World Cocoa Foundation boosts GHG accounting with new standard for consistent and detailed reporting

The World Cocoa Foundation (WCF) has unveiled a new greenhouse gas (GHG) accounting standard for cocoa. The GHG Accounting Standard Methodology is poised to help the cocoa sector’s approach to measuring and reporting emissions and, crucially, mitigating them.

The WCF, which is geared toward building impactful solutions for a more sustainable cocoa sector, has developed the new standard alongside Quantis, an environmental sustainability consultancy. 

It is designed to help companies in the cocoa sector meet their Scope 3 reporting obligations. The announcement comes as the cocoa industry at large prepares for the enforcement of the European Deforestation Regulation (EUDR) later this year. 

The EUDR will introduce new import rules to combat global deforestation and prohibit imports of products, including cocoa, from areas deforested after 2021. The idea is to prevent any company from working with commodities linked to deforestation and eventually eliminate food-related products linked to deforestation from the EU market. 

The WCF believes this new standard will drive the sector toward consistent reporting, which has been lacking in the past. 

Facing legislation

The GHG methodology also comes amid increasing global cocoa prices, which are due to crop production being battered by climate change and extreme weather events. Yields in key African growing regions have fallen short, leading to a lack of availability and high prices for chocolate makers and confectionery manufacturers.

Some food innovators are turning to alternatives to help mitigate the cocoa crisis, while big players like Hershey’s and Mondelēz International are raising prices in the face of rising cocoa costs. 

The new standard includes topics such as land use change, land management, carbon removals, and rebaselining.

The WCF says it allows cocoa companies to consistently report to the Science Based Targets Initiative (SBTi) and supports reporting in accordance with the GHG Protocol (GHGP) Land Sector and Removals Guidance draft (with the final to be released later this year), as well as future mandatory legislation.” 

Unified framework

Michael Matarasso, impact director and Head of North America, WCF, says there has not yet been a consistent and detailed way for the cocoa industry to report GHG emissions accurately. “Companies have struggled with multiple methods that can deliver very different results,” he states. 

“By aligning the cocoa sector around a best practice standard method, we are now streamlining emissions accounting. This will ensure that companies can report the most accurate data, support them to participate fully in climate-related programming, and deliver associated financial benefits to farmers who partake in carbon projects.”

Alexandra Stern, Land & Agriculture Lead, Quantis US, adds: “This new standard is the product of a collaborative effort which integrated insights from key industry stakeholders to effectively address the sector’s unique challenges. By establishing a unified framework, it equips companies with a practical, standardized approach to emissions reporting, fostering greater transparency and driving meaningful climate action.”

Cocoa emissions reporting

The cocoa supply chain has been intrinsically linked to several challenges in emissions reporting due to its complexity and diverse structure, which includes deforestation and land use change happening in cocoa supply chains, many of which (especially smallholder farmers) are poorly understood, particularly in the indirect supply chain.

There has also been a history of Inconsistent reporting; despite the adoption of frameworks like the GHGP and SBTi, varying approaches to emissions tracking have hindered comparability and progress in the past.

But the GHG Accounting Standard Methodology has a unified approach, says WCF. It provides a step-by-step guide for establishing and achieving GHG emission reduction targets. These include clear definitions for traceability and carbon sampling, guidance on land use change emissions, land management emissions, and carbon removals, and a standardized approach for Scope 3 emissions, ensuring consistency and comparability across the industry.

Tilmann Silber, head of net zero, Barry Callebaut, says: “Transparent and accurate reporting is essential in order for sustainable chocolate to become the norm. With its unique position to represent the industry, we welcome WCF’s new accounting standard for cocoa which, when combined with wider GHGP guidance, will move the sector toward actionable, consistent and accurate reporting.” 

“In addition to helping companies meet their own cocoa GHG emission targets, this industry-wide standard will ensure aligned reporting from the entire cocoa sector and further facilitate collaboration among suppliers and customers.”

The GHG Accounting Standard Methodology adds to WCF’s portfolio of methods, tools, and guidance designed to support sector-wide comprehensive monitoring and reporting on the most critical cocoa sustainability issues. 

Its Deforestation Risk Assessment Methodology aims to Standardize how companies evaluate the deforestation risk for all cocoa plots destined for the EU market. Its Cocoa Household Income Study creates a standardized approach for measuring cocoa household income and living income.