FERRERO’S DEDICATION TO A DEFORESTATION-FREE GLOBAL COCOA SUPPLY CHAIN

Ferrero recognizes that deforestation and forest degradation is a critical issue of the global cocoa supply chain. Deforestation threatens to undermine the very resilience of the cocoa sector itself and with it the livelihoods of the millions of smallholders who depend on it. There is cocoa farming happening in High Conservation Value (HCV) areas in West Africa, where farmers have been growing cocoa for many years.

Ferrero is committed to working on the challenges to end deforestation in the cocoa sector, as well as implement key principles and strategies that underpin socially and environmentally sustainable cocoa production.

Ferrero signed the New York Declaration on Forests by the United Nations and endorsed the HCS Approach (HCSA), a methodology enabling companies to understand forest areas to be protected for their high carbon and biodiversity values.
Additionally, Ferrero signed the Cocoa and Forests Initiative letter of intent in March 2017. This framework involves key industry members and is organized by the International Sustainability Unit, the World Cocoa Foundation and the Dutch Sustainable Trade Initiative. Its goal aims to develop an actionable suite of measures to end deforestation and forest degradation, such as investments in more sustainable forms of landscape management and more active partnerships to protect and restore forests in the cocoa landscape. Ferrero expects the Cocoa and Forests Initiative to commit to a clear cut off date by which industry will have implemented traceable sourcing to farm level.

Furthermore, by 2018 Ferrero will have mapped 100% of its cocoa supply chain to farm-gate level (we are perfectly on track with our targets and today already over 50% is mapped). This allows us to identify areas of intervention such as reforestation and the distribution of local shadow trees. Moreover, we are working together with Airbus Defense and Space on a project, already successfully launched in our palm oil supply chain, that uses satellite maps to closely monitor land-use change over time.

Safeguarding natural capital, in particular the last remaining forests in cocoa growing countries, is a priority for us: we will support the financing of collective and individual efforts throughout partnerships and programs.

With respect to better livelihood of farmers and their communities, we will continue our work through partnerships such as the ones established with Fairtrade & Cooperative Union ECOOKIM as well as with Save the Children.

Ferrero welcomes the assessment and input by third parties, such as Mighty Earth, which will support Ferrero in achieving its goals, in line with both its internal policies and the Cocoa and Forests Initiative.