Nestlé S.A.

"Nestlé's Responsible Sourcing Standards requires Tier 1 suppliers to observe the following standards: "Freedom from Forced, Bonded or Prison Labour [...] Freedom of Association, Collective Bargaining [...] no person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher [...] Recognition and promotion processes and practices are made based on worker performance, without discrimination on gender and with the aim to provide equal opportunities for women empowerment."[...] "The Supplier shall: Operate with dignity, respect and integrity regarding the treatment of its workers: • Any form of psychological, physical, sexual or verbal abuse, intimidation, or harassment is not tolerated."

"We're also participating in projects to help smallholder get RSPO Certification. For example in Chiapas and Tabasco Mexico, the Mexico Palm Oil Holistic Program is a collaborative effort from Nestlé, Pepsico, Oleopalma, RSPO, Proforest, and Femexpalma to support the sustainable development of the Mexican palm oil sector and to help smallholder farmers to get RSPO certification." [...] "During 2021 we continued to fund one smallholder support initiative to support improvement of farmer resilience in Ecuador. [...] They received support in the elaboration and implementation of holistic farm plans, and the project trained 10 technicians from palm companies to expand and improve technical assistance to farmers on sustainability and resilience matters. [...] We also supported smallholders via Independent Smallholder RSPO Book & Claim Credits. In 2021, Nestlé purchased 11,673 RSPO credits from independent smallholders (10,769 for CPO production, and 904 for Palm Kernel Oil), up from 10,000 purchased in 2020. To the extent that Nestlé uses RSPO Book & Claim credits to deliver on RSPO commitments, we aim maximize the opportunity to buy these credits from independent smallholders, to support their journey to sustainable palm oil production."

"The Supplier shall • Commit to providing equal employment opportunities and promotion and not discriminate in employment, including hiring, compensation, advancement, discipline, termination or retirement, or on the basis of gender [...] Respect of Gender and Woman Empowerment PrincipleFarmers shall• recognize the unique position and needs of women, and that women are oftenimpacted by working conditions differently than men, and that interventions willtherefore need to be designed and operated accordingly.Important• respect the rights to women on farm and ensure that any work assigned towomen is properly remunerated and recognized as for men. UrgentFor raw and packaging materials (of agriculturalorigin) origin is defined as the location of theprimary production or harvest of the materials,i.e. forest, land or sea. For services, it is the entityexecuting the creation or the physical delivery ofthe services contracted by Nestlé (cf. outsourcingbetween agencies)."

"Through initiatives and sessions, we work with NGOs, rights holders and others to further develop our policies and procedures and improve our performance on the ground. As such, we are committed to engaging with stakeholders who are or could be affected by our business activities, including local communities. In addition to our own internal and external grievance mechanisms (Integrity Reporting System and Tell Us), we collaborate with business partners as well as local NGOs and authorities to improve access to remedy in our upstream supply chain, including the development of third-party non-judicial mechanisms such as worker helplines."

"Respect for human rights is non-negotiable across our supply chains. We are dedicated to upholding these rights for everyone who works for and with us. Our Responsible Sourcing Standard includes requirements related to the respect of human rights, including labor rights, land rights and Indigenous rights. Respect for community land rights is important to address deforestation risks. As such, we require our suppliers to demonstrate a legal entitlement to the use of land, with official documents stating the physical farm boundaries as well as to ensure that agricultural and forestry developments and activities on local peoples’ land are subject to the free, prior and informed consent (FPIC) of the affected local communities, including indigenous peoples, with or without governmental consent for expansion. Compliance with these requirements are assessed through the farm assessments conducted by our partners. Where gaps are identified, we work with suppliers to develop and implement action plans to close these gaps. We are also piloting a forest-risk mapping exercise that will embed risks related to local and indigenous communities."

"Including specific commitments on land, natural resources and human rights in our Responsible Sourcing Guideline for high risk commodities, including provisions by suppliers to ensure that: – They have a zero tolerance for land grabs. – They engage with and seek the support of those who could be affected by investment decisions prior to decisions being taken and respond to their contributions. They take into account existing power imbalances and ensuring active, free, effective, meaningful and informed participation of affected individuals and groups. – They seek free, prior, and informed consent with regard to the rights of Indigenous Peoples. • Working with suppliers to implement actions to improve land rights wherever gaps are identified. • Including respect for land rights in our due diligence review in relation to acquisitions and joint ventures that involve land acquisition."

In their 2021 CDP report, Nestle report a total of 455,000 tons of palm oil "As of December 2020, 70% of the palm oil that we buy was assessed as deforestation free. [...] We continue to work with smallholder farmers and large suppliers alike to reach our 100% deforestation-free target by 2022. To achieve our target by 2022 we will continue to use a combination of tools, like supply chain mapping, certification, satellite monitoring, and on-the-ground verification [....] We continue to increase our sourcing of RSPO certified palm oil, with a preference for physically segregated RSPO SG certification, towards 100% RSPO certification by 2023." [...] "423 kilotonnesof palm oil assessed as deforestation-free in 2021"

"Our global oils buyers based in Malaysia, Panama, and Switzerland track and monitor the origin of our palm oil via supplier Traceability Declaration Documents used to collect traceability data to plantation with our external partner Earthworm Foundation"[...]"We ask all our suppliers to map their entire supply chain all the way to plantation, including for third-party mills. This information can be challenging to obtain. However since we started using the granular risk information from Starling satellite monitoring to have very specific engagements with our suppliers around deforestation alerts, we have managed to get more commitments from suppliers to achieve full traceability to plantation. At the same time, engagement with suppliers has revealed gaps in tools to achieve traceability to plantation. This is why we funded Earthworm Foundation to develop a targeted approach to engage suppliers and mills on traceability to plantation and corresponding deforestation verification. We will roll this out by the end of 2020. - We are also advocating in industry associations and multi-stakeholder platforms we are participating in for more palm oil buyers to ask for traceability to plantation and to find ways to enable and incentivize small and medium-size mills to implement FFB control systems and commit not to accept FFB from unknown origin."

