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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Hazelnuts (continued) Introduction Our sustainability progress Our reporting F Environmental protection We work with farmers and suppliers, fostering the principles of regenerative agriculture to enhance farm biodiversity, improve soil health and farmers' resilience to climate change. We apply the principles of regenerative agriculture in hazelnut farming on our farms and across selected territories, from trials optimising water consumption and soil organic matter, to carbon sequestration assessments, and responsible pest and disease strategies. Through our Agri Competence Centre (ACC) we develop and share scientific knowledge to improve quality and productivity and enhance sustainability. The ACC's work includes helping to develop more efficient growing methods and address pest-management problems, as well as to develop new sustainable hazelnut breeds. Guidelines for sustainable hazelnut production We have developed a set of guidelines for farmers, aiming to increase awareness of our views on human rights and social practices, environmental protection and sustainability, and supplier transparency. The guidelines follow the three pillars of the Hazelnut Charter. Under each, we explain what is important to us and why, followed by specific guidelines to help inspire the right practices for responsible hazelnut production. The guidelines are not compulsory, and farmers will be able to offer suggestions for the continuous improvement of the value chain. Case study BMSB monitoring APP As part of our integrated pest- management strategies, we have developed software to monitor the presence of the brown marmorated stink bug (BMSB) (Halyomorpha halys) in the most critical hazelnut production areas. The aim is to minimise the use of plant protection products, reducing the impact on the environment and enhancing biodiversity. Case study Nutrition We are performing a carbon lifecycle assessment (LCA) of the whole HCo supply chain. It aims to better understand the carbon emission and carbon sequestration potential of hazelnut orchards, but also includes post-harvest processing and handling, and transportation along the entire hazelnut lifecycle. The ultimate goal is to identify what growers and the industry can do to decrease the carbon footprint of the whole supply chain. Case study Optimised hazelnut irrigation We promote research on regenerative hazelnut cultivation by working with research institutions. One of the most important research activities is how to optimise water resources in hazelnut orchards. In addition, we are developing cutting-edge research on hazelnut nutrition, with the aim of helping advisors and growers with more efficient fertilisation plans and to improve soil health in orchards. Monitoring the impact of hazelnut cultivation on bees We have implemented a programme to monitor the health of bees and other native pollinators, as well as to assess the biodiversity index in the main hazelnut- growing areas. Supplier transparency By tracing our hazelnuts back to their origin, we can be confident about how they were grown, and can help farmers and suppliers develop better social and environmental practices. A traceable supply chain also provides a basis for effective monitoring. The hazelnut supply chain includes specific challenges that may be deeply rooted in the environmental and social conditions of each region. These range from the many intermediaries who sell and process the nuts in Turkey, to the limited availability of technology in many hazelnut-cultivating regions. Addressing these issues is crucial to developing a transparent supply chain, and requires close collaboration among all stakeholders, from farmers to final processors. To fulfil our ambition of full traceability to farm level by 2023, we have worked with Sourcemap, a leading provider of supply-chain mapping and digital-transparency solutions, aiming to develop a global traceability platform by tracing hazelnuts from farm to factory. We successfully rolled out Sourcemap's platform to all suppliers in our key hazelnut countries, to use data science to detect incoming agricultural and social challenges, and to ensure improvement. 48
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