added value through sustainability - chocolats...

Added value through sustainability S u s t a i n a b i l i t y R e p o r t 2 0 1 2

Transparent communication from cocoa to chocolate bar Chocolats Halba‘s fi rst sustainability report is a clear acknowledgement of its commitment to consistent sustainability.

«Cecilio Sosa harvests premium cocoaCecilio Sosa harvests premium cocoa

About this report

This 2012 report is Chocolats Halba‘s fi rst sustainability report. It meets the

requirements of the Global Reporting Initiative (GRI), in particular its G3.1

guidelines, and includes the GRI Food Processing Sector Supplement. With the

declaration in the annex, GRI confi rms that the report successfully meets

application level C. Chocolats Halba plans to update its key sustainability

indicators at least every two years from now on. The choice of main subjects for

this report was made based on the process of preparing the sustainability

strategy. Issues raised and concerns expressed by key stakeholder groups have

also therefore been included in this report. Unless otherwise stated, all the

information about measures, indicators and target attainment relates to the

business activities of Chocolats Halba with its head offi ce in Wallisellen and its

production centre at Hinwil during the 2012 calendar year.

Only a full 360-degree view guarantees

long-term corporate success.

Transparent communication from cocoa to chocolate bar Chocolats Halba‘s fi rst sustainability report is a clear acknowledgement of its commitment to consistent sustainability.

«Cecilio Sosa harvests premium cocoa

... Chocolats Halba‘s commitment to sustainability is on cocoa. The sector faces complex challenges such as reducing poverty and

child labour. Discover more about the challenges confronting an entire industry on page 10.

Chocolats Halba has developed an innovative approach to help tackle the challenges relating to cocoa cultivation. Read on page

12 about the contribution of cocoa cultivation in agroforestry systems involving hardwood trees, and how this can alleviate poverty

among small farmers.

Chocolats Halba conserves resources through its climate-neutral operations. Emissions that the company cannot avoid despite mea-

sures taken to reduce them are offset within its own value chain. Learn exactly how this works on page 17.

Chocolats Halba is the fi rst ever supplier of carbon-neutral chocolate. The ways in which it is able to successfully put its environ-

mental and social principles into practice in the marketplace are shown on page 22.

Sustainability involves commitment. In its 2013 - 2015 sustainability strategy, Chocolats Halba sets itself specifi c, measurable

goals towards which it is systematically working. You can fi nd an overview of these goals on page 24.

The focus of ...

Overview

« 1

Foreword ……………………………………………………………………………………… 3Portrait of Chocolats Halba ……………………………………………………………………………………… 5Sustainable purchasing ……………………………………………………………………………………… 9Corporate environmental protection ……………………………………………………………………………………… 15Employees ……………………………………………………………………………………… 19Sustainable products and services ……………………………………………………………………………………… 22Sustainability strategy goals achieved 2009-2012 ……………………………………………………………………………… 23Sustainability strategy goals set for 2013-2015 ……………………………………………………………………………… 24Key sustainability data ……………………………………………………………………………………… 25GRI table ……………………………………………………………………………………… 28GRI confi rmation of application level

Publishing details

Contents

» 2

Joos Sutter

August Harder

Coop has been working hard to develop its sustainable product range for over

20 years. Now as then, our focus is on differentiating our products and services,

and profi ling ourselves as a sustainable retailer. In economically challenging

times, when sustainability has become a mass phenomenon and a collective

term used to describe a wide variety of different initiatives, consumers are

increasingly interested in transparency and credibility. It is for this reason that

we are consciously focussing our attention on vertical integration and close

supplier relationships. By closely controlling more and more manufacturing

processes at all stages of production, Coop is also aiming to ensure the long-

term availability of raw materials. This helps us meet social and environmental

requirements within the value chain too. At the same time, this close monitoring

of manufacturing processes results in improved product quality and innovation.

Back in 1993, Coop launched its Naturaline own-label sustainability brand for

textiles made from organically grown cotton and produced in accordance with

socially and environmentally responsible methods. The latest example of

successful vertical integration is the „Honduras“ cocoa project run by our

manufacturing company Chocolats Halba. Coop is now Switzerland‘s fi rst retailer

to directly control the entire value chain from cocoa plant to shelf, and to tackle

the social, environmental and economic challenges of the cocoa sector.

This all-round commitment is exemplary in a sector that is sensitive from a

sustainability point of view. It makes a key contribution towards profi ling Coop as

a sustainable retailer, achieving differentiation in the marketplace and securing

resources and therefore also business success. Since 2008, the joint project has

grown to become a trusting partnership for sustainability. Coop and Chocolats

Halba are currently working very closely together on a wide variety of subjects and

in all areas. Synergy has already been generated and milestones achieved – in

2011, we jointly switched over Coop‘s own brand Qualité & Prix chocolate range

to Fairtrade. Chocolats Halba can now be marketed as „carbon neutral“ – in other

words, the greenhouse gases generated during production are being offset.

Recently, Coop and Chocolats Halba have also been jointly promoting the

reforestation of cocoa plantations in Ghana and Honduras with mixed crops

including hardwood trees. This protects rain forests, promotes biodiversity and

generates additional income for cocoa farmers. Work is currently underway to

certify these projects in accordance with the highest standards for the purposes

of emissions trading.

