Ahead of World Environment Day on 5 June, Ferrero has updated its Palm Oil Charter, outlining its ambition to achieve a palm oil industry that is 'good for both people and nature.'
First announced in 2013, the Palm Oil Charter served as a driver for Ferrero's development of its responsible palm oil supply chain.
The charter took into consideration the company's core values and its broader sustainability strategy as part of the public commitment, Ferrero added.
Updated Palm Oil Charter
The updated charter is based on the learnings and insights generated by the company through collaboration with stakeholders at every level, from suppliers to NGOs, as well as academic partners.
Earthworm Foundation, a non-profit organisation focused on improving value chains, helped Ferrero develop the new charter.
Since 2015, Ferrero sources sustainable palm oil that is 100% RSPO Certified Segregated and traceable back to plantations.
The updated charter outlines further action to be undertaken to tackle three strategic areas identified as critical.
The first is to build a more equitable and inclusive palm oil value chain and improve the working conditions of farmers.
Secondly, the company has pledged a 'no-deforestation' supply chain commitment. It includes no planting on peat, no using fire to clear land, ensuring the protection of forests and natural habitats, as well as using the Starling Satellite Monitoring System to identify potential deforestation across the supply chain.
Finally, the group plans to foster a fully transparent approach across the value chain and require all suppliers to adhere to the group's standards.
'Reaffirm Our Commitments'
Marco Gonçalves, Ferrero's Chief Procurement and Hazelnut Company Officer, said, "At Ferrero, we take a continuous improvement approach to our value chain and understand the environmental and societal challenges tied to the palm oil industry; this is why we proudly reaffirm our commitments to responsible palm oil sourcing through our new charter.
"We look forward to continuing our learning journey and go beyond high certification standards with concrete actions that contribute to a more sustainable industry."