- Cocoa
- Hazelnuts
- Palm oil
- Sugar
- Milk & Eggs
Our Cocoa
Our journey towards responsibly sourced cocoa started in 2005 when Ferrero became a member of the World Cocoa Foundation (WCF). It continued in 2008 with membership of the International Cocoa Initiative (ICI). Both these memberships continue to this day, with strong engagement from Ferrero. In 2011, we committed to source 100% cocoa beans throught independenly managed standards by the end of 2020. In 2019, we broadened the scope of this target to include chocolate sourced from third parties. Ferrero achieved this goal and since January 2021, all the cocoa and chocolate in our products is sourced through leading independently managed sustainability standards.
Where does it mainly come from?
Supporting Farmers The vast majority of the world’s cocoa is produced by smallholder farmers, most of whom live in Côte d'Ivoire and Ghana where we mainly source our cocoa. These two countries together account for more than 60% of the world’s cocoa production. Those farmers encounter the complexities of economic, social and environmental issues, such as lack of access to resources, limited knowledge of good agricultural practices, and climate change.
Ferrero is committed to promote children’s rights. For the children in our cocoa supply-chain this means taking action to tackle child labour and improve access to education and basic needs such as water, sanitation and good nutrition. We are sensitizing farmers on the rights of children, and we are implementing systems designed to identify and remediate cases of child labour, also called CLMRS (Child Labour Monitoring and Remediation System). Remediation can vary from individualized support to children and parents to broader child-centered community development programs that aim to implement mechanisms to protect children, strengthen the educational infrastructure and promote women empowerment. In early 2021, we extended out partnership with the NGO Save the Children to protect children’s rights and promote education in cocoa growing communities in West Africa. Our partnership with Save the Children will benefit 90,000 children and adults in 65 cocoa communities in Côte d’Ivoire over the course of five years.
We also actively support initiatives that have a broader scope than our direct supply-chain. For example, since 2008 we are members of the International Cocoa Initiative, a multi-stakeholder platform that aims to ensure a better future for children and to advance the elimination of child labour.
Safeguard the natural capital Deforestation threatens to undermine the resilience of the cocoa sector and the livelihoods of the millions of smallholders who depend on it. Ferrero is a founding member of the Cocoa & Forests Initiative with other leading global cocoa and chocolate companies to commit to working collaboratively to end deforestation and forest degradation across the global cocoa supply chain.
We have worked for years to reach a high level of traceability and visibility of our supply chain and we use the latest technology to ensure that farms we source from are not located in protected areas. We are implementing a range of measures that are significantly contributing to environmental protection and biodiversity and to limit the impacts of climate change. We train cocoa farmers in good agricultural practices and support in distributing and planting multi-purpose trees, and in developing cocoa agroforestry systems.
Learn more in our Cocoa Charter and our Cocoa Action Plan.
Our Hazelnuts Hazelnuts are our speciality. From farm to factory, we are involved in every aspect of the hazelnut value chain. Our aim is to be a driving force towards a hazelnut industry that creates value for all. The Ferrero Hazelnut Charter developed together with Earthworm Foundation, a non-profit focused on positively improving value chains, outlines Ferrero’s requirements and commitments for the responsible sourcing of hazelnuts. The Charter applies to all our hazelnut sourcing. The approach is based on ensuring compliance with our own policies to which all of our suppliers are expected to adhere, and our belief that we must “Go Beyond” compliance by identifying specific commitments based on selected priorities and initiatives. Our vision for a sustainable hazelnut production means that farming communities are thriving, workers and children’s rights are respected, and environmental values are enhanced through regenerative agricultural practices. The challenges in the hazelnut sector are complex, and in some countries deeply rooted. They vary from country to country and range from the need to improve working conditions for agricultural workers to address social issues such as child labour, to the implementation of integrated strategies to manage pests. We recognise that challenges like these need a holistic, long-term approach. For example, Ferrero is actively engaged in programmes covering its sourcing areas in Turkey, with the aim of contributing to the elimination of child labour in seasonal agriculture in hazelnut harvesting, including work on a project with the ILO (November 2020 - March 2024). This work includes developing public-private partnerships (PPP) that bring together national, regional and local authorities, as well as civil society and private sector actors.
