Barry Callebaut : CDP Forests Report 2022

Barry Callebaut AG - Forests 2022

F0. Introduction

F0.1

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(F0.1) Give a general description of and introduction to your organization.

Headquartered in Zurich, Switzerland, the Barry Callebaut Group is the world's leading manufacturer of high-quality chocolate and cocoa products, mastering every step in the value chain from the sourcing of raw materials to the production of the finest chocolates. We are the heart and engine of the chocolate industry and our mission is to be number one in all attractive customer segments. We are a business-to-business company, fully vertically integrated with a strong position in cocoa-origin countries and a unique global footprint.

At Barry Callebaut:

• We employ more than 12,500 people operating out of more than 40 countries
• We operate 64 production facilities and 25 CHOCOLATE ACADEMY Centers across the globe
• We generated annual sales of about CHF 7.2 billion (USD 7.9 billion )in fiscal year 2020/21
• We have comprehensive competencies in the art of making chocolate and cocoa products - from sourcing and processing cocoa beans to producing the finest chocolates, including chocolate fillings, decorations and compounds.
• With more than 175 years of chocolate heritage, the Barry Callebaut Group has an unparalleled blend of expertise in cocoa and chocolate.
• With a comprehensive portfolio of brands & products, we are serving three main customer audiences:
• Food & Beverages Manufacturers: Global, regional and local food manufacturers use Barry Callebaut's chocolate and cocoa products as ingredients in their consumer products.
• Artisans & Chefs: Professional users such as chocolatiers, pastry chefs, bakeries, hotels, restaurants and caterers rely on Barry Callebaut's premium chocolate products and on its convenient, ready-to-use and ready-to-sell products offered under a variety of gourmet brands.
• Vending: Barry Callebaut's various beverage brands offer a rich variety of chocolate, cocoa and cappuccino vending mixes to its global customer base in the vending sector.

Barry Callebaut is a company with a purpose. We believe that business should re-invest its knowledge and resources into the greater society in which it operates. Approximately half of the dividend we pay goes to the Jacobs Foundation via our majority shareholder, Jacobs Holding, benefiting future generations by providing children and young people with better opportunities for development.

In cocoa producing countries, we have been engaging with cocoa farmer communities for more than a decade to provide them with education, know-how, services and access to finance. Through our interactions with farmer cooperatives in origin countries, as well as through our direct sourcing and farm services organization, we have invested and engaged in productivity and community development for the past decade. The premiums from the sale of our sustainable HORIZONS cocoa and chocolate products flow 100% to the Cocoa Horizons Foundation, funding initiatives to improve smallholder cocoa farmer livelihoods through a mission-driven,non-profit organization.

We are also working in partnership with our customers, sustainability initiatives like the International Cocoa Initiative (ICI) and the Sustainable Trade Initiative (IDH) and global development institutions such as the International Finance Corporation (IFC) to further address sustainability issues in our value chain.

But as chocolate manufacturers we have to look beyond cocoa. Our products contain other ingredients, such as dairy, sugar and palm oil, and have an impact on the world's natural resources, including forests. The urgency of taking action through a holistic approach on sustainable chocolate has never been greater.

To ensure that all the actors in our supply chain will be able to earn an equitable income, engage in responsible labor practices, safeguard the environment, and provide for the basic health and education needs and well-being of their families we need to scale up our reach and our impact. This is why we launched Forever Chocolate; an ambition for the entire chocolate industry to make sustainable chocolate the norm. To achieve this, we need to start a movement, including farmers, civil society, industry, governments and chocolate lovers around the world. The task is too big for any organization alone.

We have committed to four bold targets that we expect to achieve by 2025 and that address the biggest sustainability challenges in the chocolate supply chain.

• We will eradicate child labor from our supply chain.
• We will lift more than 500,000 cocoa farmers out of poverty
• We will be carbon and forest positive
• We will have 100% sustainable ingredients in all of our products

By setting four ambitious, time-bound targets on eradicating child labor, prospering farmers, thriving nature and sustainable chocolate we want to move beyond sustainable cocoa. By annually reporting our progress against these targets in a transparent and measurable way, we hope to unleash the sense of urgency required to find the creative solutions this cause deserves: https://www.barry-callebaut.com/forever-chocolate.

