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Nestlé now ranks second in the scorecard, just below Unilever. Nestlé leads the way with policies on water and remains the most transparent company. Since February 2014, Nestlé has made some improvements in land and farmers and and has updated its action plans to support women in cocoa supply chains. Nestlé could make more of a difference by implementing similar action plans for women in its coffee and dairy supply chains.
How are the scores formed?
We assessed publicly available information on the policies and commitments of the 'Big 10' food companies towards the sourcing of agricultural commodities from developing countries. The Scorecard looks at seven themes, weighing each theme equally. The index tackles some cutting edge issues that will require rigorous debate and dialogue between companies, civil society and industry experts. Find out more...
What do the scores mean?
- 8 - 10Good
- 6 - 7Fair
- 4 - 5Some progress
- 2 - 3Poor
- 0 - 1Very poor
Land
Score 8In August 2014, Nestle adopted a strong policy – it committed to zero tolerance for land grabbing. Nestle also requires its suppliers to support the ‘Free, Prior, and Informed Consent’ of indigenous and local communities, and commits to advocate to sourcing country governments to implement strong land tenure.
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Score 5Nestle delivered a quality gender impact assessment in the cocoa sector and has set ambitious targets in its action plan for 2015. The company is making considerable efforts to gather stakeholder input on its gender equality targets for cocoa. We will continue monitoring to see how Nestle fulfills those commitments.
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Score 7Nestle’s disclosure about its involvement with small-scale farmers is one of the most advanced, and the company is working with its suppliers to tackle issues faced by small-scale farmers. It requires suppliers to support farmers’ organizations, but it still doesn’t ensure that farmers earn a living income.
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Score 6Nestle scores highly on workers rights, but the company could do much more to ensure workers in its supply chain are able to work their way out of poverty. Nestle should start recording the wages that workers are paid so that they can be compared to living wage benchmarks. The company should also develop a strategy for raising low wages.
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Score 8Nestle is rising to the climate challenge with solid policies on deforestation, palm oil, agricultural emissions, and advocacy engagement. There is still room for improvement on implementation of commitments, renewable energy goals, and setting science-based targets for emissions reductions.
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Score 7Nestle is one of the top in Transparency! Nestle reveals where it sources from, how much it sources for key commodities, including some key suppliers. Nestle provides excellent sustainability reporting and is the only company disclosing the ratio of CEO and median employee pay, but it provides very limited information on taxation.
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Score 7Nestle supports major water initiatives and has the most specific guidance to suppliers on water management. But the company has not set a target to reduce water use in its whole value chain or developed grievance mechanisms in cases where water rights have been violated.
See how other companies score on Water