Ferrero International: A Leader in Palm Oil Sustainability The 2016 Orangutan Conference Henry Vilas Zoo Madison, Wisconsin August 18, 2016
Who We Are
About Ferrero Original Site: ALBA, Italy Current International Headquarters: LUXEMBOURG
A Highly Ethical & Responsible Company Ferrero is conscious that today its products need to be innovative in a new dimension: in a world of increasing population and increasingly scarce and expensive raw materials, a greater sustainability of those same products is urgently needed. Giovanni Ferrero Sharing Values to Create Value 2009/10 Corporate Social Responsibility Report June 2011
Ferrero, the maker of Nutella, is actually one of the more progressive consumer-facing companies when it comes to palm oil sourcing. Ferrero was one of the first companies to announce a policy to end the use of deforestation palm oil. It was one of the first companies to support the Palm Oil Innovation Group committed to protecting forests, peatlands and wildlife, as well as preventing exploitation of workers and local communities. http://www.greenpeace.org/international/en/news/blogs/makingwaves/nutella-palm-oildeforestation/blog/53269/
Ferrero Commitment to Palm Oil Sustainability Source ONLY palm fruit oil that is 100% sustainable palm oil certified RSPO as segregated.
Key Milestones on Our Journey To Sustainable Palm Oil Step 1: RSPO Step 2: Ferrero Palm Oil Charter Step 3: POIG 2005 2005 2013 2014/ 2015 2016 2015 Sustainable Sourcing Commitment Achieved
2005 Ferrero Becomes Member of RSPO
2013 Ferrero Launches Palm Oil Charter Proprietary pledge, in partnership with TFT (The Forest Trust), that extends Ferrero s palm oil sustainability commitment beyond certification to address more robustly the issues of deforestation and labor rights, deploying a rigorous, time-bound implementation strategy and a monitoring verification protocol (in progress).
We are very pleased to see an ambitious move from a wellknown company that is sending a strong message to the industry. What is very significant here is that this is Ferrero s own Charter This encourages everyone around them to innovate and think about new ways to tackle the challenges of tomorrow. Bastien Sachet, TFT Director
10 Principles of the Ferrero Palm Oil Charter 1. Providing fully traceable oil, while including smallholders 2. No clearing of High Carbon Stock forests 3. No use of fire to clear land 4. No planting on peat soil 5. Protecting orangutans and other endangered species by maintaining High Conservation Value areas 6. Reporting on greenhouse gas emissions of production 7. Respecting human rights, including the right to Free, Prior and Informed Consent of indigenous and local communities 8. Recognizing, respecting and strengthening the rights of workers 9. No use of paraquat 10. Actively fight corruption
Charter Fundamentals Monitoring Field Assessments & Documentation Verification vis-à-vis Charter Principles Transparency Six month public reporting on progress of Charter implementation
2014/ 2015 Supporter/Member of Palm Oil Innovation Group Multi-stakeholder coalition: FMCGs: Ferrero, Danone + smaller entities Growers: Agropalma, Daabon, Musim Mas NGOs:
2015 Ferrero Achieves Commitment One Year Earlier As of January 2015, ALL Ferrero products are produced with only palm fruit oil that is 100% sustainable palm oil certified RSPO as segregated.
2015 Endorses High Carbon Stock Approach
2015 Traceability Recorded Mapping of origin plantations: 100% of supply mills (63) 99.5% of supply plantation/farms (301) Peninsula Malaysia (76% of total volume) Papua New Guinea (18%) Insular Malaysia (4%) Brazil (1%) Guatemala & Solomon Islands (0.1% each)
2015 Palm Oil Charter Verification Protocol 1. CHARTER Incorporates Ferrero s values & sustainability commitment 3. DASHBOARD Provides transparency of progress & verification of protocol outcomes 2. PROTOCOL Describes process to ensure Charter is properly implemented 4. 3 RD PARTY AUDIT Validates impartially progress, outcomes, etc.
2016 Endorses: Free and Fair Labor in Palm Oil Production: Principles & Implementation Guidance
2016 Greenpeace Scorecard 2016 Greenpeace Applauds Ferrero
Partners Are Critical to Success Certifications / Standards Certifications / Standards RSPO POIG Our Approach Sustainable Supply Chain Projects/ Partners Projects/ Partners TFT Airbus SarVision Institutional / Collective Engagement Ferrero IIASA
In achieving 100% segregated certified sustainable palm oil within the context of the Roundtable on Sustainable Palm Oil, Ferrero has demonstrated that it is tackling tropical deforestation in a credible way. Richard Holland Director WWF Market Transformation Initiative
Thank you!