Achieving Sustainability

in the Cocoa Sector

European Commission Panel

DEVCO Infopoint Event

19 December 2019

2. Align legislative, sourcing and financial powers of companies and governments to unlock large scale implementation

1. Develop cost effective business models with companies for sustainable

production & trade

3. Trigger private Investments in new sustainable

business and governance models for large scale adoption

and replication

IDH: Market based solutions for reaching SDGs

Global IDH: Active in 12 sectors and 12 landscapes

Agri-CommodityBusiness Unit

Coffee/Tea/Cocoa

IDH Strategy for Achieving Sustainability in Cocoa Sector

Mitigation of Deforestation

Eliminating deforestation from the cocoa supply chain by a common vision and

joint framework of action

Enabling green growth to find a balance between forest, agriculture and

people.

Preventing and eliminating cocoa

related deforestation in Cameroon with a public-private-civil society partnership

Promoting sustainabledevelopment of theCameroonian cocoa

sector

Improve Living Income

Support bankability of cocoa cooperatives

and farmers, enabling them to become more

professional and to invest in their farms

Designing and validating effective models to improve nutrition of cocoa farming families

Improving cocoa farmers’ resilience

through integrated soil fertility management

Build Market Demand

Supports small volume users of cocoa to get

involved in sustainability projects at the origins of their

cocoa supply chain

Improving living conditions of cocoa

farmers, their families and their environment

that export to the Belgian market

Improve the livelihoods of cocoa farming families and

the natural environment

important for the Dutch cocoa industry

Building Market Demand

Commitments of Beyond Chocolate• Ambitious targets for a sustainable cocoa and chocolate sector

• By 2025, all the chocolate produced and/or sold in Belgium

shall comply with a relevant certification standard or is

covered by a corporate sustainability scheme

• By 2025, all partners shall comply

with applicable agreements of the

Cocoa & Forests Initiative

• By 2030 deforestation due to

cocoa growing for the Belgian

chocolate sector has ended.

• By 2030, all partners The partners jointly undertake to ensure that cocoa growers that supply to the Belgian market will earn at least a

living income,

• CERTIFICATION • DEFORESTATION • LIVING INCOME

Draft commitments of Dutch Initiative on Sustainable Cocoa (DISCO)

ScopeAll cocoa and cocoa products imported into the Netherlands

Impact areas• Farming families that supply cocoa to the Netherlands and have cocoa

farming as their main business of choice will earn a living income by (2030)

• Cocoa-related deforestation and forest degradation in producing regions where the Dutch cocoa industry and their trade partners are sourcing from will have ended from their direct supply chains and also from their indirect supply chains (2025/2030)

• End all forms of child labour and forced labour in the cocoa production regions important for the Dutch cocoa industry by (2025)

Mitigate Deforestation

IDH’s Approach to Deforestation

AT NATIONAL LEVELThe Cocoa & Forests Initiative (Ghana, Cote d’ Ivoire Colombia) and

Roadmap to Deforestation-Free Cocoa (Cameroon)

Public-Private-Civil Society Platforms in cocoa producing countries that define and support implementation of commitments to deforestation-free cocoa

AT LANDSCAPE LEVELLandscape programs that focus on sustainable production, forest

protection & restoration and community inclusion

Create areas where agricultural products are grown sustainably (Production), forests and natural resources are safeguarded (Protection), and communities thrive (Inclusion)

Pilot, at landscape level, the innovative solutions designed at a national level through the Cocoa & Forests Initiative and / Roadmap.

An active commitment of leading cocoa-producing governments and

chocolate and cocoa companies to end deforestation and forest

degradation in the cocoa supply chain.

Represents unprecedented commitments on forest protection and

restoration, sustainable cocoa production and farmer livelihoods.

Initiated in 2017 in Côte d’Ivoire and Ghana,

which jointly represent 60-70% of the world’s

annual supply of cocoa;

Expanded to Colombia in 2018, where cocoa was

identified as a priority for Colombian agricultural

growth, both for domestic consumption and

international export.

Living Income

Pathways to Enabling Living Income

Increase Profitability

Facilitate Diversification

Lower Cost of Production

and Expenses

Professionalization of farms & cooperatives

(FCIP, CocoaSoils)

Gender Transformation Mainstreamed

Integrated Food & Nutrition Security (CNIP, CocoaSoils)

Climate Resilient Practices

(ISLA/CFI/Landscape)

Price(farm-gate + premiums)

Farm and Cooperative Investment Program Cote d’Ivoire

14

Facilitating financial products and services

engineering

Creating a Conducive financial and

regulatory environment

Shaping professional cooperatives and

entrepreneur-farmers

Aims for greaterprofessionalism of cooperatives and producers and their ability to invest in their farms and households, as well asimproved management of their organizations.

Both men and women in farmer households and cooperatives have increased access to finance for sustainable investments in farm and non-farm activities

300 professional Cooperatives and 150,000 entrepreneurial farmers will access to finance at affordable costs and conditions, leading to increased industry interest to invest in farmers and cooperatives and sustainable business models that can be replicated and scaled

Enabling environment for farmers to be entrepreneurial (and receive & use finance) and improved sector regulations and data transparency

Objective

Expected

changes

Approach

Thank you