Assessing Human Rights Impacts in Nestlé’s Business Activities Stakeholder consultation, London April 29, 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 1 September, 2014
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
Human Rights in our Business Activities: Examples Right to health (safety and health at work) Right to just and favourable conditions at work Right to freedom Right to freedom from child of association labour Right to health (consumers’ health) Right to water Right to education
The Nestlé Strategic & Performance Framework 4x4 1 September, 2014
Nestlé’s Human Rights Due Diligence Programme 1 September, 2014
1. Policy Commitments Maintreaming human rights into new or exisiting policies and procedures 1 September, 2014
2. Stakeholders Engagement Engaging with key stakeholders on human rights issues IUF Uniting food, farm and hotel workers world-wide 1 September, 2014
3. Training Increasing the awareness and building the capacity of our employees worldwide 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) 1 September, 2014
4. Risks Evaluation Integrating human rights into our overall Enterprise Risk Management System 43 material human rights risks evaluated each year 5 levels of analysis: Nestlé facilities Tier-1 suppliers Upstream suppliers Local communities Markets How can human rights risks impact our business? Brand, reputation, legal, operational, etc. 1 September, 2014
5. Impacts Assessments (1) Assessing human rights impacts of our business activities HUMAN RESOURCES HEALTH & SAFETY SECURITY BUSINESS INTERGITY • Working conditions • Medical services • Security risk • Corruption • Discrimination • Repetitive stress • Privacy (employees) management • Association & • Private guards • Lobbying injuries • Night work • Public authorities • Complicity bargaining COMMUNITY IMPACTS PROCUREMENT RAW MATERIALS MARKETING • Land acquisition • Working conditions • Child labour • Product quality & • Access to water • Selection and • Forced labour safety • Health impacts • Health & safety • Product advertising monitoring • Privacy (consumers) 1 September, 2014
5. Impacts Assessments (2) Engaging with rightholders : employees, contractors suppliers, farmers, local communities 1 September, 2014
5. Impacts Assessments (3) Reporting on HRIAs process, findings and remediation actions 1 September, 2014
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 CEO Nestlé Human Rights Working Group Public Affairs Human Resources Legal Compliance HRIAs briefings and Security Risk Management follow-up on action plans: SHE + Zones Management Procurement 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 Human Rights Risks Assessments Human Rights Impacts Assessments Traceability Assssments Sedex/SMETA audits CARE audits Certification/Verification Integrity Tells Us Reporting System Rural Development Framework 1 September, 2014
8. Monitoring & Reporting Reporting on our human rights performance and challenges 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 1 September, 2014
HRIAs and Nestlé’s HRDD Programme 1 September, 2014
Our commitments to our people, human rights and compliance 29o Assess and address human rights impacts in our operations and supply chain Objective 12 By 2015 – All FTSE4Good countries of concern where we have significant involvement are covered and employees trained 23 01 September Nestlé in Society: Creating Shared Value and meeting our commitments 2014
1. Methodology 2. Results 3. Lessons learnt Reactions and feedback
REACTIONS TO HRIA WHITE PAPER 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: 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
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