The Ferrero Group recently released their 14th Sustainability Report detailing their endeavors and achievements around the world. This interview puts the spotlight on their progress in India with respect to sustainability and social impact. Ferrero India's sustainability journey has seen remarkable strides in various domains, including sustainable sourcing, renewable energy adoption, palm oil traceability, cocoa sustainability, and human rights. The company's commitment to reducing its environmental impact is evident through its active involvement in the Ferrero Farming Values program, which provides coaching and training to cocoa farmers and supports dedicated farmer groups.
Ferrero India's CSR interventions are centered around community development, education, skill development, health, nutrition, and environmental sustainability. By prioritizing projects aligned with these focus areas, the company aims to uplift communities, provide access to quality education, promote healthcare and nutrition, and contribute to a greener future.
In this interview with TheCSRUniverse, Ms. Smita Gaikwad, Head Institutional Affairs, Corporate Communication & Sustainability at Ferrero India shares the highlights of Ferrero India's progress towards achieving higher levels of sustainability and their flagship CSR projects that include Pietro Ferrero Kindergarten and Kinder Joy of Moving Program.
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Q. The Ferrero Group recently released its 14th Sustainability Report which carried a global overview of the Group’s initiatives towards attaining higher levels of sustainability. Could you share the highlights of the progress made by Ferrero India towards making their operations more sustainable?
A. Ferrero has made significant progress in sustainability journey especially in n sustainable sourcing, renewable energy adoption, palm oil traceability, cocoa sustainability, and human rights. All these demonstrate the company's commitment to reducing its environmental impact and promoting responsible business practices.
In terms of sustainable sourcing, Ferrero has been actively involved in the Ferrero Farming Values program. This cross-commodity framework focuses on supporting and improving the sustainable sourcing of ingredients. In the past year, the Ferrero farming program provided one-to-one coaching to 32% of cocoa farmers, aiding them in farm and business planning. Additionally, 155,000 cocoa farmers participated in group training sessions. The report also highlights that over 96% of Ferrero India's cocoa supply volume can now be traced back to the farm level. Moreover, 82% of the entire cocoa volume was sourced from dedicated farmer groups that Ferrero supports. In the case of hazelnuts, Ferrero India achieved an overall traceability rate of 79%, despite the complexities of the supply chain.
Another significant achievement is our commitment to renewable energy. About 92% of the company's global electricity now comes from renewable sources, marking an increase from 84% in the previous year. This demonstrates Ferrero’s dedication to reducing its environmental impact and transitioning to cleaner energy sources.
At Ferrero, we have also been proactive in ensuring the sustainable sourcing of palm oil. Wehave been sourcing 100% RSPO certified segregated palm oil since 2015, making it one of the early adopters among global companies.Furthermore, Ferrero successfully completed its four-year Cocoa and Forest Initiative plan. The majority of targets set under the initiative were met or exceeded. For instance, over 170,000 farmers are now enrolled in the Ferrero Cocoa Program, surpassing the initial target of 153,000.
Q. Please provide an overview of Ferrero India’s focus areas for CSR interventions and the key projects under them. What are the parameters that guide Ferrero India’s choice of projects/interventions under CSR?
A. At Ferrero India, we focus on several key areas for CSR interventions, aiming to make a positive impact on both business and society. For business, we have installed solar panels that handle about 15% of the capacity, reduced CO2 emissions of 3000 tons per year and have numerous water conservation methods in our plant at Baramati. For the community we focus on development, education and skill development, health and nutrition, and environmental sustainability. Our CSR initiatives are designed to uplift communities, provide access to quality education, promote healthcare and nutrition, and contribute to a greener future.When selecting projects and interventions for CSR, we follow certain parameters which include assessing the potential impact of the project on communities and alignment with our focus areas. The projects chosen demonstrate the potential to create a sustainable and positive impact on the communities we serve.
Q. The Pietro Ferrero Kindergarten has been operational since 2014. What are the key factors that make it unique and how has it helped the children in particular and the community at large over the years?
A. The kindergarten, located in Baramati, Maharashtra, is a modern and spacious facility spanning over 1,000 square meters, capable of accommodating up to 120 children aged between three months and six years old. One key factor that sets PFK apart is its community-oriented approach. While the kindergarten is primarily intended for the children of Ferrero employees, it also extends its services to approximately one-third of children from disadvantaged families residing in surrounding villages. This inclusive practice promotes social integration and ensures that children from different backgrounds have access to high-quality early education.
Over the years, Pietro Ferrero Kindergarten has established a reputation for delivering high-quality education and care. Its commitment to excellence was recognized at the 10th India Leadership CSR Summit in December 2021, where we won the Community Development award for "Adding Value to Local Communities." Additionally, the kindergarten prioritizes the well-being of the children by monitoring their diet, hygiene, and personal care. A balanced and nutritious meal, along with two snacks comprising milk, fresh fruit, and grains, is provided. The children's weight and height are regularly monitored, and appropriate measures are taken if any child's health indicators are of concern. Periodic visits to doctors, dentists further ensure comprehensive care.
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Q. Ferrero Group is also in the process of establishing 8 Anganwadis in Baramati. When is the project likely to be completed and what will the Group’s involvement be once the construction is completed?
