Primary Supply Chains in Food Industry

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Questions and Answers

What percentage of primary supply chains for meat, palm oil, pulp and paper, soy, and sugar were assessed as deforestation-free?

99.1% (correct)

93.4%

97.9% (correct)

97.2% (correct)

What percentage of key ingredients does the company aim to source from farmers adopting regenerative agricultural practices by 2025?

20% (correct)

30%

10%

50%

By what year does the company aim to achieve a 100% assessed deforestation-free supply chain for cocoa and coffee?

2020

2025 (correct)

2023

2022

What is the company's goal regarding assessed deforestation-free primary supply chains for meat and palm oil?

To achieve 100% by 2022 Signup and view all the answers

By what year does the company plan to achieve 50% of its key ingredients sourced from farmers using regenerative practices?

2030 Signup and view all the answers

What is the target reduction in water use in factories by 2023?

6 million m3 Signup and view all the answers

Which of the following products is NOT included in the primary supply chains reported for deforestation-free assessments?

Beef Signup and view all the answers

What was the assessed percentage for deforestation-free primary supply chains for cocoa and coffee?

93.4% Signup and view all the answers

What is the baseline year for the greenhouse gas (GHG) emissions reductions indicated?

2018 Signup and view all the answers

Which statement reflects the company’s approach towards its business growth?

Dedicated to growing the business while focusing on environmental and social responsibility. Signup and view all the answers

What is the company's approach to meeting consumer demands?

Adapting to changes through a diverse portfolio Signup and view all the answers

How much net reduction of greenhouse gas emissions is targeted relative to the 2018 baseline?

20% Signup and view all the answers

In what year is the company planning to achieve 100% assessed deforestation-free supply chains for meat, palm oil, pulp and paper, soy, and sugar?

2022 Signup and view all the answers

What level of assessed deforestation-free percentage does the company currently maintain for palm oil?

99.1% Signup and view all the answers

What area does the company intend to enhance in terms of sustainability in sourcing?

The sourcing landscapes used for key ingredients. Signup and view all the answers

What is the estimated reduction in water use in factories from the specified baseline?

6 million m3 Signup and view all the answers

What percentage of renewable electricity does Nestlé aim to achieve at its manufacturing sites by 2025?

100% Signup and view all the answers

What was the total emissions reported by Nestlé?

87.54 million tonnes Signup and view all the answers

Which initiative focuses on increasing regenerative agricultural practices?

The Nescafé Plan Signup and view all the answers

What percentage of Nestlé's total emissions are in scope for Net Zero?

79.55 million tonnes Signup and view all the answers

What impact did climate change continue to have in 2023 according to the data?

Affected more people and ecosystems Signup and view all the answers

What is a key collaborative effort mentioned in Nestlé's initiatives?

Collaboration with suppliers, farmers, and communities Signup and view all the answers

What type of support is being provided to farmers as part of the initiatives?

Technical support Signup and view all the answers

What is the primary goal of Nestlé's Net Zero commitments?

Achieve carbon neutrality Signup and view all the answers

What is the main focus of Nestlé's CSV Council's agenda?

Advancing regenerative food systems Signup and view all the answers

Which plan is associated with Nestlé's coffee initiatives for 2030?

Nescafé Plan 2030 Signup and view all the answers

What is a key component of the Nespresso Positive Cup Strategy?

Implementing a comprehensive waste management system Signup and view all the answers

Which initiative focuses on cocoa farmers' financial improvement?

Nestlé Cocoa Plan Income Accelerator Signup and view all the answers

Who were the participants in the '3 Horizons' facilitator training?

50 key stakeholders and Nestlé employees Signup and view all the answers

What does the term 'circular economy' refer to in Nestlé's context?

A system focused on reuse and recycling Signup and view all the answers

Which stakeholder group is included in Nestlé's community approach?

Farmers and youth Signup and view all the answers

What does the collaboration with startups like Circulation aim to achieve?

