Modern Slavery and Human Trafficking Report 2018: Advancing human rights at Nestlé - Good Food, Good Life - Nestle (UK)
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Good Food, Good Life Modern Slavery and Human Trafficking Report 2018: Advancing human rights at Nestlé
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 2 | 15 Contents 3 Introduction 4 Our Approach 5 Human Rights Context at Nestlé 6 Our Programme & Policy Framework 7 Progress & Performance: Key Commodities 8 2018 Updates 9 Progress & Performance: Programme & Targets 14 Our Challenges and Looking Forward
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 3 | 15
Introduction
Modern slavery is a growing, complex issue presenting a real
and pressing challenge for today’s society, and sees people
worldwide dehumanised, treated as a commodity or controlled
by an exploiter against their will.
It is most prevalent in Africa, Our efforts support the global “Consumers, investors and
Asia and the Pacific respectively, movement to address the threat policymakers are increasingly
according to the Global Slavery of modern slavery. World leaders interested in the human rights
Index. Within global supply chains, have agreed to eliminate slavery of the people who help make our
modern slavery could extend as part of the UN’s Sustainable products. We believe upholding
to forced labour, child labour, Development Goal 8 to promote the human rights of the people in
withholding workers’ passports decent work and sustainable our business and supply chain is
or even human trafficking. The economic growth. As slavery essential to making our business
International Labour Organization rises up the global agenda, activities and supply chains more
(ILO) estimates that approximately policymakers are increasingly resilient, stable and sustainable,”
24.9 million people worldwide requiring companies to report says Stefano Agostini, CEO.
are victims of forced labour, the their modern slavery risks more
majority of them women and girls. transparently, including through
The sectors most at risk include the UK’s 2015 Modern Slavery Act.
construction, manufacturing,
domestic work, entertainment We recognise that modern slavery
and agriculture. poses a risk to our business and Stefano Agostini
stakeholders, and continue to Chief Executive Officer
As the world’s largest food and strengthen our efforts to prevent, Nestlé UK and Ireland
beverage manufacturer, we have identify and address potential risks
a deeply held respect for everyone or instances of modern slavery
who works for or with us, and within our operations and supply
maintain a strong commitment to chain, in line with our values,
respecting human rights. At Nestlé policies and regulation. We remain
UK Ltd (‘Nestlé UK’), this includes committed to disclosing our
our more than 6,100 direct and
indirect suppliers, and our 8,000
employees in the UK and Ireland.
progress transparently and,
through this report, we share
our progress during the period
13M
Nestlé has 13 million
October 2017 to October 2018.
farmers in 86 countries
to make its products.
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 XX4| |XX
15
Our Approach
We operate using the Nestlé Corporate Business
Principles, which inform the way we work.
Creating Shared Value (CSV)
is fundamental to how we do
business at Nestlé. We believe that
We respect international guidelines
and standards on human rights,
including the UN’s Guiding
Importantly, to understand our
potential impacts across our value
chain, it’s vital to know where our
30M
our company will be successful Principles for Business and ingredients and materials come
Nestlé aims to
For our communities
in the long term by creating value Human Rights (UNGPs) and from. To achieve this, we work Helping develop thriving,
improve 30 million
for both our shareholders and for Sustainable Development Goals, with our direct suppliers to trace resilient communities livelihoods by 2030.
society. Our activities and products the OECD Due Diligence for ingredients we buy back to their
should make a positive difference Responsible Business Conduct places of origin, such as the Our priorities:
to society while contributing and the ILO’s Fundamental individual mill, plantation or farm. • Assess and address human
to Nestlé’s ongoing success. Conventions. When we have built a clear rights impacts in our operations
Our global organisation’s 2020 understanding of our supply chain, and supply chain
CSV commitments reflect the As an early adopter of the UNGPs, we use different tools to assess • Eliminate child labour
priorities that we and our we take a structured approach supply chain actors (plantation, in key commodities
stakeholders believe will help us to assessing and improving mill, farm, factories) against our • Embedding responsible
achieve the greatest impact in our human rights performance. Responsible Sourcing Standard, sourcing in our supply chain
achieving our 39 goals and fulfilling We collaborate with expert addressing any issues where • Ensure that all employees and
stakeholders can easily report
our mission. And with the growing organisations in order to necessary. These assessments are
possible compliance violations
demand for food and challenges continuously improve our conducted by partner organisations
to sustainable farming, we see knowledge and understanding such as The Earthworm Foundation
supporting rural development, of evolving human rights and Proforest. All of Nestlé’s
creating decent employment and challenges, including modern suppliers must comply with our
respecting and promoting human slavery, so that we can address Responsible Sourcing Standard.
