What is considered sustainably sourced cocoa?

Sustainably sourced cocoa includes cocoa, which is grown in accordance with various sustainable cocoa certification programs, improving cocoa farmers' livelihoods through premium payments and farming practices. In addition to this certification, Barry Callebaut is deploying programs to fight child labor and deforestation, reduce carbon emissions, and improve farmer prosperity. Among them is Cocoa Horizons, its preferred vehicle to drive impact and deliver on its Forever Chocolate ambition, while addressing customer needs. In 2021/22, the company saw significant growth in Cocoa Horizons premiums, driven by solid demand from customers seeking a program that focuses on impact. Cocoa Horizons premiums generated by Barry Callebaut's customers rose to CHF 37.4 million in funds (+30%).

Commitment to 100% sustainable ingredients

The company's sustainable sourcing target aims to have 100% sustainable ingredients in all of its products. At Barry Callebaut, approximately half of the ingredient volume it sources consists of cocoa products and the other half consists of other ingredients—sugar, dairy, palm oil, coconut oil, sweeteners, nuts, and vanilla, among others.

Each ingredient the company uses has its own unique sustainability challenges. Through industry programs and collaborations with suppliers, Barry Callebaut defines and implements sustainability standards for every ingredient it sources. With the upcoming formalization of the sustainable coconut and coconut oil roundtable as well as the new standard on sweeteners introduced by the Sustainable Agriculture Initiative (SAI), it has now established sustainability standards for the vast majority of our non-cocoa ingredients, allowing it to currently source almost three out of four ingredients certified (73.4% compared to 66.2% prior year).

"We will continue pushing the envelope and setting new standards in sustainable sourcing, offering our customers best-in-class solutions, said Massimo Selmo, chief procurement officer of the Barry Callebaut Group.

Continuing to scale up activities

Next to the company's target to have 100% sustainable ingredients in all of its products, Forever Chocolate contains targets to have more than 500,000 cocoa farmers in its supply chain lifted out of poverty, eradicate child labor from its supply chain, and become carbon- and forest-positive.

"Our Forever Chocolate Progress Report, covering fiscal year 2021/22, shows that we continue to scale up our activities by partnering with customers as well as industry stakeholders to create tangible impact on the ground, while at the same time publicly advocating for policies to make sustainable chocolate the norm," said Steven Retzlaff, president global cocoa, Barry Callebaut Group

Key achievements in 2021/22 include:

• Prospering Farmers - The company's Farm Services Business continued to support 171,710 (+36.7%) farmers in 2021/22. In addition, programs supporting subsidized soil inputs and paid labor teams to improve cocoa quality yield per hectare were ramped up across 8,000 hectares in Côte d'Ivoire and Ghana.
• Zero Child Labor - 80.6% of the farmer groups that are part of Barry Callebaut's direct supply chain have systems in place to prevent, monitor, and remediate child labor, compared to 61.4% in prior year.
• Thriving Nature - The company launched its intensified agroforestry approach across 11,000 hectares in Ghana and Côte d’Ivoire with a focus on long-term success through training, extended monitoring, and payment for ecosystem services.
• Sustainable Chocolate - With the support of its customers, the company increased the proportion of products sold containing 100% sustainable cocoa or chocolate to 49.4% in 2021/22, compared to 42.6% in prior year. This corresponds to one in two products.