COCOA
COMPASS
2022 IMPACT REPORT
CONTENTS
WE ARE ofi P.03
OUR AMBITION P.04
YEAR IN REVIEW P.06
PROGRESS SNAPSHOT P.07
COLLABORATING FOR CHANGE P.08
EMPOWERED TO GROW P.09
FOCUSED ON FARMERS P.15
INVESTING IN NATURE P.22
DATA HUB P.29
02
03
04
05
06
07
08
09
10
01
CLICK TO NAVIGATE TO EACH SECTION
GLOSSARY P.05
WE ARE ofi.
1 in 5 chocolate bars consumed globally
use our cocoa beans and ingredients.
We partner at every step, from plant to
palate, to deliver value for our customers,
delight their consumers, and create real
change for people and planet.
4.
WITH OUR CUSTOMERS, WE CO-CREATE
ON-TREND CHOCOLATE & CONFECTIONERY,
BEVERAGES, ICE CREAMS & DESSERTS
AND SNACKING SOLUTIONS AT ONE OF
OUR CUSTOMER SOLUTIONS CENTERS.
3.
WE CAN ALSO OFFER OUR CUSTOMERS
FULLY SEGREGATED COCOA INGREDIENTS
FROM THE FARM TO ONE OF OUR
12 PROCESSING FACILITIES.
1.
WE ARE A LEADER IN SUSTAINABLE COCOA,
SUPPORTING OUR CUSTOMERS TO DELIVER
SOCIAL AND ENVIRONMENTAL IMPACT FOR
330,000 COCOA FARMERS IN 9 COUNTRIES.
2.
WE HAVE A PRESENCE ACROSS
THE SUPPLY CHAIN, WITH THE
LARGEST ORIGINATION FOOTPRINT
IN THE INDUSTRY
OUR AMBITION
THE JOURNEY TO
OUR 2030 GOALS
Our ambition is to offer sustainable choices
for our customers by helping cocoa farmers
prosper and communities thrive within
regenerated landscapes. By working together,
we can be the change for good food and a
healthy future.
We have set challenging goals for 2030, with
milestones for action along the way, across
three impact areas: Empowered to Grow,
Focused on Farmers, and Investing in Nature.
Read the glossary on the next page to
understand our key terms and definitions.
*Against 2018 baseline.
**To farm or community
2030
10% REDUCTION IN NATURAL CAPITAL COSTS*
30% REDUCTION IN NATURAL CAPITAL COSTS*
2020 – ALREADY ACHIEVED
100% TRACEABILITY AND DEFORESTATION
MONITORING IN DIRECT SUPPLY CHAIN**
CHILD LABOR MONITORING IN ALL
MANAGED PROGRAMS
2024 INTERIM MILESTONES
60,000 SUPPLIER FARMERS EARNING
A LIVING INCOME
CHILD LABOR ELIMINATED IN GLOBAL SUPPLY CHAIN,
IN COLLABORATION WITH OUR CUSTOMERS,
PARTNERS AND GOVERNMENTS
150,000 SUPPLIER FARMERS
EARNING A LIVING INCOME
INCREASE IN TREE CARBON STOCK
ALL CHILDREN OF SUPPLIER FARMERS
HAVE ACCESS TO EDUCATION
Tree carbon stock takes into account the amount of
land being used for cocoa farming versus the amount
of forest in a supply chain and the quality of the trees.
TREE CARBON STOCK
GLOSSARY
Volumes procured directly from farmers, or from
farming co-operatives, farmer groups, community/
growing areas or their representatives (including
Local Buying Agents who are restricted to a specific
community/growing area).
DIRECT SOURCING
Volumes procured from non supported farmers, or
not associated with any sustainability claim. This is
consistent with a vast majority of trade in the past and
still occurring today; and includes volumes procured
from third parties, for example government entities,
exchange trading, other national and international
companies, as well as from intermediaries (e.g., Local
Buying Agents, LBAs) who are not restricted to a
specific farmer group/community/growing area.
CONVENTIONAL SOURCING (OR INDIRECT)
A farmer with an increased probability of non
compliance due to location of farm or prevalence of
crop disease or human rights violation.
HIGH RISK FARMER
We adopt the guidance of the Living Income
Community of Practice (LICOP): “The net annual
income required for a household in a particular place
to afford a decent standard of living for all members
of that household. Elements of a decent standard
of living include food, water, housing, education,
healthcare, transport, clothing, and other essential
needs including provision for unexpected events.”
ofi is working with LICOP and others to develop living
income metrics, acknowledging that consensus for
a globally accepted methodology requires time and
that specific norms and methods may vary from
region to region.
LIVING INCOME
The amount of carbon sequestered from the
atmosphere and stored within the forest ecosystem.
CARBON CAPTURE
Child labor is work that deprives children of their
childhood, their potential and their dignity, and that
is harmful to physical and mental development (work
that interferes with schooling or is hazardous) (ILO
convention 138).