Coop and its divisions will continue to set great store by credible and transparent

information and dialogue with stakeholder groups. We are therefore delighted

that Chocolats Halba has become the fi rst Coop manufacturing company to

report in line with GRI standards, and hope you enjoy reading all about our

chocolate operations

Sustainability right back to product source

Joos Sutter

Coop Cooperative

Chairman of the Executive Committee

August Harder

Coop Cooperative

Head of IT/Production

Coop foreword« 3

Anton von Weissenfluh

Christoph Inauen

Sustainability is particularly important to Chocolats Halba. As a division of the Coop Cooperative, it is enshrined in our core values. We are therefore working hard to produce chocolate that is environmentally and socially acceptable. In order to transform our sustainability activities into visible added value and act as a successful market differentiator, we are developing specifi c products based on our values. In so doing, we are following a clear strategy. This sustainability strategy focuses on cocoa, since it is in the cocoa sector that the greatest challenges lie. Child labour, poverty, monoculture, the impact of climate change and possible shortages of cocoa, which for us is the most important raw materi-al, are just some of the many challenges facing our industry.

We have largely achieved the sustainability goals for 2012 that we defi ned in 2008. For example, we procured 95 percent of all cocoa beans from fair trade sources in accordance with the Fairtrade standard. Each year we pay the farmers‘ cooperatives that cultivate cocoa over 800,000 US dollars in premiums. In Honduras, Peru and Ghana, we have launched hardwood reforestation projects together with these cooperatives. The hardwood trees that are planted alongside cocoa have a positive impact on the cocoa farmers‘ income. They also improve local biodiversity, water supplies and soil fertility, and act as a carbon sink.

Since 2008, we have reduced CO2 emissions from our factories by 31 percent. In 2012 we received confi rmation for the fi rst time that our operations are climate-neutral. Greenhouse gases that are not reduced are offset by planting hardwood trees in conjunction with cocoa farmers. We are therefore able to offset all emissions with a project certifi ed in accordance with international standards and within our own value chain. We used this project to launch the fi rst ever chocolate to be labelled as carbon-neutral. In 2012, our carbon-neutral products generated sales of 10.7 million Swiss francs.In partnership with the Coop Sustainability Fund, Helvetas Swiss Intercooperation and other stakeholders, we have since 2008 been revitalizing the cocoa sector in Honduras, which was devastated by hurricane Mitch in 1998. After fi ve years spent investing in planting schemes, infrastructure and training as well as research and development, we received the fi rst container of valuable cocoa beans at the end of 2012. And now, in the fi rst half of 2013, the fi rst Honduras chocolate is on sale in stores. We are endeavouring to generate added value along the entire length of the value chain. Everyone benefi ts from our commitment, from producers and the environment through to consumers.

And the bottom line for us is that we are producing better chocolate. So in future we will communicate all our sustainability efforts using this claim: „the better chocolate“.Working closely with our stakeholder groups in 2012, we prepared our new 2013-2015 sustainability strategy. In this new strategy, we are setting ourselves ambitious goals and continuing to strengthen our powers of innovation. The strategy preparation process showed us that there is still a lot left to be done, for example in the fi eld of sourcing cocoa butter and in involving staff in our sustainability strategy. In October 2012, the Coop Board of Directors decided to construct a new building and consolidate various operations on the Salina Raurica site at Pratteln in the canton of Baselland. This site is connected to the rail network. Chocolats Halba operations at both Wallisellen and Hinwil will be transferredto the new location. This long-term commitment to sustainable operations by Coop is the outcome of our joint efforts.Our fi rst sustainability report, which has been drawn up in accordance with GRI guidelines, is a direct consequence of the new strategy. This report is intended to make our efforts more easily verifi able and comparable, and also more transparent. We hope you fi nd it interesting to read and enjoy exploring the fascinating world of sustainability.

From value to added value

Anton von Weissenfl uh

Head of Chocolats Halba

Christoph Inauen

Head of Sustainability and Cocoa Purchasing

Chocolats Halba

Chocolats Halba foreword » 4

Passion for Chocolate. Pleasure for your Brand. Since 2012, this new slogan has shown that Chocolats Halba is a private-label specialist.

«Pouring chocolate samples

Each year at its headquarters in Wallisellen and its Hinwil site, Chocolats Halba

processes around 2,500 tonnes of cocoa beans from Ghana, Ecuador, Honduras and

Peru, transforming them into bars, coatings, Easter bunnies, Santas and fi ne confi -

serie items. In 2012, 232 employees manufactured 11,946 tonnes of chocolate.

Both plants are certifi ed in accordance with BRC, IFS, ISO 9001 and ISO 14001.

As a private-label specialist, Chocolats Halba produces chocolate specialities

for the retail trade and for well-known brands. Its main customer is the

Coop Cooperative, to which it is attached as a division. The Coop Group is the

largest retail and wholesale company in Switzerland. In 2011, the independent

rating agency oekom research AG declared Coop to be the world‘s most

sustainable retailer. Chocolats Halba generates more than 80 percent of its sales

in Switzerland. Its main export markets are Italy, Germany, Canada, the United

States, Austria and the Netherlands.

Its range includes the two brands „Swiss“ and „Swiss Confi sa“. Swiss Confi sa‘s

seasonal specialities are predominantly marketed within Switzerland, whereas

both brands‘ chocolate bars are sold abroad.

