Nestlé is internationally acknowledged for sustainability reporting that combines rigor, impact, and strategy. Its annual Creating Shared Value and Sustainability Report is notable for aligning with the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and aligning major corporate commitments directly with executive compensation and materiality processes.
Nestlé’s dashboard tracks a suite of Environmental, Social, and Governance (ESG) Key Performance Indicators (KPIs), for which the company obtains limited assurance from EY, in line with ISAE 3000 standards. Selected KPIs cover deforestation-free sourcing, water risk management, human rights and due diligence (HREDD) throughout the supply chain, and GHG emission reductions across all scopes.
The company deploys toolkits and platform analytics for traceability of commodities, actively mapping risks in origins such as palm oil, pulp, paper, soy, meat, and sugar. Nestlé partners with Earthworm Foundation and Proforest, using platforms like SupplyShift to verify that commodity supplies are not contributing to deforestation. The data-driven approach ensures robust accountability for sustainability targets.
Nestlé’s “produced sustainably” framework requires suppliers to demonstrate compliance with its Responsible Sourcing Standard and human rights protocols. Performance against these standards is disclosed with narrative and visual explanation, supported by case studies in high-risk regions.
Social performance is tracked through community engagement, responsible wages, health programs, and supplier diversity. The company also publishes detailed methodologies for reporting calculations, supporting full transparency and comparability across business units and timeframes.
The Nestlé model is widely cited for its credible verification, clear documentation, and integration of science-based targets into operational and strategic planning. Financial and sustainability reporting cycles are closely linked, making disclosures more decision-useful for investors and stakeholders.
Explore the reports here: https://www.nestle.com/sites/default/files/2024-02/creating-shared-value-sustainability-report-2023-en.pdf
