The Times Australia
Business and Money
The Times Real Estate

.

Is that a good egg? How chocolate makers rate on social and environmental measures

  • Written by John Dumay, Professor - Department of Accounting and Corporate Governance, Macquarie University

Easter is the biggest chocolate-buying time of the year. But who’s really paying for the cost of that chocolate?

The second annual report[1] on the social and environmental performance of the world’s major chocolate makers show human exploitation and environmental degradation continue to be key ingredients in many chocolate products.

It is a collaboration between five advocacy groups – Be Slavery Free[2], German-based social justice organisation INKOTA[3] and US environmental outfits Green America[4],Mighty Earth[5] and the National Wildlife Federation[6]. (Macquarie Business School has been working with Be Slavery Free[7] on research into issues of modern slavery).

The report sorts 31 major chocolate makers into four bands – industry leaders,those showing improvement, those needing to do more and the industry laggards – based on their written responses to questions about their polices in six key areas covering social, environmental and governance practices.

Just four of the 31 received the highest “good egg” rating: US-based Alter Eco[8], Switzerland’s Chocolats Halba/Sunray[9], Netherlands-based Tony’s Chocolonely[10], and New Zealand’s Whittakers [11]. These are all relatively small chocolate makers.

Thirteen makers ranked in the second category, includes most of the world’s ten biggest confectionary companies – Mars Wrigley (US), Ferraro Group (Luxembourg/Italy), Mondelēz International (US, owner of the Cadbury, Toblerone and Milka brands), Hershey (US), Nestlé (Switzerland) and Lindt & Sprüngli (Switzerland).

Seven companies were in the third rank. Three were in the fourth – Meiji, Itochu and Morinaga (all Japan-based).

Is that a good egg? How chocolate makers rate on social and environmental measures Selected chocolate brands available in Australia, from a full list of 31 makers. Easter Chocolate Shopping Guide, CC BY-ND[12][13]

Four companies failed to respond to the survey: Valrhona (France); Starbucks (US, a major seller of hot chocolate products); Unilever (UK); and August Storck (Germany, maker of Werther’s, Toffifay and Merci chocolate brands).

The full list of rankings can be found here[14].

Read more: Sustainable shopping: save the world, one chocolate at a time[15]

Where chocolate comes from

The principle ingredient for making chocolate is cocoa, the powder made from grinding the seeds of the cacao plant. About 70% of cacao is farmed in West Africa, with Côte d'Ivoire and Ghana being the big two producers.

Most cacao farmers make less than US$1 a day (and women even less), well below the global poverty line of $US1.90. An estimated 1.6 million children[16] work in cocoa production in Côte d'Ivoire and Ghana alone.

Most cacao farmers earn less than US$1 a day. Most cacao farmers earn less than US$1 a day. chomplearn/Shutterstock

Clearing land to farm cacao is estimated to be responsible for about one-third of of the land cleared in Côte d'Ivoire and Ghana over the past 60 years. These countries have now lost more than 80%[17] of rainforest cover. Such deforestation contributes to climate change.

The good news is that most companies and four producer governments (Côte d'Ivoire, Ghana, Colombia and Cameroon) have committed to ending cocoa-driven deforestation through the Cocoa and Forest Initiative[18].

Some action is taking place through agroforestry[19], which involves farming a variety of crops while retaining natural vegetation. This has been shown to reduce the need for pesticides, increase carbon sequestration and improve biodiversity. It is also better for farmers’ food and income security, as they can grow diverse crops rather than relying on just one.

Supply chain transparency

Essential to addressing these social and environmental problems is achieving transparency in supply chains. If a company does not trace and track where products have come from, it cannot know if they have been produced through human exploitation or environmental destruction.

The report rates chocolate makers on two measures related to this – due diligence traceability and transparency. These are crucial as the foundation for all other reforms.

Read more: At last, Australia has a Modern Slavery Act. Here's what you'll need to know[20]

They are also key to Australia’s modern slavery act, which requires businesses with an annual turnover of A$100 million to publish a “modern slavery statement” reporting on the risks of modern slavery in their operations and supply chains, and on the actions they have taken to address these.

But such transparency alone will not be enough if consumers don’t act on that information, and put pressure on chocolate companies through their purchasing decisions.

So go with the good eggs, and avoid the bad.

