Nestlé

Policy Commitment

• Nestlé’s overarching commitments to the Code had not changed since the 2021 assessment. The company continues to clearly state its support for exclusive breastfeeding in the first six months and continued breastfeeding to two years or beyond, as well as for the introduction of appropriate complementary foods from the age of six months.

• Although compared to the other companies assessed, Nestlé’s overarching commitments are relatively well-aligned with the principles of the Code, the company still does not fully acknowledge the specifications to the Code provided by the World Health Assembly (WHA) in resolution 69.9 and the accompanying guidance on ending the inappropriate promotion of foods for infants and young children. WHA resolution 71.9, which calls for continued implementation of the recommendations of this guidance has not been acknowledged by the company either.

• Nestlé did not receive a full score on the new indicator that assesses whether companies apply their BMS marketing commitments to all types of formula, including formulas for special medical purposes. While the company does not consider products intended for the treatment of medical conditions as breast-milk substitutes, the Code regards all formulas for infants and young children as BMS, whether used to meet the normal nutritional or special medical needs of infants.

Policy Commitment

• Nestlé’s policy commitments relating to advertising and the promotion of BMS, which are relatively well-aligned with the requirements of the Code, have not changed since the 2021 assessment.

• Compared to the last assessment in 2021, several of the indicators in this topic have been adapted to capture companies’ explicit commitments in digital environments too, such as advertising on social media and point-of-sale promotions on online retail stores, as well as establishing contact with caregivers through baby clubs and social media groups – all actions that are not compliant with the Code.

• Nestlé is one of four companies that makes these explicit commitments, with the exception of establishing contact with caregivers through baby clubs as the company confirmed doing so in some markets to provide educational content, which the Code asks companies to refrain from. Nestlé is also advised to include explicit statements on which forms of media and channels BMS marketing commitments apply to, particularly on how they apply in the digital environment.

• Indicators were also revised to ensure accurate and complete inclusion of all recommendations of the guidance on ending the inappropriate promotion of foods for infants and young children supported by WHA resolution 69.9, for example by adding indicators to address cross-promotion of BMS products and educating caregivers on infant and young child feeding, both of which BMS companies should not do according to the Code. Nestlé did not score on these, considering the company’s limited consideration of the WHA 69.9 guidance.

• Nestlé is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Nestlé shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments found for the company on public advertising and promotion of BMS that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Nestlé scores on those elements.

Policy Commitment

• Nestlé’s policy commitments relating to marketing BMS throughout the healthcare system, which are relatively well-aligned with the requirements of the Code, have not changed since the 2021 assessment.

• Compared to the last assessment in 2021, indicators were slightly revised to ensure an accurate assessment of recommendation 6 of the guidance supported by WHA resolution 69.9 to evaluate whether companies have explicit commitments in place not to use health facilities to host events of any kind nor to give out gifts or any other offering to caregivers of infants and young children, to avoid conflicts of interest. Similar to the 2021 assessment, and like most of the BMS companies assessed in this Index, Nestlé did not score on the indicators that capture these Code commitments that specifically relate to WHA resolution 69.9.

• Nestlé is one of only three companies among the 18 assessed to have scored on having explicit commitments not to provide or pay for ‘professional service representatives’ or similar personnel to work in the healthcare system.

• Nestlé is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Nestlé shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments met by the company on marketing BMS throughout the healthcare system that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Nestlé scores on those elements. Although it is one of two companies among the 18 assessed that score the highest on management systems in this topic, these can be improved by providing more concrete examples of what company personnel should or should not do in each context.

Policy Commitment

• Nestlé’s policy commitments relating to BMS donations within the healthcare system, in humanitarian settings and emergencies, and in social welfare institutions are partially aligned with the requirements of the Code.

• Compared to the last assessment in 2021, commitments on donations of BMS are now assessed in a separate topic and across several indicators, to ensure a more accurate assessment of the specific requirements relating to BMS donations.

• In regard to BMS donations, Nestlé has shown Code compliant commitments by stating that it would not provide free or low-cost supplies of the BMS products covered by its policy, as well as formulas for special medical purposes, unless officially requested by a competent government authority of the country affected by the emergency or by the designated emergency response coordinating body acting on behalf of the government. The company also has explicit requirements in place in the case of an official authoritative BMS donation request, including ensuring that distribution is targeted and not delivered directly to caregivers, and that supplies are based on identified need and are not expired or close to expiry.

• However, no explicit statement was found to guarantee that supplies will continue for as long as the infants concerned need them and to prohibit using such donations as a sales inducement.

• Similarly, although the company commits not to distribute BMS product donations or low-cost supplies for use outside of the social welfare institutions where infants and young children require them, it does not explicitly prohibit the use of such donations as a sales inducement as per Article 6.6 of the Code.

