Investor Presentaiton
Ferrero Group
Sustainability Report 2022
How we source ingredients sustainably
We aim to create a thriving supply chain that benefits farmers and
their communities, and protects people and the environment.
Why does it matter?
Sourcing safe, high-quality ingredients
responsibly and transparently is important for
our products and for our stakeholders. The
business benefits of this are clear - it helps
ensure the quality we are looking to reflect
in the product, reduces risks and improves
innovation in our supply chains. It also benefits
the farmers, communities and landscapes we
source from, by improving livelihoods and
financial resilience, and by addressing issues
such as child labour and deforestation.
Our approach
Responsible sourcing is a key aspect of the
way we do business and the way we build our
supply chains - it is a non-negotiable
requirement. We have built strong due
diligence and supplier-management practices,
traceability and transparency throughout the
supply chain, certification and standards,
partnerships and collaboration, these last two
being deeply rooted in our business culture.
We take a four-steps approach - the higher the
risk, the stronger our level of understanding
and protection of the supply chain needs to be.
We cover each of our raw materials categories
with a protection level based on its level of risk.
All our suppliers undergo a risk assessment
and, as such, a minimum level of due diligence.
We invest in mitigation programmes for
higher-risk categories to improve sustainability
farming and production standards.
On top of the due diligence, we can trace most
our relevant raw materials back to their origin.
Palm oil and cocoa, for example, are mostly
traceable back to the plantation or farmer.
Most of the categories we spend directly on,
Four Steps approach
Supplier risk
management
and due
diligence
Standards
certifications
Supply chain and
visibility
Mitigation
programmes
LOWER RISK
Introduction
Our sustainability
progress
Our reporting
F
such as raw and packaging materials, follow
strict sustainability standards. For example,
RSPOTM for palm oil, independently managed
standards like Rainforest Alliance and
Fairtrade for cocoa, FSC® and PEFCTM for virgin
paper, or Bonsucro for cane sugar. When we
decide to apply a standard, we always aim for
full coverage of our supply chain.
When these efforts are not enough, we invest
directly. Our partnerships with Save the
Children in Ivory Coast and Ghana, ILO in
Turkey, and Earthworm in South-East Asia, are
clear signs we are selecting strategic partners
to make a positive difference to our supply
chains.
>HIGH RISK
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Supplier risk management and due
diligence
Supplier risk management helps us measure,
improve and assess supplier practices. It
includes analysing risks and opportunities,
ensuring compliance, running improvement
activities and building capability. Our strict
due-diligence approach requires suppliers to
adhere to our Supplier Code. It has six steps,
which apply to all our suppliers:
• Ferrero Supplier Code acknowledgement.
• Prioritisation, to identify major risks based
on ESG-risk scoring.
Supplier assurances (e.g. ISOs, other
category specific standards and
certifications).
⚫ Supplier assessment (EcoVadis,
Self-Assessment Questionnaire,
Sedex SMETA).View entire presentation