Climate Change Data

Environmental Metrics

ESG Focus Areas

• Enhancing Local Communities
• Healthy Lifestyle
• Sustainable Agricultural Practices
• Minimizing Environmental Impact

Environmental Achievements

• CO2 emissions decreased by 14% and primary energy consumption by 7% compared to the previous year.
• 11 production plants received ISO 14001 certification for environmental management systems.

Social Achievements

• Launched and expanded Ferrero Foundation's active-aging program for retired employees.
• Established Ferrero Social Enterprises in India, South Africa, and Cameroon, creating jobs and supporting local development.

Governance Achievements

• Implemented the ABCDE Plan to share the Code of Business Conduct with internal and external stakeholders.
• Renewed the Ferrero European Works Council Institution Agreement.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Ensuring sustainability throughout the value chain.
• Achieving 100% certified sustainable cocoa, coffee, palm oil, and hazelnuts.

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Implemented the ABCDE Plan to share the Code of Business Conduct.
• Partnered with certification schemes like UTZ, Rainforest Alliance, and Source Trust.
• Launched specific projects in cocoa-producing countries to improve farmer livelihoods and address child labor.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ferrero Code of Business Conduct
• MPG Code for toys
• Ferrero Ethical, Social and Environmental Requirements for Suppliers of Kinder Toys

Climate-Related Risks & Opportunities

Physical Risks

• Availability of high quality raw materials
• Water availability

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3.1, ISO 26000

Certifications: ISO 14001, ISO 9001, ISO 22000, IFS

Third-party Assurance: Deloitte

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2011 Top 100 of Most Reputable Companies (22nd place)
• National Award for Corporate Citizenship (France)
• Top Brand Award (Germany)
• Falck Family-Owned Business Award
• Award for Best Design (USA)
• Award for Bronze Partner (Australia)
• International Quality Crown Award (South America)
• Best Promotion of Mercosur (Brazil)
• Best Cylinder Execution Award (Turkey)
• Best Sales Team Award (Belgium)

Environmental Metrics

ESG Focus Areas

• Products
• Ferrero Foundation of Alba
• Ferrero Social Enterprises
• Kinder+Sport
• Human Rights
• Sustainable Sourcing
• Environmental Protection
• Anti-corruption

Environmental Achievements

• CO2 emissions decreased by more than 12% per unit of product
• Primary energy consumption cut by 15% compared to 2010
• Water consumption reduced by more than 7% per unit of product
• Waste recovery index of production plants surpassed 90%

Social Achievements

• Ferrero Foundation of Alba provided activities for over 1,800 retired employees
• Ferrero Social Enterprises employed 2,435 people
• Kinder+Sport program involved 12 million children in 20 countries

Governance Achievements

• Implemented the IFBA strategy for marketing and advertising to children
• Achieved positive evaluations in the EU Platform for action on diet, physical activity and health

Climate Goals & Targets

Environmental Challenges

• Difficult international situation
• Slowdown in consumption of food products in some European markets
• Rise in prices of principal raw materials

Mitigation Strategies

• Significant investment in technical developments (5.1% of sales)
• Expansion into new markets (Asia, US, Russia)
• Opening of new production plants (India, Mexico, Turkey)

Supply Chain Management

Responsible Procurement

• Ferrero Code of Business Conduct
• ABCDE Plan
• Sustainable sourcing standards for raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Availability of high-quality raw materials
• Availability of water

Transition Risks

• Policies of raw material producing countries
• International policy on waste disposal and packaging

Opportunities

• Development of energy-efficient products
• Carbon credit initiatives

Reporting Standards

Frameworks Used: GRI, UNGC, ISO 26000, OECD Guidelines for Multinational Enterprises

Certifications: ISO 14001, ISO 9001:2008, FSSC 22000

Third-party Assurance: Deloitte

Awards & Recognition

• Universum Employer of Choice Award
• International General Counsels Award
• Best Employer of Choice Award
• Reputation Institute Award
• Randstad Award
• UK-Italy Business Award
• ISO 26000 Evaluation
• Mercurio Award
• Most Innovative Partnership Award (SITL)
• Taste of the Year Award
• DAAB Best Practice Award
• Energy Efficiency Leader Award
• Inter-Generation Dialogue Award
• Products Safety and Quality Award
• Empresas Sociales Award
• Global Association for Marketing and Retail Awards
• Best Supplier Award
• Quality and Safety Award
• New South Wales Government’s Sustainability Advantage Program
• Great Place to Work Award
• Asian CSR Leadership Award
• Guinness World Records
• NIAF Award
• Product of the Year Award
• Gold Panda Award

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Products
• Ferrero Foundation
• Ferrero Social Enterprises
• Kinder+Sport

Environmental Achievements

• CO2 emissions per product unit from production activities decreased by an additional 5% compared to the previous fiscal year.
• Water consumption decreased by around 6%.
• Reached 100% sustainable palm fruit oil certified RSPO (Roundtable on Sustainable Palm Oil) as segregated in December 2014.
• Reached 100% of eggs from barn hens with respect for animal welfare regarding all EU plants in September 2014.

