Sustainability

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cocoa Sustainability Background

Cocoa bean is the most important and irreplaceable chocolate ingredient for chocolate manufactures. With the continuous growth of population and demand of chocolate, the industry became extremely concern with the future of cocoa bean supply, due to limited land and other resources.
 
Cocoa Sustainability Background  
In order to prevent shortage of cocoa beans from happening, the main players in the chocolate industry initiated Cocoa Sustainability Projects in different aspects such as:
  Cocoa Productivity Deforestation Child Labor Farmers' Living Income  
  Cocoa
Productivity
Deforestation Child Labor Farmers'
Living Income
 
 
    On the other hand, in an effort to support the sustainability initiatives, various certification bodies and non-governmental organizations (NGOs), such as World Cocoa Foundations, Cocoa Sustainability Partnership, FairTrade, UTZ, and Rainforest Alliance have step up in order to contribute, steer and provide assurance for the initiatives.
 
The typical scope includes the following: no forced and child labor, no deforestation and reforestation, use eco-friendly fertilizer, provide education on good agricultural practices, subsidize farming materials, as well as improve communities and infrastructure in the farming villages. Farmers that contribute to these would receive additional premium, normally defined by individual companies, as an encouragement to continue contributing.   Cocoa Sustainability Background
 

Cocoa Sustainability Strategic Direction

Cocoa Sustainability Strategic Direction  
Our Role in The Past

Our Role in The Past

 
Previously we have not been carrying out programsin the origin countries because we had no presence in the origin countries. However, we have continuously contributed to sustainability by subsidizing suppliers who supply cocoa beans that are certified by certification bodies, such as UTZ and Rainforest Alliance and are sourced from farms that carry out sustainability programs. In addition to that, its facilities are also certified by the above-mentioned certification bodies, in which it enables us to process certified cocoa beans and to pass down the resulted cocoa products to our customers. In addition to that, we try to govern a set of requirements by having a code of conduct that spells out the rules that align with our CSR standards and making sure that ourselves and our suppliers comply to them. As we move into origin country - Cote d'Ivoire, we commit to contribute more to sustainability in the upstream.
 
Our Role Now

Our Role Now

 
We will continue to obtain the certification for its existing facilities, as well as the new installation in Cote d'Ivoire,
and govern its won code of conduct, making sure
that suppliers continue to comply to these code
of conduct. In order to do that, the company's
cocoa bean quality assurance team will
conduct verification audit for at least
3 suppliers per year in each region
- namely Asia, America and Africa.
 
 
In 2019, we made a major move in desiding to get more involved in the sustainability initiatives. We have committed to have a greener supply chain and to implement our own program in origin countries. Currently we have established partnerships with suppliers, MNC customers and NGO, in which we invest funds, alongside with MNC customers, for the NGO - namely Farmstrong Foundation, a well-established Swiss Not-For-Profit Organization that has resources in Cote d'Ivoire - to carry out sustainability project, source beans from the participating farms for the suppliers to ship out to our facility for processing.
 

Our Cocoa Sustainability Policy

We are committed to making a conscious and concerted effort to embrace cocoa sustainability, partnering with stakeholders in the whole cocoa supply chain to secure the future supply of cocoa and a thriving cocoa sector tomorrow.
  Our Cocoa Sustainability Policy
 

Our Cocoa Sustainability Commitment

In 2019, we have become a member of the World Cocoa Foundation (WCF) in hopes to have a more prominent voice in the industry and in influencing the industry on our beliefs.

These actions show our commitment in a long-term involvement, together with the industry, governments of origin countries, NGOs, and end consumer to make cocoa greener.
World Cocoa Foundation
 
In early 2020, we have signed up to the Cocoa & Forests Initiative (CFI) that is a public-private partnership, collaborating with the governments of Côre d'lvoire and Ghana, the world's leading cocoa and chocolate companies.

The framework specifically spells out the targets of ending deforestation and promoting forest restoration and protection in the cocoa supply chain. We are currently working towards having the
Cocoa & Forests Initiative
 
We are also a committed member of the German Initiative on Sustainable Cocoa (Forum Nachhaltiger Kakao) through a subsidiary schokinag - Schokolade - Industries GmbH, to contribute to the initiative's joint effort towards improving the livelihood of cocoa farmers and increasing the proportion of certified sustainable cocoa. As a member of this forum, Schokinag can exchange constructive views and ideas on the topic of sustainability with other actors in the cocoa value chain.
Forum Nachhaltiger Kakao
 

Cocoa Sustainability Master Timeline

Our commitments are broken down to stages, as per the traceable cocoa and sustainable cocoa definition below, to ensure each stakeholder in the company can work step by step towards this macro goal.
 
100% of Global volume via GCB program sourcing :
Partnerships with customers, suppliers and NGOs
 
* Traceable cocoa: cocoa beans that can be traced up to farm level.
** Sustainable and traceable cocoa: cocoa that is produced according to internationally recognised sustainability standards, which include traceability with location mapping and addressing child labor and deforestation concerns.
*** Sourcing from GCB origin sourcing.
 