rights as central to these efforts. them more effectively and To ensure compliance, we
Our focus on human rights will also increase our impact. commission independent audits
play an important role in achieving delivered by Bureau Veritas, Intertek
Nestlé’s ambition to improve 30 and SGS (for Tier 1, direct suppliers).
million livelihoods in communities
that contribute directly to our Read more about our
business by 2030. human rights journey
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 5 | 15
Human Rights Context at Nestlé
Working with key external stakeholders, we identified 11 human rights
issues in 2016 that could generate the most serious negative impacts
for the people within our operations and supply chain, and where Freedom of association
we have the greatest opportunity to act.
and collective bargaining
Data protection
These 11 salient, often interrelated Our 11 salient issues stand to affect and privacy Working time
issues inform the way we approach people throughout our activities
and prioritise improving our human and business relationships.
rights performance. Of the 11 In particular, we have identified six
issues, at least two of them – groups of people as particularly
Workers’
accommodation
Access to grievance
forced labour and child labour – vulnerable: our employees, on-site mechanisms
and access to
basic services
are defined as modern slavery contractors, suppliers and workers,
risks. However, people working farmers and farm workers, local
in situations of modern slavery communities and consumers.
may be at risk across many of
these areas. For example, they The work we have conducted on
may face excessive working hours,
wages that fall below living wage
defining these issues forms part
of our broader efforts to define
Access to water
and sanitation
11 Safety and health
thresholds, unsafe working and address the social, economic salient
environments, poor accommodation, and environmental issues that
or a lack of access to clean water are most relevant to our business human rights
and sanitation. Similarly, they may and stakeholders through our
be forbidden to associate freely biennial materiality assessments.
with trade unions or bargain
collectively with their employer Read more about our
for improved pay and working 11 salient issues
conditions, or lack access to raise
their concerns through official
channels, without fear of retaliation. Land acquisition Living wage
Forced labour Child labour
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 6 | 15
Our Programme & Policy Framework
The Nestlé Corporate Business Principles shape the way we do business
and form the basis of our culture, our values and our Creating Shared
Value strategy. Principle 4, entitled ‘Human rights in our business
activities’, guides our approach to human rights, including modern
slavery, and is enshrined in 17 corporate policies and commitments.
In this way, we seek to make We have developed a comprehensive Importantly, we look beyond high
consideration for human rights set of 17 policies to give the basis risk areas to integrate human
part of our employees’ daily work for action. Please visit our website rights criteria within our standard
and responsibilities, and central for the full list and details. supplier performance monitoring
to our business relationships with efforts, helping to ensure a globally
suppliers. In particular, to help Human Due Diligence consistent approach to respecting
prevent instances of modern Programme and promoting human rights.
slavery in our supply chains, we We operate a global Human Rights
require all Nestlé suppliers and Due Diligence (HRDD) programme Read about our set of policies
contractors to comply with our to monitor and improve our human
Corporate Business Principles, rights performance. Comprising
and Nestlé Responsible Sourcing eight operational pillars, it is
Standard. We also have specific designed to encompass all our
commitments on preventing child efforts to assess, prevent and
labour, promoting labour rights address potential human rights
in agricultural supply chains and impacts of our 11 salient issues and
helping to ensure good conditions 14 priority commodities. With the
of work and employment. We majority of our human rights risks
monitor their compliance with our likely to occur in our agricultural
requirements through initiatives supply chains, we published
including third-party audits, our Labour Rights in Agricultural
independent assessments, and Supply Chains roadmap in
contractual and relationship reviews. 2017 to identify where and how
best to address identified labour
17
rights issues.
