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Sharing Values to Create Value SHARING VALUES TO CREATE VALUE FERRERO GROUP CORPORATE SOCIAL RESPONSIBILITY SUMMARY 2017 About this Report IFC ABOUT THIS REPORT This summary report explains the Ferrero Group’s Letter from our Executive Chairman 1 corporate responsibility strategy and our global At a Glance 3 activities during Fiscal Year (FY) 2016/2017 (from Ferrero’s Social Responsibility 6 September 1st, 2016 to August 31st, 2017). The Materiality Analysis 8 issues discussed in this summary match those covered in our full report, which were selected via a materiality Stakeholder Mapping 9 process, based on their level of importance to our Our Sustainability Goals 10 Group and our stakeholders. This summary report was drafted by Corporate Communications and Sustainability office OUR CONSUMERS (email: [email protected]). Nutrition 14 The full report on which this summary is based was Innovation 14 the subject of a limited assurance engagement by Quality 16 PricewaterhouseCoopers. Responsible Communications 17 This summary report is also accessible online at Kinder Surprise Company 17 www.ferrerocsr.com, where our current and previous eight full CSR reports are also available. We will continue to publish reports on an annual basis. OUR PEOPLE AND OUR COMMUNITY Ferrero People 20 The Ferrero Foundation 21 The Michele Ferrero Entrepreneurial Project 22 Kinder + Sport 23 OUR VALUE CHAIN Create 26 Choose 27 Make 32 Store and Deliver 34 You 34 Previous reports are available online at: www.ferrerocsr.com II FERRERO GROUP | CORPORATE SOCIAL RESPONSIBILITY SUMMARY 2017 LETTER FROM OUR EXECUTIVE CHAIRMAN Our passion for creating the highest quality products defines our everyday activities all the way back to sourcing the very best raw materials. The ‘very best’ not only in terms of product excellence but also in terms of rigorous criteria in sustainability, which we apply all along our value chain in partnership with a multitude of stakeholders.” Giovanni Ferrero Executive Chairman – Ferrero Group We are closing a year of great achievements. It is Our people and the communities in which we operate unquestionable that it has been one of the most are also the focus of our passion and are at the heart transformative years of Ferrero’s history: first of all of our value sharing system. This system translates we have introduced a new governance model which into the empowerment of our people that have has led to the appointment of Mr Civiletti as our worked and continue to work for Ferrero and of the new Ferrero CEO in order to secure, under his strong communities in our supply chain. This also means the leadership, the achievement of the Group’s Budget and continuity of important initiatives such as the Ferrero PS3 business targets. Foundation, the Michele Ferrero Entrepreneurial Project and the Kinder+Sport program. I am especially Moreover, we have developed a new strategic planning proud that last year this latter program reached an process to set ambitious and compelling long-term important milestone, spreading the joy of moving to goals, as well as bold medium- to long-term strategies. children and young people in 30 countries. The planning cycle we are beginning is equally historic. Furthermore, the Ferrero Group has very strong Whilst we continue to foster our values, leverage our ambitions for the coming years. All of which will heritage and fully respect our contract of engagement be shaped by our absolute respect for the People with our stakeholders, we are breaking our legacy: and the Planet. we are migrating from the chocolate confectionery market to the Sweet Packaged Foods (SPF) one. This Report is testament to our renewed support for What does not change however, is the Ferrero way the United Nations Global Compact, the world’s largest of doing things. corporate sustainability initiative. For us at Ferrero, our commitment, authenticity Finally, I would like to thank each and every Ferrero and devotion to consumers, resulting in the highest employee, or Ferrerians as we call ourselves, for quality products, will always drive our actions. It has their continued support, commitment and active already delivered outstanding results for the Ferrero participation in our unique journey. Group, as demonstrated by the consolidated turnover of €10.5 billion achieved in FY 2016/17, up 1.5% from the previous year. Our passion for creating the highest quality products defines our everyday activities all the way back to Giovanni Ferrero sourcing the very best raw materials. The ‘very best’ Executive Chairman – Ferrero Group not only in terms of product excellence but also in terms of rigorous criteria in sustainability, which we apply all along our value chain in partnership with a multitude of stakeholders. FERRERO GROUP | CORPORATE SOCIAL RESPONSIBILITY SUMMARY 2017 1 FERRERO AT A GLANCE Our approach to corporate social responsibility is largely focused on offering consumers around the world innovative products of the highest quality and freshness, made using carefully