Rural development

Further information on the Farming Program can also be found in the Respecting human rights chapter and in the Biodiversity and ecosystems chapter.

Impact, risk, and opportunity management

We address our impacts, risks, and opportunities related to cocoa sourcing through our policies, by adopting principles for responsible cocoa sourcing, and taking actions to achieve the targets in our Sustainability Plan.

Our material impacts, risks, and opportunities

According to our Double Materiality Assessment (DMA), “Employment and labor relations in the supply chain,” “Engaging with affected communities,” “Employee health, safety, and wellbeing in the supply chain,” and “Equality, diversity, and inclusion in the supply chain” are material topics. We have identified material impacts and risks mainly in our upstream cocoa value chain in relation to these topics.

Most material impacts in the cocoa sector relate to human rights, specifically child labor and low farmer incomes. The majority of impacts related to climate and biodiversity involve deforestation, land-use change, ecosystem degradation and biodiversity loss, and climate change.

For information on risks in the upstream cocoa value chain, refer to Impact, risk, and opportunity management in the Responsible sourcing chapter.

Our related policies and documents

Our requirements and actions in the cocoa supply chain are guided by relevant Lindt & Sprüngli policies, such as the Supplier Code of Conduct, the Human Rights Policy, and the Deforestation Policy. The Lindt & Sprüngli Farming Program is the means by which we aim to address key impacts and risks in the cocoa supply chain.

Policies and documents specific to the Farming Program are issued as needed and apply to all the suppliers implementing the Program on our behalf, including:

• Theory of Change: The Farming Program interventions are based on an overarching Theory of Change, which is aligned with the material impacts in the cocoa supply chain, and outlines our intervention logic, including the outputs and the desired outcomes and impact. Based on this Theory of Change, detailed Farming Program activities are defined with suppliers. This allows us to adapt the Farming Program to the local context, while working within a global framework.
• No-Deforestation & Agroforestry Action Plan (see Biodiversity and ecosystems)
• Child Labor Monitoring and Remediation System Guidance Document (see Respecting human rights)
• Verification Guidance: This guidance describes and operationalizes our supplier requirements for the companies implementing the Farming Program. It also describes our approach to monitoring, data collection, and continuous improvement. The guidance applies to non-certified Farming Program supply chains only.
• External Assessments Methodology: This document describes the annual third-party (Earthworm Foundation) verification methodology of suppliers delivering non-certified cocoa beans under the Farming Program. External verification of other responsible sourcing programs is governed by the requirements of the respective programs.

Lindt & Sprüngli principles for responsible cocoa sourcing

Our approach to responsible sourcing of cocoa is derived from five principles (see info box below). Based on these, we aim to address the most material impacts in the cocoa supply chain focusing on three main objectives: increasing the resilience of farming households, reducing the risk of child labor, and conserving biodiversity and natural ecosystems.

In 2024, we continued to increase our share of cocoa sourced through the Farming Program or other responsible sourcing programs. Due to lower availability of cocoa in the reporting year, the share of cocoa sourced through the Farming Program decreased while cocoa sourced through other responsible sourcing programs increased. Furthermore, we worked on refining our responsible cocoa sourcing approach and made progress from a strategic perspective.

1. Pursuing long-term supplier partnerships

Long-term collaboration with strategic cocoa suppliers who are committed to partnering and working with Lindt & Sprüngli to deliver on our sustainability commitments is crucial in our responsible sourcing approach. Our supply agreements include a detailed description of how the Lindt & Sprüngli Farming Program is planned to be implemented in the specific supply chain across a defined period of time.

2. Deploying our own responsible sourcing program for cocoa

Since the social, environmental, and economic issues in the cocoa sector are interrelated, actions in these areas should aim to follow a holistic approach wherever possible. Through the Lindt & Sprüngli Farming Program, we implement actions under one single program aiming to contribute to the creation of decent and resilient livelihoods for cocoa farmers and their families and to encourage more sustainable farming practices. To implement the Farming Program, we work closely with our suppliers and other external partners (see Working in partnerships and engaging in collective action through multi-stakeholder initiatives within this chapter).

