How Ferrero is strengthening sustainability from farm to factory

Ferrero, a leading manufacturer, continues to make significant strides towards its sustainability goals as evidenced in its latest Sustainability Report. The report showcases tangible achievements and reinforces the company’s enduring commitment to sustainability.

“Sustainability has always been a core element of Ferrero’s mission of quality and longevity, and these values are deeply embedded in the growth that Ferrero is experiencing in North America,” says Meredith Connor, Senior Sustainability Analyst at Ferrero USA. “Investing in sustainability is a crucial aspect of our operations in North America, ranging from decarbonization efforts at the plant level to collaborations with Oregon hazelnut farmers.”

Holistic commitment is key

Ferrero’s comprehensive approach to sustainability ensures that decisions strengthen the entire supply chain while balancing environmental, social, and business priorities. “Sustainability revolves around the interconnectedness of the planet, people, and industry,” Connor emphasizes.

The Sustainability Report highlights some of Ferrero’s most impactful achievements globally, including:

• Farms:Ferrero has achieved high levels of traceability in key areas, such as cocoa, palm oil, and hazelnuts. These efforts are tracked and certified by external partners, showcasing the company’s commitment to transparency.
• Communities:Ferrero’s initiatives, such as the Kinder Value of Play program, promote social responsibility and responsible consumption. The company also focuses on transparent labeling and product offerings that support balanced diets and lifestyles.
• Factories:Ferrero has made significant reductions in emissions, with a notable decrease in greenhouse gas emissions. A considerable number of plants now operate on 100% renewable electricity.
• Products:Ferrero’s expanding portfolio focuses on sourcing sustainable ingredients and developing environmentally friendly packaging solutions. The majority of the company’s packaging is designed for recyclability, reusability, or compostability.
• People:Ferrero prioritizes building a culture of trust, respect, diversity, and opportunity. Its global Inclusion & Respect training program has reached numerous countries, emphasizing the company’s commitment to its employees.

Success in North America

While Ferrero operates globally, North America serves as a pivotal region for both production and sustainability innovation. Noteworthy achievements in North America include:

• Collaboration with Oregon State University on environmentally friendly pest control solutions.
• Energy-saving initiatives at the Franklin Park (Illinois) plant, resulting in substantial electricity savings.
• Decarbonization efforts at the Brantford (Ontario) plant, leading to significant reductions in CO2 emissions annually.

“The progress in North America directly contributes to Ferrero’s global sustainability goals,” Connor affirms.

Enhancing Farming Values

In its recent report, Ferrero introduced the enhanced Ferrero Farming Values framework for key ingredients. This framework reinforces the company’s longstanding commitment to responsible sourcing and supply chain transparency.

The Ferrero Farming Values framework, rooted in the company’s philosophy of “Sacco Conosciuto” (knowing what’s in the bag), emphasizes sourcing ingredients with quality, care, and responsibility. The framework aims to strengthen supply chain resilience, enhance transparency, support farming communities, and contribute to the protection of natural ecosystems.

While the framework is adaptable to individual ingredient supply chains, it represents a consistent approach where Ferrero can make a significant impact.

The five elements of the Ferrero Farming Values framework include:

1. Supplier due diligence: Collaborating with suppliers to assess and manage environmental, social, and governance risks throughout the supply chain.
2. Supply chain traceability and visibility: Strengthening traceability systems to map supply chains, identify risks, and enhance transparency for informed decision-making.
3. Certification and standards: Collaborating with certification systems and industry standards to promote responsible production.
4. Farming practices and communities: Supporting farmers in adopting good agricultural practices and promoting climate resilience and biodiversity protection.
5. Sector transformation: Participating in industry initiatives and partnerships to address systemic challenges in agricultural sectors.

Transforming commitments into action

Giovanni Ferrero, President of Ferrero International S.A., emphasizes the company’s interdependence with the well-being of people and ecosystems in its value chain. The Sustainability Report demonstrates how environmental stewardship, responsible sourcing, and community investment are integral to Ferrero’s operations.

“Ferrero’s goals are ambitious, ranging from improving traceability at the farm level to innovating in sustainable packaging solutions and fostering a safe and respectful workplace environment,” Connor explains. “Every decision we make today will have a positive impact on our future.”

For more information on Ferrero’s sustainability commitments and progress, you can view the Sustainability Report here.