Specialist in added value

Chocolats Halba‘s core competence lies in manufacturing added-value retail

brands. In addition to organic and Fairtrade chocolate, Chocolats Halba has

since 2010 been the world‘s fi rst manufacturer of chocolate labelled as

„carbon-neutral product“.

Certifi cates: BRC 5, IFS 5, IQNET, ISO 9001/14001, Bio Inspecta Switzerland,

Bio Inspecta EU, Bio Inspecta Canada, Fairtrade International, Bio Suisse,

USDA National Organic Program

This diagram shows Chocolats Halba‘s vision, corporate profile and missions.

Customized indulgence

CHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHF2012CHFCHF2011CHF 2010CHFSwiss salesCHFCHFCHF 83.3 m CHFCHFCHF 88.5 mCHF CHF 88.1 mCHF 88.1 mCHFForeign salesCHFCHFForeign salesCHFCHFCHF 19.8 mCHFCHFCHF 19.8 mCHFCHFCHF 22.8 mCHF CHF 17.8 m

Chocolats Halba organization chart

Vision

Missions

Corporate principlescloseinnovative

We are the leading We are the leading Swiss chocolate maker in Swiss chocolate maker in

terms of quality and sustainabiliuality and sustainability

diverse

distinctive partnership-oriented

sustainability partnership

cost-efficiencycustomer focus quality

A portrait of Chocolats Halba

Chocolats HalbaAnton von Weissenfluh

Organigramm Chocolats Halbaab 1. April 2013

Support/ Projects

Marketing/ SalesAndreas Hasler

Coop Sales

Swiss Sales

Export Sales

Product Management

Wallisellen factory

Hinwil factory

Engineering

Technology

Development

Quality Management

QA/ Lab

SCM/ Purchasing

SCM/ PurchasingGiovanni Schiavo

Sustainability and Cocoa Purchasing

Christoph Inauen

SCM/ Master Data Planning

SCM/ In-House Customer Service

Finance & ITDaniel Böni

IT

Financial Accounting/ Plant

Accounting

ProductionDaniel Facchin

QM & DMarcel Baumann

Communications

«Pouring chocolate samples

» 6

Sustainability at Chocolats Halba

Since Chocolats Halba drew up its fi rst sustainability strategy in 2008, the

importance of this subject has continued to grow. Sustainability now forms an

integral part of the corporate strategy and affects our existing structures and

processes. In 2012, the company prepared its 2013-2015 sustainability

strategy. When implementing this strategy, priority will be given to those measures

that relate to the core business. In addition, all management-level employees

have since 2011 been given sustainability-related objectives, thus enshrining

sustainability in all parts of the company. Since 2011, the Head of the

Sustainability Department has also been a member of Chocolats Halba Divisional

Management, underscoring the importance of the subject. As a result of preparing

the sustainability strategy, cocoa procurement was in 2012 included within the

Sustainability Department from an organizational point of view.

Since the beginning of 2013, Chocolats Halba‘s newly worded vision has also

emphasized the importance it places on sustainability:

„We are the leading Swiss chocolate maker in terms of quality and sustainability.“

Sustainability strategy goals set for 2013-2015

Based on the Coop sustainability strategy, Chocolats Halba drew up a compre-

hensive and far-reaching sustainability strategy for itself in 2012. To ensure that

the strategy addressed key issues and was well-established within the company,

internal and external stakeholder groups were involved in the development

process. This systematic process, which was synchronized with the corporate

strategy, was supported by an agency specializing in sustainability, and is illustrated

in the diagram on the right.

The fi rst step in preparing the strategy was an internal analysis of the current

sustainability situation at Chocolats Halba. Various analyses were carried out to

establish which sustainability issues were important to Chocolats Halba from an

external point of view. Representatives from key stakeholder groups were also

questioned. These included customers, suppliers and employees, as well as

governmental and non-governmental organizations.

• Benchmark: ISO 26000 guidelines*• Interviews with departments regarding current situation• Analysis of documentationInternal analysis of

current situation

• Define specific measures, strategic goals and indicators• Embed strategy within organization

Departmental workshops

• Determine stakeholders• Expert interviews with key stakeholders to identify issues• Online survey of stakeholders to prioritize issuesAnalysis of

external issues

• Define broad strategy pillarsPrioritization

workshop with divisional management

• Media analysis• Competition analysis

Benchmark analysis

*ISO 26000 provides guidance and recommendations on how organizations of all types can act in order to be considered socially responsible. The standard was published in November 2010, and its use is voluntary. Unlike ISO 9001 and ISO 14001, ISO 26000 is not a certifiable management standard.

