FERRERO PALM OIL CHARTER

Ferrero believes it has a significant role to play in leading the sustainable transformation of the palm oil sector, for the benefit of the environment and of the communities living and working in palm oil-producing countries. We have been members of the Roundtable on Sustainable Palm Oil (RSPO) since 2005. Throughout a robust, publically available, time-bound implementation plan, we have worked extensively with our suppliers within a global responsible palm oil procurement policy requiring palm oil that is traceable according to the RSPO Segregated supply chain. We are on track to achieving 100% traceable segregated, RSPO-certified palm oil by the end of 2014, nearly one year ahead of our original schedule.

Yet Ferrero’s responsibility does not stop at certification, which is just the first step in meeting our employees’ and consumers’ expectations.

Within this framework, we choose to strengthen our commitment to responsibly sourcing palm oil through this Ferrero Palm Oil Charter in order to address the leading causes of deforestation and create the optimal balance between the conservation of the environment, community needs and economic benefit and viability.

We are committed to making sure that our palm oil suppliers are:

1. Providing fully traceable oil, while including smallholders.
2. Not clearing High Carbon Stock forests.
3. Not using fire to clear land.
4. Not planting on peat soils.
5. Protecting orang-utans and other endangered species by maintaining High Conservation Value areas.
6. Reporting on the greenhouse gas emissions of their 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. Not using Paraquat.
10. Actively fighting corruption.

How will we implement this commitment?

Ferrero has agreed with its suppliers to meet the targets of this Palm Oil Charter, and will support them in its implementation. We will work with our NGO partners, including TFT- The Forest Trust- to assess our suppliers, monitor progress in the field and publically report our performance against this Charter.

Timeline

We will engage suppliers immediately to ensure they meet the Charter principles as soon as possible, by the end of 2015. Many of them are already implementing these principles in their production.

Reporting

We will report transparently and publically on progress every six months.