Image Credit - The Grocer

Sustainable chocolate how to choose

August 23,2024

Environment And Conservation

How UK Chocolate Giants Measure Up: A Sustainability Report Card

The UK consistently ranks among the world's top chocolate-loving nations. The average British resident devours about 8.1kg of chocolate yearly, with over half the adult population treating themselves at least once a week.

Predictions point to a whopping 80-90 million Easter eggs being snapped up this year. Unfortunately, this comes at a time when Easter chocolate prices in the UK have soared by 12.6%. Climate change impacts on global cocoa supplies, coupled with inflation-driven cost pressures on farmers, are the primary culprits behind this price hike.

However, the cost issue cuts deeper. Retailers actually pocket far more value (41.6%) and profit (9.5%) from each chocolate bar sold than the farmers, who see little value (8.8%) and practically zero profit.

Increasingly, British shoppers want proof that their favourite treats are ethically made. They look to businesses for assurances of fair labour practices, deforestation prevention, and environmentally conscious production methods.

Holding Chocolate Companies to Account

Now in its fifth edition, the Chocolate Scorecard offers a critical look at just how sustainable our chocolate supply chains really are. This collaborative project, spearheaded by Be Slavery Free, the Open University, two Australian universities, and numerous sustainability groups, scrutinizes the practices of major chocolate companies.

The scorecard uses six key criteria to rate 63 companies: traceability and transparency, living income, child and forced labour, climate change and deforestation, agroforestry, and the use of agrochemicals. An upcoming version of the report will also include gender equality as a seventh evaluative factor.

Companies leading the way in sustainable policies and practices earn a coveted green rating (or "egg"). Those making progress or in need of improvement receive yellow and orange ratings respectively. A red rating flags companies lagging behind, while a grey rating indicates a lack of transparency.

This year, German brand Ritter Sport was recognized with a Good Egg Award in the Medium and Large Company category. This highlights that even major players can significantly elevate their sustainability efforts. Meanwhile, Dutch brand Tony's Chocolonely received a special achievement award for its ongoing commitment to ethical practices, reflected in their consistent green rating.

Giants like Mars Wrigley (makers of Mars bars, Snickers, Milky Way, and Twix), Nestlé (producer of Kit Kat and Smarties), Hershey's, and Ferrero (maker of Nutella, Kinder, and Ferrero Rocher) were all awarded yellow ratings. Lindt and Mondelēz, the latter known for Cadbury, Toblerone, and Green & Black's, received an orange rating, indicating space for improvement.

A Booming Chocolate Industry

The global chocolate confectionery market is on track to reach a staggering US$254 billion (£202 billion) in revenue this year. The UK market alone generates an estimated US$18.28 billion (£14.5 billion), and it's projected to grow further by nearly 0.9% by 2025.

The United Nations Guiding Principles on Business and Human Rights place a clear responsibility on corporations. Companies must address any adverse human rights impacts within their own operations or their supply chains. Simply shifting the burden onto another part of the chain isn't acceptable.

Since chocolate is often an impulse buy, retailers capitalize on this by placing treats near checkouts. Profit margins for sweets are high, and they can significantly impact a retailer's bottom line. Therefore, whenever a retailer stocks chocolate, they have an obligation to examine human rights and environmental issues connected to its production.

Retailers Lagging Behind on Sustainable Sourcing

Sadly, not a single retailer scored a green rating worldwide on the most recent Chocolate Scorecard. Furthermore, several major UK retailers didn't participate in this year's survey. Co-op and Lidl managed to secure yellow ratings. However, Marks & Spencer's decision not to participate raises questions about their level of transparency and commitment to accountability.

Worryingly, many retailers seem to know very little about their own supply chains. They may set standards for their suppliers, encouraging them to aim for chocolate certification. However, robust verification systems are often lacking. And when suppliers fall short, the burden tends to fall unfairly back on the farmers themselves.

Global retail giants, often headquartered in the US, have enormous power to transform the industry for the better. Unfortunately, the latest scorecard awarded all US retailers a "grey" rating for non-participation. This includes major revenue generators like Walmart, Costco, and Kroger.

One likely reason the US chocolate industry trails behind is the lack of regulations targeting deforestation. The European Union, in contrast, has enforced regulations to guarantee that commodities like cocoa imported into the EU don't contribute to deforestation. Similarly, the UK Environment Act 2021 legally requires companies to perform rigorous checks on key forest-risk commodities. The US has introduced the Forest Act, but it's waiting to be officially ratified into law.

Conscientious Consumer Choices Matter

Retailers must realize that consumer demand for ethically sourced, sustainable products, including chocolate, is on the rise. Integrating ethically produced cocoa must become a core part of their corporate responsibility strategy. By collaborating closely with their suppliers and manufacturers, retailers must carefully scrutinize every step of their cocoa supply chains. Only then can they give confident assurances that their products are free from the taint of human rights abuses and environmental damage.

