ANNUAL HAZELNUT ACTION PLAN 2021 - Ferrero Sustainability
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2021 ANNUAL HAZELNUT ACTION PLAN
FERRERO – RESPONSIBLE SOURCING APPROACH THE FOUR-STEP RESPONSIBLE SOURCING APPROACH IS
ALIGNED TO OUR POLICIES AND GUIDES OUR CHARTERS FOR
OUR KEY RAW MATERIALS:
Responsible sourcing is embedded in the way Ferrero does business.
At Ferrero we take a continuous improvement approach to responsible
sourcing. Our approach is built around supplier management, a robust due
diligence, traceability and transparency, certifications and standards. We
know more can be achieved together and long-term partnerships and Programmes
collaborations are essential. We take a risk-based approach and when needed Standards and
we invest in our supply chains through targeted programmes to improve their Supplier Risk
Supply Chain Certifications
environmental, social and governance (ESG) conditions and their overall Visibility
Management
standards. Through the activities of our sustainability programme, Ferrero (Due diligence)
Farming Values (FFV), we work to make a difference to the supply chains in
which we operate.
Our responsible sourcing approach is founded on four steps (illustration on
the right). Our Supplier Code reflects our basic requirement of Supplier Risk
FERRERO
Management (Due Diligence). The building blocks above this step refer to our SUPPLIER CODE HAZELNUT CHARTER
Charters for our key raw materials, including hazelnuts, palm oil and others. We, the Ferrero Group (Ferrero) believe that partnerships and collaboration with
our suppliers is a mutually beneficial and inclusive way to ensure responsible
sourcing throughout our supply chain. Partnerships build trust not only with our
We, the Ferrero Group (Ferrero) seek excellence along the whole value chain, with
particular focus on social and environmental quality of the raw materials that we rely
on for the production of our products.
Through this Charter, we state our ambition for a hazelnut industry that is good for
Learn more in our Sustainability Report.
suppliers, but also along the entire value chain. We are committed to working people and nature, and our commitment to make this ambition a reality through
with our suppliers on a journey of continuous improvement and strongly believe activities of hazelnut production and sourcing.
it will create common and shared benefits to us, our suppliers and all
communities where we operate.
This Supplier Code allows us to engage our Suppliers and ensure a supply chain OUR AMBITION We know more can be achieved together. We see
that is fair, sustainable and transparent. Our ambition is to be a driving force behind a partnerships and collaborations with suppliers,
hazelnut industry where hazelnut production farmers, farmer communities, NGOs, scientists,
The Hazelnut Charter sets out our vision for a hazelnut industry which,
creates value for all; farmers and farming universities, local and national authorities, peer
communities are thriving, workers’ and children’s companies and other industry stakeholders as
rights are unequivocally respected, and fundamental to achieving our ambition.
environmental values are enhanced through We detail our ambition and our commitment
1. CONTEXT 2. APPLICATION AND SIGNIFICANCE
regenerative agriculture practices. under three pillars:
This Supplier Code is subject to the Ferrero’s This Supplier Code applies to all Suppliers, i.e. all
through continuous improvement, creates value for all. It outlines our
For Ferrero, ensuring compliance with our own 1 Human Rights and Social Practices
Human Rights Policy Statement and is vendors and sellers that produce, trade, sell,
principles (Ferrero’s Human Rights Policy
complimentary to the Code of Business Conduct lease and/or provide goods or services that enter 2 Environmental Protection / Sustainability
Statement and Ferrero Supplier Code), with
(COBC) and, therefore, does not amend and/or Ferrero’s supply chain and where such vendors 3 Supplier Transparency
override the COBC and/or any provisions and/or and sellers have a direct commercial relationship applicable laws and regulatory requirements is a
any agreements, arrangements and contracts with Ferrero (Supplier). Basic Requirement. We monitor compliance of Under each pillar we explain what is important to
with the Supplier. our suppliers to these requirements through Ferrero, followed by specific commitments on
long-term commitments with specific mid-term objectives (2023). Our aim is
This Supplier Code focuses on three pillars that value chain traceability, a robust Due Diligence selected priorities and initiatives (“Go Beyond”
This Supplier Code will be followed by a due are strategically important for the Ferrero Group: and Consequence Management approach. We section).
