Ferrrero Environmental Sustainability Analysis

PART 3 – Environmental sustainability

I- Ferrero with the Nature

The company really wants to improve its industrial processes to be more respectful for the environment. In this way, Ferrero made these actions:

1- Reduction of the rational consumption and use of energy

To reduce the energy consumption, Ferrero implement several projects. On the first hand, all the electrical motors are with a high performance (they are replacing every motors progressively). In a second hand, they install “inverters” to regulate flows, some thermal recovery systems, and some illumination systems with a high performance using lamps “last generation” and some “intelligent” systems to control the luminosity.
The best ones are their cogeneration systems with
II- Public issues cases

Palm oil – The deforestation

The oil palm is one of the seven elements that constitute the Nutella. Ferrero cannot stop its use of oil palm, it is essential in the recipe because this element gives it its creaminess and helps it to support the heat.

However, oil palm is the most consumed oil in the world (far away from soya, sunflower, and rapeseed). This contributed to the deforestation in tropical regions especially in the South East of Asia. Around 85% of the world production comes from Indonesia and Malaysia (in 2012 this both countries produced 48 millions tons of oil palm to 5 millions in 1976). This market is increasing and it is frightening for forests and their fauna. Indeed, it destroys the accommodation and resources of the orang-utan, and hence this symbolic species in the Sumatra and Borneo Islands is threatened of extinction.

To struggle to this fact, in 2004 was born the RSPO, the Roundtable for a Sustainable Palm Oil. Producers, distributors, traders, investors and ONG get together to elaborate world norms for a sustainable oil palm production. Ferrero is an active member since
For them, eat Nutella is good with a balanced diet and physical activity. They promote the physical activity for children to support the fight against the obesity. It is a good point to make this advertising but they just hide and create a diversion to give them a clear conscience. Their spread can create obesity with the 60% of sugar and oil palm as well as others diseases as addiction and heart disease. Despite their advertising focused on the parents, the children and adolescent are the most weak to yield to the purchase of Nutella. The brand judges that it is to the parents to give, next to a consumption of Nutella, a balanced diet and to make them a physical activity. It is a kind of disempowerment for the