Investor Presentaiton slide image

Investor Presentaiton

Ferrero Group Sustainability Report 2022 Introduction Our sustainability progress Our reporting F Human rights and social practices Our overall aim is to foster a more equitable value chain for the people involved in palm oil production at every level. Unethical recruitment practices are identified as one of the major labour risks within the palm oil industry, and these include passport retention and restriction of movement, debt bondage and unfair recruitment, wage-related issues and forced overtime, restriction of freedom of association, and poor living conditions and standards. Through selected programmes, we aim to improve working conditions and build the resilience of workers on small to medium-sized plantations. The challenge is to measure the level of social non-compliance and provide adequate support to intervene. We require our suppliers and partners to follow the strict guidelines outlined in our Human Rights Policy Statement, Supplier Code and Palm Oil Charter. We source RSPO-certified segregated palm oil, which is produced according to a set of stringent environmental and social principles. We also take pride in investing in training for smallholders and helping them shift to more sustainable business models. If we identify non-compliance among our suppliers, we immediately put remediation in place by requesting corrective action plans, and we work with them to implement the plans. If issues are not resolved, we reserve the right to terminate the business relationship. You can read more about the grievances mechanisms and verification in the Palm Oil Charter. The Earthworm project in Malaysia Earthworm Foundation aims to transform people's relationships with nature and use the influence of leaders in the supply chain to create a market for responsible oil. We launched a new project with Earthworm in 2021, with a focus on human and worker rights. The programme continued in 2022 and supported one of our third-party suppliers in adapting their labour practices and ensuring fair, safe and decent living conditions for workers. A second programme was launched in 2022 with one of our key direct palm oil suppliers, with a clear focus on ethical recruitment practices. 70 workers, direct and contracted, were involved in the two programmes in 2022. Earthworm southern-central forest spine landscape We are directly contributing to landscape transformation in Malaysia, along with other industry leaders. Our work on this includes direct supply-chain transformation, forest protection and restoration, and resilient farmers and workers' rights. Key targets are to be met by 2025, among which will be helping more than 18,000 migrant workers through ongoing labour programmes. Environmental protection Collaborating with suppliers is key to our aim to protect standing forests or restore natural forest areas, to generate positive carbon and biodiversity impacts. This means having a clear map of the high conservation value (HCV) and high carbon stock (HCS) areas associated with the palm oil we source. We also use a satellite monitoring system to ensure our suppliers protect these areas. We recognise the role natural habitats, soil and water play in regulating our climate and ensuring a healthy, biodiverse home for humans, plants and animals. We also recognise the palm oil plantations we source Deforestation verified 20 and mitigation in progress Under investigation Deforestation-free Sep-20 100 8 from are connected to this wider landscape. The health of these plantations is linked to the farming and production practices adopted, as well as the wellbeing of the surrounding environment. Using Starling Building on our strong investment in RSPO SG17 and thereby traceability to plantation level, we monitor all of our Ferrero 18 palm oil supply chain for deforestation and conversion with the Starling satellite technology, covering more than 1.3 million hectares of land 19. This enables us to identify deforestation in near real-time, and where exactly it occurs, enabling fast and targeted management of deforestation. Mar-21 Aug-21 Sep-22 100 100 100 2 4 1 99 98 95 92 17. Not including acquired products that have joined the Ferrero extended family in the past few years. 18. We currently monitor Ferrero's products, which do not include acquired products (Thorntons, Fannie May, brands that were under Nestlé's chocolate business in the USA, and Ice Cream Factory Comaker.) 19. As per our H1 2022 mill list. 20. Deforestation within 20 km radius only when estate not mapped; <2% of volumes. 51 <
View entire presentation