OVERVIEW OF MATERIAL TOPICS
HOW DO WE ADDRESS THIS?
HOW DO WE ADDRESS THIS? Read about our approach in our Living income chapter.
MATERIAL TOPIC
MATERIAL TOPIC
OVERVIEW
OVERVIEW
Climate change
Cocoa farming contributes to climate change through deforestation: when a tree is cut down, the carbon it stores is released into the atmosphere. 24 Unsustainable land use, such as converting forests to agriculture or urban areas, also increases emissions through fertilizer use and altered ecosystems. Rapid rates of deforestation continue to be a key issue in Côte d’Ivoire and Ghana, driven by structural poverty, ageing trees, and a lack of means to invest in the refurbishment of farms. In 2024, deforestation in both countries contributed significantly to CO₂ emissions (with Côte d’Ivoire at 78.1 million metric tons and Ghana at 47 million metric tons). 25 The expansion of cultivated cocoa areas over recent decades via deforestation has led to major biodiversity loss and the degradation or disruption of vital ecosystems. Pesticide use also negatively impacts biodiversity and can lead to soil impoverishment when used without sufficient information for farmers. 26 An estimated 1.56 million children are engaged in cocoa-related child labour, and of those, 1.48 million are estimated to be doing hazardous work like handling sharp tools or chemicals. 27 Structural poverty and low cocoa prices force families to rely on child labour. While forced labour has never been identified in Tony’s Open Chain’s supply chain, it is a risk, particularly for migrants from neighbouring countries and adults in debt. 28
Farmer livelihoods and communities
In Côte d’Ivoire, the estimated living income is 298,983 Ivorian CFA Francs per month, and in Ghana, it is 2,324 Ghanaian Cedis per month. 29 Many cocoa farmers are not paid enough for their cocoa and other crops and, therefore, do not achieve these income levels, resulting in widespread poverty. A recent Fairtrade study estimated that 82% of surveyed cocoa farmers in Côte d’Ivoire and Ghana did not earn a living income. 30 There is a risk of poor labour standards, lack of contracts and poor health and safety standards across the wider cocoa value chain. This includes those involved in the processing, transporting, warehousing and shipping of cocoa, as well as sub-contracted workers hired to perform other roles in the facilities that carry out these activities. Risk: the potential for corruption – such as bribery, kickbacks, or manipulation of procurement and certification processes – can lead to legal sanctions, loss of operating licenses and exclusion from ethical supply chains.
Read about our approach in our Climate change, environment and deforestation chapter .
Working conditions in the value chain
Read about our approach in our Human rights chapter.
Biodiversity & ecosystems
Business conduct
Read about our work on governance in our Governance & Finance chapter .
Child labour and forced labour
Read about our approach in our Human rights chapter.
With these insights, we remain committed to learning how and where we can strengthen our programmes towards continuing to raise the bar for cocoa farmers.
28. Sustainable Agricultural Supply Chains Initiative. Feasibility study for a cross-company grievance mechanism in the cocoa sector in Côte d’Ivoire, p45, November 2024. 29. Anker, Richard; Anker, Martha. “Living Income Benchmark”, June 2022 Update Côte d’Ivoire and Ghana 30. Motovska, Nina Bellini; Gaviola, Agustin Gonzalez; Koster, Tinka; Waarts, Yuca, “High-Level analysis of recent and current yield in the West African cocoa sector.” Wageningen Economic Research, 2024, p. 15.
24. Live to Plant, “The Effects of Deforestation on Global Carbon Emissions”, 2023. 25. Global Forest Watch, Dashboard Ghana and Dashboard Côte d’Ivoire . 26. Sustainable Agricultural Supply Chains Initiative. Feasibility study for a cross-company grievance mechanism in the cocoa sector in Côte d’Ivoire, November 2024. 27. NORC at the University of Chicago. Assessing Child Labor in West African Cocoa Farming. NORC, 2020.
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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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