Forever Chocolate Progress Report 2023/24

Forever Chocolate Progress Report 2024 Barry Callebaut

Forever Chocolate Progress Report 2023/24

Our eighth Forever Chocolate progress report covering fiscal year 2023/24, highlights our achievements from the past year and delves deeper into our evolving strategy. It underlines our commitment to intensify our efforts by collaborating with customers, industry partners, and wider society, to drive real change on the ground. Simultaneously, we remain steadfast in our advocacy of policies to make sustainable chocolate the norm.

Highlights

  • Implementation of a rigorous organizational-wide approach to prepare for the EU Deforestation Regulation (EUDR), which has profoundly transformed our traceability efforts and set a new standard for transparency in our supply chain. As such, we have mapped 669,174 farm plots (+22.2%) in 2023/24.
  • Significant increase in carbon removals (-388,433 tCO2e) through the upscaling of our agroforestry approach, which reached 33,795 hectares of agroforestry newly established in 2023/24.
  • Scale-up of our paid Labor Groups program by +125.8% in comparison to 2022/23, 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, supporting our new community-based approach in Côte d'Ivoire, Ghana, and Nigeria.

We report every year on the progress of our time-bound, measurable targets, and these reports are verified by an independent, third-party assurance provider. This Progress Report covers Fiscal Year 2023/24, ending 30 August 2024.

Forever Chocolate - Ambitious Targets, Leadership, Customer Solutions and Operational Excellence

In May 2023, we presented a set of sharpened targets for Forever Chocolate. We have not only sharpened our targets but also fundamentally rethought our approach in order to achieve the biggest impact. Our approach combines ambitious targets, thought leadership, customer solutions, and operational excellence.

  • With regard to thought leadership, we are committed to leading by example and providing valuable insights through, for example, the release of our White Paper which underpins our vision for a transformative approach to improve the existing cocoa farming model in Côte d'Ivoire and, more broadly, across West Africa.
  • Concerning customer solutions, our customers are our priority and we have developed key flagship programs that provide innovative solutions tailored to their needs.
  • As to operational excellence, this is driven by our over 1,600 colleagues in cocoa-origin countries, who form the backbone of our organization, contributing their expertise, skills, and unique perspectives. As the largest supplier of sustainable cocoa products and chocolate, we strive to excel in every aspect of our operations across the entire supply chain and have the ability to scale up on key activities with precision.
Barry Callebaut CEO Peter Feld

Message from the CEO

Fiscal year 2023/24 presented a challenging landscape for advancing our impact in sustainability, with cocoa prices reaching record levels due to a global shortage influenced by weather and climate factors. However, we remained resolute in our commitment to making sustainable and traceable chocolate the norm. Best-in-class sustainability is a core promise of our strategic investment program, BC Next Level, and is essential to delivering on our four growth priorities.

This year, we strengthened collaborations with sector stakeholders, leveraging on-the-ground expertise to meet customer needs and align with evolving consumer expectations, while promoting ethical practices and reducing environmental impact. At the core of our sustainability efforts is end-to-end traceability.

In fiscal year 2023/24, we made significant progress in building a sustainable and traceable cocoa and chocolate supply chain. The key focus has been implementing a rigorous, organization-wide approach to prepare for the EU Deforestation Regulation (EUDR). This has strengthened our traceability efforts and set a new benchmark for supply chain transparency. We remain committed to be compliant with the EUDR requirements by the new application date to be set out. As such, in 2023/24, our mapping initiatives expanded to cover 669,174 cocoa farm plots, enabling farm-level traceability for cocoa sourced from these farms.

Prospering Farmers - Forever Chocolate

Prospering Farmers

2023/24

Our goal

By 2025, 500,000 cocoa farmers in our supply chain will have been lifted out of poverty. By 2030, we will have mobilized key stakeholders around a transformative cocoa farming model generating living income.

Our approach

At Barry Callebaut, we aim to transform the way cocoa is produced by enhancing the existing farming model in Côte d'Ivoire, West Africa, and beyond. We firmly believe that focusing on increasing production volumes from a smaller group of farmers, who can then achieve a living income through a combination of better yield, larger farms, and higher farm gate prices, is the key.

Many cocoa farmers struggle to make a living income. Their main challenge is access to investments in their farms. This is why we shifted our focus from training to providing input support. Our support ranges from subsidized soil inputs and planting material to financial support for third-party labor services and additional premiums. Improving quality yield per hectare remains key to lift smallholder cocoa farmers out of poverty and put them on a trajectory towards a living income.

Prospering farmers 2023 Barry Callebaut

Our measured impact

  • 475,752 cocoa farmers in our supply chain lifted out of poverty
  • Scale-up of our paid Labor Groups program by +125.8% in comparison to 2022/23, now covering close to 44,000 hectares
  • 197,763 cocoa farmers have received farm service activities
  • Almost 3.2 million cocoa seedlings distributed in 2023/24

Human rights 2024 Barry Callebaut

Human Rights

2023/24

Our goal

By 2025, our entire supply chain will be covered by Human Rights Due Diligence, remediating all child labor cases identified. By 2030, the farming communities we source from are empowered to protect child rights.