Consumers can use the fifth edition of the Chocolate Scorecard to make informed, sustainable buying choices. It allows them to weigh up the brands they support and the retailers they choose to do business with. Empowering consumers with reliable information is key to driving positive change.

Sustainable chocolateImage Credit - TIME

A Call for Retailer Accountability

The chocolate industry enjoys immense growth and popularity. Yet, profits are unevenly tilted in favour of corporations and away from the farmers growing the raw cocoa. The Chocolate Scorecard shines a spotlight on sustainability shortcomings throughout the supply chain. While some companies are clearly making efforts, others still have significant room for improvement.

Retailers sit in a powerful position. They can work to eradicate unacceptable practices like deforestation and the use of child or forced labor. They can insist that farmers are fairly compensated for their efforts. Additionally, retailers have the choice to stock and promote brands recognized for their ethical practices.

Consumers, too, play a vital role. Opting for fair trade, ethically certified chocolates and shopping at retailers with stronger sustainability credentials sends a clear message. It demonstrates a rejection of chocolate tainted by exploitation. Collectively, retailers and consumers have the power to reshape the chocolate industry into a fairer, more sustainable, and more transparent force for good.

The Global Demand for Sustainable Chocolate

We live in a world that's increasingly chocolate-obsessed. Each year, the chocolate confectionery industry generates billions in revenue. This growth trajectory seems unstoppable, fueled by new product innovations, enticing marketing, and an expanding appetite for chocolate treats among consumers worldwide.

The cocoa bean, the essential ingredient behind all our chocolate delights, primarily originates from West African countries like Côte d'Ivoire and Ghana. These two nations alone supply a staggering three-quarters of the world's cocoa. However, farmers in these regions often confront low wages, instability, and limited access to resources. Many fall below the poverty line despite their essential role in the chocolate supply chain. This sharp contrast between farmers' struggles and the massive profits enjoyed by major chocolate corporations highlights deep inequalities within the industry.

The Cocoa Life Program: A Case Study

One notable initiative aimed at addressing these challenges is the Cocoa Life program, launched by Mondelēz International (the company behind brands like Cadbury and Milka). This program boasts ambitious goals like empowering cocoa farmers, protecting the environment, and improving living conditions within cocoa-growing communities.

However, critics point out that while such programs may offer some localized benefits, they often fail to tackle systemic issues. For example, they might not address the underlying problem of low prices paid to cocoa farmers. Consequently, these initiatives have a limited ability to truly transform the lives of those at the very beginning of the chocolate supply chain.

Fairtrade Certification: Setting a Higher Standard

Fairtrade offers an alternative model that places emphasis on ensuring a fair deal for farmers. Products carrying the Fairtrade mark meet rigorous standards across areas like labour rights, environmental sustainability, and minimum pricing. Critically, Fairtrade guarantees that farmers receive a minimum price, providing a crucial safety net against fluctuating market prices. In addition, farmers receive an extra sum known as the Fairtrade Premium, which communities can collectively decide how to invest for their own benefit – whether it's building schools, healthcare facilities, or agricultural improvements.

While Fairtrade has undoubtedly improved the conditions for many farmers, it's important to recognize that it's not a perfect solution. Smaller farmers may find it difficult to afford the certification process itself. Additionally, the guaranteed minimum price, while helpful, might still be a far cry from a true living wage.

Sustainable Chocolate: Is Direct Trade a More Equitable Approach?

An alternative option gaining popularity is direct trade. This involves chocolate makers purchasing cocoa beans directly from specific farmers or farmer cooperatives. Direct trade champions transparency and aims to build closer, fairer relationships within the supply chain. It often results in farmers receiving higher prices beyond Fairtrade minimums, allowing them to invest in the future of their farms and communities.

However, finding reliable buyers and establishing trust can be a challenge, especially for smaller-scale farmers. Additionally, with fewer formal standards, the onus often falls on chocolate companies to self-regulate to ensure ethical practices are upheld.

The Need for Collaboration

No single initiative or certification scheme holds all the answers to creating a truly sustainable and ethical chocolate industry. Instead, collaboration will likely be key. This means cooperation between governments, retailers, chocolate companies, certification bodies, and farmers themselves. Only through combined efforts can we build a future where enjoying a guilt-free bar of chocolate becomes the norm.

Sustainable Chocolate: Addressing the Environmental Consequences of Cocoa Production

Chocolate's dark side extends beyond human rights concerns. Cocoa production has a significant environmental footprint. Traditionally, cocoa trees were grown under the shade of larger rainforest trees, contributing to diverse ecosystems. However, modern cocoa farming often favors intensive methods that prioritize high yields.

