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.
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