FOREVER CHOCOLATE PROGRESS - Barry Callebaut
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2019 / 20
FOREVER CHOCOLATE
PROGRESS
Achieving impact in unprecedented times
through groundbreaking innovations and
game-changing partnerships
Introduction teamwork of our employees, we “Despite the
Sustainability is at the heart of Barry continued in the past fiscal year the
Callebaut. The launch of Forever mapping of farms and the collection challenges of
Chocolate in 2016, our plan to make
sustainable chocolate the norm by
of census data on the farming com
munities we source from. We were
COVID-19, this year
2025, was the next step in our able to further progress with farmer has been an
journey to drive a sustainable cocoa training and coaching, the distribu
and chocolate supply chain. Forever tion of seedlings and trees, as well as exciting time in
Chocolate is our commitment to have
more than 500,000 cocoa farmers in
providing agricultural inputs such as
fertilizers, planting materials, crop and
terms of our
our supply chain lifted out of poverty, livestock diversification packages. In persistence at
eradicate child labor from our supply addition, we used our farmer network
chain, become carbon and forest to distribute soap and public health executing innova-
positive and have 100% sustainable
ingredients in all of our products.
authorities’ information on COVID-19.
Our global employee engagement
tive projects and
On an annual basis we report on the initiative “Seeds for Change” motivat continuing to build
progress of these time bound, mea ed employees to support farmers
surable, targets, which are verified by impacted by the pandemic. As a momentum and
a third-party auditor.
The COVID-19 pandemic is
result, Seeds for Change helped to
fund the provision of soap, clean
making impact.”
underlining the importance of water stations, masks and sanitizer
Pablo Perversi, Chief Innovation,
sustainable supply chains. Through kits to cocoa farming communities. Sustainability & Quality Officer;
out the crisis, the protection of As we review our Forever Choco Global Head of Gourmet
our people and the continuation of late progress in 2019/20, we look
our operations are our priority. We not only at our progress over the last
continue sourcing from cocoa 12 months, but also take stock of Côte d’Ivoire, Ghana, Cameroon, Brazil
farmers, and to progress with many our learnings that we have made and Indonesia, were the backbone of
of our Forever Chocolate activities. since 2016. Whilst we might not have our Forever Chocolate implementa
Despite the challenges of COVID-19 all the answers yet on how to achieve tion in 2017/18. Through these pilots,
in 2019/20, our persistence to drive our 2025 targets, the past four years we tested if our approach is replica
new partnership development and show impactful progression. In ble, scalable and leading to improved
execute innovative projects clearly 2016/17, our efforts focused on farmer livelihoods. The results in
demonstrates our passion to imple exploring how we can drive systemic 2018/19 demonstrated that we are
ment and scale Forever Chocolate. change in the chocolate supply chain. creating impact on the ground
Thanks to the adoption of precaution The establishment of pilot projects in through a combination of big data
ary measures and the dedication and five key cocoa producing countries, and technology as the framework to
Forever Chocolate Progress Report 2019/20 1
scale our efforts. The creation of our “ Our progress has us to build a model of change that
extensive farmer database allows us takes into account cocoa farmer
to offer more targeted advice on been impressive. community needs at a regional level.
improving the productivity of cocoa
farms via our Farm Business Plans.
We published the Our carbon reduction efforts have
resulted in a decrease of –8.1% of our
first carbon footprint corporate carbon footprint, from 8.49
Implementing innovative solutions million tonnes to 7.8 million tonnes
to scale and drive impact assessment CO2 equivalents (CO2e), in fiscal year
Our fourth progress report, covering
fiscal year 2019/20 (ending August
for the cocoa supply 2019/20. Furthermore, together with
our partner Quantis, we published
31, 2020), shows that, despite the chain. We also the first carbon footprint assessment
challenges of COVID-19, the projects for the cocoa supply chain. The
we put in place in the previous years ramped up the development of this pioneering work
continue to create scalable impact.
In fiscal year 2019/20, we have
infrastructure on our has been two years in the making. We
also launched an innovative approach
continued to drive and scale impact Biochar project to reduce our carbon footprint
through innovative solutions and our through our Biochar project, a materi
results this year clearly show that we which transforms al produced by transforming cocoa
are consistently moving the needle.
