In a world where businesses are increasingly judged not only by their profits but also by their purpose, Ferrero Group has been steadily strengthening its global and local sustainability agenda. The company’s 16th Sustainability Report reflects a deep commitment to responsible sourcing, decarbonisation, circular packaging, and community impact, with measurable progress across continents. In India too, Ferrero has made significant strides—from cutting its plastic footprint by 28% and reducing water intensity by nearly 60%, to driving renewable energy adoption and reaching thousands of children through its Kinder Joy of Moving program.
To understand how these global goals translate into on-ground impact in India, TheCSRUniverse spoke with Ms. Smita Gaikwad, Head – Institutional Affairs, Corporate Communications & CSR, Ferrero India. In this candid conversation, she shares insights on Ferrero’s integrated sustainability strategy, the challenges of advancing circular packaging, building meaningful partnerships, consumer engagement, and the milestones ahead as the company charts its path to 2030.
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Q. Sustainability is described as a fundamental driver of Ferrero’s long-term business strategy. How does this integration influence decision-making at the leadership level, particularly in balancing growth with environmental and social responsibility?
A. Sustainability is embedded as a core driver of Ferrero’s long-term business strategy, shaping leadership decisions at every level. Sustainability is not a separate agenda but is fully integrated into the company’s growth strategy, risk management, and value creation. The leadership structure includes a Sustainability Board and a Sustainability Execution Committee, ensuring that sustainability considerations are part of all strategic decisions.
This integration means that growth initiatives are evaluated not just for financial return, but also for their environmental and social impacts. For example, investments in new manufacturing plants or product lines are assessed for their carbon footprint, supply chain traceability, and community impact. For Ferrero, our sustainability commitments and principles are non-negotiable and central to business resilience and long-term value.
Q. The 2024 Sustainability Report reflects progress across responsible sourcing, decarbonisation, and circular packaging. Which of these pillars has been the most challenging to integrate into business operations, and why?
A. While all three pillars present significant challenges, circular packaging stands out as particularly complex. Achieving packaging sustainability requires not only internal innovation but also relies heavily on external factors such as recycling infrastructure, evolving regulations, and consumer behaviour. Creating packaging that is recyclable “in practice and at scale” is especially challenging due to the lack of harmonized global recycling systems, the need for food-grade recycled materials, and the integration of newly acquired brands with varying packaging standards.
We are proud to have achieved over 92% of our packaging designed to be recyclable—a significant milestone that reflects our ongoing commitment to sustainability. While actual recycling rates are influenced by external collection and processing capabilities beyond our direct control, reaching this level of design readiness demonstrates our leadership and determination in advancing circular packaging solutions.
Q. With a 21.7% reduction in Scope 1 and 2 emissions and 90% renewable electricity usage in manufacturing and warehousing, what have been the most impactful operational innovations or investments driving this progress?
A. Key drivers include:
- Transition to renewable energy: 23 plants now use 100% renewable electricity, and 90% of all purchased electricity for manufacturing and warehousing is certified renewable.
- Energy efficiency projects: Investments in on-site photovoltaic (solar) capacity, waste heat recovery, and energy-efficient equipment (e.g., LED lighting, upgraded engines, improved insulation).
- Electrification and alternative fuels: Electrification of factories, use of electric trucks for logistics (notably in France and Germany), and pilots with bio-LNG trucks in the UK.
- Decarbonisation of logistics: Intermodal transport (combining rail and trucks), optimized truck loading, and a focus on reducing emissions from product transportation.
- Continuous monitoring and data collection: Advanced metering and real-time monitoring systems for energy and water use, enabling targeted interventions and rapid response to inefficiencies.
Q. Globally, Ferrero works with organisations like the International Labour Organization, Save the Children, and now the Organization of American States. How do you select and structure such partnerships to ensure long-term, measurable impact?
A. Ferrero selects partners based on shared values, expertise, and the ability to drive measurable, systemic change. Partnerships are structured around:
- Clear, shared objectives: Each partnership addresses specific sustainability or human rights challenges (e.g., child labour in hazelnut and cocoa supply chains, community development, ethical recruitment).
- Long-term vision: Projects are designed for long-term engagement, with regular renewal and expansion based on results (e.g., the ILO partnership in Türkiye).
- On-the-ground implementation: We work with partners to deliver direct interventions (e.g., educational programs, health screenings, grievance mechanisms) and to build local capacity.