Development of new scalable reuse systems Signup and view all the answers

What is the primary strategy of the Task Force mentioned?

To reduce GHG emissions Signup and view all the answers

Which method is utilized to assess and disclose climate-related risks and opportunities?

Task Force on Climate-related Financial Disclosures (TCFD) Signup and view all the answers

What does Nestlé's climate-related emissions reporting separate?

Scope 1, Scope 2, and Scope 3 emissions Signup and view all the answers

In 2023, how much CO2e was represented by Nestlé's disclosures?

8.8 million tonnes CO2e Signup and view all the answers

What is one of Nestlé's approved targets concerning emissions?

Near- and long-term science-based emissions reduction targets Signup and view all the answers

Which aspect is specifically mentioned as optional for Nestlé's emissions reporting?

Indirect emissions related to the use of sold products Signup and view all the answers

What strategy does Nestlé use to achieve reductions in GHG emissions?

Improving energy efficiency and transitioning to renewable energy sources Signup and view all the answers

What should Nestlé's climate-related risks and opportunities be covered in?

Appendix of the report Signup and view all the answers

What is the focus area of the leadership message from Mark Schneider?

Employees' health and well-being Signup and view all the answers

What key aspect is highlighted in the progress against commitments section?

Data assurance from external auditors Signup and view all the answers

Which title does Mark Schneider hold within the organization?

Chief Executive Officer Signup and view all the answers

What document serves as an outline for Nestlé's sustainability strategies?

Creating Shared Value and Sustainability Report Signup and view all the answers

What role does the data assurance by EY play in the report?

Affirming sustainability commitments Signup and view all the answers

What principle does Nestlé apply to enhance its engagement with investors and analysts?

Transparent investor interaction and communication Signup and view all the answers

Which event did Nestlé participate in to drive discussions on food systems?

UN Food Systems Summit+2 Stocktaking Moment Signup and view all the answers

Which approach does Nestlé adopt for knowledge sharing among industry associations?

Regular engagements across ESG topics Signup and view all the answers

What initiative has Nestlé established with UNESCO?

Youth projects partnership Signup and view all the answers

How does Nestlé approach collaboration and advocacy with key stakeholders?

Ongoing discussions and presentations to advance priorities Signup and view all the answers

What is the primary focus of the governance structure mentioned in the material?

Meeting environmental and social governance (ESG) commitments Signup and view all the answers

How many times did the Council meet during 2023?

Which aspect is highlighted as essential for creating shared value within the governance?

Sound governance practices Signup and view all the answers

What type of committee is specifically mentioned in relation to sustainability oversight?

Sustainability Committee Signup and view all the answers

Which environmental concern is specifically listed in the strategies identified?

Reduction of greenhouse gas emissions Signup and view all the answers

What is being assessed through the key performance indicators mentioned?

Effectiveness of sustainability measures Signup and view all the answers

Which area does the governance structure focus on to ensure effective implementation of strategies?

Both financial and non-financial performance Signup and view all the answers

In regards to packaging, what specific goal is indicated in the strategies?

Design plastic packaging for recycling Signup and view all the answers

What is the primary focus of the ESG & Sustainability Council's meetings?

Standardizing decision-making and reporting on ESG issues Signup and view all the answers

Which of the following topics is NOT included in the Council's scope?

Product Pricing Strategies Signup and view all the answers

How does the Executive Board remuneration relate to ESG performance?

It is linked to ESG indicators through short-term incentives Signup and view all the answers

What is the purpose of the Value and Sustainability Report to be issued on February 22, 2024?

To provide comprehensive updates on sustainability progress Signup and view all the answers

What percentage of the grant value is tied to ESG-related key performance indicators for the Short-Term Incentive Plan?

15% Signup and view all the answers

When does the Council hold its meetings?

Every month Signup and view all the answers

What is the main strategic document associated with Nestlé's ESG & Sustainability goals?

