Ferrero: How Manufacturers Can Make Palm Oil Sustainable

As one of the UK’s largest confectionery manufacturers, Ferrero is prioritising sustainability in its supply chain and production processes, particularly through its use of sustainable palm oil.

With global production facilities and a product range that includes Nutella, Kinder, Tic Tac and Ferrero Rocher, the company is positioning itself as a leading manufacturer committed to reducing the environmental footprint of industrial operations.

Ferrero UK & Ireland’s Director of Communications and Corporate Affairs, Charlie Cayton, oversees the company’s corporate social responsibility strategy. She plays a key role in shaping how the company integrates environmental standards into sourcing decisions, particularly around high-impact ingredients such as palm oil, which remains one of the most widely used ingredients across global manufacturing.

While not inherently harmful, its unsustainable production contributes to deforestation and biodiversity loss in key growing regions such as Borneo and Sumatra. According to researchers at Chester Zoo, these areas face considerable threats to their forest ecosystems and wildlife due to poorly managed agricultural expansion.

For manufacturers, this presents a clear call to action: to source palm oil in a way that meets stringent environmental and social standards.

Sustainable palm oil is defined as oil produced with minimal environmental disruption. This includes reducing impact on local wildlife and upholding strong human rights practices across the supply chain.

To improve the use of more sustainable palm oil Ferrero has collaborated with Chester Zoo, backing sector-wide transformation through advocacy, education and responsible sourcing. According to Charlie, the partnership focuses on busting myths around palm oil and raising awareness of the need for traceable and certified sustainable sources.

Chester Zoo’s Policy Lead for Science, Cat Barton, works on the front line of these issues. She leads deforestation-free commodities projects in countries such as Indonesia, Malaysia and Brazil, targeting the land-use impacts of products like palm oil and soy. Her work connects multiple sectors, from producers and governments to certification bodies and manufacturers.

Her team engages directly with field projects, helping to shape land-use strategies that maintain forest cover and protect biodiversity. 

Ferrero’s involvement in this work marks a clear stance from a major manufacturer. By supporting sustainable palm oil, the company sets a production standard that other firms in the manufacturing sector can follow.

Here, the pair explain how they are driving the more sustainable use of palm oil for manufacturers and other organisations.

What is involved in making palm oil more sustainable?

Charlie: Sustainable palm oil is a way of producing palm oil that ensures minimal impact on the environment of the region its grown in. 

This involves protecting forests and biodiversity, respecting land rights and labour conditions, ensuring traceability and meeting certification standards like those set by the Roundtable on Sustainable Palm Oil (RSPO). 

At Ferrero, we’re committed to sourcing RSPO-certified segregated palm oil that’s fully traceable to individual plantations. 

We also use satellite monitoring technology to verify these standards are maintained, creating transparency and accountability that extends from plantation to product.

Cat: The key lies in transforming palm oil from an environmental challenge into part of the solution. 

Through sustainable practices, we can ensure palm oil production actually helps protect and enhance ecosystems rather than degrading them further. When sourced sustainably, palm oil benefits biodiversity more than other vegetable oils, helping protect, conserve and enhance ecosystems.

How can its use help support the natural environment? 

Cat: Palm oil’s efficiency is remarkable, it yields up to 10 times more oil per hectare than alternatives like sunflower, soy or rapeseed. 

This efficiency translates directly into biodiversity benefits, as less agricultural land and resources are required to meet global demand, preserving more natural habitat. 

Working on sustainable palm oil solutions in Indonesia and Malaysia, I’ve seen first hand how proper sourcing practices can make a significant difference for forest conservation.

Charlie: The environmental case is compelling. When people avoid products containing palm oil, they’re often unknowingly supporting crops that need vast amounts of additional land. 

By choosing sustainable palm oil, Ferrero is supporting more efficient land use and better environmental outcomes.

Tell us more about how a manufacturer like Ferrero can make a difference

Charlie: At Ferrero, we partner with Sourcemap and Starling (co-developed by Airbus Defence and Space and Earthworm Foundation) to employ cutting-edge satellite mapping technology to monitor sourcing areas for our key ingredients, including palm oil, cocoa and hazelnuts. 

This satellite monitoring across our palm oil supply chain, combined with rigorous geolocation data collection from our suppliers, helps us protect forests while maintaining supply chain transparency.

Supply chain monitoring contributed to Ferrero being ranked 2nd in the 2024 WWF Palm Oil Buyers Scorecard, which evaluates global companies on their commitments and actions in sustainable palm oil sourcing. 

It has also enabled remarkable progress in our supply chain transparency, with 97% traceability achieved for palm oil and more than 90% of our key ingredients now mapped to their origins.

Featuring wildlife broadcaster and conservationist Lizzie Daly as a guest host, the lesson was a great way to help us engage and inspire the next generation.

Is consumer perception accurate and how does it shape how organisations approach sustainable palm oil?

Charlie: Research reveals a significant knowledge gap when it comes to palm oil. While 62% of Brits are aware of palm oil, only 11% clearly understand what sustainable palm oil is.

In order to close the gap, it is important that we all work together to drive education and awareness on the importance of choosing sustainable palm oil, recognising the benefits it has for biodiversity and the communities it is sourced from. Our research has also revealed that 71% say learning more would help influence their buying decisions which is why partnerships like this are so important to sharing that message.

Cat: The statistics Charlie raises are worrying, with environmental and conservation NGOs like ourselves concerned that boycotting palm oil would lead to worse environmental outcomes. 

The “palm oil free” movement, has created real misconceptions that we need to Tackle. People think they’re helping by avoiding palm oil, but they’re often choosing alternatives that cause more environmental damage.

We’re working to change this narrative through education which explains why sustainable sourcing is preferable to avoidance. 

Palm oil is used in a range of products on supermarket shelves, from toothpaste to shampoo to foods, so we need to help consumers make the right choices.