Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cocoa
• Environment
• Employees

Environmental Achievements

• Reduced carbon intensity of operations by 19% since 2009
• Achieved 20% energy use reduction from 2008/09 levels by 2010/11
• On target for 20% reduction in CO2 from 2008/09 levels by 2013/14 (19% achieved)
• On target for 20% of energy from renewable sources (16% achieved)

Social Achievements

• Launched "Cocoa Horizons", a CHF 40 million sustainability initiative to boost farm productivity, increase quality, and improve family livelihoods.
• Supported the construction of a secondary school and community learning center in Côte d’Ivoire.
• Funded the construction of five rural primary schools in Côte d’Ivoire.
• Implemented the "Winning Together" initiative, engaging employees in education projects in cocoa farming communities.

Governance Achievements

• Established a third-party whistleblowing platform in November 2012.
• Distributed a new Supplier Code in 2012 outlining minimum requirements for responsible business practices from suppliers.
• Conduct comprehensive audits of all Barry Callebaut facilities every two to three years, checking for risks of corruption and other irregular practices.

Climate Goals & Targets

Environmental Challenges

• Challenges in securing sufficient supplies of high-quality, responsibly grown cocoa.
• Aging farmers and aging farms.
• Low yields.
• Geopolitical and economic uncertainties.
• Climate change.
• Rising energy prices.
• Reducing carbon footprint and energy consumption.
• Efficiency increases.

Mitigation Strategies

• Launched "Cocoa Horizons" initiative.
• Implemented energy-saving plans at all plants.
• Appointed staff to oversee energy and greenhouse gas reduction efforts.
• Implemented energy-monitoring system.
• Identified areas where energy load can be reduced.
• Improved facilities and processes.
• Implemented operational best practices and awareness training.
• Pilot projects to test biogas production and solar energy.

Supply Chain Management

Supplier Audits: Ethical Audit Questionnaire based on SA8000 standard

Responsible Procurement

• Supplier Code requiring responsible business practices

Climate-Related Risks & Opportunities

Physical Risks

• Changes in temperature and precipitation impacting crop yields

Transition Risks

• More stringent regulatory reporting
• Rising operational costs from energy use

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: BRC food safety and quality standard

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Developing recipes with lower trans fats
• Producing chocolate with higher levels of antioxidants
• Reducing calories through the use of sugar alternatives

Awards & Recognition

• Project recognized by the Child Labor Cocoa Coordinating Group (CLCCG)

Environmental Metrics

ESG Focus Areas

• Sustainable cocoa
• Environmental protection
• Employee development

Environmental Achievements

• Reduced relative energy use and carbon emissions by 20% by 2013/14 (new targets set for further 20% reduction by 2020)
• Generated 155,000 GJ of energy from biomass
• Switched European factories to RSPO segregated straight palm oil (representing >80% of total palm oil use)

Social Achievements

• Trained 70,500 farmers in good agricultural practices
• Enrolled over 25,000 farmers in Cocoa Horizons Foundation activities
• Filled 55% of managerial positions with internal candidates
• Provided 1,350 water filters for 12,000 people as part of Water for Life
• Supported 4,000 employees to volunteer in Water for Life community events
• Reached 56,300 people with community activities
• Implemented a health insurance scheme for 3,200 farmers and their families

Governance Achievements

• Updated Environment and Workplace policies
• Complemented Supplier Code with Sustainable Sourcing Policies for Ingredients
• Established Cocoa Horizons Foundation

Climate Goals & Targets

Environmental Challenges

• Increasing the share of sustainable cocoa in total sourcing volume
• Addressing climate change impacts on cocoa production
• Combating deforestation linked to palm oil and cocoa
• Improving productivity of cocoa farms

Mitigation Strategies

• Developed a farm data management system for improved targeting of support
• Encouraging cocoa farmers to plant shade trees and develop heat-resistant varieties
• Joined the Roundtable on Sustainable Palm Oil (RSPO)
• Participating in sector initiatives to address deforestation
• Providing farmer training, support, and finance

Supply Chain Management

Responsible Procurement

• Supplier Code
• Sustainable Sourcing Policies for Ingredients (palm oil, vanilla, sugarcane, milk powder, etc.)
• Collaboration with SAI Platform, AIM PROGRESS, and SEDEX

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns, water availability, and agricultural productivity

Opportunities

• Development of heat-resistant cocoa varieties

Reporting Standards

Frameworks Used: GRI, AA1000

Third-party Assurance: Denkstatt GmbH

Sustainable Products & Innovation

• HORIZONS products
• Acticoa™ cocoa and chocolate products
• Reduced-fat chocolate

Environmental Metrics

ESG Focus Areas

• Supply Chain Traceability
• Climate and Energy
• Biodiversity and Ecosystems
• Workers in the Value Chain
• Affected Communities

Environmental Achievements

• Reduced net carbon footprint by 4% to 7.62 million tCO2e through agroforestry insetting
• Reduced carbon intensity per tonne of product by almost 20% since 2016
• Increased proportion of products sold with 100% sustainable cocoa or chocolate to 52%
• Reduced gas consumption by installing heat pumps in two chocolate factories (30% and 20% reduction respectively)
• Transformed cocoa shells into energy, avoiding fossil fuel use in Abidjan, Côte d’Ivoire
• Achieved a 10% reduction in energy consumption at the central logistics warehouse in Lokeren, Belgium by optimizing air conditioning systems
• Increased renewable energy share to 49% of total energy consumption

