"Barry Callebaut was once again ranked in the 1st percentile in both the Food Product and Packaged Food companies by Morningstar Sustainalytics. The company's overall exposure to ESG risks is rated as 'High', but the overall management of ESG issues is rated as 'Strong', the top management category," said Sustainalytics ESG Risk Rating commentary, Barry Callebaut 2023.

The importance of stakeholder engagement

Customers, investors, and other stakeholders expect Barry Callebaut to address the key sustainability challenges in its supply chain. As the global sustainability landscape continues to evolve, the brand is committed to evaluating what priorities and risks its stakeholders in the chocolate and cocoa value chain deem important for it to focus its efforts on. Barry Callebaut does this via regularly updating its ESG (Environmental, Social, and Governance) materiality assessment to align with the evolving needs of its stakeholders and the changing dynamics of the industry.

In 2023, Barry Callebaut conducted a comprehensive double materiality assessment to better understand and prioritize these areas. This process involved extensive engagement with a wide range of stakeholders. Their feedback and insights have been integral to ensuring that its approach aligns with both the realities of the cocoa sector and the expectations of our stakeholders.

Barry Callebaut's latest materiality report highlights the ESG topics considered most critical by its stakeholders, in terms of their impact on the people, communities, and the environment where it operates and the subsequent financial significance for Barry Callebaut.

Transparent reporting and governance

Barry Callebaut is committed to assessing and reporting on its ESG risks. It publicly discloses its approach and progress on key material topics in its third-party verified annual Forever Chocolate Progress Report. In addition, it has a public dedicated page covering a range of key ESG topics that impact our operations and supply chain. It also discloses the geolocations of cocoa suppliers it sources from.

A dedicated ESG task force is employed to oversee, coordinate, and align all relevant ESG activities in order to achieve those objectives. The Board of Directors plays a crucial role in overseeing the ESG strategy within Barry Callebaut. This oversight includes aligning the business and ESG strategy and ambitions, ensuring a long-term vision on the development of our business value, and actively identifying and managing actual and forward-looking risks. The Board ensures that adherence to Regulations and sustainability topics and matters are fully integrated into the company's purpose, strategy, decision-making, risk management, and accountability reporting.

About Morningstar Sustainalytics

Morningstar Sustainalytics is an ESG data, research, and ratings firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Morningstar Sustainalytics works with hundreds of the world's leading asset managers and pension funds who incorporate ESG information and assessments into their investment processes. The firm also works with hundreds of companies and their financial intermediaries to help them consider material sustainability factors in policies, practices, and capital projects. Morningstar Sustainalytics has analysts around the world with varied multidisciplinary expertise across more than 40 industry groups.