Ferrero Expands ESG Actions Across Global Operations

Ferrero is strengthening its ESG strategy by expanding supply chain traceability, decarbonization, water stewardship and circular packaging, while aligning operations with evolving international sustainability standards such as the EU Deforestation Regulation. The initiatives reinforce resilience across agricultural supply chains and manufacturing, with implications for food producers, suppliers and exporters operating in Mexico, including investments in water efficiency and community development at the company's Guanajuato operations.

Ferrero Group published its 2024/25 Sustainability Report, detailing how environmental, social and governance (ESG) criteria have been integrated into its global business strategy. The report outlines an approach that spans the company's agricultural sourcing communities, manufacturing facilities and finished products.

At the core of the company’s strategy is the consolidation of the Ferrero Farming Values framework, designed to strengthen operational resilience and ensure the responsible sourcing of key ingredients. The model is built around five technical pillars: supplier due diligence, supply chain traceability, independent certification, agricultural community development and sector-wide transformation.

"Ferrero's long-term success remains closely linked to the well-being of the people and ecosystems our supply chain depends on. Consumers are increasingly looking for brands they can trust, built on quality, responsible sourcing, careful manufacturing and a genuine commitment to people and the planet," said Giovanni Ferrero, Executive Chairman, Ferrero Group.

During the reporting period, the company expanded geolocation and auditing efforts across its key ingredients, including coffee, palm oil, cocoa and hazelnuts, through agricultural polygon mapping. Traceability exceeded 96% for all four commodities, aligning with the requirements of the European Union Deforestation Regulation (EUDR).

Using this approach, Ferrero analyzed nearly 230,000 agricultural polygons across its supply chain. In addition, 100% of its coffee beans and 99% of its cocoa volumes were sourced under segregated independent certification schemes, including Rainforest Alliance, Cocoa Horizons and Fairtrade. Meanwhile, 100% of its palm oil was certified by the Roundtable on Sustainable Palm Oil (RSPO). On the social front, the company expanded its partnership with Save the Children in Côte d'Ivoire, with the goal of reaching 235 cocoa-growing communities by 2030.

"Ferrero Farming Values translates our sustainability approach into concrete actions for sourcing our key ingredients. It provides a structured framework to strengthen supplier accountability, improve traceability and certification, support farmers and foster collaboration across the sector," said Lapo Civiletti, CEO, Ferrero Group.

On the environmental front, Ferrero continued implementing its Climate Transition Plan, supported by the launch of its Decarbonization Center, a new tool that enables manufacturing sites to develop and implement scalable decarbonization roadmaps across operations.

The company reduced its Scope 1 and Scope 2 greenhouse gas emissions by 7.2% year over year, driven in part by 24 manufacturing plants that now operate using 100% renewable electricity from the grid. Moreover, it launched a Scope 3 supplier data collection campaign covering approximately 60% of its raw material volume, achieving a 93% supplier response rate.

The company also completed its first Group-wide Corporate Water Footprint assessment. The analysis estimated that more than 80% of total water withdrawals are associated with raw material production, underscoring the water-intensive nature of agriculture.

To address this challenge, Ferrero has implemented water efficiency initiatives at its manufacturing sites. At its Guanajuato facility, the company installed new water meters at strategic locations to expand its monitoring network, improve water management and support deeper consumption analysis. It also launched employee awareness programs to promote responsible water use.

In May 2025, Ferrero also joined the Alliance for Water Stewardship (AWS). "AWS provides a structured framework that helps us better understand local water challenges, strengthen site-level water management, and engage meaningfully with relevant stakeholders in the catchments we operate in," the company stated.

Regarding circularity, Ferrero reported that 92.9% of its packaging portfolio is designed to be recyclable, reusable or compostable. However, only 86.8% currently achieves those outcomes in practice and at scale. Furthermore, by redesigning Ferrero Rocher chocolate boxes, they reduced the amount of plastic used per product by 14.7% compared to the 2019/20 baseline. Since September 2021, this initiative has prevented the generation of approximately 16,000t of plastic waste.

The fiscal year also included an update to Ferrero's science-based nutrition criteria, which guide product innovation across its portfolio. The company's nutrition standards are based on recommendations from international agencies and expert organizations, while also considering technological capabilities, the nutritional composition and taste performance of Ferrero products. The standards emphasize overall energy content and encourage the inclusion of dairy, nuts, fruits, whole grains, legumes, seeds and vegetables.

At the same time, Ferrero updated its Advertising and Marketing Principles to reinforce responsible communication. The guidelines commit the company to truthful, fair and evidence-based advertising, avoiding marketing primarily directed at children under the age of 13; encouraging responsible product consumption; protecting personal data; remaining sensitive to cultural and social contexts; and accurately communicating the sustainability attributes of its products and social responsibility programs.

The company's global children's physical activity initiative, Joy of Moving (JOM), also marked its 20th anniversary in 2025. During fiscal year 2024/25, the program reached more than 4.9 million children across 35 countries through a network of approximately 130 public and private expert partners, representing an increase of more than 1 million children compared to the previous year.

Joy of Moving is an educational methodology that combines physical activity with digital engagement, offering children an interactive "phygital" experience designed to encourage movement and play. According to the company, the program has demonstrated measurable benefits in coordination, balance, agility, memory, problem-solving and concentration.

In Guanajuato, Ferrero partnered with the state government to introduce the methodology into public elementary schools between 2025 and 2030. The initiative includes training 1,000 physical education teachers by providing pedagogical resources and sports equipment. Through the program, the state expects to prepare more than 2,000 trained coaches, benefiting over 1 million children.

Additionally, 75 trainers from the State Ministry of Education and the state DIF system were selected to receive specialized training in Italy and qualify as "super trainers" under the Joy of Moving program. They will serve as multipliers in their communities by mentoring other teachers and supporting the proper implementation of the methodology.

"Joy of Moving is an expression of our commitment to the communities where we operate. We are proud of this partnership with the state of Guanajuato, under the leadership of the Governor, who shares our vision," said Paolo Cornero, President and CEO of Ferrero Mexico and Central America, during the program's presentation in Leon, Guanajuato, in July 2025.

"Our sustainability framework has supported this growth and will be instrumental in maintaining our success in the years to come, as we continue to innovate boldly and source responsibly, playing our part in building resilient communities and protecting nature for current and future generations," underscored Civiletti.