Our unique and extensive farm
cocoa shells and shells and other cocoa by-products
into green energy for use in our
mapping database expanded to other cocoa by-prod factories. This year, we ramped up the
181,861 farmers with full data in infrastructure for producing Biochar
2019/20. We use these datapoints ucts into green in one of our European factories.
to offer Farm Business Plans to cocoa
farmers, consisting of tailor-made
energy for use in our Sustainable chocolate
services such as tools, individual factories.” Now, more than ever, consumers are
coaching and agricultural inputs looking for products and brands they
to support and improve yields and Nicko Debenham, Head of Sustainability can trust, that offer consistent quality
farmer income. In 2019/20, the and purposeful vision on sustainabil
number of farmers who received ity. This fiscal year, our global Gourmet
Farm Business Plans (FBPs) grew to brands have led the charge by
41,178 (+153%). A total of 71,972 implementing a fully sustainable
cocoa farmers have received farm cocoa suppliers in Côte d’Ivoire, cocoa supply chain. To support cocoa
service activities. Ghana and Cameroon. By publicly farmer livelihoods, global brand
To help us to identify and address disclosing this information, we have Callebaut is sustainably sourcing its
child labor in our cocoa supply chain, reached a new milestone in providing cocoa via Cocoa Horizons, and
we continued in 2019/20 to roll out even greater transparency and relaunched its core chocolate range
child labor monitoring and remedia traceability in our cocoa supply chain. in which its cocoa mass is traceable
tion systems based on the industry It also demonstrates the evolution of back to the participating Cocoa
practice as developed by the Inter our data collection capabilities and Horizons farmer groups. Cacao Barry
national Cocoa Initiative (ICI). In our confidence in the robustness of invested in helping nature to thrive
addition, this year we commenced our data. We also commenced a large via its sustainable Pureté range,
the piloting of an innovative ma scale reforestation project to mitigate contributing to increased biodiversity
chine-learning model which com the impacts of climate change. This at farm level via seedling distribution
bines the data from child labor project will use a technology-driven and carbon capture via cookstove
monitoring and remediation systems approach to pilot the utilization of distribution. Swiss Gourmet brand
with our farmer census data. Through innovative seedling generation, Carma is supplying its customers
this combination, we can assess the planting and monitoring in harsh with 100% sustainable chocolate,
risk of children in a household to be conditions. going beyond sustainable cocoa
involved in child labor. This allows us Together with Wageningen sourcing, to also have all other
to better target our activities to those University, the world’s leading ingredients in their chocolate couver
households where children need the agricultural university from the tures sustainably sourced.
most support. Netherlands, we are monitoring and
Further, as part of our 2025 assessing the activities in our pilot
commitment to end deforestation, we projects. The final assessment of our
have publicly disclosed our direct pilot projects, due in 2021, will allow
Forever Chocolate Progress Report 2019/20 2
We have made good progress at closely with the regulators of the two measurement in their current form
Group level on our sustainable countries. and wording, as well as whether
sourcing program for ingredients. they are driving impact. As a result of
We are developing standards for External recognition of our this exercise, we revised a number
those commodities that are lacking progress and impact of our enabling KPIs. The revision
sustainability standards, for example, Fiscal year 2019/20 was a year of allows us to measure our impact on
through the Roundtable on Sustain growing external recognition of these KPIs more accurately and to
able Coconut, and working with Forever Chocolate, which is testimony ensure that we focus our resources on
existing programs and certification to to our, and our partners’, ongoing the right areas. The changes we have
increase our sustainable supply of commitment to create impact on the made to our KPIs are highlighted in
ingredients. This year, our non-cocoa ground and lead change. each of the pillar sections.
raw materials that we sourced Forever Chocolate was awarded
sustainably, totaled 61%, an increase the #2 sustainability strategy in the Join the movement
of +13% compared to 2018/19. packaged food industry by Sustain We need all the support and input we
alytics which assessed 182 packaged can get from experts, governments
Partnering for impact food companies on the management and chocolate lovers in order to make
A sustainable cocoa supply chain can of environmental, social and gover sustainable chocolate the norm.
only be achieved with the support nance risks in their supply chains. In The Forever Chocolate movement is
from public authorities. Without 2018/19, we were also top ranked growing organically, and the more
public intervention, company initia by Sustainalytics, which demonstrates input we receive, the faster we will
tives will progress much slower in that Barry Callebaut is consistently reach our destination. We welcome all
making structural impact outside of leading among peers. In February feedback and offers for support.
their direct supply chains. Funda 2020, Barry Callebaut was awarded
mental policy reform at origin country two prestigious edie Sustainability
level is required in terms of mandat Leaders Awards. Barry Callebaut won
ing, among others, traceability for the the Business of the Year for Forever
entire cocoa supply chain, good land Chocolate. Furthermore, Seeds for
and forest governance and access Change was recognized as the
to education. In addition, major cocoa leading employee engagement
importing countries and regions, program due to the dedication of
notably the European Union (EU) and Barry Callebaut’s employees to
the United States (US), have the improve farmer livelihoods and the
ability to drive change in the cocoa environment. The Carbon Disclosure
sector and demonstrate leadership, Project (CDP), an independent
including through legislative action. organization that receives and
For this reason, in December assesses the carbon reduction plans
2019, Barry Callebaut partnered with of over 8,000 companies every year,
other companies and NGOs, to call awarded Barry Callebaut, for the
on the European Union to introduce second year running an A- (Leader
legislation placing a due diligence ship level) for our carbon reduction
obligation on all companies that efforts.