Ensuring quality and freshness Our hazelnuts come from hazelnut orchards, which are mainly found in Mediterranean type climates. We source from different parts of the world, the three main origins are Turkey, Italy, Chile and USA. Turkey’s Black Sea region is the world’s largest producer of hazelnuts and as a consequence where we source the main part of our hazelnuts. Ferrero’s expertise and tradition with this fruit goes back to its roots in Italy, as supply can also be found in Piedmont - where Ferrero was founded - as well as in Lazio and Campania. The harvest takes place between the beginning of August and the end of September.
To ensure the availability of quality and fresh hazelnuts, cultivation is also taking place in countries from the Southern Hemisphere, representing an additional harvest from February to March. As part of this approach, Ferrero has established hazelnut farms (Agrifarms) in Chile, Argentina, and Australia, in addition to Georgia and Serbia. Through these Agrifarms, Ferrero is developing a sustainable business model with local farmers, sharing and promoting good agricultural practices (nurseries, training, agronomic assistance, etc.)
Where does it mainly come from?
Responsible sourcing Responsible sourcing is integral to ensuring a fair, sustainable and transparent value chain Ferrero carefully assesses the best way to source all its raw materials responsibly, such as cocoa and palm oil, as well as hazelnuts.
Fundamental to Ferrero’s responsible sourcing approach are partnerships, collective engagements and supplier management. We expect our partners to uphold our Code of Business Conduct and our Supplier Code, which outline our expectations.
The Ferrero Hazelnut Charter developed together with Earthworm Foundation, a non-profit focused on positively improving value chains, outlines Ferrero’s requirements and commitments for the responsible sourcing of hazelnuts.
The Charter applies to all our hazelnut sourcing. The approach is based on ensuring compliance with our own policies to which all of our suppliers are expected to adhere, and our belief that we must “Go Beyond” compliance by identifying specific commitments based on selected priorities and initiatives.
Ferrero Farming Values
Ferrero Farming Values (FFV) aims to develop sustainable supply chains for our main raw materials, including hazelnuts.
Our Hazelnut FFV programme works to make more quality sustainable hazelnuts available, with a focus on sustainable agricultural and social practices, and on enhancing traceability. We share our know-how from FFV so we can improve hazelnut cultivation in all the countries where we are present.
The programme consists of four areas, tailored to different countries, which brings together the global expertise of HCo: Agri Competence Centre, Agrifarms, Agribusiness Development, Traceability and Sustainability.
Learn more in our Hazelnut Charter, Action Plan and Progress Report and in our HCo website.
Our Palm Oil Sourcing and sustainability approach is based on a few key principles, including:
• Sourcing 100% RSPO certified palm oil as segregated for Ferrero products from a limited number of reliable suppliers*, enabling us to trace our palm oil back to plantation level, while working together with our suppliers to implement improvements and solutions.
• Building on this high level of traceability to plantation level, monitoring our full palm oil supply chain for deforestation with the Starling satellite technology (covering around 1 million hectares of land).
• A Palm Oil Charter and a Supplier Code with standards and requirements, which are also based on POIG requirements and verification indicators and HCSA.
• Disclosing our palm oil supply chain, both for the Ferrero historical perimeter and the acquired products.
* Looking at the full scope (Ferrero, Thorntons, Fannie May and former Nestlé chocolate business) between July 2020 and June 2021, the palm oil we sourced was 99.6 % RSPO certified segregated palm oil and 0.4% conventional palm oil. Of this total, 99.8% is traceable back to plantations.
Where does it mainly come from?
The RSPO has developed a set of environmental and social criteria which companies must comply with in order to produce sustainable palm oil (Certified Sustainable Palm Oil - CSPO). These criteria aim to enforce sustainable practices in the cultivation of palm oil.
The palm oil in Ferrero products comes from a certified ‘segregated’ supply-chain. It is sourced from different certified plantations and is kept separated from ordinary palm oil throughout the entire supply-chain. Through this system, 100% of our palm oil can be traced back to the mills, guaranteeing that it does not come from plantations subject to deforestation.
The 7 principles of RSPO To be certified by RSPO, palm oil growers need to comply with the following seven principles (RSPO Principles & Criteria 2018 update):
- 1
Behave ethically and transparently
- 2
Operate legally and respect rights
- 3
Optimise productivity, efficiency, positive impacts and resilience
- 4
Respect community and human rights and deliver benefits
- 5
Support smallholder inclusion
- 6
Respect workers' rights and conditions
- 7Protect, conserve and enhance ecosystems and the environment
Did you know? As part of Principle 7, the criterion 7.12 requires that new plantings do not cause deforestation or replace any area required to maintain or enhance HCV - High Conservation Value. HCV are biological, ecological, social or cultural values of outstanding significance or critical importance within a landscape.