Sustainability pillars

A portrait of Chocolats Halba

Processes and systems

Operations

Sustainable purchasing

Environmental protection

Employees

Sustainable products and

services

We are the leading Swiss chocolate maker in terms of quality and sustainability

Sustainability pillarsProcesses and systems

« 7

Child labourForced labourQualityProduct safetyProduct information and labellingLong-term business relationshipsCustomer satisfaction and retentionEmployee satisfaction and retentionTraceabilityRaw materialsProtecting rain forestsConsumer healthSustainability as a competitive

advantage/USPBiodiversityProducer expertise and knowledgeEnsuring raw material availabilityRemuneration (employees and supply chain)Working conditions within the supply chainPovertyAttractiveness of raw material cultivationImpact of climate changeWater, waste water (raw materials)

Energy consumption and efficiencyLocal value creation (source + Switzerland)Sustainable consumptionMaterials (packaging)Marketing and advertising practicesWork-life balanceTransport + logisticsTraining and professional development

RegulationRecycling Occupational pensionsSharing risks in the purchasing chainCorruption (third countries + Switzerland)Diversity and equal opportunities

Pesticides, fungicides, chemicals (raw materials), hazardous substances (operations)

Noise emissionsWasteCollective agreementsWater, waste water (operations)

Products aimed at specific target groupsSponsorshipSubsidies receivedEnvironmentally friendly procurement in operations

Fringe benefitsLobbying

Greenhouse gas emissionsEmployee development and advancementGenetic engineeringOccupational health management, occupational health and safetyUpfront financing for cooperatives

Odour emissionsDonations

• Benchmark: ISO 26000 guidelines*• Interviews with departments regarding current situation• Analysis of documentationInternal analysis of

current situation

• Define specific measures, strategic goals and indicators• Embed strategy within organization

Departmental workshops

• Determine stakeholders• Expert interviews with key stakeholders to identify issues• Online survey of stakeholders to prioritize issuesAnalysis of

external issues

• Define broad strategy pillarsPrioritization

workshop with divisional management

• Media analysis• Competition analysis

Benchmark analysis

This diagram shows which issues are considered particularly important by Chocolats Halba and its stakeholder groups. The sustainability strategy focuses on these key issues.

Coop continues to play a special

role for Chocolats Halba, both as

its largest customer and its owner.

The various analyses and surveys

were evaluated and discussed

in a workshop with divisional

management. They defi ned those

issues that are the most important

for Chocolats Halba, and the

keystones of the strategy were formulated accordingly. As in the previous period,

the strategy focuses on the sustainable sourcing of cocoa. The strategy‘s two

other keystones are operations and sustainable products and services.

An overview of the goals that Chocolats Halba has set itself in its 2013-2015

sustainability strategy can be found on page 24.

A portrait of Chocolats Halba » 8

«Chocolats Halba representative in Honduras

Direct involvement that‘s bearing fruit In 2012, Chocolats Halba jointly launched a new programme in Honduras with the Swiss State Secretariat for Economic Affairs and Helvetas Swiss Intercooperation for fermenting and drying cocoa as well as training producers

Sustainable purchasing is of key importance at Chocolats Halba. And it‘s not

only for ethical reasons that the company focuses on ensuring ever more

transparent and sustainable value chains. Securing resources and maintaining

quality are crucial for supplier security and therefore also business success.

The chocolate industry is faced with a whole range of complex challenges.

Legislation is on the increase and demand for chocolate from new markets is

growing, resulting in a shortage of cocoa as a raw material. One central challenge

for Chocolats Halba is continuing to be able to buy suffi cient cocoa of the

requisite quality in the future while adhering to social standards.

Standards dependent on raw material

It is not possible to manufacture chocolate sustainably without procuring

sustainable raw materials. Chocolats Halba buys raw materials and packaging

materials from over 120 suppliers. Together with these suppliers, Chocolats

Halba has signed the sustainable sourcing guidelines drawn up in 2010 in

consultation with Coop. This agreement obliges suppliers to conduct their

production activities in a socially and environmentally responsible manner.

In 2012, 99.83 percent of raw materials purchased by Chocolats Halba were

bought from suppliers who had signed this agreement.

Chocolats Halba uses external certifi cation for some of its raw materials in

order to ensure social standards are adhered to when these materials are being

produced. Each year, Chocolats Halba conducts an analysis of the sustainability

risks relating to the raw materials it processes. On the basis of the risks and

challenges identifi ed, not only cocoa but also palm oil, hazelnuts, soya lecithin

and packaging materials are included in the sustainability strategy.

Complex challenges in the cocoa sector

One key challenge faced by the cocoa industry is the poverty of cocoa farmers.

There are many reasons for this poverty. The majority of farmers lack the

expertise required to cultivate cocoa in an economically benefi cial and socially

and environmentally responsible manner. And they have virtually no access to

credit. Other factors contributing towards poverty include aging and unproductive

cocoa trees, volatile prices on the global market, the impact of climate change

and multiple middlemen who skim off a substantial percentage of the price for

themselves.

Poverty in turn causes other problems. Without capital, cocoa farmers cannot

invest suffi ciently in their plantations. Yields decline and therefore so does

income. There is then even less money available to maintain plantations – a vicious

circle. Cocoa farmers who earn enough money to pay adult labourers are less

easily tempted to resort to cheap child labour.

Chocolats Halba‘s sustainability strategy takes account of these complex challenges

and places poverty reduction measures centre stage.

