Investor Presentaiton
Ferrero Group
Sustainability Report 2022
Introduction
Our sustainability
progress
Our reporting
F
Flexible Packaging
Initiative as part of
our strategy to fill
in gaps in film
circularity.
Ferrero recently joined the Flexible
Packaging Initiative, where the six brand
owners have agreed to increase
investment and provide support for a
series of public policy interventions to
accelerate the transition toward a circular
economy for flexible packaging across
Europe.
Participants to the initiative are committed
to working with partners and governmental
bodies to improve infrastructure and go
beyond individual packaging design efforts,
by providing concrete proposals to help
enable effective collection, improved
sorting and innovative recycling of flexible
packaging across Europe.
Circularity of flexible packaging needs
complementary technologies to be further
developed and the mass-balance
approach as a bridge from a linear to a
circular system.
C Flexible Packaging Initiative
Driving Circular Economy for Flexible Packaging in Europo
Even where infrastructure for collection, sorting
and recycling is not fully developed, it is crucial to
have flexible films that are technically recyclable,
that is, designed according to design-for-
recycling guidelines. This will ensure these films
can enter a waste-management system, feeding
a valuable mono-material stream, as soon as the
collection infrastructure is in place.
To be part of the change, we have recently
joined the Flexible Packaging Initiative (FPI)
to further focus on the need for action on this
circularity gap.
Partnering with recyclers and
national waste-management
systems:
To support waste-management improvements
proactively, we are investing in R&D projects
with peers to upgrade current sorting and
recycling technologies. In detail, we collaborate
with brand owners, researchers and
technicians to:
1. develop artificial intelligence (Al) models to
enhance the efficiency of the sorting process
2. update and improve sorting and recycling
technologies for plastic packaging.
Perfect Sorting and The Recycling
Partnership projects to boost circularity
of plastic packaging
The need to improve sorting of packaging for
better quality and increased quantities is part
of the Ferrero vision and strategy to boost the
availability of high-quality recycled plastics.
Circularity of plastic packaging is developing
at different speeds and with different
geographical coverage. We're focusing on
different areas with a dedicated approach.
PERFECT
SORTING CONSORTIUM
In Europe, Ferrero is a founding member of the
Perfect Sorting consortium, 19 together with
other eight brand owners, an independent 'test
and research' centre and two universities. The
project aims to improve sorting of packaging
waste by using Al. The goal is to develop an Al
decision model to detect, identify and classify
packaging beyond the current sorting streams.
An Al decision model can help properly
separate post-consumer waste, such as food
and non-food packaging, and allow recycled
raw materials to meet the specifications
required to be used again for food-grade
applications within a circular economy. These
steps are necessary for recycling flexible,
multi-material packaging. Collaboration
among peers and organisations along the
value chain, and across regions, is key to
dealing with common challenges. The Perfect
Sorting Consortium aims to make the Al
decision model widely available for use in
sorting plants in Europe in the coming years.
Polypropylene
Recycling Coalition
THE RECYCLING PARTNERSHIP
In May 2022, Ferrero joined The Recycling
Partnership in an effort to increase recycling
access and collection, legislative advocacy,
consumer research and education, analytic
tools with the national database and
infrastructure investment in the United States.
Within the partnership, we have joined the
Polypropylene Recycling Coalition to take the
lead in boosting rigid PP packaging collection
and recycling.
The coalition focuses on increasing education
and access for people to recycle rigid PP
packaging through kerb-side collection
programmes, ensuring more recycling
processing facilities can sort the material
successfully, and stimulating a robust end-
market of high-quality recycled polypropylene
for reuse in packaging.
Since the launch of the Polypropylene
Recycling Coalition, in 2020, its grants have
proven highly successful at rapidly affecting
the recycling system. The Coalition has
awarded multiple grants, improving PP
recycling for nearly 8% of all US households
and improving recycling for 20 million people
in the United States 20.
19. Perfect Sorting Consortium: Assessing the future of
packaging waste sorting (ntcp.nl)
20. Polypropylene Recycling Coalition
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