Tackling Deforestation Progress Report 2020 Contents

Tackling Deforestation Progress Report 2020 Contents We are committed to ending deforestation in our cocoa supply chain, and preserving and restoring existing forests Photography captured on location by Darrell High, Head of the Nestlé Cocoa Plan. Cover photo: a prominent Kplé tree shading a Nestlé Cocoa Plan field near Duékoué, Côte d’Ivoire. Foreword Identify the challenges, engage Cocoa is mainly a smallholder crop in to improve financial inclusion of rural West Africa. Consequently, any solution communities. Finally, we are engaging with others and measure progress. to tackle deforestation needs to take into with communities on the topic of forest account farmers’ livelihoods – effectively protection through awareness-raising Those are the words we began our providing farmers with viable alternatives activities, and through the financing to grow the same amount of, or even more, and distribution of more efficient, 2019 Tackling Child Labor report cocoa on less land. As we forge ahead less polluting cookstoves. with our efforts to embed sustainability Addressing deforestation and forest with and are as relevant for our in the cocoa sector, we are aware that degradation is not our only focus. we need to balance out the need to protect work on addressing deforestation We are also working on transforming the environment with the need to provide our supply chains – making them more cocoa farming communities with opportunities and forest degradation in cocoa. climate-friendly and resilient – to help for social and economic development. us achieve our 2050 net-zero pledge. Cocoa grown illegally in protected areas Since publishing our Action Plan in As part of this work, we are deploying has no place in our supply chains. We are March 2019, we have recorded good nature-based solutions, like reforestation, continuing our efforts to stop deforestation progress across all the main objectives to absorb more carbon, improve soil and the destruction of other natural habitats we had set out to achieve. We have made health and enhance biodiversity. We will within our agricultural commodity supply good headway in mapping all the farms continue to work with the governments chains, including those where cocoa is that we source from, a critical step of Côte d’Ivoire and Ghana, our partners grown and harvested. in ensuring the cocoa we buy doesn’t and other stakeholders to help protect originate from protected areas. We have and restore protected forests and promote Addressing deforestation in cocoa supply scaled up the distribution of shade trees sustainable cocoa and thriving communities. chains is complex and requires a concerted for planting on cocoa farms: this helps approach. That’s why we joined the Cocoa protect cocoa plants to cope with drier, & Forests Initiative (CFI) when it launched hotter conditions, making cocoa farms in 2017. CFI brings together all the relevant more climate-resilient. We are also continuing stakeholders – cocoa and chocolate industry, our efforts to improve livelihoods in cocoa governments of producing countries, farming communities, through trainings cooperatives, farmers and rural communities on Good Agricultural Practices, income – who need to come together to solve diversification activities and the creation this multifaceted issue. of Village Savings and Loans Associations ALEXANDER VON MAILLOT SVP, GLOBAL HEAD CONFECTIONERY & ICE CREAM STRATEGIC BUSINESS UNIT, NESTLÉ SA Key facts & figures Côte d’Ivoire Ghana Ambition 2018-2019 Status Ambition 2018-2019 Status by 2022 by 2022 1.1 Mapping farmers 1.1 Mapping farmers % mapped 100% 75% 75% % mapped 100% 80% 80% farmers farmers Total number Approx. 96 548 Total number Approx. 23 037 of farmers 100 000 of farmers 25 000 Forest protection Mapped Equal to 72 784 Mapped Equal to 18 430 farmers* above and restoration farmers* above 9.1 Forest tree 2 600 000 392 018 15% 10.1 Forest tree 260 000 169 508 65% distribution distribution 11.3 Training farmers 80 000 68 965 86% 11.1 Cocoa tree 2 600 000 1 613 715 62% distribution 15.1 Community 400 294 74% 16.1 Community 100 0 0% Sustainable production consultations consultations and farmers’ livelihoods 16.1 Communities with 10 0 0% 18.1 Communities with 9 0 0% forest restoration forest restoration and protection and protection program program, agriculture intensification, Social inclusion and gender focus community engagement n. KPI reference - see pg. 16-17 for full list of KPI details In progress Delayed * Our objective was to complete this by end of 2019. This will now be completed by October 2020. What is the Cocoa What are the key commitments & Forests Initiative? in the Cocoa & Forests Initiative? The Governments of Côte d’Ivoire and sharing of up-to-date boundary and Ghana and the world’s leading