"Our category-specific requirements for palm oil require our suppliers to source oil from origins that: - Are not areas cleared of natural forest after December 31, 2015"

"We are the Consumer Goods Manufacturer representative of the RSPO Assurance Standing Committee as its, and actively participated in the various consultation processes around RSPO’s Smallholder Standard and Shared Responsibility principles. We're also participating in projects to help smallholder get RSPO Certification. For example in Chiapas and Tabasco Mexico, the Mexico Palm Oil Holistic Program is a collaborative effort from Nestlé, Pepsico, Oleopalma, RSPO, Proforest, and Femexpalma to support the sustainable development of the Mexican palm oil sector and to help smallholder farmers to get RSPO certification [...] To address the key challenges in our supply palm oil supply chains and be able to achieve our no deforestation commitment, we cannot work alone, and therefore we continue to increase our collaboration with multi-stakeholder initiatives to achieve lasting change. This includes the Tropical Forest Alliance, RSPO, HCSA Working Group, national sustainable palm oil roundtables, the Palm Oil Collaboration Group, the Palm Oil Transparency Coalition, RADD+ consortium. Nestlé joined the HCSA Steering Group in October 2018 with the ambition to help make the HCS Approach, which is a core part of the Nestlé Responsible Sourcing Standard, the norm in tropical forest conservation. In 2020, we continued to fund several initiatives to advance this ambition. For example, following the launch of our 2019 landscape-scale HCSA trials with Earthworm Foundation over a 240,000-hectare landscape, we initiated further efforts to apply HCSA at scale"

"To take just two examples: in Indonesia we work alongside the Earthworm Foundation and several other companies to support landscape initiatives such as in Aceh Tamiang, where multi-stakeholder sustainable land use planning and support for local communities are being used to help end deforestation. "

"The agile assessment toolkit informs the tools we deploy to address deforestation risks with suppliers and stakeholders, providing fact-based evidence to drive real change on the ground."[...]"Volumes have been assessed through on-the-ground assessments, such as HCSA and HCV assessments, by our partners and/or through certification such as RTRS and Proterra (soy), FSC and PEFC (paper), and RSPO (palm oil)."[...]"Satellite monitoring: Monitor deforestation risks in our supply chains in real time"[...]"Using a variety of desk-based sources and tools, Nestlé works with partners to assess the level of deforestation risk in a region. Publicly available data and literature, supplier questionnaires, information from satellite monitoring and tools like Maplecroft help to differentiate high-risk from low-risk regions and prioritize suppliers for on-the ground assessments."

"Requirements for our suppliers: Respect the Nestlé Responsible Sourcing Standard: Comply with local laws and regulations [...] We work together with our direct suppliers to continuously improve the sustainability practices of our upstream supply chain, all the way up to smallholder farmers. We also work with partners to conduct supplier assessments and identify gaps. This informs the development of action plans with defined milestones and deadlines to act upon risks and identified opportunities for improvement."

"We encourage you to 'Speak Up' if you become aware of incidents of harassment or discrimination, abuse of power, mobbing/bullying, fraud, corruption, conflict of interest, or any other behaviors contrary to our Corporate Business Principles, Code of Business Conduct or our values rooted in respect. We will do what is necessary to ensure our Company is managed in line with our ethical commitments and you can help us achieve this goal."[...]"Hence, 'Speak Up', our non-compliance reporting system, provides all Nestlé employees and all other external stakeholders with a dedicated communication channel for reporting non-compliance concerns."

Nestle reports in their 2020 RSPO ACOP report their total volume of palm oil and the volume that was certified and non-certified.

"Building on ten years of experience in addressing labor rights challenges in the palm oil sector, we developed, together with our partner Verité, a Program Assurance Framework to increase the reach and impact of our labor rights work. This builds on the Verité Palm Oil Producers’ Toolkit on Labor Rights, which we have supported."

Nestle provides a list of direct and indirect tier 1 suppliers with the mill company name, mill name and country. "The mills association with Tier 1 suppliers does not indicate ownership of the mills by that Tier 1 supplier. The mill owner is indicated by the “Mill Company Name”. The Tier 1 supplier relationship to the mill is through direct or indirect sourcing, except in the cases where the Mill Company Name is the same as the Supplier name"

"We partnered with Airbus and Earthworm Foundation to implement Starling, a satellite-based service to monitor 100% of our global palm oil supply chains. Starling provides highly detailed optical and radar images of land across huge areas. We monitor over 8 000 farm boundaries, as well as the area surrounding more than 1 700 mills, to determine whether origins are verifiably deforestation-free and whether further supplier engagement and investigation are needed. Using data gathered through Starling, we have created a palm oil transparency dashboard to update stakeholders on our progress in achieving deforestation-free palm oil, and to share our learnings."

"Deforestation linked to the expansion of palm oil production continues to be a reality. In 2021, there were almost 97,000 Starling alerts globally for deforestation within 50km of the mills we source from – representing 435,000 hectares of forest loss. Note that an alert does mean that deforestation occurred within our supply chain or was linked to palm oil. This is why we engage with our direct suppliers to investigate."