place cocoa or cocoa products on the
EU market. Integrating learnings into
Furthermore, Barry Callebaut our targets
supported the announcement by the When we launched Forever Choco
Ivorian and Ghanaian governments to late in 2016, it was clear that we did
implement a Living Income Differen not yet have all the answers on how
tial (LID) of USD 400 per tonne of to achieve our targets. Four years
cocoa beans, effective as of the into the implementation of Forever
2020/21 crop. We support this public Chocolate, we have dedicated the
intervention to support cocoa farmer past fiscal year to taking stock of our
incomes through the implementa key learnings so far. This required
tion of the LID. We have included the casting a critical eye on the KPIs we
LID in our normal buying pattern set for ourselves in 2016, and review
and will continue to do so, working ing whether they allow for accurate
Forever Chocolate Progress Report 2019/20 3
Prospering Farmers
Lifting cocoa farmers
out of poverty
Despite the challenges of COVID-19, our
unique and extensive farm mapping database,
incorporating farmer census interviews, has
continued to expand in 2019/20.
Our goal Despite the challenges of COVID-19, produce individual Farm Business
By 2025, more than 500,000 cocoa our Katchilè database continued to Plans (FBPs), which are 10-year
farmers in our supply chain will have expand in 2019/20. We have in projections of what a farm could
been lifted out of poverty. creased the number of cocoa farmers produce in terms of cocoa volumes,
with full data to 181,861 (+26%). This turnover and net income, if optimal
Our approach means we have mapped the geo inputs and farming techniques are
Low productivity on cocoa farms as a graphical location, as well as the size applied. Through Farm Services, we
result of poor agricultural practices, of 277,566 (+14%)¹ active cocoa offer tailor-made services to farmers,
nutrient-depleted soils and aging farms, covering 72% of our direct such as individual coaching, agricul
cocoa trees continue to keep cocoa supply chain in 2019/20. We also tural inputs, tools, planting materials
farmers and their families in a cycle of increased census interviews with and crop and livestock diversification.
poverty. As we progress towards our cocoa farmers to 291,377 (+27%), Supporting farmers with the appro
2025 target of lifting more than capturing socioeconomic and house priate offering is the key cornerstone
500,000 cocoa farmers in our supply hold data. By continuing to gather of our multi-year FBPs, which present
chain out of poverty, we must contin farmer data, we are capturing a more the farmers a journey out of poverty
ue to focus on scaling impact whilst detailed picture of farmer profiles and based on their individual situation
refining our approach to solve the and farm profile. This year, 41,178
structural challenges facing cocoa (+153%) farmers have adopted FBPs.
farmers. Modernizing agricultural and Furthermore, through our Farm
cultivation methods, increasing yields, Services business, we distributed over
181,861
diversifying income and professional 2.0 million (+19%) cocoa seedlings
izing farming are required to improve and over 1.6 million (+124%) shade
cocoa farmer livelihoods. trees. Furthermore, over 21,000 farm
Through our pilot projects in Côte ers received a productivity package,
d’Ivoire, Ghana, Cameroon, Brazil farms with geographical mapping which include training on tree
and Indonesia, launched in fiscal year and farmer census pruning techniques and the use of
2016/17, we have tested innovative fertilizer.
approaches of country-specific
sustainable cocoa farming models. At
farm level, the pilot activities encom
pass interventions to increase cocoa
productivity as well as crop and gaining a better understanding of
income diversification. In the evalua farmer needs. In addition, we com
tion of our pilots, which will be bine these insights with the data
undertaken in 2021 by Wageningen from child labor monitoring and
University in the Netherlands, each remediation systems. This helps us to
activity will be assessed for its scal assess the risk of children in a house
ability, financial viability, farmer hold to be involved in child labor.
adoption and impact on farmer Data is also being collected
income and livelihood. through our Farm Services App to
Forever Chocolate Progress Report 2019/20 4
Key Metric
Our measured impact
143,233
Baseline measurement of the number of cocoa
For the measurement of the progress farmers in our supply chain out of poverty, measured
against our target to lift over 500,000 against the International Poverty Line threshold of
cocoa farmers out of poverty by 2025, USD 1.90/day.
we are using as a starting point the
International Poverty Line definition
of extreme poverty² of USD 1.90/day. Enabling KPI
71,972
This threshold is the first stage. Our
activities are directed to support
farmers to get on a trajectory towards
a living income and beyond, through Number of farmers who had access to farm services,
increased productivity and income including coaching as well as other inputs such as
diversification. This is also why we tools, seedlings and finance
support the addition of a Living
Income Differential (LID) to the cocoa
price in Côte d'Ivoire and Ghana and
why we committed to a living income Our commitment to the UN SDGs
under several national sustainable
cocoa initiatives.
