Ferrero case study: Sustainable Supply Chains
24 February 2021
Ferrero is leading the way to overcome the misconceptions around palm oil and improving the standards across the industry.
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Ferrero has invested in the sustainability of its palm oil supply chain, consistently going beyond the targets and criteria set by industry bodies and independent third parties.
Ferrero has used 100% sustainable RSPO-certified as segregated palm oil in all its products since January 2015 and was one of the first global companies to achieve this. Ferrero has been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2005 and works extensively with its suppliers, requiring palm oil that is traceable according to the RSPO segregated supply chain.
In November 2013, Ferrero launched its Palm Oil Charter which goes beyond sustainable certification and aims to tackle the main causes of deforestation, creating a balance between safeguarding the environment, community needs, benefits and economic feasibility.
The milestones and accolades achieved to date are a testament to the business’ efforts. In January 2020, WWF ranked Ferrero number 1 out of 173 global companies for its support of sustainable palm oil, praising its efforts to address the issue of deforestation and for the transparency of its supply chain.
Beyond this, Ferrero launched the Ferrero Farming Values Palm Oil Programme to focus on palm oil communities and to address the leading causes of deforestation.
Most recently, Ferrero UK has partnered with Chester Zoo and its experts to educate communities on the impact that consumers and industry can have by making more sustainable choices. The partnership enables further support and progression of the Sustainable Palm Oil cities project.
Ferrero is in the process of renewing their commitments and finalising their long term vision including their palm oil plan for 2030. It will be based on the following main objectives:
- Care for Human Rights and Social Practices
- Committing to improved working conditions for 100% of its supply chain
- Improving smallholder livelihoods and inclusion in its supply chain
- Care for Environmental Protection
- Having 100% of its supply chain verified deforestation free
- Protecting existing HCV areas in its supply chain
“Our commitment and determination to work towards transformation of the entire palm oil industry with our suppliers and partners aligns with Ambition 2025’s vision of ‘shaping sustainable value chains’. We strive to maintain a supply chain that is reliable, safe and resilient. Our ambition is to be a “force for good” and we remain fully committed to securing a deforestation-free and exploitation-free palm oil supply chain.”