Introduction
Nestlé, a global leader in the food and beverage industry, has consistently demonstrated its commitment to enhancing quality of life and contributing to a healthier future through sustainable practices and innovative products. As part of its social sustainability initiatives, Nestlé has partnered with Traxlo, a task-based marketplace, to generate income opportunities for local communities in Lithuania. This case study examines how the collaboration between Nestlé and Traxlo aligns with social sustainability goals by involving gig workers in daily task completions, ultimately supporting Lithuania’s GDP and providing economic benefits to local communities.
Nestle sustainability objectives
According to Nestlé’s 2023 sustainability report, the company is dedicated to providing economic opportunities to 10 million young people by 2030. As a leading fast-moving consumer goods (FMCG) company, Nestlé aims to contribute to thriving communities by initiating valuable projects and collaborating with local associations to create shared value. These initiatives include cultural and sports programs and efforts to improve food access for vulnerable communities.
(Picture compiled from Nestle's sustainability report, 2023)
Case study objective
The primary objective of this case study is to identify the Key Performance Indicators (KPIs) that Traxlo can support to align with Nestlé's social sustainability objectives. Based on Nestlé's sustainability report, two KPIs are identified:
Evaluate the income opportunities generated for local communities.
Identify key target audiences engaging with Traxlo application
Sustainability metrics framework
To structure how Traxlo can measure its impact in supporting Nestlé's sustainability goals, the Nasdaq ESG Reporting Guide 2.0 will be used. This guide emphasises the importance of understanding and answering the following questions regarding each metric:
Why is it measured?
How is it measured?
Why is it disclosed?
How is it disclosed?
Traxlo’s framework will focus on drafting ratios, formulas, and addressing these key questions. The specific framework will be developed:
Individual economic contribution to minimum wage ratio (S1): This metric assesses the financial impact Nestlé’s budget has on individual gig workers by measuring the contribution each worker receives relative to the minimum wage.
S1 - Individual economic contribution to minimum wage ratio |
|---|
S1 1) Ratio: Individual economic contribution to minimum wage |
S1 2) Does your company report this metric in sustainability reports?: Yes/No |
Why is it measured? This metric assesses the financial impact Nestlé’s budget has on individual gig workers by measuring the contribution each worker receives relative to the minimum wage. It reflects how the company's task-based work provides economic opportunities that help individuals meet or exceed the basic wage requirements in Lithuania. This ensures that the income provided through gig work is meaningful and contributes to the workers' financial security. |
How is it measured? Calculation: Individual Monthly Income from Nestlé Tasks = (Nestlé Monthly Budget for Gig Workers) / (Total Number of Gig Workers per Month) Contribution to Minimum Wage Ratio = (Individual Monthly Income from Nestlé Tasks) / (Monthly Minimum Wage in Lithuania) |
Why is it disclosed? This metric highlights how Nestlé’s gig work opportunities contribute to individual economic empowerment and income security by helping workers meet or supplement the minimum wage. Disclosing this ratio also demonstrates the company's social sustainability efforts in promoting decent work and supporting fair wages for local communities. |
How is it disclosed? The metric would be disclosed as a percentage of the minimum wage that each gig worker earns from Nestlé-related tasks. It can be presented in sustainability reports, accompanied by comparisons to other regions or industries where relevant. |
Connections to Frameworks: GRI: 102-7 (Information on employees and other workers), 201-1 (Direct economic value generated and distributed). SDG: Goal 8 (Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all). |
Percentage of Companies Reporting: This type of metric may not be widely reported, but it is becoming more relevant as gig work and the focus on fair wages and economic sustainability grow. |
Notes, Sources: Lithuanian Minimum Wage (2024) is based on current estimates and should be updated annually. GRI reporting, Nasdaq reporting guide, SDG by United Nations. |
Social sustainability measurement
Utilising the frameworks developed according to the Nasdaq ESG Reporting Guide 2.0, Traxlo has conducted calculations to assess the impact of its collaboration with FMCG companies like Nestlé on local communities.