Sustainable purchasing- Income for cocoa farmers (covering production costs, crop diversifi cation, rising cost of living, price volatility and speculation)- Market access (credit, market information, investment risks)- Cultivation methods (farmer training, low yields)- Infrastructure (roads, hospitals, schools, high taxes, transport costs)

- Aging farming areas- Aging and diseased cocoa bushes- Poor quality cocoa beans and monoculture- Deforestation, declining biodiversity and soil fertility- Climate change- Environmental impact of using fertilizers and pesticides

- Violation of human rights (child labour, forced labour, human traffi cking, malnourished children)- Working conditions (use of pesticides and fertilizers, dirty water, heavy workload, harassment and abuse, discrimination, gender inequality)- Land ownership- Illiteracy and education- Freedom of assembly, collective bargaining, farmers‘ organizations

Source: Cocoa Barometer 2012 (adapted)

Challenges facing the cocoa sector

Sustainable purchasing » 10

Sourcing cocoa beans directly and fairly

To tackle the challenges faced by the cocoa sector, Chocolats Halba relies on

the International Fairtrade Standard (FLO). For example, Chocolats Halba set

itself the target of buying all its cocoa beans from Fairtrade sources by 2012.

Whereas only 10 percent of all the cocoa beans bought by Chocolats Halba in

2010 bore the Fairtrade logo, this fi gure rose to 95 percent at the end of 2012.

The 100 percent mark was unfortunately not quite reached because fl ooding in

Ecuador led to supplier bottlenecks at a partner cooperative, and conventional

cocoa beans had to be used instead for a short period of time.

In the Fairtrade

system, cocoa

farmers sell

their beans to

a cooperative,

thereby ex-

cluding local

middlemen.

The farmers

benefi t because

they receive a

higher share

of the price

that the cocoa

fetches on the

world market.

Instead of the

usual 50 or 60

percent, 75 to 85 percent goes to the producers in Fairtrade supply chains. The

Fairtrade standard also guarantees cocoa farmers a fi xed minimum price that

covers their production costs. In addition to the regular price, the buyer, in this

case Chocolats Halba, also pays the cooperative a premium of 200 US dollars

per tonne.

The Fairtrade organiza-

tion FLO ensures

that standards are

adhered to.

Chocolats Halba buys

its cocoa beans from

three cooperative

societies affi liated to

the Fairtrade system:

ACOPAGRO in Peru,

Fortaleza del Valle in

Ecuador and Kuapa

Kokoo in Ghana. Only

small quantities have

so far also been sourced

from the Honduras

project. The supply

chains are transparent

and traceable right

back to the cooperatives

and the cocoa farmers.

While the fair procurement of cocoa beans is therefore already largely established

at Chocolats Halba, its sourcing of cocoa butter is to be made more sustainable

in a further step. There is room for improvement in this respect. In 2012, 32

percent of its cocoa butter was sourced in accordance with the Fairtrade standard.

The majority was produced by the Conacado cooperative in the Dominican

Republic. The remainder of the cocoa butter used by Chocolats Halba was

sourced conventionally and was not traceable. Chocolats Halba has set itself the

target of sourcing 100 percent of its cocoa butter in a traceable manner and/or

100 percent in accordance with international standards by 2015.

USD 200,000

USD 100,000

EcuadorDominican RepublicPeruGhana

USD 300,000

USD 400,000

USD 500,000

USD 600,000

USD 700,000

USD 800,000

0 2010 2011 2012

Fairtrade premiums for cocoa

USD 0,8 m

FT cocoa butterFT cocoa beans

40

20

0

60

80

100%

2010 2011 2012

95%Fairtrade certified cocoa beans

Sustainable purchasing« 11


In 2012, Chocolats Halba paid premiums totalling USD 830,730 to cooperatives

in Ghana, Ecuador, Peru and the Dominican Republic for Fairtrade cocoa. The

way in which the cooperatives spend their premiums is democratically agreed.

The money is used to launch a wide variety of projects, including investments

in infrastructure, farmer training, issuing microcredit and improved healthcare.

Chocolats Halba intends to work even more closely with cooperatives in the

future. In this respect, the Honduras project is of great importance. A subsidiary

company was established in the country in 2013, which buys cocoa directly

from cooperatives and delivers it to Switzerland to be processed by Chocolats

Halba.

Cocoa cultivation in agroforestry systems involving hardwood trees

As well as fair trade, alternative cultivation systems also help to increase cocoa

farmers‘ incomes. Agroforestry systems are one such approach. They involve

cultivating cocoa in mixed crops. Combining cocoa with valuable hardwood

trees is a special form of agroforestry. These mixed crops have a positive effect

on the local environment. They increase cocoa yields in the medium term, and

hardwood trees can be felled and sold in the long term, generating additional

income. (See pages 13-14).

A total of 58,118 hardwood trees were funded in 2012 and were planted in cooperatives in Honduras, Peru and Ghana. Chocolats Halba fi rmly believes that these agroforestry systems are one way of addressing challenges in the cocoa sector in a holistic manner. The aim is therefore to plant at least 500,000 hardwood trees in cooperatives by 2015 in order to improve the long-term income situation of the farmers who supply Chocolats Halba with cocoa.

Fairtrade premiums for cocoa Since 2008, Chocolats Halba, Helvetas Swiss Intercooperation,

the Coop Sustainability Fund, the Swiss Agency for Development and Cooperation (SDC), Swisscontact and SECO have been working together to revitalize the cocoa sector in Honduras, which was devastated by hurricane Mitch in 1998. The partners have defined a comprehensive programme involving farmer training, infrastructure, strengthening cooperatives, establishing sustainable cocoa plantations, up-front financing, certification, quality improvement and research.

