Foreword from the Chairman and CEO
A vision beyond 2025
Our commitment to contributing to a more sustainable tomorrow is a key element driving our company’s actions and ambitions. Having a clear vision of where we would like to be by, and beyond, 2025 is crucial for our success and important for defining the relevant steps to achieve our goals. On this journey, we navigate continuous change and new challenges, but our determination to progress along it, is consistently strong.
Various new developments have shaped the context of our sustainability activity during the reporting year. The regulatory landscape, for example, has evolved rapidly. This includes heightened human rights regulations around the world as well as regulations aimed at combating adverse effects of climate change and preserving biodiversity, such as the European Union’s new deforestation law.
We are committed to optimizing the impact that we have – and will have – on the societies, environments, and economies where we are present. In 2023, we strengthened our capabilities and resources at both headquarters and in our markets to fulfill existing and future demands for sustainability regulation, including transparent non-financial reporting. Investment in sustainability has been made in numerous departments, and reflected by further development of our corporate governance. The implementation of our sustainability strategy comes under the supervision of the highest governance bodies, and in 2023 the Sustainability Committee of the Board met once per trimester.
A major milestone reached in 2023 was the validation of our science-based climate targets for 2030 and 2050 by the Science Based Targets initiative (SBTi). These will guide our business practices with the objective of reaching net-zero emissions. By leveraging opportunities and innovations to reduce our carbon footprint across our product portfolio, operations and value chain, we aim to achieve ambitious emission-reduction goals, aligned with those of the Paris Agreement. The publication of our Deforestation Policy in June 2023 represented another major step forward in our efforts to protect biodiversity in our primary deforestation-linked supply chains. Its scope extends beyond cocoa, to other raw materials including paper and pulp-based packaging.
Beyond our contribution to an intact environment, people are at the heart of our business, from the farmers we source from, through our employees around the world, to the consumers who enjoy our final products. In 2023, we made further progress towards our target of sourcing all cocoa products through sustainability programs by 2025, achieving more than 72% for all cocoa products, whereof 100% for cocoa beans. We advanced our due diligence processes in line with our commitment to respect human rights, and continued to uphold high standards for business integrity. To reflect the importance attached to the people within our organization, we have elevated our Chief Human Resources Officer (CHRO) role to the Group Management. In this position, our CHRO will drive the implementation of our new Diversity, Equity, and Inclusion (DEI) framework globally, linking it to specific targets and metrics.
In 2023, we reviewed our targets including aligning them with new policy commitments as well as new regulations and developments in the markets. To refine our reporting process and meet future requirements, we have made great strides in our internal reporting and are in the process of implementing new systems and processes, as well as updating methodologies for optimal clarity and accuracy.
Our journey to a more sustainable future continues, and over the next two years our sustainability strategy and targets beyond 2025 will be a primary focus. We will address issues that we impact, and those that impact us. For the first time, in 2024, our climate targets action plan will be integrated into our daily business. We plan to introduce responsible sourcing standards for our remaining priority raw materials, including dairy and almonds, while working towards the sourcing goals already declared.
With strong, collaborative teams and highly dedicated employees on board, we are preparing for the road ahead, and keen to derive further learnings from the changes and challenges that inevitably lie ahead of us in this dynamic sector.
Ernst Tanner
Executive Chairman of the Board of Directors
Adalbert Lechner
CEO Lindt & Sprüngli Group