Corporate policies
and commitments
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 7 | 15
Progress & Performance:
Key Commodities
Sourcing raw materials responsibly, prioritising suppliers that respect
or exceed our human rights and environmental requirements, is an
important way for us to prevent the risk of modern slavery occurring
in our supply chains.
Through our responsible sourcing Working closely with external
initiatives, we assess human rights partners including The Forest Trust
and modern slavery risks among (TFT), Verité, Proforest and World
raw materials suppliers, and trace Animal Protection, we develop
ingredients we buy back to their targeted action plans to address
places of origin, such as the the 11 most salient human rights
individual mill, plantation or farm. issues across our agricultural
supply chains, including those
We focus on 14 priority categories related to modern slavery.
within our responsible sourcing
programme. These are: palm oil, Our six most important raw
soya, sugar, pulp and paper, materials (by volume) are palm oil,
coffee, cocoa, dairy, fish and coffee, sugar, hazelnuts, cocoa and
seafood, cereals, vanilla, hazelnuts, fish and seafood. We strengthened
meat, poultry and eggs. In 2018, our efforts to source these
we expanded our responsible materials responsibly in 2018
sourcing scope to include – including by improving our Palm Oil
processed vegetables (tomatoes, human rights performance – and Hazelnuts
Sugar
carrots, spinach, onions and bell continued to lead targeted efforts
Coffee
peppers) and spices. to identify, prevent and mitigate Cocoa
instances of modern slavery. Fish and seafood
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 8 | 15
2018 Updates
Palm oil Hazelnuts Cocoa Fish and seafood
64% of our palm oil was In Turkey, where we source the recognised that we were one of We sourced 198,155 tonnes of Workers in the Thai seafood
responsibly sourced in 2018, in line majority of our hazelnuts, human the few companies to disclose the cocoa sourced through Nestlé industry face serious human
with Roundtable for Sustainable rights challenges centre around steps that we and our suppliers Cocoa Plan, which seeks to rights risks. Working with multiple
Palm Oil (RSPO) criteria, and 54% helping to ensure safe, healthy had taken to addressed alleged improve the lives of farmers stakeholders, we seek to address
of our palm oil could be traced living and working conditions for forced labour in our supply chain. in our cocoa supply chain by these challenges and improve
back to the plantation where it was workers, particularly the seasonal helping them to adopt sustainable workers’ lives. Our action plan
grown. Based on the findings of workers employed during the Coffee practices, rejuvenate plantations includes a training programme
a comprehensive human rights harvest period. Children also Some 55% of Nescafé Plan coffee and tackle deforestation. We also – on board a dedicated
impact assessment we undertook often work alongside their is now responsibly sourced, continued to focus on empowering demonstration boat – to raise
in 2017, we developed a dedicated parents in the hazelnut gardens. and 93.9% of Nespresso coffee women and eliminating child awareness of workers’ rights
action plan to address labour is sourced through the AAA labour, raising standards through and ethical living and working
rights issues in our supply chain, Sugar Sustainable Quality™ Program. certification and strengthening our conditions on boats among vessel
focusing on issues including We continued our efforts to ensure Both of these programmes include supply chain. In 2018, we raised owners, captains and crew.
