Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainably Sourced
• Sustainably Produced
• Sustainably Consumed

Environmental Achievements

• Reduced energy consumption per ton produced by 14% since 2008
• Reduced CO2 emissions per ton produced by 17% since 2008
• Reduced water consumption per ton produced by 46% since 2008
• 100% green energy at Canadian subsidiary
• Achieved certification for RSPO segregated palm oil

Social Achievements

• Reduced lost-time accidents rate per 100,000 working hours by 87% since 2008
• Invested more than USD 10 million in traceability and verification of cocoa supply chain since 2008
• Responded to more than 86,000 consumer contacts personally

Governance Achievements

• Revised Business Code of Conduct
• Implemented new competition law policy

Climate Goals & Targets

Environmental Challenges

• Difficulties fully remedying health and safety issues in Asian supplier relationships
• Challenges in providing decent working conditions to migrant workers in Turkey
• Difficulties in establishing traceable and sustainable cocoa butter and cocoa powder supply chains due to high-quality specifications

Mitigation Strategies

• Supplier relationships terminated for non-compliance
• Continued work with Turkish hazelnut suppliers to extend and refine their programs
• Evaluation of options to start a new pilot project for sustainable cocoa butter and cocoa powder in 2016

Supply Chain Management

Supplier Audits: 23 initial supplier assessments in 2015

Responsible Procurement

• Long-term partnerships with suppliers
• Traceability of raw materials
• Lindt & Sprüngli Supplier Code of Conduct
• Supplier Sustainable Practice Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001 (Italy, France), ISO 51001 (Germany), RSPO (palm oil)

Awards & Recognition

• Gold status for sustainable building (Lindt & Sprüngli Germany)

Environmental Metrics

ESG Focus Areas

• Sustainably Sourced
• Sustainably Produced
• Sustainably Consumed

Environmental Achievements

• Reduced energy consumption per ton produced by 16% since 2008 (excluding Russell Stover)
• Reduced CO2 emissions per ton produced by 20% since 2008 (excluding Russell Stover)
• Reduced water consumption per ton produced by 50% since 2008 (excluding Russell Stover)

Social Achievements

• 14% reduction of lost-time accidents
• 56,941 cocoa farmers participating in Lindt & Sprüngli Farming Programs in Ghana, Ecuador, and Madagascar
• 97% of cocoa beans sourced in 2016 were traceable; 57% were traceable and verified

Governance Achievements

• Revised Lindt & Sprüngli Supplier Code of Conduct
• Integrated more key suppliers in the Supplier Sustainable Practice Program (covering >90% of purchasing expenditure in decorative packaging)
• Updated Business Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Climate change impacting cocoa production
• Traceable & verified cocoa butter sourcing
• Health and safety requirements, reduction of working hours, and implementation of transparent management systems in Asian suppliers

Mitigation Strategies

• Lindt & Sprüngli Farming Program includes climate change adaptation training for farmers
• Three major pilot projects for traceable cocoa butter in 2017
• Supplier Sustainable Practice Program with assessment and reassessment visits combined with support engagements

Supply Chain Management

Supplier Audits: 18 initial supplier assessments in 2016

Responsible Procurement

• Lindt & Sprüngli Supplier Code of Conduct
• Supplier Sustainable Practice Program

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns impacting cocoa production

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001 (Italy, France), ISO 51001 (Germany), RSPO (Palm Oil)

Awards & Recognition

• 2nd place in The Randstad Award for Lindt & Sprüngli Italy

Environmental Metrics

ESG Focus Areas

• Sustainably sourced
• Sustainably produced
• Sustainably consumed

Environmental Achievements

• Reduced energy consumption per ton produced by 18% since 2008 (excluding Russell Stover)
• Reduced CO2 emissions per ton produced by 36% since 2008 (excluding Russell Stover)
• Reduced water consumption per ton produced by 54% since 2008 (excluding Russell Stover)
• Reduced waste by 70 tons and post-processing material by 150 tons at Kilchberg facility

Social Achievements

• 21% reduction in lost-time accidents (including Russell Stover) compared to the previous year
• Launched a new microsite on the Lindt & Sprüngli Farming Program
• Implemented an action plan against child labor in Ghana
• Introduced farmers' savings groups in Ghana
• Expanded the Lindt & Sprüngli Farming Program to Ecuador, Madagascar, and Papua New Guinea

Governance Achievements

• Updated Business Code of Conduct implemented across all subsidiaries
• Continued participation in the UN Global Compact

Climate Goals & Targets

Environmental Challenges

• Criticism from NGOs regarding the slow pace of progress on sustainability
• Decentralized structure presenting challenges in implementing global initiatives
• Child labor in cocoa farming regions
• Declining soil fertility and biodiversity in cocoa farming regions
• Climate change impacting cocoa production