diligence-based approach. Upon completing the Human Rights and Social Practices, highlight clear principles and expectations under
due diligence, the Supplier Code may be followed Image 1 below captures under each pillar our
Environmental Protection and Sustainability the Basic Requirements which we require our
by specific Charter documents establishing initial high-level commitments we have
Ferrero’s commitments based on selected Supplier Transparency. suppliers to acknowledge through the Ferrero
Supplier Code. established until December 2023. These will be
priorities of the Ferrero Group. Each of the areas set out in this Supplier Code matched with more granular targets as we
to be a driving force behind a hazelnut industry where farming communities
requires the development and deployment of At the same time, we are convinced that Ferrero publish separately to this Charter our annual
multiple initiatives on an ongoing basis. We must Go Beyond the basics in order to fulfil our Action Plan and Progress Report.
recognize the need to collaborate with our ambition. Ferrero understands that to foster
Suppliers on each of these initiatives to develop change and accelerate adoption, we must Go
specific and achievable targets, milestones and
Beyond compliance and consequence
projects in each of these areas. The
management alone, by taking a proactive
are thriving, workers and children’s rights are respected, and environmental
implementation process will be reasonably
tailored to the size and associated risks from a position on selected priorities and initiatives to
Supplier’s operations. create new solutions to complex challenges.
values are enhanced through regenerative agricultural practices.
FERRERO GROUP HAZELNUT CHARTER 1
FERRE O GROUP FERRERO SUPPLIER CODE 1
2021 ANNUAL HAZELNUT ACTION PLAN
HOW FERRERO WILL
IMPLEMENT THE HAZELNUT
CHARTER
HAZELNUT
ACTION PLAN
HAZELNUT
PROGRESS REPORT
HAZELNUT CHARTER The Hazelnut Charter
outlines Ferrero’s
An action plan transforms
the ambition and
Periodic progress reports
will share evidence and
responsible sourcing commitments into challenges on the
The Charter lays out our requirements and commitments for sourcing
ambition and concrete actions, milestones outlined in the
hazelnuts responsibly. commitments until 2023. highlighting key action plan.
Within this action plan we outline the steps we are taking to meet our milestones.
commitments. Additionally, we will transparently share not only our
progress, but also the challenges we face along the way. We will do this
by publishing progress reports and updating our action plan each year.
RESPONSIBLE CHARTER REQUIREMENTS
SOURCING APPROACH AND COMMITMENTS KEY ACTIONS (YEAR 1)
PILLAR I: Human Rights and Social Practices Joyful Growth: Nr of children reached
Deployment of the project in targeted areas
Programmes PILLAR I: Community Development Pilot Project
in Turkey
Regenerative agriculture: Nr of Farm
PILLAR II: Environmental Protection / Sustainability
Management Plans deployed at Agrifarms
Supply Chain Visibility Traceability: Sourcemap platform % of
PILLAR III: Supplier Transparency
traceability at farm level
FFV Production Standard & Sustainably Grown
Standards and Certifications “Hazelnut Standards”
Certification: Nr of audits performed
Supplier Risk Management Due Diligence Basic Requirements - Due Diligence Supplier Code: % acknowledged
2021 ANNUAL HAZELNUT ACTION PLAN
01HUMAN RIGHTS AND SOCIAL
PRACTICES
02 ENVIRONMENTAL PROTECTION /
SUSTAINABILITY
03SUPPLIER
TRANSPARENCY
Fostering a more equitable value chain for the In partnership with farmers and suppliers, fostering Knowing where our raw materials come from and
people involved in hazelnut production the principles of regenerative agriculture to fostering data management and reporting
Commitment: Joyful growth and child protection across enhance farm biodiversity, improve soil health and Commitment: Ferrero achieving full traceability to farm level
Ferrero’s sourcing farmers’ climate change resilience for all its sourcing.
