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Coconut sourcing

Nestlé is working toward creating a more sustainable coconut supply chain.

We use coconut in many of our confectionery products. We buy coconut as oil, milk and other forms.

While we source our coconut from several countries, the bulk is from Asia (Sri Lanka, the Philippines and Indonesia) and South America (Brazil).

The journey our coconut supply takes is wide-reaching, which can make it difficult to gain complete transparency. Other challenges include environmental risks such as climate change, as well as social issues relating to farmers’ livelihoods.

To hold our suppliers and ourselves accountable and drive industry-wide transparency, we have published the list of our coconut supply origins in our supply chain.


Our approach to increasing transparency in our coconut supply

We are working with suppliers and farmers to seek ever-greater transparency and traceability in sourcing coconut and to deliver positive outcomes in farming areas.

We seek opportunities for industry collaboration to develop a common, consistent approach across buyers to deliver positive impact at scale and where it is the most needed.

Tackling risks and challenges in our coconut supply chain

Our sustainable production journey for coconut is at an early stage. Along with mapping our supply chain, we have mapped the key challenges across coconut origins and, through assessments, are obtaining more detail about how prevalent they are in different locations. The key challenges identified so far, are:

  • Dispersed supply chains making traceability and farmer engagement challenging
     
  • Vulnerable livelihoods of smallholder landowners related to: 
    • Low yields and aging trees
    • Low incomes 
    • Lack of information about markets
    • Climate change and extreme weather events
       
  • Low productivity caused by: 
    • Aging trees 
    • Limited technical (good agricultural practices) and financial knowledge
    • Climate change and extreme weather events
       
  • Safety of working conditions 

These challenges vary from one growing region to another, reinforcing the need for location-specific approaches developed together with local partners.

Our goal is to ensure a continuous supply of coconut originating from responsible sources, where farmers, workers and communities are safe and resilient.

Collaborating with others to build sustainable practices

We partner throughout our supply chain and with industry-wide coalitions. We are part of the Sustainable Coconut and Coconut Oil Roundtable, which is dedicated to replanting trees, fighting deforestation, improving livelihoods and enhancing traceability. 

Together with Barry Callebaut, Proforest and Earthworm Foundation, we developed a framework for conducting and reporting on sustainable coconut assessments. This provides a common approach for undertaking and reporting on assessments that evaluate sustainability issues in coconut oil production.

We are also a signatory of the Sustainable Coconut Charter, which was established to set a global benchmark for sustainable coconut origins. The Charter is a voluntary framework for companies involved in the coconut supply chain and represents a collective commitment to making a difference for the planet, for people and for our business.

The Charter, shaped through wide consultation of companies, external experts, donors and relevant coconut stakeholders, defines the ambition and principles of coconut sustainability programs, aiming for the following impacts:

Person cutting a coconut open
  • Local livelihoods
    We promote values and initiatives that increase smallholder farmers' income and subsequently their livelihoods, for example, by improving access to market, finance, technology, increased capacity, productivity and replanting.
    Our goal is to ensure a continuous supply of coconut originating from responsible sources.
  • Traceability and transparency
    We engage our stakeholders to enhance supply chain transparency and traceability through sustainable and efficient sourcing, processing, production and other related value chain strategies.
    Our goal is to ensure a continuous supply of coconut originating from responsible sources.
  • Deforestation and climate change
    We strive to prevent deforestation and mitigate climate change.
    We engage our stakeholders to enhance supply chain transparency and traceability through sustainable and efficient sourcing, processing, production and other related value chain strategies.
Creating Shared Value and Sustainability Report