Global confectioner Ferrero is intensifying its work on responsible palm oil by announcing that it has become a member of TFT. In the coming months, TFT’s field teams will work with the company’s global suppliers to start implementing Ferrero’s new Palm Oil Charter across their operations. The Charter builds upon Ferrero’s productive efforts to gain 100% traceability in its palm oil supply chain by the end of 2014 and seeks to make sure that Ferrero has no link whatsoever with deforestation.

Ferrero uses around 150,000 tonnes of palm oil each year. It buys its oil from producers in Malaysia, Papua New Guinea and Brazil. Ferrero’s Palm Oil Charter outlines its commitments on its palm oil purchasing. At its core is a commitment to deforestation-free palm oil grown with respect for local communities, workers and biodiversity. Growers must gain the consent of local communities as they develop new plantations, and they must protect peatlands, areas of High Carbon Stock and areas with High Conservation Value such as orang-utan habitats.

Ferrero is already a member of the Roundtable for Sustainable Palm Oil (RSPO), applying its Principles & Criteria across its supplier base and currently has full traceability of 75% of its supply chain to RSPO standards. Its relationship with TFT goes beyond, working on the ground with all suppliers to gain a greater understanding of the environmental issues, and in doing so pushing the boundaries of the current requirements of RSPO to meet the needs and expectations of its customers and those in its supply chain. A ‘No Deforestation’ commitment is key to this. TFT director Bastien Sachet says: “We are very pleased to see an ambitious move from a well-known company that is sending a strong message to the industry. What is very significant here is that this is Ferrero’s own Charter – it is clear about the values it wants for its products, and when companies fully own their policies, they don’t depend on anyone to make their vision and ambition become real. This encourages everyone around them to innovate and think about new ways to tackle the challenges of tomorrow.”

Bastien Sachet continues: “Palm oil is so often associated with deforestation and human rights abuses that there are calls from some for an end to palm oil use entirely, but we don’t think that’s the right approach – it would mean using more than five times as much land to replace palm with sunflower or rapeseed oil. What we really need is to arrive at a point where companies are buying fully traceable, responsible palm oil, grown without deforestation and with respect for community rights. That is exactly what Ferrero is doing, and we encourage others to follow Ferrero’s lead and help bring about greater transformation.”

Ferrero’s palm oil charter