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Italian confectionary giant Ferrero says it is making progress in an ongoing effort to become a more sustainable organization.

In its 15th annual sustainability report, the company said it made “considerable headway” across its key pillars: protecting the environment, sourcing ingredients responsibly, promoting responsible consumption and empowering people.

Ferrero – which has its North American headquarters in Parsippany – believes the latest results highlight the company’s continued focus “on driving greater transparency across its core-ingredients supply chain, in line with its responsible sourcing approach.”

According to the report, key outcomes from the 2022-2023 financial year include:

• 90.7% of Ferrero packaging is now designed to be recyclable, reusable or compostable – up from 88.5% in the previous year;
• Achieved a 20% reduction in water intensity at Ferrero plants, through reduction and reuse initiatives since base year (2017-2018)

In its hazelnut supply chain, Ferrero now has 90% traceability, which it says is a significant increase from 79% in the prior year. The company said it sustains the steady increase by its “continued work with farmers, suppliers, institutions, universities, and research centres to promote and share sustainable farming practices.”

In collaboration with partners on the ground, Ferrero said it also helped address complex supply chain challenges, like deforestation, across the areas from which it sources ingredients. For example, using satellite mapping to help increase traceability of cocoa back to farm level to 93% in the most recent fiscal year, the company reported.

Additionally, 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. Ferrero is also working with Earthworm Foundation and the International Labour Organization (ILO) across its palm oil and hazelnut supply chains respectively to help support responsible labor practices.

Company goals

Sustainability goals at Ferrero include reducing Scope 1 and Scope 2 emissions from a 2018 baseline by 50% by 2030, increasing the plastic recycled content from a 2019-2020 baseline by 12% by 2025 and reducing the use of virgin plastic from a 2019-2020 baseline by 10% by 2025.

Giovanni Ferrero, the company’s executive chairman, said in a statement, “Ferrero Group recognizes 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.”

“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 added.

After starting out in 1946 as a small pastry shop in Alba, Italy, Ferrero has grown to become a global leader in sweet-packaged foods, including candy, biscuits, ice cream and better-for-you-snacking, with over 35 brands sold in more than 170 countries.

The company entered the North America market in 1969. It now has more than 5,400 employees across eight offices and 15 plants and warehouses in the U.S., Canada and the Caribbean.

Ferrero North America’s brands include Kinder, Ferrero Rocher, Nestle’s U.S. candy business, Kellogg’s fruit snacks and cookies division and Ferrara Candy Co.

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