The Nestlé Policy on Nestlé Commitment on Land & Land ...

1 Policy Mandatory July 2014. Policy Mandatory February 2013. Appendix to The nestl Policy on Environmental Sustainability The nestl Policy on Environmental Sustainability nestl Commitment on Land & Land Rights in Agricultural Supply Chains Agriculture and forestry represent an opportunity and natural resources are increasing in some for rural development and long-term value countries. This is often driven by large-scale creation for farmers, governments and companies commercial land acquisitions that are illegal and/. in the food value chain. Secure rights to land or have an adverse impact on local communities'. and natural resources are an essential element livelihoods3. Sometimes referred to as land grabs, to achieve rural development by helping to these disputes often involve conflicting land reduce uncertainties and to facilitate long term claims and unclear or unprotected underlying land investments by farmers and by public and private rights, and are exacerbated by the inadequate investors.

2 In contrast, poverty, land degradation recognition of customary rights to land and and forest conversion are often rooted in insecure natural resources. land rights. Governments have a duty to protect human It is estimated that 235 million rural households1, rights, including the rights to land and natural affecting 1100 million people worldwide, lack resources. Businesses have to follow national law secure legal rights to land. These households and have a responsibility to respect international depend upon land and natural resources not human rights standards, including those relating only for habitation but, in the vast majority of to rights to land and natural resources. While cases, as their source of income, nutrition, credit businesses cannot make or enforce laws, they and services. Of special note are the 370 million can support governments to do this better, Indigenous Peoples2, many of whose customary and align their strategies and operations with rights to forests and lands are not recognized.

3 In national action plans favouring the responsible addition to these numbers, hundreds of millions of governance of tenure. women live in households where men hold secure Recognising and clarifying rights to land and legal land rights, though they themselves lack natural resources, through an inclusive and them. This is important as when women share in equitable process, is essential for business to the rights to land, farm productivity increases, and assist in the realization of sustainable agricultural more of the family income is invested in children's development. Clarity, security, transparency and nutrition and education. equity regarding land and related rights requires Investments in agriculture improve food that governments lead processes that include all security by increasing agricultural yields, rights-holders. increasing access to markets for small holder nestl therefore believes that effective land producers, raising incomes and increasing rights need to be legally and socially recognised, government tax revenues.

4 Without clearly defined well-defined, enforceable in the short and long- and protected land rights, farmers and investors term, transferable, able to withstand changes in face substantial risks, and poor rural families are at risk of displacement. This is particularly the case with investments that involve land acquisition. 1 Landesa 2 UN data Land acquisition mostly occurs legally and 3 The term livelihood refers to the full range of means without any associated social conflict in many that individuals, families, and communities utilize to make countries. However, the frequency of legal and a living, such as wage-based income, agriculture, fishing, foraging, other natural resource-based livelihoods, petty other, often violent disputes on rights to land trade, and bartering. nestl Commitment on Land & Land Rights in Agricultural Supply Chains 1.

5 The structure of families and communities and Taking action to address infringements on equal for women and men. individual, community or Indigenous Peoples'. nestl is against all forms of land acquisitions land rights, both in our direct operations and that are illegal and/or have an adverse impact through our supply chains. on local communities' livelihoods (land grabs). Including specific commitments on land, It is committed to develop its business in a way natural resources and human rights in our that complies with national laws and respects Responsible Sourcing Guideline for high risk human rights, and particularly the customary commodities, including provisions by suppliers rights to land and natural resources of Indigenous to ensure that: Peoples, traditional peoples, and communities They have a zero tolerance for land grabs. that are impacted or potentially impacted by the They engage with and seek the support of company's business activities.

6 Those who could be affected by investment This public Commitment has been prepared decisions prior to decisions being taken and to complement The nestl Corporate Business respond to their contributions. They take Principles, The nestl Supplier Code, our into account existing power imbalances and Responsible Sourcing Guidelines, The nestl ensuring active, free, effective, meaningful Policy on Environmental Sustainability, including and informed participation of affected its appendix on nestl Commitment on Water individuals and groups. Stewardship, and the nestl Commitment on They seek free, prior, and informed consent Rural Development. with regard to the rights of Indigenous Peoples. Specifically nestl commits to: Working with suppliers to implement actions to improve land rights wherever gaps are 1. Legal Compliance and International identified.

7 Framework Including respect for land rights in our due nestl will follow all applicable national laws and diligence review in relation to acquisitions and respect international human rights standards joint ventures that involve land acquisition. relating to the rights to land and natural resources. We will adopt the FAO's Voluntary Guidelines 3. Stakeholder Engagement and Advocacy on the Responsible Governance of Tenure of Land, nestl will work with Governments, communities, Fisheries and Forests in the Context of National farmers, and other relevant stakeholders to Food Security, and other relevant and accepted improve the effectiveness of land rights by: instruments that codify the rights of communities Identifying opportunities for landless men and in relation to their land and natural resources. women to gain access to land and become We will: farmers, whilst respecting existing customary Promote and support their adoption by industry claims and uses partners and governments.

8 Strengthening the recognition of land rights for Work with stakeholders to develop operational men & women, communities and Indigenous guidelines and standards for companies, which Peoples with access to land but whose rights can guide the implementation of the Voluntary are not recognized and respected Guidelines. Promoting the security of tenure for women whose rights under the law or in practice may 2. Continuous Improvement not be equal to those of men in their household We will promote and implement operational Advocate for and support the implementation practices to manage and address land acquisition of mechanisms and processes that can that is illegal or has an adverse impact on local facilitate this work, and engage with partners communities' livelihoods by: to implement solutions on the ground. Integrate this topic into our annual corporate wide human rights risk assessment process 4.

9 Report on progress and our country-based human rights impact We will report publicly on a regular basis on the assessment. progress of meeting this Commitment as part of Encouraging the continued development of our annual nestl in Society report, including: public information, early warning systems and i. Actions and progress to improve the grievance mechanisms to ensure timely, and effectiveness of land rights of the men and widely-accessible information on areas of high women small holder farmers in our supply chain. risk, infringements and other non-compliance. ii. The material risks within our commodity supply Operating an external company grievance chains relating to land rights and our strategic mechanism and responding to all cases responses. brought to our attention in a timely manner. iii. Our contribution through advocacy work towards more effective land tenure.

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