Corporate Commitments to
Ethical Chocolate Sourcing and Their Impact
The global chocolate industry has faced increasing scrutiny over ethical concerns, particularly regarding child labour, deforestation, and the economic well-being of cocoa farmers. In response, numerous corporations have pledged to source cocoa more responsibly, implementing various initiatives to promote sustainability and ethical practices within their supply chains.
Corporate Commitments and Initiatives
Many companies have established comprehensive programs to enhance the traceability and sustainability of their cocoa sourcing. Here’s a closer look at three leaders in the industry and their commitments:
1. The Hershey Company – Cocoa For Good
The Hershey Company’s Cocoa For Good strategy, launched in 2018, is a 10-year initiative backed by $500 million. Its key focus areas include improving farmer livelihoods, eliminating child labour, supporting women’s empowerment, and protecting forests. The program includes annual training for over 55,000 farmers on sustainable farming practices and financial literacy. Hershey has also partnered with organizations like UNICEF to implement education programs, reaching over 4,000 children in cocoa-growing communities. Additionally, Hershey has committed to sourcing 100% certified and sustainable cocoa by 2025.
2. Barry Callebaut – Forever Chocolate
Barry Callebaut, one of the world’s largest chocolate manufacturers, launched its Forever Chocolate initiative in 2016. The program focuses on achieving four key goals by 2025: lifting more than 500,000 cocoa farmers out of poverty, eradicating child labour from its supply chain, becoming carbon and forest-positive, and using 100% sustainable ingredients. As of 2023, the company reported that 61% of its cocoa and chocolate ingredients were sustainably sourced, and it achieved a 21% reduction in carbon emissions across its operations. Barry Callebaut also invests heavily in agroforestry projects, planting over 1.5 million trees in cocoa-growing regions to enhance biodiversity and reduce deforestation.
3. Tony’s Chocolonely – A Holistic Approach to Ethical Sourcing
Tony’s Chocolonely has positioned itself as a trailblazer in ethical chocolate production, with the ambitious mission of creating a 100% slave-free chocolate industry. The company’s “Tony’s Open Chain” initiative encourages other companies to adopt transparent sourcing practices. It uses a unique sourcing model that ensures farmers are paid a living income, covering at least 20% above Fairtrade premiums. In addition to addressing child labour and income disparities, Tony’s is dedicated to reducing its environmental footprint by adopting sustainable packaging and committing to a 42% reduction in its carbon emissions by 2030.
Traceability and Transparency
Traceability has become a cornerstone of ethical chocolate sourcing, enabling companies to identify the origins of their cocoa beans and ensure they are sourced responsibly. By mapping their supply chains down to the farm level, companies can monitor compliance with labour laws, environmental standards, and fair trade practices. According to the 2024 Chocolate Scorecard, 89% of assessed companies have committed to traceability, with many aiming to achieve full traceability by 2025. Companies like Nestlé and Mars are using advanced technologies such as blockchain and satellite monitoring to track cocoa from farm to factory. These tools help ensure that the cocoa is not linked to deforestation or human rights abuses. Blockchain, in particular, is revolutionizing the industry by creating an immutable record of transactions, fostering trust among stakeholders.
Transparency is another vital component, as it enables consumers, investors, and NGOs to hold companies accountable for their commitments. Many companies are publishing annual sustainability reports, detailing progress and challenges in their supply chains. For example, Ferrero’s 2023 transparency report revealed that 80% of its cocoa supply was traceable to the cooperative level, up from 60% in 2020. Publicly available data not only builds trust but also encourages collaboration across the industry. Governments are also playing a role, with regulations like the European Union Deforestation Regulation (EUDR) requiring companies to prove that their products are free from links to deforestation. This growing focus on traceability and transparency reflects a broader industry shift toward accountability and sustainable practices.
Challenges and Criticisms
Despite these commitments, challenges persist. A 2024 report highlighted that low incomes among cocoa farmers continue to drive deforestation and child labour, with 94% and 80% of deforestation in Ghana and the Ivory Coast, respectively, attributed to cocoa farming. While companies claim to support living incomes for farmers, only a few have substantially implemented these measures.
Additionally, some companies have faced criticism for inadequate monitoring of their supply chains. For example, an investigation in 2024 uncovered child labour on plantations supplying cocoa to Lindt & Sprüngli, indicating gaps in their monitoring programs.
Future Plans and Innovations
Looking ahead, companies are exploring innovative approaches to enhance ethical sourcing. Agroforestry, which integrates cocoa cultivation with other crops and trees, is gaining attention for its potential to improve biodiversity and farmer livelihoods. Collaborations among stakeholders are also increasing, with the aim of implementing successful models of sustainable cocoa production.
Retailers are also joining ethical sourcing initiatives. For instance, Aldi partnered with Tony’s Chocolonely to launch the Choceur CHOCO CHANGER range, aligning with Tony’s mission to end exploitation in the cocoa industry.
Sources:
- The Hershey Company: Visible Progress: Hershey’s Cocoa For Good Strategy
- Barry Callebaut: Ambitious Targets, Leadership, Customer Solutions and Operational Excellence.
- International Institute for Environment and Development: Tony’s Chocolonely – a holistic approach to sustainable chocolate
- Chocolate Scorecard: Traceability and Transparency
- Reuters: More collaboration needed cocoa firms battle deforestation child labour risks
- News.com.au: Aldi partners with ‘world’s best chocolate’ brand to launch $4 bar