‘Creating Shared Value’ has acted as a foundational principle for Nestlé to take forward its efforts in nutrition, water and rural development. Nestlé assesses its community impact in initiatives such as the Nestle Cocoa Plan by using international standards of impact measurement.
Creating Shared Value begins with the understanding that for the business to prosper over the long term, the communities we serve must also prosper. Specifically, business will thrive and society will benefit if business can develop products and services that meet societal needs in developed and developing countries. Using resources more efficiently across the entire value chain and improving the conditions for local economic and social development.
As a company, Nestlé works to create shared value in three areas: nutrition – by providing nutritious products that deliver real health benefits to our consumers and by making products more affordable and accessible through innovation and partnerships; water – by advocating for the protection of scarce water resources and by using water more efficiently in manufacturing and distribution processes in ways that also benefit others in the supply chain; rural development – by supporting farmer development in rural areas where the raw materials are grown, securing continued access to quality inputs and strengthening the customer base.
It is believed that measurement helps to build implementation momentum, external accountability, and transparency around all aspects of engagement in society and CSV approach and performance. Performance has been monitored across a wide range of issues for many years, as demonstrated by comprehensive KPIs and the measures attached to initiatives such as the Nestlé Cocoa Plan and the Nescafé Plan.
Where available, internationally recognised systems and standards, such as the Global Reporting Initiative’s G3.1 Framework are used. The GRI helps measure social and CSV impacts in areas where measurement is under-developed, mainly because it’s difficult to prove causality: that is, exactly how corporate actions affect environmental, social and business performance.