Tony's Open Chain Impact Report 2024/25

3.4 Total % of cocoa farmers earning at or above the living income benchmark across all partner cooperatives in scope disaggregated by gender.

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The total % of farmers (from cooperatives in scope for the 2024/25 analysis) who earn at or above the share of the living income benchmark (determined by Anker) that represents their cocoa income, disaggregated by gender (from partner cooperatives’ farmer registries). The living income benchmark will be adjusted in line with Tony’s Open Chain’s median household size; the share of the benchmark for cocoa income will be determined by using the median % of income from cocoa from Tony’s Open Chain farmer surveys. Key aspects of the methodology used to calculate this KPI are explained in the living income chapter of this report. The calculation relies on a range of assumptions, which will be reviewed and updated to ensure relevance and accuracy as needed year-on-year. The criteria for partner cooperative inclusion for the 2024/25 analysis were: • Long-established partner cooperatives: Delivering cocoa beans to Mission Allies via Tony’s Open Chain for a minimum of 5 years (i.e second MoU and onwards) establishes the enabling environment for impact on income. Via the 5 Sourcing Principles, and particularly via the build-up of the higher price principle over time, cocoa farmers are in a position of greater income stability. • Volumes to Tony’s Open Chain : We consider volume in 2 different ways, and partner cooperatives can meet either option for inclusion. These 2 pathways allow the inclusion of larger partner cooperatives with other buyers who are unlikely to dedicate the majority of their production to Tony’s Open Chain, as well as allowing for the inclusion of smaller cooperatives that produce and sell less cocoa overall but choose Tony’s Open Chain as their preferred buyer and therefore dedicate a high percentage to Tony’s Open Chain. • Percentage volume to Tony’s Open Chain: We include partner cooperatives that dedicate more than 75% of their estimated global projected production volume to Tony’s Open Chain (after the supply margin of up to 20% is deducted from the global projected volume to allow for supply chain flexibility). The Global projected production volume is estimated by Tony’s Open Chain based on yield trends from data in BeanTracker and/or regional averages. The 75% limit allows for a high concentration of the Higher Price principle per cocoa farmer. • Quantity of volumes to Tony’s Open Chain: We also look at the quantity of volumes, including partner cooperatives that sell 2,500 metric tons or more to Tony’s Open Chain. These cooperatives may have other buyers and sell less than 75% to Tony’s Open Chain. • Data availability and quality: Partner cooperatives for which the required levels and quality of data are available for the relevant cocoa season. This includes sufficient information on farmer lists on gender to allow for gender disaggregation.

We will further refine these criteria in the next cocoa season as we build out our living income analysis approach.

3.5 % of cocoa farmers earning below the living income benchmark across all partner cooperatives in scope, including: a. Median gap to the living income benchmark

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The total % of farmers (from partner cooperatives in scope for the 2024/25 analysis) who earn below the share of the living income benchmark (determined by Anker) that represents their cocoa income, disaggregated by gender (from partner cooperative farmer registries), and by percentage bands (those falling within 81-99.9%, 61-80%, 41-60%, or 40% or below of a living income). Key aspects of the methodology used to calculate this KPI are explained in the living income chapter of this report. The calculation relies on a range of assumptions to create these estimations, which will be reviewed and updated as needed year-on-year.

b. Gender (female farmers in cooperative registers) c. Those falling within 81-99.9%, 61-80%, 41-60%, or 40% or below a living income

See definition for KPI 3.4 for further details.

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Ending exploitation in cocoa together

Living income

Climate, environment & productivity

Human rights

Governance & finances

Interesting appendices

Scaling for change

Introduction

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