" If a mill / plantation in our supply chain is found to be connected to deforestation, we suspend it and start engaging them as well as our direct supplier. The mill/plantation will re-enter our supply chain only if it has stopped deforesting, placed a moratorium on clearance, developed and implemented an NDPE policy and plan, and developed a remediation plan. If no action is taken it will remain excluded from our supply chain. 14 upstream supply chain companies were removed from our palm oil supply chain since 2018. This is publicly disclosed on our website and the list was updated in 2020."

"14 upstream supply chain companies were removed from our palm oil supply chain since 2018. This is publicly disclosed on our website and the list was updated in 2020." [...] "Upstream supply chain companies we no longer work with: DTK Opport- unity, Korindo Group, Indonusa, PACIFIC INTER-LINK (HSA), PTT Green Plc, Salim Group/Indofood, Noble, Posco Daewoo, Cilandri Anky Abadi, PT. Indo Sawit Perkasa, PT. Kallista Alam, PT. Laot Bangkok, PT. Surya Panen Subur, Samling "

"Nestlé's Responsible Sourcing Standards requires Tier 1 suppliers to observe the following standards: "Freedom from Forced, Bonded or Prison Labour [...] Freedom of Association, Collective Bargaining [...] no person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher [...] Recognition and promotion processes and practices are made based on worker performance, without discrimination on gender and with the aim to provide equal opportunities for women empowerment."[...] "The Supplier shall: Operate with dignity, respect and integrity regarding the treatment of its workers: • Any form of psychological, physical, sexual or verbal abuse, intimidation, or harassment is not tolerated."

"While smallholders are only a small proportion of our pulp and paper supply chain, in 2020 Nestle supported a project with pulp & paper smallholders through the Earthworm Foundation Rurality initiative. In this context, we engaged with smallholder acacia farmers supplying a chip mill in our pulp and paper supply chain in Bình Thuận Province, Vietnam. In 2018, Earthworm Foundation conducted an initial diagnostic exercise to understand the supply chain, conditions on the ground and opportunities to improve smallholder resilience. This identified challenges including poor-quality seedlings and agricultural practices leading to low productivity, lack of awareness of pest and disease control and health and safety, limited options for income diversification and declining soil fertility due to poor land management. To date, the project has achieved the following: - trained a total of 453 farmers through group and individual training on best management practices - supported farmers’ plant a total of 263,000 high quality seedlings (100ha), up from 44,000 in 2019, a five-fold increase in just one year - Based on research data from the Forest Science Institute of South Vietnam, Rurality expect farmers to increase yield by 10% at the time of harvest, increasing the proportion of the plantation that can be sold as saw logs, increasing gross profit by an estimated 20% - After trial in 2019, successful scale up was achieved in 2020: key part of planting design was to incorporate species that offer additional livelihood benefits for farmers. Following was achieved in 2020; 76 farmers planted 4,642 bamboo seedlings, 63 farmers planted 28,080 Trichanthera gigantea, 60 farmers planted 93,000 vetvier - Initiated an “animal pass-on” model using rabbits with the objective of enabling farmers to earn additional income using forage harvested from the Trichanthera and vetiver. The model was introduced in the last quarter of the year, and subsequently the first ‘rabbit pass-on’ will not happen until 2021. - In 2020, supported two additional livelihood activities including an eel raising model and a watermelon intercropping model. In 2021 more demonstrations will be organized. - Supported 88 farmers in restoration process of degraded waterways in Ham Tan District. Supported to plant 5,642 trees, 28,080 shrubs and 97,642 bamboo cuttings and vetiver slips. Will be scaled in 2021."

"The Supplier shall • Commit to providing equal employment opportunities and promotion and not discriminate in employment, including hiring, compensation, advancement, discipline, termination or retirement, or on the basis of gender [...] Respect of Gender and Woman Empowerment PrincipleFarmers shall• recognize the unique position and needs of women, and that women are oftenimpacted by working conditions differently than men, and that interventions willtherefore need to be designed and operated accordingly.Important• respect the rights to women on farm and ensure that any work assigned towomen is properly remunerated and recognized as for men. UrgentFor raw and packaging materials (of agriculturalorigin) origin is defined as the location of theprimary production or harvest of the materials,i.e. forest, land or sea. For services, it is the entityexecuting the creation or the physical delivery ofthe services contracted by Nestlé (cf. outsourcingbetween agencies)."

"Through initiatives and sessions, we work with NGOs, rights holders and others to further develop our policies and procedures and improve our performance on the ground. As such, we are committed to engaging with stakeholders who are or could be affected by our business activities, including local communities. In addition to our own internal and external grievance mechanisms (Integrity Reporting System and Tell Us), we collaborate with business partners as well as local NGOs and authorities to improve access to remedy in our upstream supply chain, including the development of third-party non-judicial mechanisms such as worker helplines"

"The Standard sets forth requirements for upstream supply chain third parties, including Nestlé sourcing teams, through to first tier suppliers (and all affiliates), sub tier suppliers (intermediaries) and origin service providers, farms or sea based raw material production defined as origin [...] • Agricultural and forestry developments and activities on local peoples’ land are subject to the free, prior and informed consent [FPIC] of the affected local communities, including indigenous peoples, with or without governmental consent for expansion" [...] ""Social conflicts around land use and land rights are frequent in Brazil and throughout Latin America. We support Earthworm’s Free, Prior and Informed Consent (FPIC) training program, which aims to address expertise gaps in this field. The program, in conjunction with 3M, is establishing a set of practices in the private sector that protect community rights and prevent social conflicts by creating shared values between forestry companies and local communities, including indigenous peoples.We also have a five-year partnership with FSC Brazil and the Cooperative Program for Forest Certification within the Forestry Research Institute of the University of São Paulo. Through the partnership, we will promote and improve social management practices, including the development of FPIC training"

"Including specific commitments on land, natural resources and human rights in our Responsible Sourcing Guideline for high risk commodities, including provisions by suppliers to ensure that: – They have a zero tolerance for land grabs. – They engage with and seek the support of those who could be affected by investment decisions prior to decisions being taken and respond to their contributions. They take into account existing power imbalances and ensuring active, free, effective, meaningful and informed participation of affected individuals and groups. – They seek free, prior, and informed consent with regard to the rights of Indigenous Peoples. • Working with suppliers to implement actions to improve land rights wherever gaps are identified. • Including respect for land rights in our due diligence review in relation to acquisitions and joint ventures that involve land acquisition."

