Nestlé pulp and paper objectives 2016

February 11, 2016

 

Objective 1

→ 70% Traceable to source (The sources of the pulp and paper we buy are identified back to at least Country of Harvest (COH) by Nestlé where preliminary country risk assessment is conducted). This approach enables TFT to focus attention and resources on companies in the medium and high priority countries where there are the greatest risks to deforestation.

Activity Progress: Q3 – 74%

Objective 2

→ 60% Responsibly Sourced (The pulp and paper we buy originates from either low priority sources, sources that have been assessed against our Responsible Sourcing Guideline and meet its requirements, or from recycled sources.)

Activity Progress: Q3 – 49%

WAVE 1 (2012-16) WAVE 2 (2013-16) WAVE 3 (2015-17)
Brazil Thailand Mexico
China Vietnam Chile
Europe CWAR Japan
India
Indonesia
Malaysia
USA

 

  1. Supply chain mapping

Activity Progress Q3: TFT with Nestlé continue to push for revised and updated supply chain information from WAVE 1 and WAVE 2 markets on at least an annual basis, whilst supply chain mapping in WAVE 3 markets only commenced after the buyer/supplier RSG training workshops in the latter half of 2015. TFT is looking to incorporate lessons learned in collating the information required to improve visibility and reporting of progress metrics. TFT is also supporting Nestlé in the pilot of Achilles, an online supply chain mapping service provider in a number of markets.

WAVE              WAVE Volume (MT)       Traceable to source (%)       Responsibly Sourced (%)
WAVE 1 1,336,696 86 56
WAVE 2 35,417 84 80
WAVE 3 64,014 0 0
Total 1,576,368 74 49

Whilst “virgin” fibre is the key focus of TFT’s engagement with Nestlé, TFT has produced a Recycled Material Info Note in November to explore what some of the potential issues might be in Nestlé’s supply chains and look to start collect data to determine what and if any next steps are required.

 

  1. Fibre analysis

Activity Progress Q3: Supply chain information is updated on a quarterly basis for Nestlé’s quarterly reporting. This uses the Fibre Assessment Tool (FAT) that summarises the priority against a particular country based on Nestlé’s RSG requirements. The FAT is revised on at least an annual basis, and to support this work TFT has also produced Country Profiles  that summarise the PP industry as well as the environmental and social issues

 

  1. RSG implementation

Activity Progress Q3: TFT has to date conducted 14 supplier field visits that comprise either converter, pulp and paper mill or forest visits. These visits target the high priority suppliers in Nestlé’s supply chain to evaluate against Nestlé’s RSG

WAVE    Supplier Visits (Converter, Pulp Paper Mill, Forest)       Workshops     
WAVE 1 9 0
WAVE 2 5 0
WAVE 3 0 3
TOTAL 2015           14 3

 

  1. Supply chain monitoring

Activity Progress Q3: Follow up activities are conducted with suppliers to build and maintain engagement for continual improvement. This includes activities such as renewing supply chain information, progress against action plans, supplier training sessions. Six follow up field visits have been conducted by TFT to date in 2015, and there has been additional follow up with suppliers through remote communications such as by email and phone.

 

  1. Training local teams and project handover

Activity Progress Q3: Throughout the above activities TFT leads in their respective markets are communicating with those responsible in Nestlé on the work programme progress and planning and also participating in supplier field visits to build capacity. TFT has been exploring the different scenarios available with Nestlé to start implementing the different activities next year.

Reporting

TFT reports to Nestlé HQ on a quarterly basis, which includes progress figures on the overall responsible sourcing objective targets above as well as by specific market. TFT also updates Nestlé on key activities with suppliers that have taken place in the reporting period as well as key issues on specific markets pertaining to the PP industry, specific suppliers and TFT’s engagement with relevant Nestlé leads. This feed’s into an annual report that will be reviewed by Nestlé in January 2016 and help to inform the priorities and work plan activities for the following year.

TFT and Nestlé also meet on an ad hoc basis during the year – three to date – to discuss particular points of interest or support communicating how TFT and Nestlé are working together to stakeholders e.g. Nestlé’s Creating Shared Value event.

In 2014, TFT also started to work with Nestlé to produce an annual update on activities in the Pulp and Paper work, bringing examples and particular case studies and the different context from the engaged markets.