In 2019/20, measured against the
International Poverty Line threshold
of USD 1.90/day, we estimate
143,233 cocoa farmers (+37%)³ in
our supply chain are out of poverty. In
2019/20, 71,972 (+ 56%) farmers in
Côte d’Ivoire, Ghana, Cameroon, Brazil
and Indonesia had access to farm
services, including coaching as well as
other inputs such as tools, seedlings
and finance. It remains a challenge to
establish a causal relationship be
tween farmers with access to farm
services and the productivity per
hectare for these farmers. This is due
to the difficulty in excluding other
external factors which can positively
and negatively affect farmer produc
tivity, i.e. weather conditions. We have
therefore decided to refrain from
reporting on this KPI for 2019/20. We
will use the next fiscal year to review
the methodology for this KPI.
1
For comparison reasons, the fiscal year
2018/19 number of farms mapped with
geographic location and size has been
restated to 243,683 to reflect the revised
methodology.
2
www.worldbank.org/en/topic/
measuringpoverty
3
For comparison reasons, the fiscal year
2018/19 baseline measurement of the
number of cocoa farmers in our supply
chain out of poverty, measured against
the World Bank’s USD 1.90/day threshold
for extreme poverty has been restated
to 104,645 to reflect the revised
methodology.
Forever Chocolate Progress Report 2019/20 5
Mrs Gifty Amponsah, farmer and
treasurer of the Child Protection
Committee, Ackaakrom, Ghana.
Zero Child Labor
Eradicating
child labor
Our goal Even when industry interventions are undertake monitoring and remedia
By 2025, we will eradicate child labor having an impact, the NORC Report tion, we work on the ground in cocoa
from our supply chain. shows that more emphasis should be origin countries, visiting households
put on creating the right context and communities to identify children
Our approach where child rights are guaranteed, at risk of child labor. This year, we
The worst forms of child labor¹ and ultimately, child labor is prevent expanded the range of cocoa farmers
continue to be present in cocoa ed. Public policy has a key role to play covered by monitoring and remedia
farming, including in Côte d’Ivoire here. Fundamental policy reform at tion systems to 39,909 (+139%). Our
and Ghana, which accounts for origin country level is required for approach at remediation is aimed
approximately two-thirds of global example in terms of access to quality towards addressing some of the root
cocoa production. The challenges education. In addition, major cocoa causes of child labor, focusing on
facing children in cocoa-growing importing countries and regions, nota education, social and gender issues.
communities are rooted in interrelat bly the European Union (EU) and the Remediation activities include the
ed, structural issues such as poverty, United States (US), have the size and provision of school kits and birth
social exclusion and the lack of access resources to drive change in the cocoa certificates, a requirement to enable
to essential services, including quality sector, including, in partnership with attendance at school, as well as
education, health care, drinking water the governments of cocoa-producing supporting families and communities
and sanitation facilities. Cocoa farmer countries, through legislative action. with education and training on child
poverty and a lack of income hinders labor awareness and follow-up visits
the hiring of professional workers to the home. In 2019/20, we trained
and the utilization of mechanization, 94,946 (+17%) farmers on child labor
which often leads to reliance on awareness.
94,946
family members, including children, In 2018/19, we initiated a pilot
to undertake work which is classified program to establish Child Protection
as child labor. Committees (CPCs) in cocoa farming
In October 2020, the National communities in Ghana, Cameroon
Opinion Research Center (NORC) farmers trained on child labor and Indonesia. This program brings
from the University of Chicago, US, awareness together a unique partnership of
funded by the US Department of district and local-level government
Labor (USDOL²), completed a four year agencies, social welfare specialists,
review of the various interventions community planners, teachers, and
carried out by representatives from local religious leaders, with the
the cocoa and chocolate industry purpose of child labor prevention and
and the governments of Côte d’Ivoire To help us to identify and address the protection of child rights. This
and Ghana, to assess progress in child labor in our cocoa supply chain, year, our community-based approach
reducing the worst forms of child we continued in 2019/20 to roll out focused on training CPC members
labor. The NORC study reports that child labor monitoring and remedia to identify and support children at
there are still 1.56 million children tion systems based on the industry risk of being engaged in child labor,
involved in child labor for cocoa practice as developed by the Inter support remediation and referral
cultivation in Côte d’Ivoire and Ghana. national Cocoa Initiative (ICI)³. To processes to local public authorities.
Forever Chocolate Progress Report 2019/20 6
Key Metric
Our measured impact
22,965
cases of child labor identified4
We found in the fiscal year under
review 22,965 (+494%) cases of child
4,971
labor. This is a strong increase in
the number of child labor cases
identified, compared to 2018/19.
This is due to the application of a Of the reported cases from 2018/19,
broader definition of what constitutes under remediation
the worst forms of child labor in
Ghana. In 2019/20, 4,971 of the
reported cases we found in previous Enabling KPIs
42%
years, are under remediation. In order
to increase the transparency of our
monitoring and remediation report
ing, an additional KPI was added this Of the farmer groups we directly source from with
year – the number of identified child whom we undertake child labor monitoring and
labor cases considered remediated remediation activities
on the grounds that the child has not
been found performing child labor
32%
over two consecutive monitoring
visits. Based on this updated method
ology, 335 cases were considered
remediated in 2019/20. Due to the Of the cocoa and non-cocoa volumes sourced from
COVID-19 restrictions, travel to third party suppliers whereby Barry Callebaut consid
households were postponed until ers the risk of child labor is adequately addressed
2020/21. The number of cases
considered remediated was therefore
lower than planned for. Our commitment to the UN SDGs
We are continuing to implement
our monitoring and remediation
systems which now cover 113 farmer
groups, including 39,909 farmers in
Côte d’Ivoire, Ghana, and Cameroon.