Social Achievements

• Increased sales by about 4% (7% organic growth) in FY 2013/2014 compared to the previous year.
• Invested more than 5% of sales in consolidating industrial and production activities.
• Opened a new production plant in China.
• Launched Kinder+Sport worldwide project to encourage sport and spread the joy of moving to kids.
• Expanded Kinder+Sport to 30 countries and reached 5 million children.

Governance Achievements

• Acquired 100% of Oltan, a market leader in hazelnut supply, processing, and sale.
• Applied a traditional corporate governance model with the Shareholders' Meeting and the Board of Directors in a central role.
• Established the Audit Committee to advise on internal control systems.

Climate Goals & Targets

Environmental Challenges

• Changes to the scope of environmental data reporting made data from the "Minimising Environmental Impact" chapter not comparable to previous reporting periods.
• Supply chain disruptions are not explicitly mentioned, but implied through the focus on sustainable sourcing of raw materials.

Mitigation Strategies

• Developed specific verification protocols for the sustainability of agricultural raw materials (e.g., Ferrero Farming Values protocol for hazelnuts).
• Implemented sustainable sourcing strategies for main raw materials (cocoa, palm oil, hazelnuts, sugar, eggs, milk).

Supply Chain Management

Supplier Audits: Suppliers were audited in food quality, food safety, specific certifications for agricultural raw materials, and Ferrero codes for toys.

Responsible Procurement

• Ferrero Code of Business Conduct
• Ferrero Farming Values protocol
• Ethical, Social and Environmental Requirements for Suppliers of KINDER® Toys

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative)

Third-party Assurance: Deloitte

Awards & Recognition

• Randstad Award 2015 (most attractive company)
• Good Egg Award 2015 (animal welfare)
• Best CSR Award 2015 (Reputation Institute)
• Bonsucro Leadership Award 2014

Environmental Metrics

ESG Focus Areas

• Protect the environment
• Source ingredients sustainably
• Promote responsible consumption
• Empower people

Environmental Achievements

• Increased energy efficiency and confirmed a central capital-expenditure programme aimed at reducing carbon footprint.
• Increased share of renewable electricity to more than 80% globally and 100% in Europe.
• Waste-recovery rate improved, with five factories achieving 100% recovery and seven over 99%.
• Global KPI on packaging reusability, compostability and recyclability increased to more than 83% by weight.
• Reduced the use of virgin plastic in Ferrero Rocher boxes by 40% and 38%.

Social Achievements

• Launched a global Wellbeing programme to promote the long-term health and wellbeing of all employees.
• Transformed approach to Diversity & Inclusion, engaging 150 senior leaders.
• Published first Human Rights Report.
• Continued social-responsibility programmes through the Ferrero Foundation, the Michele Ferrero Entrepreneurial Project and Kinder Joy of moving.
• Supported the development of over 111,000 hectares of agroforestry, involving 70,000 farmers in cocoa production.

Governance Achievements

• Established a Sustainability Operative Committee.
• Published our Cocoa Charter, Palm Oil Charter and Hazelnut Charter.
• Implemented a Supplier Code applying to all spending categories.

Climate Goals & Targets

Environmental Challenges

• Pandemic highlighted inequalities and caused social and economic impacts.
• Disruptions to global freight and logistics, raw-material and energy price inflation.
• Complex challenges in cocoa supply chain (poverty, child labour, deforestation).
• Complexities in hazelnut supply chain (traceability, migrant worker exploitation).
• Negative impacts of palm oil production (deforestation, biodiversity loss, labour issues).

Mitigation Strategies

• Demonstrated business resilience and continued progress on sustainability plans.
• Developed detailed plan to reduce emissions from plants, warehouses and offices.
• Worked with suppliers to reduce emissions and develop lower-carbon solutions.
• Invested in energy-efficient technologies, on-site renewable energy, and alternative sustainable fuels.
• Increased renewable electricity purchases.
• Published Commodity Charters outlining minimum supplier requirements.
• Implemented a four-step approach to supplier risk management and due diligence.
• Invested in partnerships with NGOs to improve supply chain standards.
• Used satellite monitoring to monitor deforestation in palm oil supply chain.
• Implemented traceability systems for cocoa, hazelnuts, and palm oil.

Supply Chain Management

Supplier Audits: Around 4,000 suppliers enrolled in due diligence process by August 2021; 800 high-risk suppliers to undergo risk assessment in 2022.

Responsible Procurement

• Supplier Code covering human rights, environmental protection, and transparency.
• Commodity Charters (Cocoa, Palm Oil, Hazelnut) setting minimum supplier requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Energy efficiency improvements, renewable energy adoption.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 50001, FSSC 22000

Third-party Assurance: PwC Luxembourg (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-designed polypropylene boxes for Ferrero Rocher.

Awards & Recognition

• Not disclosed