working conditions, health and that sugar is sourced from mills a core focus on protecting farmers’ awareness of the importance of In 2018, 116 people attended our
safety and preventing child labour. that respect our Responsible and farm workers’ human rights. preventing child labour among training. We also audited more
We also encouraged suppliers Sourcing Standard and comply In 2018, we enhanced our 535,435 farmers and community than 10% of the vessels in the
to share knowledge on raising with local laws, and that require monitoring and remediation members, and increased our Thai seafood industry against an
standards, hosted workshops their suppliers (farms and capabilities on labour rights in support for former child labourers internationally recognised standard
to promote workers’ rights, and plantations) to do the same. Mexico by partnering with Verité in Côte d’Ivoire and Ghana. and partnered with Issara, an
worked with other businesses This includes, for example, no and PPS to deliver tailored training We helped 11,130 children in 2018, organisation seeking to empower
and not-for-profit organisations, use of forced or child labour, to coffee farmers and our field with donations of school materials, workers to raise their concerns
including the ILO and UNICEF, ensuring at least legally acceptable teams. PPS also visited 176 birth certificates and bridge through social media, messaging
to explore best practice in pay and conditions, respecting medium or large farms to help schools, co-funded by the apps and helplines. More than
improving the wellbeing of former freedom of association and us implement specific activities Jacobs Foundation. 19,000 workers in Thai seafood
child labourers. Finally, we took collective bargaining (where this is designed to improve human processing facilities in Nestlé’s
steps to help protect indigenous legally permissible) and providing rights performance, including by supply chain now have access to
people’s land rights in Indonesia safe, healthy work and living addressing any existing issues. Issara’s independent helpline and
and promote the responsible places. 61% of our sugar was Additionally, we launched a can seek assistance and support.
recruitment of palm oil workers. responsible sourced in 2018. consumer communications
Additionally, Nestlé was named campaign, ‘Grown Respectfully’,
among the top five companies to highlight the work of our
for addressing forced labour Nescafé Plan by conveying
in their sugar cane supply real, inspiring experiences
chains in a report published by from coffee growers.
KnowtheChain. The report also
Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 9 | 15
Progress & Performance:
Programme & Targets
Within our work to respect and promote human rights,
combat modern slavery and stop human trafficking,
we report progress on our four key priorities:
1. Assess and address human As we continue to mainstream
rights impacts in our operations human rights in our daily work,
and our supply chain we have now conducted four of the
We made further progress in six planned human rights impacts
integrating human rights in our assessments (HRIAs) in key
procedures in 2018 by establishing production countries by 2018.
a Global Ethics Committee,
stepping up our focus on What’s next?
monitoring compliance, and
training our compliance teams.
We have extended our
In particular, we trained 5,014 HRIA target to 2020
employees on human rights to help ensure that
through our new online training we complete these
programme, and launched our
new CARE Audit Protocol, which assessments effectively,
has an expanded focus on human given the complexity
rights and leverages independent of our extensive supply
assessments to measure
compliance with our business
chains and the challenges
principles. This will allow us to involved in understanding
dedicate more time and resources them in their entirety.
to addressing our 11 salient human
rights issues. We have also
deployed a toolkit for Market
Compliance Officers to help
establish a governance structure
to manage our human rights
efforts at market level.Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 10 | 15
Progress & Performance:
Programme & Targets (Continued)
2. Eliminate child labour What’s next?
in key commodities
We made progress in addressing
We will continue to
child labour within our key raw strengthen our efforts
materials, including in cocoa, in these key areas while
coffee, hazelnuts and seafood.
For example, we sourced 198,155
expanding our efforts
to reach more children
Case study
tonnes of cocoa through our Nestlé
Cocoa Plan in 2018, exceeding our in other countries who Empowering hazelnut suppliers in Turkey
175,000-tonne target for the year.
We continued to expand the use
may be contributing to improve labour rights performance
to our diverse raw
of our Child Labour Monitoring
and Remediation System (CLMRS), materials supply chains.
established with the International Nestlé sources some 3,895 tonnes us to improve our approach to workers have benefited from
Cocoa Initiative, in our key cocoa of hazelnuts annually for use in improving the lives and livelihoods improved water and sanitation,
supply countries of Côte d’Ivoire a wide range of food and drink, of seasonal workers, including and we also distributed more
and Ghana. The scheme reached including confectionery, pastries our training activities, efforts to than 27,500 pieces of personal
11,130 children in 2018, refurbished and ice-cream. However, we know improve shelters and access to protective equipment to over 4,500
45 bridge schools and helped that serious challenges exist in the water and sanitation facilities, and farmers and workers. Building
some 3,149 children who had hazelnut supply chain. In Turkey, hold summer schools for children, on these efforts, we are working
dropped out of school to return where we source the largest as well as how we measure with the FLA to move beyond
to their lessons. In Côte d’Ivoire, volumes of hazelnuts, seasonal positive impact. Overall, we have compliance and strengthen our
this included helping 5,632 workers are vulnerable to poor trained 6,044 farmers, workers, efforts to create more job security
children to obtain birth certificates, working conditions and children traders and recruitment agents and improved working conditions
without which they cannot attend often work alongside their parents on issues including health and for informal hazelnut workers.
