Respecting human rights

Lindt & Sprüngli is committed to respecting human rights, as set forth in our Human Rights Policy. Our human rights commitment is guided by international conventions and standards, including the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and core International Labor Standards, the OECD Guidelines for Multinational Enterprises, and the UN Global Compact.

The aim of our human rights due diligence process is to identify, prevent, mitigate, or cease adverse human rights and environmental impacts throughout the organization and our supply chain. It consists of six areas (see figure). Meaningful engagement with relevant stakeholders and rightsholders is a key component of the process. Through our due diligence process, we address our salient human rights topics, as well as those specifically addressed by the UN Global Compact, GRI, and relevant regulations. The following sections describe the human rights due diligence process steps in more detail.

Due diligence process

1. Policy commitment and management

The Lindt & Sprüngli Human Rights Policy outlines the scope of our commitment, our salient issues, how our actions to respect human rights and address our salient issues are integrated into our business, our remedy and grievance mechanisms, and governance. Executives and the Board oversee our human rights due diligence (see Sustainability governance structure) while the Human Rights Working Group (HRWG) and Human Rights Officer have operational responsibility for managing human rights due diligence.

2. Assessing human rights risks and impacts

In our annual risk analysis, we identify, weigh, and prioritize human rights and environmental risks in our operations and direct and indirect (tier 2+) supply chain using a purpose-built tool. We consider the severity (scope, scale, and irremediability) and likelihood of thematic risks, their relevance to business units and supply categories (based on industry knowledge, risk reports, and reported grievances if any), and geographic risks, with input from 27 third-party indices. Our assessment of risks is informed by specialty risk assessments, concerns raised through our grievance mechanism, and engagement with stakeholders. For example, the results of our health and safety site audits inform our aggregate assessment of related risks across our own business areas while supplier assessments and audits impact individual supplier risk assessments, as well as our overall assessment of supplier category risks. 

There are human rights issues that are particularly relevant to our business, industry, and supply chains. Among the broader human rights issues identified, we prioritize the following:

Lindt & Sprüngli is a chocolate manufacturer with production operations in well-regulated countries in Europe and North America, distribution operations around the world, and global sourcing. Accordingly, severity and prevalence of our salient issues tend to be greater in our indirect (tier 2+) supply chain in the sourcing and processing of goods and services, such as raw materials.

GRI and UNGC human rights issues

The GRI, UN Global Compact, and selected regulations seek additional detail on the type of operations and suppliers, including geographic areas, considered to be at significant risk concerning the following:

The right to freedom of association and collective bargaining

We remain committed to respecting our employees’ rights to freedom of association, to join trade unions, and to collective bargaining (see Employment and labor relations). The right to freedom of association and collective bargaining was not identified as a significant risk for Lindt & Sprüngli’s global operations or supply chain. Still, this topic was included in our Supplier Code of Conduct, EcoVadis supplier assessments, and SSP audits as we recognize it as an important employment and labor relations matter in supply chains generally (see Responsible sourcing).

Forced or compulsory labor

Forced or compulsory labor was not identified as a significant risk in our own operations. We nevertheless strive to have good internal controls. Examples of this are providing contracts for employees with the terms and conditions of employment, engaging with works councils and employee union representatives, supplementing our workforce in peak seasons with contract workers via reputable labor agencies, and ensuring workers with foreign nationalities are legally, fairly, and voluntarily employed. The company recognizes that Russell Stover’s participation in a program which employs prison inmates at manufacturing facilities represents increased risk, and warrants additional measures to ensure the prisoners’ rights are respected. As with all employees, their employment is voluntary and they can opt out at any time without repercussion from the company or the state. Furthermore, the resident employees develop useful job skills through their work, while earning a decent wage.

Supply chain service areas such as logistics and construction are considered to have a risk of forced or compulsory labor. Additionally, we have identified a risk in the indirect (tier 2+) supply chain of some raw materials (including cocoa, vegetable fats and oils, sugar and hazelnuts), as well as packaging and IT hardware (for example in factories in Asia). For related preventive and mitigation actions see our Responsible sourcing approach, including SSP audits of indirect Asian packaging suppliers and raw material-specific certifications and sourcing approaches.

Child labor and young workers exposed to hazardous work

For information on this topic please see the section on Child labor.

3. Addressing salient issues

Our actions to respect human rights and address our salient issues are integrated into our business on an ongoing basis, including through:

Policies

For more information on how our Group-wide policies support how we address human rights and our salient issues, see Policy map on salient human rights issues. 

