Ferrero rated by WWF as leading business for sustainable palm oil sourcing
Italian-founded confectionery group Ferrero has welcomed results of a WWF Palm Oil Buyers Scorecard, which rated the company as number one out of 173 sector businesses for its sustainable sourcing policies.
The initiative from the leading environmental charity scored the company 21.5 out of 22, ranking the business as leading the industry of major global retailers, consumer goods manufacturers and food service companies.
Ferrero was recognised in the report for its efforts to address the issue of deforestation in tropical areas, and for the transparency of its supply chain. The company has used palm oil in its products including Nutella spread, but it has stressed its commitment to using sustainable sources.
Speaking on its Palm Oil Buyers scorecard WWF noted that Ferrero, which was recorded as having used 204,200 tonnes of palm oil in 2019, has set a notable standard. Mars, Incorporated scored a total of 17.3 in the study, with Nestle achieving a total of 17, and Hershey 16.
The report said: “Only one company, the consumer goods manufacturer Ferrero, has scored over 20 points (out of the maximum 22), sending an encouraging signal to the rest of the industry that sustainable and deforestation-free palm oil is achievable.”
As Ferrero noted, since 2005, the firm has considerably invested in the sustainability of its palm oil supply chain, which Confectionery Production has previously reported on. In its 9th annual Corporate Social Responsibility report, the company noted that it had now achieved a total of 70% of its cocoa sourced from sustainable value chains.
The company said: “We were one of the first companies to source 100% certified as segregated palm oil. Moving forward, we recognised the need to support projects which go beyond certification to broaden sustainability standards in the industry. We very much appreciate that our efforts are being recognised by WWF, who is a very important stakeholder in driving the sustainability of the whole palm oil sector.
“While we have made significant progress especially in the areas of traceability, Ferrero will continue its investment and remains fully committed to securing a 100% deforestation-free, and exploitation-free palm oil supply chain and to leading the way in industry transformation through active collaboration with NGOs, key stakeholders and suppliers.”
The company added that the results were an important step forward for the business in its efforts to secure even greater levels of sustainably sourced palm oil.