Calculation | |
Preliminary merchandising budget | €150,000.00 |
Budget going to gig-workers | €120,000.00 |
Monthly income going to gig-workers | €10,000.00 |
Gig-workers covering Nestle tasks | 70 |
Individual Monthly Income | €142.86 |
Lithuanian Minimum Wage (2024) | €924.00 |
Contribution to Minimum Wage Ratio | 15.46% |
The preliminary merchandising budget was derived based on the following criteria:
Number of modern trade stores across Lithuania
Preliminary price per visit based on the Nestle SKU count in the stores
Frequent visits in larger stores
Even the budget might not be extremely accurate, it gives us an understanding towards social impact.
This metric focuses on how the company's investment directly impacts individual workers, which is a key concern in social sustainability. It provides a clear, measurable link between corporate activity and financial security for local communities.
The 15% Contribution to Minimum Wage Ratio indicates that each gig worker completing tasks for Nestlé through Traxlo earns, on average, 15% of Lithuania's monthly minimum wage from these tasks alone. This reflects a partial income that is likely used to supplement workers' earnings from other sources.
The impact of this 15% contribution is significant when viewed as part of a broader effort to provide income opportunities in local communities. While earning 15% of the minimum wage might not seem large, it represents a meaningful addition for workers who might be combining gig tasks with other forms of employment. For students, retirees, or part-time workers, the extra income could cover small but essential expenses like utility bills, groceries, or transport costs, making a real difference in day-to-day life. This metric also shows that the work provided by Nestlé and facilitated by Traxlo has tangible financial benefits for gig workers.
Broader social sustainability measurement
In addition to Nestlé's contribution to gig workers’ economic earnings, the overall impact of Traxlo’s Tasku application was also assessed. This evaluation incorporated not just Nestlé but a range of other FMCG companies and retailers that partner with Traxlo to offer in-store execution tasks. By including these additional companies, we were able to get a more comprehensive view of how Traxlo’s platform supports gig workers across various industries.
When taking all participating companies into account, the contribution to the minimum wage was found to be more than 54%. This means that, on average, gig workers engaged with multiple FMCG companies through Traxlo can earn over half of Lithuania’s monthly minimum wage.
The 54% contribution signifies that, when gig workers are able to participate in tasks from multiple companies, they can earn a more meaningful portion of their living expenses. This represents a shift from gig work as purely supplemental income to a model where it can account for a significant part of a worker's monthly earnings, moving closer to financial sustainability.
Target audiences identification
The majority of the target audience for Nestlé's gig work opportunities through Traxlo has been identified as women aged 35-55. A significant portion of these women are also mothers, balancing family responsibilities while seeking flexible income opportunities. In some heartwarming instances, women have been found to complete tasks in stores with their children, turning the experience into a shared family activity. In other cases, mothers use the time after dropping their children off at kindergartens or schools to head to stores and earn extra income by completing tasks.
By offering flexible gig work, Nestlé not only supports these women in earning supplemental income but also engages with a demographic that values adaptable work schedules. This initiative empowers women, particularly mothers, to manage both their family obligations and economic needs, making the program highly relevant and beneficial to this specific audience. Nestlé's gig opportunities thus foster a deeper connection with these women by accommodating their unique lifestyle needs and promoting financial independence.
Conclusion
Through its collaboration with Traxlo, Nestlé has demonstrated a meaningful contribution to social sustainability by creating flexible income opportunities for local communities, particularly women aged 35-55. The partnership has shown a measurable impact, with gig workers earning up to 15% of the minimum wage from tasks completed for Nestlé, and a broader 54% contribution when considering all FMCG companies involved with Traxlo. These results highlight the importance of gig work as a supplemental income stream, especially for individuals balancing work with family obligations.
(Pictured compiled by authors, demonstrating Traxlo gig-workers)
References
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