Investor Presentaiton
Ferrero Group
Sustainability Report 2022
Palm oil (continued)
Introduction
Our sustainability
progress
Our reporting
F
TRAILS
Agroforestry represents an opportunity to
strengthen biodiversity reservoirs, by
reintroducing different tree species into palm
groves, to improve long-term environmental
and socio-economic resilience.
Since 2020, and through 2022, Ferrero
supported the TRAILS agroforestry project,
coordinated by CIRAD21, in Malaysia. The
project aims to create landscapes where
people and wildlife can coexist peacefully. It
links academics, NGOs, and private and public
stakeholders to enable integrated approaches
to reforesting wildlife corridors (one of the key
components in preserving biodiversity and
climate resilience in fragmented plantation
landscapes) while also tackling rural poverty.
Its activities include:
• Identifying and replanting areas with
mixed forest species and selected oil palm
seedlings.
•
Monitoring wildlife recolonisation.
Studying different oil palm methods and
yields.
Providing environmental services to aid
climate resilience; and
• Studying the socio-economic impact of
changes in agroforestry systems.
One aim is to involve local communities in
preserving orangutan habitats within
landscapes dominated by oil palm plantations.
Another important project activity is to help
local women establish a nursery to produce
tree seedlings for reforestation and oil palm
systems.
Integrated pest management (IPM)
For a sustainable supply chain, we need to
ensure we reduce the impact of pesticides and
other agri-chemicals, so we can develop
resilient, nature-based and biodiversity-
friendly production practices. Since 2021, we
have been part of a pilot project led by the
Sustainable Agriculture Network (SAN), a
global collaborative focused on helping
farmers and rural communities thrive, and
companies progress their sustainability
agendas.
During 2022, alongside SAN, we conducted
research in oil palm smallholdings in Malaysia,
to better understand how plant diversity can
be an effective nature-based solution for
suppressing insect pests. The research
represents the start of a programme to
encourage palm oil producers to adopt
enhanced biodiversity conservation practices,
establish habitats for beneficial insects, and
reduce the usage of artificial pesticides.
2022 results included identifying the ideal
plant species to be propagated in the next
stage of the project, as well as new findings
about the significant potential of some natural
weeds as a resource for beneficial insect
populations.
The outcomes from the research will inform the
next phase of the programme, and will also
contribute to a growing body of knowledge on
the benefits of agriculture biodiversity for
producers, nature and society using flower
strips, and managing the forest understory
layer.
Supplier transparency
We aim to always know where our raw
materials come from, right down to the estate
and farm level. Aside from enhancing the
transparency of our supply chain, this helps us
foster a deeper relationship with our business
partners and farming communities, while
deeply understanding the key challenges we
need to address.
We aim to source only RSPO-certified
segregated palm oil so we can trace it back to
mill and plantation level. We are currently
working to extend this commitment to
products we have acquired in recent years.
This process can take some time, as it depends
on the complexities of post-acquisition
integration processes.
Looking at the full scope 22 (Ferrero and
acquired brands), between July 2021 and June
2022, the palm oil we sourced was 99.6%
RSPO-certified segregated palm oil and 0.4%
conventional palm oil. Of this total, 99.5% is
traceable back to plantations.
Specifically for our legacy products (Ferrero
only), all the palm oil we use is 100% RSPO-
certified segregated palm oil (of which more
than 6% is POIG-verified), with 99.95%
traceability to 146 palm oil mills and 722
plantations.
RSPO-certified
segregated
palm oil sourced
(FY 2021/22)
99.6%
Our main palm oil suppliers for the 2021/22
reporting year were: AAK, Agropalma, Cargill,
Daabon, EULIP, Fuji Oil, Graincorp, ISF, Lipidos
Santiga, Musim Mas, Unifuji, Unigra, Bunge
and Olam.
52
<
21. Centre de coopération internationale en recherche
agronomique pour le développement -
Le Cirad en bref | Cirad.
22. Ferrero, Thorntons, Fannie May, former Nestlé US
confectionery business and ICFC.View entire presentation