Climate Change Data

Ferrero International S.A.

Climate Impact & Sustainability Data (2022-09 to 2023-08)

Reporting Period: 2022-09 to 2023-08

Environmental Metrics

Total Carbon Emissions:7,502,303 tCO2e/year (A)
Scope 1 Emissions:484,962 tCO2e/year (A)
Scope 2 Emissions:344,259 tCO2e/year (A)
Scope 3 Emissions:6,954,798 tCO2e/year (A)
Renewable Energy Share:86.6% (A)
Total Energy Consumption:10,835.57 TJ/year (A)
Water Consumption:5,093,589 m3/year (A)
Waste Generated:98,731 tons/year (A)
Carbon Intensity:4.3 tCO2eq/t prod. (A)

ESG Focus Areas

  • Protecting the environment
  • Sourcing ingredients sustainably
  • Promoting responsible consumption
  • Empowering people
  • Climate action
  • Human rights in the supply chain
  • Plastic and packaging
  • Products’ and ingredients’ safety
  • Transparent supply chain

Environmental Achievements

  • 10% absolute reduction in Scope 1 and 2 GHG emissions since 2018, despite 16% production growth.
  • 17 plants using 100% renewable electricity.
  • 3.9% reduction in energy intensity (7.41 to 7.12 GJ/tonne of product).
  • 90.7% of packaging designed to be recyclable or reusable (increase of 2.2%).
  • 20% water reduction in plant water intensity compared to 2021/22.
  • 9.6% reduction in water consumption ratio for manufacturing plants and warehouses compared to 2021/22.
  • 12 production plants reached a waste-recovery rate higher than 99%.

Social Achievements

  • Launched Ferrero global employee survey "You – Your Voice – Our Company – Unique Values."
  • Global Parental Policy implementation.
  • Kinder Joy of moving reached over 3.4 million children.
  • 100% Ferrero legacy plants certified against GFSI recognised Standard.
  • Zero critical non-conformities detected during FSSC22000 audits.
  • Over 4,500 children reached through partnerships in the Turkish hazelnut supply chain.
  • Over 46,000 children and adults reached in Côte D’Ivoire cocoa-sourcing areas.
  • Over 4,000 workers benefitted from supplier engagement projects in Peninsular Malaysia.

Governance Achievements

  • Updated Code of Ethics.
  • Double materiality assessment conducted.
  • Ferrero Headquarters became a signatory of the Diversity Charter Lëtzebuerg.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 emissions by 50% by 2030.
  • Reduce Scope 1, 2 and 3 emissions intensity by 43% by 2030.
  • Maintain >90% recyclable, reusable, or compostable packaging.
Short-term Goals:
  • Reduce virgin plastics by 10% by 2025.
  • Increase plastic recycled content by 12% by 2025.

Environmental Challenges

  • Global turbulence, geopolitical conflicts, energy market tension, supply chain volatility, inflationary pressure, climate change impacts.
  • Reducing Scope 3 emissions (raw materials, packaging, logistics).
  • Complexity of sourcing raw materials and limited decision-making authority in the global supply chain.
  • Post-acquisition integration processes for newly acquired brands.
  • Lack of recycling infrastructure for plastic films.
  • Patchwork of packaging legislation in different countries.
Mitigation Strategies
  • Investing in energy-efficient technologies, renewable energy, and sustainable alternative fuels.
  • Conducting Lifecycle Assessments (LCAs) for key ingredients.
  • Implementing a monitoring tool for logistics GHG impacts.
  • Piloting decarbonising transportation (biogas, HVO, electricity, rail).
  • Transitioning from multi-material to mono-material flexible films.
  • Working with external associations to enhance packaging circularity.
  • Establishing transition plans for acquired brands to implement responsible sourcing standards.

Supply Chain Management

Supplier Audits: Over 1,500 on-site or remote audits per year.

Responsible Procurement
  • Ferrero Supplier Code
  • Commodity Charters (Hazelnut, Palm Oil, Cocoa, Dairy)
  • Traceability and transparency initiatives
  • Mitigation programmes

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts
  • Floods
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Energy-efficient technologies
  • Renewable energy

Reporting Standards

Frameworks Used: GRI Universal Standards, UNGC

Certifications: ISO 14001, ISO 50001, FSSC 22000

Third-party Assurance: PwC Luxembourg

UN Sustainable Development Goals

  • Not disclosed

Multiple SDGs identified through a third-party assessment, with varying levels of impact.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Best Product Innovation for Sustainability (EIIS)
  • Global Child Forum’s Child’s Rights Benchmark (top 5 in food & beverage)