Targets and action plans

The Lindt & Sprüngli Sustainability Plan incorporates targets and action plans for our different salient issues in our operations and supply chain. These include the following defined actions and targets: Responsible sourcing; Rural development; Child labor; Conservation of biodiversity and natural ecosystems; No-Deforestation & Agroforestry Action Plan; Climate; Enabling and motivating working environment; Occupational health and safety. The targets and progress can be found in each respective chapter.

Responsible sourcing approach

Our responsible sourcing approach is informed by the due diligence process and adapted to different categories. It considers social and environmental aspects and applies to both direct and indirect sourcing. Many of our salient issues are incorporated into our Supplier Code of Conduct and Compliance Declaration, EcoVadis Supplier Assessments, and Supplier Sustainable Practice (SSP) Program audits. 

Our raw material risk assessment continues to inform our responsible sourcing approaches for priority raw materials, including the selection of third-party standards. See Responsible sourcing for an overview of the criteria for our priority materials.

Audits and corrective actions

We perform audits – or have third parties perform audits on our behalf – to support the assessment of actual and potential impacts linked to prioritized operations, suppliers, or other relationships (e.g., farmers in our supply chain), and develop corrective actions to prevent, mitigate or end negative impacts.

Own operations: In 2023, we completed an in-depth health and safety assessment program with a third party across our entire Group. We also conducted an EcoVadis assessment for the Lindt & Sprüngli Group, for which we were awarded an EcoVadis Silver Medal in recognition of our 2023 performance. The suggested corrective actions did not include any high priority actions related to labor and human rights.

Direct and indirect (tier 2+) suppliers: EcoVadis assessed suppliers receive individual corrective action plans. We also monitor and strive to improve responsible practices at supplier sites through our Supplier Sustainable Practice (SSP) Program (see Responsible sourcing).

Affected communities: Our monitoring and evaluation approach for the Farming Program is based on multiple complementary elements including child labor focused monitoring, external verification, and impact assessments (for more information, see Rural development). 

Training and capacity building

Own workforce: We communicate our Human Rights Policy to new and existing employees with a reference in Lindt & Sprüngli’s Business Code of Conduct. A mandatory human rights training course for relevant employees will begin rolling out in 2024. The training video introduces the UN Guiding Principles (UNGPs), our commitment and due diligence process, and key topics such as child labor and forced labor.

Direct suppliers: EcoVadis assessed suppliers receive access to human rights training materials and resources to support them in meeting our human rights commitments. The resources and training include guides on how to develop labor and human rights policies and reports, and whistleblower procedures, as well as training on employee health and safety, child and forced labor prevention, and diversity and inclusion.

Through our Lindt & Sprüngli Farming Program we pursue long-term supplier partnerships and co-design and develop the Program with suppliers. This allows us to establish clear expectations with suppliers and work closely with them to review their performance to facilitate continuous improvement. It also allows us, and our suppliers, to support capacity building for farmers over multiple years.

Indirect (tier 2+) suppliers: Our proactive SSP approach is designed to encourage long-term improvements and provide targeted development support, such as dedicated advice on worker safety management systems.

Affected communities: Through the Lindt & Sprüngli Farming Program for cocoa that is implemented by our suppliers, we go deeper into our supply chain by offering training and support for farmers and community members on salient issues (e.g., child labor sensitization and health and safety), providing premiums, investing in infrastructure, and establishing Village Savings and Loan Associations (see Rural development).

Collective action and multi-stakeholder initiatives

Participating in and promoting third-party standards such as EcoVadis and raw materials certifications contributes to creating momentum for collective action in our supply chain. For more information on our partnerships, see our Memberships & Partnerships page. 

4. Ensuring access to effective remedy

Our Speak Up grievance mechanism and remediation process are our primary means of providing access to effective remedy (see Business integrity). In addition to the Speak Up Line, other processes and channels exist to audit or otherwise identify and remediate matters of concern, such as Child Labor Monitoring and Remediation Systems (CLMRS) and the SSP (see also Audits and corrective actions). We expect cocoa suppliers who are implementing the Farming Program to establish a CLMRS in child labor risk countries. Through the CLMRS, families and community members gain a better understanding of risks, and discuss ways of preventing negative impacts, for instance through collaboration. Field staff also conduct follow-up visits to assess the effectiveness of remedies (see Child labor).

5. Evaluating the effectiveness of our due diligence

Lindt & Sprüngli’s Human Rights Policy was approved in mid-2022 and our first annual effectiveness review was conducted in 2023. The review considered the Human Rights Policy, governance, risk assessment, effective action, monitoring and evaluation, access to remedy, communication and reporting, and stakeholder engagement.