Regarding stakeholder engagement, farmers participating in the Farming Program can raise any concerns through suppliers’ grievance channels or the Lindt & Sprüngli Speak Up Line. Supplier staff and local Lindt & Sprüngli representatives also regularly collect feedback as part of the farmer engagement and community development work. During the external assessment by the Earthworm Foundation and the KIT Royal Tropical Institute impact assessments conducted in Ghana, farmers have the opportunity to share their perspectives and concerns during interviews and focus group discussions. In the future, we aim to implement a more systematic process to engage with farmers, farmer groups, and communities to inform program design.

3. Establishing traceable and transparent supply chains

Since the introduction of the Farming Program in 2008, physical traceability of cocoa has been a key principle of our responsible cocoa sourcing efforts. In 2024, we started adapting our traceability processes and systems in preparation for the EUDR.

First mile traceability: Traceability from the farm to the first point of purchase

Establishing traceability from the farm to the first point of purchase is the initial step in the implementation of the Farming Program. As part of the Farming Program, all participating farmers are registered, farm GPS information is taken, and baseline data about the farm and household is collected. Additionally, suppliers are required to ensure they have externally verified or certified traceability processes and systems in place.

Cocoa supply chain steps

Supply chain traceability: Traceability from the origin to our factory doors

Supply chain traceability refers to the traceability along the supply chain up to our factory doors (for more information on different traceability definitions, see section 2.2 of the Technical Brief of IDH).

We use different traceability models depending on the cocoa product. For cocoa beans, with the exception of a test delivery, Lindt & Sprüngli has a traceable supply chain which is considered as “Mixed Identity Preserved” or “Identity Preserved” (see Traceability models in the Glossary). For cocoa butter sourced through the Farming Program, we aim for physical traceability based on Rainforest Alliance Certified “Segregated.” For cocoa butter not purchased through the Farming Program, as well as cocoa powder and chocolate mass, we purchase Rainforest Alliance Certified “Mass Balance” products.

In 2024 – based on bean equivalents – 42.6% of all cocoa products were sourced as “Identity Preserved” and 3.4% were sourced as “Mixed Identity Preserved.” Additionally, a total of 14.9% of all cocoa products were sourced as “Segregated” and 23.3% as “Mass Balance.” In 2024, more “Mass Balance”-certified cocoa was purchased than in previous years, due in part to closing the gap towards our 100% responsible sourcing target as well as to limited availability of Farming Program volumes as a result of reduced cocoa production in West Africa.

4. Continuously improving our responsible sourcing program for cocoa based on monitoring and external verification

The Farming Program builds on the principle of continuous improvement. For this purpose, we monitor compliance with the Farming Program requirements and let the program be externally verified or certified.

Our monitoring and evaluation approach is based on multiple complementary elements. These include target setting, monitoring of outputs, a review of program quality, verification of program implementation, as well as periodic impact assessments. We evaluate these elements related to both the farm and the implementation partner.

Internal monitoring of farmers participating in the Farming Program

As defined in our Farming Program Verification Guidance, annual internal monitoring of the cocoa farmers aims to assess their compliance with Farming Program requirements and evaluate their progress. Results differ between origin and supplier, and challenges are addressed for each supply chain individually.

External verification and certification of our responsible sourcing program for cocoa

Cocoa sourced through the Farming Program or other responsible sourcing programs is subject to certification or annual external verification by an independent third party.

We are in the process of transitioning all volumes, including Farming Program volumes, to Rainforest Alliance Certification. In 2024, we completed the process for cocoa butter and started the process of transitioning to Rainforest Alliance Certification for all farmer groups delivering beans via the Farming Program. The first certified volumes were delivered at the end of 2024, with more expected in 2025.

Where multi-year supply agreements are in place and the Farming Program is being implemented, certification is not intended to replace the program but serves as a basis and external verification scheme. For not yet certified cocoa beans, the Earthworm Foundation conducts external verification based on the Farming Program External Assessment Methodology.

Assessments to measure the impact of the Farming Program

In 2019 and 2023, we conducted an impact assessment of the Farming Program in Ghana, which included a review of the topic of farmer income, with the KIT Royal Tropical Institute. In 2024, several internal workshops took place to discuss results and implications of the impact assessment for future Farming Program design.

