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 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 CLMRS 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.

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 Ghana, Côte d’Ivoire, Papua New Guinea, and Madagascar.

Climate risks

  • Transition risk: Business impacts that arise from societal and economic shifts towards a world where climate change is reduced.
  • Physical risk: Impacts of climate hazards on physical assets, operations, and broader value chain.

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

First mile traceability

First 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 the farms where the cocoa was produced. First mile traceability corresponds to an origin score of at least 4. Lindt & Sprüngli aims to achieve a score of at least 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.

Five freedoms of animal welfare

  • Freedom from hunger and thirst – by ready access to fresh water and a diet designed to maintain full health and vigor.
  • Freedom from discomfort – by the provision of an appropriate environment including shelter and a comfortable resting area.
  • Freedom from pain, injury or disease – by prevention or through rapid diagnosis and treatment.
  • Freedom to express normal behavior – by the provision of sufficient space, proper facilities, and company of the animal’s own kind.
  • Freedom from fear and distress – by the assurance of conditions that avoid mental suffering.

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, for a minimum of 30 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.

Key Biodiversity Areas (KBAs)

Defined by the IUCN as sites contributing significantly to the global persistence of biodiversity. KBAs are identified by a globally agreed criteria set out by the Global Standard for the Identification of Key Biodiversity Areas (IUCN 2016).

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.

Part-time employee

According to GRI, a part-time employee is 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.

Scenario analysis

Climate scenarios are projections of possible futures used to assess future vulnerability to climate change-related events. Scenario analysis aims to provide detailed insights into those potential future impacts of climate-related physical and transition risks and opportunities and guide decision-making. They are hypothetical constructs, not forecasts, predictions, or sensitivity analyses.

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 or other 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 quantitative and qualitative 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, and legal standards. At Lindt & Sprüngli, these suppliers are tier-2 suppliers.

Sustainable farming practices

Sustainable farming practices may include:

  • Applying Good Agricultural Practices (GAP): these are agricultural methods that include pruning, pest, and disease management, weed management, shade management, and harvest management that are intended to improve cocoa tree health and cocoa production while maintaining ecosystem services such as soil health.
  • Ensuring the efficiency of production methods, including labor allocation, input management, and adherence to rules and guidance concerning the use potentially harmful chemicals.
  • Diversifying the farming system by cultivating more than just cocoa to enhance resilience of the farmer.

Temporary employees

According to GRI, a temporary employee is 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

For Rainforest Alliance Certified volumes, Rainforest Alliance traceability definitions apply. For not certified Farming Program volumes, we apply the definitions below. Deviations from the traceability definitions as defined by certification schemes are possible.

  • Identity Preserved: Unique identification of the material and traceability back to its origin, e.g., a specific farm, a farmer group, or a mill. For cocoa beans, Lindt & Sprüngli has a traceable supply chain which is considered as “Mixed Identity Preserved” or “Identity Preserved.” “Identity Preserved” means our cocoa beans are traceable from the first point of purchase to our factory doors, and must be supplied from registered Farming Program farmers. Our suppliers work with designated farmer groups that participate in the Lindt & Sprüngli Farming Program, and we aim to support these groups over multiple years. For cocoa beans, we conduct in-house traceability checks to ensure the volumes delivered come from the farmers of the Farming Program.
  • Mixed Identity Preserved: Refer to the Rainforest Alliance definitions.
  • Segregation: Separation of materials with sustainability characteristics from conventional materials throughout the supply chain, but not necessarily traceable back to its origin. For cocoa butter sourced from suppliers implementing the Farming Program, we aim for a physical traceability approach based on Segregation. When cocoa butter is delivered as “Segregated,” beans delivered by the Farming Program farmer groups to the suppliers get mixed, at supplier level, with other beans originating from certified farmer groups.
  • 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.

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; and

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.