In fiscal year 2019/20, we revised the
KPI with regards to the percentage of
farmer groups we directly source
1
According to the International Labour
from that have systems in place
Organization, not all work done by children
to prevent, monitor and remediate should be classified as child labor that is to be
child labor. To underline the active considers that the risk of child labor targeted for elimination. The term ‘child labor’ is
often defined as work that deprives children of
role of Barry Callebaut on monitoring adequately addressed is 32%. Our their childhood, their potential and their dignity,
and remediation, we changed the work will continue in the next fiscal interferes with their schooling and is harmful to
their physical and mental development.
KPI to measure the percentage of the year to challenge our suppliers
Activities such as carrying heavy loads or using
farmer groups we directly source to strengthen their child labor due chemicals are considered as ‘unacceptable
from with whom we undertake child diligence components of their stan forms of child labor’ because they are physically
dangerous for children.
labor monitoring and remediation dards; and to develop roadmaps and
activities. In 2019/20, this concerned targets for sourcing raw materials Assessing the Progress in Reducing Child
2
Labor in Cocoa Growing Areas of Côte d’Ivoire
42% of the farmer groups we directly that are covered by a risk manage and Ghana www.norc.org/Research/Projects/
source from. ment system that identifies and Pages/assessing-progress-in-reducing-child-
labor-in-cocoa-growing-areas-of-c%C3%
Our zero child labor commitment addresses child labor risks. B4te-d%E2%80%99ivoire-and-ghana.aspx
extends beyond cocoa. This year, we
3
Effectiveness Review of Child Labour
redefined this KPI, shifting the focus Monitoring Systems in the Smallholder
on the management of risk, rather Agricultural Sector of Sub-Saharan Africa
cocoainitiative.org/wp-content/up
than having a monitoring and reme
loads/2017/05/ICI-CLMS-Effectiveness_15_
diation system in place. In 2019/20, May.pdf
the volumes sourced from third-party 4
Of the child labor cases identified, none of the
suppliers whereby Barry Callebaut cases included trafficking.
Forever Chocolate Progress Report 2019/20 7
As part of our 2025 commitment to end
deforestation we have publicly disclosed our
direct cocoa suppliers in Côte d’Ivoire,
Ghana and Cameroon.
Thriving Nature
Becoming carbon
and forest positive
Our goal of LUC in our supply chain, meaning tions in our supply chain, as well as
By 2025, we will be carbon and forest the carbon emissions resulting from our aim to pass on the benefits to our
positive. the transformation of forest land to suppliers and customers, we have
agricultural land, we partnered with been collaborating with the Gold
Our approach the renowned environmental sustain Standard Foundation and other
Climate change can have severe ability consultancy, Quantis. Together, strategic partners since 2018/19. We
impacts on agricultural regions. we developed the first carbon foot were the first company to pilot the
Droughts mean farmers can no print assessment tool for cocoa Value Chain Interventions Guidance
longer rely on crucial rainfall, while farming. The assessment focuses at and develop a methodology for its
deforestation leads to soil degrada farm level to evaluate the impacts of implementation of carbon sequestra
tion. To ensure the stability of eco land use change and deforesta tion from value chain interventions
systems, the chocolate industry must tion-driven by cocoa cultivation. (scope 3).
commit to reducing its carbon Following this work, we built up a
footprint and achieve a deforestation portfolio of supply chain interventions
free supply chain. to be implemented in the major
cocoa-growing countries, to be
-8.1%
Carbon positive independently certified annually by
In 2019/20, we successfully reduced the Gold Standard Value Change
our carbon footprint as well as led Programme. Our interventions
the testing and implementation of included the planting of 1.6 million
innovative industry-wide carbon non-cocoa trees on farms and in
reduction methods. reduction in non-agricultural areas surrounding
The carbon reduction targets carbon footprint farming communities, to promote
covering greenhouse gas emissions agroforestry systems and increase
from our operations have been biodiversity as well as carbon seques
assessed to be science-based targets. tration. On top of these carbon
This means that our reduction targets removal interventions, we are also
support the global carbon reduction implementing carbon reduction
trajectory required to limit global Through the combination of GPS, projects related to the distribution of
warming to +1.5°C. satellite imagery and farm-level data, cookstoves and solar home systems
To reduce our carbon footprint, this new assessment enables us to to cocoa farming communities. These
we assess the carbon impact created gain a better understanding of the interventions add to the overall
by our own operations (scope 1), the contribution of each farm or coopera reduction of carbon emissions in the
impact generated by the energy we tive that we source from to our direct third tier. This year, we distributed
use (scope 2), as well as the impact of land use change emissions. We are 5,275 cookstoves.