Our review considered external indices (e.g., Corporate Human Rights Benchmark), input from expert human rights consultants, complaints raised through Speak Up channels, and progress against the targets and goals set forth in the Lindt & Sprüngli Sustainability Plan. 

Our evaluation was prepared by the Human Rights Officer and Human Rights Working Group. It was reviewed by members of Group Management and by the Sustainability Committee of the Board. The review reflected good progress in the first year of the Human Rights Policy coming into effect, as well as opportunities for continuous improvement. Select actions resulting from the review include a further rollout to subsidiaries in 2024 of processes established in 2023, enhanced external reporting (as reflected in this Sustainability Report), and developing a strategy and guidelines for human rights impact assessments.

6. Reporting and communication

Lindt & Sprüngli’s Sustainability Report is our primary annual public report on our human rights due diligence efforts, action plans, and progress.

The Lindt & Sprüngli Human Rights Policy is available to all workers and external stakeholders on our corporate website with translations into six languages. We further communicate it to suppliers with a reference in the Supplier Code of Conduct and notification on our supplier management system. In 2022, we put a process in place to have all existing suppliers sign our updated Code, which refers to the Human Rights Policy. The Code states that suppliers take responsibility to implement the requirements and necessary due diligence processes with their own employees, agents, temporary workers, subcontractors, homeworkers, suppliers, and sub-suppliers with whom they work in the delivery of goods and services to Lindt & Sprüngli.

Engaging with stakeholders

In our due diligence processes, we aim to consider the parties and/or persons potentially and actually affected and/or their legitimate representatives.

We annually engage with works councils and employee union representatives. Every three years we also conduct global employee surveys. These request feedback on matters such as working conditions and compensation, and diversity and inclusion (see Performing together).

Our Lindt & Sprüngli Farming Program includes monitoring and evaluation based on annual internal monitoring with the goal of covering all cocoa farmers to assess progress made on more sustainable farming practices and better livelihoods. Annually, an external verification is conducted to assess compliance with Program or certification requirements. Informal feedback from farmers during this process can reveal opportunities to improve our Program (see Improving livelihoods). For example, in a number of programs we changed from in-kind contributions to cash premiums. The farmers’ desire to have more personalized training led to the coaching component of the Program. Based on feedback from spouses, we are currently adapting the coaching to better accommodate their specific needs.

Child labor

Lindt & Sprüngli strongly condemns all forms of child labor. In agricultural value chains, especially in the cocoa sector in West African countries, child labor is a persistent and complex challenge. It requires intense, continuous, and collaborative efforts from all stakeholders active in the sector. At Lindt & Sprüngli, addressing child labor is a priority and we are firmly committed to avoiding it whenever possible. This is a key focus of our Farming Program in our cocoa supply chain.

Fulfillment of duty of care in accordance with Article 964j-l of the Swiss Code of Obligations

Lindt & Sprüngli conducts risk-based human rights due diligence on the company’s own operations and those in its supply chain. This includes assessing the risk of well-founded suspicion of child labor for supplied goods and services (Respecting human rights). The following section addresses specific due diligence and reporting obligations in the area of child labor in fulfillment of our duty of care in accordance with Article 964j-l of the Swiss Code of Obligations.

Examination of suspicion of child labor

Lindt & Sprüngli purchases products from origins with a UNICEF Children’s Rights in the Workplace Index risk classification score above “Basic” according to the index published in June 2023. We therefore use a risk-based approach to check for reasonable suspicion of child labor risk in relation to specific products or services. To do so, we isolate suppliers in categories and industries of goods or services where a risk of child labor has been identified. We then further assess sub-categories in detail, such as individual raw materials, 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. We determine risk levels using criteria from the UN Guiding Principles (severity relative to scale, scope, and remediability, as well as probability). Finally, we determine risk levels for individual suppliers. Suppliers’ primary location and raw material country of origin information is considered in this phase where available.

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, coconuts and coconut oil for example from the Philippines, hazelnuts from Türkiye, palm oil from Indonesia, vanilla from Madagascar, as well as packaging from Asia.

We also assess the risk of child labor in our own operations as part of our due diligence process. Child labor, young workers exposed to hazardous work, and the worst forms of child labor were not identified as a significant risk in our own operations. This is because Lindt & Sprüngli operates primarily in well-regulated markets and with good internal controls such as age verification for employees. The company does employ young workers under the age of 18, for example apprentices, trainees and interns, but all are above the local legal working age. The assessment will be repeated annually.

Child labor due diligence, risk management and traceability

Our Human Rights Policy, Supplier Code of Conduct, and the Farming Program Verification Guidance and Child Labor Monitoring & Remediation System Guidance Document collectively constitute our Child Labor Policy (see Policy map on salient human rights issues).

