of coconut traceable in 2019
Coconut is a new addition to our list of priority raw materials in 2019. Throughout 2019, we began mapping the traceability of our supply chain and identifying the key challenges and issues in our supply chain to inform our overall responsible sourcing strategy for coconut.
?*New priority raw material in 2019. Reporting will start in 2021.
Our coconut supply chain
Nestlé purchased approximately 41?000 tonnes of coconut oil and milk and related raw materials in 2019. The coconut we use is sourced from a number of countries, with the bulk of supplies coming from Asia (Sri Lanka, the Philippines and Indonesia) and South America (Brazil).?
Our approach to sourcing coconut sustainably
We are working with suppliers and farmers to seek ever-greater transparency in sourcing coconut and to deliver positive outcomes in the farming areas. As a small buyer of coconut, we are focused on opportunities for industry collaboration on a common, consistent approach across buyers to deliver positive impact at scale and where it is the most needed. Our responsible sourcing approach for coconut will be further defined in 2020, building on the lessons learned from supply chain and issue mapping in 2019.
In order to hold our suppliers and ourselves accountable, as well as driving industry-wide transparency, we have published the list of our coconut supply origins in our supply chain. This list will be updated with further granularity in 2020.
Coconut supply chain risks
Our responsible sourcing journey for coconut is at an early stage. Along with mapping our supply chain, we have mapped the key challenges across coconut origins and, through assessments, are obtaining more granular detail about how apparent they are in different locations. The key challenges identified are:
- Dispersed supply chains making traceability and farmer engagement challenging.?
- Vulnerable livelihoods of smallholder landowners related to:
- Low yields and aging trees.
- Low incomes.?
- Lack of access to basic services (sanitation, clean water, sanitation, schooling).?
- Lack of information about markets.
- Climate change and extreme weather events.
- Low productivity caused by:
- Aging trees.?
- Limited technical (good agricultural practices) and financial knowledge.
- Climate change and extreme weather events.?
- Safety in working conditions. ?
These challenges vary from one growing region to another, reinforcing the need for location-specific approaches developed together with local partners.
Our goal is to ensure a continuous supply of coconut originating from responsible sources, where farmers, workers and communities are safe and resilient.?