Four years later, the first cocoa trees planted in 2008 are now bearing fruit. The first container of transitional organic cocoa arrived at Chocolats Halba in 2012, and the first Honduras chocolate was successfully launched in Coop stores in spring 2013. The Honduras project is a flagship project because the organic cultivation of cocoa as part of agroforestry systems and the systematic strengthening of small farmers ensures wholly sustainable cocoa production.

Flagship project in Honduras

„Cultivating cocoa in agroforestry systems is desirable for many different reasons. Growing cocoa trees under shade is much more reliable, more productive in the

long term and more environmentally friendly than without large canopy trees. But unfortunately in many tropical regions there is a tendency to clear canopy trees for

short-term revenue gains. In agroforestry, canopy trees promote species diversity, carbon storage, soil fertility, drought resistance and also organic weed and pest control.

The impressive multifunctionality of shaded cocoa cultivation means that crops are less vulnerable to other environmental factors and play a substantial role in

maintaining a rich variety of tropical fauna and fl ora.“

Prof. Teja Tscharntke | Professor of Agricultural Ecology | Georg August University, Göttingen

Prof. Teja Tscharntke

» 12

Benefi ts of agroforestry systems

Soil

• Improved soil quality: – Deep roots retain nutrients and prevent soil from being washed away (erosion)

Social and economic • Increased income and income diversifi cation for small farmers: – Doubled yields thanks to improved growing conditions – Cocoa is not the only crop – Income from the sale of hardwood timber

Water • Healthier water supplies: – Higher water tables – Water fi ltering – Better water storage

Biodiversity

• Plant diversity attracts a variety of living organisms, and more insects ensure better pollination

Climate

• Mitigating climate change and its consequences: – Storing carbon in trees and in the soil – Protecting cocoa plantations from severe storms, rain, etc.

Professional management of reforestation projects

The joint reforestation projects involving Chocolats Halba and cocoa cooperatives

in Ghana, Peru and Honduras are being run by PurProjet, an agency specializing

in climate protection and reforestation. This organization ensures that plantations

are managed and monitored professionally. Every tree is pinpointed via GPS,

subsequently enabling them to be identifi ed on Google Earth. These reforestation

projects are or will be certifi ed in accordance with international standards for

emissions trading. In this way, Chocolats Halba is able to acquire emission

certifi cates from within its own value chain.

In 2008, the ACOPAGRO cooperative in Peru launched a reforestation project

involving native hardwood trees. The project is certifi ed via the Clean Development

Mechanism (CDM), which was defi ned in the Kyoto Protocol, and the cooperative

sells the captured carbon on the international emissions trading market. Using

this project, Chocolats Halba offset operational emissions and emissions for

carbon-neutral products in 2012, thus enabling 16,958 hardwood trees to be

planted.

In Ghana, cocoa is grown mostly on aging single-crop plantations. Studies show

that the soil is being leached by decades of cocoa cultivation. On Chocolats

Halba‘s initiative, a joint reforestation project was started in the Kumasi region

in 2011 with the Kuapa Kokoo cooperative. Since then, 150,000 trees have been

planted, of which 65,000 are hardwood trees funded by Chocolats Halba and

Coop.

To ensure agroforestry systems are managed sustainably, the hardwood trees will

in future also be certifi ed in accordance with the Forest Stewardship Council‘s

sustainable forestry standards.

Tackling child labour

Cases of child labour and forced labour that occur repeatedly, particularly in

West African cocoa plantations, are the most visible and familiar signs of the

complex challenges that exist in the cocoa industry. Improving cocoa farmers‘

income and living conditions are key prerequisites for combating child labour.

Sustainable purchasing« 13

1,000

1,500

2,000

2,500

3,000

3,500

4,000

USD

0

500

2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055

Entwicklung von Kakaobauern in Ghana durch Agroforstsysteme

Hardwood treesHardwood trees

Hardwood trees

Fertilizer savings

Higher yields

Cocoa revenue

Other revenue

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

USD

0

1,000

2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055

Entwicklung jahreseinkommen hondurischer kakaobauernfamilien in US DollarBerechnungen: Pur Projekt

Hardwood trees (slow growing)

Hardwood trees (medium growing)

Hardwood trees(fast growing)

Increase in cocoa yield

Income from growing cocoa

Original income

Income of small farmers from agroforestry systems

Ghana

Honduras

Modelling carried out by PurProjet shows the effect that hardwood trees in newly planted and older cocoa plantations have on the income of cocoa farmers in Honduras and Ghana. In Ghana, monocultures lead to leached soils the older they get. If no action is taken, studies indicate that productivity falls in the long term. Cocoa cultivation within agroforestry systems counteracts this trend and leads to higher yields.

Chocolats Halba is using a variety of different measures to tackle child labour in

Ghana. The Fairtrade premiums paid to the cocoa suppliers of the Kuapa Kokoo

cooperative in Ghana are helping to combat child labour. Kuapa Kokoo is using

these premiums to raise its members‘ awareness of the issue. The programme

set up for this purpose is being supported with an additional annual contribution

of USD 10,000, and progress is being monitored. The reforestation project in

Ghana is specifi cally aimed at boosting the income of cocoa farmers.

In conjunction with the local authorities and Fairtrade International (FLO), and under the patronage of the International Labour Organization (ILO), the Kuapa Kokoo cocoa cooperative has drawn up a programme aimed at highlighting and monitoring the incidence of child labour. The programme was launched in 2010.

