Barry Callebaut’s Position On ESG

Barry Callebaut’s Position On ESG

Barry Callebaut’s Position On ESG

At Barry Callebaut our values represent a mindset and way of doing business that is committed to generating sustainable earnings over time and creating long-term value for all stakeholders. We are dedicated to running all our operations with transparency and integrity, including reporting on our social, environmental and governance (ESG) management and risks. We always seek to understand issues of concern and respond accordingly. You can explore some of the topics we are asked most frequently about by selecting from the list below.

A-Z list of topics:

Animal Testing

Barry Callebaut does not and shall not conduct, fund, commission, or allow any animal testing for any purpose, unless explicitly required by law.

Annual Report

View Barry Callebaut's Annual Report 2022/23.

Agroforestry

An agroforestry system can make cocoa production more resilient. Our Agroforestry policy explains our approach to agroforestry and why we deem it important.

Anti Bribery and Corruption Policy

Barry Callebaut's Global Anti-Bribery and Corruption (ABC) Policy provides guidance on how we handle corruption and bribery exposures and further sets a minimum standard that must be followed. Together with Master Data management, Barry Callebaut has also implemented procedures to mitigate compliance risks with - so-called exposed business partners in their Anti-Bribery and Corruption controls.

Biodiversity

At Barry Callebaut, our commitment to biodiversity is focused on both on-farm and off-farm activities, including soil regeneration and the creation of carbon sinks, agroforestry and the regeneration of natural ecosystems.

Carbon Footprint

(see also Climate Change and Net Zero Roadmap)

To track our progress towards our climate targets of net-zero carbon emissions by 2050, we continuously monitor our corporate carbon footprint (CCF) which is annually published here. We separately disclose scope 1, 2 and 3 emissions, distinguishing scope 3 FLAG, non-FLAG and FLAG removals. Our calculations are methodologically aligned with latest standards and science, especially the guidelines by the Greenhouse Gas (GHG) Protocol and SBTi. For more information, please refer to our Methodology of Corporate Carbon Footprint Calculation and our GHG Protocol-compliant Recalculation Policy for Greenhouse Gas Emissions.
For our customers, our Product Carbon Footprint (PCF) Calculator gives an initial understanding of the carbon impact of their chocolate recipes. The PCF Calculator is methodologically aligned with the Product Environmental Footprint guidelines and consistent with the methodology of our CCF.

 

CDP Reports

The CDP (formerly Carbon Disclosure Project) is an international non-profit organisation that helps companies disclose their environmental impact. Barry Callebaut annually discloses its impact on Climate Change and Forests here.

Child Labor

According to the the Universal Declaration of Human Rights, the United Nations (UN) Convention on the Rights of the Child (CRC), every child has the right to protection from harm, and this means protection from all forms of harm and abuse, not only child labor. Our work is aligned with the four core principles of the CRC. Under our Forever Chocolate program, we envision a future where all children are able to embrace opportunities and realize their full potential living in communities that are safe and self-reliant for all. Our Global Code of Conduct, Supplier Code, Global Labor Policy, and the Global Policy Safeguarding Human Rights, together with this Global Statement on Child Labor and related procedures, constitute the policy and procedural framework for Barry Callebaut with respect to human rights and child labor.

Climate change

For Barry Callebaut, climate protection is not only a responsibility but essential for the future of our business. The production of high-quality chocolate & cocoa products depends on the availability of agricultural ingredients (esp. cocoa, dairy, sugar and oils/fats) which is threatened by the consequences of climate change on agriculture, i.e. changes in growing seasons and yield changes after extreme weather events.
Therefore, we pursue ambitious climate targets in line with the Paris Agreement goals to cap global warming at 1.5°C. We aim to achieve a 30% reduction of FLAG emissions by 2030 and net-zero carbon emissions by 2050. Our climate targets and our Net Zero Roadmap to reach them are validated by the Science Based Targets Initiative (SBTi). Please consider the Net Zero Roadmap section for more details.

