Protect the Environment

DISCOVER OUR APPROACH

  • Climate change
  • Water & Waste
  • Energy
  • Packaging

Climate Change Since 2009, we have been measuring our Carbon Footprint annually, committing to gradually increasing the boundaries. We have measured our Total Carbon Footprint for the past decade to identify the impacts of our activities – from raw materials to the use of our products.
Having a clear and complete picture of our impacts across the value chain is key to identify the areas with the greatest opportunity to reduce our emissions.

We have achieved full compliance with the Greenhouse Gas Protocol which sets the standards for how organisations should measure and report their emissions.
* Market-based Scope 2 emissions.
** Employee Travel – Waste and auxiliary products – Capital goods – Leased assets – Downstream transportation and distribution – End of life treatment of solid products.
*** Emissions are linked to production hubs that deliver KINDER® Surprise products to Ferrero plants, including materials, moulds and transport of the Surprises.
The climate emergency requires businesses to step up their commitment to reduce carbon emissions and help limit climate change. We will play our part by delivering a new set of climate change commitments for 2030.
Our targets for 2030:
  • Reduce absolute Scope 1 and 2 emissions by 50% from a 2018 base year.
  • Reduce Scope 1, 2 and 3 emissions intensity by 43% per tonne of product produced from a 2018 base year.

The first target covers 100% of Scope 1 and 2 emissions for our plants, warehouses and head office and aligns with a reduction pathway that is consistent with the challenging 1.5°C temperature increase scenario. The second target covers the whole value chain – including almost 90% of our Scope 3 emissions. We included all the main areas contributing to the group footprint, including: our key ingredients such as dairy, palm oil, hazelnuts, sugar, flour and cocoa; packaging; upstream logistics; and fuel and energy-related activities.

These areas are more challenging to address because they are outside of our direct control. However, we believe that, through engagement with our suppliers, we can build a shared journey to achieve this target. Together, the two targets cover the majority of Ferrero’s Scope 1, 2 and 3 emissions. We have developed a roadmap which sets out how we will achieve the first target covering Scope 1 and 2 emissions by 2030. For the second target, involving Scope 3 emissions, we will develop a multi-faceted approach that will include working with suppliers to reduce emissions, rethinking products and solutions and developing new products.

Our commitment to design 100% of our packaging to be reusable, recyclable or compostable will contribute to achieving our target. In some cases, we will consider prioritizing lower emission suppliers and we will investigate opportunities to integrate investment activities to reduce emissions in our agricultural supply chains.

Water & Waste Water is a precious shared resource that sustains communities, ecosystems and biodiversity. But freshwater resources are coming under increasing pressure from the impacts of climate change and the competing demands of communities, agriculture and industry.

HOW WE MANAGE OUR WATER CONSUMPTION?
We began carrying out water audits at our plants in 2018 to identify opportunities for improvement. In 2019, we launched a collaboration with the Polytechnic of Torino (Italy) aimed at defining a method for determining water risk in the regions in which our factories are located. The collaboration covers a detailed investigation of the water supply sources of our factories.

WASTEWATER TREATMENT
We treat the water used in our production processes in wastewater treatment plants – either municipal plants or our own plants. We focus on reducing pollutants in our wastewater by improving treatment systems through more efficient technologies, finding alternative or more efficient washing methods, and using more ecological products.

REUSE & RECYCLING
We promote water recycling and reuse within our production and our utilities processes. During the construction and upgrade of wastewater treatment plants, we pay great attention to the possible reuse of water through treatments such as ultrafiltration and reverse osmosis to collect water which can be reused for secondary purposes, such as in cooling towers and boilers.

Waste materials can be a valuable resource. We apply the principle of circularity to keep resources in use for as long as possible – extracting maximum value, reducing environmental impacts and helping to conserve natural resources.

Our main waste streams from our operations are paper, plastic and cardboard, as well as the organic waste that arises from making our products. We manage our waste according to the waste hierarchy, firstly eliminating waste in our operations and prioritising recycling and reuse.

We pursue a Zero waste to landfill approach and we are exploring new ways to reuse and recycle our waste.

Energy Energy efficiency is our main lever for reducing emissions and, at the same time, reducing costs and improving the performance of our operations. We invest assets and projects to optimise our operations according to the best available techniques. Projects are identified through scientific assessment and engagements such as energy audits, technical assessments, employee workshops and best practices shared through our internal auditors and energy experts.