selected raw materials. OUR PRESENCE IN THE WORLD Our products are present and sold, directly or through authorized retailers, in more than 170 countries. Our Group is present in 55 countries and territories: Argentina Kazakhstan Australia Luxembourg Austria Malaysia Belgium Mexico Brazil Monaco Bulgaria Netherlands Cameroon Norway 1 Canada Poland 3 Chile Portugal China Puerto Rico Colombia Romania Croatia Russia 2 Czech Republic Serbia Denmark Singapore Ecuador Slovakia Geographical Distribution of Finland South Africa Consolidated Net Turnover in France South Korea Fiscal Year 2016/2017 Georgia Spain 1. Italy 14% Germany Sri Lanka 2. Rest of Europe 59% Greece Sweden 3. Outside of Europe 27% Hong Kong Switzerland Hungary Taiwan India Turkey Indonesia UAE KEY NUMBERS Ireland Ukraine Israel United Kingdom Total Production (Tonnes) Consolidated Net Turnover (€/000) Italy United States Japan +0.9% +1.54% 2016/17 1,277,126 2016/17 10,485,058 2015/16 1,265,950 2015/16 10,325,845 For more information visit: www.ferrerocsr.com 2 FERRERO GROUP | CORPORATE SOCIAL RESPONSIBILITY SUMMARY 2017 l Production Plant An extensive and constantly increasing l Michele Ferrero Entrepreneurial Project presence that attests to the quality of the l Ferrero Hazelnut Company products, the Group’s ability to adapt and respond quickly to the needs of different markets, as well as to the fact that the Group and its products are in tune with the daily needs of consumers around the world. 23 INTERNATIONAL MANUFACTURING PLANTS 1. Italy – Alba 1946 2. Germany – Stadtallendorf 1956 3. France – Villers-Écalles 1960 4. Italy – Pozzuolo Martesana 1965 5. Australia – Lithgow 1974 6. Ireland – Cork 1975 7. Ecuador – Quito 1975 8. Italy – Balvano 1985 9. Italy – S. Angelo Dei Lombardi 1985 10. Belgium – Arlon 1989 11. Poland – Belsk Duzy 1992 12. Argentina – La Pastora 1992 13. Brazil – Poços De Caldas 1994 14. Canada – Brantford 2006 15. Cameroon – Yaoundé* 2005 16. South Africa – Walkerville* 2006 17. India – Baramati* 2007 18. Russia – Vladimir 2009 19. Mexico – S. José Iturbide 2013 20. Turkey – Manisa 2013 21. China – Hangzhou 2015 22. United Kingdom – Alfreton 2015 23. USA – North Canton 2017 * Michele Ferrero Entrepreneurial Project KEY NUMBERS RAW MATERIALS HCO – HAZELNUT COMPANY Average Group Workforce During the FY 2015/2016 the Group 6 Agricultural 8 Manufacturing used a total of 1,830,193 tonnes1 Companies: Plants: of agricultural raw materials and Chile Chile +3.76% packaging raw materials. Argentina Italy 2016/17 30,305 Georgia Turkey South Africa 2015/16 29,206 1 Figure includes the volume of water used in the recipes of Australia Ferrero products, raw materials for surprises and auxiliary Serbia materials for the production process. FERRERO GROUP | CORPORATE SOCIAL RESPONSIBILITY SUMMARY 2017 3 FERRERO’S SOCIAL RESPONSIBILITY Ferrero has always been dedicated to For our Group, the term corporate social responsibility has always stood for caring for people and for the local area: namely taking on solid commitments and paying employees and former employees, consumers, families and the the utmost attention to People and the local communities in which we operate. These principles of social Planet, giving these precedence over its responsibility guided Ferrero’s first steps 70 years ago in Alba and remain unchanged to this day. financial goals. This tendency is inherent For us, the most important report has never been our annual to the Company’s DNA and is symbolically financial statement; it is in fact our social responsibility report represented in a letter that Michele Ferrero that reflects our Group’s respect for People and the Planet. sent to company employees in 1957, Our approach to sustainability is currently based on our social when he took the leadership: responsibility strategy: Sharing values to create value. This strategy is implemented every day through our commitment to consumers, which results in the highest quality products, innovation and transparent communication. For us, the creation of shared value is a practice that affects all stages of the supply chain: it goes from caring for the people who have made and I personally pledge to dedicate everything continue to make the history of the Group, the support of local I do and all my intentions to our company, communities and the promotion of active lifestyles among youths so that it may continue its journey in the and their families, all the way to our strong commitment to sustainable farming practices and safeguarding and protecting same light that my father and my uncle the environment. gave it, assuring you that I will only feel satisfied once I am able, with concrete facts, We confirm all of the commitments of our corporate social responsibility strategy, involving People and Planet. to ensure you and your children a safe and peaceful future.” Michele Ferrero 1957 Our Executive Chairman Giovanni Ferrero continues to guide the Group in this same light: Tradition and innovation are inherent to Ferrero’s DNA.
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