Ingredients ethics

Ethical Source of Cocoa: Ferrero is involved in working towards the economic and social development of the world's cocoa farming communities, as well towards a supply chain free of forced child and adult labour.

Ferrero participates in the common industry commitment established in 2001 under the Harkin-Engel Protocol, aimed at developing standards for certification that cocoa beans and their derivates have been grown and processed without any of the worst forms of child labour.

Ferrero is a participant of ICI, the International Cocoa Initiative, indirectly up to 2006 and a direct member starting in 2007. Furthermore, through the World Cocoa Foundation (WCF), Ferrero works towards improving the well being of cocoa farming communities.

Palm oil: Ferrero has been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2005. RSPO was created in 2004 by organisations involved in the supply chain of palm oil, to promote the growth and use of sustainable palm oil through co-operation within the supply chain and its stakeholders. For more information see rspo.org.

FERRERO also participated in the recent Malaysian Palm Oil Council (MPOC).

GMO (Genetically Modified Organisms): All Ferrero products are GMO free.

Advertising Ethics

Description of Core Business
Manufacturers, marketers and distributors of the confectionery brands ‘Tic Tac”, “Ferrero Rocher”, “Ferrero Raffaello”, “Ferrero Collection”, Ferrero Rond Noir', Kinder Surprise, Kinder Bueno and Kinder Chocolate and the spreads brand “Nutella”.

Statement of Company Commitment
Increasing obesity levels in Australia are a cause of growing concern, especially regarding children. Ferrero has always believed in the crucial role played by parents in educating their children to a balanced diet and a healthy lifestyle. Although the existence of a direct link between advertising and children's eating habits has not been proven, Ferrero agrees that it is preferable to avoid directing advertising to children when they are most likely exposed to commercial communications without parental supervision.

Core Principal
In line with the above considerations, Ferrero will meet the core principles outlined in the Responsible Children's Marketing Initiative by:

Advertising Messaging .1
Ferrero will not advertise its products to media audiences with a majority of children under the age of 12, except for:

• products which fulfil specific nutrition criteria, consistent with established scientific evidence and/or applicable national and international dietary guidelines;
• non product-specific brand campaigns advocating a healthy lifestyle by promoting physical activity and/or sports.

Advertising Messaging .2
The advertising of Ferrero products fulfilling specific nutrition criteria, consistent with established scientific evidence and/or applicable national and international dietary guidelines will also reference or be in the context of promoting healthy dietary choices and/or physical activity.

Use of popular personalities and licensed characters
Ferrero undertakes to not use popular personalities or licensed characters in media audiences with a majority of children under 12 years, unless such advertising complies with the messaging options set out above and with the specific requirements of the Children's Television Standards in relation Promotions and Endorsements by Program Characters (CTS Section 22).

Product placement
There will be no intentional placement of Ferrero products for the purpose of promoting their sale in any television program, or movies primarily directed to media audiences with a majority of children under 12, unless those products are consistent with healthy dietary choices under Advertising Messaging 1.

Use of products in interactive games
There will be no intentional placement of Ferrero products in any interactive games primarily directed to media audiences with a majority of children under 12, unless the interactive game incorporates or is consistent with healthy dietary choices under Advertising Messaging 1 above.

Advertising in schools
Ferrero will not carry out any communication related to its products in primary schools, except where specifically requested by, or agreed with, the school administration for educational purposes.

Scientific or Government Standards
Applicable nutrition criteria, defining which of our products are considered acceptable for advertising to children under 12, are to be eventually defined and published at a later stage. Such criteria will be consistent with established scientific evidence and/or national and international dietary guidelines.

Until then, all Ferrero products will not be advertised to media audiences with a majority of children under the age of 12.

Media
This initiative applies to television, radio, print, cinema and third-party internet sites where the audience is predominantly children and/or where the theme, visuals and language used are directed primarily to children.

For TV advertising, we will not advertise foods that do not meet specific nutrition criteria, consistent with established scientific evidence and/or applicable national and international dietary guidelines, in any shows where the projected audience at the time of media planning is 50% or more children under 12 years old, or in any programmes that, after review of facts and circumstances, we determine are predominantly children and/or the theme, visuals and language used are directed primarily to children.

Radio or non-Ferrero/third-party internet media will be considered as “directed primarily to children under 12” if the projected audience at the time of media planning is 50% or more children under 12 years old.

For print media, we will not advertise products that do not meet specific nutrition criteria, consistent with established scientific evidence and/or applicable national and international dietary guidelines, in publications with a projected audience of 50% or more children under 12 years old, or in publications that, after review of facts and circumstances, we determine as specifically designed to appeal to children under 12.

Ferrero Australia will abide by the following Codes:

• The AANA Code for Advertising & Marketing Communications to Children
• The AANA Food & Beverages Advertising & Marketing Communications Code
• The AANA Code of Ethics

Compliance and Complaints
We agree to abide by any decision or ruling made by the appointed arbiter in relation to the execution of this plan.

Reporting
We will provide a report of our marketing activity against this plan on an annual basis, with the first plan due by 31 January 2010.

You can also view this document on the Australia Food and Grocery Council website at http://www.afgc.org.au/industry-codes/advertising-kids/company-action-plans.html

Environmental Ethics

• In Australia, Ferrero is a signatory to the National Packaging Covenant
• We manage our factories by the efficient and rational use of energy, materials and natural resources; pursue the reduction of environmental impact, waste and refuse where possible
• We are aware of the fact that the conservation of water quality and quantity is not solely an environmental problem but a challenge that embraces the entire agricultural, economic and social system. We are therefore committed to the responsible management of water resources
• We establish environmental objectives and monitor the progress achieved