Over the coming years, we aim to further strengthen our project planning, monitoring, and evaluation approach with a focus on enhanced data collection and analysis to better assess the effectiveness of the Farming Program activities.

5. Working in partnerships and engaging in collective action through multi-stakeholder initiatives

Partnerships with expert organizations and service providers are key to reaching our goals. We work with a range of strategic and technical partners to help implement, monitor, and continuously improve the Farming Program. They support us as researchers, technical consultants, verifiers, implementation partners, and providers of monitoring and data services and tools.

Our partners include the Earthworm Foundation, Helvetas, Satelligence, the Rainforest Alliance, and the KIT Royal Tropical Institute. In 2024, we established new partnerships, including with IDH, Earthshot Labs, and Agro-MAP. Beyond our direct partnerships with external organizations, our suppliers also collaborate with third parties on the implementation of the Farming Program.

Individual stakeholders’ ability to drive systemic change is limited. That is why we actively engage in multi-stakeholder initiatives such as national initiatives for sustainable cocoa (ISCOs), the International Cocoa Initiative (ICI), and the Cocoa & Forests Initiative (CFI). We also engage in collective action at landscape level (see Biodiversity and ecosystems). To strengthen our collective action on child labor prevention, we belong to the Child Learning and Education Facility (CLEF).

Over the coming year, we plan to pursue our efforts to establish new and strengthen existing partnerships and continue our active participation in multi-stakeholder initiatives. This underlines our recognition of the increasing importance of mutual learning and the exchange of best practices, sector alignment, and innovation.

Costs for responsible sourcing of cocoa

In CHF (paid to suppliers and other partners)

In 2024, the financial resources invested in responsible sourcing of cocoa increased from a total of CHF 29.8 million in 2023 to CHF 33.6 million (+12.8%), in line with increased volumes of cocoa sourced as verified or certified.

In 2024, the Lindt Cocoa Foundation co-funded the Farming Program in Ghana, Madagascar, and Ecuador, contributing an additional CHF 1 million to farmers and communities in line with its mission to promote sustainable farming practices and support communities in cocoa producing regions.

Our actions and progress in the Farming Program

The Lindt & Sprüngli Farming Program consists of a complementary set of actions addressing the economic, social, and environmental aspects of cocoa production, with the aim of contributing to three main objectives.

Increasing the resilience of farming households

The Lindt & Sprüngli Farming Program aims to contribute to building resilient livelihoods for farmers, their families, and farming communities. We are addressing this through a combination of measures with the aim of improving the income situation overall, recognizing that poverty among cocoa households is one of the underlying root causes of the cocoa sector’s challenges.

Increasing farm productivity

Farming Program suppliers provide trainings to farmers to improve adoption of good agricultural, social, environmental, and business practices. This includes group training, as well as individual coaching. In 2024, 770 field staff working for the Farming Program delivered group training to 100,000 farmers. Individual coaching sessions complement the training by providing tailored advice to farmers, with the objective of increasing adoption of good agricultural practices. A total of 18,200 farmers received individual coaching in the reporting year.

Additionally, we financially support the provision of farming materials and services for farms. Selected farmers gain assistance with access to productive and disease-resistant cocoa seedlings, shade trees, and farming equipment. In 2024, 366,000 cocoa seedlings were distributed for farm rehabilitation. In Ghana and Côte d’Ivoire, we financially support community service groups (CSGs) which offer subsidized pruning services for Farming Program farmers. In 2024, suppliers reported that 190 CSGs were supported, leading to 9,350 hectares of cocoa farms being pruned.

Payment of cash or in-kind premiums

The price of cocoa is an important element in efforts to contribute to a decent standard of living for cocoa farmers and their families. The price we pay for cocoa is determined by the market price. The farmgate price, i.e., the price a farmer receives for the cocoa, is determined either by the local market price, or, in Ghana and Côte d’Ivoire, by the government. Farmgate prices are usually lower in regulated markets compared to unregulated markets.

In addition to paying the market price, through suppliers we provide farmers in the Lindt & Sprüngli Farming Program with cash or in-kind premiums. We also support the efforts of the governments in Côte d’Ivoire and Ghana with a Living Income Differential (LID) of USD 400 per metric ton of cocoa beans. We have purchased our cocoa from Ghana and Côte d’ Ivoire with LID pricing since its introduction in 2019 and will continue to do so.

