2022 Sustainability Report Barilla: more sustainable supply chains together with 9,000 farms, commitment to renewable energy and 100% recyclable packaging, continued support for local communities
26 June 2023
Parma, 26 June 2023 – How many stories are there in a pack of Barilla pasta? For example: over 20 years of research to promote more efficient and sustainable agricultural practices; 100% Italian durum wheat for pasta sold in Italy and supply chain contracts that support thousands of farmers in 13 Italian regions; spaghetti (or penne, or fusilli) based on 146 years of know-how and innovation in the art of pasta; 100% recyclable cardboard packaging, to avoid the use of 160 tonnes of plastic per year. The same could be said for a jar of pesto, a biscuit or a snack produced by the Barilla Group, whose new Sustainability Report highlights the results achieved for the well-being of people, for the environment and for the communities.
In the name of its purpose “The joy of food for a better life”, the Parma-based Group continued in 2022 to invest in improving its pasta, sauces and bakery products (almost 500 products reformulated and improved since 2010, 40 launched in 2022). The aim is to innovate and reduce the impact of production processes in terms of CO2eq emissions, energy and water consumption, to promote sustainable supply chains and to design packaging to be recyclable. And even more so, donations of €3.2 million and over 3,200 tonnes of products to express concrete proximity to communities. These are some of the highlights of the Barilla Group Sustainability Report, now online on the Barillagroup.com website.
“Agriculture, cultivation systems, transformation of raw materials into finished products, packaging, distribution and consumption have evolved over time to respond to our increasingly pressing request for products that satisfy the emotion of taste, nutrition and health, integrated with the ability to regenerate the planet's resources”, noted Paolo Barilla, Vice-President of the Barilla Group. “Since 1877 our work has been fuelled by the desire to surpass ourselves, coming to the present day with the same spirit as the founders. This is the only certainty we have before us: a great deal of passions and still so much work to do”.
“This report tells our story and that of our products, our people and our way of doing business”, stated Gianluca Di Tondo, CEO of the Barilla Group. “If we wish to give our planet and every one of us a future, we must all play our part. Our company embarked on this journey many years ago, taking small steps that over time have helped us to achieve great results”.
SUSTAINABLE SUPPLY CHAINS, FROM FARM TO FORK: HOW BARILLA IS IMPROVING AGRICULTURE
2022 was a key year for the development of Barilla’s sustainable agriculture projects. We purchase 67% of our strategic raw materials (durum wheat, common wheat, rye, tomatoes, basil, cocoa and vegetable oils) responsibly. Over 9,000 companies are involved in sustainable agriculture projects, which guarantee the quality of the raw materials Barilla purchases and enable farmers to plan their work with greater security, partly thanks to the four standards for sustainable cultivation of durum wheat (the Ten Commandments for Sustainable Cultivation of Quality Durum Wheat), of common wheat (Carta del Mulino and Harrys Charter) and of basil (Carta del Basilico), which guarantees social and environmental sustainability, resulting in an Italian and ISCC PLUS-certified supply chain of a key ingredient in Barilla ready-made sauces and pesto. Like basil, tomatoes are also grown near the manufacturing sites where possible, to minimize the time between product harvesting and processing. Support for local agriculture also affects pasta, in which Barilla is a world leader in sales. 93% of durum wheat, the key ingredient in all the Group’s pasta brands, is purchased on the local market, and 47% via cultivation contracts.
CUTS IN WATER CONSUMPTION (-24% SINCE 2010) AND CO2 (-32% SINCE 2010)
Barilla maintains a presence in over 100 countries, by means of its brands and 29 factories (15 in Italy and 14 elsewhere). In 2022, these sites produced over 2.1 million tonnes of food. The Sustainability Report states that, compared to 2010 and per tonne of finished product, greenhouse gas emissions have decreased by 32% (an increase of 6 percentage points compared to the previous year) and water consumption by 24%. Transposing 2022 food production to the 2010 figures, the difference in terms of energy efficiency would be 132,000 tonnes of CO2eq and 740,000 m3 of water. These emissions would equate to four car journeys between the Earth and the Sun and a quantity of water sufficient to fill almost 300 Olympic swimming pools.