References

  1. ^ second annual report (static1.squarespace.com)
  2. ^ Be Slavery Free (beslaveryfree.com)
  3. ^ INKOTA (www.inkota.de)
  4. ^ Green America (www.greenamerica.org)
  5. ^ Mighty Earth (www.mightyearth.org)
  6. ^ National Wildlife Federation (www.nwf.org)
  7. ^ Be Slavery Free (beslaveryfree.com)
  8. ^ Alter Eco (www.alterecofoods.com)
  9. ^ Chocolats Halba/Sunray (www.halba.ch)
  10. ^ Tony’s Chocolonely (tonyschocolonely.com)
  11. ^ Whittakers (www.whittakers.co.nz)
  12. ^ Easter Chocolate Shopping Guide (static1.squarespace.com)
  13. ^ CC BY-ND (creativecommons.org)
  14. ^ found here (static1.squarespace.com)
  15. ^ Sustainable shopping: save the world, one chocolate at a time (theconversation.com)
  16. ^ 1.6 million children (foodtank.com)
  17. ^ than 80% (www.theguardian.com)
  18. ^ Cocoa and Forest Initiative (www.worldcocoafoundation.org)
  19. ^ agroforestry (readcacao.com)
  20. ^ At last, Australia has a Modern Slavery Act. Here's what you'll need to know (theconversation.com)

Authors: John Dumay, Professor - Department of Accounting and Corporate Governance, Macquarie University

Read more https://theconversation.com/is-that-a-good-egg-how-chocolate-makers-rate-on-social-and-environmental-measures-158125

SME Business News

In the Digital Age, Online Promotion Isn't Just an Option for Small Businesses – It's a Necessity

The shift to an online-first consumer landscape means small businesses must embrace digital promotion to not only survive but thrive in 2025. From expanding reach to fostering customer loyalty...

Integrated vs. Outsourced Transport Freight Solutions: Which Works Best?

(Source) Transporting goods from one place to another in a smooth and efficient way is essential for all businesses around the world. Regardless of the size, businesses rely on transport freig...

Launchd Acquires ICMI in Bold Play to Redefine the Business of Speakers and Influence

Australia’s leading speaker bureau acquired by next-gen talent and technology Company, modernising the brand, corporate and event industry April 2025 - Launchd, the business underpinned by a...

Why Your Dental Business Needs Professional Digital Marketing Services

Running a successful dental practice today requires more than just great patient care. In a digital-first world, your online presence plays a huge role in how potential patients discover, choos...

The Times Features

hovr.me: The “Uber” of Property Valuation Disrupting an Outdated Industry

In the evolving landscape of Australia's digital economy, where convenience, speed, and trust are paramount, the property valuation industry has remained relatively static—until ...

Boxer Star Harry Garside Champions Breathwork as a Game-Changer for Athletes

Olympic boxer Harry Garside is known for his unconventional approach to training but one practice has profoundly shifted his mindset and performance: breathwork. Moving from b...

Red Light Therapy for Strokes: Illuminating a New Path in Recovery

Understanding the Challenge of Stroke Recovery Stroke is one of the leading causes of long-term disability globally. Survivors often face a daunting journey marked by impairment...

Autism Assessment in Melbourne: A Comprehensive Guide

Seeking an autism assessment in Melbourne can be an important step for individuals or families looking for answers, support, and appropriate interventions. Autism Spectrum Disord...

Hampers With Bite - A box of life’s little luxuries

How do you acknowledge special moments, special someones, special achievements…or just give yourself a special treat? For all of the above, and more, you can turn to Hampers With...

Senator Jacinta Nampijinpa Price - Leadership of the Liberal Party

I wish to congratulate Sussan Ley as the newly appointed Leader of the Liberal Party, and Ted O’Brien as Deputy Leader. While I am disappointed Angus Taylor was not elected Lea...

Business Times

In the Digital Age, Online Promotion Isn't Just an Option for Sma…

The shift to an online-first consumer landscape means small businesses must embrace digital promotion to not only survive b...

Integrated vs. Outsourced Transport Freight Solutions: Which Work…

(Source) Transporting goods from one place to another in a smooth and efficient way is essential for all businesses around...

Launchd Acquires ICMI in Bold Play to Redefine the Business of Sp…

Australia’s leading speaker bureau acquired by next-gen talent and technology Company, modernising the brand, corporate a...

LayBy Shopping