Nestlé Brings

Shared Value for

Shareholders
& Stakeholders:
A Case Study

Nestlé is a multinational food and drink

processing conglomerate, best known 308,000 $91.4 Billion
by its various global consumer brands, Employees (2018) Revenue
including: Purina, Gerber, Häagen–Daz*,
Vittel, Perrier, Nestea, Rolo, Nespresso,
Aero and more.
413 165,000
Factories in 85 Direct Suppliers
Countries

* No Rolo license in the US.

OBJECTIVES, DRIVERS AND CHALLENGES

Going Beyond Compliance to Create Shared Value

Nestlé’s commitment to sustainability Sustainable procurement, In addition, Nestlé has committed to
is far-reaching and well-established. responsible sourcing and supply engage its vast network of suppliers
The company’s robust CSR platform chain sustainability are therefore to go beyond compliance and make
follows the Creating Shared Value hugely important. As of 2020, all a real difference for stakeholders
(CSV) program and covers health, suppliers in scope for responsible through collaboration, transparency
wellness, communities and climate sourcing audit or assessment must be and performance improvement in
change. One of Nestlé’s ambitions is compliant. line with Sustainable Development
to lead the way in shaping a waste- Goals.
free future through through various
initiatives, such as moving to 100%
recyclable or reusable packaging by
2025. The company is also a founding
member of UN Global Compact
LEAD.

For a company like ours to prosper, we must take a long-term view... The overall well-
being of farmers, rural communities, small entrepreneurs and suppliers is intrinsic to the
long-term success of our business.
APPROACH

Clear Goals and Personal Buy-In

Nestlé started off The company Buyers, who drive

with a comprehensive nominated one global the process of
program outlining the point of contact and onboarding suppliers,
details of sustainability a champion for each are responsible for
monitoring and market to foster close ensuring they undergo
improvement engagement with the EcoVadis assessments
programs for suppliers. procurement buyers or audits. To this end,
and, as a result, to buyers run direct
reach the company’s outreach campaigns,
sustainability for instance, via
requirements in these email, and mention
areas. these issues in ad hoc
discussions.

Nestlé set a clear score threshold to encourage supplier For Specific Services
improvements: and Indirect Materials
categories, an
• Suppliers must receive a score of 40 or greater. If not, they EcoVadis assessment
need to work on an action plan and reassessment. is mandatory and
• ○Direct suppliers are also required to have a score of 30 or replaces SMETA4 on-
greater on all themes. site audits.

... beyond sustainability, to

Creating
create value for shareholders
Shared Value
and society - integrally linked to
Nutrition, Water, Rural Development
our core business...”

... meet the needs of the present

Sustainability
without compromising future
Protect the future generations
generations...”

Compliance
comply with the highest
Laws, business principles,
standards...” codes of conduct
RESULTS

From Sustainable Procurement to a Lighter 3,000+ 66%

Global Impact Suppliers Assessed of Spend Sourced
In 2019, for tier-1 suppliers, 66% of Nestlé’s total spend and from Compliant
volume were sourced from audited and compliant suppliers. Suppliers
In 2019, for upstream, 76% of Nestlé’s 15 priority categories
of raw materials were traceable and 70% were responsibly
sourced. 76% 70%
of Raw Material of Raw Material
Nestle has seen high on-boarding and response rates with more
than 3,000 suppliers assessed. Priority Categories Priority Categories
Are Traceable Are Responsibly
●As outlined in Nestlé’s 2019 Creating Shared Value Report, Sourced
the company noted a 31% reduction in direct water withdrawal
per tonne of product across every category since 2010 and
now has 189 (about one third) of its factories purchasing 100%
renewable electricity. In addition, 87% of Nestlé’s packaging
was recyclable or reusable by the end of 2019, with the ambition
of making 100% of packaging recyclable or reusable by 2025.
Finally, in September 2019, Nestlé committed to achieving net
zero GHG emissions by 2050. To learn more, please review
Nestlé’s Creating Shared Value Report.

Why EcoVadis?

Proven methodology aligned Global network encompasses more Collaborative platform and score
with UN Global Compact and suppliers to increase visibility and cards to focus on performance and
Sustainable Development Goals. traceability throughout the supply provide clear direction.
chain.

Aligned with Nestlé Responsible Sourcing, EcoVadis gives suppliers a unique way to
demonstrate their sustainability performance by building on what they already have.
For buying organizations such as Nestlé, the EcoVadis platform is one of the tools
we use to avoid duplication and to ensure effective collaboration on responsible
sourcing with our strategic suppliers.
About EcoVadis
EcoVadis is the world’s most trusted provider of business sustainability ratings,
intelligence and collaborative performance improvement tools for global supply
chains. Backed by a powerful technology platform and a global team of domain
experts, EcoVadis’ easy-to-use and actionable sustainability scorecards provide
detailed insight into environmental, social and ethical risks across 198 purchasing
categories and 155 countries. Industry leaders such as Johnson & Johnson,
Verizon, L’Oréal, Subway, Nestlé, Salesforce, Michelin and BASF are among the
more than 55,000 businesses on the EcoVadis network, all working with a single
methodology to assess, collaborate and improve sustainability performance in
order to protect their brands, foster transparency and innovation, and accelerate
growth. Learn more on ecovadis.com, Twitter or LinkedIn.

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