secondary school. We have also in the hazelnut gardens. In 2018, safety, labour rights, responsible
completed a four-year project with we completed a four-year project recruitment and preventing child Read more about Human
rights in our supply chains
the Fair Labor Association (FLA) with the Fair Labor Association labour. The training has a direct
to understand and address (FLA) and two key suppliers to impact for workers, with some 366
child labour and women’s deepen our understanding of farmers and recruitment agents
empowerment issues in our labour rights issues, including agreeing formal contracts ahead
hazelnut supply chain in Turkey. child labour and women’s of the harvest, exceeding standard
empowerment. This helped practice in the sector. Some 413Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 11 | 15
Progress & Performance:
Programme & Targets (Continued)
3. Implement responsible What’s next?
sourcing in our supply chain
In 2018, we expanded our
We will increase our focus
responsible sourcing scope on achieving responsible
(see page 7) and made progress sourcing in our lower
on our journey to direct the
majority of our raw material spend
impact, lower priority
categories, including
Case study
to responsible suppliers. Overall,
63% of our 14 priority commodities through strengthened Taking our ethical CARE
were responsibly sourced, 72%
were traceable and 61% of our
governance structures audits to the next level
and by directing increased
total purchasing spend and volume
was sourced from audited and resource to these areas.
compliant suppliers. To promote the highest ethical Working closely with the Danish In this way, we aim to help
standards across our business, Institute of Human Rights prevent modern slavery
we seek to foster a culture of (DIHR), we reviewed the and raise ethical standards
integrity and respect within CARE programme in 2018 by uncovering and tackling
our company and throughout to incorporate current best any risks in advance.
our supply chain. For example, practices on human rights.
we reinforce messages about We conducted training, Read more about our culture
of integrity
compliance, provide training addressed key audit findings
on compliance related topics and reduced the number of gaps
and raise awareness of relevant between actual and expected
grievance mechanisms. We performance on social, ethical
monitor our progress through and environmental issues.
CARE, our compliance and In particular, we enhanced
social audit programme, which our focus on human rights
uses independent external by integrating questions on
assessors such as SGS, Bureau issues such as labour conditions,
Veritas and Intertek, to evaluate employment, business
and improve our performance. integrity and health and safety
throughout our standard audit.Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 12 | 15
Progress & Performance:
Programme & Targets (Continued)
70 4 27
4. Ensure that all employees and The messages received covered
stakeholders can easily report issues such as leadership style,
potential compliance violations labour practices, discrimination
Everyone has the right to be and harassment. We also received
respected at work, and effective 486 questions from employees
grievance mechanisms and seeking compliance advice. 1,568 Labour Environmental Supplier
remediation policies are essential (85%) cases were closed and 500 practices suggestions concerns
21 7 114
to protecting the human rights (32%) substantiated, including
of people across our value chain. 12 private-to-private bribery cases,
In our continuous efforts to be resulting in 139 employees leaving
a better company, we believe the company. There were 58
it is important to learn from our written warnings, eight suppliers’
own experiences and prevent services were terminated and other Fraud cases Harassment Other general
their reoccurrence. measures were taken, including concerns
28 11
internal process improvement
In 2018, we received 1,837 and reinforcement.
messages through our global
Nestlé Integrity Reporting System, Our external, independently
which enables employees to report managed whistle-blowing channel,
illegal or non-compliant behaviour ‘Tell us’, gives all external
anonymously. With a year-on-year stakeholders the opportunity to
Leadership Private-to-private
increase of 6.4% in complaints report any possible non-compliance
issues bribery
28 23
received through our Integrity incidents against the Nestlé
Reporting System, we can be Corporate Business Principles.