CHILD LABOR
All work or service which is exacted from any person
under the menace of any penalty and for which the said
person has not offered himself [or herself] voluntarily.
FORCED LABOR
Volumes procured under a recognized sustainability
framework or standard (e.g., ofi farmer support
program, RA, Fairtrade, AtSource+, Organic).
SUSTAINABLE SOURCING
Natural Capital Accounting follows a holistic systems
approach to understand the true value of nature,
people, society for humans. The economy must be
recognized as parts within a deeply interconnected
global system and addressed together to deliver value
across the capitals. It is an approach to measure the
changes in the stock of natural capital at a variety
of scales and to integrate the value of ecosystem
services into accounting and reporting systems at
national, corporate, project and product levels. This
will result in better management of natural capital
by these different entities. Source: Transparent (EU
funded project and in line with the ambition of the
European Green Deal).
NATURAL CAPITAL ACCOUNTING
YEAR IN REVIEW:
WORKING TOWARDS
OUR 2030 GOALS
TO MAKE OUR
AMBITION A REALITY
I’m delighted to share the positive impact we
helped deliver last year with our customers and
partners for cocoa farmers, their communities,
and the environment. Together, we’re steadily
working toward our 2030 goals, and 2024 interim
milestones for impact and continuing to lay the
foundations for achieving our purpose to be the
change for good food and a healthy future.
As we take a step closer to these milestones, we will
refresh our Cocoa Compass ambition, aligned with
the United Nations Sustainable Development Goals
(UN SDGs), to continue to make the future of cocoa
more sustainable. This will incorporate what we’ve
learned since its inception in 2019 and leverage the
impact of our on-the-ground programs in cocoa
communities. And it will also reinforce ofi’s broader
sustainability strategy – which we’ll share more
about in our next Cocoa Compass impact report.
INCREASING ACCESS TO EDUCATION
We’re focused on putting children first in cocoa by creating
communities where they can thrive. That means tackling a
range of underlying drivers, like a lack of access to education,
which can lead to children working on the farm instead of
going to school. In 2022, we worked with our customers to
increase the number of children receiving education support
to 89,530 (+160% from 2021), including distributing birth
certificates needed for enrollment and rehabilitating or
building schools.
We also collaborated with specialist NGOs to help us
continually improve our approach to addressing child labor
in cocoa, like our behavioral research project with Save the
Children and Mars.
HELPING MORE FARMERS EARN A LIVING INCOME
We aim to go beyond just lifting farmers out of extreme
poverty and helping them earn enough to be financially
stable. By distributing more cocoa seedlings we supported
farmers in our programs to increase their yields by 13%
compared to 2021. We also developed our comprehensive
Farmer Income Tool to show detailed income estimates
and living income gaps for a broad sample of farmers in
our sustainable cocoa supply chain across nine countries.
The results indicate that we are on track to meet our 2024
milestone to help 60,000 cocoa farmers in our supplier
network earn a living income while also providing thousands
more in our programs with livelihood support.
REDUCING OUR COST ON NATURE
We drive climate action across our supply chain and give
farmers the support they need to be positive stewards of
their environment. That way, our cocoa ingredients can become
part of the solution, not the problem, for climate, forests, and
biodiversity. For example, we’ve taken further steps towards
helping our customers meet GHG reduction commitments
and targets by creating a Carbon Scenario Planner built into
our sustainability management system, AtSource.
I would like to give huge thanks to our global sustainability
team for driving progress forward and to our customers and
partners for their continued support. Their collaboration is a
critical ingredient in making our Cocoa Compass ambition a
reality for generations of cocoa farmers and the natural world.
