Our commitment and case for action 

We are committed to sourcing sustainably. For us, ‘sustainable sourcing’ means ensuring we know where our ingredients are coming from, our sourcing standards and policies are upheld, and our suppliers are continuously addressing the environmental and human rights impacts of our products.

At COP26 in November 2021, we committed to ensuring our own brand product supply chains would be Deforestation and Conversion Free (DCF) by 2025, with a cut-off date of 2020. This includes our cocoa supply chains, which is why we have committed to sourcing 100% sustainable cocoa in all of our own-brand products with cocoa as an ingredient by 2025. We have also committed to increasing our volumes of fully traceable cocoa. 

Our progress 2023/24 

As part of our Plan For Better, we are committed to reporting transparently on our performance. Currently, we already source 100% more sustainability produced cocoa for 83%* of our block chocolate range. This year we have gone beyond just chocolate to strengthen our minimum sourcing standards for all of own brand products containing any cocoa ingredients. We have also completed supply chain mapping of our cocoa sourcing across our whole business. 

We report on our total cocoa footprint for 2023 below.
2023 Own Supply Performance:  

• Total cocoa footprint: 5,734 tonnes 
• % from certified sources: 47.2%
• % from uncertified sources: 52.8% 

_{*based of number of SKUs in our block range for which Rainforest Alliance Certified cocoa is sourced as of March 2024}

Supplier and trader engagement 

Whilst setting clear expectations for our own products is an important first step, we don’t think this is sufficient alone. We want to work with our suppliers and the traders they source from to ensure that they have adequate human rights and environmental due diligence processes in their operations and in their supply chains. We know this will be achieved progressively, but by working with other retailers and manufacturers we believe we can send a clear market signal to bring sector-wide change.

As well as engagement of our direct own-brand suppliers, we are engaging with the cocoa traders and importers in our supply chains. It is critical we work together to improve traceability in cocoa supply chains and encourage better agricultural practices by cocoa farmers.  

As members of the Retailer Cocoa Collaboration, led by 3keel, we annually engage with the top 7 cocoa traders. A summary of the cocoa trader performance in 2023 is below.

Retailer Cocoa Collaboration 

As retailers, our experience working with cocoa in our supply chain has taught us some valuable lessons:  

• Collaboration provides an effective and efficient way to support change and grow our leverage;  
• Harmonised approaches by retailers are preferred by our supply chain partners;  
• There are key levers for us to drive change in our typically long and complicated commodity supply chains. 
  - Minimum sourcing requirements
  - Responsible purchasing practices
  - On the ground investments to address salient risk
  - Industry wide collaboration and advocacy 
  
  

Key findings from the 2023 RCC assessment:

1. Traceability has jumped forward in just a year to meet EUDR requirements. Predominantly in direct supply chains, but significant shift has also seen in indirect supply chains. 
 
2. Certification is at an all-time high. Rainforest Alliance is the most prevalent independent scheme. Traders have significant volumes falling under their own proprietary sustainability schemes too. 

3. Deforestation still a significant risk, with land conversion not being addressed alongside deforestation. Whilst traders now have a deforestation commitment and policies in place, these are nearly always limited in scope by geography or exclusion of land conversion. 

4. Child labour issues are not being sufficiently identified, remediated or prevented. A serious human rights issue pervasive in West African sourcing geographies is not being significantly addressed, with low levels of Cjild Labour Monitoring and Remediation Systems in all trader supply chains.  

5. Poverty and lack of living income still significant issues. Many traders still unable to report on proportion of farmers receiving a living income, and those that are often report disappointing progress. 

6. Climate change progress is pushing forward. Significant gains have been made by traders in assessing carbon in supply chains and setting climate targets. 

7. Indirect supply chains are hot spots for environmental and human rights issues. Nearly all commitments and initiatives cover just the direct portion of a traders supply chain, leaving opportunity for unchecked human rights abuses and deforestation risks in a significant proportion of supply chains. 

Industry collaboration 

We are part of the Cocoa & Forests Initiative, a public private partnership driven by the World Cocoa Foundation (WCF); IDH, the Sustainable Trade Initiative; and the Governments of Côte d’Ivoire and Ghana. 36 leading cocoa and chocolate companies, representing 85% of global cocoa usage, have joined together to end deforestation and restore forest areas. Our combined actions play a crucial role in protecting and restoring biodiversity, sequestering carbon stocks in West African forests, and addressing climate change.   

The Cocoa & Forests Initiative has committed to:

• Protect and restore forests
• Promote sustainable cocoa production and farmers’ livelihoods
• Engage communities and boost social inclusion

For more information see our CFI Action Plan and Progress Report 2023.

_{All photos provided by Rainforest Alliance}