Social Achievements

• Added almost 120,000 new cocoa farmers to sustainability programs (35% expansion)
• Maintained traceability at nearly 80% for cocoa volumes in direct supply chain
• Supported cocoa farmers with cost of production through paid labor teams in Côte d'Ivoire, Ghana, and Cameroon (19,326 hectares)
• Reached 269,762 farmers, in line with trajectory to lift 500,000 cocoa farmers out of poverty by 2025
• Implemented child labor-focused due diligence systems in 76.5% of farmer groups in direct supply chain
• Extended agroforestry approach (including payment for ecosystem services) by 18,066 hectares (76.8% growth)
• Developed an online training program covering Code of Conduct and child/forced labor concepts for employee onboarding
• Provided training to all suppliers in direct cocoa supply chain on child and forced labor
• Supported establishment of Human Rights Committees (HRCs) at farmer group level in Côte d'Ivoire (182 new committees)

Governance Achievements

• Conducted a comprehensive double materiality assessment to understand and prioritize ESG areas
• Reviewed and updated Global Human Rights Policy annually
• Developed Code of Conduct (updated in 2022 and 2023), approved by Executive Committee and signed by CEO
• AFRQC Committee oversees ESG processes, controls, reporting, and integration into audit structure

Climate Goals & Targets

Environmental Challenges

• Declining cocoa productivity due to poor agricultural practices, nutrient-depleted soils, aging trees, and waning interest from next generation of farmers
• Child labor in supply chains
• Shift in farmer cultivation preferences away from cocoa to alternative crops
• Long-term impacts of deforestation and climate change
• Deforestation and illegal production in cocoa supply chain
• Water shortage from climate change

Mitigation Strategies

• Forever Chocolate strategy focusing on prospering farmers, human rights, thriving nature, and sustainable ingredients
• Continuous evaluation and diversification of supply sources
• Developing improved agricultural practices for cocoa farms
• Industry dialogue with key stakeholders
• Traceability systems for transparency and accountability
• Polygon mapping and geolocalization to monitor cocoa origins and combat deforestation
• Human Rights Impact Assessments (HRIAs) in main cocoa sourcing countries
• Child Labor Monitoring and Remediation Systems (CLMRS)
• Agroforestry and reforestation efforts
• New integrated strategic water management approach

Supply Chain Management

Supplier Audits: 85% of sites fully SMETA compliant

Responsible Procurement

• Supplier Code
• Sustainable Sourcing Policies
• Human Rights Due Diligence
• Training on child and forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Water shortage

Transition Risks

• Regulatory changes (e.g., EUDR)
• Market shifts

Opportunities

• Agroforestry

Reporting Standards

Frameworks Used: GRI Standards, 2021

Third-party Assurance: PwC UK (Forever Chocolate Progress Report)

Environmental Metrics

ESG Focus Areas

• Supply Chain Traceability
• Climate and Energy
• Biodiversity and Ecosystems
• Workers in the Value Chain
• Affected Communities

Environmental Achievements

• Significant Scope 3 emissions removals through our scaled-up agroforestry approach and establishment of over 33,700 new hectares of agroforestry (-388,433 tCO2e)
• Increased renewable energy consumption to 76% of total electricity use, with 39 of 62 factories using 100% renewable electricity.
• Reduced net carbon intensity by -5.6% and absolute net emissions by -6.8% since 2021/22.

Social Achievements

• Scale-up of our paid Labor Groups program by +125.8%, now covering close to 44,000 hectares.
• Partnership with three international child rights organizations to address socio-economic factors driving child labor and child rights violations.
• Increased the proportion of products containing 100% sustainable cocoa or chocolate to 55.5%.

Governance Achievements

• Implementation of a rigorous organization-wide approach to prepare for the EU Deforestation Regulation (EUDR), mapping 669,174 cocoa farm plots.
• Published Net Zero Roadmap aligned with the Paris Climate Agreement's 1.5-degree Celsius goal.
• Launched Future Farming Initiative (FFI) to scale sustainable, high-tech cocoa farming.

Climate Goals & Targets

Environmental Challenges

• Record high cocoa prices due to a global shortage of beans caused by weather and climate-related challenges.
• Declining cocoa productivity due to poor agricultural practices, nutrient-depleted soils, aging cocoa trees, and waning interest from the next generation in becoming cocoa farmers.
• Child labor in supply chains and deforestation.

Mitigation Strategies

• Enhanced collaboration with customers, industry partners, and broader society.
• Implementation of due diligence processes aligned with OECD Guidelines for Responsible Business Conduct and upcoming EU regulations (EUDR, CSDDD).
• Investments in pre-harvest interventions (labor groups, fertilizers), agroforestry, and community-based approaches to address child labor and poverty.

Supply Chain Management

Responsible Procurement

• Supplier Code
• Sustainable Sourcing Policies
• Due diligence processes

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events
• Water stress
• Energy shortages
• Disease outbreaks

Transition Risks

• ESG-related regulations
• Geopolitical shifts

Opportunities

• Development of energy-efficient products
• Agroforestry insetting

Reporting Standards

Frameworks Used: GRI Standards (2021), EU Corporate Sustainability Reporting Directive (CSRD), Task Force on Climate-related Financial Disclosures (TCFD), EU Taxonomy Regulation

Certifications: SMETA

Third-party Assurance: PwC UK

Sustainable Products & Innovation

• Net zero chocolate solutions