Agenda. Introduction to Responsible Sourcing Audit Programme Traceability Programme
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- Grant Wiggins
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1 1
2 Agenda Introduction to Responsible Sourcing Audit Programme Traceability Programme 2
3 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 3
4 Nestlé Supplier Code 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
5 It is not only about palm oil and child labour... 5
6 The relevant questions How was it produced? Responsible Sourcing Audits Where does it come from? Responsible Sourcing Traceability 6
7 Agenda Introduction Audit Programme Traceability Programme 7
8 Responsible Sourcing Audit Programme 8
9 Business Integrity Human Rights Safety & Health Environmental Sustainability "...Remove the Worst, Promote the Best, Improve the Rest..."
10 FARM OR FEEDSTOCK SUBTIER SUPPLIER TIER 1 SUPPLIER Responsible Sourcing Audit Programme vs. Nestlé Supplier Code Responsible Sourcing Audit aims to verify implementation of the Nestle Supplier Code at Tier 1 level
11 Laws, Business principles, codes of conduct 11
12 The Process Nestlé Supplier Code Signed by all suppliers 1 Inform suppliers Objectives Tracking KPIs 2 Engage & Assess suppliers Buyers request suppliers to: Register on SEDEX* platform Welcome a SMETA** 4 Pillars audit (done by 3rd party auditors) qualify suppliers 4 monitor suppliers 3 Corrective Action Plan: Tracking of implementation by Nestle Follow up audit by 3rd party auditors * Sedex: 27,000 members / 23 industry sectors/ 150 countries ** SMETA = Sedex Members Ethical Trade Audit
13 Where are we today? Locations where Supplier s Responsible Sourcing Audit took place in December Suppliers audits done in all markets (Raw, Pack, S&IM) 400 Co-manufacturers audits done across all markets 49 Supplier days covering suppliers By 2015: Total of 10'000 audits (85% of our global, in use, supplier pool) 13
14 Where are we today in LATAM? Market Suppliers AR BR CL CO DO10 65 EC10 96 MX PA PE VE Locations where Supplier s Responsible Sourcing Audit took place in December Suppliers audits done in all markets (Raw, Pack, S&IM) (30% of Global Number) 50 Co-manufacturers audits done across all markets By 2015: Total of audits (30% of our global target of suppliers) 14
15 Summary, what will you get 15
16 Value for Nestlé Removing the worst, promoting the best 16
17 What is in it for Suppliers? 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 17
18 Traceability Programme 18
19 Why do we need traceability? FARM OR FEEDSTOCK Responsible Sourcing Traceability Programme vs. RSG SUBTIER SUPPLIERS Palm Oil Pulp and Paper Sugar Soya Coffee Cocoa Fish and Seafood Vanilla Hazelnuts Dairy Meat, Poultry and Eggs Shea TIER 1 SUPPLIER Responsible Sourcing Traceability aims to verify implementation of the Responsible Sourcing Guideline by subtier suppliers (back to farm level)
20 Process
21 Responsible Sourcing Audit compared to RSG Assessment RS Audit RSG Assessment 3 rd party audit Sedex Smeta 4 pillar audit (ethical audit) 2 nd party assessment Partner organisation; RSG assessment protocol Manufacturing site (vendor site) Upstream supply chain Ethical requirements Category specific requirements CSV 21
22 22
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