The company said its Cocoa Charter is built around four key pillars: sustainable livelihoods, human rights and social practices, environmental protection, and supplier transparency.
A key achievement for Ferrero in the farming year 2021-22 was providing around 64,000 farmers with one-to-one coaching on farm and business planning, with 40,000 farmers supported with individual long-term Farm Development Plans.
The report also revealed a continued high level of traceability from farm to purchase point. Ferrero polygon mapped more than 182,000 farmers, and also covered 470,000 hectares of agricultural land with deforestation risk assessments to ensure no cocoa was sourced from protected areas.
Marco Gonçalves, Chief Procurement and Hazelnut Company Officer at Ferrero, said: “It’s our ambition to be a true force for good in the cocoa sector, ensuring that production creates value for all. We’re very proud of the results we have delivered to date, and we will continue to champion best practice in responsible sourcing.”
Alongside the Progress Report, Ferrero has disclosed its annual list of cocoa farmer groups and suppliers as part of its commitment to transparency across its cocoa supply chain. The company said it aims to source all cocoa from dedicated farmer groups through supply chains which are fully traceable to farm level.In the 21/22 crop season, Ferrero sourced approximately 70% of its cocoa as cocoa beans that the company processes in its own plants and uses in its products like Nutella.
Ferrero bought these beans as physically traceable, also known as ‘segregated’, which means the company can trace these beans from farm to its factories. Ferrero also said it continues to maintain long-term relationships with farmer groups through its direct suppliers.
Approximately 85% of Ferrero total cocoa volume is already sourced from the dedicated farmer groups it supports through the Cocoa Charter. Of these groups 80% have been in Ferrero’s supply chain for three years or more, and 15% for six years or more.
The company continues to scale its cocoa sustainability efforts as part of the Cocoa Charter with “the aim of improving the livelihoods of farmers and communities, protecting children’s rights and safeguarding the environment,” it claimed.