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Agenda
• Introduction to Responsible Sourcing
• Audit Programme
• Traceability Programme
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The Foundation of Nestlé Responsible Sourcing
“ 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 ”
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Nestlé … [acts] in a way that reflects the Company´s
commitment to conduct our business activities in full
compliance with applicable laws and to be guided by
integrity and honesty.
Our consumers expect similar behaviour from all
parties that we deal with, especially from our
suppliers.
Preamble “Nestlé Supplier Code” 2010
Nestlé Supplier Code
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It is not only about palm oil and child labour...
“How was it produced?”
Responsible Sourcing Audits
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The relevant questions
“Where does it come from?”
Responsible Sourcing Traceability
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Agenda
• Introduction
• Audit Programme
• Traceability Programme
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Responsible Sourcing – Audit Programme
"...Remove the Worst, Promote the Best, Improve the Rest..."
Human Rights
Safety & Health
Business Integrity
Environmental Sustainability
SUBTIER SUPPLIER
TIER 1 SUPPLIER
Responsible Sourcing Audit Programme vs. Nestlé Supplier Code
FARM OR FEEDSTOCK
Responsible Sourcing Audit aims to verify implementation of the Nestle Supplier Code
at Tier 1 level
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Laws, Business principles, codes of conduct
The Process
Inform
suppliers Engage
& Assess suppliers
monitor
suppliers
qualify
suppliers
Objectives
Tracking KPIs
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Nestlé Supplier Code
• Signed by all suppliers
Buyers request suppliers to:
• Register on SEDEX* platform
• Welcome a SMETA** 4 Pillars audit (done by 3rd party auditors)
Corrective Action Plan: • Tracking of implementation by
Nestle • Follow up audit by 3rd party auditors
** SMETA = Sedex Members Ethical Trade Audit
* Sedex: 27,000 members / 23 industry sectors/ 150 countries
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Locations where Supplier’s Responsible Sourcing Audit took place in 2010-2012
December 2014
8’500 Suppliers audits done in all markets (Raw, Pack, S&IM) 400 Co-manufacturers audits done across all markets
49 Supplier days covering 6’000 suppliers
Where are we today?
By 2015: Total of 10'000 audits (85% of our global, in use, supplier pool)
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Locations where Supplier’s Responsible Sourcing Audit took place in 2010-2013
December 2014
2’465 Suppliers audits done in all markets (Raw, Pack, S&IM) (30% of Global Number) 50 Co-manufacturers audits done across all markets
Where are we today in LATAM?
By 2015: Total of 3’000 audits (30% of our global target of 10’000 suppliers)
Market Suppliers
AR10 191
BR10 656
CL10 258
CO10 151
DO10 65
EC10 96
MX10 623
PA10 140
PE10 146
VE17 139
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Summary, what will you get
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“ Removing the worst, promoting the best ”
Value for Nestlé
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Responsible Sourcing Audit is a common standard for all
industries and not only relevant for Nestlé, but also
recognized among the world’s leading food and beverage
companies (McDonalds, PepsiCo, Unilever, P&G, Mars, Kraft
Foods, Coca Cola, …)
Therefore multiple assessments will be avoided
The assessment of ethical practices is required and to be
upgraded if necessary, helping our suppliers, to
improve operations and get transparency of their strengths
and potentials
Full compliance with Nestlé‘s Responsible Sourcing
Initiative is mandatory and a basic requirement for all
suppliers
What is in it for Suppliers?
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Traceability Programme
SUBTIER SUPPLIERS
TIER 1 SUPPLIER
Responsible Sourcing Traceability Programme vs. RSG
FARM OR FEEDSTOCK
Palm Oil SoyaSugarPulp and Paper
HazelnutsVanillaFish and Seafood
Meat, Poultry and Eggs
Coffee Cocoa
Dairy Shea
“ Responsible Sourcing Traceability aims to verify implementation of the Responsible Sourcing Guideline by subtier suppliers (back to farm level)“
Why do we need traceability?
Process
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RS Audit RSG Assessment
3rd party audit Sedex – Smeta 4 pillar audit
(ethical audit)
2nd party assessment Partner organisation; RSG
assessment protocol
Ethical requirements
CSV
Category specific
requirements
Manufacturing site
(vendor site)
Upstream supply chain
Responsible Sourcing Audit compared to RSG Assessment
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