The outputs of our child labor risk assessment are used to inform Lindt & Sprüngli’s risk management system, including our due diligence approach and preventive and mitigation actions (see Targets and action plans and Responsible sourcing). We also focus on enhancing traceability in our supply chains by applying a risk-based approach. Information on all our tier 1 suppliers, as well as the goods and services they provide, are recorded in procurement systems. We record internally, and plan to disclose publicly during the course of 2024, traceability information for cocoa, including tier 1 suppliers of cocoa sourced and farmer groups participating in the Lindt & Sprüngli Farming Program. The current level of supply chain traceability depends on the sourcing arrangement and complexity of the cocoa product sourced.

Concerns about child labor in our supply chain can be reported via our Speak Up grievance mechanism, an additional process and channel to audit or otherwise identify and remediate matters of concern (see Ensuring access to effective remedy).

Reducing the risk of child labor in the cocoa supply chain

Child labor in cocoa is a systemic issue rooted in poverty, lack of awareness, a shortage of adult labor, and poor infrastructure such as an absence of educational facilities in cocoa-producing villages. We are aware that we do not have all the answers on how to prevent abuses of children’s rights in our supply chains. We are however fully engaged in working to continuously enhance the effectiveness of our systems in order to address this risk in our cocoa supply chain and beyond.

Lindt & Sprüngli's cocoa suppliers, in countries of origin with a risk of child labor, are expected to effectively protect children’s rights along our supply chain by implementing a 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. 

Convinced that addressing child labor in the cocoa sector effectively starts with having clearly defined processes and good management systems, we developed a CLMRS Guidance Document for suppliers implementing the Lindt & Sprüngli Farming Program. The document was launched in 2021 and describes more specifically our expectations of, and proposed approach to, the prevention, monitoring, and remediation of child labor. With the implementation of a CLMRS that meets our requirements as an integral part of the Farming Program, we set out clear targets related to the protection of children’s rights in contracts for suppliers, including resources dedicated to CLMRS implementation. For suppliers not involved in our Program, we rely on CLMRS guidance, implementation and verification through Rainforest Alliance certification.

We aim, by 2025, for all of our cocoa from child labor risk countries to be covered by a CLMRS that is being rolled out or implemented. In 2023, a total of 66.1% of cocoa from child labor risk countries was sourced from locations where this was the case. In Ghana and Côte d’Ivoire, 88,200 farming households, all of them participants of the Lindt & Sprüngli Farming Program, were covered by a CLMRS. Suppliers in Papua New Guinea and Madagascar were onboarded to our CLMRS in 2023, and are currently rolling this out to cover 7,200 households.

Since the start of implementation in 2022, supplier awareness has increased through training and capacity building of field staff. Furthermore, the risk assessment required as part of the CLMRS enabled unannounced visits to target high-risk households. As a result, we have observed better identification of child labor and respective remediation actions. This demonstrates the enhanced effectiveness of the system adopted by suppliers. The more efficient and effective our identification system, the better we can work with suppliers on remediation and prevention.

CLMRS process

1. Farming household and community risk assessment

Household and community risk assessments are the starting point of the CLMRS. In 2023, we continued to support five suppliers in Ghana and Côte d’Ivoire in implementing the CLMRS process and started the process with three suppliers in Papua New Guinea and Madagascar. As a first step, household and community data is collected and analyzed by our suppliers to identify communities and households with high child labor risks. Some of the key risks are the lack of school infrastructure, lack of access to safe drinking water, and health facilities, as well as household-specific risk factors such as farm size. As per our guidance, suppliers should use this data to inform future investments in preventive actions at the supply chain and community level, implemented as part of the Program. The results to date indicate that significant investment by all actors, including governments, the private sector, and NGOs, will be needed to reduce child labor risks.

2. Preventive interventions

As an initial preventive measure in the supply chain, suppliers are expected to raise awareness of the protection of children’s rights as part of the mandatory training curriculum and a minimum requirement of the Lindt & Sprüngli Farming Program. In addition to training, staff from our suppliers visit high-risk Farming Program households to create and raise individual awareness to be able to better identify and avoid child labor. Beyond raising awareness, Farming Program farmers receive additional support to improve their resilience and to address the root causes of child labor. This includes investments into community infrastructure, such as schools and boreholes, as well as access to adult labor through community services groups (see Community development and infrastructure investments).

Since child labor is a systemic issue, it cannot be solved on a broader scale solely by managing and dealing with individual cases in the supply chain. For this reason, we expect suppliers to use the collected CLMRS risk data to decide on and target Program interventions that ensure support for more systemic, preventive, community-based measures. Sensitizing communities and supporting community child protection committees are first-step preventive measures. In 2023, we financially supported the creation of new Community Child Protection Committees (CCPCs) in communities at risk.