our entire supply chain (scope 3). extremely proud that this assessment In the coming fiscal year, we will
Within our scope 3 emissions, land is now publicly available for the cocoa expand the Value Change Pro
use change (LUC) forms the biggest and chocolate industry to use. gramme to include improved agricul
part of our carbon liability. In order In addition, in order to capture the tural practices and climate smart
to accurately account for the amount carbon benefits from the interven farming, and continue the distribu
Forever Chocolate Progress Report 2019/20 8
tion of cookstoves and other car forest area in both countries. Our
bon-reducing equipment. Together, mapping has been extended to also
these activities not only provide include farms located in Cameroon.
climate benefits, but they also This year, we mapped 52,558 (+11%)
increase farm productivity, improve farms in our direct supply chain
livelihoods and enhance the health located within 25 kilometers of a
status of farmers who are already protected forest area. As a result, we
experiencing the effects of climate have established traceability to
change. farm level for the cocoa volumes com
Another great stride we made in ing from these mapped farms.
our innovative approach to reduce The World Resources Institute¹
our carbon footprint concerned the estimates that due to initiatives such
piloting of our Biochar project. as CFI, the rate of primary forest
Partnering with Circular Carbon, we loss in Cote d’Ivoire and Ghana was
are assessing Biochar, a material reduced by more than 50% in 2019.
produced by transforming cocoa This is the lowest primary forest
shells and other cocoa by-products loss in Ghana since 2004, and in Côte
into green energy for use in our d’Ivoire since 2005.
factories. This year, we ramped up the We are also working in parallel on
infrastructure for producing Biochar driving large scale reforestation
in one of our European factories. efforts to mitigate the impacts of
We are also collaborating with the climate change. Forest restoration
University of Reading and the Ithaka aims to bring back the ecosphere of a
Institute for Carbon Intelligence to forest, such as water and soil quality
investigate the possibility of extend and native plant species. Therefore, in
ing the use of Biochar as a fertilizer 2019/20 we commenced a large-
to our Farm Services business to scale ecosystem restoration project in
improve soil quality while also serving Côte d’Ivoire. As part of this project
as a permanent carbon sink or we have partnered with Land Life
in-ground storage of carbon. As to our Company, a technology-driven
own operations, 23 of our 61 process reforestation company to pilot the
ing plants are now fully powered by utilization of innovative seedling
renewable energy. generation, planting and monitoring
in harsh conditions. Through this
Forest positive activity, we support knowledge
In order to become forest positive, we transfer to local communities and the
continue with our efforts to eliminate creation of new employment oppor
deforestation from our supply chain. tunities. In the next fiscal year, we will
To achieve greater transparency and continue with the pilot to identify the
traceability in our cocoa supply chain, requirements needed for scaling up
we publicly disclosed our direct the initiative, by jointly investigating
cocoa suppliers in Côte d’Ivoire, new opportunities in drone and
Ghana artificial intelligence technology for
and Cameroon. We will continue to monitoring and seeding purposes.
update this map as part of our
continuing progression towards a
more transparent supply chain.
In 2017, we signed the Cocoa and
Forests Initiative (CFI), a multi-stake
holder initiative dedicated to ending
cocoa farming induced deforestation
in Ghana and Côte d’Ivoire. In
2019/20, in line with this commit
ment, we continued to map cocoa 1
World Resources Institute, global tree
cover loss data (2019)
farms in our direct supply chain www.wri.org/blog/2020/06/global-tree-
within 25 kilometers of a protected cover-loss-data-2019
Forever Chocolate Progress Report 2019/20 9Key Metric
Our measured impact
7.8
Million tonnes CO2e
Our carbon reduction efforts have
resulted in a decrease of –8.1% of The carbon footprint in our supply chain from
our corporate carbon footprint, from farm to customer
8.49 million tonnes to 7.8 million
tonnes CO2 equivalents (CO2e), in fiscal
year 2019/20. The main drivers of Enabling KPIs
3.65
this achievement are reduced CO2e
emissions from land use change,
reduced CO2e intensity in factories
and the reduced CO2e intensity in CO2e intensity per tonne of product
dairy products.
Our carbon intensity decreased
34%
from 3.92 to 3.73 CO2e per tonne of
product. Including the additional
contributions from scope 3 insetting
projects as assured by the Gold Sourced raw materials demonstrated not to be
Standard Foundation, our carbon contributing to deforestation
intensity was further brought down
to 3.65 CO2e per tonne of product.
This is a decrease of –6.89% compared
to the previous fiscal year. Our commitment to the UN SDGs
The percentage of sourced raw
materials demonstrated not to be
contributing to deforestation was 34%.
Forever Chocolate Progress Report 2019/20 10Sustainable Chocolate
Sustainable At Barry Callebaut, we
Chocolate source a wide range
of ingredients such as
dairy, palm oil, coconut
oil, cane sugar and
nuts for inclusion in
our chocolate prod-
ucts.
