|Province||Number of mills within Nestlé's supply chain||Cumulated number of deforestation alerts within 50 km of the mills||Cumulated deforested area since 31 Dec 2015 within 50 km of the mills (hectares)||Number of Tier 1 suppliers operating mills|
Our palm oil transparency dashboard
Since the start of 2019, Starling has allowed us to monitor our entire palm oil supply chain using satellite imagery. This follows successful pilots in Malaysia, Ecuador, Mexico, and Nigeria.
This work is part of our commitment to achieving deforestation-free commodities by 2020 and is changing the way we manage deforestation risks in our palm oil supply chains.
Here we're sharing our progress and the challenges involved. We welcome suggestions on how to improve our approach. If you have any comments, please email [email protected].
We are committed to fight deforestation from the top
Watch Magdi Batato, Head of Operations Nestlé S.A. and Laurent Freixe, Zone Americas CEO, explain our commitment.
What is Starling teaching us about deforestation?
Starling is helping us to understand the complex deforestation patterns around palm oil producing areas: where deforestation occurs, what drives deforestation and who is involved. We use this information to identify deforestation cases and risks, and to prioritise actions within our supply chain.
The table below provides some information on the deforestation trends we are observing around the mills we supply from. The number and area of deforestation alerts reflect all deforestation within 50 km of mills in the Nestlé supply chain.
Deforestation observed may be linked to other industries, including other agricultural crops, mining and urban development, or for palm oil that doesn’t enter our supply chain.
We use the alerts to investigate deforestation cases in our supply chain and take action where they are verified. As engagement with our suppliers progresses, we will be able to provide more information on the links between deforestation and our supply chain.
Province Number of mills within Nestlé's supply chain Cumulated number of deforestation alerts within 50 km of the mills Cumulated deforested area since 31 Dec 2015 within 50 km of the mills (hectares) Number of Tier 1 suppliers operating mills Sabah 132 128,164 484,721 35 Perak 46 21,172 76,206 39 Kedah 6 4,200 25,493 37 Penang 3 1451 6282 17 Negeri Sembilan 17 3,725 18,252 38 Terengganu 13 10,470 48,836 34 Sarawak 74 181,027 723,178 37 Pahang 71 66,843 553,656 38 Johor 66 11,734 102,026 39 Kelantan 11 13466 85278 34 Selangor 19 5,589 19,265 34 Melaka 3 180 778 33
Our Starling journey
Starling is helping us gain a better understanding of the deforestation risks around our palm oil supply chain. As we act on this knowledge we want to share our journey with you.
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Our 2018 palm oil grievances
Our palm oil grievance management process is designed to track and manage allegations raised about violations of the Nestlé Responsible Sourcing Standard (pdf, 2Mb) and Corporate Business Principles in our palm oil supply chains. Grievances can be raised through site assessments, direct reporting to Nestlé, or via our independent grievance mechanism, Tell Us. In future we will include the deforestation alerts received through Starling connected to our palm oil supply chain.
In 2018, we suspended ten companies from our supply chain as a result of our grievance management process. The remainder are under investigation or have an action plan and are being monitored.
Grievances raised in 2018
|Country||Number of cases raised|
*5 grievances about direct suppliers, 52 grievances about upstream suppliers
We are making progress towards achieving our no deforestation commitment.
To date 60% of our palm oil is verified as deforestation-free. This was achieved through a combination of tools:
- Traceability to plantations classified as no or low risk of deforestation
- Verification on the ground through High Carbon Stock and High Carbon Value assessments by our partner Earthworm or traceability to RSPO segregated certified origins
- Starling satellite monitoring
We continue to work on identifying and addressing any risks in our remaining supply chains to fulfil our commitment. The full rollout of Starling is helping us to accelerate this in our palm oil supply chains.
60% of our palm oil is verified as deforestation-free
Traceability to plantations classified as no or low-risk of deforestation 8% Verified on the ground * 49% Verified through Satellite monitoring 3% Not verified 40%
* Through High Carbon Stock and High Carbon Value assessments by our partner Earthworm or traceability to RSPO segregated certified origins
16 July 2018
RSPO reinstates Nestlé’s membership