No Deforestation Chatham House 060712

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

BiodiversityNestlé’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 deforestationis happening and where it will be going next

Definitions of deforestationE.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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