ANDREW BROOKS,
ofi GLOBAL HEAD OF COCOA SUSTAINABILITY
EMPOWERED
TO GROW
FOCUSED
ON FARMERS
89,530
CHILDREN RECEIVED
EDUCATION SUPPORT
(+160% 2021)
720KG/HA
COCOA YIELD OF
TRAINED FARMERS
(+13% 2021)
2.3M
TREES DISTRIBUTED
FOR AGROFORESTRY
AND INCOME
DIVERSIFICATION
(+29% 2021)
0.23 CO2 EMISSIONS PER METRIC
TON OF PRODUCT OUTPUT
FROM COCOA PROCESSING
(+4%** 2021)
USD838
REDUCTION IN
NATURAL CAPITAL
COSTS PER TON
FROM AGRICULTURE
(-10% 2021)
30,168
FARMERS EARNING
A LIVING INCOME
(+3%* 2021)
3.5M
COCOA SEEDLINGS
DISTRIBUTED
(+22% 2021)
250,470
HOUSEHOLDS
COVERED BY CHILD
LABOR MONITORING
& REMEDIATION
SYSTEM
(+15% 2021)
4,850
CHILD LABOR CASES
REMEDIATED AND RESOLVED
(+1% 2021)
2024 INTERIM MILESTONE
10% REDUCTION IN
NATURAL CAPITAL COSTS*
2030 GOALS
30% REDUCTION IN
NATURAL CAPITAL COSTS*
CREATE AN INCREASE IN
TREE CARBON STOCK
2024 INTERIM MILESTONE
60,000 COCOA FARMERS IN
OUR SUPPLIER NETWORK ARE
ACHIEVING A LIVING INCOME
2030 GOAL
150,000 COCOA FARMERS IN
OUR SUPPLIER NETWORK ARE
ACHIEVING A LIVING INCOME
2030 GOALS
ALL CHILDREN OF SUPPLIER
FARMERS HAVE ACCESS
TO EDUCATION
CHILD LABOR ELIMINATED
IN GLOBAL SUPPLY CHAIN IN
COLLABORATION WITH OUR
CUSTOMERS, PARTNERS AND
GOVERNMENTS
INVESTING
IN NATURE
COCOA COMPASS
PROGRESS
SNAPSHOT 2022
We are embracing the power of digital technology to turn our presence on the ground
into actionable insights for our customers. Through AtSource, our sustainability
management system, they can access detailed social and environmental metrics about
the 2022 progress we helped deliver in their supply chains.
*Against 2018 baseline
*Not a like for like comparison due to a change in the methodology
**The slight increase in costs in 2022 can be linked to factors including the ongoing maintenance of the cocoa shell boiler in our Ilheus, Brazil.
COLLABORATING
FOR CHANGE
Many of the challenges facing cocoa communities
and landscapes are bigger than any one organization
can solve. That’s why we proudly partner with our
customers, civil society, national governments, and
other stakeholders to support over 330,000 farmers
across nine countries. Together, we can positively
impact the areas of the supply chain where we have
the most influence and create a more sustainable
cocoa future.
Restoring 2,000HA of land for
biodiversity and carbon capture.
Employing 600 local residents to
create one of the world’s single
largest sustainable commercial
cocoa farms.
Partners: Mondelēz
International
Indonesia
Many of our programs are part of AtSource Infinity, meaning we
co-create tailored interventions with our customers to deliver
landscape-level change for people and planet, helping them
fulfill their reporting and regulatory commitments.
KEY PARTNER PROGRAMS
Supporting up to 700 farmers to
bring 48,000HA of land under
sustainable management in the
Amazon by end of 2023.
Partners: The Nature Conservancy,
Mondelēz International,
Partnerships for Forests, and
Instituto Humanize.
Brazil
Promoting sustainable cocoa and
coffee production to 6,500 farmers,
increase their yields by 25% and conserve
14,000HA of watershed and forest
buffers by 2025.
Partners: USAID, Hershey’s, Rikolto
and the Centre for Climate Risk and
Opportunity Management in Southeast
Asia Pacific, Bogor Agricultural
University.
Combined Partner
Investment: USD7m
Indonesia
Helping 15,000 farmers over five years to
protect and to restore forest landscapes
and increase farmer incomes.
Partners: USAID, The Rainforest Alliance,
Fuji Oil, Costco Wholesale, Mondelēz
International, Mars, and Nestlé.
Combined Partner
Investment: USD14m
Côte d’Ivoire
& Ghana
•
Child Learning and Education Facility
•
Cocoa & Forests Initiative
•
Cocoa Action Brasil
•
CocoaSoils
•
International Cocoa Initiative
•
UN Women’s Empowerment Principles
•
National Platforms for Sustainable Cocoa
in Europe
•
Maximizing Opportunities for Coffee and
Cacao in the Americas (MOCCA)
OUR MULTI-STAKEHOLDER INITIATIVES:
Enhancing the recognition and
remuneration of 500 women in
cocoa production.
Partners: USAID and Lindt
& Sprüngli.
Combined Partner
Investment: USD348,830
Papua
New Guinea
01
10
HOW WE
MADE IT REAL
IN 2022
12,260
CHILDREN IDENTIFIED IN
CHILD LABOR (-2% 2021)
4,850
CHILD LABOR CASES REMEDIATED
AND RESOLVED (+2% 2021)
89,530
CHILDREN RECEIVED EDUCATION
SUPPORT (+160% 2021)
250,470
HOUSEHOLDS COVERED BY CHILD
LABOR MONITORING AND REMEDIATION
SYSTEMS (+15% 2021)
Read our definitions in the glossary.
10
2030 GOALS
ALL CHILDREN OF SUPPLIER FARMERS
HAVE ACCESS TO EDUCATION
CHILD LABOR ELIMINATED IN GLOBAL
SUPPLY CHAIN IN COLLABORATION
WITH OUR CUSTOMERS, PARTNERS
AND GOVERNMENTS