Mitigation Strategies

• Developed the Lindt & Sprüngli Farming Program
• Implemented an action plan against child labor in Ghana
• Collaborated with The Forest Trust (TFT) for external verification
• Engaged in industry collaborations (e.g., World Cocoa Foundation)
• Implemented measures to improve resource efficiency (energy, water)

Supply Chain Management

Supplier Audits: 23 external on-site assessments in 2017

Responsible Procurement

• Lindt & Sprüngli Supplier Code of Conduct
• Supplier Sustainable Practice Program (SSPP)

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacting cocoa production

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001 (Italy and France), ISO 51001 (Germany), RSPO (Palm oil)

Sustainable Products & Innovation

• Sugar-free chocolate with plant-based sweetener (Russell Stover)

Awards & Recognition

• 3rd place in Randstad Employer Branding Award (Switzerland)

Environmental Metrics

ESG Focus Areas

• Improving livelihoods of cocoa farmers
• Contributing to an intact environment
• Successful cooperation within the company
• Delighting consumers

Environmental Achievements

• 10% reduction of greenhouse gas emissions in the production process by 2020, per ton produced (Base year 2015 = 100%)
• 10% reduction of municipal water used in the production process by 2020, per ton produced (Base year 2015 = 100%)
• 100% of cocoa beans are traceable and externally verified by 2020

Social Achievements

• Lindt & Sprüngli Farming Program supporting over 79,979 cocoa farmers
• Income diversification training for 21,883 cocoa farmers
• Renovation of 33 schools, benefitting 4,862 children
• Investments in water infrastructure benefiting ~130,000 community members
• Planting of 1,940,122 shade trees and 5,990,841 cocoa seedlings

Governance Achievements

• No participation in corrupt or anti-competitive behavior
• Continuous reduction of safety risks

Climate Goals & Targets

Environmental Challenges

• Structural poverty in cocoa-growing regions
• Malnutrition
• Child labor
• Lack of infrastructure
• Deforestation
• Low cocoa yields due to lack of expertise, ageing trees, and depleted soils
• Fluctuations in world market cocoa prices
• Climate change and adverse weather conditions
• Pests and diseases
• Lack of market power for individual cocoa farmers
• Ageing cocoa trees in Ecuador
• Low productivity in the Dominican Republic

Mitigation Strategies

• Lindt & Sprüngli Farming Program with four key pillars: traceability and farmer organization, training and knowledge transfer, farmer investments and community development, and external verification and continuous progress
• Income diversification initiatives (beekeeping, pig farming, crop diversification)
• Distribution of high-yielding and disease-resistant cocoa seedlings and shade trees
• Investment in rural infrastructure (boreholes, schools)
• Support for village savings and loan groups
• Collaboration with external organizations (Earthworm Foundation, SECO, IDH)
• Living Income Differential (LID) program in Ghana
• Action plan against child labor
• Promotion of organic cultivation methods and agroforestry systems in Ecuador
• Farm rejuvenation and rehabilitation in the Dominican Republic
• Rural savings cooperative in the Dominican Republic

Supply Chain Management

Responsible Procurement

• Lindt & Sprüngli Farming Program

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Improving livelihoods
• Contributing to an intact environment
• Performing together
• Delighting consumers

Environmental Achievements

• 20% reduction of GHG emissions in the production process per ton produced compared to 2020
• 9% reduction in the volume of municipal water withdrawn in production processes per ton of chocolate produced
• 32% reduction in semi-finished product waste compared to 2015 baseline
• 86% of packaging recyclable or reusable

Social Achievements

• More than 91,000 farmers participated in the Lindt & Sprüngli Farming Program
• 100% of cocoa beans and 64% of cocoa beans equivalent sourced through sustainability programs
• 38.1% women in senior leadership positions
• Established the independent global Speak Up system to encourage employees and third parties to raise concerns about misconduct

Governance Achievements

• Updated the Business Code of Conduct to integrate the Speak Up system
• Zero non-compliances with Lindt & Sprüngli quality and food safety standards
• No major non-compliances with national/international marketing and communication laws

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 impacting waste reduction and safety performance
• Challenges in reducing semi-finished product waste due to shifts in production volumes and product mix
• Deforestation and child labor risks in cocoa supply chain

Mitigation Strategies

• Developed a Community Child Protection System (CCPS) to address child labor
• Implemented the Lindt & Sprüngli Farming Program to improve farmer livelihoods and sustainable farming practices
• Implemented the Supplier Sustainable Practice (SSP) Program for supplier site audits and remediation
• Using EcoVadis framework to evaluate the sustainability performance of suppliers
• Developing a decarbonization roadmap to achieve science-based targets

Supply Chain Management

Supplier Audits: 31 suppliers audited in 2021

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis assessment
• Supplier Sustainable Practice (SSP) Program

Climate-Related Risks & Opportunities

Physical Risks

• Shifts in climatic conditions impacting biodiversity, water availability, and human rights

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: GRI Standards 2021, GHG Protocol, SASB, UN Global Compact

