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Assessing Human Rights Impacts in Nestlé’s Business Activities Stakeholder consultation, London April 29, 2014
1 September, 2014
Agenda
9.30-09.40 Welcome and introductory remarks, Christian Frutiger, Nestlé
9.40-10.00 Nestlé’s Human Rights Due Diligence Programme: Overview,
Yann Wyss, Nestlé
10.00-11.00 Nestlé’s HRIAs: Introduction, Allan Jorgensen, DIHR
Panel discussion:
• Peter Frankental, Amnesty International UK
• Adam Greene, Bureau for Employers' Activities, ILO
• Farid Baddache, Business for Social Responsibility
Coffee break – Transition to break-out rooms
11.00 -12.30 Break-Out Session and Group Discussion:
• HRIA scope
• Stakeholder and rights-holder engagement
• Integrated vs. stand-alone HRIAs
• HRIA reporting
12.30-13.15 Lunch
1 September, 2014
Basic rules for constructive engagement
Objective: To improve the way human rights impacts of Nestlé’s business activities are
assessed and addressed
Focus = HRIA methodology and process
References to specific countries are welcome but should be used to illustratre
strengths/weaknesses of HRIAs
Country-specific HRIA findings will not be shared/discussed during this session
Public report:
Chatham House Rule
To be shared with all participants before making it public
Organisations who don’t want to be named as participants, please let us know
Next steps:
Additional stakeholder consultations to be held in 2014 and 2015
Recommendations from consultations integrated into HRIA process
By 2015:
Cover all FTSE4Good «countries of concern»
«Talking the Human Rights Walk»: Volume II
Nestlé’s Human Rights
Due Diligence Programme: Overview
1 September, 2014
A Material Issue Now…
and for the Future
Our Key Opinion Leaders (KOLs) think that Human Rights:
Are critical to Nestlé’s business
Will become even more important in the next few years
Source: Nestlé Stakeholder Community Survey, GlobeScan, 2013
1 September, 2014
Nestlé Materiality Analysis 2013
1 September, 2014
Right to just and
favourable
conditions at work
Right to health
(consumers’
health)
Right to water
Right to
freedom
from child
labour
Right to freedom
of association
Right to health (safety
and health at work)
Right to education
Human Rights in our Business Activities: Examples
The Nestlé Strategic & Performance Framework 4x4
1 September, 2014
1. Policy Commitments
Maintreaming human rights into new or exisiting policies and procedures
1 September, 2014
2. Stakeholders Engagement
IUF Uniting food, farm and hotel workers world-wide
1 September, 2014
Engaging with key stakeholders on human rights issues
3. Training
Achievements since 2011:
Translated into 6 languages
42,000 employees trained
64 countries covered; 25 high-
risk (FTSE4Good) countries
3 face-to-face sessions for
Corporate Human Resources
(166 employees trained)
Increasing the awareness and building the capacity of our employees
worldwide
1 September, 2014
4. Risks Evaluation
Integrating human rights into our overall Enterprise Risk Management System
1 September, 2014
43 material human
rights risks
evaluated each year
5 levels of analysis: Nestlé facilities
Tier-1 suppliers
Upstream suppliers
Local communities
Markets
Brand, reputation, legal,
operational, etc.
How can human rights
risks impact our
business?
5. Impacts Assessments (1)
HUMAN RESOURCES HEALTH & SAFETY SECURITY
BUSINESS INTERGITY
• Working conditions
• Discrimination
• Association &
bargaining
• Medical services
• Repetitive stress
injuries
• Night work
• Security risk
management
• Private guards
• Public authorities
• Corruption
• Privacy (employees)
• Lobbying
• Complicity
COMMUNITY IMPACTS PROCUREMENT RAW MATERIALS MARKETING
• Land acquisition
• Access to water
• Health impacts
• Working conditions
• Selection and
monitoring
• Child labour
• Forced labour
• Health & safety
• Product quality &
safety
• Product advertising
• Privacy (consumers)
1 September, 2014
Assessing human rights impacts of our business activities
5. Impacts Assessments (2) Engaging with rightholders : employees, contractors
suppliers, farmers, local communities
1 September, 2014
5. Impacts Assessments (3)
1 September, 2014
Reporting on HRIAs process, findings and remediation actions
+ Zones Management SHE Procurement
HRIAs briefings and
follow-up on action plans: Risk Management Security
Legal Compliance
6. Human Rights Working Group (1)
Creating the enabling structure and environment: Nestlé HRWG
Supervise and coordinate implementation progress
Provide strategic oritentation
Contribute technical expertise
Nestlé Human Rights Working Group
Public Affairs Human Resources
CEO
1 September, 2014
6. Human Rights Working Group (2)
Nestlé’s HRWG is fully integrated into Nestlé overall governance structure
1 September, 2014
7. Partnerships & Dialogue
Partnering with exepert organisations to further improve our human rights
performance
Global partnerhsip:
Nestlé human rights
due diligence approach
Focused partnership:
Labour standards in
