Cocoa farmers discussing cocoa tree (Photo)

Improving livelihoods

Through a close collaboration with our suppliers that is rooted in trust, we aim to contribute to improving the lives of the people in our value chain. To achieve this, we pursue a combination of approaches based on the risks identified in our supply chain.

Why we care

We want to support people and the natural environment along our supply chain by contributing to decent and resilient livelihoods, enhancing rural development, and promoting the conservation of biodiversity. The health, safety and wellbeing of farmers and their families, as well as other workers in affected communities along our supply chain, are at the center of our responsible sourcing activities. We aim to have a positive presence in the lives of our supply chain partners, while minimizing and, wherever possible, eliminating negative impacts on the environment. We are committed to sourcing both agricultural and non-agricultural materials in a responsible, fair and transparent manner.

A reliable supply of raw and packaging materials is essential to the success of our business. Lindt & Sprüngli knows that the production, processing, and transportation of these materials can have significant social and ecological impacts, for instance in relation to child labor, labor relations, climate change, and deforestation. With this in mind, we are committed to contributing to the preservation and improvement of the environments and communities we source from.

We are also aware of, and closely monitor, the developing regulatory focus on supply chain risks such as deforestation and human rights (for more information refer to the Contributing to an intact environment and Business integrity and human rights chapters). Our due diligence processes aim to ensure regulatory compliance.

How we care

Our responsible sourcing approach consists of five building blocks (see infographic). Our Supplier Code of Conduct forms the basis of our supplier cooperation. In addition, we conduct assessments and supplier audits to measure our suppliers’ sustainability performance. Based on a comprehensive risk assessment we have identified twelve priority raw and packaging materials for which we have defined a specific responsible sourcing approach.

Our responsible sourcing approach

Our responsible sourcing approach (graphic)

In 2023, we updated our internal Responsible Sourcing Guidance document. This specifies how all of the raw and packaging materials in our Responsible Sourcing Roadmap 2025 should be sourced. It also contains information on third-party sustainability certification or verification where applicable.

Our responsible sourcing approach, including selection of third-party standards, continues to be informed by our risk assessment of raw and packaging materials. We also consulted stakeholders linked to our raw material value chains in the development of our responsible sourcing approach. Our responsible sourcing approach prioritizes improving the livelihoods of rural producers, and contributing meaningfully to rural development and an intact, biodiverse environment in the regions we source from. To achieve this, we expect our suppliers to respect human rights, uphold environmental, legal and labor standards, support agricultural communities, reduce the environmental impacts of sourcing raw materials, and ensure transparency and traceability along our supply chain.

To monitor and address salient issues within our global supply chains, we evaluate whether current measures are sufficient through regular supplier visits, collecting feedback from local subsidiaries, and tracking our Key Performance Indicators (KPIs). Emerging issues are addressed in regular Group procurement update calls in which local subsidiary procurement heads participate. For details on our governance in relation to responsible sourcing, please see the Sustainability governance structure section in the Strategy chapter.

Our Improving livelihoods related policies and documents

Responsible sourcing

Social, economic and environmental factors inform our approach to responsible sourcing. This embraces direct and indirect suppliers. As a chocolate company we prioritize the responsible sourcing of cocoa and other raw and packaging materials.

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Rural development

The Lindt & Sprüngli Farming Program is our means of supporting cocoa farmers and their families in building sufficient and resilient livelihoods.

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