Farming practices, sustainability certification standards and traceability were at the center of Ferrero Group’s Corporate Sustainability Report 2025, with the global chocolate and confectionery company highlighting “meaningful progress” in several initiatives.
However, Ferrero’s expansion – most notably the recent $3.1 billion acquisition of WK Kellogg – may test this progress.
The acquisition brought 3,000 new employees into the fold and increased Ferrero’s global workforce to more than 50,000 people.
Ferrero International President Giovanni Ferrero acknowledged that the purchase constitutes “a further test of our ability to scale responsibly.”
“Our sustainability framework – centered on protecting the environment, sourcing ingredients sustainably, promoting responsible consumption and empowering people – remains fundamental to how we build long-term value and resilience,” he said.
Ferrero Farming Values
Ferrero raised its standards for ingredients it sources, including cocoa, palm oil, hazelnuts and dairy, under the lens of Ferrero Farming Values, the company said.
The five elements of those values are:
- Supplier due diligence
- Supply chain traceability and visibility
- Certification and standards
- Farming practices and communities
- Sector transformation
“The framework is flexible and applied differently across ingredient supply chains, allowing our five elements to be dialed up or down depending on the specific risks and impacts of each ingredient,” the company said. “While the approach is tailored, the framework remains consistent in applying the same values and level of ambition where they can make the greatest difference.”
Sourcing from across the globe
Sourcing ingredients responsibly is among the core pillars of Ferrero’s sustainability framework, according to Ferrero International CEO Lapo Civiletti.
“Ferrero Farming Values translates our sustainability approach into concrete actions across the sourcing of our key ingredients,” said Civiletti. “It provides a structured framework to strengthen supplier accountability, improve traceability and certification, support farmers and drive collaboration across the sector – while allowing us to adapt to the specific realities of each ingredient supply chain.”
Ferrero said it works with suppliers, which include roughly 20,000 vendors, screening and assessing sustainability risk factors.
“Based on the results, we implement proportionate measures to prevent, mitigate or further investigate identified risks,” the company said. “When assessments identify deficiencies or heightened risk levels, we initiate enhanced due diligence, including comprehensive analysis and independent third-party on-site audits.”
Ferrero works to prevent, mitigate and remediate before disengaging from suppliers that are out of compliance with the food manufacturer’s Supplier Code, the company said.
“The Ferrero Supplier Code sets out our corporate sustainability expectations, outlining our nonnegotiable ethical and environmental requirements. Ongoing monitoring of Supplier Code acceptance shows that suppliers representing more than 80% of our total spend have formally acknowledged our Code,” Ferrero said.
Traceability is key to sustainability
Trust and accountability result from traceability of ingredients, according to the report.
“Only by knowing where our ingredients come from can we ensure that commitments – such as preventing child labor and avoiding deforestation – are being met,” the company said.
Ferrero works with Sourcemap, a service that provides supply chain mapping and traceability services, and Starling, to monitor land use and deforestation risks in its palm oil (and other commodity) supply chains.
“This collaboration gives us high visibility over palm oil, cocoa and coffee plantations, and supports the Deforestation Risk Assessments across all plantations linked to our supply chains,” Ferrero said. “Overall, the use of Sourcemap and Starling enables a robust and highly detailed system for monitoring and oversight across these supply chains.”
Ferrero can now trace most of its key ingredients back to where they were grown, including 98% of cocoa, 98.6% of palm oil, 97% of hazelnuts and 100% of coffee, according to the report.
The company reviewed nearly 230,000 supplier locations for coffee, palm oil and cocoa to better track sourcing and reduce deforestation risk, according to the report.
Almost all cocoa (99%) came from certified or independently verified programs like Rainforest Alliance and Fairtrade. All palm oil was RSPO-certified, and all coffee was Rainforest Alliance certified, the company said.
