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Nestlé 57/100

(VTX:NESN) 3 of 20 (2016)

Nestlé S.A. (Nestlé) ranks third on the benchmark, demonstrating a higher degree of transparency in its approach to managing forced labor risks in its supply chain. Nestlé also ranks among the top three in thematic areas, including commitment and governance, traceability, and risk assessment, and worker voice. Most notably, the company ranks first in the worker voice theme, displaying some leading practices in this area. Despite its strong overall performance, Nestlé has an opportunity to improve its performance in the areas of purchasing practices, recruitment, and remedy programs.

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57 /100

2016 Ranking: 3 of 20

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57

Nestlé was evaluated both in 2016, when it ranked third out of 20 companies, and in 2018, when it ranked fifth out of 38 companies. Nestlé has improved by one point since 2016 to score 58/100. The company improved by disclosing the list of its palm oil suppliers, a requirement for its suppliers not to use "production targets or performance indicators that lead to forced labour or work above reasonable limits," and collaborating with the Issara Institute, which provides workers in its Thai seafood supply chains access to grievance mechanisms.

METHODOLOGY

58

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

2018 BENCHMARK

2016

57

Nestlé was evaluated both in 2016, when it ranked third out of 20 companies, and in 2018, when it ranked fifth out of 38 companies. Nestlé has improved by one point since 2016 to score 58/100. The company improved by disclosing the list of its palm oil suppliers, a requirement for its suppliers not to use "production targets or performance indicators that lead to forced labour or work above reasonable limits," and collaborating with the Issara Institute, which provides workers in its Thai seafood supply chains access to grievance mechanisms.

METHODOLOGY

2018

58

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

2018BENCHMARK

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 22 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement.

OVERALL 81
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
80
Management and Accountability
100
Training
50
Stakeholder Engagement
75

Traceability and Risk Assessment

The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.

OVERALL 88
Traceability
75
Risk Assessment
100

Purchasing Practices

The company's awareness and action on purchasing practices that can exacerbate forced labor risks and its process for selecting suppliers, integrating standards into contracts, and cascading them down the supply chain.

OVERALL 56
Purchasing Practices
25
Supplier Selection
50
Integration into Supplier Contracts
50
Cascading Standards through the Supply Chain
100

Recruitment

The company's approach to reducing exploitation by recruitment agencies and eliminating workers' payment of fees for their jobs.

OVERALL 17
Recruitment Approach
0
Recruitment Fees
50
Recruitment Audits
0

Worker Voice

The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.

OVERALL 65
INDICATORS
Communication of Policies
50
Worker Voice
100
Worker Empowerment
50
Grievance Mechanism
60

Monitoring

The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.

OVERALL 53
Auditing Process
25
Audit Disclosure
80

Remedy

The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.

OVERALL 38
Corrective Action Plans
75
Remedy Programs
0

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