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RESPONSIBLE SOURCING

“MAKING IT HAPPEN!”

Marco Gonçalves

Chief Procurement Officer

April 2017 CIPS Switzerland

Nestlé at a glance 2016

CHF 89.5 billion in sales

328,000 employees in over 150 countries

418 factories in over 80 countries

30 MMT of raw and packaging materials

Over 2,000 brands

1 billion Nestlé products sold every day

2 April 2017 CIPS Switzerland

Wide and varied product portfolio

3 April 2017 CIPS Switzerland

44% 52%

62% 54%

63%

74%

“I am willing to pay more for products and services from

companies committed to positive social and environmental impact

(% Strongly/Somewhat Agree)"

2014 2015 2014 2015 2014 2015

Baby Boomers Generation X Millennials

Source: Nielsen Global Surveys

4

Consumers are evolving


5

Strengthening Consumers’ Trust

The fundamental questions to be addressed:

Where my food comes from? How is it made?


6

Our Approach: Creating Share Value


42 commitments supported by objectives toward 2020

7

Palm Oil Pulp/Paper Sugar Soy Hazelnut Vanilla

Meat/, Poultry

& Eggs

Fish &

seafood Dairy Cereals Cocoa Green

Coffee

Responsible Sourcing: from Compliance to CSV

Group Commitments on: • Farm Animal Welfare

• Removal of cage systems in egg production

• Deforestation & Forest Stewardship

• Child Labor Rural development

• Responsible use of Agricultural Materials

• Forced & Slave labor conditions in Agricultural Supply Chains

Supplier Code RS Guidelines

51% Volume Traceable to Origin

44% Responsibly Sourced


Sustainability as “the way we do business”

• 44 600 farmers

• 1.6 million plants distributed

• 40 schools built over four years

8

• 99% of traceability (+300 boats)

• School / demonstration Boat

• Partnerships with government and NGOs


9

Making it Happen – Nestlé Procurement Model


To conclude (critical success factors)

10

Making it

Happen!

Clear Purpose (why we do it)

The way we do business (owned by brands)

Prioritization

(engage, listen, act, measure)

“Operationalize” (walk the talk, hands on)

Transparency (traceability, reporting)

Cooperation (scale up through

complementary

capabilities)


responsible sourcing - cips speaker...“i am willing to pay more for products and services from ......

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