Social Governance

Nestle Enhances Sustainability in Cocoa Supply and Helps Cocoa Farmers Enroll Children in School

Published on: 28 January 2022 07:13 PM
by KnowESG

A Brief Summary

Nestle is on a mission to reduce child labour in its cocoa supply chain and ask cocoa farmers to send their children to school instead of making them work in the cocoa fields. Overall, Nestlé said that it plans to invest CHF1.3 billion ($1.4 billion) through 2030 to expand its cocoa sustainability efforts.

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In West Africa, mounting pressure from investors, consumers and governments force chocolate makers not to use children in cocoa plantations or illegal cocoa plantations in protected forests, both of which are commonly seen in the west of Africa.

An investment of $1.4 billion by 2030 for sustainable cocoa is vowed by food groups behind KitKat chocolate bars and Smarties confectionery.

According to Nestle Chief Executive officer Mark Schneider, The new program will help identify the root causes for child labour and the huge income division farmers and their families face.

According to a recent survey conducted by the University of Chicago, more than 45% of children were engaged in child labour, particularly in agricultural households in Ivory Coast and Ghana.

Prime Minister of Ivory Coast said his country feels happy to welcome the new initiative, saying it would help businesses and countries meet the requirements and legislations.

Farmers have to enrol their children in schools to qualify for the payments from Nestle. Additionally, they need to prune trees, plant shade trees and diversify their income with other crops or livestock. IDH, The Sustainable Trade Initiative, will monitor the programme to ensure whether the children are attending school and farmers are following the rules or not.

Chocolate companies' sustainability initiatives have had little effectiveness in addressing human rights and environmental challenges in cocoa, and Western governments are now considering legislation. Nestle reported that in 2021, 51% of the cocoa it used was directly sourced and traceable, compared to 46% in 2020. Under its in-house sustainability strategy, the Nestle Cocoa Plan, it hopes to be able to track 100 per cent of its cocoa back to particular farmers by 2025.

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