The foundation: Barry Callebaut Code of Conduct
The Barry Callebaut Code of Conduct (the Code) was first launched in 2002 and has since evolved and regularly been updated and complemented to cover new requirements. It sets forth mandatory principles and requirements for behavior and is complemented by our global and local policies. The Code, which applies to all Barry Callebaut employees worldwide, also articulates our minimum standards regarding human rights, forced labor and child labor. Expectations and procedures for reporting wrongful acts or suspected wrongful acts in violation of the Code are communicated to all employees.
All Barry Callebaut employees receive a copy of the Code in their local language. All employees with an active Barry Callebaut e-mail account receive additional training on the Code on a regular basis. Furthermore, every month a topic of the Code is communicated to all employees via intranet and email, inviting feedback on potential scenarios, and strengthening employees’ ability to act upon violations of the code.
It is the responsibility of each employee to uphold the principles of the Code, and employees are encouraged to seek advice and to raise questions or concerns at any time with their manager, Human Resources or Group Legal & Compliance.
Structural or contextual issues, for example, a change of revenue source in families that were not considered high risk at the moment of monitoring, or closure of schools due to COVID-19, can lead to children being subjected, or returning to, child labor. Therefore a community-centric approach is essential to comprehensively tackle child labor, given the high context volatility that can expose children to ongoing child labor risks. Our data driven risk analysis follows the United Nations Guiding Principles on Human Rights (UNGPs) which state that “to prioritize actions to address actual and potential adverse human rights impacts, business enterprises should first seek to prevent and mitigate those that are most severe or where delayed response would make them irremediable8. Our model seeks to combine the data from our child labor monitoring and remediation system with farmer census data. This combination will allow us to better target our activities and be more impactful to those households and communities where children and families need the most support. To help us identify and address child labor in our cocoa supply chain, we continued in 2020/21 to implement child labor monitoring and remediation systems based on the industry practice as developed by the International Cocoa Initiative (ICI)9. To undertake monitoring and remediation, we work on the ground in cocoa origin countries, visiting households and communities to identify children at risk of child labor.
Our approach to remediation is aimed towards addressing some of the root causes of child labor, focusing on education, social and gender issues. Remediation activities include the provision of school kits and birth certificates, a requirement to enable attendance at school, as well as supporting families and communities with education and training on child labor awareness and follow-up visits to the home.
Holding suppliers accountable
We expect our suppliers and their employees, agents and subcontractors, to share our strict commitment to human rights, forced labor and child labor. Our Forever Chocolate sustainability strategy commits us to sourcing 100% sustainable ingredients for all of our products by 2025. Our Supplier Code, available in ten languages, sets forth essential minimum requirements expected from our suppliers. Our suppliers must comply with all applicable local and national laws, rules, regulations and requirements of the country in which they grow, manufacture, distribute or provide products or services. We further expect suppliers to respect and comply with international labor standards as defined by the core conventions of the International Labor Organization (ILO), including freely chosen employment, no child labor, freedom of association, legal and fair compensation, no excessive working hours, no discrimination, respect and dignity, and safe and healthy working conditions.
Our compliance to market standards
We work with our customers to meet their specific cocoa and chocolate requirements. This includes sourcing quantities of raw materials including cocoa and sugar that have been independently certified by third parties as being compliant with specific certification standards. Forced child labor and forced adult labor are expressly forbidden under such standards. Barry Callebaut follows the international standards as defined by SEDEX. Our sites are third party audited in accordance to the SMETA audit protocol, ensuring sustainable management practices. Of our sites, 95% are now fully SMETA compliant.
Our goal is to make all our sites run in compliance to the SMETA standards, covering;
- Health & Safety
- Environment and
- Business Ethics standards
Our HORIZONS cocoa and chocolate products are traceable from our warehouse all the way back to the individual farmer. Cocoa Horizons is an impact driven, sustainability program which ensures that activities are focused on relevant areas and implemented efficiently. Cocoa Horizons continues to scale impact and drive change through productivity, community and environmental activities. In addition to Côte d’Ivoire, Ghana, Cameroon, Indonesia, Brazil and Ecuador, the program has expanded into Nigeria. In 2020, Cocoa Horizons was recognized by the Sustainability Standards Map, along with other recognized sustainability programs, such as Rainforest Alliance, this publicly available resource provides an independent review of the methodology of Cocoa Horizons across the categories of environmental protection, social and governance risks. Farmers participating in Cocoa Horizons have access to coaching, access to a Farm Business Plan, are supported to access financial services and farm services, and are supported on income diversification activities and women’s empowerment. In 2020/21, the premiums from the purchase of HORIZONS products generated over CHF 28.4 million in funds, an increase of +60% compared to prior year. These funds are invested into activities that help farmers improve their productivity and income, eradicate child labor and deforestation, and become carbon positive. Through these premiums, more than 230,000 farmers took part in Cocoa Horizons programs focusing on improving their productivity and income. Cocoa Horizons contributed to the joint development of Farm Business Plans and the mapping of farms. A main part of activities implemented by the Foundation this year have been focused on the ramping up of child labor monitoring to cover more communities at risk, remediation of cases found, as well as the generation of community action plans to support the elimination of child labor.