By the end of 2012, Kuapa Kokoo had held awareness-raising campaigns, carried out school visits and distributed free school materials in every community. Training courses were held to improve entrepreneurial skills, and small-scale investments were offered to cocoa farmers to diversify their income. Schools were also built and maintained.Thanks to the programme, 518 children who were at risk of the worst form of child labour were attending school at the end of 2012. The most recent evaluation visit carried out by Chocolats Halba at the end of 2012 showed how important it is to anchor the programme within traditional local structures and with local social workers. This successful project is a flagship project for the entire cocoa industry.

Programme to avoid child labour ( in Ghana )

Sustainable purchasing » 14

So that chocolate is the only thing that gently melts at the North PoleChocolats Halba offsets its emissions within its own value chain. It was therefore certifi ed as a „climate-neutral business“ in 2012.

So that chocolate is the only thing

«Conching ensures a mellow, melt-in-the-mouth product

Climate protection in the value chain

Chocolats Halba sets great store by using resources carefully and sparingly. We need to treat

the environment responsibly for the sake of future generations. And given the rising cost of

energy, it‘s in our own interests to use fi nite resources economically. Chocolats Halba also

attaches particular importance to climate protection since studies show that climate change is

having a negative impact on key cultivation areas for cocoa, its most important raw material.

By reducing and offsetting any remaining emissions, Chocolats Halba is today a

climate-neutral manufacturer. Increasing energy effi ciency will also remain a priority.

Legislation and a shared vision

The revised CO2 law came into force in Switzerland on 1 January 2013. It lays down

climate policy objectives and measures for the period 2013 to 2020 and states that by

2020 Switzerland has to reduce its domestic greenhouse gas emissions by at least

20 percent compared with 1990. Back in 2008 with its „carbon-neutral by 2023“ vision,

Coop defi ned targets that went well beyond the revised CO2 law. As a manufacturing

company, Chocolats Halba emphatically supports this vision. It is therefore meeting the

CO2 reduction targets agreed with the Swiss Confederation and even sets higher goals.

Reducing greenhouse gas emissions

When calculating greenhouse gas emissions and drawing up measures, Chocolats Halba

not only considers CO2 emissions, but is also committed to reducing all climate-related

emissions. The operational emission calculations validated in conjunction with the climate

protection foundation „myclimate“ include industrial waste, business travel, commuter

travel and deliveries as well as energy consumption.

Signifi cant measures have been taken in recent years to reduce emissions, particularly in

the relatively signifi cant area of energy consumption, for example by obtaining electricity

from renewable sources. Additional measures such as the use of more effi cient chillers

and optimizing the step switching mechanisms on heat pumps had the impact of reducing

CO2 emissions by 91 tonnes in 2010.

A 31 percent reduction in operational CO2 emissions for an output that has simultaneously

increased by 20 percent since 2008 means that emissions per kilogramme of chocolate

have fallen by 43 percent.

8989

313

126

356

2503

104104

428

196

319

2505107218

182182

331

16481648

979797

Industrial wasteDeliveriesBusiness travelCommuter travelEnergy

295

233233

343

1468

95274

214

344

1426

1,000

1,500

2,000

2,500

3,000

3,500t CO²

0

500

2008 2009 2010 2011 2012

31% reduction in operational CO2 emissions

Corporate environmental protection » 16

New environmentally friendly building

Current production across two sites and particular building technology issues mean

that Chocolats Halba‘s operational emissions cannot be signifi cantly reduced much

further. In view of the new building, there are no plans for any major investment in

emission reductions at the existing sites. When planning application was submitted

for the readily accessible plot of land in Canton Baselland, resource-saving measures

were already being considered. Since the fi nal decision was made to go ahead with

the new building, concrete strategies have been drawn up and their feasibility is

currently being assessed.

Offsetting within the value chain

To achieve climate-neutrality, Chocolats Halba offsets its operational CO2 emissions

directly within its own value chain. To do so, it uses the positive effects of the

reforestation project it is jointly running in Peru with the ACOPAGRO cooperative.

Hardwood trees absorb CO2 emissions from the air. During the course of their lives,

they store a considerable

amount of carbon in their

wood and roots – a total

of around 300kg per tree.

At the same time, cocoa

farmers are able to boost

their income because the

cocoa plants produce higher

yields and in the long term

farmers can sustainably fell

the hardwood trees and sell

their timber.

In 2011, the Peruvian

reforestation project was

certifi ed in accordance with

the Verifi ed Carbon Standard

(VCS). This internationally

recognized voluntary

standard meets the criteria and requirements of the Kyoto Protocol, the wording

of which was drawn up at UN climate conventions. In 2014, the VCS will validate

the project for a second time. It will measure how many emissions have actually

been captured in the trees and the biomass since 2011. In order for the storage of

emissions to be monitored, all the trees that have been planted must be accurately

tagged. This is done via GPS. The VCS ensures that in future certifi cates are sold

only for emissions that have actually already been captured.

In 2016, the Coop manufacturing companies Chocolats Halba, Sunray and Cave will have a new 80,000 m2 site in Pratteln.

Coop has earmarked 290 million Swiss francs for this new construction project. This commitment to sustainable manufacturing will ensure Chocolats Halba can meet the latest hygiene and production standards. Annual cost savings and synergies will also ensure its ability to compete in a fiercely contested environment. The new site will provide jobs for around 500 employees. Relocating to the new site will also make a significant contribution towards achieving Coop‘s „carbon-neutral by 2023“ vision. For example, the location‘s excellent rail connections will enable freight shipments to be switched from road to rail.