2050 Net Zero Roadmap Signup and view all the answers

What type of data is generated by the Council every quarter?

Performance data on sustainability initiatives Signup and view all the answers

Which statement accurately captures one of the key market challenges noted in the document?

Sourcing challenges are specific to certain key ingredients. Signup and view all the answers

What percentage of key ingredient volumes does the company aim to have responsibly sourced by 2030?

100% Signup and view all the answers

Which specific year is mentioned for the inclusion of certain ingredients in the numerator for responsible sourcing?

2023 Signup and view all the answers

What is indicated as necessary for achieving sustainable growth in the context provided?

Navigating market challenges and opportunities. Signup and view all the answers

Which ingredients are included in the denominator for the calculation of servings with micronutrient fortification?

All listed raw materials, including dairy and fish. Signup and view all the answers

Which of the following statements is true regarding the percentage of key ingredients that are responsibly sourced?

All reported percentages are over 25% for recent assessments. Signup and view all the answers

What is specifically excluded from the key ingredients evaluated for responsible sourcing in 2023?

Blended green coffee and blue bottle. Signup and view all the answers

Which statement best describes the relationship between data comparability and the year-to-year ingredient sourcing calculations?

Data are not comparable across years due to differing methodologies. Signup and view all the answers

What does the HACCP system primarily help to ensure?

Food safety throughout the production process Signup and view all the answers

Which standard do the HACCP plans and systems comply with?

ISO 22’000:2005/ISO 22002-1 Signup and view all the answers

How does the organization enhance its analytics capability?

By employing cutting-edge technologies at Quality Assurance Centers Signup and view all the answers

What role does Nestlé's worldwide consumer services organization play?

It responds to consumer inquiries and concerns. Signup and view all the answers

What is one of the focuses of collaboration with partners mentioned in the content?

Mitigating potential food safety challenges Signup and view all the answers

What is the main goal of the Quality Management System implemented by Nestlé?

To ensure ongoing access to high-quality raw materials Signup and view all the answers

What are the main tools used for food safety risk assessment at Nestlé?

Hazard Analysis and Critical Control Points (HACCP), IRIS, and HINT Signup and view all the answers

What does the comprehensive training for employees responsible for food safety include?

Good Manufacturing Practices and internal standards Signup and view all the answers

How does Nestlé assist its suppliers in adhering to food safety protocols?

Through regular audits, inspections, and guidance Signup and view all the answers

What is one benefit of Nestlé's Quality Management System for farmers?

Improved quality of materials and living standards Signup and view all the answers

Which of the following represents the approach Nestlé takes towards food safety?

A combination of internal and external independent assessments Signup and view all the answers

What is the significance of the onboarding process for suppliers at Nestlé?

To ensure consistent delivery of safe, high-quality ingredients Signup and view all the answers

What is a primary component of the role Nestlé undertakes as the world’s largest food and beverage company?

Understanding and adhering to roles and responsibilities Signup and view all the answers

Study Notes

Performance Indicators Overview

Diverse product portfolio includes meat, palm oil, pulp and paper, soy, sugar, cocoa, and coffee.
Commitment to achieve 100% deforestation-free supply chains for meat, palm oil, pulp and paper, soy, and sugar by 2022; and for cocoa and coffee by 2025.
Current deforestation-free assessments:
- Meat, palm oil, pulp and paper, soy: 97.2%, 99.1%, 97.9%.
- Cocoa and coffee: 93.4%.

Agricultural Practices

By 2025, target is 20% of key ingredients sourced from farmers practicing regenerative agriculture; 50% by 2030.
6.8% to 15.2% of key ingredient sourcing currently comes from farmers adopting regenerative practices.

Environmental Commitments

Aiming for a net reduction of greenhouse gas emissions against a 2018 baseline.
Goal to reduce water usage in factories by 6 million cubic meters between 2021 and 2023.

