Nestlé to audit all 10,000 tier one suppliers by 2015

Will Green is news editor of Supply Management
16 April 2014

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16 April 2014 | Will Green

Nestlé has announced a target to audit the sustainability of all its 10,000 tier one suppliers by 2015.

The food manufacturer, in a report, said in January 2014 it had audited 6,500 tier one suppliers and 74 per cent were compliant with its sourcing policy.

Of those which were not compliant, just over half failed on health and safety grounds, 13 per cent on working hours and 2 per cent on rest and toilet facilities.

“In all cases, a corrective action plan has been approved with detailed measures and timelines in place to ensure that practices are continuously upgraded,” said the firm.

The report also said the company had cut its water use by a third and greenhouse gases by 7.4 per cent since 2005, reduced packaging material by 66,594 tonnes, and trained around 300,000 farmers in 2013.

“It is vital that we maintain a secure, long-term supply of ingredients for our food and beverage products, the majority of which are grown in rural areas,” said the report. “But more people than ever are moving away to urban areas and we are facing an ageing global farming population, so Nestlé must engage now to support farming as a business and livelihood of choice that offers an attractive income and opportunities for societal advancement.”

The firm also has a commitment to have 40 per cent of key commodities, including soya, sugar, paper, coffee and cocoa, fully traceable by 2015 with 30 per cent responsibly sourced.

The report said by end of 2013, 100 per cent of palm oil used by Nestlé was certified by the Roundtable on Sustainable Palm Oil, and 51 per cent of global volume (410,000 tonnes) was traceable back at least as far as the mill. A further 19 per cent was fully traceable to the plantation. The company has a target that 95 per cent will be traceable and 70 per cent responsibly sourced by 2015.

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