Language Sustainability Progress Report 2018 - 2019 Cocoa and Chocolate Contents Language Table of Contents Published May 2020 Introduction Community Consumer Responsible 3 President’s welcome Wellbeing Confidence Business 4 Our approach 12 Progress at a glance 18 Progress at a glance 24 Operating in a safe, responsible and 13 Spotlight: A localized 19 Spotlight: Connecting 5 Taking cocoa to sustainable way the cloud approach to tackle child data to measure and labor in Indonesia report on supply chain 7 Impact at a glance sustainability Farmer Protect Transformation, About Livelihoods our Planet together 26 Cargill 9 Progress at a glance 15 Progress at a glance 21 Progress at a glance 28 Cocoa and Chocolate 10 Spotlight: Beyond 16 Spotlight: From 22 Spotlight: Coop 29 This report cocoa: taking a holistic satellites to farmers: a Academy 2.0: look at farmer resilience multi-layered approach Strengthening more against deforestation cooperatives with management tools Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 2 Introduction Language Dear stakeholders The world is faced with extraordinary chal- Digital technology enables us to provide our customers Transparency is imperative and we are committed to con- lenges. The ongoing COVID-19 pandemic is with fast and transparent sustainability data, helping them tinuously improve and refine how we show the progress measure and report the impact they achieve through the we make. This report focuses on progress both towards testing our resilience as a global community. Cargill Cocoa Promise. As of this year, half of the cocoa our goals and against the data of the previous year; it high- This reminds us how interconnected our world in our global direct supply chain is traceable from farm to lights many great accomplishments. We reached more than is, and how important it is to look out for factory, with the help of barcoded cocoa bags and digital 210,000 farmers with training to strengthen their capacity those who need it most: the cocoa-growing Cooperative Management Systems. Today, 72 percent of on Good Agricultural Practices, we scaled one-on-one farmers are reached with GPS polygon mapping. In combi- coaching to farmers in all five sourcing countries, and we communities. Cargill is dedicated to creating nation with satellite imagery, this enables us to effectively reached a total of 2,491 communities with tailored commu- lasting benefits for cocoa farmers, their fami- monitor deforestation risks. On our website, we started to nity programs. This would not have been possible without lies and communities, and empowering them disclose all farmer organizations in our direct sourcing net- the ongoing dedication of our customers, colleagues, NGOs, to thrive. This is more relevant than ever. work in Ghana and Côte d’Ivoire, with the other countries to governments and, above all else, the farmers and farmer follow. For these technologies to generate lasting impact for organizations. I want to thank you all for being such valuable farmers, the partnership and actions by all actors are crucial partners on this journey. There is a lot more to be done, but Increasingly I see how embedding technologies and part- levers to scale up. I am confident that if we continue to connect our efforts, we can achieve lasting positive impact, together. nerships in the sector enable us to continuously drive value Several noteworthy steps are taking place in the industry. for farmers, customers and the sector at large. With the We have seen the governments of Ghana and Côte d’Ivoire Sincerely, help of mobile applications, we provide farmers with more be a force for sustainability with initiatives like the Living tailored support, information and training, so they can Income Differential and exploring the setting of sub-regional prosper while considering the environment. These appli- standards. These efforts contribute towards standards that cations also deliver fair and secure electronic payments to meet our expectations and those of our customers for a farmers, as well as swift, effective communications when sustainable cocoa sector. Year on year, I see the network immediate issues arise, for instance, on protective measures of stakeholders that are willing to drive change collabora- Harold Poelma against COVID-19. tively expanding and deepening its impact. When we align President Cargill Cocoa and Chocolate on interventions, make data openly available and measure progress together, I am positive we will achieve more trans- formational results. Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 3 Introduction Language Connected for More: our approach towards a thriving cocoa sector Our vision we continuously monitor, evaluate and Farmer Community Protect report our impact. This also includes how Livelihoods Wellbeing our Planet At Cargill we take the responsibility and the we source other chocolate ingredients, run opportunity to act across the cocoa sector, GOAL GOAL GOAL our factories safely, decrease our environ- We will champion We will enhance the safety We will promote connecting different stakeholders to drive mental impact and govern our business Our goals professional cocoa farming and wellbeing of children environmental best lasting change. We aim to connect every practices, to strengthen the and families in cocoa practices in our business with integrity. socio-economic resilience farming areas and across our supply chain dot in the cocoa supply chain for maximum of cocoa farmers and transparency using cutting-edge digital their communities TARGET TARGET 1 million community Zero deforestation in the technologies where possible. We take a Our principles TARGET members benefiting from cocoa supply chain holistic look at the sustainability of cocoa 1 million farmers benefiting the services of the Cargill To reach our goals, every initiative is guided Read more and work with our partners towards a from the services of the Cocoa Promise by the following principles: Cargill Cocoa Promise common cause: a thriving cocoa sector for Read more generations to come. Transparency and Assurance: We build a Read more supportive market ecosystem by promoting supply chain, financial and impact trans- Our commitment parency, including third-party assurance In 2012, we launched the Cargill Cocoa through certification programs. Promise. This is our commitment to accel- Evidence-based: We continuously learn and erate progress toward a transparent global adjust to improve the impact of our work and GOAL TARGET Read more cocoa supply chain, to enable cocoa better equip all of our partners for a more We will help consumers 100% farm to factory Consumer around the world choose traceability of our cocoa beans farmers and their communities to achieve sustainable future. sustainable cocoa and 100% chocolate ingredients better incomes and living standards sus- Confidence chocolate products Scalable: We design programs that are sourced in line with our tainably, and to deliver a sustainable supply with confidence supplier code of conduct of cocoa and chocolate products. This adaptable across the local contexts of differ- aspiration is reinforced by our five 2030 ent sourcing regions. GOAL We will use the power of partnerships Sustainability Goals which are aligned with Technology-driven: We harness the power Transformation, to accelerate and magnify our efforts to Read more the UN Sustainable Development Goals. of technology to rapidly and effectively together achieve a level of sector transformation that cannot be accomplished alone Together with our Theory of Change, these deploy our programs at scale. goals provide a framework through which Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 4 Introduction Language Taking cocoa to the cloud: how digitization benefits all, from farmers to consumers Digital transformation is driving Farmers receive more change in every business sector, tailored support and the cocoa value chain is no Digitization in cocoa-growing countries is exception. We act across the increasing at a fast pace, providing a signifi- cant opportunity to accelerate change in the More communities entire supply chain, connecting are reached cocoa sector. Smallholder farmers around stakeholders at many different the world are increasingly getting access levels. By leveraging the power to web or mobile applications. Mobile Farmers receive of technology, we aim to information services for farmers can sig- tailored support spearhead the sector’s journey nificantly transform the way we, and others in the sector, can interact with farmers and toward greater transparency farmer organizations. Through mobile appli- Landscapes are better protected and create lasting impact for cations, farm developments are captured all stakeholders, especially in continuously, so we can measure the effects A digital cocoa-growing communities. and tailor our services. They also provide cocoa supply a means for two-way communication with farmers, providing them with customized and actual insights on climate and market fluctuations as well as on protective mea- sures against COVID-19. These solutions are becoming increasingly integrated, pro- Customers get viding a complete interface where farmers direct insights can manage the progress of their business, Sector partnerships combine data costs and potential loans. Voice messaging is effective here, too, as it can reach farm- ers in a variety of local languages, while mobile banking provides farmers with fair Cargill |