F0.2

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(F0.2) State the start and end date of the year for which you are reporting data.

Reporting year

Start Date	End Date
January 1 2021	December 31 2021

F0.3

(F0.3) Select the currency used for all financial information disclosed throughout your response.

CHF

F0.4

(F0.4) Select the forest risk commodity(ies) that you are, or are not, disclosing on (including any that are sources for your processed ingredients or manufactured goods); and for each select the stages of the supply chain that best represents your organization's area of operation.

	Commodity disclosure	Stage of the value chain	Explanation if not disclosing
Timber products	This commodity is not produced, sourced or used by our organization
Palm oil	Disclosing	Manufacturing
Cattle products	This commodity is not produced, sourced or used by our organization
Soy	Disclosing	Manufacturing
Other - Rubber	This commodity is not produced, sourced or used by our organization
Other - Cocoa	Disclosing	Processing
Other - Coffee	This commodity is not produced, sourced or used by our organization

F0.5

(F0.5) Are there any parts of your direct operations or supply chain that are not included in your disclosure? No

F0.6

(F0.6) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.?)

Indicate whether you are able to provide a unique identifier for your organization	Provide your unique identifier
Yes, an ISIN code	CH0009002962

F1. Current state

F1.1

(F1.1) How does your organization produce, use or sell your disclosed commodity(ies)?

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Palm oil

Activity

Using as input into product manufacturing

Retailing/onward sale of commodity or product containing commodity

Form of commodity

Refined palm oil

Palm oil derivatives

Palm kernel oil derivatives

Source

Contracted suppliers (manufacturers)

Country/Area of origin

Brazil

Cambodia

Colombia

Costa Rica

Côte d'Ivoire

Ecuador

Gabon

Ghana

Guatemala

Honduras

India

Indonesia

Liberia

Malaysia

Mexico

Nicaragua

Panama

Papua New Guinea

Peru

Philippines

Puerto Rico

Solomon Islands

Thailand

• of procurement spend
  6-10%

Comment

Soy

Activity

Using as input into product manufacturing

Retailing/onward sale of commodity or product containing commodity

Form of commodity

Soy bean oil

Soy derivatives

Source

Contracted suppliers (manufacturers)

Country/Area of origin

Argentina

Brazil

Hungary

India

Italy

Nicaragua

Romania

Russian Federation

Serbia

Ukraine

United States of America

• of procurement spend<1%

Comment

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Other - Cocoa

Activity

Refining & processing

Refining & fractionation

Exporting/trading

Using as input into product manufacturing

Buying manufactured products

Distributing/packaging

Retailing/onward sale of commodity or product containing commodity

Other, please specify (Buying raw commodity, grinding & pressing)

Form of commodity

Other, please specify (Cocoa beans or cocoa products (butter and powder))

Source

Smallholders

Single contracted producer

Multiple contracted producers

Trader/broker/commodity market

Country/Area of origin

Cameroon

Colombia

Côte d'Ivoire

Dominican Republic

Ecuador

Ghana

Grenada

Guinea

Honduras

Indonesia

Liberia

Madagascar

Mexico

Nicaragua

Nigeria

Philippines

Saint Lucia

Sao Tome and Principe

Sierra Leone

Solomon Islands

Togo

Uganda

United Republic of Tanzania

Venezuela (Bolivarian Republic of)

• of procurement spend 41-50%

Comment

F1.2

(F1.2) Indicate the percentage of your organization's revenue that was dependent on your disclosed forest risk commodity(ies) in the reporting year.

	% of revenue dependent on commodity	Comment
Timber products
Palm oil	11-20%
Cattle products
Soy	61-70%
Other - Rubber
Other - Cocoa	81-90%
Other - Coffee

F1.5

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