A. Ferrero signed an MOU with the Pune Zilla Parishad in 2019 to build 8 world class Anganwadis in Baramati. The villages were chosen after an assessment study and built with the local panchayat’s collaboration. In January 2023, Ferrero has delivered the project to the Zilla Parishad, and we are happy to see them in use. Going forward, we have a few plans to enhance the teaching skills of the teachers, education methods for the children and use the space more effectively to make them model Anganwadis in Maharashtra.
Q. What inspired you to start the Kinder Joy of Moving Program? What were the main components of the program and how has it helped the children who participated in it?
A. The inspiration behind starting the Kinder Joy of Moving (KJOM) program stems from our commitment to sustainable practices, education, and the well-being of the communities we serve. We believe in promoting the rights of children. The KJOM program was developed to create a platform where children could engage in physical activities, experience the joy of movement, and promote their overall well-being. By incorporating play and recreational activities into their lives, we aimed to enhance their physical health, cognitive abilities, social skills, and emotional development.The Kinder Joy of Moving program has had several positive impacts on the children who participated. Firstly, it has helped improve their physical fitness by encouraging regular exercise and active lifestyles. By engaging in fun physical activities, children develop strength, coordination, and motor skills. Secondly, the program has contributed to their cognitive development. The KJOM program's structured activities promote cognitive skills through challenges, strategic thinking, and teamwork.The program has helped children experience the joy of movement and play, creating a positive and enjoyable environment for them to express themselves and have fun. This aligns with the UN Convention on the Rights of the Child's recognition of the right to play as an essential element in a child's growth and development.
Q. The role of an implementation partner is crucial for the success of any initiative. Who are the partners for your key projects in India? What are the factors that you consider while finalizing a partner for a project?
A. Ferrero works directly with the Zilla Parishad. We collaborate on initiatives that help in Child welfare and Women Development in Pune and Baramati, where our plant is located. For our Kindergarten, we have partnered with Little Big World, who are specialists in pedagogic education, and we want the best for our kids in the PF Kindergarten.
Q. What would your recommendations be to- a) Implementation Partners and b) Policy Makers- to make implementation and reporting on CSR projects more conducive and effective?
A. Well, implementation partners have to have an excellent track record on delivering change and improving lives. We look at long term partnerships and thus high result-oriented partners are vital for any engagement. Secondly, our work directly with administrative bodies such as the Zilla Parishad, help us establish projects i.e., Anganwadis, in needy villages quicker and with less bureaucracy. Alignment with the ZP has helped us deliver projects directly to the villagessuch as improving Anganwadi facilities, refurbishment of schools, provide sports facilities to communities in marginal areas. Such implementation of projects is visible and also addresses the gaps that need to be filled at the ground level.
Q. Ferrero India has won the Greentech Environment Award in the past- what were the initiatives that helped the Group stand out with respect to environment stewardship? What are your major ongoing initiatives in the domain?
A. One notable initiative is Ferrero India's focus on renewable energy. The company has made significant progress in transitioning to cleaner energy sources. As mentioned in the report, 92% of the company's global electricity now comes from renewables, marking a substantial increase from the previous year's 84%. This commitment to renewable energy helps reduce carbon emissions and mitigate the environmental impact of its operations.
We have prioritized sustainable sourcing and traceability. The Group has made significant strides in ensuring the responsible sourcing of key ingredients, such as cocoa and palm oil. For example, the report mentions that over 96% of the cocoa supply volume can now be traced back to the farm level, demonstrating Ferrero commitment to transparency and sustainable sourcing practices. Furthermore, the Group has achieved 100% RSPO (Roundtable on Sustainable Palm Oil) certified segregated palm oil, keeping sustainable palm oil separate from non-sustainable sources throughout the supply chain. Our ongoing initiatives in the domain of environmental stewardship also involve exploring innovative solutions for sustainable packaging.
Q. The Group’s website mentions winning awards for people and workforce management. Are there any specific initiatives/achievements that you would like to share with us on creating a workplace with high standards of Diversity, Equity and Inclusion?
A. Ferreo India has won several awards including the Greentech Environment Award; Impresa Award for People Empowerment; the Best Human Response Award; Kronos Excellence Award for Workforce Management; Supplier Excellence Award and the CII Award for Commitment to Food Safety and the India CSR leadership AwardThese are ways to acknowledge the work done at Ferrero India.
In addition, Ferrero has embarked on its DEI journey a few years ago. Our work is in the field of Gender enhancement of Women at the workplace and Hiring of Persons with Disabilities. We have taken upon ourselves targets to improve the numbers. Additionally, we have invested a lot in trainings across the levels in the organizations on sensitization, bias training and have also amended policies to make Ferrero an inclusive organization.
Q. What does Ferrero India’s CSR and sustainability roadmap look like for the near and medium future?
A. Well, Ferreo India has a mandate to work in the area of Child Welfare and Women empowerment. We will continue to look at new projects in these areas and continue to collaborate with local govt bodies closer to our place of work i.e. Baramati. We are keen to establish our 8 Anganwadis as model Anganwadis and use the space effectively for village development.
