Answer the following questions given below. It will be necessary to gather data from the FINRA site and publicly available ESG rating sites, as well.
1. Based on the information contained in the case, what does Nestle see as the biggest issues it must begin to address today?
a. Of these, which two do you/your group believe are most important and why?
a. Do these issues also impact competitors such as Pepsi and Kraft Heinz? Explain (consider product mix and sourcing)
2. What are the major criticisms your group believes the public might have about Nestle’s plans, especially with regard to consumer tastes and trends (don’t limit your answer to information contained in the case)?
2. Using information external to the case:
a. Using more than one source, what is Nestle’s current ESG score? What is their lowest subscore?
b. Using more than one source, how does Nestle’s ESG score compare with Pepsi and Kraft Heinz? Identify key differences, if any.
9 – 9 1 3 – 4 0 6
R E V : A U G U S T 9 , 2 0 1 3
Professor Ray A. Goldberg and Lorin A. Fries (HKS 2012) prepared this case. HBS cases are developed solely as the basis for class discussion.
Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.
Copyright © 2012, 2013 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-
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R A Y A . G O L D B E R G
L O R I N A . F R I E S
Nestlé: Agricultural Material Sourcing Within the
Concept of Creating Shared Value (CSV)
As we look ahead to the next ten years, it seems wrong to talk about “the future of sustainable agriculture.”
Simply put, there is no future without sustainable agriculture.
— Peter Brabeck-Letmathe, Chairman, Nestlé1
Now after more than ten years of focusing on sustainable agriculture, many food processors and farmers are
collectively working to redesign the whole food value chain to make it sustainable.
— Hans Jöhr, Head of Corporate Agriculture, Nestlé2
Hans Jöhr stood from his chair and walked to the window to think. It was a quiet morning at
Nestlé, but his mind raced in anticipation of the executive board meeting that afternoon. As the
company’s Corporate Head of Agriculture, Jöhr recognized the meeting as a key opportunity to
strategize far into the future, reexamining how his team’s efforts in sustainable agricultural sourcing
supported Nestlé’s position as the world’s leading nutrition, health and wellness company. The
company had undertaken to impact three of the world’s most urgent challenges—nutrition, water,
and rural development—and Jöhr’s team was fundamental to each of these pillars. Yet the forces
changing the global food system were formidable: unprecedented levels of hunger, obesity, and
chronic disease; land degradation, frequent natural disasters, and critical threats to water supply;
population growth by the billions in the coming decades, along with increased urbanization; and a
volatile and tentative world economy. In the face of such threats and complexity, how could Hans
Jöhr ensure that Nestlé’s agricultural raw materials were safe, high quality, of consistent supply, and
sustainably and ethically and economically produced? How can the procurement process enable the
small scale producer to become a viable partner in the milk production models that Nestlé has
developed in the developing world? Further, how could his team excel beyond the company’s day-
to-day business and enable Nestlé’s vision
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