In 2023, based on results from the risk assessments, we supported suppliers in developing action plans and investing in infrastructure to build resilience and serve the households and communities most in need. Particular attention was given to school-based interventions, including investments in education infrastructure. In the reporting year, the Program supported the refurbishment of five schools, bringing the total to 50 schools, benefiting approximately 9,700 children to date.

Our recognition of the need for collective action to prevent child labor at a more systemic level was instrumental in our decision to join the Child Learning and Education Facility coalition in 2022 (see Rural development).

3. Identification of children’s rights abuses

We guide suppliers to implement a risk-based approach to identify child labor within our cocoa supply chain. First, suppliers in child labor risk countries are expected to conduct child-labor focused monitoring visits for all Farming Program households with risk potential for child labor and a minimum portion of Farming Program households overall. This requirement is being rolled out and, in 2023, a total of 16,200 of these visits took place. Second, child labor questions are an integral part of the internal monitoring of all farmers as per our requirements. Finally, suppliers as well as Lindt & Sprüngli have grievance mechanisms through which child labor can be reported by any stakeholder. 

To support child labor monitoring at the community level, the Program provides indirect support by helping to establish a monitoring mechanism, owned by the CCPCs. This includes a grievance mechanism and CCPCs are encouraged to share data with regional government institutions.

4. Cease or mitigate abuses of children’s rights

Suppliers are required to operate a case management system to manage identified child labor. Such a system aims to provide remediation support for concerned families to address the immediate issues of children in need. It is combined with follow-up visits to assess the success of case remediation.

Remediation support at an individual level can include engagement with parents, the provision of school uniforms, birth certificates or funds for school fees, and, as a last resort, referral to competent local authorities. In 2023, suppliers reported that more than 800 children within the Farming Program received remediation support and reported to no longer engage in work classified as child labor at the two most recent follow-up visits conducted by Program staff.

Child labor identified outside of our Farming Program at community level is remediated through awareness-raising visits by the CCPC, or referral to national institutions.

5. Track and report

Suppliers are requested to document their processes, collect and analyze data, record activities conducted and report on both activities and effective remediation.

Outlook

Child labor is a structural, socio-economic issue that cannot be solved by a single supply-chain actor in isolation. Varying local and cultural specifics also need to be taken into account.

Over the coming year, we will continue to work with our suppliers to implement CLMRS systems which comply with our requirements. We will carry on supporting suppliers in conducting community and household risk assessments, requiring them to increasingly use this data to make preventive community-based investments where these create the most impact. Furthermore, our external verification partner Earthworm Foundation has integrated CLMRS-related questions into its assessment.

In addition, we will actively participate in sector initiatives and, for example, support the improvement of quality education through engagement in the CLEF coalition in Côte d’Ivoire.

Reducing the risk of child labor in other priority raw material supply chains 

Our Responsible Sourcing Roadmap 2025 covers twelve priority materials that we want to source or start sourcing responsibly by 2025, including those identified as having an elevated risk of child labor (see Responsible sourcing).

The supply chain in the Turkish Black Sea region, where most of the world’s hazelnut harvest originates, has high risks related to labor conditions such as the health and safety of farm workers, child labor, and seasonal workers’ working and accommodation conditions. To address child labor in the seasonal workforce, we support investments in Child Labor Monitoring and Remediation Systems (CLMRS) and preventive measures such as making summer schools available to seasonal workers’ children.

As the coconut supply chain in select origins is associated with an elevated child labor risk, we aim to source coconut oil through a responsible sourcing program, which encompasses a suitable certification scheme option. We will initiate the definition of an associated program, covering child labor, beginning in 2024.

Palm oil from Indonesia is also associated with an elevated child labor risk. Since 2015, Lindt & Sprüngli has sourced 100% of its palm oil, palm kernel oil, and their fractions with Roundtable on Sustainable Palm Oil (RSPO) certification. The RSPO standard includes criteria prohibiting child labor and requiring policies to protect children and to provide remediation.

In 2023, we began sourcing Rainforest Alliance certified vanilla, and we aim to reach 100% by 2025. Child labor, forced labor, discrimination and workplace violence and harassment are not tolerated on Rainforest Alliance certified farms. The standard includes an “assess-and-address” model which requires certificate holders to have specific measures to monitor, mitigate, and remediate cases of these issues.

The risk of child labor in the packaging supply chain is primarily associated with factories in Asia. Through our SSP Program, we audit supplier sites with an emphasis on social and environmental aspects, including child labor.