Creating Shared Value: Working through the value chain for Nutrition, Health & Wellness

Transcription

1 Creating Shared Value: Working through the value chain for Nutrition, Health & Wellness Hilary Parsons & Marie Chantal Messier Nestlé S.A. June 12 th, 2013 World Bank, Washington D.C.

2 Nestlé at a glance Founded in 1866 in Switzerland as an infant nutrition company to fight malnutrion CHF 92 billion in sales in ,397 employees 468 factories in 86 countries 32 R&D and technology centres 2,000+ brands more than 1 billion Nestlé products sold every day 2

3 United States Nestlé USA Nestlé Purina PetCare Americas Zone AMS at Nestlé North America (St. Louis) Latin America & Caribbean Mexico Brazil Canada Austral-America Region (Chile, Argentina, Peru, Paraguay, Bolivia & Uruguay) Bolivarian Region (Colombia, Venezuela & Ecuador) Caribbean Region (Dominican Republic, Puerto Rico, Jamaica, Trinidad & Tobago, Cuba & Caribbean Islands) Central American Region (Panama, Guatemala, El Salvador, Costa Rica, Nicaragua & Honduras) 3

4 Nestlé in society: Creating Shared Value and meeting our commitments 4

5 Our commitments Our commitments demonstrate our intent and allow stakeholders to hold us accountable for our achievements and shortcomings. This incentivises us to achieve continuous improvement in our CSV, environmental sustainability and compliance performance. NUTRITION Nutrition profile Information Services WATER Efficiency Stewardship RURAL DEVELOPMENT Framework Cocoa Plan Nescafé Plan Responsible sourcing ENVIRONMENTAL SUSTAINABILITY Resource efficiency Packaging Environmental impact Climate change Natural capital Deforestation HUMAN RIGHTS Impacts Child labour 5

6 Compliance and human rights: The foundation of CSV 2012 Highlights First and only infant formula manufacturer included in FTSE4Good Index Industry s strictest policy and procedures on Responsible commercialization of BMS Internal Ombudsman and External Reporting mechanisms 18,103 employees completed the online human rights training tool in 2012 Comprehensive human rights impact assessments of operations conducted in Kazakhstan, Russia and Uzbekistan in 2012 Completed 150 CARE audits this year, with no critical non-compliances identified 6

7 Sustainability: Nestlé rates highly for Nutrition and social responsibility 7

8 Global CSV Initiatives Fortified milks Fortified milks in 80 countries Iodine-fortified Maggi in 80 countries, iron in 16 Nescafé Plan in 9 markets Cocoa Plan in 4 markets Fortified Maggi Cocoa Plan Nescafé Plan 8

9 Social Need Priority Countries Guinea Senegal Cameroon Ethiopia Guatemala Honduras Kenya Morocco Nicaragua Nigeria Papua New Guinea Zimbabwe Cote d'ivoire Ghana India Indonesia Pakistan Vietnam Egypt Jamaica Jordan Lebanon Tunisia Turkey Costa Rica Dominican Republic Panama Peru Philippines Thailand Sri Lanka Brazil China Colombia Ecuador Mexico South Africa Business Importance 9

10 Rural development: 2012 highlights Working directly with more than 690,000 farmers Employing more than 1,180 agronomists and 12,000 support staff Providing financial assistance to 44,000 farmers worth USD 37.8 million Developed action plans with Fair Labor Association for responsible sourcing of cocoa in Côte d Ivoire and hazelnuts in Turkey Action Plan on Gender 89.5% of our suppliers complied with the Nestlé Supplier Code 10

