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PRACTICE DOCUMENT — FERRERO COPILOT TRAINING (BENELUX)
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Use: Workshop — CSR Reporting / Word Synthesis
Instructions: Copy this text into a Word document on OneDrive, then use
              Copilot to extract a structured executive summary.
WARNING: This document is FICTIONAL. The figures are realistic but invented
         for training purposes only. Do not circulate outside the session.
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EXTRA-FINANCIAL PERFORMANCE REPORT
FERRERO BENELUX — FISCAL YEAR 2025
Internal document — CSR Department


1. MESSAGE FROM THE MANAGING DIRECTOR

Dear colleagues, dear partners,

2025 marks a decisive milestone in Ferrero Benelux's responsibility journey.
With 1,840 people engaged every day, we have continued our work across the four
pillars of our CSR strategy: responsible sourcing, reducing our environmental
footprint, employee well-being, and the local roots of our operations.

Our regional turnover of EUR 720 million across Belgium, the Netherlands and
Luxembourg comes with a proportionate responsibility toward society and the
environment. This report reflects our progress, as well as the challenges that
still lie ahead.

— Hendrik Vermeulen, Managing Director, Ferrero Benelux


2. KEY FIGURES 2025

Headcount Benelux: 1,840 people (of whom 1,120 in plants)
Turnover Benelux: EUR 720m (+3.4% vs 2024)
Industrial sites: 1 plant (Arlon, Belgium) + 1 logistics hub (Bornem, Belgium)
Industrial investment 2025: EUR 48m
Dedicated CSR budget: EUR 6.1m (+16% vs 2024)


3. RESPONSIBLE SOURCING

3.1 Cocoa

Programme: Ferrero Farming Values
- 100% of cocoa GPS-traced since 2021 (maintained in 2025)
- 132,000 partner farmers across 5 countries (Ivory Coast, Ghana, Nigeria,
  Cameroon, Ecuador)
- 100% of cocoa certified Rainforest Alliance or equivalent
- Direct investment in cocoa-growing communities: EUR 3.4m in 2025
- Zero-deforestation target: 98.2% achieved (vs 97.4% in 2024)
- 44,000 hectares of forest protected or restored via the agroforestry programme

Identified challenge: The remaining 1.8% concerns farms located in a pioneer
frontier zone in Ivory Coast. The remediation programme with the NGO Earthworm
Foundation is progressing, with 14 farms brought into compliance in 2025.

3.2 Palm oil

- 100% of palm oil certified RSPO segregated (since 2015)
- Traceability to plantation level: 99.6% (vs 99.3% in 2024)
- "No Deforestation, No Peat, No Exploitation" (NDPE) policy applied
- 26 suppliers audited in 2025 (100% of volume)
- 2 suppliers suspended for non-compliance (1 reinstated after successful
  remediation)

Publication: Ferrero Palm Oil Charter updated in June 2025, available at
ferrero.com/sustainability

3.3 Sugar and milk

- Sugar: 84% of European origin (beet), target 86% in 2026
- Milk: 100% fresh milk of EU origin, of which 71% from Benelux dairies
- "Responsible Milk" programme: specifications including animal welfare
  (minimum 150 grazing days/year for partner farms in Belgium and the
  Netherlands)

3.4 Hazelnuts

- Ferrero Hazelnut Company programme
- 58% of hazelnuts under direct sourcing (vs 53% in 2024)
- Target: 100% direct or certified sourcing by 2030
- 15,000 farmers supported in Turkey, Italy, Chile and Georgia


4. ENVIRONMENTAL FOOTPRINT

4.1 Carbon emissions

Scope 1 (direct emissions): 18,400 tCO2eq (-11% vs 2024)
Scope 2 (energy): 4,200 tCO2eq (-19% vs 2024)
Scope 3 (value chain): 312,000 tCO2eq (-4% vs 2024)

Target: Carbon neutrality Scope 1+2 by 2030 / Net Zero Scope 3 by 2050

Major actions 2025:
- Arlon plant at 100% renewable electricity since 2024 (PPA contract with Luminus,
  22 GWh/year)
- Extension of photovoltaic panels at the Arlon site: 7,400 m2 in total
  (+2,900 m2 in 2025)
- Commissioning of high-temperature heat pumps at the Arlon site
- Commercial fleet: 56% hybrid or electric vehicles (vs 41% in 2024), target
  100% by 2027

4.2 Water

Total consumption: 0.74 million m3 (-5% vs 2024)
- Arlon: 0.61m m3 (recycling at 54%, target 60% in 2026)
- Bornem (logistics hub): 0.13m m3

Wastewater treatment station at Arlon renovated in 2024 (investment EUR 2.6m).
Discharge compliance rate: 99.8%.