"98 % (1 238 kilotonnes) of pulp and paper assessed as deforestation-free in 2021" [...] "Our volumes are considered deforestation free in the following cases: a. Classified as low risk of deforestation by relevant literature. b. Assessed through on-the-ground assessments (e.g. High Conservation Value/Habitat deforestation by partners (e.g. Earthworm Foundation). c. Certified by FSC or PEFC. d. Recycled or recovered fiber traceable to mill and assessed as low risk."

"98 % (1 238 kilotonnes) of pulp and paper assessed as deforestation-free in 2021" [...] "Our volumes are considered deforestation free in the following cases: a. Classified as low risk of deforestation by relevant literature. b. Assessed through on-the-ground assessments (e.g. High Conservation Value/Habitat deforestation by partners (e.g. Earthworm Foundation). c. Certified by FSC or PEFC. d. Recycled or recovered fiber traceable to mill and assessed as low risk."

"Our no-deforestation commitments also motivate us to address forest degradation and the loss of key forest attributes, such as biodiversity and carbon storage. These can lead to fragmentation and, ultimately, deforestation.In practice, this means engaging supply chain partners to understand their operations and potential expansion plans. It also means collaborating to find a balance between production and protection. These efforts allow us to support healthy and productive forest landscapes in line with our Responsible Sourcing Standard, Net Zero Roadmap and Forest Positive strategy, which goes beyond tackling deforestation."

In the 2021 Forests CDP Report it states: Forest risk commodity Timber products Cutoff date: 2015

"Nestlé plays an active role in the Forest Positive Coalition of Action and the related Commodity Working Groups for soy, pulp and paper, palm oil and beef."

We are also partnering with Airbus and Earthworm Foundation to use Starling to identify forest loss in our sourcing landscapes. It will also help us understand whether this is resulting in the deforestation and degradation of High Carbon Value (HCV) forests. Following the development of base maps, we undertook field missions in 2019 to gauge the accuracy of the data. We have since used this technology to analyze changes in forest cover across four key priority landscapes: Northwest Russia; South-eastern U.S.; British Columbia, Canada; and Sumatra, Indonesia. This increased visibility allows us to observe changes in real-time. The information has informed more targeted discussions with suppliers on forest cover change alerts and supported the development of forest-positive interventions and solutions with them and other stakeholders.We use Starling data from these four landscapes to map trends in forest biomass and carbon to support future resource use planning decisions. Our commitment to net zero emissions by 2050 will also push us to seek new innovations to inset emissions through restoration and conservation activities in these landscapes and other forest sources with our pulp and paper suppliers.

"Complying with forest regulations and/or mandatory standards is an integral part of our Responsible Sourcing Standard. The Standard is an integral part of all of our purchase orders and supply contracts and is shared with our suppliers, who we expect to follow its requirements, including compliance with forest regulations. To ensure legal compliance with forest regulations and/or mandatory standards, our implementation partners, like Proforest and Earthworm Foundation, start by carrying out a deskbased risk assessment of our sourcing regions and our suppliers based on supplier questionnaires, literature review and information from satellite monitoring tools. Supplier questionnaires include questions to assess compliance with local regulation. Following this desk-based risk assessment process, suppliers are identified for on-the-ground assessments based on volumes and risk profiles. Our on-the-ground assessments to verify no deforestation / no conversion are based on the HCS/HCV methodology. We also accept certifications like RTRS, FSC/PEFC and RSPO that integrate legal requirements into their standards, against which suppliers are audited for compliance. We are confident that all suppliers assessed as posing a non-compliance risk have been subject to legal compliance checks, either through certification or an on-the-ground assessment."

"We encourage you to 'Speak Up' if you become aware of incidents of harassment or discrimination, abuse of power, mobbing/bullying, fraud, corruption, conflict of interest, or any other behaviors contrary to our Corporate Business Principles, Code of Business Conduct or our values rooted in respect. We will do what is necessary to ensure our Company is managed in line with our ethical commitments and you can help us achieve this goal."[...]"Hence, 'Speak Up', our non-compliance reporting system, provides all Nestlé employees and all other external stakeholders with a dedicated communication channel for reporting non-compliance concerns."

