How we work with Ferrero on Palm Oil
TFT are supporting Ferrero in its palm oil sustainability journey in order to enhance and consolidate the trust between Ferrero and its stakeholders (consumers, journalists, NGOs, governments…) and secure Ferrero’s leadership on this topic.
Objectives for 2014/15:
Support Ferrero in the field to bring its suppliers towards compliance with the principles in its charter, and to monitor them.
- Activity Progress:
→ Mapping existing supply chain: TFT has supported Ferrero to map 99.5% of their palm oil volume back to the mills and associated palm plantations.
→ Assess the current situation of the suppliers’ practices: TFT has carried out evaluation of 12 suppliers in order to identify the gaps between their commitments and practices and Ferrero’s Charter. Field visits have been carried out to 3 of them.
→ Propose action plan: Following the evaluation of the suppliers, TFT has supported Ferrero in the discussion with the suppliers to draw action plans in order to close the identified gaps.
→ Monitoring: Following the agreement on an action plan with Ferrero’s suppliers, TFT is regularly monitoring the proper implementation of the actions. TFT ensures a continuous evaluation of the 12 suppliers performance against Ferrero’s Charter.
→ Smallholders support programme: TFT is working with Ferrero to identify appropriate projects for supporting small palm oil farmers to improve their livelihoods and resilience.
Support Ferrero in developing and implementing a sound and robust system to monitor the Charter implementation.
→ Identify the tools: TFT has identified and compared various means for monitoring the principles of Ferrero’s Charter within its supply chain.
→ Develop the procedure: TFT has developed a procedure describing the system that will provide truly independent monitoring of Ferrero’s Charter implementation.
→ Next steps: TFT will support Ferrero to seek for stakeholders inputs on the proposed system and to launch its implementation.
In addition to the proposed activities, TFT is also supporting Ferrero on communicating its efforts to all stakeholders through producing every six months a progress update report to highlight the outcomes of the last six months, the issues, opportunities and challenges encountered and what are the next steps Ferrero will do to bring their suppliers to meet their requirements.
Raw Material Input
Material Input: 185.000 metric tons of palm oil products (ACOP 2014)
- 79.54% – coming from Malaysia (75.87 from Peninsular Malaysia)
- 18.17% – coming from Papua New Guinea
- 1.20% – coming from Brazil
- 0.91% – coming from Indonesia
- 0.10% – coming from Guatemala
- 0.08% – coming from Solomon Islands