Ofi eyes transparency and traceability for driving sustainability impact for F&B sectors

02 May 2024 --- Developments in technology, including granular deforestation mapping, child labor monitoring and AI measurement tools, are accelerating progress toward ofi’s Cocoa Compass sustainability ambition, flags the company.

Ofi is gearing up for the release of a refreshed Cocoa Compass ambition in H2 this year after making good progress on its longer-term sustainability goals.

The vision is to bolster sustainable cocoa supply chains and make the future of the industry more sustainable in general by collaborating with customers, partners and governments.

Cocoa Compass targets
Ofi set ambitious 2030 goals in alignment with the United Nations Sustainable Development Goals (UNSDGs). Three years previously, the company achieved its first set of Cocoa Compass targets, which included implementing 100% traceability and deforestation monitoring in its direct cocoa supply chain to farms or communities.

The company will provide F&B companies with enhanced traceability and transparency ahead of new regulations in Europe and elsewhere.

This will incorporate learnings from the past five years and leverage the impact of ofi’s on-the-ground programs in cocoa communities. It will also reinforce the company’s broader sustainability strategy. 

The latest Cocoa Compass highlights based on 2022 data include:

• New analysis detailing how over 30,168 farmers in ofi’s cocoa supply chain are earning a living income, putting the business on track to reach its 2030 target of 150,000 cocoa farmers earning a living income. 
• A 395% rise in the number of children receiving education support in 2022 compared to the 2018 baseline. 
• A 15% rise in the number of households covered by ofi’s Child Labor Monitoring and Remediation System (CLMRS). 
• Six million trees distributed by ofi, working with its customers and partners, for agroforestry and income diversification, from 2018 to 2022. 
• Seventy-nine percent of farms in ofi’s sustainability programs have been polygon mapped.

US Agency for International Development (USAID), Indonesia mission director, Jeff Cohen, shares: “We are proud to be working together with ofi and the Hershey Company to encourage cocoa farmers to adopt more sustainable agriculture practices — like diversifying their crops and allowing more trees to remain on their land — which will strengthen their resilience against climate shocks and improve their livelihoods.”

Technology is critical to delivering impact with USAID and other partners. Ofi’s latest advancements leverage capabilities of its sustainability management system, AtSource.  

30,168 farmers in ofi’s cocoa supply chain are earning a living income, putting the business on track to reach its 2030 target of 150,000 cocoa farmers earning a living income. This technology can be available to customers upon request, providing companies with detailed data and insights on where and how their cocoa and other ofi ingredients are sourced, including their social and environmental impact. It also complements specific solutions that ofi is implementing to prepare for the incoming European Deforestation Regulation (EUDR). 

Ofi Cocoa, managing director and CEO, Tejinder Singh Saraon, comments: “The granularity of our data, coupled with our extensive footprint on the ground in origin countries and strong relationships with farmers, means we can continue to move the needle with collaborators like USAID.”

“We’re also investing in technology to help some of the world’s biggest F&B brands meet the demand from their consumers for on-trend products with robust sustainability credentials,” Singh Saraon notes. 

“Although there are no easy solutions to the complex challenges facing cocoa farmers and the natural world, I’m proud of the impact we’re having together.”

Edited by Elizabeth Green