Collaborative Initiatives

Implementation of the Nescafé Plan 2030, a framework supporting coffee sustainability.
Engagement with academia, farmers, and the investment community to promote sustainable practices and infrastructure.

Climate Impact Mitigation

90% of Nestlé's emissions are under Net Zero scope.
Total emissions reported at 87.54 million tonnes, with significant focus on indirect emissions from sold products.
Utilization of the TCFD methodology for climate risk and opportunity assessment.

Renewable Energy Goals

Achieved 91.9% renewable electricity at manufacturing sites, with a target of 100% by 2025.
Plans to transition to renewable energy sources to boost energy efficiency and reduce emissions.

Transparency and Reporting

Dedication to transparency in sustainability initiatives and progress reporting.
Commitment to review and disclose emissions reduction targets regularly.

Governance and Strategic Overview

Effective governance fosters shared value creation and alignment with environmental goals.
The Board of Directors oversees strategy and non-financial performance, meeting 12 times in 2023.
Key areas of focus include reduction of greenhouse gas emissions, sustainable packaging, and water conservation.

Business Model and Sustainability Goals

Aim to achieve 100% responsibly sourced key ingredients by 2030, including cocoa and coffee.
Progress against sustainability commitments is monitored through quarterly performance data.

Key Performance Indicators (KPIs)

2023 data for KPIs is independently assured, noting that comparisons year-on-year are not viable.
Recipe for affordable nutrition with micronutrient fortification reached 128.47 billion servings.
Specific focus on ingredients includes dairy, coffee, cocoa, cereals, grains, and vegetables.

ESG & Sustainability Council

The ESG & Sustainability Council provides strategic oversight and support for Nestlé's sustainability agenda.
Monthly meetings of the Council facilitate alignment on topics like net zero goals and responsible sourcing.
Executive Board remuneration linked to ESG outcomes includes 15% based on ESG-related KPIs since 2021.

Engagement and Advocacy

Nestlé maintains transparent communication with investors through regular meetings and calls.
Engagement with industry associations focuses on shared practices and advocacy in ESG areas.
Participation in global initiatives such as the UN Food Systems Summit and collaboration with UNESCO for youth projects promotes sustainability efforts.

Farm to Fork Quality Management

Quality Management System initiated on farms supports farmers in rural communities, enhancing material quality and sustainable practices.
Collaborations with farmers improve production quality and raise living standards within communities.
The system addresses global environmental and social issues, ensuring access to high-quality raw materials.

Supplier Compliance and Food Safety

Nestlé maintains a rigorous qualification and onboarding process for suppliers, ensuring food safety and compliance.
All suppliers must follow Responsible Sourcing Core Requirements, reinforcing high internal standards and regulations.
Regular audits and inspections are conducted to verify adherence to internal standards and international guidelines.

Training and Food Safety Practices

Employees involved in food safety undergo comprehensive training on Good Manufacturing Practices (GMP) and internal standards.
Training covers all aspects of the manufacturing process and is updated regularly as part of an internal audit program.
New employees receive safety training, followed by assessments to ensure understanding of safety protocols.

Hazard Analysis and Critical Control Points

HACCP system is employed to proactively identify and control food safety hazards throughout the production process.
Plans and systems are verified by external certification bodies, aligning with ISO 22000:2005/ISO 22002-1 standards.
More than 4.1 million analytical tests were conducted in 2023 for ongoing food safety risk assessment.

Advanced Risk Management

Partnership with external entities to predict and address food safety challenges from environmental and geopolitical events.
Enhanced analytics capabilities in Quality Assurance Centers utilize cutting-edge technologies to assess risks like chemical contaminants.

Consumer Engagement and Services

Products include safety and quality usage information for consumers, promoting safe consumption.
A global consumer services organization enables timely responses to consumer inquiries, fostering engagement and transparency.

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Description

This quiz examines the primary supply chains for meat and palm oil, focusing on performance indicators and employee roles. Understand how these diverse elements contribute to the industry's operations and sustainability efforts.