- Climate change
- Water & Waste
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.
** 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.
- 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 new commitment to make 100% of our packaging to be reusable, recyclable or compostable by 2025 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.
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.
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.
Packaging Packaging is one of the biggest challenges facing the food and drink industry. To address it, we have committed to making 100% of our packaging to be reusable or recyclable or compostable by 2025. We will only achieve it if we stretch our boundaries, work in partnerships with others and invest in R&D and Open Innovation to develop new packaging solutions across our products and operations around the world.
Why we do need packaging? Packaging plays a vital role in protecting and preserving products for consumers.
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.
Our Approach Consumer safety and product quality are at the centre of decisions when we design our packaging. As part of our commitment to offering the highest-quality food and drinks, we are commited to increase the circularity of our packaging. We use fact-based data and invest time and resources in developing projects and exploring opportunities to overcome the barriers to circular packaging. This means testing solutions in real conditions, including end of life, and going the extra mile when it comes to consumer safety and product quality.
Reimagining products and packaging to meet the expectations of consumers requires putting innovation at the centre of our efforts, collaborating with relevant partners along the value chain, engaging global and local suppliers and partners and partnering with key stakeholders to contribute to the definition of guidelines and testing protocols for the evaluation of packaging materials. It also means engaging and educating consumers, the final key element of a successful shift towards a more circular economy.
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.
Our 2025 Commitment 100% of packaging to be reusable, recyclable or compostable by 2025
As part of our support for the circular economy, in 2019 Ferrero announced a commitment to make its packaging 100% reusable, recyclable or compostable by 2025. As part of this announcement, we signed the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment, reflecting our ambition to play an active role in eliminating problematic and unnecessary plastic packaging through redesign and innovation.
Our roadmap to 2025 focuses on a number of key areas:
- 1. Existing packaging development and redesign Evolving our current packaging to ensure recyclability and compostability through alternative materials and packaging redesign. Our designers develop packaging solutions and identify materials that enable end-of-life disposal, collection, sorting and processing. Eco-design guidelines and tools provide defined procedures for packaging projects globally.
- 2. R&D and Open Innovation Reimagining packaging sustainability by leveraging new technologies, accelerating implementation through global partnerships, maximising use of recycled materials where it is safe for our consumers, and exploring next generation compostable packaging materials, in particular marine compostable, to help protect our oceans.
- 3. Partnering with recyclers and national waste management systems Developing solutions for hard-to-recycle materials and exploring opportunities to use packaging waste as a resource. Exploring the opportunity to adopt new business models: promoting packaging reuse in a closed-loop system.
- 4. Educating consumers for a successful transition to a circular economy and actions to eliminate waste Using the power of our brands, we want to equip more people with knowledge and tools, offering recycling tips, upcycling opportunities and clear end of life information.