Technical projects include:

  • Installation of high efficiency motors, LED lighting and energy meters
  • optimisation of cooling energy production units, compressed air generation and distribution and ventilation and conditioning systems
  • waste heat recovery from our process operations
  • thermal insulation of pipes and valves

Renewable electricityWe are working towards sourcing 100% renewable electricity for our plants. We extended our renewable-energy purchases for Vladimir (Russia) and Poços de Caldas (Brazil). At the end of fiscal year 2020/21, 16 of our plants used 100% renewable electricity from the grid, accounting for around 84% of the electricity we purchased for all our manufacturing sites worldwide.

Our plant in Alfreton (UK) was our first plant with 100% power and gas purchased from the grid with REGO (Renewable Energy Guarantees Origin) and RGGO (Renewable Gas Guarantee of Origin) certificates respectively

Packaging Packaging is one of the biggest challenges facing the food and drink industry. To address it, we are committed to designing 100% of our packaging to be reusable or recyclable or compostable.

Why we do need packaging? Packaging plays a vital role in protecting and preserving products for consumers.

Ensures food safety and optimal quality
Helps to reduce food waste and extend shelf life
Provides information to consumers
Provides a variety of SMALL portion sizes

Packaging preserves food from external contaminants and guarantees taste and quality by preventing spoilage and allowing transport, storage and distribution. Our packaging complies with the most stringent regulations on food contact materials. Consumer safety and product quality are always our priority.

Packaging acts as a protective barrier, reducing exposure to the environment, keeping food and drinks safe for longer, giving consumers more time to enjoy their food. Resealable packs continue to keep food fresher for longer after opening.

Packaging differentiates our brands on the shelf and provides mandatory and voluntary information to help empower consumers to make informed choices. This includes nutrition labelling, Reference Intakes, recycling indications and other information.

Products are provided in a wide variety of portion sizes to fit intended occasions. Individually portioned packs are important to help consumers enjoy the foods they love, as part of a balanced and varied diet.

We are proud of our products and consumer safety and product quality are at the centre of decisions when we design our packaging.
Our Approach

THE 5RS - INTEGRATE THE 5RS INTO OUR ECODESIGN APPROACH

In the development and planning of our packaging, we adopt what we define as the “5R Strategy”, aimed at achieving the very best in terms of quality and freshness, while minimizing the quantity of waste produced.

The 5R are the principles identified by Ferrero as fundamental, which guide the design of our packaging with a view to Ecodesign.

REMOVE: Decrease in the number of packaging elements

REDUCE: Reduction in the use of materials by lightening, reducing of over packaging and design optimization

REUSE: Development and implementation of solutions that can be reintroduced into the production cycle

RECYCLE: Use of recycled materials, and materials with high recoverability at end of life, wherever technically, legally and qualitatively possible

RENEW: Use of materials from renewable resources (avoiding the food chain)

Our Commitment The contribution we can make through packaging is key to reducing our environmental impact. We are conscious of the growing interest consumers have in sustainable packaging, as well as their longstanding expectations of the safety and quality of our products.

Our ambition, and the most important challenge for packaging today, is to increase the circularity of our process without neglecting other relevant environmental impacts. We are committed to evolving towards more sustainable solutions for all our packaging.

Ferrero* remains committed to:

- designing 100% of our packaging to be recyclable, reusable, or compostable
- reducing the use of virgin plastic by 10% compared to a 2020 baseline
- boosting the uptake of recycled content in our plastic packaging to 12%

As stated in our 2021 sustainability report we are 83.1%** of the way to making our packaging recyclable, reusable or compostable. (+1.4% vs FY 2018/2019).

As noted in the Ellen MacArthur Foundation 2022 Global Progress Report, most signatories of the Global Commitment for the New Plastics Economy are facing challenges and some of the key targets will likely not to be met by 2025. These challenges also apply to Ferrero as a signatory to the Global Commitment.

Nevertheless, we continue to make progress, informed by a clear roadmap, working with all our value-chain partners on:

  • Focusing on R&D and open innovation: Reimagining packaging by using new technologies and global partnerships to maximize the use of recycled materials where it is safe for consumers, as well as looking into compostable materials.
  • Collaborating to support the acceleration of infrastructure development, advancing solutions for hard-to-recycle materials, and looking into opportunities to use packaging waste as a resource.
    We are a member of:
    - The Business Coalition For A Global Plastics Treaty
    - The Consumer Goods Forum (Plastic Waste coalition)
    - The Flexible Packaging Initiative
    - The Perfect Sorting Consortium
    - The Recycling Partnership (Polypropylene Recycling Coalition)
  • Informing consumers on how to recycle responsibly. The participation of consumers is key to closing the loop and ensuring the correct disposal of each piece of packaging in each market.

* referred to Ferrero® and its portfolio of brands. Brands included in the scope are: Ferrero Brands, Thorntons, Fannie May and Nestlé US Chocolate business
** information referred to FY 2020/2021