Our approach

We envision that all children are able to embrace opportunities and realize their full potential, living in communities that are safe and self-reliant for all. We support a system strengthening approach, contributing to existing government structures and working with multiple stakeholders.

We focus our efforts on strengthening community systems to better protect children whilst still continuing our aim of remediating all cases of child labor found. Our community approach starts with understanding which farming communities are most at risk, and providing these farming communities with the necessary support through a combination of strengthening the local child protection system, access to quality education and adequate community infrastructure, and improved livelihoods.

At the same time, Forever Chocolate aligns with the OECD Guidelines for Responsible Business Conduct, which provide a comprehensive framework for promoting responsible business practices. For more information, see Our Approach To Due Diligence in Barry Callebaut’s Social and Environmental Impact Report 2023/24.

Human Right 2023 Barry Callebaut

Our measured impact

  • Partnership with three international child rights organizations to address socio-economic factors driving child labor and child rights, supporting our new community-based approach in Côte d'Ivoire, Ghana, and Nigeria
  • 91% of the farmer groups in our direct supply chain undertake child labor prevention, monitoring and remediation activities
  • 41,190 cases of child labor under remediation and 26,530 of cases of child labor remediated
  • 19,389 cases of child labor identified
  • We supported over 2,000 Village Savings and Loan Associations (VSLAs), which helped members save CHF 3.6 million and borrow CHF 2.2 million to start businesses
Thriving Nature 2024 sustainability Barry Callebaut

Thriving Nature

2023/24

Our goal

By 2025, we will be forest positive. By 2030, we will have decarbonized our footprint in line with global efforts to cap global warming at 1.5 degrees Celsius. By 2050, we will be a net zero company. 

Our approach

To ensure the stability of ecosystems we are committed to reducing our carbon footprint and achieving a forest positive supply chain. This means our goal is to go beyond sourcing activities and deforestation-free supply chains and contribute to long-term and large-scale forest conservation.

At the same time our aim is to empower communities, helping farmers prosper by increasing the long-term productivity of cocoa farming in environmentally suitable areas while mitigating the impact of climate change, preserving ecosystems and restoring natural biodiversity on existing farmland.

While maintaining our target to become forest positive by 2025, we are focusing on insetting our carbon emissions through agroforestry and other decarbonization initiatives across our factories and value chain. This shift is aligned with the emissions reduction trajectory of the Paris Agreement for 2030, and will help us become a net-zero company by 2050.

Thriving Nature 2023 Barry Callebaut

Our measured impact

  • Significant increase in carbon removals (-388,433 tCO2e), through the upscaling of our agroforestry approach, which reached 33,795 hectares of agroforestry newly established in 2023/24
  • Our mapping initiatives expanded to cover 669,174 cocoa farm plots, enabling farm-level traceability for cocoa sourced from these farms
  • Over 3.3 million trees for agroforestry projects distributed in 2023/24
  • 39 out of the company’s 62 factories sourcing 100% renewable electricity
  • 46.5% sourced raw materials demonstrated not to be contributing to deforestation

Forever Chocolate - Sustainable Ingredients 2024

Sustainable Ingredients

2023/24

Our goal

By 2030, we will have 100% certified or verified cocoa and ingredients in all of our products, traceable to farm level.

Our approach

We are collaborating closely with our suppliers, engaging in industry-level working groups and striving to increase customer demand for sustainable products while implementing our sustainable sourcing programs across all ingredients. Our goal is to integrate these programs into regulatory frameworks, establish strong government partnerships, and positively shape agricultural policies.

Traceability is a cornerstone of our Forever Chocolate commitment to making sustainable chocolate the norm. Through our traceability systems, we not only ensure transparency and accountability, we can also accurately track and monitor the origins of our products, promoting ethical practices, safeguarding human rights and reducing environmental impact through deforestation monitoring, education, prevention and other programs.

Whenever possible, we are driving impact on the ground by working directly with farmers and cooperatives. In addition to cocoa, we have various origin-based projects covering dairy, coconut oil, palm oil and cane sugar. We work with, and implement, various sustainable cocoa programs to improve cocoa farmer livelihoods and farming practices. Among them is Cocoa Horizons, our preferred vehicle to drive impact and deliver on our Forever Chocolate ambition while addressing customer needs.

Sustainable Ingredients 2023 Barry Callebaut

Our measured impact

  • More than half of products sold contain 100% sustainable cocoa or chocolate
  • 82.3% sustainably sourced non-cocoa raw materials
  • Traceability to farm level for 83% of cocoa volumes in our direct supply chain
  • CHF 43.5 million premiums generated from Cocoa Horizons products in 2023/24
     

Our progress on Forever Chocolate over the years

Since 2016 have been collecting a large number of key performance indicators (KPIs) that not only track the key approach and progress of our Forever Chocolate program but also cover Barry Callebaut’s material topics, as defined by our stakeholders. 

Interested in our Forever Chocolate progress over the years? Check out our data sheet showing key KPIs from 2016/17 until 2023/24.

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