Message from the CEO
Making sustainable chocolate the norm by 2025, can only be achieved by embedding sustainability into the heart of our business strategy. In fiscal year 2017/18, we have made great progress towards the targets we set ourselves in 2016. Our quantified, time-bound objectives enable us to engrain our sustainability agenda across all our business functions.
Over 130,000 farms mapped in our Katchilè database
Over 2.1 million young cocoa seedlings and around 393,000 shade trees replanted
44% of cocoa beans sourced through sustainability programs
12% of the farmer groups we directly source from have systems in place to prevent, monitor and remediate child labor
14 out of our 59 factories (24%) are now powered by renewable energy
Number of cocoa farmers lifted out of poverty, measured against the World Bank's USD 1.90/day threshold for extreme poverty
Number of cocoa farmers who have access to coaching, inputs such as tools and seedlings, or finance
Number of child labor cases identified and being remediated in our supply chain
The carbon footprint of our supply chain from farm to customer and number of hectares of forest regenerated
Million tonnes CO2e
Percentage of agricultural raw materials sustainably sourced
In 2017/18 we developed and implemented five unique “programs for change” which will allow us to learn how we can drive systemic change in the chocolate supply chain.
Programs for change
First, we are building large farmer datasets, which are obtained primarily through interviews and on-farm mapping. We currently have detailed location, agronomic, economic and social survey data on over 130,000 cocoa farms in our supply chain. This figure will rise to 500,000, demonstrating our ambition to lift half a million farmers out of poverty by 2025. These datasets allow us to create tailor-made programs zooming in on the key issues of specific cocoa farming communities.
Second, to learn how we can accelerate impact on the ground, we have developed pilot projects in five key cocoa sourcing countries, Côte d’Ivoire, Ghana, Cameroon, Brazil and Indonesia. Through these pilots we want to verify if our approach is replicable, scalable and eventually leads to farmers’ self-sustenance. We are partnering with Wageningen University & Research, the world’s leading agricultural university, which has defined the baseline and analytical framework against which we can assess the outcomes.
Third, through our Farm Services business, we offer cocoa farmers products and services to improve the productivity of their cocoa farm. These services include coaching in good farming practices, supporting farmers to access credit and providing cocoa farmers with improved planting material and farm inputs. Together with participating farmers, we are developing customized Farm Business Plans. Following a multi-year approach, we advise on the best mix of seedlings and fertilizers, and support farmers to access labor on credit for each farm. Fourth, to understand where we have our biggest carbon impact, we calculate our carbon footprint every year. Through this annual benchmarking we can track our progress in shifting our supply chain to a carbon positive trajectory.
Finally, Cocoa Horizons is our preferred vehicle to deliver on our Forever Chocolate targets. It enables our customers to join the journey and invest in sustainable cocoa production. Cocoa Horizons is an effective sustainability program with the vision to drive cocoa farmer prosperity by creating self-sustaining farming communities that protect biodiverse landscapes and support children’s rights.
Forever Chocolate requires a new approach to cocoa farming which generates social and environmental benefits to cocoa farming communities. Lifting cocoa farmers out of poverty by increasing their productivity is our starting point. Cocoa farmer poverty directly impacts child labor and deforestation.
A structural solution to eradicating child labor from the cocoa supply chain is a combination of cocoa farmer poverty alleviation, access to quality education and awareness raising.
Barry Callebaut is working on all three, alone, or in close cooperation with NGOs, customers and government. In addition, we have started rolling out the Child Labor Monitoring and Remediation System (CLMRS), to collect data on how prevalent child labor is in our cocoa supply chain.
To structurally tackle deforestation in the cocoa supply chain, industry and governments both have their part to play. In addition, it is essential to support cocoa farmers to increase their productivity on existing farm land and prevent them from clearing forests for new farm land. Barry Callebaut's commitment to lift over 500,000 farmers out of poverty by 2025 is therefore as essential to eradicate deforestation as is our commitment to become forest positive.
By 2025, we want 100% of our product ingredients to be sustainable. This means they will be produced using farming practices that offer an equitable income for farmers, follow responsible labor and agricultural practices, safeguard the environment and support wider communities. In doing so, we create value for all of our partners, now and in the long-term.