Brian Jones - Fact, Fiction, the Future - Measuring Sustainability
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Fact, Fiction, the Future - Measuring Sustainability - Brian Jones, Responsible Sourcing Manager, Nestlé North America Procurement, from the 2015 Animal Agriculture Alliance Stakeholders Summit, The Journey to Extraordinary, May 6 - 7, 2015, Kansas City, MO, USA. More presentations at http://www.trufflemedia.com/agmedia/conference/2015-the-journey-to-extraordinary
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Brian Jones - Fact, Fiction, the Future - Measuring Sustainability
- 1. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Animal Ag Alliance Stakeholders Summit – The Journey to Extraordinary! “Fact, Fiction, the Future - Measuring Sustainability” Brian Jones Responsible Sourcing Manager Nestlé North America Procurement
- 2. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Fact… 2 1Animal Agriculture Alliance, http://www.animalagalliance.org/educate/#sustainability accessed 04/15/2015 “…puts animal agriculture under increased scrutiny…”…the increased interest in food production by consumers…“…producers have to put far more emphasis on the social side of sustainability…” Sustainability impacts us all!
- 3. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Fiction… 3 • Climate Change• Water• Consumer Engagement• Energy• Human Rights Sustainability, http://www.mylanderpages.com/sustainability/ten-trends-2015 , accessed Apr 20, 2015 The need to focus on Sustainability can wait
- 4. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Future… • How will we get there? 4 1Animal Agriculture Alliance, http://www.animalagalliance.org/educate/#sustainability accessed 04/15/2015 Managing and measuring Sustainability is the only way to drive the change necessary
- 5. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Nestlé Responsible Sourcing "Remove the worst, Promote the Best, Improve the Rest“ 5
- 6. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Nestlé’s Responsible Sourcing Program Is Founded On Three Key Documents 6 The Nestlé Supplier Code is derived from our Corporate Business Principles and specify the minimum requirements we ask our suppliers to respect when doing business with Nestlé The Nestlé Responsible Sourcing Guideline is derived from our Nestlé Supplier Code and defines additional category specific requirements that we ask our suppliers to implement when doing business with Nestlé
- 7. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 FARMER CONNECT NestléResponsibleSourcing Traceability Program vs. RSG By 2015 40% Traceable, 30% Responsibly Sourced FARM OR FEEDSTOCK TIER 1 SUPPLIER Audit Program vs. Nestlé Supplier Code SUBTIER SUPPLIER Palm Oil SoyaSugarPulp and Paper HazelnutsVanillaFish and Seafood Meat, Poultry and Eggs Coffee Cocoa Dairy Shea Execution of Nestlé’s Responsible Sourcing Program Involves EVERYONE in the Upstream Value Chain Audits verify compliance to the Nestlé Supplier Code at Tier 1 level Traceability verifies the implementation of the Responsible Sourcing Guideline by subtier suppliers (back to farm level)
- 8. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Measuring Level 1 Suppliers Responsible Sourcing Audits (RSAs) • Done at the Nestlé Tier 1 Supplier level • Independent, third party auditors • Standard audit protocol (SMETA 4-Pillar) – Labor – Health & Safety – Environment – Ethics SMETA – SEDEX Members Ethical Trade Audit SEDEX – Suppliers Ethical Data EXchange 8
- 9. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Measuring our Supplier’s Sources of Supply Responsible Sourcing Traceability (RSTs) • Supplier “source of supply” Assessments – All of the areas included in RSAs – Category specific concerns (RSGs) • Deforestation (Pulp & paper, Palm oil, Soya ) • Human Rights (Cocoa & Coffee, Sugar, Vanilla, Hazelnuts) • Animal Welfare (Meat, Poultry, & Eggs, Dairy) 9
- 10. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Nestlé Commitment on Farm Animal Welfare • Announced to the public August 21, 2014 10
- 11. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Measuring Animal Welfare We will support and implement actions to promote animal health and welfare, and eliminate practices which contravene the “Five Freedoms,” and tackle the root causes of those practices. In particular, we will initially focus upon: • For cattle: dehorning; tail docking; disbudding and castration without anesthetic and analgesia; veal crates; permanent tethering • For pigs: gestation crates; tail docking; surgical castration • For poultry and eggs: cage systems, particularly barren battery cages; fast- growing practices • For animal production systems in general: our first focus is the responsible use of antibiotics, in line with OIE’s guidance, and the phasing out of the use of growth promoters 11
- 12. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Global Animal Welfare Approach 2015 • Conduct Farm assessments to determine the prevalence of undesired animal welfare practices in the Nestlé supply chain – 400 Dairy farm assessments global target – 600 M/P/E farm assessment global target 2016 • Begin remediation to close the gaps between any undesirable farm practices found in the 2015 assessments vs. the desired animal welfare practices Nestlé has committed to 12
- 13. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 Animal Welfare Farm Assessments • The assessments in the meat-poultry-egg and dairy categories are done by the SGS audit company with support from the Nestlé NGO partner World Animal Protection. 13
- 14. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739 In Summary… • Nestlé has recognized the need to sharpen it’s focus on sustainability • Nestlé has communicated their sustainability position and principals • Nestlé is committed to measuring and reporting our progress • Nestlé is committed to Sustainability!! 14
- 15. All trademarks are owned by Société des Produits Nestlé S.A., Vevey, Switzerland. 34739
Editor's Notes