4.3 Waste and packaging

Total industrial waste: 8,900 tonnes
- Recovery rate: 95.8% (recycling + composting + energy recovery)
- Landfill: 4.2% (target < 3% in 2026)
- Food waste: "Zero Waste" programme with 210 tonnes of products redistributed
  to Belgian and Dutch food banks

Packaging:
- 92% of packaging recyclable, reusable or compostable (initial target 100% in
  2025, reached at 92%, new target 100% in 2027)
- 19% reduction in virgin plastic used vs 2022 (baseline)
- 100% recycled-glass Nutella jar rolled out across Benelux retail since 2024
- PVC removed from 95% of Ferrero packaging (100% target reached for new
  packaging by end 2025, stock conversion ongoing)


5. HUMAN CAPITAL

5.1 Employment

- Permanent contracts: 91% of headcount (vs 89% in 2024)
- Turnover: 7.5% (food-industry average: 12.5%)
- Recruitment 2025: 140 positions (of which 80 at the Arlon site)
- Apprenticeships: 64 work-study trainees (+15% vs 2024)

5.2 Training

- Training budget: EUR 1.4m (1.9% of payroll)
- Training hours: 19,800 hours (i.e. 10.8 h/employee)
- Top 3 trainings: digital/AI (29%), food safety (26%), management (22%)
- "Ferrero Digital Academy" programme in its second year, including the
  Microsoft Copilot training rolled out across 9 departments

5.3 Diversity and inclusion

- Women in management: 45% (vs 43% in 2024, target 46% in 2026)
- Gender pay-equity index: 92/100
- Employees with disabilities: 6.4%
- 11 nationalities represented in the Benelux leadership committee

5.4 Safety

- Workplace accident frequency rate: 3.4 (vs 4.1 in 2024, target < 3 in 2026)
- Severity rate: 0.14
- Zero fatal accidents (9th consecutive year)
- Safety investment: EUR 1.1m


6. LOCAL ROOTS

6.1 Arlon (Province of Luxembourg, Belgium)

- Tic Tac and Kinder confectionery production site
- 980 people
- 1st private employer in the local municipality cluster
- Partnership with 36 local suppliers (< 50 km)

Investment 2024-2027: EUR 55m to modernise production lines (+22% capacity) and
build a 1,400 m2 quality-and-innovation centre.

6.2 Corporate giving and sponsorship

- Corporate giving budget: EUR 0.9m
- 18 associations supported (food solidarity, education, sport)
- "Kinder Joy of Moving" programme: 9,000 children reached across Benelux
- Ferrero Foundation x Food Bank partnership: 95 tonnes of products donated


7. CSR GOVERNANCE

Benelux CSR Committee: 7 members, quarterly meetings
Reporting: aligned with GRI (Global Reporting Initiative) standards
CSRD preparation: double-materiality assessment completed in Q3 2024 with an
external advisory firm
First CSRD report published in June 2025 (FY2024). Second report in preparation
for June 2026 (FY2025).

Certifications:
- ISO 14001 (environmental management): 1 site certified
- ISO 45001 (health and safety): 1 site certified
- ISO 22000 (food safety): 1 site certified
- FSSC 22000: 1 site certified


8. 2025 TARGET REVIEW AND 2026-2030 TRAJECTORY

| Area                       | Target 2025      | Result 2025      | Target 2030                |
|----------------------------|------------------|------------------|----------------------------|
| Cocoa zero deforestation   | 98.5%            | 98.2%            | 100%                       |
| Palm oil traceability      | 99.5%            | 99.6%   OK       | 100%                       |
| Recyclable packaging       | 100%             | 92%              | 100% + 50% recycled        |
| Carbon Scope 1+2           | -40% vs 2020     | -38% vs 2020     | Neutrality                 |
| Carbon Scope 3             | -15% vs 2020     | -12% vs 2020     | -50% vs 2020               |
| Clean vehicles             | 60% of fleet     | 56%              | 100% of fleet              |
| Water (consumption)        | -15% vs 2020     | -14% vs 2020     | -30% vs 2020               |
| Waste to landfill          | < 3%             | 4.2%             | 0%                         |
| Women in management        | 46%              | 45%              | 50%                        |
| Workplace accidents (FR)   | < 3.5            | 3.4              | < 2                        |


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END OF PRACTICE DOCUMENT
Workshop instruction: Use Copilot to produce a one-page executive summary of
this report, as a table with key indicators, and identify the 3 main strengths
and the 3 priority areas for improvement.
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