Nestle Says 77% of Supply Chain Is Now Deforestation-Free
April 30 2019 - 12:22PM
Dow Jones News
By Maitane Sardon
Nestle (NESN.EB) on Tuesday said it has verified that 77% of the
agricultural commodities it uses for its products aren't linked to
deforestation activities, as it works toward its goal to curb
rainforest destruction caused by large-scale plantations.
The Swiss food-and-drink manufacturer said it is now sourcing
more than three quarters of commodities such as palm oil, cocoa and
soya from plantations that aren't using nearby virgin forests to
expand their farms.
To verify that suppliers aren't destroying forests to make land
available, Nestle said it is combining satellite-monitoring
services and engagement with all of its suppliers. The company aims
to have a deforestation-free supply chain by 2020.
Previously, a lack of technology didn't allow for close
monitoring of Nestle's primary agricultural-products suppliers,
said Benjamin Ware, global head of responsible sourcing, but the
company now uses satellites to monitor the land where suppliers
operate. These analyze the heat coming from the soil and show
whether land is being burned as well as the type of forest and
crop.
"We were blind before, we didn't know where to go and it was
very time-consuming, but now we get deforestation alerts and can
take action," he said.
If a supplier is found to be destroying rainforest to expand its
plantation, Nestle asks it to commit to compensate for the loss. If
the supplier agrees, it enters a six-month monitoring plan, he
said. If the supplier doesn't agree, Nestle cuts ties with the
supplier.
Mr. Ware said the data collected show that challenges remain,
especially when dealing with smaller farmers delivering small
quantities of palm oil that can't be monitored.
Write to Maitane Sardon at maitane.sardon@dowjones.com
(END) Dow Jones Newswires
April 30, 2019 12:07 ET (16:07 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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