Cocoa

We work with, and implement, various sustainable cocoa programs to improve cocoa farmer livelihoods and farming practices. We offer customers sustainable cocoa from a range of sustainable programs. Explore each of these programs and see which products we offer.

Cocoa Horizons

Cocoa Horizons is our preferred vehicle to enable the implementation of sustainability activities. Barry Callebaut sells HORIZONS cocoa and chocolate products with a premium that goes fully into the Cocoa Horizons Foundation in order to support sustainable cocoa activities.

Coconut

Coconut oil is an important ingredient for Barry Callebaut’s customers, used in many ice cream applications and confectionery fillings. Sourced primarily from regions throughout the Philippines and Indonesia, the wellbeing of coconut producers is a priority for Barry Callebaut.

Cocoa & Forests Initiative (CFI) Reporting

As one of the leading signatories to drive the CFI Frameworks for Action, Barry Callebaut is committed to defining a structural solution to deforestation in the cocoa supply chain in Côte d’Ivoire and Ghana.

Code of Conduct

Barry Callebaut's Code of Conduct is a guide for all employees and outlines expectations of behaviour that reflect our corporate values.

Dairy

We are working with dairy suppliers and member organizations to explore options and encourage sustainable practices such as  enhancement of biodiversity, management of soil quality, reducing GHG emissions and animal welfare.

Deforestation Policy

Forests provide key ecosystem services such as watershed protection, habitats for biodiversity, livelihoods for communities and climate regulation. Barry Callebaut has committed to forest restoration, large-scale tree planting and no further gross deforestation.

Diversity and Inclusion

We are #oneBC, united by our strong values, our love for cocoa & chocolate and our passion for growth. And yet we are all different. This is our greatest strength. We thrive on the diversity of who we are, where we come from, what we’ve experienced and how we think.

Environmental Policy

Our Global Environmental Policy sets out the directions and commitment to monitor and understand the environmental impact of our business activities. It also envisages the risks and possible impact from our Barry Callebaut sites and locations, production activities and supply chain.

Farmer Poverty

As we progress towards our 2025 target of lifting more than 500,000 cocoa farmers in our supply chain out of poverty, we will have mobilized key stakeholders around a transformative cocoa farming model generating living income by 2030.

Forever Chocolate Progress Report (2022/23)

On an annual basis we report on the progress of our Forever Chocolate time bound, measurable, targets, which are verified by a third-party auditor.

Forever Chocolate strategy

Forever Chocolate is the plan we launched in 2016 to make sustainable chocolate the norm. In 2023 Barry Callebaut Group presented  its sharpened plan to make sustainable chocolate the norm, extending its scope & impact beyond 2025.

Genetically Modified Organisms (GMOs)

At Barry Callebaut, we are committed to providing information about the use of ingredients derived from GMOs. 

Global Reporting Initiative (GRI)

Barry Callebaut 2022/2023 GRI Index is based on the Global Reporting Initiative (GRI) Standards. Together with the Forever Chocolate Progress Report and the Annual Report 2022/2023, Barry Callebaut reports in accordance with the Core option of the GRI Standards.

Governance

Our Corporate Governance reflects the set of guidelines, policies and rules determining how the company is directed and controlled, how rights and responsibilities are distributed among participants in the company and how decisions on corporate affairs are made.

Greenhouse Gas emissions

See Carbon Footprint and Climate Change

By 2030, we will have decarbonized our footprint in line with global efforts to cap global warming at 1,5 degrees Celsius. By 2050, we will be a net-zero company. To reduce our carbon footprint, we assess the carbon impact created by our own operations (scope 1), the impact generated by the energy we use (scope 2), as well as the impact of our entire supply chain (scope 3).

