FFC Calls On Nestlé To Improve Supply Chain Sustainability

June 25, 2015

Friends Fiduciary has joined a global investor group representing $334 billion in assets, asking that Nestlé’s corporate management attend to environmental, social, and governance issues in their operations in order to protect investor capital over the long term. Future cocoa production depends on ecological sustainability and fair treatment of workers who grow and harvest the cocoa. In their communication, investors thank Nestlé, and other companies in the sector, for their efforts to prevent child labor, assist farmer organization and training, develop Key Progress Indicators (KPIs) for sustainability in cocoa production, and implement independent verification in parts of the cocoa supply chain. Despite these efforts, investors are concerned whether improvements in these areas will increase the attractiveness of cocoa farming as an occupation for the next generation of farmers. Therefore, FFC and other investors are encouraging Nestlé to set specific goals and report on their progress in the area of farmer incomes, access to school for children in cocoa-producing communities, and strengthened child labor remediation. We are also seeking specific KPIs for companies and the industry with transparent reporting. This will allow managers, investors, and other stakeholders to make a fair assessment of the work Nestlé, and the industry, has done and future progress. As part of the investor coalition, FFC believes that a sustainable cocoa supply chain with decent living conditions for cocoa farmers is possible both at the individual company and industry levels.  We would like to see increased efforts in this area and believe that Nestlé has the potential to lead the industry in supporting the well-being of cocoa farming, thereby protecting capital returns over the long term. Click here for the Letter