At the annual Tony’s Fair, Tony’s Chocolonely published their Jaarfairslag 2014 (annual report, in Dutch), in which they announced that they intend to reduce the negative impact of their bar to zero by 2019. Tony’s has set this ambition on the basis of research of True Price.
Since 2012, Tony’s Chocolonely has been buying their cocoa beans directly from farmer cooperatives in Ivory Coast and Ghana: ‘from bean to bar’. Besides sourcing Fairtrade and organic cocoa from Ghana, the farmers are even paid an additional premium. Tony’s Chocolonely was looking for a way to know, show, and improve the environmental and social costs of the cocoa. What is the impact of the premium? Which additional steps can they take to improve living conditions and environmental impacts? And how does Tony’s perform compared to non-sustainable alternatives?
“Tony’s Chocolonely is always looking for innovative ways to raise awareness and find solutions. In this context, our collaboration with True PriceTM is an interesting opportunity. This project allows us to quantify our progress, focus our attention, and refine our strategy.” – Arjen Boekhold, Chain Director
True Price’s role
True Price conducted a True Price scan to determine the footprint and monetize social & environmental costs like CO2 emissions, forced labour and income distribution throughout Tony’s supply chain. Our experts executed a similar exercise for non-sustainable cocoa to create a sector benchmark.
The True Price™ scan for Tony’s Chocolonely made negative externalities more visible and provided valuable insights into the opportunities for process improvement within Tony’s supply chain:
Tony’s is on the right track:
– Tony´s footprint was 40% lower than that of the average non-sustainable chocolate bar in 2013.
– Sustainable certifications are not substantial enough and much more investment is needed.
– The premium of at least 25% given to the farmers results in a higher net income & more training for local farmers.
Identified opportunities to improve:
– Underpayment, land use, child & forced labour identifies, health care and knowledge-building of farmers are areas where Tony’s makes & can make a difference.
– Around 70% of environmental costs are at farm level. Land use, productivity, cacao prices, offer a room for improvement.
A peek into the future:
If all measures succeed, the future is bright: Tony’s aims to eliminate all environmental and social costs in their supply chain by 2019.