Our goal Cocoa such as Rainforest Alliance, this
By 2025, we will have 100% sustain We work with, and implement, various publicly available resource provides
able ingredients in all of our products. sustainable cocoa programs to an independent review of the meth
improve cocoa farmer livelihoods and odology of Cocoa Horizons across
Our approach farming practices. Among them is the categories of environmental
At Barry Callebaut, we source a wide Cocoa Horizons, our preferred vehicle protection, social and governance
range of ingredients for our chocolate to enable the implementation of risks.
products, including dairy, palm oil, sustainability activities. Cocoa Hori This year, the premiums from the
coconut oil, nuts, cane sugar, beet zons continued in 2019/20 to scale purchase of Horizons products
sugar, soy lecithin and vanilla. impact and drive change through generated CHF 17.7 million in funds
Approximately half of our sourced productivity, community and environ (+20.4%). These funds are invested
ingredients by volume are cocoa mental activities. In addition to Côte into activities to drive cocoa farmer
products and half are non-cocoa d’Ivoire, Ghana, Cameroon, Indonesia professionalization and prosperity,
products. Each ingredient we use and Brazil, the program has expand eradicate child labor and deforesta
faces its own complex supply chain tion, and become carbon positive.
that varies from geographic region Through these premiums, more than
and subsequently presents its own 150,000 farmers can take part in
unique sustainability challenges. the program focusing on improving
37 %
To reach our target of 100% sustain their productivity and income. An
able ingredients by 2025, we contin example of activities implemented by
ue with the implementation of our the Foundation include the coaching
sustainable sourcing programs across of farmers, the joint development of
all ingredients. In parallel, we expand Farm Business Plans, the mapping of
our sourcing of sustainable cocoa products sold containing 100% farms, and the generation of commu
and ingredients and increase custom sustainable cocoa or chocolate nity action plans to eliminate child
er demand for sustainable products. labor. For example, the Foundation
For the sustainable sourcing of has significantly expanded child labor
raw materials, establishing industry monitoring to cover more communi
wide sustainability standards and ties at risk and begin remediation
programs is essential. This is why we ed into Ecuador, the world’s third activities for any cases found.
work both with our suppliers and largest producer of cocoa. The focus As an impact-driven organization,
industry programs to define and in Ecuador is supporting farmers with the Foundation addresses systemic
implement sustainability standards training on Good Agricultural Practic challenges in the cocoa supply chain
for each ingredient. es, particularly in the optimal use to tackle root causes such as poverty
Recognizing the important role of fertilizers and disease prevention. and child labor. For example, improv
of our suppliers in our value chain, we This year, we achieved a landmark ing gender equality within cocoa
expect our suppliers to share our moment with Cocoa Horizons being growing communities can strength
vision and our requirements to recognized by the Sustainability en both households and
support our high ambitions for Standards Map. Along with other communities. In 2019/20, the majori
sustainable supply chains. recognized sustainability programs, ty of the 868 Village Savings and
Forever Chocolate Progress Report 2019/20 11Loan Associations (VSLAs) were ing that we are diligently applying the sustainable palm oil requirements.
funded by Cocoa Horizons to focus on Bonsucro sustainability standards for This year, Barry Callebaut has in
promoting income-generating the cane sugar products in our supply creased its sustainable sourcing of
activities for women to help build chain. In 2019/20, we have continued palm oil, and is on track to reach
leadership in their home and enter our work with Bonsucro and became 100% sustainably sourced palm oil in
prises. For a full overview of the Cocoa the first company to purchase 2020/21. In fiscal year 2019/20, we
Horizons activities, please see the sustainable sugarcane credits on the further improved the traceability of
latest Cocoa Horizons report. Bonsucro platform to directly support our palm oil suppliers by identifying
independent sugarcane farmers. the mills in our supply chain, as well
Dairy Sustainable cane sugar excludes as their working practices.
Dairy farming is a major contributor forced and child labor, ensures Barry Callebaut also participates in
to our total carbon footprint. We healthy and safe working conditions, the Coalition for Sustainable Liveli-
estimate that carbon emissions from protects land rights and avoids any hoods. This consortium works to
dairy accounts for approximately one negative environmental impact, create a model of sustainable land
quarter of our total carbon footprint. especially loss of biodiversity. It is also use to foster improved livelihoods
Achieving sustainable dairy produc traceable to mill level. In 2019/20 for palm oil farmers through policy,
tion is a sizable challenge, which is Barry Callebaut worked with the investment, and private sector
why we developed our VisionDairy Mexican Sugarcane sector to imple engagement in North Sumatra and
program in 2017 and published our ment a project with industry, suppli Aceh, Indonesia. As a result, we have
ambitious Dairy Charter in 2018 to ers and the NGO Solidaridad to create developed a multi-faceted sustain
set a global benchmark for sustain a responsible recruitment training able palm oil strategy which involves
able dairy production.In 2019/20, the module. Over the coming year we will a new approach to traceability and
data gathered for the global bench increase our work with the relevant risk management with which we will
mark, including cow health, farm governments to scale up the training measure our supplier performance
energy,water use, soil health and milk and assure the protection of worker to meet our Forever Chocolate targets.
