Natural Capital - Biodiversity - Nestlé’s mission is to respond to the elements of biological diversity that fertilizers and pesticides strongly needs and preferences of con- constitute the agro-ecosystem. It affected the biological diversity of sumers by offering safe, nutritious consists of three components such farmlands.5 and healthy foods and beverages. as (i) diversity within landscapes The Food and Agriculture As the world’s leading Nutrition, (e.g. species of plants, animals, Organization (FAO) has estimated Health and Wellness company we insects and microbes), (ii) diversity that during the last century, 75% of purchase nearly 1% of the world’s of and within agricultural crops and crop genetic diversity has been lost, agricultural production. Along with animals (e.g. breeds of cattle, crop a phenomenon referred to as rotation) and (iii) diversity within other companies in the agri-food 2 genetic erosion. Another 30% of sector, we build on functioning species (genetic variability). livestock breeds are at risk of ecosystems and a healthy Besides providing food and raw extinction; in fact, six breeds are lost environment. materials, agrobiodiversity delivers each month.6 Biodiversity is the cornerstone of services such as benefiting Biodiversity and Nutrition balanced ecosystems and human pollination, improving soil health and water quality, sustaining rural Through simplification and well-being. It provides a large standardization within the agri-food number of assets that sustain our people’s livelihoods and enhancing the resilience of agro-ecosystems. sector the number of varieties grown lives and inspires the industry to and processed has continuously develop goods for everyday life Eroding biodiversity decreased (Figure 2). Although more needs, be it food, pharmaceutics, The world’s biodiversity erosion is than 80% of the human diet is cosmetics and many others. accelerating at a dramatic pace. As provided by plants, only five cereal a matter of fact, on 58% of the crops provide two third of energy world’s land surface - where more intake.6 than 70% of human population lives Furthermore, even within a particular - the Biodiversity Intactness Index type of cereal the source of nutrients has moved beyond the planetary 3 is limited to a small number of boundaries. varieties. For illustration, Thailand Due to human activities, up to 30% had 16,000 rice varieties in the past, of mammal, bird and amphibian today only 37 are grown. About 50% species are threatened with of their cultivated area uses only two extinction.4 Indeed, increased rice varieties.7 agricultural land-use and the For long, the main focus of agri-food development of input-intensive systems and development policies Yet over the last century, human monocultures with excessive use of activities (e.g. urbanization, was on providing enough calories, agriculture) and population growth have reduced biodiversity beyond the planetary boundaries (safe limit). Therefore, as a food company, we have a responsibility in protecting and enhancing biodiversity through our operations. Biodiversity Biodiversity is the biological diversity, the variability among living organisms at ecosystems, species and genetic levels.1 It comprises of aquatic and terrestrial ecosystems including forests and soils and provides a large number of services that can broadly be grouped as non- material (cultural), material (provisioning) and regulating ecosystem services (Figure 1). Agrobiodiversity includes all Functional agrobiodiversity Given that maximizing biodiversity does not necessarily increase the agro-ecosystem functioning, the concept of “functional agrobiodiversity”2 is advisable. It refers to those functional elements of biodiversity at different management level (e.g. plants, agricultural fields or landscapes) that are intrinsically linked with each other and could support a more sustainable agricultural production. Ultimately, it can deliver benefits to the regional and global environment and to the public at large.8 Effectively, as not all species have the same level of influence on the functioning of the agro-ecosystem, elements of agrobiodiversity are clustered considering their interconnections with particular ecosystem services. Good practices can then be defined to support desired services. neglecting the importance of a those with lower values tend to be balanced diet and nutritional quality the high-yielding high-bred ones. of the food. Fortunately, society is increasingly Changing lifestyles coupled with high acknowledging the potential role that energy diets, low in variety, agricultural biodiversity can play in contributed over time to an increase moderating nutritional problems. In of public health issues (e.g. obesity, addition, there is clearly a need for cardio-vascular diseases and micro- increased availability of vegetables, nutrient deficiencies). fruits and legumes in diets. However, biodiversity can play a key But is it possible to halt role in ensuring dietary diversity agrobiodiversity erosion by simply because nutrient composition among enhancing biodiversity across There are several examples of varieties can differ considerably. landscapes or increasing the number practices that allow to make 7 of crops and animal species functional agrobiodiversity tangible. According to FAO , some sweet Most of them will foster the potato cultivars can vary in disregarding their functionality in the agro-ecosystem? resilience of agro-ecosystems and carotenoid content by a factor of 200 many have a positive impact on farm or more. In cassava, nutrient resources management (e.g. composition ranges strongly among pesticides, fertilizers, water, energy varieties, too. Indeed, per 100 g of use). edible portions, protein content can vary from 0.7 to 6.4 g and beta- Functional agrobiodiversity-based carotene content from <5 to 790 mcg practices can include: (micrograms).  