Investor Presentaiton
Ferrero Group
Sustainability Report 2022
Sugar
Introduction
Our sustainability
progress
Our reporting
F
We have a long-standing
commitment to building strong,
trusting relationships with the
agricultural cooperatives and
producers that supply our sugar.
In fiscal year 2021/22, our sugar purchases
were approximately 22% refined cane sugar
and 78% beet sugar. We source beets mainly
from European producers, and our sugarcane
comes mainly from Brazil, India, Mexico and
Australia. To help us source from other
sugar-producing countries, we have created
a selection procedure for new suppliers to
guarantee that the raw sugar always meets
our high-quality criteria.
A challenging context
During 2022, world sugar production, as with
other agricultural commodities, faced an
extremely challenging situation due mainly to
extreme weather conditions, such as draughts
and heavy floods, in the main producing
regions, as well as an uncertain energy supply
related to geopolitical conflicts.
In addition, the sector faces critical socio-
economic and environmental challenges,
including low remuneration for farmers and
poor health and safety conditions in some of
the producing countries. The risk of biodiversity
loss and potential pollution of land and water
are also some of the most critical
environmental issues to address.
Our distinctive sourcing approach Industry-wide changes
We have developed long-standing partnerships
with suppliers who provide us with high-quality
sugar. To expand our sustainable sugarcane
supply chain, we systematically evaluate
potential new sustainable strategies, assessing
available certification schemes to understand
their strength, impact and cost-efficiency.
Since 2010, we have been a member of
Bonsucro, a global multi-stakeholder non-profit
organisation that promotes sustainable
sugarcane production. Bonsucro supports
approximately 27% of all the world's sugarcane
land, and that proportion is growing. We see
Bonsucro as a strong partner in promoting
and accelerating sugarcane sustainability
in different countries.
As upcoming regulations bring stricter
requirements for supply-chain due diligence
and human rights, it is more urgent than ever
that all market participants get further
involved in raising sugar sustainability
standards.
Tacking environmental and social
issues in sugarcane
Certifications and standards
Collaboration has been vital to improving our
sustainability, and we have developed
long-standing partnerships with trusted
suppliers.
As one of the biggest chocolate-producing
companies in the world, we aim to influence
meaningful positive changes across our supply
chain, and our leadership encourages
improvement within several producing regions.
Using our significant presence in the market,
we look to inspire others to join the movement
for a responsible sugar supply chain.
With the climate crisis having such an impact
on the planet and its population, in addition to
the fact that food systems account for roughly
one-third of total GHG emissions28, being
responsible about the way we source is an
urgent matter, both for the planet and for
business performance. In 2021, a report by
CDP29 revealed environmental supply-chain
risks could cost companies $120 billion
by 2026.
Beyond compliance, the increasing concerns
about societal and environmental issues are
critical for transparent supply chains.
Collaborating with our suppliers is key to keep
assuring supply-chain visibility for our
customers and consumers. Therefore, we have
a long-standing commitment to continue
building strong, trusting relationships
throughout our sugar supply chain.
What have we achieved?
All our refined cane sugar is certified by
Bonsucro (through the accepted mass balance
method and through credits 30). This represent
64.17% of the sugar supply.
Refined cane
sugar certified
by Bonsucro
(FY 2021/22)
100%
28. Food systems account for over one-third of global
greenhouse gas emissions | UN News
29. CDP Estimates Environmental Supply Chain Risks to
Cost Companies USD 120 Billion by 2026 | News | SDG
Knowledge Hub | IISD
30. Bonsucro credits are proof that a unit of sugarcane has
been sustainably produced to Bonsucro's Production
Standard. Credits reward Bonsucro-certified mills and
farms for their commitment to sustainability, and a
portion of fees from Bonsucro credit sales are invested
directly in local initiatives for other farms and mills to
adopt more sustainable practices. In fiscal year 2021/22,
Bonsucro credits accounted for around 64% of the total
certified volume.
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