During the EcoVadis SustaIn event in March, Marco Gonçalves, Senior Vice President and Chief Procurement Officer at Nestlé shared how they have taken responsible sourcing program beyond compliance and sustainability, to Creating Shared Value in their initiative.
Marco Gonçalves, Senior Vice President and CPO at Nestlé from EcoVadis on Vimeo.
“The Nestle responsible sourcing program is in fact the way that procurement contributes to the overall Nestle creating shared value. In this approach, which is the way Nestle works, creating shared value, we start with compliance, then sustainability, and then create shared value in 3 areas: nutrition, water and rural development.
In the case of responsible sourcing, we are working on two fronts. One is with Tier 1 suppliers and what we are doing is really assessing suppliers with a continuous improvement mindset, in a way we can understand what the operating conditions are in the areas of sustainability, human rights, business integrity, etc.
We have audited so far more than 80,000 suppliers around the world over the past 4 years but the main point is continuous improvement. I’m very happy to say that to date more than 99% of the suppliers have engaged and they have agreed to put their corrective action plans in place. Beyond that, we’ve learned that working with Tier 1 suppliers was not enough. (At Nestle) we have a multi-tier supplier approach and in this case we trace and map back our supply chain to origin farmers or plantations.
In this case, we focus on 12 (raw) materials like cacao, coffee, hazelnuts and etc and for each material, we have criteria established in the Nestle responsible sourcing guidelines. So this Tier 1 assessment and multi-tier assessment is part of our responsible sourcing approach.”
“In fact, the Ecovadis approach, the tool, the process has been very helpful for us over the last 18 months working with Ecovadis and it’s really about working with how we reach small suppliers. Because when (we) speak about multinational big suppliers, it is easier to audits, to send people on the ground, which is always very important. But for the smaller suppliers, how (do) we make this programme, the Nestle responsible sourcing programme something that they can engage? And I think Ecovadis has provided a tool which is simple, at the same time effective and credible, which allows us to move in that direction. So, we have started with the service and indirect materials using Ecovadis and to date has been very successful. We have done more than 700 audits to date (March 2015).”
-Transcript of video interview with Marco Gonçalves, EcoVadis Sustain2015 client committee event, March 2015.