Investor Presentaiton
Ferrero Group
Sustainability Report 2022
Climate action (continued)
Introduction
Our sustainability
Our reporting
F
progress
To achieve our second climate target of
reducing Scope 1, 2 and 3 emissions intensity
by 43% per tonne of product produced, using
2018 as base year, we are working with our
suppliers to reduce emissions and develop
solutions with a lower carbon impact. We aim
to optimise supply-chain logistics while
supporting the continued growth in quantity
and size of shipments to the market. Our
strategy focuses on optimising the network,
decarbonising fleets and shifting to varied
freight solutions. At our distribution centres,
opportunities include renewable and efficient
energy use, and internal and network
optimisation. Our regional operations set local
reduction targets for transport and
warehousing.
We are rolling out a digitalisation project on
the full scope of our logistics activities and are
collecting information on transport and
warehousing. Through this, we aim to improve
our reporting and alignment with the Global
Logistic Emissions Council (GLEC) standard
and evaluate our efforts towards continuous
improvement.
We measure our total carbon footprint to
identify the impact of our activities and the
areas offering the greatest opportunity to
reduce our emissions.
Scope 1
To meet our 2030 target, our approach focuses
on reducing emissions from our operations,
where we have the most control. We are
investing in energy-efficient technologies,
increasing the production of on-site renewable
energy, improving energy efficiency and
aiming to use alternative sustainable fuels to
generate energy.
Scope 2
These are the indirect emissions arising from
purchased electricity, heat and steam, which
we can reduce in line with our 2030 target. We
continue to increase the amount of renewable
electricity our factories buy through green
certification mechanisms and, where feasible,
Power Purchase Agreements (PPAs).
Scope 3
These are where we have only indirect
responsibility across our value chain, including
raw materials and packaging, and account for
93% of our total carbon footprint. Because we
do not have direct control, and they involve
many stakeholders, addressing this part of our
carbon footprint is the most challenging. It will
involve rethinking products and packaging,
and engaging with suppliers in reducing
emissions. Our current focus is to understand
our suppliers' climate commitments and
emissions, to establish a baseline for future
activities.
Climate-change decarbonisation impact
evaluations, and improvements in logistics,
require measuring and monitoring the climate
impact of all shipments made through the
value chain. During fiscal year 2021/22, we
further developed and implemented the project
to understand the impact of logistics on our
corporate carbon footprint. This applies the
GLEC Framework standard methodology
thanks to a GLEC-certified monitoring and
calculation platform (Green Router). The tool
demonstrates lessons to evaluate and improve
our impact on specific shipments and transport
flows - helping us to size, prioritise and
stimulate field project developments.
Our emissions*
7.3%
6.5% SCOPE
0.7% SCOPE 2**
SCOPE 3
6.8%
2.7% Other***
Surprises****
Supply chain
(logistics product
transportation)
12.3%
Packaging
Emissions4
63.6%
Raw materials
GWP Emissions TOTAL (Total Scope 1 +
Scope 2 Market based + Scope 3)
GWP Scope 1 Emissions - Total emissions
GWP Scope 2 Emissions - Market based
GWP Scope 2 Emissions - Location based
GWP Scope 3 Emissions - Total emissions
* The total may not be exactly 100% due
to rounding.
** Market-based Scope 2 emissions.
*** Employee Travel - Waste and auxiliary
products Capital goods - Leased assets
- Downstream transportation and
distribution End-of-life treatment
of solid products.
**** Emissions are linked to production hubs
22
that deliver KINDER® Surprise products
<
to Ferrero plants, including materials,
moulds and transport of the Surprises.
Unit
tCO₂eq
FY 2019/20
6,724,057
FY 2020/21
7,007,128
FY 2021/22
7,318,172
tCO2eq
tCO2eq
480,351
477,071
477,243
111,144
88,599
52,256
tCO2eq
tCO2eq
288,391
305,683
331,049
6,132,562
6,441,458
6,788,673
4. The emission factors used for the GHG emissions calculation are the same as used in fiscal year 2020/2021.
What have we achieved?
Our Scope 1, 2 and 3 emissions increased to
7,318,172, while our intensity ratio has slightly
decreased to 5.02 tCO2eq per tonne produced
in fiscal year 2021/22. This is related to our
production growth of 6% and increase of
mobility intensity after the Covid-19 pandemic.
Our positive impact was due to our
decarbonisation programme and our
investment in renewable electricity. This
resulted in direct Scope 1 emissions remaining
almost constant in absolute value, while
our Scope 2 emissions significantly decreased
by 41%.View entire presentation