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Investor Presentaiton

Ferrero Group Sustainability Report 2022 Packaging design and the circular economy Introduction Our sustainability progress Our reporting F 03 28 The contribution we can make through packaging is key to reducing the impact of our products and our Company have on the environment. We are conscious of the impact we may have on the planet, and we address our consumers' expectations regarding sustainable packaging, safety and quality of our products. Our ambition, and the most important challenge for packaging today, is to increase the circularity of the materials we use, considering other relevant aspects - we aim to optimise our packaging material volumes, minimise the use of resources, and reduce the overall carbon footprint and food waste. To better contribute to packaging circularity, we are focusing on designing (and, where necessary, on re-designing) all of our packaging to be recyclable, reusable or compostable. We currently stand at 88.5% of this target. Additionally, we are working to reduce the use of virgin plastic by 10% and to boost the use of post-consumer recycled content in plastic packaging, toward a 12% goal for overall plastic packaging. Ferrero has faced unexpected and extraordinary challenges during the past months, including, among other constraints, shortages of raw materials and packaging equipment components. On top of this, we note that the infrastructure necessary to handle waste as a resource is still underdeveloped or at an early stage in several areas of the world. Specifically: • Countries with low volumes of mismanaged packaging waste, and advanced waste management systems (those having mandatory Extended Producer Responsibility schemes, EPR). • Countries with low volumes of mismanaged packaging waste, but less advanced waste management systems (those having emerging, limited or voluntary EPR). • Countries with high volumes of mismanaged packaging waste and limited/no waste management systems (those having no, or limited, EPR). Even in jurisdictions with mandatory EPR schemes, with advanced waste-management systems, the capacity of collecting, sorting and recycling is not sufficient to meet market or value chain needs. From this year onwards, we will be disclosing the percentage of packaging already designed for recycling (designed and manufactured according to existing design- for-recycling guidelines¹0). 7. 10% by weight versus our 2019/20 baseline. 8. 12% by weight on the 2025/26 plastic packaging overall volume. 9. Ellen MacArthur Foundation, Flexible packaging: The urgent actions needed to deliver circular economy solutions. 10. E.g. Golden Design Rules, coordinated by the Consumer Goods Forum. Design guidelines developed by RecyClass, the Association of Plastics Recyclers, CEFLEX and 4evergreen, where we are active contributors in technical committees. Partnerships and collaborations Gaps in packaging circularity 01 Recycled materials: need for market development 05 Need for efficient sorting and recycling Market Development Efficient Sorting & Recycling In collaborations with: 01 Ellen MacArthur Foundation (EMF), Consumer Goods Forum and the Circular Plastics Alliance Design Guidelines Efficient Waste Management 02 Consumer Goods Forum, Association of Plastics Recyclers (APR), CEFLEX, RecyClass, 4evergreen (03) European Brands Association (AIM), working on harmonisation of waste disposal instructions Clear Disposal Instruction 04 Ellen MacArthur Foundation (EMF), Flexible Packaging Initiative (FPI), Consumer Goods Forum and The Recycling Partnership 05) Holy Grail 2.0 project, Perfect Sorting Consortium and The Recycling Partnership 02 Designers need design for recycling guidelines Consumers need clear instruction for correct disposal 04 Need for efficient waste management systems
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