Post by account_disabled on Feb 28, 2024 12:00:31 GMT 2
Nestlé to triple sustainable financing in cocoa supply, focusing on human rights
The brand will strengthen its ESG strategy by implementing sustainable financing in cocoa supply. The resources, as stated by Nestlé, will be distributed into lines of work to improve the traceability of the fruit, reduce the environmental impact of farms and support human rights and the livelihoods of farming communities.
According to edie , this last aspect has caught the attention of many international media outlets, because last year — along with other large chocolate companies such as Cargill, Barry Callebaut, Mars, Olam, Hershey and Mondelez — Nestlé was accused of allegedly working children in conditions of slavery.
The lawsuit, filed in February 2021, was blocked Changsha Mobile Number List months later by the US Supreme Court on the grounds that the alleged abuses occurred outside the country.
Sustainable financing in cocoa supply to improve
This is not an isolated accusation: Unicef and the International Labor Organization (ILO) have carried out important studies on the protection of human rights in global cocoa supply chains . The results have been generally damning, revealing that thousands of minors are likely working illegally and that the rights of adult workers are also not respected on many plantations.
In 2020, the social group NORC conducted research concluding that around 45% of agricultural households in Ghana and Côte d'Ivoire sent their children to work.
This exacerbates social problems by limiting their education and poses a host of risks to physical health and safety. Likewise, the United States government estimates that cases of child labor in the supply chain have increased 2% since 2014, exceeding two million children in these tasks.
sustainable financing in cocoa supply
To counter this, Nestlé's new sustainable cocoa supply financing will support an income accelerator program, in which farmers will be able to request additional payments for sending their children to school.
In this way, Nestlé aims to address one of the fundamental causes of child labor. Payments will be made to those who have children between 6 and 16 years old, through a secure transfer of mobile services. Rainforest Alliance and the International Cocoa Alliance will monitor progress.
sustainable financing in children's cocoa supply
Since cash flow throughout the year is often a challenge, incentives will be distributed when they are needed most. Based on feedback from farmers, this includes the back-to-school period and before the rainy season.
Nestlé statement.
Nestlé is also committed to enhancing its current monitoring and remediation systems to identify, prevent and address child labor risks. These have helped, since 2012, more than 149,000 children, according to company data.
Likewise, the company has assumed the responsibility of offering quality training to cocoa-producing families on topics such as financial planning, entrepreneurship and gender equality.
Environmental sustainability
In addition to paying to keep children in school, Nestlé is launching new incentive schemes for farmers who improve the environmental performance of their land.
Farmers will soon be able to claim extra payment for pruning and planting shade trees, as well as diversifying their income by growing other crops. Income diversification could include raising chickens and beekeeping. This approach could help preserve soil quality and increase economic resilience to possible declines in cocoa production resulting from changes in climate patterns.
nestle cocoa supply incentives
The payment plans have already been tested with 1,000 farmers in Côte d'Ivoire and will be extended to another 9,000 by the end of 2022. Until 2024 they will be extended to Ghana. Subsequently, other regions will be completed until 2030, with the aim of reaching all cocoa farming families in the supply chains.
The brand will strengthen its ESG strategy by implementing sustainable financing in cocoa supply. The resources, as stated by Nestlé, will be distributed into lines of work to improve the traceability of the fruit, reduce the environmental impact of farms and support human rights and the livelihoods of farming communities.
According to edie , this last aspect has caught the attention of many international media outlets, because last year — along with other large chocolate companies such as Cargill, Barry Callebaut, Mars, Olam, Hershey and Mondelez — Nestlé was accused of allegedly working children in conditions of slavery.
The lawsuit, filed in February 2021, was blocked Changsha Mobile Number List months later by the US Supreme Court on the grounds that the alleged abuses occurred outside the country.
Sustainable financing in cocoa supply to improve
This is not an isolated accusation: Unicef and the International Labor Organization (ILO) have carried out important studies on the protection of human rights in global cocoa supply chains . The results have been generally damning, revealing that thousands of minors are likely working illegally and that the rights of adult workers are also not respected on many plantations.
In 2020, the social group NORC conducted research concluding that around 45% of agricultural households in Ghana and Côte d'Ivoire sent their children to work.
This exacerbates social problems by limiting their education and poses a host of risks to physical health and safety. Likewise, the United States government estimates that cases of child labor in the supply chain have increased 2% since 2014, exceeding two million children in these tasks.
sustainable financing in cocoa supply
To counter this, Nestlé's new sustainable cocoa supply financing will support an income accelerator program, in which farmers will be able to request additional payments for sending their children to school.
In this way, Nestlé aims to address one of the fundamental causes of child labor. Payments will be made to those who have children between 6 and 16 years old, through a secure transfer of mobile services. Rainforest Alliance and the International Cocoa Alliance will monitor progress.
sustainable financing in children's cocoa supply
Since cash flow throughout the year is often a challenge, incentives will be distributed when they are needed most. Based on feedback from farmers, this includes the back-to-school period and before the rainy season.
Nestlé statement.
Nestlé is also committed to enhancing its current monitoring and remediation systems to identify, prevent and address child labor risks. These have helped, since 2012, more than 149,000 children, according to company data.
Likewise, the company has assumed the responsibility of offering quality training to cocoa-producing families on topics such as financial planning, entrepreneurship and gender equality.
Environmental sustainability
In addition to paying to keep children in school, Nestlé is launching new incentive schemes for farmers who improve the environmental performance of their land.
Farmers will soon be able to claim extra payment for pruning and planting shade trees, as well as diversifying their income by growing other crops. Income diversification could include raising chickens and beekeeping. This approach could help preserve soil quality and increase economic resilience to possible declines in cocoa production resulting from changes in climate patterns.
nestle cocoa supply incentives
The payment plans have already been tested with 1,000 farmers in Côte d'Ivoire and will be extended to another 9,000 by the end of 2022. Until 2024 they will be extended to Ghana. Subsequently, other regions will be completed until 2030, with the aim of reaching all cocoa farming families in the supply chains.