confident that our employees are We received and addressed 699
increasingly able to report any messages via Tell Us, taking action
concerns around compliance. to improve internal processes,
as appropriate. Conflicts Safety and
of interest qualityNestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 13 | 15
Progress & Performance:
Programme & Targets (Continued)
As a result of the issues raised What’s next?
in 2018, one warning letter
was issued and five people left
Building on our efforts to
the company around the world. review the effectiveness
To help prevent reoccurrence, of our grievance systems,
we also improved and reinforced we will enhance leadership
internal processes.
responsibility for compliance Case study
In 2018, we achieved our objective with a corporate toolkit Introducing a helpline for
of implementing a root cause for managers on business
analysis (RCA) system to help integrity in 2019, and palm oil workers in Malaysia
us prevent serious compliance
incidents, and shared the new identify further opportunities Preventing forced labour in Facebook Messenger or
process across our markets by to expand effective Malaysia’s palm oil plantations a toll-free phone number.
webinar. Markets implemented grievance and remediation requires effective grievance We investigate and address
RCAs for severe cases, as mechanisms for workers, any instances of forced labour
appropriate. Additionally,
systems in key production
as confirmed by a 2018 or other instances of human
100% of our markets deployed countries. Consumer Goods Forum report. rights abuses, and take action
communication plans and We partnered with Sime Darby to prevent their reoccurrence.
practices, further reinforcing Plantation to create a helpline The creation of an official grievance
our message that employees for workers to report human mechanism for workers also
should report any potential and labour rights abuses. allows us to gain a deeper
compliance breaches. Co-developed by the understanding of potential
Responsible Business Alliance human rights risks in Malaysia’s
and solution developer ELEVATE, palm oil plantations. We are now
the helpline uses the Laborlink building on this initial project
platform to enable workers to to extend the tool to thousands
report on rights issues including more workers in Malaysia.
working conditions, recruitment,
and health and safety. Workers Read more about the
helpline and this initiative
can report any issues safely and
anonymously via multiple
channels, including SMS,Nestlé UK and Ireland Modern Slavery and Human Trafficking Report 2018 14 | 15
Our Challenges and
Looking Forward
Within our human rights commitments, we set ourselves
some ambitious targets around modern slavery and human
trafficking to be achieved by 2020.
While we are making good
progress on meeting our For our communities
commitments, we recognise Helping develop thriving, resilient communities
that there is still much to be
done. We will continue to explore
best practice in identifying and Our priorities by 2020
addressing human rights impacts
of modern slavery in order to Assess and address human rights impacts Ensure that all employees and
build an in-depth view of our in our operations and supply chain stakeholders can easily report
Train all Nestlé employees on human rights. possible compliance violations
supply chains. Similarly, we will
A proactive review is conducted for
strengthen our efforts to reach our compliance activities and policies
Eliminate child labour in key commodities
more vulnerable workers and in light of our evolving product portfolio.
Source 230,000 tonnes of cocoa through
child labourers, scaling up the Nestlé Cocoa Plan (key to which is child
proven monitoring, grievance labour prevention).
and remediation initiatives.
Our increasing focus on responsible Embedding responsible sourcing
in our supply chain Read more about our
sourcing and ongoing work to goals and plans
For Tier 1, direct suppliers, over 80%
engage key stakeholders in
of the total spend and volume sourced
improving compliance will directly from audited and compliant suppliers.
support our work to prevent modern For raw materials suppliers, 80%
slavery in our supply chains. of the spend and volume of our
priority categories to be traceable
and 70% to be responsibly sourced.Good Food, Good Life We hope you find this reporting engaging and informative, and welcome your input and views. You can share them with our team at update@uk.nestle.com For further information on our priorities, you can consult our Creating Shared Value Report 2018. Nestlé UK & Ireland 1 City Place Gatwick United Kingdom RH6 0PA
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