• Nestlé has also shown clear commitments regarding prohibiting the provision of free or reduced-price BMS products to caregivers through healthcare facilities for any reason, which aligns with the Code requirement specifically pertaining to recommendation 6 of the guidance supported by WHA resolution 69.9.

• However, Nestlé continues to provide BMS product samples for research and product evaluation purposes while according to the Code these should not be provided to healthcare institutions under any circumstances and for any reason, even if the products are not directly provided to consumers or patients.

• Nestlé also falls short of meeting the Code requirements on donations by allowing the provision of educational items (e.g. growth charts, educational booklets) to healthcare professionals, which is specifically addressed in recommendation 6 of the guidance supported by WHA resolution 69.9 to avoid due to potential conflict of interest.

• Nestlé is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• In addition to Nestlé’s publicly available 2017 Standard for Donations or Low-Cost Supplies for use in Emergencies and for Social Purposes, the company also shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS, as outlined in the company’s related policy(ies). The company does not fully score on management systems since it does not have all Code provisions in place. However, in regard to the commitments met by the company on donations that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Nestlé scores on those elements.

Policy Commitment

• Nestlé’s policy commitments relating to marketing BMS to healthcare workers, which are relatively well-aligned with the requirements of the Code, have not changed since the 2021 assessment.

• Compared to the last assessment in 2021, a new indicator was introduced for this topic to specifically assess the instructions provided to healthcare workers on the appropriate preparation of powdered formulas and if these are based on WHO/FAO guidelines and Codex Standards( as referenced by WHA resolutions 58.32 and 61.20. Nestlé did not score on this indicator and none of the 18 companies assessed met this requirement.

• Nestlé however is one of only four companies out of the 18 assessed to explicitly state that any material which contains information about formula use provided to health workers will include information on the social and financial implications of formula use and the health hazards of inappropriate feeding methods, unnecessary or improper use of BMS and their inappropriate preparation, as per the requirements of the Code.

• Two other indicators were slightly revised to ensure an accurate assessment of recommendation 6 of the guidance supported by WHA resolution 69.9 to evaluate whether companies have explicit commitments in place not to offer any financial or material inducements (no gifts or incentives of any form or value) to healthcare workers or their families, and not to sponsor any scientific meetings, fellowships, study tours, and research grants for health professionals, to avoid conflicts of interest. Similar to the 2021 assessment, and like most of the BMS companies assessed in this Index, Nestlé did not score on these indicators that capture the Code commitments that specifically relate to WHA resolution 69.9.

• Nestlé is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Nestlé shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments met by the company on marketing BMS to healthcare workers that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Nestlé scores on those elements. However, these can be improved by providing more concrete examples of what company personnel should or should not do in each context.

Policy Commitment

• Nestlé’s policy commitments that address the incentives of company employees involved in BMS marketing, which are relatively well aligned with the requirements of the Code, have not changed since the 2021 assessment.

• The company explicitly commits not to base bonuses and incentives for sales staff, medical delegates, and other marketing personnel on the volume of sales of the BMS products it covers in its policy, as per Article 8 of the Code. Instead, the company rewards compliance with the requirements of the company’s BMS marketing policy, which is encouraged.

• However, similar to the assessment for the previous BMS/CF Marketing Index 2021, it was found that the company’s bonus payments could be based on measures of market share, which is why the company did not fully score.

Management System

• Nestlé shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide personnel on the basis of determining employee incentives as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments met by the company on employee incentives that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Nestlé scores on those elements. It is one of three companies out of the 18 assessed that provides clear instructions to staff on how to interpret and apply relevant commitments on bonus calculations. Related procedures, however, can be improved by ensuring they are as complete and consistent across all markets.

Policy Commitment

• Nestlé’s policy commitments relating to the labeling of BMS products, which are relatively well-aligned with the requirements of the Code, have not changed since the 2021 assessment.

• Compared to the last assessment in 2021, the information required by the Code on labels of powdered formula are assessed in more detail to evaluate whether companies have specific commitments covering each requirement as per WHA resolutions 58.32 and 61.20. Although Nestlé was found to have broad commitments on requirements for powdered formula labels, such as stating the hazards of inappropriate preparation and using graphics to illustrate appropriate methods of preparation, the company did not fully score on this indicator as no information was found specifying the rest of the requirements.

• Although the company was found to have explicit commitments pertaining to the requirements described in Article 9 of the Code, it did not fully score on some, particularly where no commitments were found on ensuring the appropriate age range is stated on the labels. Commitments were also not found for Nestlé that cover the Code labeling requirements strengthened by the guidance on ending the inappropriate promotion of foods for infants and young children that is supported by WHA resolution 69.9.

• Nestlé continues to not explicitly commit that it will not place any health or nutrition claims on its BMS products, unless specifically provided by local legislation, as per WHA resolutions 58.32, 63.23 and 69.9.

• Nestlé is encouraged to consider the gaps identified to revise its policy to better align with the requirements of the Code.

