Implement responsible sourcing

Consumers have a right to know where their food comes from, and how it was sourced.

Our commitment

Implement responsible sourcing in our supply chain and promote animal welfare

 

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.

Our approach

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.

What we are doing

We are continuously improving the way we source our supplies. Nestlé India not only empowers its direct vendors but also facilitates them to further propagate the benefits to small-hold farmers and suppliers through training and support.

Cocoa: In 2018, 45% of the total cocoa procured was UTZ certified — an international label and programme developed for sustainable farming practices from farm to shop shelves. We aim to continue sourcing sustainably farmed cocoa to promote better farming practices. In 2018, our product Kit Kat was manufactured with 100% UTZ-certified cocoa.

Paper and Board: Since 2010, we have been working with Earthworm Foundation (formerly The Forest Trust (TFT)) engaging suppliers on our Responsible Sourcing journey.  To date we have engaged the majority of our direct suppliers (approximately 94% of our corrugated cartons and 95% of duplex and micro fluted cartons) against our RS requirements.  97% of our paper and board used for our packaging is produced from recovered fibre both domestically collected and imported, which meets our No Deforestation commitments.  We have also followed up on the known Indian virgin fibre element that also meets our No Deforestation expectations.  Given the high percentage of recovered fibre within our supply, and the informality within the sector, we have started on a journey to better understand the context in these supply chains and where we can have a positive impact.

Coffee: The NESCAFÉ Plan, focused on supporting responsible farming, production and consumption of coffee, is currently being implemented in Coorg, Karnataka and in Waynad, Kerala. 4C certified coffee comprises nearly 17% of our Indian net coffee procurement and implementation of 4C code of conduct has helped farmers improve their agricultural practices and provided them greater access to technical knowledge.

Dairy: Among its many dairy-based initiatives, the Nestlé's Dairy Development Model aims to provide sustainable livelihoods to dairy farmers, benefitting over 100,000 dairy farmers and over 70,400 women dairy farmers. The model consists of a three-pronged approach:

• Developing milk collection districts spread across 3 states with over 1408 milk collection centres.
• Securing incomes for farmers, a model through which farmers are assured of fair prices, which include regular monthly income and easier access to the market.
• Providing technical know-how to farmers through training on good cattle feeding practices, breeding practices and mechanisation of farms.

Palm Oil: Nestlé Global has been a member of the Round table of Sustainable Palm Oil (RSPO) since 2009, and has worked in collaboration with TFT to trace our Palm Oil supply chain through transparency and supplier behaviour. Till 2017, nearly 90% of the palm oil we source is traceable back to the mills that process palm and 48% is traceable back to the plantation.

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