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Ferrero Group Sustainability Report 2022 Other ingredients Introduction Our sustainability progress Our reporting F In addition to our main raw materials, we source several other ingredients, where we promote the same sustainability criteria. Coffee We source coffee from supplier partners that are Rainforest Alliance/UTZ certified, mainly from four origins: Brazil, Costa Rica, Dominican Republic and Colombia. Soy lecithin We source our soy lecithin from Brazil, India and EU countries. More than 75% of our sourcing is Proterra-certified. Coconut We adhered to the industry Coconut Charter framework 31, co-developed with partners within the Roundtable on Sustainable Coconut, now called The Sustainable Coconut Partnership, and we are working on applying its ambition and principles for coconut sustainability programmes. The Sustainable Coconut Partnership started as a series of meetings in 2019. It brings together buyers, processors and others involved in coconut supply chains to find solutions and share investment approaches in establishing cost-effective sustainable coconut value chains, and supporting farmers' livelihoods. It now plans to formalise its approach as an organisation during 2023, aiming to catalyse responsible coconut production and major market transformation by establishing industry-wide best practices and impact programmes, and further harmonising industry requirements to their supply-chain partners. Shea Shea butter is processed from shea nuts and is used to enhance the taste and consistency in our products. The shea tree grows wild and can be found only in the Sahel belt of West Africa. The tree is very important for countries in the region, as its fruit provides nutrition and income for the population in rural areas, and the bark, leaves, sap and roots are used for traditional medicinal purposes. The trees also contribute to the prevention of desertification. Traditionally, women collect the shea fruits, which make up a significant proportion of the local diet. The kernels are boiled, shelled and dried. Some kernels are kept for household use, and the rest are sold. The income from selling the kernels enables families to pay for school fees, clothing and farm equipment. Nearly 2 billion shea trees grow naturally on parklands in 21 African countries stretching from Senegal to South Sudan, while 16 million women living in rural communities individually collect fresh shea fruits and kernels for processing. Shea offers technical and health benefits as a cooking oil and is used as a food and cosmetic ingredient. Today, more than half of all shea export is processed in West Africa as shea butter, shea stearin and shea olein. With approximately 800,000 tonnes collected each year, global demand for shea has grown significantly due to new shea applications in food and cosmetics, and increased investment in supply expansion and processing. The shea industry provides a critical source of jobs and incomes to often poor and under-served communities. Since 2018, Ferrero has been a member of the Global Shea Alliance (GSA). Established in 2011, the GSA is a non-profit industry association with 560 members from 35 countries, including women's groups, brands and retailers, suppliers, and NGOs. The GSA aims to be the premier platform for the strategic interests and practical needs of its members, shea stakeholders large and small worldwide. The GSA's mission is to design, develop and run strategies that promote a competitive and sustainable shea industry worldwide, and to improve the livelihoods of rural African women and their communities. 31. Home | Coconut and coconut oil Roundtable (sustainablecoconutcharter.com) 56 <
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