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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Health, safety and wellbeing Introduction Our sustainability progress Our reporting F Our vision is to foster a proactive culture that protects and continuously improves the health, safety and wellbeing of everyone associated with our business. Our approach We go beyond our commitment to keep all our employees and associates safe and free from harm, by creating and promoting conditions that aim to improve their long-term health and wellbeing. Accountability for the health, safety and wellbeing of our employees and partners ultimately lies with the relevant line manager, supported and advised by our global Health and Safety (H&S) function. We have designed a managerial report for our local H&S managers to send to our Site Plant Managers. The global function provides strategic direction and leads the development of Group-wide initiatives, tools and frameworks, and defines the minimum H&S requirements for all Ferrero sites. Our Regional Managers are assigned to coordinate, oversee, support and advise on, H&S matters, and to ensure local implementation of Group policies, initiatives and programmes - as well as local laws, all of which we adhere to. Our Code of Ethics conveys the company's expectations regarding H&S, and states that all Ferrero employees are responsible for their own safety, and that of others working with them or anyone likely to be affected by their work. Our Supplier Code also sets out clear expectations for health and safety: all third parties must comply with the same rules and regulations as Ferrero employees when working on Ferrero premises. We communicate this before contractors enter any of our sites. Strengthening H&S operational management In fiscal year 2021/22, we continued to align the H&S function with the Ferrero organisational model, appointing Area H&S Managers to provide the support and expertise required for our rapid growth. The Group function was consolidated with the incorporation of new roles for Project Management/Processes-Methodologies Development and an additional H&S engineering specialist. We also assigned H&S managers in all regions and strengthened existing local teams. Working with the Ferrero Operational Excellence (FOX) organisation, and our quality and environmental departments, the H&S function developed the current problem- solving approach by providing guidelines on the use of available tools and methodologies to ensure the best possible outcomes from incident investigations. In line with this, the roll-out of our Apollo root-cause-analysis methodology continued, including the training of 225 line managers at manufacturing sites. We updated our Ferrero Operational Requirements (FOR) H&S programme to align fully with ISO 45001 requirements. The programme includes best practices and guidelines on how to implement them. We also established, as part of this, additional detailed requirements for H&S-critical activities and processes, with three documents formally released in 2021/22 for two procedures: Electrical Safety and Warehouse Safety; and the Design Guidelines for Machinery Safety. We aim to implement a long-term standardised approach to H&S management system step by step, taking into account the different H&S maturity levels at individual sites. We continue improving our central H&S tool, ICE (Incident Create Experience), expanding its capabilities and strengthening it as the mandatory platform for all operations sites to report and follow up injuries, near misses, and unsafe acts or conditions. In addition, new online dashboards were developed in Power BI, to enable efficient and up-to-date reporting and monitoring of H&S performance indicators, as well as an analysis of trends by all relevant shareholders. The existing lagging performance indicator - TLR) was complemented with two leading indicators (Total Leading Rate - TLR and Closure Action Rate - CAR). This helps us manage health and safety more proactively, and is also included in the dashboards. Our H&S function has also strengthened engineering-related processes, by creating a machine-safety concept aimed at improving the safety of older machines, and by developing health and safety design guidelines for new machines and buildings. In addition, we've updated the engineering project manager's manual, introducing health and safety criteria to ensure the safe planning and execution of engineering projects. Creating our annual H&S Strategic Plan is a key moment in the year, when we define the strategy for aligning all areas of the business within a common framework. We revised the plan for 2021/22 in line with our H&S function, expanding our strategic direction to include the following: H&S training specific to leaders and managers, HR business partners and front-line operators. • Continued development and implementation of mandatory Group H&S procedures for the highest-risk activities, and minimum requirements for all sites to adhere to. Step-by-step global roll-out of H&S activities for the commercial and non- manufacturing parts of the organisation, focusing on office safety and safe driving. • Last year's roll-out of the remaining sites for our root-cause-analysis methodology (Apollo RCA). • Targets for leading KPIs, to be defined and monitored with the help of established dashboards. • Detailed analysis of the safety of our machinery (part of our improvement of H&S engineering in machine safety), to be carried out in cooperation with qualified external suppliers. This will help us understand our weaknesses and how to overcome them. 76 <
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