To discover more, visit here.
Going beyond certification To strengthen our commitments beyond RSPO certification, in 2013 Ferrero developed the Ferrero® Palm Oil Charter working together with suppliers to pursue a path that will avoid deforestation, species extinction, high emission of greenhouse gases and violation of human rights. In 2021 Ferrero further strengthened its commitments and progress through an updated Charter, which has been elevated based on the company’s ongoing learning journey and insights generated by close collaboration with stakeholders at every level, from suppliers to NGOs through to academic partners. The new Charter has been developed with Earthworm Foundation, a non-profit organisation focused on positively improving value chains.
Moreover, to further increase transparency on our supply-chain we regularly voluntarily disclose the latest traceability data on our supply mills.
Our efforts are acknowledged by WWFOur efforts are recognised by trusted NGOs such as WWF. In its 2021 Palm Oil Buyers' Scorecard, which evaluates global companies for their support of sustainable palm oil, WWF lists Ferrero as number 3 out of 227. With a score of 21.7 out of 24, WWF ranks Ferrero as leading the industry of major global retailers, consumer goods manufacturers and food service companies. Ferrero is especially recognised for its efforts that address the issue of deforestation in tropical areas and for the transparency of its supply-chain. This result is a very important recognition for our efforts in sustainable palm oil and a great encouragement to continue our journey.
Learn more in our Palm Oil Charter, Action Plan and Progress Report.
Our Sugar We committed to source all our refined cane sugar throught leading certification schemes by 2020..
We achieved this in August 2020, with 100% cane sugar Bonsucro certified.
Globally and on average we purchase 80% beet sugar and 20% refined cane sugar. In Europe, we primarily source beets from European producers, whilst our sugar cane comes mainly from Brazil, India, Mexico and Australia.
Partnering for a sustainable sugarcane supply-chain We are members of Bonsucro since 2010, a global organisation promoting the sustainable sugarcane production, processing and trade around the world.
Our Milk and Eggs Animal welfare is an important principle of our ethical sourcing initiatives. One of our main objectives is to ensure the progressive improvement of animal welfare standards within the supply chains of animal origin products. In June 2017, we established a multidisciplinary team involving Ferrero experts and Food Animal Initiative (FAI) Farms, a consultancy and research organisation dedicated to driving progress towards food sustainability.
Our objective is to build a comprehensive programme dedicated to animal welfare, improving the quality and safety of our products and the sustainability of our supply chains.
Milk The key issues in developing a sustainable milk supply chain include ensuring high standards of animal welfare, reducing carbon emissions and managing the impacts of dairy farming on water and biodiversity. Through the Ferrero Farming Values Program for milk, we have developed and nurtured long-term relationships with carefully selected local milk producers who adhere to our strict standards. This enables us to assure and improve the freshness and quality of our milk. We strictly adhere to national production regulations covering milk quality parameters (e.g., the absence of antibiotics) on raw milk and other dairy products, whilst ensuring our high quality standards.
How much of our milk is traceable?
We can trace our milk back to dairy farms globally. We work with our suppliers to drive continual improvement and encourage them to adopt best practices in milk production. To create a shift towards greater sustainability in dairy farming, we have a role to play in bringing relevant stakeholders together to engage in constructive dialogue and to identify shared causes and solutions. We will leverage the experience gained through the Vision Dairy journey – including a pilot to understand suppliers' sustainability performance covering both European and global dairy supply chains. The outcomes will be used to develop the Ferrero Milk Charter, to be published by the end of 2021. The Charter will state our ambition for a milk industry that does good for people and nature and reinforce our commitment to deliver this ambition through our own milk sourcing.
Eggs Fair treatment of chickens is the main issue to be addressed in the global egg supply chain. Our egg supply chain is fully integrated, meaning suppliers have control over the full lifecycle of their animals and the feed composition. We are committed to sourcing eggs from cage-free systems for our global supply chain.
How many of our eggs come from barn hens?
OUR 2025 COMMITMENT:
100% of eggs from barn hens.
We reached our objective of using 100% cage-free eggs in the EU in 2014. Our European egg supply chains accounts for 95% of all the eggs we use globally. Our current commitment is to source only cage-free eggs and egg ingredients globally by 2025. In 2013, we developed two new manufacturing plants outside Europe, in Turkey and Mexico. The eggs used in these plants make up approximately 5% of our global consumption and we are working with our suppliers to supply them with cage free eggs, which are not currently readily available within the market, by 2025.