"In the CDP Forests 2021 report Nestle report having at least 229,819 metric tonnes of FSC and PEFC certified material. In the appendix to the 2020 sustainability report they report using 1154kilotons of pulp and paper. It is unclear what the total volume of compliant and non-compliant metric tonnes is as FSC/PEFC certification not the sole way of meeting the no-conversion commitment."[...]"98 %(1 238 kilotonnes) of pulp and paper assessed as deforestation-free in 2021"

"Upon Nestlé request, suppliers, including intermediaries and farms, shall make visible the internal program they have in place demonstrating continuous improvement or fulfilment against the Standard’s requirements or its equivalence"

"Since 2018, we have published a list of our direct suppliers and related pulp mills in our upstream supply chain. Doing so helps to hold our suppliers (and ourselves) accountable while driving industry-wide transparency and allows us focus on supplier progress and tackling the most relevant supply chain challenges. We have seen others following suit, which is encouraging; however, more effort is still needed within our sector." [...] "We source almost 85% of our pulp and paper from other countries. These are: Austria, Belarus, Belgium, Canada, Chile, China, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, New Zealand, Norway, Poland, Portugal, Russia, Slovakia, Slovenia, South Africa, Spain, Sweden, Taiwan, Ukraine, UK, Uruguay, USA. Among those our biggest sourcing country is USA with 55.30% of total sourcing volume, followed by Chile (7.88%), Sweden (5.50%) and Russia (3.54%) We know the % volume from the annual traceability exercise where our suppliers provide traceability data in combination with our procurement data. We receive country of origin information and, where possible, regional information from pulp & paper mills through traceability data sent to us by suppliers."

"We use a combination of tools to verify our no deforestation commitment, starting with supply chain mapping. Our volumes are considered deforestation free in the following cases: a. Classified as low risk of deforestation by relevant literature. b. Assessed through on-the-ground assessments (e.g. High Conservation Value/Habitat deforestation by partners (e.g. Earthworm Foundation). c. Certified by FSC or PEFC. d. Recycled or recovered fiber traceable to mill and assessed as low risk.

"Addressing the social and environmental issues, including deforestation, in our agricultural supply chains, requires working closely with our direct suppliers, with whom we have a contractual relationship and who are contractually responsible for ensuring that their suppliers and contractors abide by our Responsible Sourcing Standard (RSS). We verify compliance with the Standard by all our direct suppliers through independent audits carried out by audit firms accredited by Nestlé. These audits follow the SMETA Best Practice Guidance. If non-compliance issues or gaps are found, a timebound action plan is developed and implemented by the supplier. The implementation of this plan will be later verified by the auditor. In case a supplier refuses to undergo an audit or to close gaps, we may terminate the business relationship. We also collaborate with them to ensure traceability of our raw materials to its origins. We work closely with suppliers to create a full picture of their supply chains and sourcing locations. We repeat this exercise every year, at every tier in the supply chain with the help of external partners and service providers. This information is then used to carry out farm assessments against our RSS with partner organizations, which may lead to the development of time-bound action plans to address the gaps and show progress year on year. In many cases, issues are identified that require long-term, tailored interventions to tackle their root causes for greater impact. This is where we engage directly with our suppliers and sites in our supply chain, including engagement time-bound roadmaps and support targeted transformation activities. These include: - Piloting SupplyShift to help us map our supply chain + collect and analyze data to guide and drive our supplier engagement and purchasing decisions to meet our commitments - Using Starling data to engage our suppliers operating in the Dvinsky region, an Intact Forest Landscape (IFL) in Russia. We initiated a Starling pilot with our supplier to monitor the voluntary moratorium area of the remaining IFL. This helped us to remain engaged, which is more critical than ever, given that there was a breach to the Dvina-Pinega Reserve moratium in 2019. We're working with our suppliers and others to ensure that it does not happen again. We pay premiums for responsibly sourced/ certified pulp & paper."

"Nestlé's Responsible Sourcing Standards requires Tier 1 suppliers to observe the following standards: "Freedom from Forced, Bonded or Prison Labour [...] Freedom of Association, Collective Bargaining [...] no person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher [...] Recognition and promotion processes and practices are made based on worker performance, without discrimination on gender and with the aim to provide equal opportunities for women empowerment."[...] "The Supplier shall: Operate with dignity, respect and integrity regarding the treatment of its workers: • Any form of psychological, physical, sexual or verbal abuse, intimidation, or harassment is not tolerated."

"The soy supply chain is mainly made of large soy farms, especially in the USA which is our biggest sourcing country (more than 50% of our sourcing) as well as in Brazil and Argentina. As such, we have not prioritized working directly with smallholders to address deforestation risks. Instead we have chosen to focus on specific geographies (Brazilian Cerrado and the Argentinian Chaco biomes) where deforestation and conversion of natural habitats is higher. We're doing so by engaging directly with our direct suppliers and through collaboration platforms such as the CGF Forest Positive working group, where engagement with soy traders coalition (SCF) is also ongoing."

"The Supplier shall • Commit to providing equal employment opportunities and promotion and not discriminate in employment, including hiring, compensation, advancement, discipline, termination or retirement, or on the basis of gender [...] Respect of Gender and Woman Empowerment PrincipleFarmers shall• recognize the unique position and needs of women, and that women are oftenimpacted by working conditions differently than men, and that interventions willtherefore need to be designed and operated accordingly.Important• respect the rights to women on farm and ensure that any work assigned towomen is properly remunerated and recognized as for men. UrgentFor raw and packaging materials (of agriculturalorigin) origin is defined as the location of theprimary production or harvest of the materials,i.e. forest, land or sea. For services, it is the entityexecuting the creation or the physical delivery ofthe services contracted by Nestlé (cf. outsourcingbetween agencies)."