Human Rights and the prevention of slavery and trafficking

This policy (last update in March, 2024) describes Barry Callebaut’s approach and efforts in 2022/23 toward safeguarding human rights and ensuring that slavery and human trafficking are not taking place in any part of our business and our supply chain.

Living Income Differential

Barry Callebaut supports the Ivorian and Ghanaian governments implementation of a Living Income Differential (LID) effective as of the 2020/21 crop. We have included the LID in our normal buying pattern.

Labor Policy

The implementation of this Barry Callebaut’s Labor policy is mandatory for all our entities and applies to all Barry Callebaut employees and managers worldwide.

Materiality Assessment

Regular dialogue with stakeholders ranging from farmer cooperatives to customers and from investors to governments helps to inform our approach to key sustainability issues facing our business. Our latest double-materiality assessment was published in October, 2023. 

Net Zero Roadmap

(see also Carbon Footprint and Climate Change)

For Barry Callebaut, climate protection is not only a responsibility but essential for the future of our business. Therefore, we pursue ambitious climate targets in line with the Paris Agreement goals to cap global warming at 1.5°C. 
We aim to achieve a 30% reduction of FLAG emissions by 2030 and net-zero carbon emissions by 2050. To this end, we will follow a Net Zero Roadmap (validated by the Science Based Targets Initiative [SBTi]) with concrete actions across our business regions and functions. 
To pursue a joint Net Zero journey with our customers, we started offering Net Zero Chocolate Solutions as an impactful, holistic and affordable partnership model for emission reductions. For more detailed insights, please consider our Net Zero Roadmap press release.
 

Nuts

We source a wide variety of nuts, including hazelnuts and almonds. In Spain, our entity La Morella Nuts, has developed a sustainability program focusing on the challenges related to nuts farming.

Organic

What does organic chocolate mean exactly and what products do we offer that are organic? Read more to find out!

Packaging

We have a 100% sustainable commitment to the sourcing of our packaging.

Palm Oil

Barry Callebaut is committed to sourcing sustainably produced palm oil that supports our No Deforestation, No Peatland and No Exploitation (NDPE) commitments. In order to advance sustainable and deforestation-free palm oil, we have adopted a strategy which combines traceability, certification, satellite monitoring, supplier evaluation and industry collaborations.

Pesticide Use and Management

Wherever cocoa is grown, it is subject to losses due to pests and diseases. Our approach to responsible pesticide use includes an integrated pest management approach, as well as supporting farmers and their families to increase yield whilst protecting the environment and habitats.

Quality Policy

At Barry Callebaut, we are proud of our continuous improvement in Quality.

Remuneration

The 2022/23 Remuneration Report explains how the performance in the reporting year impacted the compensation paid to the Executive Committee under the incentive plans.

Sugar: cane and beet

Barry Callebaut has been a member of BONSUCRO since 2017 and has received the Bonsucro Chain of Custody certification. As a member of the crops working group at the Sustainable Agricultural Initiative Platform we benchmark and monitor our beet sugar suppliers.

Supplier Code and Sustainable Sourcing Policies

Our Supplier Code and Sustainable Sourcing Policies lay out the framework for our sustainable sourcing activities and reflect our Forever Chocolate strategy and ambitions.

Sustainable Sourcing progress and partnerships

To reach our target of 100% certified or verified cocoa and other ingredients by 2030, we continue with the implementation of our sustainable sourcing programs across all ingredients.

Traceability

Our traceability map shows the location of cooperatives and buying stations we are directly sourcing our cocoa from. By publicly sharing this information, we are contributing to transparency and traceability in our cocoa supply chain.

Vanilla

Barry Callebaut partners with our vanilla supplier Prova to address the issues impacting vanilla farmers in Madagascar, specifically poverty, by making farmers more resilient with diversified income sources and improved productivity and quality.

Whistleblowing

Barry Callebaut has established a dedicated whistleblowing platform should any Barry Callebaut employee witness behavior suspected to not be in accordance with the Group's Code of Conduct.

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