Exclusive: Ferrero sustainability report claims key environmental and social rights gains

A renewed focus on reducing environmental impact, supporting social rights and tackling child labour have formed core targets for Ferrero in its latest major sustainability report, writes Neill Barston.

The company’s 16th annual report, covering its performance during 2024, with its in-depth analysis reaffirming backing for the swift introduction of the corporate due diligence and EUDR landmark deforestation legislation. Notably, the latter has controversially seen pushback from right wing parties and also from some quarters within the confectionery sector in seeking even further delays to its implementation.

Among the core attainments, the company, which is due to play a key role in our fifth World Confectionery Conference, this year being staged in Brussels on 11 September, (register at this link),  has reported that it is in fact already applying the standards laid down by EUDR requirements ahead of its official introduction planned for this December – which has already suffered a setback of a year due to political lobbying that saw its original start date of the beginning of 2025 pushed back.

Linked to this, the global confectionery and snacking group has reported that  97% of its supply chains for cocoa are now traceable, with the same figure being achieved for its palm oil supplies.

Hazelnut supplies are close behind, gaining 94% traceability in its global operations, which has followed specific initiatives to engage with the sector to improve social rights and operating standards governing the segment.

Tackling child labour
As the company noted, it has continued its work with Save the Children to the Centre for Child Rights and Business,  and developed guidelines on child labour prevention and remediation in cocoa in Ivory Coast and Ghana.

These Guidelines build upon its Human Rights Policy Statement, Supplier Code and Cocoa Charter. They are also based on the UNGPs and the Children’s Rights and Business Principles, and have been created to protect the best interests of children in its cocoa supply chain.

Furthermore, the guidelines provide practical guidance and outline its expectations, roles and responsibilities for the company’s supply chain partners to combat child labour in a holistic way.

It has looked to take leadership on the following areas: child labour due diligence, Awareness raising on children’s rights, Responsible recruitment and child protection system and responsible sourcing practices, as well as seeking to deliver fair wages, with the latter issue for many market observers remaining of crucial importance to raising overall standards across the cocoa sector.

The company’s work on nutrition within its brands is set to be the core area of discussion at this year’s World Confectionery Conference, courtesy of specialist Sebastiano Collino (below), as well as his colleague Francesco Tramontin (image above), who will be addressing wider sustainability in confectionery markets as part of our centrepiece QandA  session.

Sebastiano Collino, of Ferrero, will be joining our speaker line-up at the World Confectionery Conference in September in Brussels. Pic; Ferrero

Environmental performance
In terms of its major achievements in environmental performance, the company reported that it has reduced scope 1 and scope 2 emissions by 21% compared against 2018, while at the same time managing to increase its production levels.

The company has also emphasised a commitment to self-generated renewable energy, with over 90% of electricity certified renewable around the world. It has also piloted decarbonising transportation within Europe, and moved to explore further measures to reduce industrial and food waste in its operations. 

In relation to other areas of its environmental performance, the company said that it has worked to meet compliance standards of the newly-introduced Packaging and Packaging Waste regulations.

Its internal measures including signing up to the Global Commitment for a new Plastics Economy back in 2019, which aimed to make all packaging recyclable reusable or compostable by this year, which the business continue to strive to meet.

This has been attained through moves such as converting the materials used in Rocher boxes to meet recycling standards, featuring its new plant based Nutella in a 60% recycled glass jar,  and using its Kinder brand to inform consumers about its environmental goals.  

Speaking in its report, Giovanni Ferrero, executive chairman of the Ferrero group asserted that the business had continued to build on its ongoing package of solutions for delivering further positive environmental gains.

He said: “Despite the backdrop of subdued global economic growth across multiple industries and geographies, coupled with persistent inflationary pressures, our Group has continued on its growth trajectory over this past year. This achievement is a testament to the strength of our strategy, the resilience of our business model, and the unwavering commitment of our teams around the world.

“We remain vigilant, however, as geopolitical tensions continue to cast uncertainty over the global macroeconomic landscape. The evolving environment-marked by geopolitical conflict, abrupt regulatory shifts, and trade uncertainties-demands agility, foresight, and a steadfast commitment to our values.

“It is increasingly evident that organisations which embody resilience, uphold responsibility, and maintain a long-term strategic vision are best positioned to generate sustainable value for society.”

In addition, Lapo Civiletti, CEO of Ferrero, believed strong overall progress had been made by the business, notably surrounding the fact that over 90% of its ingredients are fully traceable. 

He also cited ongoing work to ensure child labour is both prevented and eliminated in its supply chains, as well as attaining key environmental markers including 97% of its palm oil now being certified deforestation free.

He said: “I am honoured that we have been recognised externally for our progress across many areas. The Global Child Forum’s report, The State of Children’s Rights and Business 2024, placed Ferrero among the leading companies exhibiting best practice in protecting and advancing children’s rights.

“We have also received the l&D Ally Award at the World 50 Group Inclusion and Diversity Impact Awards, reflecting our ongoing efforts to create an inclusive culture where all colleagues can contribute to the success of our company. Our work in the palm oil supply chain was recognised by the World Wildlife Fund (WWF), placing us 2nd out of 285 companies in the Palm Oil Buyers Scorecard.”