Investor Presentaiton
Ferrero Group
Sustainability Report 2022
Introduction
Our sustainability
progress
Our reporting
F
Environmental protection
The rate of deforestation and forest
degradation, particularly in Ivory Coast and
Ghana, threatens to undermine the resilience
of the cocoa sector and the surrounding
environment, and accelerate the climate,
biodiversity and natural resource crisis.
This affects the livelihoods of the millions of
smallholder farmers who depend on it.
Working with our suppliers, we're contributing
to ending deforestation and restoring forest
areas, and supporting farmers in converting
to agroforestry systems and becoming more
climate-resilient. We do this through the
CFI, which brings together companies
and governments to act collectively and
in a coordinated manner.
To prevent deforestation, we aim for
traceability back to farm level and use satellite
monitoring to monitor potential deforestation
and ecosystem conversion in our supply chain.
For all our cocoa in the 2021/22 season, we
reached complete traceability back to farmer
groups, 96% back to the farms with GPS
locations and 89% polygon-mapped 5. We
compare the farm locations with official maps
to check compliance with our no-sourcing
policy for farms in national parks and
protected forest areas. In 2021/22, we also
covered 470,000 hectares with deforestation
risk assessments and restored almost 1,400
hectares of forest area of which 17% are in
protected forests.
As a cross-cutting solution to many cocoa
sustainability issues, agroforestry is one of
our primary Charter priorities, and links to
other targets such as distribution of seedlings.
To date, we have supported the development
of over 140,000 hectares of agroforestry,
involving a total of 77,000 farmers. We have
trained 70,000 farmers in climate-smart
farming. So far, we have supported the
distribution of 7.3 million cocoa seedlings and
almost 5.6 million native and multi-purpose
tree seedlings. We also supported 10,000
farmers with Payments for Environmental
Services (PES).
Traceability, risk assessment and
transparency
Our results demonstrate our strong focus on
traceability which, from the very beginning,
has been the cornerstone of our responsible
sourcing approach.
Supply chain traceability has always been one
of the key quality and sustainability pillars at
Ferrero. Our ambition is to have full visibility
of our cocoa supply chain to understand issues
and risks, and address them.
The total cocoa volume we received in 2021/22
was close to 224,000 metric tonnes (MT),
of which 68% was cocoa beans processed
in-house, with the remaining 32% being cocoa
derivatives such as liquor, butter and powder,
and chocolate products. It was all sourced
through independently managed sustainably
standards such as Rainforest Alliance, Cocoa
Horizons and Fairtrade. In 2021/22, we
published a specific Cocoa Report for the
first time, where we stated the progress
made on our Ferrero Cocoa Charter, published
early 2022.
5. Polygon mapping is achieved by trained specialists who
walk around the cocoa farm noting GPS points through
which they can identify the location of the farm precisely
and measure its size. Based on this, they can then verify
a farm is not located in a protected forest, and estimate
more accurately the total volume a cocoa farmer can
produce. This method is more precise than others, which
collect only a single GPS point for a farm.
6. See page 9 of the Cocoa Charter for the full list of
Standards through which we source cocoa.
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