Supporting income diversification

Income diversification is key to promoting women’s empowerment and increasing the income of smallholder cocoa households. Our suppliers’ staff train Farming Program households in on-farm and off-farm diversification, and selected farmers benefit from the creation of Village Savings and Loan Associations (VSLAs).

In 2024, our suppliers’ field staff trained 11,700 individuals in additional Income Generating Activities (IGAs), of which 2,340 were women. The trainings include cultivating food crops and vegetable gardens, pig and poultry farming, and bee keeping, depending on the local context. The objective is to help farming families build additional income sources that are less seasonal than the income earned from cocoa production.

VSLAs were identified by farmers and suppliers as a popular intervention. They create a safety net and savings culture, and in combination with IGAs, they can have a positive effect on the number of income sources and reduce dependency on income from cocoa. In 2024, the number of functioning VSLAs established through the Farming Program had increased from 640 in 2023 to 790 in 2024, embracing 20,400 members.

Investing in community development and infrastructure

Our goal is to create conditions for improved livelihoods for farming families and community members. With the Farming Program investments, 18 schools were built or renovated in 2024, bringing the total number of new or refurbished schools to 75 since the launch of the Farming Program in 2008 across all origin countries. The number of water systems and boreholes constructed and maintained since the start of the program was 260 in 2024. In total, approximately 203,000 community members now benefit from these investments in water infrastructure.

Supporting women’s empowerment

Women play a vital role in rural development, yet gender inequality is a reality in the cocoa sector. Women’s empowerment is key to addressing different challenges in the sector, including child labor. We do not implement female-only Farming Program activities, although several activities specifically target increased female participation, including VSLAs and additional livelihood activities. We also promote female representation among staff and farmers. In 2024, 21.9% of Farming Program participants were female farmers, compared to 22.8% in 2023.

Reducing the risk of child labor and conserving biodiversity and natural ecosystems

The Farming Program defines clear guidelines and actions to reduce the risk of child labor. For more information on our commitment to help protect the rights of children in our supply chain, see Child labor in the Respecting human rights chapter.

As part of the Farming Program, we are committed to no deforestation attributable to cocoa, with a target date of December 31, 2025, and have implemented our Lindt & Sprüngli Cocoa No-Deforestation & Agroforestry Action Plan, as well as our Deforestation Policy. For more information on the conservation of biodiversity, see the Biodiversity and ecosystems chapter.

Outlook for our responsible sourcing approach for cocoa

In the coming years, we will continue to implement the Farming Program and further evolve the program in line with our revised strategic approach. This will include developing processes and systems in accordance with regulatory requirements, the transition to Rainforest Alliance Certification as a basis for all cocoa sourcing, the improvement of monitoring, evaluation, and learning systems, and closer collaboration with suppliers and strategic partners for the Farming Program implementation. In the area of farmer livelihoods, we are planning the introduction of a living income project, integrating 5,000 cocoa farming families between 2025 and 2027. As we gain a better understanding of what approaches and interventions are effective across different supply chains, we aim to scale best practices across the program. Finally, we plan to expand the Farming Program to integrate new geographical areas, suppliers, and farmers, in line with our cocoa volume needs.

Metrics and targets

For further information on the progress made in the responsible sourcing of our cocoa, see Metrics and targets in the Responsible sourcing chapter.

In the reporting year, we sourced a total of 84.2% of cocoa products through the Lindt & Sprüngli Farming Program or other responsible sourcing programs. This implies that first mile traceability was equally achieved for 84.2% of the volumes sourced.

A total of 61.3% of cocoa bean equivalents were sourced through the Farming Program.

In 2024, our suppliers implemented the Farming Program in seven origin countries, with a total of 118,000 farmers participating. These countries are Ghana, Côte d’Ivoire, Ecuador, the Dominican Republic, Peru, Madagascar, and Papua New Guinea. After achieving our goal to source 100% of our cocoa beans through the Farming Program in 2020, we extended the program to include cocoa butter in 2021, and cocoa powder in 2022. In 2024, the total number of farmers participating in the Farming Program decreased as non-active farmers were no longer included.

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