Investor Presentaiton
Ferrero Group
Sustainability Report 2022
Hazelnuts
Introduction
Our sustainability
progress
Our reporting
F
Hazelnuts characterise the unique
taste of many Ferrero products.
Thus, we aim to be a driving force
behind a hazelnut industry where
hazelnut production creates value
for all.
A challenging context
Risks in the hazelnut supply chain arise from
several complex, systemic and deeply
ingrained challenges in producing countries.
For example, Turkey, among other places,
attracts seasonal migrant workers who travel
with their families and lack access to schools
and childcare. This sometimes results in
exploitation, such as bonded labour or child
labour, poor working conditions and
inadequate accommodation.
Traceability is another challenge. Hazelnuts
are grown mainly on small-family orchards, so
large-scale use of them can involve highly
complex supply chains with a variety of
intermediaries and data-processing systems.
We are working to increase supply-chain
traceability and transparency through
development programmes designed to fully
cover our sourcing areas. Tracing our hazelnuts
back to farm level gives us confidence in how
they were grown, and enables us to support
farmers and suppliers in developing better
social and environmental practices.
We work hard to minimise the environmental
impact of hazelnut growing in all our sourcing
countries. We have agreed long-term projects
with leading universities, agricultural research
centres and international subject-matter
experts to improve the sustainability of
hazelnut production worldwide. Priorities for
the industry include optimising water use for
irrigation, improving agricultural inputs, and
testing and implementing integrated pest-
management practices. We are also
investigating innovative approaches to
maintaining or increasing the level of organic
matter in soil, and so helping minimise the use
of mineral fertilisers.
With strategic support from Earthworm
Foundation, we developed the Ferrero
Hazelnut Charter, published in 2021. This
outlines our long-term commitments, with
specific short-term objectives (2023), to take
the lead in creating a hazelnut industry that
benefits everyone involved.
The Charter is based on three pillars that apply
to all our hazelnut suppliers, the three themes
Our distinctive sourcing approach being common to other Ferrero raw materials
Our hazelnuts come mainly from Turkey, Italy,
Chile and the US. They are sorted, cracked,
shelled, calibrated and selected in plants
before shipping to Ferrero. We carry out
stringent quality checks before the roasting
process, to guarantee excellent product quality
for consumers.
Since 2000, we have been directly involved in
the hazelnut supply chain and are encouraging
cultivation in areas of the world such as Chile,
Oregon, Georgia and the Balkans. This is to
guarantee a high-quality supply of fresh
hazelnuts throughout the year. We grow
hazelnuts on our own farms in these countries
through the Ferrero Hazelnut Company (HCo),
a fully integrated value-chain company with
activities from farm to factory. This integration
maximises the potential for quality
improvements and innovation.
Our ambition is to help the hazelnut industry
evolve so farmers and their communities thrive,
workers' and children's rights are
unequivocally respected, and environmental
values are enhanced through regenerative
agricultural practices. We also continue to
promote capacity-building and improvements
along the value chain.
and commodities.
Hazelnut Charter
Human rights and
social practices
Ferrero committing to
joyful growth and child
protection across its
sourcing
01
Hazelnut
traceability to
farm gate
(FY 2021/22)
79%
Environmental
02
42
protection/sustainability
Ferrero applying the
principles of regenerative
agriculture on its farms
and across selected
territories
45
FERRERO
<
03
Supplier transparency
Ferrero achieving farm
gate traceability to farm
level for all its sourcing
The three pillars are founded on a DUE DILIGENCE PROCESS which covers all Ferrero suppliers.View entire presentation