21 22_Tony's Open Chain report

General information about the impact model of Tony’s Open Chain

The 5 Sourcing Principles Tony’s Open Chain leads by example through the 5 Sourcing Principles by putting human rights at the core of how we do business. The 5 Sourcing Principles stand to practically address the complex issue of poverty in cocoa through concrete solutions and long-term

opportunities. They are an integrated approach that aims to end structural poverty at the very beginning of the supply chain. All 5 Principles must be combined to ensure long- term change and more equal business relationships with suppliers in West Africa. Traceable beans All 5 Sourcing Principles combine to guarantee fair cocoa. It all starts with traceability across the entire supply chain. This is key to ultimately taking responsibility. Because harvesting cocoa beans doesn’t happen in a vacuum. We believe every chocolate company is responsible for knowing the social, environmental and logistical story behind each ounce of cocoa that ends up in their chocolate. (Find out more about environmental traceability/GPS mapping on p. 20 and about social traceability/CLMRS on p. 17). Traceable beans: operational traceability For operational traceability, Tony’s Open Chain uses the Beantracker. The software system is built with ChainPoint technology. The Beantracker digitally logs the data collection from farmer delivery to partner cooperative to chocolate production and includes a monitoring tool for all actors in the supply chain to see where the beans are at any moment in time. Ghana and Côte d’Ivoire work slightly differently concerning the governmental regulations of cocoa export. The farmers deliver their cocoa beans to the cooperative’s warehouse, where the beans are put into sacks and a digital record is made. The sacks are then transported by truck to the local exporter's warehouse. In Ghana the exporter is Cocoa Merchants Ghana Limited (CML) or ADOM (that's the License Buying Company set up by the partner co-op Asunafo); in Côte d’Ivoire it’s either Ecookim or Ocean. Our international exporter CocoaSource then arranges for the sacks to be loaded into containers in the ports of Tema, Abidjan, and San Pedro, for them to be shipped to Antwerp. Ocean and Ecookim also provide beans to SACO in Abidjan, who make cocoa butter which is then shipped to Europe. In Antwerp, the sacks of beans are stored in large warehouses, until Barry Callebaut uses the beans to make couverture chocolate. Higher price A substantially higher cocoa price is required to enable farmers to earn a living income – which is a human right. That is why one of our Sourcing Principles is paying a higher price and we pay a Living Income Reference Price (find out more on p. 11). It is the first step towards structurally addressing poverty.

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Tony’s Open Chain impact report 2021/22

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