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Our approach to sustainably produced raw materials

Farmer and his cows

At the heart of good food is the quality of the ingredients, the people who produce them and the soils and ecosystems in which they are grown.

Building on years of work with suppliers and farmers to source key raw materials that are traceable and responsibly sourced, we are now raising the bar with a more comprehensive and systematic approach to assessing, addressing and reporting on social, environmental and animal welfare risks in our supply chain. We call this produced sustainably.

Our progress toward sustainably produced raw materials
16.3 %
97.2 %
76.3 %

Encouraging sustainable production

Our ‘Produced sustainably’ approach will help build the foundations to advance regenerative food systems at scale. We are focusing on the systematic deployment of our responsible sourcing requirements through our supply chain to help transform agricultural production practices in a way that has a positive impact on people, nature and climate.  

‘Produced sustainably’ means the origin of the key ingredient is known and the direct supplier is progressing to address social and environmental performance. The minimum criteria to define if a raw material is produced sustainably are:

  • Traceable back to the point of origin (farm or group of farms)
  • Human rights and environmental due diligence systems are in place to assess, address, and report on the potential or actual impacts in the supply chain as defined in the Nestlé Responsible Sourcing Standard
  • The tier-1 supplier is measurably progressing in addressing potential or actual human rights and environmental impacts identified in its supply chain, as well as animal welfare where applicable.

It applies to 14 key agricultural raw materials that cover 95% of our annual sourcing by volume.

For each key raw material in scope, specific criteria have been defined to take into account their specificities

Father farmer and daughter

Our Responsible Sourcing Standard

Produced sustainably builds on our Responsible Sourcing Standard, which sets out basic non-negotiable standards and important sustainability practices that we ask our suppliers and their employees, agents and subcontractors to respect and adhere to at all times when conducting business with us.

Our Sustainable Sourcing team ensures that the raw and packaging materials we source meet our Responsible Sourcing Standard. In coffee and cocoa, the Nespresso AAA Sustainable Quality™ Program, the Nescafé Plan and Nestlé Cocoa Plan, provide additional requirements specific to these raw materials. 

The four key pillars to our approach

  • Environment
    We have evolved our strategy from managing deforestation risks in our supply chain to target a positive impact on the critical landscapes we source from. Through our work we will contribute not only to conserving and restoring forests and other natural ecosystems, but we will also help improve farmers' livelihoods and protect human rights. Among other targets, we aim to achieve deforestation-free primary supply chains for our forest-risk commodities (meat, palm oil, pulp and paper, soya and sugar by 2022 and by 2025 for coffee and cocoa). We will also grow 200 million trees by 2030 and invest in 15 landscape initiatives by 2023.
    Forest
  • Human rights
    We are committed to raising awareness, promoting best practices and empowering people across our value chain, including our operations and supply chains. We want to help create a more resilient and fair future for everyone – from farmers and their families to employees and consumers. Our commitments, laid out in our Human Rights Framework and Roadmap, are key to enabling a just transition to a regenerative food system. We will use our scale and resources to identify and address risks across our business.
    Mother with little girl
  • Animal welfare
    We try to make sure animals in our supply chains for relevant commodities are being treated with dignity and kept healthy. We have rapidly expanded our procurement of cage-free eggs: 100% of our eggs are already certified cage-free in the United States and Europe and we are on track to achieve 100% cage-free eggs globally by 2025.

    In dairy, we use advanced sensors and monitoring techniques to check the well-being of the cattle providing our milk. Introducing more varied pastures allows cows to graze outdoors for longer periods of the year.
    Cows
  • Transparency
    We are committed to transparency. Improving the traceability of the origins of our raw materials and understanding of how they are produced is an important element of our sustainable sourcing practices. Gaining visibility into your supply chain enhances our ability to monitor and improve suppliers' environmental and social practices.
    Grain in hands
Creating Shared Value and Sustainability Report