2021
ANNUAL 
HAZELNUT 
ACTION PLAN

2021 ANNUAL HAZELNUT ACTION PLAN 
FERRERO – RESPONSIBLE SOURCING APPROACH 
THE FOUR-STEP RESPONSIBLE SOURCING APPROACH IS 
ALIGNED TO OUR POLICIES AND GUIDES OUR CHARTERS FOR 
OUR KEY RAW MATERIALS:
Responsible sourcing is embedded in the way Ferrero does business. 
At Ferrero we take a continuous improvement approach to responsible 
sourcing. Our approach is built around supplier management, a robust due 
diligence, traceability and transparency, certiﬁcations and standards. We 
know more can be achieved together and long-term partnerships and 
collaborations are essential. We take a risk-based approach and when needed 
we invest in our supply chains through targeted programmes to improve their 
environmental, social and governance (ESG) conditions and their overall 
standards. Through the activities of our sustainability programme, Ferrero 
Farming Values (FFV), we work to make a diﬀerence to the supply chains in 
which we operate.
Our responsible sourcing approach is founded on four steps (illustration on 
the right). Our Supplier Code reﬂects our basic requirement of Supplier Risk 
Management (Due Diligence). The building blocks above this step refer to our 
Charters for our key raw materials, including hazelnuts, palm oil and others. 
Learn more in our Sustainability Report.
The Hazelnut Charter sets out our vision for a hazelnut industry which, 
through continuous improvement, creates value for all. It outlines our 
long-term commitments with speciﬁc mid-term objectives (2023). Our aim is 
to be a driving force behind a hazelnut industry where farming communities 
are thriving, workers and children’s rights are respected, and environmental 
values are enhanced through regenerative agricultural practices. 
Supplier Risk 
Management 
(Due diligence)
Supply Chain 
Visibility
Standards and 
Certiﬁcations
Programmes
1. CONTEXT
This Supplier Code is subject to the Ferrero’s 
Human Rights Policy Statement and is 
complimentary to the Code of Business Conduct 
(COBC) and, therefore, does not amend and/or 
override the COBC and/or any provisions and/or 
any agreements, arrangements and contracts 
with the Supplier. 
This Supplier Code will be followed by a due 
diligence-based approach. Upon completing the 
due diligence, the Supplier Code may be followed 
by speciﬁc Charter documents establishing 
Ferrero’s commitments based on selected 
priorities of the Ferrero Group.
2. APPLICATION AND SIGNIFICANCE
This Supplier Code applies to all Suppliers, i.e. all 
vendors and sellers that produce, trade, sell, 
lease and/or provide goods or services that enter 
Ferrero’s supply chain and where such vendors 
and sellers have a direct commercial relationship 
with Ferrero (Supplier). 
This Supplier Code focuses on three pillars that 
are strategically important for the Ferrero Group: 
Human Rights and Social Practices,
Environmental Protection and Sustainability
Supplier Transparency.
Each of the areas set out in this Supplier Code 
requires the development and deployment of 
multiple initiatives on an ongoing basis. We 
recognize the need to collaborate with our 
Suppliers on each of these initiatives to develop 
speciﬁc and achievable targets, milestones and 
projects in each of these areas. The 
implementation process will be reasonably 
tailored to the size and associated risks from a 
Supplier’s operations.
We, the Ferrero Group (Ferrero) believe that partnerships and collaboration with 
our suppliers is a mutually beneﬁcial and inclusive way to ensure responsible 
sourcing throughout our supply chain. Partnerships build trust not only with our 
suppliers, but also along the entire value chain. We are committed to working 
with our suppliers on a journey of continuous improvement and strongly believe 
it will create common and shared beneﬁts to us, our suppliers and all 
communities where we operate. 
This  Supplier Code allows us to engage our Suppliers and ensure a supply chain 
that is fair, sustainable and transparent.
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FERRE O GROUP FERRERO SUPPLIER CODE
FERRERO 
SUPPLIER CODE
OUR AMBITION
Our ambition is to be a driving force behind a 
hazelnut industry where hazelnut production 
creates value for all; farmers and farming 
communities are thriving, workers’ and children’s 
rights are unequivocally respected, and 
environmental values are enhanced through 
regenerative agriculture practices. 
For Ferrero, ensuring compliance with our own 
principles (Ferrero’s Human Rights Policy 
Statement and Ferrero Supplier Code), with 
applicable laws and regulatory requirements is a 
Basic Requirement. We monitor compliance of 
our suppliers to these requirements through 
value chain traceability, a robust Due Diligence 
and Consequence Management approach. We 
highlight clear principles and expectations under 
the Basic Requirements which we require our 
suppliers to acknowledge through the Ferrero 
Supplier Code.   
At the same time, we are convinced that Ferrero 
must Go Beyond the basics in order to fulﬁl our 
ambition.  Ferrero understands that to foster 
change and accelerate adoption, we must Go 
Beyond compliance and consequence 
management alone, by taking a proactive 
position on selected priorities and initiatives to 
create new solutions to complex challenges. 
We know more can be achieved together. We see 
partnerships and collaborations with suppliers, 
farmers, farmer communities, NGOs, scientists, 
universities, local and national authorities, peer 
companies and other industry stakeholders as 
fundamental to achieving our ambition.  
We detail our ambition and our commitment 
under three pillars:
1 Human Rights and Social Practices
2 Environmental Protection / Sustainability
3 Supplier Transparency
Under each pillar we explain what is important to 
Ferrero, followed by speciﬁc commitments on 
selected priorities and initiatives (“Go Beyond” 
section). 
Image 1 below captures under each pillar our 
initial high-level commitments we have 
established until December 2023. These will be 
matched with more granular targets as we 
publish separately to this Charter our annual 
Action Plan and Progress Report.  
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FERRERO GROUP HAZELNUT CHARTER
We, the Ferrero Group (Ferrero) seek excellence along the whole value chain, with 
particular focus on social and environmental quality of the raw materials that we rely 
on for the production of our products.
Through this Charter, we state our ambition for a hazelnut industry that is good for 
people and nature, and our commitment to make this ambition a reality through 
activities of hazelnut production and sourcing.  
HAZELNUT CHARTER

