How Ferrero is Advancing Supply Chain Traceability
Ferrero, one of the leading manufacturers in the sweet-packaged food industry, continues to demonstrate its commitment to sustainability by embedding it throughout its supply chain.
The company's 16th sustainability report highlights its ongoing efforts to enhance sustainability across pivotal areas.
Giovanni Ferrero, Executive Chairman of the Ferrero Group, emphasises: "Sustainability is deeply embedded in Ferrero's long-term strategy. It's a fundamental driver of business resilience and shapes the decisions we make as we grow responsibly.
"In the face of global challenges, particularly climate change, our commitment remains clear: to source responsibly, innovate boldly and safeguard the natural world for future generations."
This dedication is significantly reflected in Ferrero’s steps towards improving the traceability of its supply chain.
Through collaboration with Sourcemap and Starling, Ferrero has been able to map more than 90% of its key ingredients back to their origins.
This initiative has led to an impressive 97% traceability rate for both cocoa and palm oil, with hazelnuts achieving 94% traceability.
Reducing emissions in the supply chain
Ferrero's sustainability goals include halving greenhouse gas emissions by 2030 and substantial reductions have already been observed against the 2017/18 baseline.
The company reports a 21.7% decrease in Scope 1 and 2 emissions.
Additionally, in a bid to improve carbon accounting and enhance data accuracy, FLAG (Forest, Land and Agriculture) and non-FLAG emissions were separated.
These efforts are supported by sourcing 90% of the electricity used for manufacturing and warehousing from renewable sources.
Innovations in packaging for environmental impact
The company has made significant advancements in reducing its plastic usage, evidenced by a 13% reduction in the plastic-to-product ratio.
This includes transitioning Ferrero Rocher boxes from polystyrene to polypropylene, saving about 11,000 tonnes of plastic.
The launch of Nutella Plant-Based jars made with 60% recycled glass, alongside Kinder Joy's paper spoon initiative, further reflects Ferrero's commitment to sustainable packaging.
Regarding packaging, 92.1% is now designed to be recyclable, with the company maintaining a commitment to having over 90% of its packaging materials being reusable, recyclable or compostable.
Commitment to responsible sourcing and consumption
Ferrero’s dedication extends to responsible consumption and the well-being of its consumers.
It has kept a firm emphasis on serving size, with 85% of marketed volumes having a serving size of 130 kcal or less.
Lapo Civiletti, Chief Executive Officer of the Ferrero Group, says: "We made steady progress on our sustainability agenda during fiscal year 2023/2024. I am particularly proud of the ongoing steps we are taking to achieve our long-term commitments."
Ferrero is not only focusing on reducing its environmental footprint but also on empowering people and promoting human rights throughout its supply chain.
The company has established long-standing sourcing relationships and partnerships with international bodies such as the International Labour Organisation (ILO) and Save the Children, as well as a collaboration with the Organisation of American States (OAS) to encourage inclusion through sports.