- Monitoring and reporting: Impact is tracked through KPIs (e.g., number of children reached, workers benefiting from improved conditions), and results are published in annual progress reports.
- Alignment with global standards: Partnerships are aligned with SDGs, ILO conventions, and other international frameworks.
Q. Ferrero is known for iconic products with long-established consumer expectations. How do you balance decarbonisation goals, packaging changes, and health commitments without altering the essence of these legacy products?
A. We maintain the essence of its iconic products by:
- Consumer-centric approach: Most products are offered in carefully defined serving sizes and are communicated transparently to consumers.
- Pilot projects and gradual rollout: Packaging changes (e.g., conversion to mono-materials, use of recycled content) are piloted in select markets before global rollout to ensure consumer acceptance.
- Maintaining brand identity: Even as packaging becomes more sustainable, we invest in design and materials that preserve the iconic look and feel of products like Nutella, Kinder, and Ferrero Rocher.
Q. Consumer behaviour can greatly influence the success of sustainability initiatives. How is Ferrero addressing awareness and adoption challenges, especially around recycling and responsible consumption?
A. Our approach includes:
- Clear labelling and digital tools: QR codes on packaging provide localized recycling instructions; front-of-pack nutrition information is standardized and transparent.
- Responsible marketing communications: Strict adherence to responsible marketing codes, especially regarding children, and high compliance rates with voluntary industry pledges.
- Education initiatives: Our program “Kinder Joy of moving” promotes active lifestyles among children and families.
- Stakeholder engagement: Collaboration with NGOs, industry groups, and local authorities to raise awareness and improve recycling infrastructure.
Q. Ferrero India reports a nearly 28% reduction in plastic footprint and over 59% reduction in water intensity since 2019/20. What operational or technological interventions made these achievements possible?
A. Ferreo India has continuously been working on numerous projects to meet our internal goals on reduction of plastic footprint and water intensity. Some examples are Water treatment plant optimization, installation of new air-cooled chillers, cleaning process, capacity utilization of the plant etc.
For reduction of plastic footprint, Ferrero introduced recyclable paper spoons 2 year ago, changed plastic to polypropylene (PP) with reduction of packaging component, and other optimization on packing specifications.
Q. The Kinder Joy of Moving program has reached 3.7 million children globally and 14,000 children in Maharashtra. Could you share a success story or measurable outcome that illustrates its social impact?
A. Kinder Joy of Moving (KJOM) in India has made an impact by reaching 20 schools across Maharashtra, including Pune, Mumbai, Thane, and Baramati. Our initiative has been in operation for the past 3 years and engages over 14,000 children, covering the curriculum in 2 phases, by enhancing both the reach and the quality of experience in physical education. Our score card from kids in the program is a 5/5 on various parameters, that tells us that our program is loved by kids and is helping them stay engaged and active in innovative physical activities. The main mission of KJOM is to inspire movement, joy, and promote active lifestyles among kids.
Q. What have been the most significant challenges in implementing sustainable packaging and renewable energy solutions in India, and how have you navigated them?
A. Ferrero has strict and high benchmarks on quality. Hence, finding vendors who can meet these benchmarks in India on sustainable packaging and renewable energy solutions is challenging. Unless the vendors tic mark all our global indicators they will not be empanelled. Once they are on board, we educate them on Ferrero standards. But these initiatives do take extra time and investment of resources.
Q. Looking towards 2030, what are Ferrero’s next big sustainability milestones for both the global and India operations, and how do you plan to keep innovation at the core of these goals?
A. Global Milestones:
- Scope 1 & 2 emissions: 50% absolute reduction from 2018 baseline by 2030 (SBTi-approved target).
- Scope 3 emissions: Updated targets to include FLAG (Forestry, Land, and Agriculture) and non-FLAG inventories, with enhanced supplier engagement and data collection.
- Packaging: Maintain >90% packaging designed to be recyclable, reusable, or compostable; reduce virgin plastic use by 10%; increase recycled content to 12% by 2025, with further progress by 2030.
- Responsible sourcing: Maintain high traceability and certification rates for key commodities (cocoa, palm oil, hazelnuts, dairy) and expand regenerative agriculture programs.
- Human rights: Strengthen due diligence, audit programs, and partnerships to address child labour, forced labour, and fair wages.
