Ferrero's sustainability progress

Ferrero Group is on track to meet its key sustainability objectives and targets. The progress has been documented in its 14th Sustainability Report, which highlights the steps taken during the 2021/22 financial year on four key pillars: protecting the environment, sustainable sourcing, promoting responsible consumption and empowering people.

In Australia, Ferrero’s NSW-based Nutella and Tic Tac factory has announced the completion of its Stage 2 solar power project, which generates enough to power around 20% of the factory’s overall energy consumption. The factory is also using green energy from the grid and has begun to electrify equipment with the aim of cutting gas consumption by up to 50%.

Key highlights in Australia include:

• minimising water usage and aiming to purify and reuse 100% of water used in the industrial process over the next seven years — since 2021, water consumption has been reduced by 30%
• becoming a supporter of the National Packaging & Recycling Scheme (NPRS) from June 2023
• gold status membership has been reaccredited in the NSW Government’s Sustainability Advantage Recognition Scheme for the 10th consecutive year.

According to Giovanni Ferrero, Executive Chairman of the Ferrero Group, the financial year was challenging due to global wars, disrupted supply chains, surging energy costs and growing inflation. Despite this, the group was able to make strong progress with its sustainability targets.

Other highlights from the Ferrero Group’s Sustainability Progress Report include:

• 92% of the company’s global electricity now comes from renewables.
• 100% of palm oil is RSPO certified segregated, with 99.95% traceable to 146 palm oil mills and 722 plantations. This ensures sustainable palm oil is kept separate from plantations and farms.
• The publishing of the company’s first Human Rights Report at the end of 2021, framing 10 of the most salient human rights issues across all value chains and how Ferrero is working to address them.
• The completion of Ferrero’s first four-year Cocoa and Forest Initiative (CFI) action plan, achieving the majority of targets set in 2018.
• A cross-commodity framework, part of Ferrero Farming Values (FFV). The program helped deliver one-to-one coaching to 32% of cocoa farmers on farm and business planning, while 155,000 farmers took part in group training.
• Reaching traceability back to farm level across more than 96% of its cocoa supply volume. 82% of the entire cocoa volume was sourced from dedicated farmer groups Ferrero supports. Across all sourced hazelnuts, the Group can report overall traceability of 79% despite systemic supply-chain complexities.
• Continued work on designing all packaging to be reusable, recyclable or compostable, across four main areas of action: R&D and open innovation, existing packaging development and design, working with recyclers and national waste-management systems, and educating consumers.