11 Rural Development Framework Farmers Farm Workers Communities 0 Alignment, Collaboration & Advocacy 11

12 Global Rural Development Priorities Net Farmer Income Farmer Education Women Labour Standards Nutrition Water Deforestation Corporate Rational Corporate Commitment Corporate Commitments Corporate Focus CSV Priority Corporate Focus CSV Priority Corporate Commitment Business Rational What Examples Farming is attractive Capable Farmers Today & Tomorrow Guaranteed Supply Women are better farmers Farming is attractive Resilient farmers & farming systems Resilient communities Resilient Communities Ecosystem Services Yield, Quality, Costs, Prices, Premiums Farmer Field Schools (focus on women & youth) Elite Farmer Training Training, Associations Child labour Living wage Food crops & farming systems Water & Sanitation Water Stewardship No plantlets for crop expansion Nespresso AAA Nescafé & Cocoa Plans, AAA Mexico Escuela Nescafé Coffee in Kenya Dairy in Pakistan FLA in CdI & Turkey New projects in Africa IFRC in CdI Water in Vietnam Nescafé & Cocoa Plans 12

13 Rural Development Partners 13

14 Rural Development linked with Business and Societal Benefits Dairy Global Coffee - global Cocoa - gloabal Context Nestlé milk district model Help improve the quality and volume of fresh milk production. Regular Farm visits Provide TA Nestlé will double the amount of coffee we buy directly from farmers to 180,000 tonnes by 2015 Nestlé will distribute 220 million high-yielding, diseaseresistant coffee plantlets to farmers by 2020 Partnership with IFRC, World Cocoa Foundation (WCF), International Cocoa Initiative (ICI) CHF 110 million investment will be spent predominantly in plant science and sustainable production Business Improved quality of fresh milk Good relationships with the farmers Increased quality and yield Optimised supply chain Sustainable sourcing Increased quality and yield of cocoa harvest Reduced complexity of supply chain Society Greater competence improved knowledge agriculture system and nutrition. Farmers rejuvenate their plantations through training Increase in farmers income Improves and protects incomes Sustainable farming methods Better access to basic healthcare, education, water and sanitation 14

15 Rural Development Jamaica Assistance to dairy farmers Farmers attending Field Day Exercise Hosted By Nestlé Key Issues, Background and Context: Nestlé through its Agricultural Services department works closely with Jamaican dairy farmers providing information and assistance in order to help improve the quality and volume of fresh milk production. Farm visits are made every fortnight to a total of 29 farms island wide. We provide technical assistance to farmers in the following areas - pasture management, animal husbandry, productivity, feeding systems, animal health issues, hygiene and quality issues. Periodic farm audits are also conducted and documented. Coffee Farmers In addition to our work with dairy farmers the company also purchases 100 tons of locally produced coffee beans per year. Business Benefit: Improved quality of fresh milk Good relationships with the farmers Societal benefit: Greater competence of dairy farmers: improved knowledge of pasture management, animal husbandry, feeding systems, animal health issues and hygiene and quality. Increased knowledge of students and other persons from rural communities regarding nutrition. 15

16 Nutrition: our 5 key challenges Advance science to address global nutrition issues Contribute to mothers and children s optimal nutrition in the first 1,000 days of life Support families in meeting their nutritional needs Help meet nutritional needs of people in emerging markets Provide nutrition solutions for people with specific nutritional requirements Focus 1,000 days Healthy School Children Populations who are deficient in micronutrients People with special nutritional needs 16

17 Nutrition Global 60/40+ commitment Dual objective: Bring a nutritional Plus AND Win at least 60% of consumers preference against direct competitor products. CHF 36.4 billion worth of products were analysed/improved or confirmed as 60/40+ processed in 2010,. Making nutritious foods taste good! Business Benefit: helps establish Nestlé s as the leading Nutrition, Health and Wellness Company Societal benefit: Improved nutrition for consumers 17

18 Nestlé Global Healthy Kids Programmes in Zone AMS Argentina, Brazil, Canada, Chile, Colombia, Dominican Republic, Ecuador Guatemala, Mexico, Paraguay, Peru, Puerto Rico, Uruguay, USA, Venezuela For more information on the NHK Programmes in the markets visit: The Healthy Kids intranet page The Healthy Kids website 18