"Through initiatives and sessions, we work with NGOs, rights holders and others to further develop our policies and procedures and improve our performance on the ground. As such, we are committed to engaging with stakeholders who are or could be affected by our business activities, including local communities. In addition to our own internal and external grievance mechanisms (Integrity Reporting System and Tell Us), we collaborate with business partners as well as local NGOs and authorities to improve access to remedy in our upstream supply chain, including the development of third-party non-judicial mechanisms such as worker helplines"

"The Standard sets forth requirements for upstream supply chain third parties, including Nestlé sourcing teams, through to first tier suppliers (and all affiliates), sub tier suppliers (intermediaries) and origin service providers, farms or sea based raw material production defined as origin"[...]"• Agricultural and forestry developments and activities on local peoples’ land are subject to the free, prior and informed consent [FPIC] of the affected local communities, including indigenous peoples, with or without governmental consent for expansion"

"Including specific commitments on land, natural resources and human rights in our Responsible Sourcing Guideline for high risk commodities, including provisions by suppliers to ensure that: – They have a zero tolerance for land grabs. – They engage with and seek the support of those who could be affected by investment decisions prior to decisions being taken and respond to their contributions. They take into account existing power imbalances and ensuring active, free, effective, meaningful and informed participation of affected individuals and groups. – They seek free, prior, and informed consent with regard to the rights of Indigenous Peoples. • Working with suppliers to implement actions to improve land rights wherever gaps are identified. • Including respect for land rights in our due diligence review in relation to acquisitions and joint ventures that involve land acquisition."

"Our traceability efforts have focused on soybean meal so far and in 2020 we achieved 93% traceability for direct soy to crush site. We have started mapping our Soybean oil and Lecithin volumes, but these will remain out of the scope until 2022 [...] 98% (521 kilotonnes) of soya assessed as deforestation free in 2021 this is 98% of their total (560 kilotonnes)

"Soya volumes are considered responsibly sourced when they meet one of the following criteria: a. Have been certified by Roundtable on Responsible Soy (RTRS), GLOBAL Proterra, and any standard benchmarked by FSA Silver level. b. Have been assessed as compliant with Nestlé Responsible Sourcing Standard by Proforest or Control Union. c. From low-risk countries in North America (Canada and USA) and Europe (including Russia). d. From origins where a Responsible Sourcing program is in place (including volumes covered with RTRS regional credits)."

"Beyond our supply chain, we foster collaboration between our programs and landscape initiatives in priority origins to create shared value for soya producers, in order to achieve: The decoupling of soya expansion from the conversion or destruction of natural habitats. The adoption of best practices in soya production"[...]"We understand that nurturing sustainable practices in complex supply chains, such as that for soya, poses challenges that no one company can solve alone. Our approach to sustainable sourcing includes actions within and beyond our supply chain, including engaging with suppliers and key stakeholders in the soya sector and its production landscapes."

"Nestlé made a no-deforestation commitment. Our Responsible Sourcing Standard is the tool that operationalizes our commitment. It sets forth requirements for upstream supply chain third parties, including our Procurement teams, through to first-tier suppliers (and affiliates), sub-tier suppliers and origin service providers, farms or sea-based raw material production defined as origin. Our no-deforestation commitment is global and includes: 1. Not expanding or producing on: • Areas converted from High Carbon Stock forests and habitat such as peatland, wetlands, savannas after 31st December 2015, as defined in the HCSA Toolkit."

"As part of the Consumer Goods Forum's Forest Positive Coalition of Action Nestlé co-chairs the Soy Working Group and contributed to the development of the Soy Roadmap (pdf, 2.9Mb)"[...]"The Forest Positive Coalition was launched to leverage the collective action of its member companies to use their collective influence to drive and accelerate efforts to remove deforestation from not only their own commodity supply chains, but across their suppliers’ entire supply base."[...]"Building on the progress made by other initiatives in the soy sector, the Soy Working Group will focus on actions where members’ collaboration can add the most value towards a forest positive sector"

"In 2020 we continued to work with The Nature Conservancy (TNC) on its Regenerative Ranching & Agriculture (R2A) strategy across Latin America to drive transformational change in food production while restoring natural systems. It brings together governments, companies and producers to implement science-based practices, methods and policies that drive regenerative agriculture, forest restoration and the protection of environmental resources and services at scale. In 2020, work included developing a systems approach for regenerative ranching and agriculture for the Brazilian Cerrado and fostering multi-stakeholder cooperation for regenerative practices in Argentina’s soy and beef sectors. Local Nestlé agricultural experts attended, and contributed to, workshops in Colombia and Brazil. Each workshop convened over 30 relevant stakeholders from different sectors to identify systems-level interventions. They generated ideas on agricultural norms, business models and public policy to facilitate the development of landscapes through sustainable interventions. Based on this, TNC created three-year workplans for the landscapes."

"The agile assessment toolkit informs the tools we deploy to address deforestation risks with suppliers and stakeholders, providing fact-based evidence to drive real change on the ground."[...]"Volumes have been assessed through on-the-ground assessments, such as HCSA and HCV assessments, by our partners and/or through certification such as RTRS and Proterra (soy), FSC and PEFC (paper), and RSPO (palm oil)."[...]"Satellite monitoring: Monitor deforestation risks in our supply chains in real time"[...]"Using a variety of desk-based sources and tools, Nestlé works with partners to assess the level of deforestation risk in a region. Publicly available data and literature, supplier questionnaires, information from satellite monitoring and tools like Maplecroft help to differentiate high-risk from low-risk regions and prioritize suppliers for on-the ground assessments."