Nestlé agricultural supply chains
Action-oriented dialogue:
Nestlé and trade unions in Colombia
1 September, 2014
8. Monitoring & Reporting
Maintreaming human rights into monitoring systems and procedures
Nestlé facilities Tier-1 suppliers Upstream suppliers
1 September, 2014
Sedex/SMETA audits Traceability Assssments
Human Rights Impacts Assessments
Certification/Verification
Human Rights Risks Assessments
CARE audits
Rural Development Framework
Integrity
Reporting System Tells Us
8. Monitoring & Reporting
Reporting on our human rights performance and challenges
1 September, 2014
2013 main features:
Revised version of our Supplier Code: New
human section
New external grievance mechanism: Tell Us
9 HRIAs completed since 2010
42,000 employees trained on human rights
in 64 countries since 2011
43 human rights risks evaluated every year as part of our
Enterprise Risk Management System
Action plan on child labour in Côte d’Ivoire
25,000 farmers received illustrated Supplier Code
90 supplier and personnel trained on child labour
Monitoring & remediation system in 8 cooperatives
http://www.nestle.com/csv/human-rights-compliance
Our commitments to our people, human rights and compliance 29o
Assess and address human
rights impacts in our
operations and supply chain
12 By 2015 – All FTSE4Good countries of
concern where we have significant
involvement are covered and employees
trained
Objective
23 01 September
2014
Nestlé in Society: Creating Shared Value and meeting our commitments
1. Methodology
2. Results
3. Lessons learnt
Reactions and feedback
Reactions from NGOs, trade unions, business groups, experts and practitioners
Praise: Welcomed as important step towards greater transparency on human rights for Nestlé and for business more generally
Criticism: HRIAs are not sufficiently independent of Nestlé, public relations stunt
Criticism and improvement suggestions: 1. General 2. Scope of the assessments 3. Human rights issues considered 4. Methodology and process 5. Stakeholder participation
REACTIONS TO HRIA WHITE PAPER
REACTIONS: GENERAL
Welcomed as important step towards greater transparency on human rights for Nestlé and for business more generally
Parameters for the assessments were set by Nestlé, public relations stunt
The assessments review corporate policy rather than practice
REACTIONS: SCOPE OF THE ASSESSMENTS
1. Geographical scope: need to focus on high risk countries but also cover other countries
2. Need to consider impacts from more functions such as Production.
3. What about full value chain such as supermarkets who sell Nestlé products? Need to consider upstream impacts.
4. Differentiating between potential and actual impacts
REACTIONS: HUMAN RIGHTS ISSUES CONSIDERED
1. Does not include a discussion around the human rights to water
2. What about environmental impacts to communities?
3. Risk of missing impacts: limiting the scope of rights during the pre-assessment stage vs remaining open
4. Lense of assessment: 8 functions or 48 rights?
5. Can we assume from this that you are only concerned with your Raw Material Suppliers' impacts on a few human rights and of employees only?
6. Lacks focus on how Nestlé addresses threats against staff and union leaders from paramilitaries, with particular reference to Colombia.
REACTIONS: METHODOLOGY AND PROCESS
1. The presence of Nestlé management in worker interviews is highly questionable for gaining valid and accurate perceptions.
2. Should try to build capacity of local consultants.
3. Final assessment data is vetted by Nestlé headquarters and executives in the countries where operations were evaluated
4. Work with local management to develop the responses to the findings - to ensure they have the necessary ownership of the outcomes to implement them.
5. More emphasis on tracking the progress and efficiency of mitigation actions
REACTIONS: STAKEHOLDER PARTICIPATION
1. Should establish multi-stakeholder oversight of impact assessment processes.
2. Should involve participation of rights holders at “integrating and acting upon the findings” stage.
3. Need to be established how follow-up will happen, in particular how results will be communicated to the stakeholders involved.
1. HRIA scope
2. Stakeholder and rights holder
engagement
3. Integrated vs stand-alone HRIAs
4. HRIA reporting
BREAK-OUT GROUPS
7 HUMAN RIGHTS IMPACT ASSESSMENTS: SOME LESSONS AND REFLECTIONS
1. Country selection: when and where to do HRIA
2. Tools: need to be simple yet comprehensive and grounded in int’l norms
3. Time and money: combining cost-effectiveness and sustainability with scope and depth
4. HRIAs as capacity building: balancing company involvement with third party independence
5. Stakeholder engagement: requires local expertise to be meaningful
6. Government authorities: risks vs value added of engaging
7. Public reporting: pros and cons
8. Integrating findings: feeding local lessons into global systems
9. Making it normal: embedding HRIA into the normal business process
