Cocoa Compass impact report 2022

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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

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