Management System

• Nestlé shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company does not fully score on management systems as it does not have all Code provisions in place. However, in regard to the commitments met by the company on labeling BMS products that are in line with the Code, the guidance provided by the company to follow and apply these commitments is clear, complete and consistent across different markets, thus Nestlé scores on those elements. Related procedures, however, can be improved by ensuring they outline clear standards of practice.

Policy Commitment

• Compared to the BMS/CF Marketing Index 2021, companies’ commitments on this topic are evaluated in more detail to ensure their commitments relating to Article 10 of the Code are accurately assessed.

• In this iteration, Nestlé did not score on this topic since not all relevant Codex standards relating to the quality of BMS products were explicitly stated. This is because the company does not specify which Codex standards relating to BMS products would apply at a minimum.

• Nestlé is encouraged to explicitly state which specific Codex standards it follows at a minimum for clear reference.

Management System

• Nestlé shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees on the responsible marketing of BMS as outlined in the company’s related policy(ies). The company did not score on management systems as it did not meet the policy commitments in full.

Policy Commitment

• Nestlé’s policy commitments relating to monitoring compliance of its marketing practices to the principles of its BMS marketing policy have not changed since the 2021 assessment. The company was found to have all commitments assessed in place, which specifically pertain to Article 11 of the Code.

Management System

• Similar to the 2021 assessment, Nestlé shared – under NDA - global staff training materials and some local procedure manuals developed by the company to guide its employees and contractual third-parties on the responsible marketing of BMS as outlined in the company’s related policy(ies), as well as effective monitoring and management of incidences of non-compliance with the company policy(ies). The company also clearly assigns executive responsibilities and oversight to ensure the effective implementation of its BMS marketing policy.

• Some local procedures and training materials were found dedicated to third parties that have a contractual relationship with Nestlé, including distributors and retailers, outlining their responsibilities to follow Nestlé’s BMS marketing policy. However, contractual third-party responsibilities were not found in every local guidance shared by the company, thus Nestlé did not fully score on this aspect.

• To improve its score on this topic, Nestlé is encouraged to ensure that contractual third-parties’ responsibilities to appropriately market BMS are clearly defined and communicated in every market where Nestlé’s BMS products are sold, including providing them with guidance on monitoring practices and taking corrective action if incidences of Code non-compliance are identified.

Policy Commitment

• Nestlé has a publicly available policy on transparent interaction with authorities and organizations which is also applied when engaging on issues relating to BMS and the Code. Based on this policy, Nestlé continues to cover the relevant commitments assessed in this topic.

• Based on the information found on Nestlé’s website and the official assessment of the company’s response to the BMS Call to Action, ATNI acknowledges that Nestlé is shown to support regulating the promotion of BMS intended for infants from birth up to 12 months globally.

• However, ATNI encourages Nestlé to further commit to supporting legislation that is fully aligned with the Code for all BMS products intended from birth up to 36 months of age globally.

Management System

• Based on Nestlé’s related policies, the company clarifies that the company’s board has oversight of its policy on transparent interaction with authorities and organizations, and that it names an executive function with the responsibility of implementing this policy.

• However, no evidence was found in the public domain, nor provided by the company, indicating that clear systems are in place on control mechanisms to ensure effective implementation of this policy, such as reporting and internal audits. To receive a full score on this topic, Nestlé is encouraged to improve on this aspect.

Disclosure

• In regard to commitments that were found for Nestlé that are in line with the Code, the level of disclosure on these commitments and on the company’s compliance with its BMS marketing policy is relatively high and has not changed since the 2021 assessment.

• Areas where Nestlé can improve on this topic include disclosing the full auditor reports, and not just summaries of them, on the company’s compliance with its BMS marketing policy, as well as disclosing each complaint or criticism made by stakeholders on the company’s BMS marketing and explaining how Nestlé responds to each of those rather than providing a general public statement.

• Since the last BMS/CF Marketing Index 2021, a few indicators have been added to further assess companies’ level of disclosure in lobbying on BMS marketing issues and the Code. Similar to the 2021 assessment, Nestlé falls short in disclosing lobbying-related activities. No information was found in the public domain of an assessment of the company’s compliance with its policy on lobbying and interactions with public authorities. Like most companies assessed in this iteration, no information was found either on Nestlé’s website of its interactions, or that of its trade associations, in legislative processes related to the Code and BMS marketing, nor of links to relevant external platforms that may include this information. Although Nestlé publicly discloses following the principles of the Code and the Responsible Lobbying Framework, ATNI advises the company to also follow other key public policy frameworks in private sector engagement and lobbying such as the WHO framework of engagement with non-state actors and OECD principles for transparency and integrity in lobbying, among others.

• Nestlé is encouraged to consider the gaps identified in its level of disclosure and have this information available and easily accessible in the public domain.