"Complying with forest regulations and/or mandatory standards is an integral part of our Responsible Sourcing Standard. The Standard is an integral part of all of our purchase orders and supply contracts and is share with our suppliers and expect them to follow its requirements, including compliance with forest regulations. To ensure legal compliance with forest regulations and/or mandatory standards, our implementation partners, like Proforest and Earthworm Foundation, start by carrying out a deskbased risk assessment of our sourcing regions and our suppliers based on supplier questionnaires, literature review and information from satellite monitoring tools. Supplier questionnaires include questions related to compliance with local regulation. Following this desk-based risk assessment process, suppliers are identified based on volumes and risk profiles for on-the-ground assessments. Our on-the-ground assessments to verify no deforestation / no conversion are based on the HCS/HCV methodology. We also accept certification like RTRS, FSC/PEFC and RSPO that integrate legal requirements.We are confident that all suppliers assessed as posing a non-compliance risk have been subject to legal compliance checks, either through certification or an on-the-ground assessment"

"We encourage you to 'Speak Up' if you become aware of incidents of harassment or discrimination, abuse of power, mobbing/bullying, fraud, corruption, conflict of interest, or any other behaviors contrary to our Corporate Business Principles, Code of Business Conduct or our values rooted in respect. We will do what is necessary to ensure our Company is managed in line with our ethical commitments and you can help us achieve this goal."[...]"Hence, 'Speak Up', our non-compliance reporting system, provides all Nestlé employees and all other external stakeholders with a dedicated communication channel for reporting non-compliance concerns."

In their 2021 CDP Nestle report their full commodity production/consumption data for soy as 560 kilotonnes. 98% of this (521 kilotonnes) has been assessed as deforestation-free in 2021.

"Upon Nestlé request, suppliers, including intermediaries and farms, shall make visible the internal program they have in place demonstrating continuous improvement or fulfilment against the Standard’s requirements or its equivalence"

"To hold our suppliers and ourselves accountable and drive industry-wide transparency, we have published the list of our soya suppliers and their crush sites in our supply chain (pdf, 400Kb), along with their countries of origin. [...] Nestlé supply chain disclosure: soy - Snapshot: December 2019 Published: June 2020"

"Addressing the social and environmental risks, including deforestation, in our agricultural supply chains, requires working closely with our 124 direct suppliers, with whom we have a contractual relationship and who are contractually obliged to ensure that their suppliers abide by our Responsible Sourcing Standard (RSS). We verify compliance with the Standard by all our direct suppliers through independent audits carried out by audit firms accredited by Nestlé. These audits follow the SMETA Best Practice Guidance. If non-compliance gaps are found, a time-bound action plan is developed and implemented by the supplier. Implementation is verified by the auditor. In case a supplier refuses to undergo an audit or to close gaps, we may terminate the business relationship. One of the key actions to continuously increase transparency within our own soya supply chain is engagement with suppliers to gradually map where the soya we source comes from. With Proforest, we developed an approach merging geographical risk analyses with the design of a scorecard for suppliers. For the spatial analysis, we focused on Brazil to develop risk maps at municipality scale, considering publicly available information about deforestation, protected areas, land and water conflicts, legal compliance and forced labor."

"Addressing the social and environmental risks, including deforestation, in our agricultural supply chains, requires working closely with our 124 direct suppliers, with whom we have a contractual relationship and who are contractually obliged to ensure that their suppliers abide by our Responsible Sourcing Standard (RSS). We verify compliance with the Standard by all our direct suppliers through independent audits carried out by audit firms accredited by Nestlé. These audits follow the SMETA Best Practice Guidance. If non-compliance gaps are found, a time-bound action plan is developed and implemented by the supplier. Implementation is verified by the auditor. In case a supplier refuses to undergo an audit or to close gaps, we may terminate the business relationship. One of the key actions to continuously increase transparency within our own soya supply chain is engagement with suppliers to gradually map where the soya we source comes from"

"Nestlé's Responsible Sourcing Standards requires Tier 1 suppliers to observe the following standards: "Freedom from Forced, Bonded or Prison Labour [...] Freedom of Association, Collective Bargaining [...] no person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher [...] Recognition and promotion processes and practices are made based on worker performance, without discrimination on gender and with the aim to provide equal opportunities for women empowerment."[...] "The Supplier shall: Operate with dignity, respect and integrity regarding the treatment of its workers: • Any form of psychological, physical, sexual or verbal abuse, intimidation, or harassment is not tolerated."

"The Supplier shall • Commit to providing equal employment opportunities and promotion and not discriminate in employment, including hiring, compensation, advancement, discipline, termination or retirement, or on the basis of gender [...] Respect of Gender and Woman Empowerment PrincipleFarmers shall• recognize the unique position and needs of women, and that women are oftenimpacted by working conditions differently than men, and that interventions willtherefore need to be designed and operated accordingly.Important• respect the rights to women on farm and ensure that any work assigned towomen is properly remunerated and recognized as for men. UrgentFor raw and packaging materials (of agriculturalorigin) origin is defined as the location of theprimary production or harvest of the materials,i.e. forest, land or sea. For services, it is the entityexecuting the creation or the physical delivery ofthe services contracted by Nestlé (cf. outsourcingbetween agencies)."

"Through initiatives and sessions, we work with NGOs, rights holders and others to further develop our policies and procedures and improve our performance on the ground. As such, we are committed to engaging with stakeholders who are or could be affected by our business activities, including local communities. In addition to our own internal and external grievance mechanisms (Integrity Reporting System and Tell Us), we collaborate with business partners as well as local NGOs and authorities to improve access to remedy in our upstream supply chain, including the development of third-party non-judicial mechanisms such as worker helplines"

"The Standard sets forth requirements for upstream supply chain third parties, including Nestlé sourcing teams, through to first tier suppliers (and all affiliates), sub tier suppliers (intermediaries) and origin service providers, farms or sea based raw material production defined as origin"[...]"• Agricultural and forestry developments and activities on local peoples’ land are subject to the free, prior and informed consent [FPIC] of the affected local communities, including indigenous peoples, with or without governmental consent for expansion"

"Including specific commitments on land, natural resources and human rights in our Responsible Sourcing Guideline for high risk commodities, including provisions by suppliers to ensure that: – They have a zero tolerance for land grabs. – They engage with and seek the support of those who could be affected by investment decisions prior to decisions being taken and respond to their contributions. They take into account existing power imbalances and ensuring active, free, effective, meaningful and informed participation of affected individuals and groups. – They seek free, prior, and informed consent with regard to the rights of Indigenous Peoples. • Working with suppliers to implement actions to improve land rights wherever gaps are identified. • Including respect for land rights in our due diligence review in relation to acquisitions and joint ventures that involve land acquisition."