2021 ANNUAL HAZELNUT ACTION PLAN 
The Hazelnut Charter 
outlines Ferrero’s 
responsible sourcing 
ambition and 
commitments until 2023.
An action plan transforms 
the ambition and 
commitments into 
concrete actions, 
highlighting key 
milestones.
  
HAZELNUT 
PROGRESS REPORT
Periodic progress reports 
will share evidence and 
challenges on the 
milestones outlined in the 
action plan. 
HAZELNUT 
ACTION PLAN
HAZELNUT 
CHARTER
HOW FERRERO WILL 
IMPLEMENT THE 
HAZELNUT CHARTER
The Charter lays out our requirements and commitments for sourcing 
hazelnuts responsibly.
Within this action plan we outline the steps we are taking to meet our 
commitments. Additionally, we will transparently share not only our 
progress, but also the challenges we face along the way. We will do this 
by publishing progress reports and updating our action plan each year. 
CHARTER REQUIREMENTS 
AND COMMITMENTS
RESPONSIBLE 
SOURCING APPROACH
KEY ACTIONS (YEAR 1)
PILLAR I: Human Rights and Social Practices 
PILLAR II: Environmental Protection / Sustainability
Programmes
Joyful Growth: Nr of children reached 
Regenerative agriculture: Nr of Farm 
Management Plans deployed at Agrifarms
PILLAR I: Community Development Pilot Project 
Deployment of the project in targeted areas 
in Turkey
PILLAR III: Supplier Transparency
Supply Chain Visibility
Traceability: Sourcemap platform % of 
traceability at farm level
“Hazelnut Standards”
Standards and Certiﬁcations
FFV Production Standard & Sustainably Grown 
Certiﬁcation: Nr of audits performed  
Basic Requirements - Due Diligence 
Supplier Risk Management Due Diligence 
Supplier Code: % acknowledged

