develop safer and more sustainable farms.
Since the program launched in February 2017, 773 farmers have attended seminars on productivity and sustainable farming practices. There have also been numerous sessions raising awareness of health risks to sugarcane workers and farmers, and we have distributed nearly 958 subsidized sets of personal protective equipment.
The first time I facilitated a community tipon-tipon (gathering) in my co-operative, I felt nervous but confident because I was trained, and excited, because I am officially an active child rights advocate. After the tipon-tipon, I noticed a positive change within our co-op. Parents now try their best to send their children to school and no longer let them help out on the sugar cane farm.Anonymous sugarcane farmer, Negros Occidental
Read more about the impact of the program on sugar-growing communities in the region.
Promoting better dairy farming in Brazil
To encourage better management of dairy farms in Brazil, we have supported the development of software to help farmers collect and analyze data for use in their planning, with farmers growing their volume by 50% more than those without the software. We also implemented a best practice program, BPF Mature, helping 140 farmers improve animal welfare and their environmental impact.
Improving soil health in France
A partnership with The Forest Trust (TFT), the Living Soils Initiative was launched in January 2018 to help farmers in our supply chain adopt soil-regenerative practices. According to the UN Food and Agriculture Organization (FAO), these practices bring enormous benefits, including:
- Limiting soil erosion, a crucial factor as a billion tonnes of soil disappears each year in Europe.
- Increasing the water retention of soil, helping farms become resilient to drought and prevent flooding.
- Improving water quality, as increased organic matter in the soil brings more infiltration and biological activity, making the soil become a more effective filter.
- Increasing biodiversity, as crop diversity improves soil biodiversity.
- Increasing soil carbon sequestration, meaning soil can store carbon.
As part of the initiative’s pilot project, we’ve been helping potato farmers in France adopt soil-regenerative techniques through events like training sessions, technical days and field visits. So far, 15 farmers have joined the project, representing an area of 3000 hectares, with 50 more currently considering joining. Already, we’ve helped farmers introduce new crops into their rotation, including wheat, beetroot, mustard, sunflower, peas and more. We have also implemented two field trials on innovative agronomic techniques.
A helpline for human and labor rights abuses in palm oil
We partnered with Sime Darby Plantation to create a helpline for palm oil workers in Malaysia to report human and labor rights abuses. Co-developed by the Responsible Business Alliance and solution developer ELEVATE, the helpline uses the cutting-edge Laborlink platform to enable workers to safely report on working conditions, recruitment, safety and other rights issues.
We believe technology can help us address some of the most stubborn problems we face today, and this project is open to whatever channel the worker prefers – SMS, Facebook Messenger, or a toll-free phone number.
And this pilot is a two-way channel. Built on our Corporate Business Principles and Responsible Sourcing Standard (pdf, 2MB), it allows us to ensure reported issues are handled through clear protocols and are consistently followed up.
This initiative marks another milestone in the implementation of the Nestlé action plan on labor rights in palm oil (pdf, 392KB). We are very clear that human and labor rights abuses have no place in Nestlé’s supply chain. This is why we are committed to tackling this issue and helping drive positive change in the palm oil sector.Magdi Batato, Nestlé Executive Vice President, Head of Operations
This pilot builds on the work we’ve already done in the palm oil industry in Malaysia. In November 2018, a report commissioned by the Consumer Goods Forum, in which we play an active role, looked at forced labor in the sector and indicated the crucial need for functioning grievance mechanisms.
Looking to the future, we aim to help others in the industry adopt the helpline and extend this tool to thousands more workers in Malaysia.