"99 %(243 kilotonnes) of meat assessed as deforestation-free"

Nestle state in their CDP report that they trace back to the Slaughterhouse for countries at high risk but that they do conduct farm level audits - "Traceability is key for implementing our no deforestation commitment. We use this information to assess origins at risk of deforestation and monitor our suppliers in these origins. Approach: We work closely with suppliers to create a full picture of their supply chains and sourcing locations. We repeat this exercise every year, at every tier in the supply chain with the help of external partners and service providers, such as SGS. Our global buyers based in Malaysia, Panama, and Switzerland track and monitor the origin of our meat via supplier Traceability Declaration Documents used to collect traceability data to country of harvest . Target: We committed to achieving 93% traceability for meat by the end of 2020 and actually achieved 96%, exceeding our target. We also started work with our partner Proforest to carry out the traceability of our meat by-products supply chain in 2019 and are just completing this exercise [...] As of end of December 2020, 98% of the meat we buy for our Food Business (excluding meat byproducts) was assessed as deforestation-free using traceability to no / low risk location and SGS audits"

Stated in their CDP 2021 Forests Report - "Forest risk commodity Cattle products Cutoff date = 2015"

"CGF engages members to address key challenges facing the industry together. In 2020, the CGF launched the Forest Positive Coalition of Action, consisting of 20 member companies committed to moving efficiently and quickly towards a forest positive future. Nestlé plays an active role in the Forest Positive Coalition of Action and the related Commodity Working Groups for soy, pulp and paper, palm oil and beef."[...]

"The agile assessment toolkit informs the tools we deploy to address deforestation risks with suppliers and stakeholders, providing fact-based evidence to drive real change on the ground."[...]"Volumes have been assessed through on-the-ground assessments, such as HCSA and HCV assessments, by our partners and/or through certification such as RTRS and Proterra (soy), FSC and PEFC (paper), and RSPO (palm oil)."[...]"Satellite monitoring: Monitor deforestation risks in our supply chains in real time"[...]"Using a variety of desk-based sources and tools, Nestlé works with partners to assess the level of deforestation risk in a region. Publicly available data and literature, supplier questionnaires, information from satellite monitoring and tools like Maplecroft help to differentiate high-risk from low-risk regions and prioritize suppliers for on-the ground assessments."

"Complying with forest regulations and/or mandatory standards is an integral part of our Responsible Sourcing Standard. The Standard is an integral part of all of our purchase orders and supply contracts and is share with our suppliers and expect them to follow its requirements, including compliance with forest regulations. To ensure legal compliance with forest regulations and/or mandatory standards, our implementation partners, like Proforest and Earthworm Foundation, start by carrying out a deskbased risk assessment of our sourcing regions and our suppliers based on supplier questionnaires, literature review and information from satellite monitoring tools. Supplier questionnaires include questions related to compliance with local regulation. Following this desk-based risk assessment process, suppliers are identified based on volumes and risk profiles for on-the-ground assessments. Our on-the-ground assessments to verify no deforestation / no conversion are based on the HCS/HCV methodology. We also accept certification like RTRS, FSC/PEFC and RSPO that integrate legal requirements.We are confident that all suppliers assessed as posing a non-compliance risk have been subject to legal compliance checks, either through certification or an on-the-ground assessment"

"We encourage you to 'Speak Up' if you become aware of incidents of harassment or discrimination, abuse of power, mobbing/bullying, fraud, corruption, conflict of interest, or any other behaviors contrary to our Corporate Business Principles, Code of Business Conduct or our values rooted in respect. We will do what is necessary to ensure our Company is managed in line with our ethical commitments and you can help us achieve this goal."[...]"Hence, 'Speak Up', our non-compliance reporting system, provides all Nestlé employees and all other external stakeholders with a dedicated communication channel for reporting non-compliance concerns."

"Upon Nestlé request, suppliers, including intermediaries and farms, shall make visible the internal program they have in place demonstrating continuous improvement or fulfilment against the Standard’s requirements or its equivalence"

In the document titled 'supply chain disclosure' Nestle disclose the slaughter facility name, location address and location country.

"We use a combination of tools to verify our no deforestation commitment, starting with supply chain mapping and followed by: - Deforestation Risk Index such as Maplecroft - Traceability to Low risk: Volumes that have been traced back to forests/farms/plantations through the use of partnerships with NGOs. Those locations are classified as no or low risk of deforestation by relevant literature. - Verified on the ground by SGS Audit"

"Addressing the social and environmental risks, including deforestation, in our agricultural supply chains, requires working closely with our 161 direct suppliers, with whom we have a contractual relationship and who are contractually obliged to ensure that their suppliers abide by our Responsible Sourcing Standard (RSS). We verify compliance with the Standard by all our direct suppliers through independent audits carried out by audit firms accredited by Nestlé. These audits follow the SMETA Best Practice Guidance. If non-compliance gaps are found, a time-bound action plan is developed and implemented by the supplier. Implementation is verified by the auditor. In case a supplier refuses to undergo an audit or to close gaps, we may terminate the business relationship. We also collaborate with them to ensure traceability of our raw materials to its origins. We work closely with suppliers to create a full picture of their supply chains and sourcing locations. We repeat this exercise bi-annually, at every tier in the supply chain with the help of external partners and service providers"