Managing crop-genetic diversity Iron and zinc content in rice might (crop rotations, intercropping, differ by a factor of 2.5 and 1.5 leguminous and traditional crops respectively. Hence, the varieties varieties, agroforestry). with higher nutritional content usually  Adopting sustainable soil are traditional varieties, whereas management practices (reduced tillage, diversified crop rotation, Awareness must be created among Already back in 2001, our residue management, mulching). society for local and regional engagement and acknowledgment  Promoting mixed farming systems biodiversity stewardship such as it for a well-functioning environment (including crop and livestock). has been done for water and climate has led us to issue the first change. Appropriate policies should Environmental Progress report. To  Enhancing species diversity then frame and incentivize functional further strengthen our commitment, (provide respective habitats for biodiversity practices. we published our Policy on sensitive animal species, plant or Environmental Sustainability in 2014 conserve native plants and trees). So far, agricultural models driven by biodiversity found limited application and we update on progress in our  Managing landscape diversity (re- at large scale. Given the risk Nestlé in society report. vegetate farm edges and conserve associated with biodiversity loss and We have also been deploying RISE ecological corridors, farm ponds ensuring supply of agricultural raw (Response Inducing Sustainability and streamlets). materials, the agri-food sector must Evaluation) since 15 years, to include biodiversity stewardship in its assess farm sustainability. operations. Furthermore, as Agrobiodiversity is an integral part of consumers’ interest and RISE. The tool has been used in consciousness grow continuously, more than 800 farms around the biodiversity-inclusiveness becomes a world providing us with valuable significant competitive advantage. insights on biodiversity. Nestlé’s actions Nestlé continues to advocate for In 2001, Nestlé initiated the effective policies and stewardship Sustainable Agriculture Initiative through the Sustainable Agriculture Nestlé (SAIN). As a corporate wide Initiative (SAI) Platform and supports action-oriented initiative, SAIN activities of the World Business contributes to the production and Council for Sustainable Development supply of safe, high quality raw (WBSCSD). We have established collaborations with local How to best achieve functional materials for Nestlé brands. SAIN promotes more sustainable organizations, universities and agrobiodiversity at different government agencies in Nestlé management levels? agricultural practices through education and training aiming to markets which help us make a Biodiversity stewardship reduce environmental impacts and difference on the ground at local A governance structure is needed for favoring the development of lean and scale. a holistic management of efficient supply chains. More information, including previous biodiversity, along with tools and Biodiversity issues are addressed publications on Nestlé’s Commitment methods to measure and value it. through SAIN, in programs such as to Natural Capital such as ‘Soil & The concept of biodiversity Farmer Connect, the Nescafé Plan, Soil Health’ and ‘Water in stewardship promises a way forward. the Cocoa Plan, the Dairy Sourcing Agriculture’ are available at: We define it as a stakeholder Plan, the Nespresso AAA Program, www.nestle.com/csv inclusive process to manage and are interlinked with Responsible biodiversity at landscape level. Sourcing and other direct sourcing 2016, Vevey, Switzerland

Stakeholders include, but are not operations. References: limited to, farmers, landowners, 1CBD (1992). Convention on Biological Diversity. Montreal, Canada. governmental agencies, 2Bàrberi, P. (2013). Functional Agrobiodiversity: The Key to Sustainability? Agricultural Sustainability: Progress and communities, industry and food Prospects in Crop Research. Bhullard, et al. Zurich, Switzerland. companies and civil society 3 Newbold,T. et al. (2016). Has land use pushed terrestrial organizations. biodiversity beyond the planetary boundaries? Science. Vol 353. Issue 6296. Biodiversity stewards understand 4MEA (2005). Ecosystems and Human Well-Being - Synthesis. Millennium Ecosystem Assessment. that individual measures may Washington DC, USA. 5IPES Food (2016). From Uniformity to Diversity. International influence biodiversity of neighbors Panel of Experts on Sustainable Food Systems. and the landscape. They act Belgium. 6FAO (2004). What is happening to agrobiodiversity? FAO accordingly and contribute to the Corporate Document Repository. Rome, Italy. 7FAO (2009). Biodiversity and Nutrition, a common path. development of management plans Rome, Italy. fostering functional agrobiodiversity. 8ELN-FAB (2012). Functional agrobiodiversity: Nature serving Europe’s farmers. European Learning Network on Functional AgroBiodiversity. The Netherlands.