cocoa maps of protected areas. and chocolate companies signed landmark In March 2019, CFI companies released initial Cocoa & Forests Initiative activities proceed from agreements in November 2017 to end action plans for 2018-2022. These initial plans three priorities: (1) forest protection and restoration, deforestation and promote forest restoration detail how the private sector will deliver the (2) sustainable production and farmers’ livelihoods, and protection in the cocoa supply chain. commitments spelled out in the Frameworks and (3) community engagement and social inclusion. This public-private partnership – called for Action. Each company explained how they the Cocoa & Forests Initiative (CFI) – will support the Framework objectives, based has been organized by the World Cocoa on their role in the supply chain, their strategic Foundation (WCF), IDH - the Sustainable priorities, and their cocoa sustainability goals. The first priority is the protection and from farm to the first purchase point The final area of focus is strong community Trade Initiative, and The Prince of Wales’ WCF published a summary of the initial action restoration of forests that have been for their own purchases of cocoa, and engagement and social inclusion, with International Sustainability Unit (ISU), plans for the cocoa and chocolate industry degraded. To this end, the governments to work with governments to ensure a particular focus on women and youth. in partnership with the Governments (Côte d’Ivoire, Ghana). and companies have pledged no further an effective national framework for The governments and companies have of Côte d’Ivoire and Ghana. The Prince On the heels of the 2020 International Day of conversion of forest land for cocoa traceability encompassing all traders committed to full and effective consultation of Wales launched CFI in March 2017 Forests, CFI companies and the governments production and have committed to in the supply chain. The companies will and participation of cocoa farmers in the and reviewed implementation progress of Côte d’Ivoire and Ghana reported on the the phased elimination of illegal cocoa similarly share information with the design and implementation of key actions, in November 2018. first two years of implementation. Companies production and sourcing in protected areas. national satellite monitoring platforms and promotion of community-based (in development) to effectively monitor management models for forest protection The Frameworks for Action for Côte are publishing individual reports on progress Both countries are introducing progress on CFI, as well as proactively and restoration. The governments have d’Ivoire and Ghana define core commitments, and outcomes related to the implementation a differentiated approach for improved address threats of new deforestation. adopted social and environmental verifiable actions, and timebound targets of their specific actions. The following is management of forest reserves, based safeguards are assessing and mitigating required for a deforestation-free and the aggregate report of company actions. on the level of degradation of forests. The next critical priority is sustainable forest-positive supply chain. the social impacts and risks of any proposed CFI has been supported by several global In 2019, the government of Côte d’Ivoire agricultural production and increased land-use changes on affected communities. The Governments of Côte d’Ivoire and development partners, including the Dutch adopted and published a new forest code farmer incomes. These are essential Ghana establish national strategies, policy Ministry of Foreign Affairs, the German which, among other things, put forth pre-requisites for reducing pressure The set of public-private actions represent environments, and governance structures Federal Ministry of Economic Cooperation policies for the promotion of cocoa for agricultural encroachment into forests unprecedented commitments on forest for CFI implementation. They ensure and Development, the Global Environment agroforestry to restore degraded land, and strengthening the resilience of cocoa protection and restoration, and sustainable that CFI is linked to similar initiatives Facility, the Green Commodities Program improve forest cover, and promote farmers to climate change. cocoa production and farmers’ livelihoods. sustainable livelihoods and agriculture These combined actions, which are aligned with other commodities, and fully aligned of the United Nations Development Program, The governments and companies are in the classified forests and rural zones. with the Paris Climate Agreement, will play with the national Reducing Emissions the International Finance Corporation, accelerating investment in long-term The Ivorian government is

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