Investor Presentaiton
Ferrero Group
Sustainability Report 2022
Introduction
Our sustainability
progress
Our reporting
F
Of our cocoa volume, 15% was sourced from
the sustainability network of our tier-1 suppliers.
The sustainable farmer groups that are part of
this network are also supported through our
sustainability programme. The difference here
is that our suppliers source cocoa beans from
these farmer groups for various customers, not
only for Ferrero. For the rest, the sustainability
approach with these farmer groups is the same
as with our other farmer groups, ensuring that
our minimum requirements for traceability,
monitoring systems and so on are met, and
farmers and communities are supported in
improving their conditions.
In January 2021, we achieved our objective
to source 100% of our cocoa through
independently managed standards¹. For Ferrero
standards provide an important starting point
as our farmer groups are audited on critical
control points like traceability and verification
of the payment of the sustainability premium
on top of the commercial price and good
agricultural, social and environmental Practices.
We are convinced though that Ferrero must
'Go Beyond' compliance alone to contribute
in a meaningful way to a thriving cocoa sector
that is good for people and nature.
Ferrero cocoa supply chain: a distinctive sourcing approach
Cocoa sourcing
portfolio²
32%
Chocolate and
cocoa products³
68%
Cocoa beans
Standards and
Certifications
100%
Sourced
Through independently
managed sustainability standards
Traceability
Ferrero Cocoa Program
3% not covered by
Ferrero Cocoa Program
4%
15% network farmer
groups from tier-1
82%
Ferrero dedicated
farmer groups
Known farmers
and communities.
not traceable to farm level
96%
Traceable to
farm level
Sustainable livelihoods
Cocoa farmers face significant challenges in
securing a sustainable living. Many factors
lead to low yields and incomes: poor farm
design and management, small plots, ageing
trees, diseases and pests, limited access to
affordable and appropriate agricultural tools
and materials, lack of financial access and
literacy, and limited access to agricultural
education, infrastructure and technologies.
What have we achieved?
It was again a difficult year, particularly for
cocoa farmers and communities, who faced
many challenges like increased costs of
fertilisers. But despite these challenges, we've
managed to make important progress in key
areas of our Charter.
Particular highlights this year are: the
completion of our four-year CFI action plan,
where we reached the targets we set back in
2018, and in many cases even surpassed them;
the implementation of year two of our five-year
holistic community-development programme
with Save the Children in 65 communities in
Haut-Sassandra region, in close collaboration
with the local authorities and our suppliers;
and the development of a collective CFI farm
dataset involving about 20 companies that
shared a substantial number of farm polygons
for Ivory Coast and Ghana with the World
Resources Institute, which will apply its
Deforestation Risk Assessment methodology
to the dataset.
Cocoa
traceability to
farm gate level
(FY 2021/22)
96%
Note: considering traceable to farm gate if minimum GPS
waypoint available.
Another important milestone was the official
launch of the CLEF aimed at providing children
in cocoa-growing communities in Ivory Coast
access to quality education.
In July 2022 we signed alongside other
companies a Letter of Intent to support the
government of Ivory Coast and Ghana to
evolve the Living Income Differential and set
up the right mechanism to support farmers'
living income and help ensure the
sustainability of the sector.
1. These standards include certification schemes like
Rainforest Alliance and Fairtrade and verified
sustainability programmes of our suppliers like Cocoa
Horizons, Cargill Promise Cocoa and Beyond Beans.
The complete list of standards we apply to our supply
is publicly reported in our Cocoa Charter and Cocoa
Progress Report.
2. Perimeter: Ferrero, Thorntons, Fannie May and former Nestlé U.S. chocolate confectionary business.
3. Cocoa powder, liquor and butter.
4. Minimum GPS waypoint.
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