BARILLA RENEWABLE ENERGY PASTA AND BISCUITS, THE COMMITMENT TO 100% RECYCLABLE PACKAGING
Bread, biscuits, snacks and more from the Mulino Bianco brand are only made using energy from renewable sources such as water, Sun and wind; tri-generation systems in pasta factories that enable them to produce their own electricity, heat and cooling are already in operation at the plants in Parma, Marcianise (Caserta province), and Muggia (Trieste province).
Barilla’s commitment to reducing the environmental impact of packaging also continues despite a difficult year for the supply of raw materials in this field. In Italy and worldwide, 100% of the Barilla Group’s pasta, sauces, pesto, bread, biscuits and snacks are designed for recycling, which only uses paper and cardboard from responsibly managed forests.
FORTY PRODUCTS LAUNCHED IN 2022, A NEW PESTO WITH SUSTAINABLE BASIL AND LEMON
Since 2010, Barilla has reformulated the nutritional values of 500 products, reducing fat, saturated fat, salt and/or sugar content and increasing fibre content. Last year, the company launched onto the market 40 new products that explain its way of doing business: products with no added sugar, rich in fibre, wholewheat, with legumes or nuts, or in single-serve packs. And only a few weeks ago, the new “Basil and Lemon” Barilla pesto was launched in Italy, with a 100% recyclable jar and basil from sustainable agriculture, Parmigiano Reggiano PDO and another distinctively Italian ingredient: lemon.
SUPPORT FOR THE LOCAL COMMUNITIES WHERE THE BARILLA GROUP OPERATES
Sustainability at Barilla is also about paying attention to people and local communities. The Barilla Group has confirmed its tangible commitment by implementing a series of solidarity initiatives in the various countries where it operates. A total of €2.2 million has been invested and around 3,200 tonnes of products have been donated, to improve access to food for more and more people, to enhance inclusion and to support local development. Also heading in this direction is the company's further donation in 2023 of €1 million to the Department of Civil Protection, to fund reconstruction works in the areas affected by the flooding in Emilia-Romagna.
INVESTMENT – €1 BILLION IN FIVE YEARS, HALF IN ITALY
In line with decisions made in previous years, the new plan provides for €1 billion of investment over the next five years, half of which in Italy, in improving product quality and safety processes, renewing industrial assets, adopting new Industry 4.0 technologies, strengthening IT infrastructure, increasing production capacity globally, and innovating in products and markets. The investment will also be focused on reinforcing the company’s pathway of sustainability, embarked on over ten years ago, according to two guidelines consistent with the Group’s purpose of "The Joy of Food for a Better Life": constant commitment to the sustainability of agricultural supply chains and in particular on the Italian chains providing durum wheat, basil, tomatoes and common wheat, with over 10,000 farmers as partners, who act according to sustainable agriculture models. On the other hand, efforts to reduce environmental impact and CO2 emissions, including by means of the installation of new renewable energy sources, such as solar panels and co-generation plants, at factories in Italy.
2022 RESULTS – GROWTH IN A CONTEXT OF HIGH INFLATION
The economic figures for 2022 confirm the growth: the Group’s 2022 turnover amounted to €4.663 billion, which, net of Turkey's hyper-inflationary effect, were equivalent to €4.647 billion, an increase of 18% compared to 2021 (+16% without considering the exchange rate effect). €230 million (4.9% of turnover) was allocated to products innovation, efficiency improvements and increased production capacity. The EBITDA margin decreased compared to the previous year, from 13% to 10%.
A major impact has been recorded as a result of the increase in energy, raw material and logistics prices, which have contributed to fuelling the inflation rate, including in agricultural prices. In such a complex context, Barilla has maintained prudent strategies aimed at partial and gradual recovery of cost inflation on sales prices.
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