19 Nestlé Global Healthy Kids Programme Long-term corporate global programme to raise nutrition, health and wellness awareness of schoolage children around the world. Key areas of focus: Nutrition Education and Physical Activity Focus on Partnerships: In partnership with relevant experts in child nutrition education & physical activity, with the collaboration of national health and education authorities. Value to Business: Establishes a global competitive advantage and demonstrates Nestlé s commitment to address health issues globally. In the long term, better educated consumers will invest in and appreciate the value of buying better for you (Nestlé reformulated) quality products. Value to Society: improve nutritional knowledge and eating habits, as well as encourage greater physical activity among children which will result in a healthier future. 19

20 Nutrition Global Micronutrient fortification of PPPs Providing 150 billion servings of fortified products worldwide. : only bridges average 2-3% of micronutrient deficiency In some markets, Nestlé fortified products could potentially bridge more than 20% of micronutrient deficiency gap 1/3 of fortified products are PPP in countries with the highest prevalence of MND Some of our PPPs, fortified based on the nutritional needs specific to local consumers. Business Benefit: positive brand registration and reputation helps establish Nestlé s as the leading Nutrition, Health and Wellness Company Societal benefit: improved nutrition for consumers, particularly children 20

21 Vision Foster a healthier generation by helping prevent micronutrient deficiencies among children and women of child bearing age Ambition Deliver at least one serving daily of one or more of the Big 4 micronutrients to our target consumer in countries where Nestlé can make a difference Focus Countries with the greatest need and Nestlé ability to impact Partner necessary to meaningfully impact the deficiency gaps through concerted programs 21

22 Nutrition: 2012 Highlights 75.7% of Nestlé products meets Nutritional Foundation criteria 6,692 products renovated, reducing salt, fat and sugar levels 6,367 Popularly Positioned Products 100 billion servings of iodine-enriched Maggi products sold worldwide 5.4 million children reached by Nestlé Healthy Kids programme in 64 countries Nutrition Quotient (NQ) training provided to 226,000 employees since

23 The way forward How to bridge nutrition in rural development framework, which indicators to use? How to make nutritious products accessible to the bottom of the pyramid consumers / i.e those who are most vulnerable? How to measure impact? Partnerships in Creating Shared Value: how to capitalize on what both the public and the private sector do best? What type of partnership framework What should be the governance structure? 23

24 More available at: 24

25 Rural Development Guatemala Nespresso AAA Program Key Issues, Background and Context: Over the last six years, we have worked with the Rainforest Alliance to develop the Nespresso AAA Sustainable Quality Program of integrated coffee farm management practices. The farmers who join the programme are encouraged to adopt best practice in sustainability: to care about the environment, to protect water sources and to prevent soil erosion from their land. Business Benefit: Improved quality and volume of coffee Societal benefit: Better income for families involved, mainly small scale farmers Environmentally friendly practices 25

26 NCP in Ecuador 700 farmers in NCP 200k arriba cocoa plants distributed to farmers in 2012 UTZ certification of 7 coops, 42 midlarge farms and 2 middlemen Services provided to coops such as free transport insurance, and free life insurance for farmers Beans used in country for local chocolate and exported to Europe, N America and Australia Nestlé experimental farm doing research and plant propagation 26

27 Water: 2012 highlights 489 water-saving projects in our factories saving 6.5 million m3 Reduced water withdrawals by 53% per tonne of product since Recycled 6.9 million cubic metres of water this year 217 clean drinking water projects in the South Asia region, helping improve access and sanitation for more than 100,000 school children Partnering with the IFRC to provide access to water and sanitation to 100,000 people in Côte d Ivoire 27

28 Index Sustainability: reducing our environmental footprint Going for Zero Cost 0 Waste Total production volume Total on-site energy consumption Total water withdrawal Total water discharge Direct GHG emissions Waste for disposal 28