2021 ANNUAL HAZELNUT ACTION PLAN 
Fostering a more equitable value chain for the 
people involved in hazelnut production 
In partnership with farmers and suppliers, fostering 
the principles of regenerative agriculture to 
enhance farm biodiversity, improve soil health and 
farmers’ climate change resilience 
Knowing where our raw materials come from and 
fostering data management and reporting
Commitment: Joyful growth and child protection across 
Ferrero’s sourcing 
What does this commitment mean?
For Ferrero, child protection means that we are determined to prevent and 
eliminate child labour all along our value chain, through a multi-stakeholder 
approach, with the conviction that every child should be protected, by 
experiencing joyful growth through a right to education and a safe 
environment. Tackling child labour requires a long term and collective 
response. This must be done through a holistic approach involving farming 
communities and where private sector, civil society, government and public 
authorities work actively together. Child labour has been documented in the 
agricultural sector in Turkey across diﬀerent crops, including hazelnuts. 
Addressing this involves the need to improve working conditions, especially 
for seasonal workers during the harvest. 
How will we work towards our commitment?
We will support and implement initiatives to improve social practices in the 
hazelnut sector with a focus on working conditions and enhancing farmer 
resilience. 
Who will we work with? 
We will do this through the activities of our FFV team on the ground 
engaging with farming communities, as well as by partnering with relevant 
organisations such as the ILO, Earthworm Foundation, and local NGOs.
What does this commitment mean?
Regenerative agriculture principles allow farmers to work better with 
nature. The principles of regenerative agriculture that we seek to promote 
include focusing on building soil health, ﬁnding agro-ecological ways to 
manage inputs and enhancing biodiversity. We believe that as a perennial 
long-term tree crop, hazelnut trees have the potential to contribute to 
farming landscapes if managed well. 
How will we work towards our commitment?
As a ﬁrst step towards this commitment we will establish Farm 
Management Plans (FMPs) for our Agrifarms, to allow us to evaluate the 
application of these principles. The FMPs are our baseline assessment and 
guide towards achieving speciﬁc aims to implement measures to restore, 
maintain and improve the wellbeing of the biodiversity and natural 
resources of the farms. Additionally, we will work to identify High 
Conservation Value areas in our sourcing landscapes and accordingly 
implement management plans to enhance these. We will integrate the 
concepts of Soil Health, Water Management, and Integrated Pest 
Management in our engagements with farmers.
Who will we work with?  
The experts in our Agri Competence Centre (ACC), will work together with 
our local agronomists on our Agrifarms in establishing the FMPs. This work 
will be in done in collaboration with global experts and local partners. 
What does this commitment mean?
Traceability is essential to build a sustainable value chain. It enables us to 
monitor where our hazelnuts come from and to verify the conditions under 
which they are produced. 
How will we work towards our commitment?
We will work towards further enhancing the visibility of our value chain by 
strengthening the partnerships with our suppliers and by using the most 
advanced technology.  We will do this by implementing a more consistent 
methodology and by developing a hazelnut-dedicated platform to trace 
raw materials from farm to factory. 
Who will we work with? 
We are partnering with the traceability provider, Sourcemap. Through 
Sourcemap’s platform, we will be able to support the value chain through 
data science, detect tomorrow’s agricultural and social challenges, and 
ensure performance is continuously improving.
Commitment: Ferrero applying the principles of regenerative 
agriculture in hazelnut farming on its farms and across selected 
territories 
Commitment: Ferrero achieving full traceability to farm level 
for all its sourcing.
ENVIRONMENTAL PROTECTION / 
SUSTAINABILITY
HUMAN RIGHTS AND SOCIAL 
PRACTICES
SUPPLIER
TRANSPARENCY
03
02
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2021 ANNUAL HAZELNUT ACTION PLAN 
GLOSSARY
DEFINITION
TERM
Ferrero’s key partners in its Hazelnut Responsible Sourcing Programme are specialised and experienced 
organisations including the ILO, Earthworm Foundation and SCS Global Services.
Programmes
The project will focus on enhancing farmer resilience and reducing social risk. It will involve farmers, workers 
and community members to assess and identify solutions to be applied within our FFV programme. 
Community Development Pilot Project
Our baseline assessment and guide towards implementing the principles of regenerative agriculture on our 
farms. 
Farm Management Plans
Ferrero works with Sourcemap on the journey to full traceability to farm level.  In Italy we are also supported 
by DNV.
Supply Chain Visibility
Ferrero co-created, in partnership with third party partners, its own standard, The Ferrero Farming Values 
(FFV) Production Standard. At our Agrifarms we apply the Sustainably Grown certiﬁcation.
Standards and Certiﬁcations
Acknowledgment for Ferrero means that the supplier signs the Supplier Code.
Supplier Code

2021 ANNUAL HAZELNUT ACTION PLAN