quality, were independently assessed rights while improving livelihoods. We will especially target mills consid
to develop a benchmark for the As a member of the crops working ered to be of high risk for deforesta
overall sustainability of our dairy group at the Sustainable Agricultural tion.
ingredients. Importantly, our ap Initiative Platform, we benchmark
proach allows farmers and suppliers and monitor our beet sugar suppliers Nuts
to pioneer their own solutions and against the SAI Farm Sustainability For almonds to grow, bees are
innovations to promote overall Assessment and expect them to required to pollinate the blossom.
progress. In 2019/20 we also em reach, at a minimum, silver level. For However, certain farming practices
barked on innovative pilot projects sustainable beet sugar production, such as the use of pesticides are
initiated by Barry Callebaut and pesticide and fertilizer use are opti known to harm pollinators. This year,
milk suppliers in the Netherlands and mized, soil health is maintained, La Morella Nuts, part of the Barry
in the US to evaluate the use of feed carbon sinks are protected and Callebaut Group, commenced a pilot
additives to reduce methane from energy use is optimized. In fiscal year with Bee Friendly, a European
enteric fermentation. In 2020/21 we 2018/19 we worked with Russian certification organization that aims to
aim to scale these pilots out to beet sugar suppliers to reach SAI identify and promote pollina
additional dairy suppliers. Further Silver Level with their selected tor-friendly products and production
more, we are an active member of farmers and plants. Our successful systems. The pilot was implemented
industry platforms such as the partnership with sugar beet suppliers with one of our Spanish almond
Sustainable Agriculture Initiative has progressed in 2019/20 as we suppliers, and in the next fiscal year
(SAI) Platform and part of the Dairy brought together a group of SAI we plan to scale the volumes by
Working Group. member companies and Turkish integrating new almond orchards in
suppliers, to launch a similar project the project.
Sugar in Turkey.
In 2017, we joined Bonsucro, whose
mission is to ensure responsible cane Palm oil
sugar production that creates lasting We have been a member of the
value for the people, communities, Roundtable on Sustainable Palm Oil
economies and ecosystems in all (RSPO) since 2011 and are also a
cane-growing regions. In fiscal year member of the Palm Oil Innovation
2018/19 we received the Bonsucro Group (POIG), to build upon the
Chain of Custody certification ensur efforts of RSPO to further advance
Forever Chocolate Progress Report 2019/20 12Key Metric
Coconut
47%
Of agricultural raw materials sustainably sourced
Similar to cocoa farmers, coconut
farmers are primarily smallholder
farmers, and as a result of low yields Enabling KPI
61%
due to ageing trees and poor farming
practices, they have difficulty achiev
ing a sustainable livelihood. In order
to achieve real systemic change in Of sustainably sourced non-cocoa raw materials
coconut farming, we needed an
approach bringing together govern
37%
ments, industry and civil society. In
2019, Barry Callebaut, the US Agency
for International Development
(USAID) and Green Invest Asia products sold containing 100% sustainable cocoa or
brought together buyers, processors chocolate
and other actors actively involved
in the coconut supply chain to
establish the Roundtable on Sustain-
able Coconut and Coconut Oil. In Our commitment to the UN SDGs
2019/20, we spearheaded the
continuation of this work, which has
led to the development of a sustain
able coconut sourcing charter to
harmonize buyer requirements, and
strengthen collaboration on sustain
able coconut and to responsibly
source coconut oil production.
Our measured impact
Sustainable supply chains are main other non-cocoa ingredients are
tained through the demand for rarely marketed as sustainable within
sustainable products. Our Forever chocolate products. As a result,
Chocolate KPIs for sustainable reporting on the percentage of
chocolate are focused on the percent sustainably sourced non-cocoa raw
age of sustainably sourced raw materials remains the most accurate
materials. In 2019/20, we sourced indicator of progress. In 2019/20, the
61% (+13%) of our ingredients, percentage of cocoa and chocolate
excluding cocoa, from sustainable products sold that contain sustain
sources. Including cocoa, we sourced able cocoa is 37%.
47%, (–8.5%) of our ingredients from
sustainable sources.
We are continuing to focus efforts
to further build the market pull for
sustainably sourced cocoa, and have
set an example by transitioning our
own Gourmet brands to sustainably
sourced cocoa, cocoa mass or ingredi
ents. In order to provide a better
picture of how the market for sustain
able cocoa is developing, we have
decided to change our KPI going
forward and focus on the % of cocoa
and chocolate products sold that
contain 100% sustainable cocoa or
chocolate. Furthermore, we only
changed the KPI for cocoa, because
Forever Chocolate Progress Report 2019/20 13You can also read
