Nestlé case study: Journey towards No Deforestation

Wouter van Tol

Nestlé UK & Ireland

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Nutrition, Health & Wellness

1bn customers per day

120 countries

Sales CHF 83bn

280,000 employees

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Palm oil: a small commodity for Nestlé, but high profile due to the deforestation issue

Biodiversity Nestlé’s No Deforestation commitment

• Destruction of tropical rainforests and peatlands to cultivate

crops such as palm oil is one of the most serious

environmental issues facing us today.

• Estimate: rainforest destruction contributes to around 20% of

greenhouse gas emissions. Biofuels are a significant factor.

Action taken in 2010

• Commitment to ensure that our products do not have a

deforestation impact

• Partnership with The Forest Trust (TFT) to eliminate

deforestation from our supply chain.

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Responsible

Sourcing

Guidelines

Proactively intervening in the supply chain

• Base: RSPO certification

• In addition: active intervention with TFT for traceability and protection of

High Carbon Stock and peatlands

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… and Supporting our Suppliers

Supply Chain Mapping

Examples of challenges

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Management Tools

Overlaying our supply chain

with maps of where deforestation

is happening and where it will be

going next

Definitions of deforestation

E.g. if definition is 30% canopy

cover, what action to take when?

• If canopy cover 30%29%?

• If canopy cover 100% 30%?

In summary

• Deforestation is an important issue for a consumer goods

company like Nestlé

• Nestlé actively intervenes in the supply chain based on

Responsible Sourcing Guidelines (for cross-cutting issues

and specific categories)

• Working closely with suppliers to make them part of the

transformation process

• Many challenges ahead, but we are making progress

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