Barry Callebaut spearheads coconut sustainability project with Nestlé and Proforest

12 Aug 2021 --- Barry Callebaut is launching a scorecard to define and develop sustainable practices in coconut production and address “untackled challenges” across the sector, together with Nestlé and Proforest.

As part of the Swiss chocolate giant’s Forever Chocolate plan to make sustainable chocolate the norm, the supplier aims to be carbon- and forest-positive by 2025. 

This means taking into account the sustainability of every aspect of supply chains, including coconuts. Coconut is a key ingredient in many of Barry Callebaut’s products, which is why the company is developing a coconut sustainability framework to bolster positive change. 

Speaking to FoodIngredientsFirst, Oliver von Hagen, director of sustainability global ingredients at Barry Callebaut, says the Sustainable Coconut Supplier Scorecard provides a comprehensive, efficient and consistent approach to identifying sustainability risks in supply chains on issues such as farmer livelihoods, agricultural practices or environmental impacts. 

“Beyond this, it also covers key topics like traceability, access to finance and technology and carbon footprint.”

“With Nestlé and Proforest, we have strong partners in taking the next step to implement the Sustainable Coconut Charter by launching the Sustainable Coconut Supplier Scorecard. This will help us assess sustainability practices and performance in supply chains,  develop roadmaps for sustainability, enhance traceability by mapping out supply chain actors, and introduce a tangible incentive for suppliers and coconut origins to make improvements,” he explains. 

“If we don’t proactively start working on these issues now, the coconut sector will be hit hard by the impacts of unsustainable practices in the coming five to ten years. Now is the time to prepare the ground for a more sustainable coconut sector.”

Sustainability challenges in coconut production
In recent years, there has been rapid growth of the global coconut market, paired with significant sustainability challenges. 

In September 2020, Barry Callebaut launched the world’s first coconut charter to work on sustainable coconut production.These include aging trees, natural disasters and complex value chains, in addition to key producers lacking in market, finance and technical know-how. 

Despite a growing market, the result has been low-quality produce, low income for producers, and little incentive to improve practices across the board.

A scorecard for success
Building on its work to improve traceability within its coconut supply chain, Barry Callebaut joined forces with Nestlé and Proforest in 2020 to launch the Sustainable Coconut Supplier Scorecard and Sustainable Origins Assessment.

Madeleine Eilert, sustainable sourcing lead for Coconut at Nestlé, says: “We are dedicated to achieving transparency and traceability in our supply chains, including sourcing coconut as a raw material for our products.”

“The supplier scorecard and origins assessment we are developing together with Barry Callebaut will enable us to fully understand current and future challenges in sourcing this raw material and to address gaps in sustainable coconut production,” she continues.

“This set of tools will also be beneficial in creating an alignment among companies and defining a common framework to drive changes in the industry.”

The Sustainable Coconut Supplier Scorecard and Sustainable Origins Assessment will allow Barry Callebaut to assess sustainability risks at its coconut supply chain’s sourcing locations and origin countries, set clear improvement targets, and track performance over time. 

It will also help the Swiss chocolate manufacturer enhance traceability by mapping out supply chain actors and introducing a tangible incentive for suppliers and coconut origins to make improvements. 

By 2022, Barry Callebaut intends to roll out this assessment with all of its coconut oil suppliers, in addition to its annual traceability assessment.

The Sustainable Coconut Charter
The company is inviting organizations active in the coconut industry to join in signing the Sustainable Coconut Charter. 

Last November, the Charter was co-signed by AAK, FrieslandCampina, Harmless Harvest, Nestlé and Unilever.

Alongside this initiative, Barry Callebaut collaborated with USAID Green Invest Asia.Coconut is a key ingredient in many of Barry Callebaut’s products.

“The Sustainable Coconut Charter is a first of its kind voluntary framework for companies in the coconut industry. It represents a collective commitment and a harmonized approach to making a difference to the planet, people and business,” explains von Hagen.

Since the Sustainable Coconut Charter launch, Barry Callebaut has witnessed momentum with over 40 companies, NGOs and other stakeholders expressing interest in aligning their approach toward sustainable coconut production, the company reveals. 

As one of Innova Market Insights’ Top Ten Trend for 2020 – “The Sustain Domain” – highlighted, consumers increasingly expect companies to invest in sustainability. Data shows that 85 percent of, on average, US and UK consumers expected companies to invest in sustainability in 2019, up from 64 percent in 2018. 

But as coconut consumption rises in line with the diversification of this category, environmental sustainability is not the only concern at the top of mind. 

Thai supplier Theppadungporn Coconut Co., a manufacturer and distributor of Chaokoh coconut milk, previously signed a memorandum of understanding with local suppliers and farmers for monkey-free coconut cultivation.

By Elizabeth Green

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