This has led to widespread deforestation, particularly in West Africa. Vast tracts of forest have been cleared to make way for sun-tolerant cocoa plants. This deforestation contributes to biodiversity loss, soil degradation, and increased carbon emissions – all of which magnify the climate crisis.

Agroforestry offers a potential solution. This approach interweaves cocoa trees with other crops and trees, creating a more balanced and sustainable growing environment. Agroforestry can help protect biodiversity, improve soil health, and provide farmers with additional income sources.

Pesticides and fertilizers commonly used in cocoa farming can also contaminate waterways and harm beneficial insects. To reduce the environmental impact, more farmers are turning to organic cocoa production methods.

The Power of Consumer Choice

As consumers, we can make a real difference by opting for chocolate brands that prioritize sustainability. Look for certifications like Fairtrade or Rainforest Alliance on the label. These signify that the chocolate has been produced with greater consideration for social and environmental concerns. Many chocolate makers also advertise their commitment to sourcing deforestation-free cocoa, offering consumers a more responsible choice.

If available in your area, consider seeking out bean-to-bar chocolate makers. These smaller-scale producers often have direct relationships with their cocoa suppliers and are more likely to champion ethical and sustainable practices. Choosing local or artisan chocolate is another way to shorten the supply chain and potentially make more informed choices.

Of course, enjoying chocolate in moderation is also beneficial from an environmental perspective. Savoring smaller amounts of high-quality chocolate can be a way to indulge with less impact on your own health and the health of the planet.

Consumer Pressure Can Create Change

As consumers demand better practices, retailers and chocolate manufacturers are forced to listen. Campaigns and petitions highlighting sustainability issues can be powerful tools, placing pressure on major companies to clean up their supply chains.

Social media has also become an important platform for raising awareness and mobilizing public opinion. Sharing reliable information, supporting ethical brands, and calling out unsustainable practices can all contribute to making a difference. By engaging in active dialogue through social media, consumers have a louder voice than ever before.

Sustainable chocolateImage Credit: Amazon

The Role of Government Regulation

While consumer action is crucial, government regulation also plays a critical role. The EU's deforestation regulations are a positive step, setting a precedent for other countries and regions. Legislation mandating fair prices paid to cocoa farmers and more stringent environmental standards would help level the playing field within the industry.

Governments can also incentivize  sustainable cocoa production through financial support or tax breaks. Furthermore, they can encourage greater transparency through mandatory reporting requirements for companies involved in the cocoa trade. Ultimately, a combination of government intervention, consumer activism, and corporate responsibility holds the key to transforming the chocolate industry.

A Sweet Future: Creating a Fairer, More Sustainable Chocolate Industry

Choosing chocolate isn't always a straightforward decision. The sheer variety of brands and options available can feel overwhelming. Yet, behind the glossy packaging and tantalizing adverts lies a complex reality. The chocolate industry rests on a fragile web of interconnected environmental and social concerns. From the welfare of cocoa farmers to the protection of vital rainforests, the choices we make as consumers matter.

The good news is that positive change is possible. A growing number of chocolate companies are stepping up and recognizing the need for more responsible practices. Certification schemes, such as Fairtrade and Rainforest Alliance, offer consumers some guidance. Additionally, consumer demand and a willingness to pay a little more for ethically produced chocolate drives innovation within the sector.

However, true sustainability throughout the supply chain will take more than individual action alone. Retailers wield significant influence, and their commitment to stocking ethically sourced and transparently produced chocolate is essential. Government regulation has a role to play as well. Legislation that addresses price inequalities for cocoa farmers, mandates deforestation-free sourcing, and requires clear reporting from companies can create a framework for better industry standards.

Ultimately, achieving a chocolate industry that is both delicious and ethical requires a multi-pronged approach. It demands collaboration between farmers, chocolate companies, retailers, governments, and the consumers themselves.

Sustainable Chocolate: What Can You Do to Make a Difference?

Seek out certifications: Look for Fairtrade, Rainforest Alliance, or other credible sustainability certifications on chocolate products.

Support brands with a proven commitment: Research companies and their sourcing practices. Choose those that prioritize ethical and environmentally friendly practices.

Explore bean-to-bar and artisanal chocolate: Opt for smaller-scale producers when possible, as they often have a more direct and transparent relationship with their suppliers.

Make your voice heard: Support campaigns advocating for greater sustainability in the chocolate industry. Engage with brands and retailers on social media and let them know you care.

Enjoy in moderation: Savoring smaller quantities of high-quality chocolate can be a mindful way to indulge while reducing your environmental impact.

Remember, every time you purchase a bar of chocolate, you are casting a vote. Choose those companies that align with the kind of chocolate industry you want to see - one that's socially just, environmentally conscious, and focused on delivering treats free from guilt. Together, we can shape a sweeter future for chocolate, both for the farmers who grow it and for the planet we all share.

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