Commitment: Ferrero applying the principles of regenerative
agriculture in hazelnut farming on its farms and across selected
territories
What does this commitment mean? What does this commitment mean? What does this commitment mean?
For Ferrero, child protection means that we are determined to prevent and Regenerative agriculture principles allow farmers to work better with Traceability is essential to build a sustainable value chain. It enables us to
eliminate child labour all along our value chain, through a multi-stakeholder nature. The principles of regenerative agriculture that we seek to promote monitor where our hazelnuts come from and to verify the conditions under
approach, with the conviction that every child should be protected, by include focusing on building soil health, finding agro-ecological ways to which they are produced.
experiencing joyful growth through a right to education and a safe manage inputs and enhancing biodiversity. We believe that as a perennial
environment. Tackling child labour requires a long term and collective long-term tree crop, hazelnut trees have the potential to contribute to How will we work towards our commitment?
response. This must be done through a holistic approach involving farming farming landscapes if managed well. We will work towards further enhancing the visibility of our value chain by
communities and where private sector, civil society, government and public strengthening the partnerships with our suppliers and by using the most
authorities work actively together. Child labour has been documented in the
How will we work towards our commitment? advanced technology. We will do this by implementing a more consistent
agricultural sector in Turkey across different crops, including hazelnuts. As a first step towards this commitment we will establish Farm methodology and by developing a hazelnut-dedicated platform to trace
Addressing this involves the need to improve working conditions, especially Management Plans (FMPs) for our Agrifarms, to allow us to evaluate the raw materials from farm to factory.
for seasonal workers during the harvest. application of these principles. The FMPs are our baseline assessment and
guide towards achieving specific aims to implement measures to restore, Who will we work with?
How will we work towards our commitment? maintain and improve the wellbeing of the biodiversity and natural We are partnering with the traceability provider, Sourcemap. Through
We will support and implement initiatives to improve social practices in the resources of the farms. Additionally, we will work to identify High Sourcemap’s platform, we will be able to support the value chain through
hazelnut sector with a focus on working conditions and enhancing farmer Conservation Value areas in our sourcing landscapes and accordingly data science, detect tomorrow’s agricultural and social challenges, and
resilience. implement management plans to enhance these. We will integrate the ensure performance is continuously improving.
concepts of Soil Health, Water Management, and Integrated Pest
Who will we work with? Management in our engagements with farmers.
We will do this through the activities of our FFV team on the ground
engaging with farming communities, as well as by partnering with relevant Who will we work with?
organisations such as the ILO, Earthworm Foundation, and local NGOs. The experts in our Agri Competence Centre (ACC), will work together with
our local agronomists on our Agrifarms in establishing the FMPs. This work
will be in done in collaboration with global experts and local partners.
2021 ANNUAL HAZELNUT ACTION PLANGLOSSARY
TERM DEFINITION
Ferrero’s key partners in its Hazelnut Responsible Sourcing Programme are specialised and experienced
Programmes organisations including the ILO, Earthworm Foundation and SCS Global Services.
The project will focus on enhancing farmer resilience and reducing social risk. It will involve farmers, workers
Community Development Pilot Project and community members to assess and identify solutions to be applied within our FFV programme.
Our baseline assessment and guide towards implementing the principles of regenerative agriculture on our
Farm Management Plans farms.
Ferrero works with Sourcemap on the journey to full traceability to farm level. In Italy we are also supported
Supply Chain Visibility
by DNV.
Ferrero co-created, in partnership with third party partners, its own standard, The Ferrero Farming Values
Standards and Certifications (FFV) Production Standard. At our Agrifarms we apply the Sustainably Grown certification.
Supplier Code Acknowledgment for Ferrero means that the supplier signs the Supplier Code.
2021 ANNUAL HAZELNUT ACTION PLAN2021 ANNUAL HAZELNUT ACTION PLAN
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