Our Sustainability Focus

By mirroring our company name, GCB Cocoa, our programme "Good Cocoa & Beyond" shows our commitment in putting sustainability at the core what we do. The ultimate goal of the programme is to ensure that our supply chain compalies with our commitment to secure the future supply of cocoa and ensure a thriving sustainable cocoa sector.
 

Our Four Pillars of Sustainability

By mirroring our company name, GCB Cocoa, our programme "Good Cocoa & Beyond" shows our commitment in putting sustainability at the core what we do. The ultimate goal of the programme is to ensure that our supply chain compalies with our commitment to secure the future supply of cocoa and ensure a thriving sustainable cocoa sector.
 
 
 

Our Sustainability Focus

Low farmer income remains a persistent problem in cocoa origin countries, with more than two-thirds of cocoa farmers living below the poverty line in cocoa-growing African countries. Farmers often end up getting paid a small amount of money for their cocoa beans due to local trading structures, taxes, and bean quality. Moreover, farmers often obtain low yields from their cocoa farms due to poor farming practices or limited access to agricultural inputs.

To provide farmers with more liquidity to invest in improving their farming and their living standards, we will actively help to improve farmers’ access to finance, especially before the main crop season. We will also implement a digital traceability system to ensure the transparent and prompt payment of premiums to farmers who comply with Good Agricultural Practices.
 
 
 
We will provide farmers with training on financial literacy to allow them to be self-sustaining and better manage their business and investments on their own. In the long run, we will also actively support government initiatives and programmes for sustainability in origin countries.
 
 
 

Benefiting the farmers and their community

We intend to work with farmers to not only improve the cocoa production process and to support good cocoa, but also to address the critical social challenges in their community. These include education and health, which are key cornerstones for sustainable and long-lasting development.

Child labor is a common practice in cocoa farms, with over 2.1 million child laborers in Côte d’Ivoire and Ghana alone. This deprives children of the chance to develop and advance themselves while entrenching the household’s impoverishment.

We aim to reduce and eventually eliminate child labor from our supply chain. The foundation of our program will be to have an ongoing and effective Child Labour Monitoring and Remediation System (CLMRS), which will include training and raising awareness with cocoa farming families, cooperative members, and community members, in regard to child labor and forced labor. Through CLMRS, we will monitor child labor activities and offer remediation should child labor be found in the system. Remediation activities will include offering school kits or helping farmers obtain birth certificates so that children can continue to go to school. We will also contribute to the improvement of educational infrastructure in cocoa-growing communities by expanding local schools, upgrading school canteens, and providing study material.
 
Benefiting the farmers and their community   Benefiting the farmers and their community
 
As access to healthcare facilities is often elusive in rural communities, we will promote the health and wellbeing of farmers and their community through vaccination campaigns, distributing medicine boxes, and educating farmers on transmittable diseases. This can help to improve the health of the community through increasing their access to basic medication and enhancing their knowledge of diseases and prevention.  

Farmers are often the main breadwinner in the family and they and their families face financial instability when farmers are unable to continue work due to illness or death.
Therefore, we will offer industry pioneering life insurance for farmers. In the event of permanent disability or death of the farmer, his or her family can receive a sum of money. This offers farmers and their communities long-term financial security in the event of such unfortunate circumstances.
 

Protecting the environment

Forests purify our air, provide food, and are vital in mitigating climate change.

Yet, cocoa production continues to drive deforestation, with 14 million hectares of forests lost in the top 30 cocoa-producing countries between 2012 and 2016. Hence, it is important to address deforestation in cocoa-producing countries to ensure a sustainable supply of cocoa.

We are collaborating with other stakeholders in the cocoa industry by joining the Cocoa and Forests Initiative (CFI) to reduce and mitigate the impact of cocoa on deforestation through promoting environmental protection, natural resource management, and tracking satellite imagery as well as other geographical information to identify the risks of deforestation. With this information, we will prevent sourcing from deforested regions and support the reforestation of deforested areas.
 
 
 
  Agroforestry on cocoa farms ca increase long-term farm productivity and reduce the need for farmers to encroach protected areas. We will promote agroforestry on cocoa farms by providing farmers with suitable shade trees to grow amongst their cocoa crops and provide them with training on agroforestry. Agroforestry can also help farmers reduce their reliance on cocoa crops as a source of income by diversifying income sources to grow other crops, especially during low crop season.
 
 
 

Providing Responsible Cocoa

Cocoa can be defined as responsible when it results from a sustainable cocoa supply chain, from the production of beans to customers. In a sustainable supply chain, the cocoa beans we source and the cocoa products we produce comply with all the sustainability frameworks that we have set forth. By achieving our target of 100% sustainable cocoa by 2030, GCB is ensuring the provision of responsible cocoa to the industry.
 
  We will implement a digital management and traceability system, which will allow us to map and trace the flow of cocoa beans in our supply chain. The system will include mapping farms, tracing the physical flow of beans from farms to our warehouses, and a database containing the farmers’ and their families’ details, as well as information about certification audits.
We will implement a digital management and traceability system, which will allow us to map and trace the flow of cocoa beans in our supply chain. The system will include mapping farms, tracing the physical flow of beans from farms to our warehouses, and a database containing the farmers’ and their families’ details, as well as information about certification audits.