Chocolate and confectionery company Ferrero says it is committed to address deforestation, child labour, and sustainable livelihoods in its Cocoa Charter and Cocoa Action Plan.
The plan builds in the company’s achievement of 100 per cent sustainably sourced cocoa via third party programs and 96 per cent traceability to farm level.
Ferrero’s cocoa is now sourced via independently managed standards such as Rainforest Alliance and Fairtrade.
Ferrero said it recognised the supply chain for cocoa is “complex and must be addressed through partnership with farmers, industry, communities, NGOs and governments”.
The Charter has four action pillars:
- Sustainable Livelihoods: provide targeted support to farmers to improve productivity and diversify income;
- Human Rights and Social Practices: protect the rights of children in cocoa growing communities;
- Environmental Protection: supporting farmers to convert to agroforesty systems; and
- Transparency: supply-chain traceability, risk assessments.
The Action Plan details how it will deliver on the four areas:
- farm development plans and income-generating activities, paying a cash premium to farmers on top of the commercial price, to support cocoa farmers to prosper;
- partnerships to implement child protection systems and community development plans to address child labour;
- working with the Cocoa & Forests Initiative (CFI) to end deforestation in the cocoa sector and promote sustainable agroforestry; and
- strengthening supplier partnerships and building a platform that gives visibility over Ferrero’s entire supply chain.
Each year a report will be published on the progress made against the plan, with the first progress report expected in Q2 2022.
Ferrero produces Nutella, Ferrero Rocher, Tic Tac, Kinder and Raffaello in more than 170 countries. It has a consolidated turnover of over $19.6 billion globally. It was #80 on the Food & Drink Business 2021 Top 100 Food & Drink Companies report.