- While the concept of responsible and sustainable animal agriculture may not be new to the American farmer, the impact of sustainability on others has changed significantly! Dissecting this definition, we can see some of the impacted stakeholders: “…the increased interest in food production by consumers…” “…puts animal agriculture under increased scrutiny…” “…producers have to put far more emphasis on the social side of sustainability…” As a result of the growth in the attention to sustainability by consumers, Nestlé has an increased focused not only on animal welfare, but other areas including deforestation and human rights. This increased focus by Nestlé means that it expects its entire supply chain to have the same increased focus
- I am not sure that anyone believes that sustainability can wait, but how serious are people getting today? Here are 5 of the “Sustainability 10 Trends for 2015” from Sustainability.com, a company that since 1987 has focused on making other companies sustainable Climate Change – note the years of the commitments, 10 and 15 years out Energy – they are talking about energy source in 2050; how much change will occur between now and then? Human Rights – Despite the commitment to human rights that companies are making, this trend is disturbing because things have gotten worse, not better, over the past 7 years Water – The number of companies recognizing water scarcity as an issue needs to grow rapidly if we are going to be able to address issues such as the drought in California Consumer involvement – all of these previous issues are essentially about survival, but if that is not enough motivation, consumers are more equipped than ever to “make ethical buying decisions” based on product credentials. If that doesn’t scream “sustainability” I don’t know what does
- As pointed out on the Animal Ag Alliance website, the approach that Nestlé and most companies are using is that sustainability cannot be accomplished overnight It will take time and effort, and at times the progress may be slower than people want However, the key is that there is progress, and if done right, this progress will build on itself! Now, let’s talk about the Nestlé approach…
- This is Nestlé’s “Guiding principal” to Responsible Sourcing “Remove the worst” - Obviously those practices that are the worst, child labor for example, need to be removed as quickly as possible “Promote the best” – Nestlé understands than many members of its supply chain have best practices, and we not only recognize those, but look to share those with others members of the supply chain when and where appropriate “Improve the rest” - is key as it demonstrates that Nestlé recognizes all our supplier and their sources of supply are at different levels when it comes to compliance to Nestlé standards. While Nestlé certainly has minimum acceptable standards, our objective is not to set a single bar that every supplier or every supplier source of supply must achieve at a given point of time, but rather to drive continuous improvement with the understanding that everyone is a different level.
- The UN Global Compact is essentially the worlds largest “corporate citizenship” initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies, specifically in the areas of human rights, labor, environment and anti-corruption. Nestle Corporate Business Principles were first published as an integrated document in 1998, but many of the 10 fundamental areas had already been established in individual forms many years before Nestlé Supplier Code was developed in 2008 and defines the minimum standards for Nestlé suppliers and their supply chain Lastly, the Nestlé Responsible Sourcing Guideline was established in 2010 for 12 specific categories that could have human rights, labor and/or environmental issues
- Nestlé’s Responsible sourcing objective is to ensure compliance in the entire supply chain, not just our level one suppliers Nestlé Tier 1 suppliers are assessed against the Nestlé Supplier Code in the areas of ethics, labor, health & safety and environment Independent, third party audits Subtier suppliers at the farm level are assessed against the Responsible Sourcing Guideline for their specific category Independent, third party assessments
- Suppliers own their audits once they are complete and are free to share with other customers and stakeholders Nestlé does not externally share supplier audit results Nestlé does accept existing supplier audits that cover the 4 pillars at the required level
- For RSTs the emphasis is on “assessment”, not “audit” Audits are typically “pass/fail” whereas “assessments” determine the current state and areas where practices can improve…once again continuous improvement customized to the site, not a single bar for everyone to achieve at the same time For each area of concern, Nestlé has a specific NGO partner to provide subject matter expertise and objectivity to ensure Nestlé is indeed looking at the right areas of concern, and in the correct manner. Deforestation – TFT Human Rights – Fair Labor Association Animal Welfare – World Animal Protection
- Commitment made public in August 2014 Principal based document based on the OIE Five Freedoms Looking to “eliminate practices” that contradict the Five Freedoms, and we detail those areas that we will initially focus on Important to note is the approach to “focus” on undesirable behaviors, meaning we first need to assess supplying farms to determine the prevalence, then collectively determine how to improve those areas needing attention
- Remember, with all these issues, it is about “improving the rest” It is a journey, as we all understand. Different supplying farms will be at different levels, so “continuous improvement” is the key One size does not fit all
- Nestlé has recognized the need to change Listening to the voices of our stakeholders – consumers, customers, communities Nestlé has communicated their sustainability position and principals Position on Deforestation, Nestlé Commitment on Farm Animal Welfare, nestle.com 38 Commitments Nestlé is committed to measuring and reporting our progress Annual Global and US Creating Shared Value reports