Safeguarding human rights in our supply chain
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. For bonus-eligible employees, acceptance of the Code forms a mandatory requirement for receiving a bonus. 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.
Our position on human rights, forced labor and child labor
Barry Callebaut observes the principles set forth in the Universal Declaration of Human Rights. We strictly adhere to local laws regarding minimum age and other terms of employment in our factories and offices around the world. The minimum age for employment at Barry Callebaut is in accordance with ILO Conventions or, if higher, the age specified by local legislation.
We strongly condemn forced labor, slavery and all practices that exploit both adults and children or expose them to harmful or hazardous conditions. Child labor as defined by the International Labor Organization (ILO) refers to unacceptable forms of child labor, which is work that is mentally, physically, socially or morally dangerous and harmful to children. Prior to the launch of government led campaigns, for many years Barry Callebaut has promoted school enrollment and attendance, helping families to secure birth certificates for their school age children and providing school kits at the start of the academic year to children of cocoa farmers. We have contributed to educational infrastructure in communities where facilities are inadequate. This included building and furnishing classrooms and school canteens. Recognizing that a woman’s income and education level has a direct impact on the health and education of her children, we work within farming communities to encourage and enable women’s active participation in farmer training activities, as well as group administration and management, helping to increase business skills and create opportunities for women to earn an income. Child labor prevention and awareness is included each year in the curriculum of the thousands of farmers we train on cocoa sustainability. Under our sustainability strategy “Forever Chocolate”, which was announced in November 2016, we strive to eradicate child labor from our supply chain by 2025. We published our second progress report on December 7, 2018.
A structural solution to eradicating child labor is a combination of poverty alleviation, access to quality education and awareness raising. We are working on all three levers, by partnering with our customers through the Cocoa Horizons program, investing in improving the productivity of cocoa farmers, helping to increase their income, supporting access to quality education, training farmers on child labor awareness and creating ownership and structures within the communities to tackle the issues that result in child labor. With the support of the International Cocoa Initiative (ICI), we continue to implement monitoring and remediation systems on child labor. In 2017/18 we deployed monitoring and remediation in 21 farmer groups, covering 12,018 farmers in Côte d’Ivoire and Ghana. We established that in 2017/18 12% of the farmer groups we directly sourced from have systems in place to prevent, monitor and remediate child labor. The monitoring uncovered 4,230 cases of the worst forms of child labor, in all cases children working on their family’s farm. In these cases remediation means first of all raising awareness with both the parents as well as the larger farming community. The monitoring data will help us to better target those communities where child labor awareness-raising and remediation efforts have to be prioritized. We have not encountered any cases of forced labor during this analysis. We are currently implementing innovative approaches throughout multiple pilots across the globe to enable learnings that will help us to not only professionalize farmers - essentially change the foundation of cocoa farming - but to create self-driving, self-sustaining, scalable solutions. It is essential that communities and farmers are empowered to take responsibility for their children's welfare. In fiscal year 2017/18 we trained 105,406 farmers on child labor awareness. As we aim to eradicate child labor from our entire supply chain, not just cocoa, we have created a heat map to identify those commodities at risk of including child labor in their supply chains. In addition we have updated our Supplier Code to strengthen our requirements and align our suppliers to our sustainability vision. The Supplier Code is attached to our supplier contracts and referenced in purchase orders.
Information about our “Forever Chocolate” sustainability strategy, sector issues and related actions is communicated regularly via the company intranet, the corporate website, and internal and external publications.
Holding suppliers accountable
We expect our suppliers and their employees, agents and subcontractors, to share our 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.
Sustainable and responsible farming and business practices
Barry Callebaut recognizes that farmers, particularly smallholders, in various regions of the world may face significant challenges in growing, harvesting and marketing their various crops. Our business depends on cocoa, a fragile and sensitive crop grown in a narrow band around the equator in some of the poorest countries of the world. Therefore, we actively contribute to ensuring that cocoa is grown in a sustainable and responsible way that generates income for farmers and that safeguards the environment. Under our Forever Chocolate sustainability strategy, we are committed to lifting more than 500,000 cocoa farmers out of poverty by 2025. We empower farmers to implement sustainable agricultural practices. We expect fair and sound business practices to be followed by the farmers, farmer organizations, and other supplier organizations with whom we have commercial dealings. 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. In 2017/18 premiums from the purchase of Horizons products generated CHF 10.5 million and the program reached around 75,000 farmers. 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.