ALBA, Italy – Ferrero has published the 2022-2023 Cocoa Charter Progress Report, which outlines its efforts to create value in the cocoa sector, cocoa being one of the key ingredients in Ferrero’s products. The company aims to be a driving force in this sector where the livelihoods of smallholders and farming communities are improved, children’s rights are respected, and the environment is actively protected through sustainable agricultural practices.
In 2022-2023, Ferrero sourced 100% of its cocoa through certification and independently managed sustainability standards. Ferrero also achieved 93% traceability of sourced cocoa beans from farm to first-purchase point via Polygon mapping, exceeding its annual target of minimum 90%.
These special achievements showcase the strides – outlined in Ferrero’s plans – to promote a more sustainable cocoa production over time. In addition to sustainability commitments, the Cocoa Charter Progress Report reaffirms Ferrero’s support for human rights, farmer livelihoods, and developing communities.
“It’s our ambition to play our part by addressing economic, social, and environmental challenges in cocoa-growing communities in our cocoa supply chain and beyond,” said Isabel Hochgesand, Chief Procurement Officer at Ferrero. “The promising 2022-2023 results in our Cocoa Charter Progress Report – for example, supporting 40,000 farmers to pursue income-generating activities, and achieving 93% traceability of sourced cocoa beans via polygon mapping – demonstrate our commitment to a continuous improvement in our sustainability journey.”
Because the cocoa supply chain’s issues are complex, collaboration throughout the value chain with farmers, NGOs, communities, and governments is key to achieving collective progress.
- Sustainable Livelihoods: Ferrero provides targeted support to farmers to diversify income and boost productivity.
- Human Rights & Social Practices: Working in collaboration with Save The Children, The World Cocoa Foundation, and The International Cocoa Initiative, Ferrero strives to protect human rights, and especially those of children in cocoa-growing communities.
- Environmental Protection: Ferrero supports farmers to convert to agroforestry systems and restore natural forest areas.
- Transparency: Ferrero works to ensure a transparent and compliant value chain, traceable to the farm level. Each year, the Group also updates the public list of Tier 1 suppliers and farmer groups in the cocoa supply chain.
Under the Cocoa Charter Progress Report in 2022-2023, Ferrero has made significant progress across its four pillars, including:
Pillar I: Sustainable Livelihoods
- 50,000 farmers received targeted support to improve farming practices and diversify income
- 40,000 people participating in income-generating activities
- 1.2 million cocoa seedlings distributed
Pillar II: Human Rights & Social Practices
- 100% farmer groups covered by Child Labour Monitoring and Remediation System (CLMRS) or equivalent
- 25 schools built or renovated (133 in total by 2022/2023)
- 1,721 Village Savings & Loan Associations (VSLA) groups active
Pillar III: Environmental Protection
- > 1.4 million trees distributed for on and off-farm planting
- 168,000 hectares of agroforestry developed (40% of total hectares)
- 68,000 hectares under Community-Based Natural Resource Management
Pillar IV: Supplier Transparency
- 93% cocoa traceable to farm level via Polygon mapping
- 460,000 hectares assessed for deforestation risk
- 97% deforestation-free cocoa supply chain
- 211,000 farmers participated in Ferrero’s program
- 224,000 metric tons of cocoa sourced
In tandem with Ferrero’s Cocoa Charter Progress Report, the Group also released its 2022-2023 Cocoa and Forests Initiative (CFI) Progress Report, which seeks to support sustainable livelihoods and protect forests across Côte d’Ivoire and Ghana. Among its notable achievements, Ferrero trained 75,000 farmers in Climate Smart Cocoa Practices and empowered 86,000 farmers to apply agroforestry practices. Ferrero also engaged 4,500 youth through community service groups and developed active forest restoration and protection programs in 181 communities.
Looking forward to 2024 and beyond, Ferrero will continue to collaborate with partners and suppliers to achieve its ambitious sustainability commitments. Given the challenging road ahead, it’s more important than ever to work alongside stakeholders, governments, countries, companies, and farmer groups who can help drive lasting positive impact throughout the world.
Read more about Ferrero’s CFI Action Plan
Read more about Ferrero’s Cocoa Charter Progress Report
Read more about the annual disclosure of Ferrero’s global cocoa supply chain
