#Sustainability #Luxembourg #Ferrero #Farming Values

Ferrero has released its 2025 Sustainability Report, marking the company's commitment to impactful practices that foster sustainable supply chains. Within this report, Ferrero emphasizes the significance of the "Ferrero Farming Values" initiative, framing it as an essential component of its sustainability approach. As the brand celebrates its 80th anniversary, it showcases the integration of sustainability initiatives across its operations, from sourcing agricultural products to finalizing their offerings. The report delineates the progress made under four key sustainability pillars: climate and environmental responsibility, procurement, responsible consumption, and community well-being.

Giovanni Ferrero, the Group's President, speaks to the vitality of ensuring the well-being of both people and ecosystems intertwined with their supply chain. In an era where consumers increasingly seek trustworthy brands that prioritize quality and sustainable practices, Ferrero’s long-term vision remains pivotal. They are committed to fostering initiatives that preserve natural resources while creating enjoyable products for future generations.

Ferrero's sustainability philosophy, captured in the Italian adage "sacco conosciuto" (meaning "knowing what’s in the bag"), is foundational to the "Ferrero Farming Values" framework. This framework revolves around five core pillars: supplier due diligence, supply chain traceability, certifications and standards, agricultural practices, and sectoral transformation. Collaborative efforts with stakeholders are essential to tackle systemic challenges in their major sourcing streams, such as cocoa, palm oil, hazelnuts, coffee, and dairy products.

Lapo Civiletti, the Group's CEO, elaborates that the Farming Values initiative translates sustainable practices into actionable steps for ingredient procurement. This structured approach not only increases supplier accountability and improves traceability but also supports farmers and encourages industry-wide collaboration tailored to each supply chain’s unique challenges.

Key Highlights from the 2025 Sustainability Report include:

• - Sustainable Ingredient Sourcing: A notable 98% traceability level in cocoa sourcing through polygons on farms, along with similar high rates for palm oil, hazelnuts, and coffee. Nearly 230,000 polygons were analyzed in line with the European Regulation against Deforestation (EUDR), bolstering supply chain visibility and ensuring deforestation-free sourcing.
• - Environmental Initiatives: The launch of the Decarbonization Hub marks a pivotal step in executing scalable decarbonization roadmaps across Ferrero's production sites. The company has observed a 7.2% reduction in Scope 1 and 2 greenhouse gas emissions, attributed to a transition towards renewable energy sources in its industrial operations.
• - Packaging Sustainability: Ferrero aims for 92.9% of its packaging to be recyclable, reusable, or compostable. This extensive redesign effort has led to significant reductions in plastic use across products.
• - Responsible Consumption: The brand has adopted new nutritional criteria to guide product innovation while enhancing its marketing principles to promote responsible communication.
• - Employee and Community Engagement: An emphasis on inclusivity through the Respect Program is seen in Ferrero’s commitment to strengthening workplace culture. The initiative is being executed across 61 countries with active employee participation rates.
• - Educational Outreach: The Joy of Moving initiative celebrated its 20-year milestone, positively impacting over 4.9 million children globally.

In conclusion, Ferrero's 2025 Sustainability Report underscores the brand's commitment to comprehensively integrating sustainability into its business model. With a keen focus on collaboration, innovation, and transparency, Ferrero continues to pave the way toward a more sustainable future while maintaining the caliber of its beloved products. For further details, the full report is available for review.