Ferrero claims key environmental and human rights performance gains with 15th sustainability report
Ferrero has confirmed notable gains in its environmental performance for its 15th sustainability report, including closing in on near complete traceability within its cocoa supply chains, as well as reporting that 90% of its packaging is from recyclable sources, writes Neill Barston.
The business, which is set to return speaking at our World Confectionery Conference this September, has just completed a key appearance at the Sweets & Snacks Expo, where the business unveiled its latest expanded portfolio, including a new Tic Tac Chewy launch, as well as enhancements to its Kinder chocolate lines.
As the company explained, its latest annual report has analysed its impact throughout its value chain, and reveals gains made against its key sustainability pillars of protecting the environment, sourcing ingredients responsibly, promoting responsible consumption and empowering people.
Among the Italian-founded firm’s key achievements during 2022/23, was a key improvement in deforestation monitoring – with traceability within its cocoa chain now at 93%, with the company working with the World Cocoa Foundation and International Cocoa Initiative to enhance its operations. Furthermore, traceability within its hazelnut supply chain, which now stands at 90%, compared to 79% the previous year. This was attributed to improved collaborations with farmers, suppliers, institutions and universities to share best practices.
Key company gains
Significantly, as the business noted, collaboration has also played a key role in accelerating progress on tackling the causes behind child and forced labour. Ferrero continues to partner with Save the Children, working with 65 communities in the Haut-Sassandra Region in Ivory Coast, one of the main sourcing countries for cocoa, reaching over 18,000 people. Ferrero is also working with Earthworm Foundation and the International Labour Organisation (ILO) across its palm oil and hazelnut supply chains respectively to help support responsible labour practices.
In addition, a total of 90.7% of the company’s packaging is now designed to be recyclable, reusable, or compostable – up from 88.5% in 2021/22, which is an area that consumers are especially keen to see continued gains.
The company also attained a 20% reduction in water intensity at its plants, through reduction and reuse initiatives since base year 2017/18 (9.6% vs 2021/2022, while its Kinder Joy of moving project has reached more than 60 million children since its inception in 2005 (3,4 million children in 22/23 alone).
“Ferrero Group recognises the critical role that the company plays in safeguarding nature for future generations. We reaffirmed through concrete engagements that sustainability is embedded in Ferrero’s long-term strategy. All four pillars of our sustainability framework guide every strategic decision we take” said Giovanni Ferrero, Executive Chairman of the Ferrero Group.
“As Ferrero grows and diversifies its portfolio, we continue to value our long-term partnerships, in particular those dedicated to the communities where we operate and where our raw materials are sourced. We believe in the importance of partnerships to achieve progress, to move forward our sector’s social and environmental agenda, and finally to create societal value.”
He explained that the company’s position of delivering on its core pillars was of critical importance, with the business continuing to cement itself with major investment in its global operations including newly created chocolate processing facilities in Bloomington, Illinois, US. The region has also seen a notable upturn in its distribution capacity in recent years, as well as the business retaining its comparatively strong performance within key European markets.
Notably, the company has gained continued recognition from the WWF global wildlife organisation with its palm oil scorecard on environmental results, emerging as the second-best performing business within the food sector for its sourcing conduct in its international supply chains
Speaking in the foreword to the company’s latest sustainability report, Giovanni Ferrero added: “The financial year 2022/23 was another year of global turbulence, characterised by greater political and economic uncertainty. Dramatic geopolitical conflicts, tension in the energy market, increased volatility in supply chains, inflationary pressure, millions of people left vulnerable across the world due to the ever-increasing effects of climate change. 2023 went down in history as the hottest year ever recorded, causing everything from intense droughts to devastating floods, with global average temperature about 1,4°C above pre-industrial times.
“Disruptions in key global shipping routes – the Suez Canal, Panama Canal, and the Black Sea – are signs of the unprecedented challenges for global trade. All these macro effects heavily impacted businesses worldwide. Despite this, thanks to a clear business vision and to the dedication of more than 47,000 employees around the world, our Group not only managed to navigate these extreme complexities but exited the fiscal year 2022/23 in very good health and with unprecedented resilience: we can say with a great sense of pride that we are stronger than ever.”