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Investor Presentaiton

Ferrero Group Sustainability Report 2022 About this report Introduction Our sustainability progress Our reporting F Along with the objectives set out in previous reports, the issues in this 14th edition have been selected via a materiality process involving internal and external stakeholders, described in the 2020 Sustainability Report. This report has been prepared in reference to the revised GRI Universal Standards. The GRI Content Index is available in the section 'Sustainability Reports' on our website: www.ferrerosustainability.com. Previous reports are also available on this page. The following points of reference were also taken into consideration when developing the report: • The 'Ten Principles' of the United Nations Global Compact (UNGC). The GRI and the UN Global Compact publication 'An Analysis of the Goals and Targets. The report was prepared by the Strategy, CSR & Sustainability organisational unit with the contribution of several internal departments. The scope of financial data included in the report corresponds with Ferrero International's consolidated financial statement. With regard to the qualitative and quantitative data on social and environmental aspects, the following entities were excluded from the scope of reporting (except where specified): The companies belonging to Kellogg's are: cookie, fruit snack, ice cream cone and pie crust businesses, Ice Cream Factory Comaker, Eat Natural and FULFIL Nutrition (acquired in 2022). Information on the Piera, Pietro and Giovanni Ferrero Foundation ('Ferrero Foundation') is included in a specific chapter. This report was the subject of a limited assurance engagement (under the International Standard on Assurance Engagements 3000) (Revised) 'Assurance Engagements other than Audits and Reviews of Historical Financial Information') by PwC Luxembourg in some of its parts. The details of the assurance are reported on page 90. Changes in calculation methodologies of previously published figures, provided for comparison, are clearly indicated. This report was published on 21 June. We will continue to publish reports on an annual basis. A note about disruptions For Ferrero, many of our goals are set as 100% achievements. This comes from our real and honest intention to implement credible and sustainable practices across our supply chain and within the spheres of our control and ability to influence. For instance, whenever we report that we have achieved or aim to achieve 100% sustainable supply of a specific raw material, our commitment is to always maintain minimum operational levels above 95%, considering that farmers can face many types of issues and supply chain disruptions can affect the supply of our own plants. Where we encounter situations that temporarily disrupt our sourcing volumes, and hence drop our achievements below 100%, our commitment is to quickly understand and mitigate the conditions that affect us and our suppliers - all the way to our farmers so that we can return to the desired 100% achievement as quickly as possible. About our environmental data Data collection We manage the collection and analysis of plants' data through an internal platform called SuRe (Sustainability Reporting). This tool allows better management, flow optimisation and data transfer. Moreover, we have developed with Exentriq, a dedicated platform to aggregate, validate and manage all Group environmental data, using innovative technologies and allowing more complex analyses. Standards and methodologies Our carbon footprint is based on the Corporate Accounting and Reporting Standard - GHG Protocol - developed by the World Resources Institute (WRI) for the World Business Council for Sustainable Development (WBCSD), today used globally as the main internationally recognised measurement tool and carbon reporting standard. We account our GHG emissions using an operational control approach. The environmental impact assessment is carried out following the ISO 14040 and ISO 14044 LCA standards, including the relevant Principles and Reference Framework, Requirements and Guidelines. Within the GHG calculations, the conversion and emissions factors were unchanged as of fiscal year 2017/18 to keep consistency with the same SBTi baseline year. The emission factors related to the conversion of energy from fuels come from Ecoinvent 3.4 database datasets and EPA Centre for Corporate Climate Leadership - GHG Emissions Factors Hub (March 2018). Products made in-house from renewable sources and the electricity supply from a marketplace certified by renewable sources do not contribute to greenhouse gas emissions, which follows best practice examples stated in GHG protocol. Emissions from cooling gases have been calculated using the IPCC Fifth Assessment Report, 2014 (AR5) emission factors, 100-year horizon. The emissions resulting from leased cars were calculated based on data collected internally from all 30 countries in which we have leased cars. Calculation details The percentage of recycled materials in packaging represents an estimate on the quantity of recycled content, as per our total packaging materials. For paper and cardboard, the data is based on a calculation based on the composition of the materials purchased. For rPET and rPP, the data is the exact calculation of the recycled material purchased in the reference year of this report. For glass and aluminium the data comes from the suppliers' surveys and takes into account the different 88
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