Glossary

Child labor

Lindt & Sprüngli applies the ILO definition of child labor under the Minimum Age Convention No. 138 and the Worst Forms of Child Labour Convention No. 182.

Child labor risk countries

Lindt & Sprüngli assesses child labor risk using credible and independent sources, such as ILO reports, the UNICEF Children’s Rights in the Workplace Index and the US Department of Labor List of Goods Produced by Child Labor or Forced Labor. The most relevant suspicion of child labor is the indirect (tier 2+) supply chain of raw materials. This includes the sourcing of cocoa from West Africa, Papua New Guinea and Madagascar.

Child Labor Monitoring and Remediation System (CLMRS)

A CLMRS is a means of targeting prevention, mitigation and remediation assistance to children involved in, or at risk of, child labor, as well as to their families and communities. At Lindt & Sprüngli, the implementation of the CLRMS is defined by its CLMRS Guidance document. At Lindt & Sprüngli, the CLMRS offers a framework for child labor risk assessments, preventive interventions for protecting children’s rights, child labor identification, child labor remediation and activity tracking and reporting.

Demonstration plot

At Lindt & Sprüngli, these are small, selected areas in a farm where field staff show and demonstrate new farming practices.

Employee (headcount)

According to GRI, an employee is an individual who is in an employment relationship with the organization according to national law or practice.

At Lindt & Sprüngli:

Headcount includes: All individuals in direct employment with Lindt & Sprüngli, i.e., salaried, or hourly workers paid by Lindt & Sprüngli, and

Headcount excludes: Employees that perform work that was subcontracted, which is expensed via external fees.

First mile traceability

Fist mile traceability is about documenting where the cocoa batches entering the supply chain have been produced. It includes farmer registration, creation of farm IDs, farm mapping and the establishment of systems to document purchases from registered farmers. The traceability between the farm and the first point of purchase is then established through documentation and creation of batches of cocoa from registered farmers. The cocoa batches sourced can be linked to the farmers and their farms, where the cocoa was produced. First mile traceability corresponds to an origin score of at least 4. Lindt & Sprüngli aims to achieve at least a score of 5 in its Farming Program. Having first mile traceability still allows for massing and mixing of beans at later stages (during transport and/or processing).

For more information, see the IDH Technical Brief on Cocoa Traceability in West and Central Africa.

GPS or polygon mapped

At Lindt & Sprüngli, this is the sum of the farmers whose exact farm location is known because they have been mapped using GPS or polygon. Farm GPS coordinates (made up of two numbers to represent x and y or longitude and latitude) are a unique identifier of a precise geographic location of a farm. GPS points are meant to be taken at the central point of each farm. Farm polygons are used to map the boundaries of the farm to provide a more precise understanding of its location and area. Polygons are created by a sequence of GPS points where the first and last coordinate pair are the same, and all other pairs are unique, forming a closed shape.

Highest governance body

According to GRI, the highest governance body is the governance body with the highest authority in the organization

  • At Lindt & Sprüngli, this is the Board of Directors of the Group

Individual coaching

At Lindt & Sprüngli, this is a personal on-site visit of a field officer to the farmer's farm that lasts at least 30 minutes. Coaching sessions can only be counted if personalized advice is given and recommendations are documented. The annual internal monitoring visit can count as a coaching visit if it takes longer than usual and complies with the above-mentioned criteria (personalized advice and recommendations for continuous improvement, min. 30 additional minutes). A full coaching cycle consists of three visits. Individual training sessions due to non-attendance of farmers in group trainings don't count as individual coaching sessions.

Model farms

At Lindt & Sprüngli, these are selected farms, where farmers apply good practices and are supported with special attention. Model farms are to show the positive effects of applying good practices. Field data is available to demonstrate how practices impact productivity and profitability.

Monitoring visits

At Lindt & Sprüngli, farm level data is collected during monitoring visits.

Number of employees hired

Number of people who have started work in the subsidiary during the reporting period and who fulfill the criteria to be counted as headcount. The number of employees hired excludes employees who changed departments within the same subsidiary.

Parental leave

According to GRI 401-3, parental leave means leave granted to employees on the grounds of the birth of a child.

  • At Lindt & Sprüngli, parental leave is leave granted to employees on the ground of the birth or adoption of a child, unpaid and paid leave added after the official parental leave is considered as parental leave.

Part-time employees

According to GRI, an employee whose working hours per week, month, or year are less than the number of working hours for full-time employees.

  • At Lindt & Sprüngli, any employee working at a workload below 90% is considered a part-time employee.

Shade trees

At Lindt & Sprüngli, shade trees are also referred to as multi-purpose trees. According to the World Cocoa Foundation, multi-purpose trees are tree species included on cocoa farms for primary purposes beyond providing shade. They may be chosen to provide economical and/or ecological benefits to the farm. This may include tree crops such as fruit, palm oil, medicinal, and/or timber trees for later harvest.

Significant instances of non-compliance

When determining the significant instances of non-compliance, the organization can assess the severity of the impact resulting from the instance as well as external benchmarks used in its sector to determine significant instances of non-compliance.

  • At Lindt & Sprüngli, we have defined internal thresholds to determine whether an instance is significant.

Supplier Sustainable Practice (SSP) program

At Lindt & Sprüngli, the SSP Program focuses on packaging suppliers in China and South East Asia, who must adhere to the Supplier Code of Conduct outlining ethical, environmental, social, safety & legal standards.

  • These suppliers are tier 2 suppliers.

Temporary employees

According to GRI, an employee with a contract for a limited period (i.e., fixed term contract) that ends when the specific time period expires or when the specific task or event that has an attached time estimate is completed (e.g., the end of a project or return of replaced employees)

  • At Lindt & Sprüngli, temporary employees include seasonal workers with a fixed number of hours included in their contract.

Traceability models

The following supply chain traceability models are generally used in our approaches to responsible sourcing of agricultural raw materials:

  • Identity preserved: Unique identification of the material and traceability back to its origin, e.g., a specific farm, a farmer group or a mill
  • Segregation: Separation of materials with sustainability characteristics from conventional materials throughout the supply chain, but not necessarily traceable back to its origin
  • Mass balance: Physical mixture of materials with and without sustainability characteristics where the volume of sustainably produced materials corresponds to the volume purchased and reported.

These supply chain traceability models go beyond conventional methods, whereby materials are sourced without origin indication or sustainability characteristics. Lindt & Sprüngli sources the majority of its cocoa volumes through verified sustainability programs, not certification. The reporting of traceability levels for cocoa volumes is based on the definitions provided, whereby the chain of custody is not certified. Deviations from the traceability definitions as defined by certification schemes are possible.

Village Savings and Loan Associations (VSLAs)

According to the World Cocoa Foundation, VSLA is a type of Accumulating Savings and Credit Association formed as a group of 15-30 people, mainly women, who choose to work together and pool their savings. Members can then borrow the money with interest (5 -10%) over an agreed period. At the end of a predetermined term, the overall fund (which is made up of the savings and the interest payments) is paid out to the group members based on their percentage of contribution to the savings pool. At that point, members can decide whether to start a new cycle or to disband. Crucial activities that benefit VSLA members include:

(i) creating and maintaining a group dynamic to grow self-esteem and self-confidence,
(ii) providing access to basic financial services (savings and credit),
(iii) unlocking entrepreneurial potential by learning to identify, create, and manage an income-generating activity,
(iv) providing leadership skills and promoting gender-based dialogues to increase women's empowerment and participation in decision-making in their household and community.

Virgin material

Virgin material, according to the Lindt & Sprüngli definition, is raw material that is not recycled or reused.