Certifications: FSSC 22000, ISO 14001, ISO 50001, RSPO, ProTerra

Third-party Assurance: PricewaterhouseCoopers AG (limited assurance on 2020 GHG emissions)

Sustainable Products & Innovation

• HELLO Vegan products
• Lindt Excellence Cacao Pur

Awards & Recognition

• CONAI Ecopack 2021 prize for new floor displays in Italy

Environmental Metrics

ESG Focus Areas

• Responsible sourcing
• Rural development
• Biodiversity and ecosystems
• Climate
• Water and waste
• Packaging
• Occupational health and safety
• Enabling and motivating working environment
• Delighting consumers
• Business integrity and human rights

Environmental Achievements

• 21% reduction of GHG emissions in the production process per ton produced compared to 2020
• 12% reduction of municipal water withdrawn in the production process from 2019 by 2022, per ton produced
• 21% reduction of semi-finished product waste in the production process from 2015 by 2022, per ton produced

Social Achievements

• Increased the share of sustainably sourced cocoa to 67%
• 112,803 farmers from seven countries of origin are benefiting from the Farming Program
• 788 children received remediation support for child labor issues
• 71 out of 100 points for training and personal development in the global employee survey

Governance Achievements

• Formalized commitment to respect human rights in a Human Rights Policy
• Decided not to direct any marketing communication to children under the age of 16
• EcoVadis Silver Medal awarded

Climate Goals & Targets

Environmental Challenges

• Increased efforts needed to achieve sustainability targets due to global challenges
• Challenges in the cocoa sector related to human rights and environmental protection
• Challenges in achieving 100% recyclable or reusable packaging by 2025
• Challenges in achieving zero lost time accidents
• Challenges in achieving 40% women in senior leadership by 2025

Mitigation Strategies

• Initiated the Lindt & Sprüngli Farming Program
• Invested CHF 27.5 million in sustainability programs for cocoa sourcing
• Submitted climate targets to the Science Based Targets initiative
• Strengthened responsible marketing practices
• Plan to roll out a Group-wide Diversity & Inclusion strategy
• Implementing new systems and processes to improve data quality

Supply Chain Management

Supplier Audits: 581 scored suppliers in EcoVadis (2022); 37 suppliers assessed in SSP Program (2022)

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis framework
• Supplier Sustainable Practice (SSP) Program
• Responsible sourcing standards for priority raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Failed harvests due to climate change

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, GHG Protocol, EcoVadis, SBTi

Certifications: FSSC 22000, ISO 14001, ISO 50001, RSPO, ProTerra, Rainforest Alliance, Bonsucro, SAI FSA

Third-party Assurance: PwC (limited assurance on carbon footprint)

UN Sustainable Development Goals

• Not disclosed

Mapping of Lindt & Sprüngli's impact on and contribution to the 17 SDGs provided in the report

Sustainable Products & Innovation

• Lindt Vegan Classic
• Lindt Milk Extra -30% sugar

Awards & Recognition

• EcoVadis Silver Medal
• PETA Vegan Food Awards (Lindt Vegan Classic)

Environmental Metrics

ESG Focus Areas

• Responsible sourcing
• Climate change
• Human rights

Environmental Achievements

• Sourced 72.3% of cocoa through its own Farming Program or other sustainability programs (target is 100% by 2025).
• Science Based Targets Initiative (SBTi) validated Lindt & Sprüngli’s near and long-term science-based climate targets and reaching net-zero greenhouse gas emissions across the value chain by 2050.

Social Achievements

• About 131,000 farmers in seven cocoa-producing countries are now part of the Lindt & Sprüngli Farming Program, aiming to increase the income of farming households and contribute to the conservation of biodiversity and natural ecosystems.
• The program is designed to address and prevent child labor in the cocoa supply chain.
• Expanded Group Management with the addition of Nicole Uhrmeister as the new Chief Human Resources Officer.

Governance Achievements

• Anchored the importance of sustainable business practices in the remuneration model of Group Management; their bonus is now linked to achieving selected sustainability goals.

Climate Goals & Targets

Environmental Challenges

• Persistently stubborn inflation and subdued consumer sentiment, particularly in Europe.
• Cocoa prices rose to historic highs due to a global shortage of cocoa beans (crop failures).
• Swiss franc strengthened against major currencies.
• Depressed consumer sentiment in China.

Mitigation Strategies

• Tight cost control and continuous optimization.
• Long-term contracts and improvements in efficiency.
• Investments in TV advertising and digital media.
• Expansion of production plants in Olten, Switzerland, and Stratham, New Hampshire, USA.

Supply Chain Management

Responsible Procurement

• Lindt & Sprüngli Farming Program

Climate-Related Risks & Opportunities

Physical Risks

• Cocoa crop failures due to weather conditions and climate

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Sustainable Products & Innovation

• Lindor Oatmilk truffles