New Coop manufacturing location

Corporate environmental protection « 17

Recycled waste

Non-recycled waste

78%

22%waste cocoa bean shells production waste

paper / cartboard

50%

33%

13%13%

1% aluminium

1% electrical waste

2% scrap iron

2012 waste by disposal type (0.2% special waste) 2012 recycled waste by category

Corporate environmental protection

Waste avoidance and recycling

Chocolats Halba is also systematically including waste and recycling within sustainability management as part

of its newly developed sustainability strategy. Key waste and recycling fi gures have been logged in the monthly

manufacturing cockpit since 2012. This enables reductions to be monitored and action taken on an ongoing basis

directly on the production line. Since 2012, the subjects of waste and recycling have been systematically included

in the annual energy report.

It was shown that 78 percent of waste is already being recycled – a very high fi gure. Half of this waste is made

up of cocoa bean shells, which are used in the fl avourings industry. The volume of non-recycled waste fell by 18

percent between 2010 and 2012. This was due in part to the introduction of a new measuring method in the works

laboratory, which has enabled solvent waste to be reduced by 25 percent.

» 18

Chocolate tastes best in an optimum working environment In 2012, additional goals on systematic employee development were included in the sustainability strategy.

«Chocolatiers at work

Looking to the future with confidence

Chocolate is a product made by people for people. Many complex processes

and much expertise is needed at all stages of production to create this everyday

treat. For this reason, Chocolats Halba relies on its employees, who work

passionately day in, day out to achieve the very best product quality. Particularly in

challenging times of upheaval, it‘s important to involve staff fully in the change

process so that valuable human resources can be retained.

Integrating staff more closely into the sustainability strategy

Chocolats Halba staff automatically benefi t from the progressive terms and

conditions offered by Coop as a socially responsible employer. Coop negotiates

basic conditions with its contractual partners KV Schweiz (Swiss commercial

association), SYNA/OCST and UNIA (trade unions), and VdAC (Association of

Salaried Employees of Coop). In 2012, despite diffi cult economic conditions, it

was able to award pay rises to all staff who fell under the collective employment

contract (GAV), and also members of the management team. Coop increased

the minimum and reference wages in this round of collective bargaining by an

above-average amount. Targeted training and professional development as well

as an intensive dialogue are also intended to develop staff potential to the full.

Gender equality is being further promoted, and sustainability is being

assimilated into Chocolats Halba‘s recruitment process and employee training

as a corporate value.

Supporting young people

In 2012, Coop and Chocolats Halba once again offered two disadvantaged young

people the opportunity to gain better prospects on the job market. Each year,

school pupils can obtain a taste of working life at Chocolats Halba as part of the

„LIFT“ programme. This programme, which is run by the independent organization

„Network for socially responsible business“, makes a signifi cant contribution

towards supporting individual young people in their transition to professional

life. Since 2009, Chocolats Halba has supported the personal development of

two or three participants of this programme each year.

Relaxation workshops

Studies show that sickness absence due to challenging workplace situations – in

other words, stress – is rocketing. Deadlines, changing working conditions,

perfectionism and increasing demands can trigger stress. The consequences

vary, but are associated with high costs for employees and businesses alike.

Lost working hours caused by sickness or an increased risk of accidents are a

serious issue. Chocolats Halba has therefore been offering staff a free weekly

relaxation workshop since 2012 in addition to cut-price massages. A varied

programme enables interested participants to learn all about ways of proactively

managing stress.

Chocolate tastes best in an optimum working environment In 2012, additional goals on systematic employee development were included in the sustainability strategy.

Employees » 20

Outstanding flavour, and recognition by independent organizations In 2012, sales of products labelled as carbon-neutral, organic and Fairtrade rose by 35 percent.

«Labels provide added value

« 21

Differentiation thanks to sustainable products

As a private-label specialist, Chocolats Halba manufactures speciality chocolate products for the retail trade and

industry. Chocolats Halba actively informs its customers of the added value generated by procuring sustainable raw

materials and offsetting emissions within the value chain. As a service offering, Chocolats Halba facilitates direct

involvement in projects with cooperatives and also provides communication support. These product concepts set us

apart and lead to competitive advantages.

Innovation: carbon-neutral products

At the International Sweets and Biscuits Fair in Cologne in 2011, Chocolats Halba was the fi rst manufacturer to present

chocolate bearing the label „carbon-neutral product“ beside the familiar organic and Fairtrade logos. All emissions

generated along the product value chain, from source to consumer, are calculated in conjunction with the climate

protection foundation „myclimate“, and offset within Chocolats Halba‘s own value chain.

This innovation is having an impact on the percentage of labelled products as a proportion of total sales. In 2012,

23 percent of all products sold were labelled. In 2012 alone, 12 million carbon-neutral products were sold.

Tailor-made product concepts

In addition to certifi ed products, Chocolats Halba has since 2012 been offering a comprehensive range of sustainability-

related services. Participation in projects in the cocoa origins countries, for example involving reforestation, offer dealers

added value with a variety of communication opportunities. Consumers trust dealers who support sustainability in their

core business. Chocolats Halba has therefore been supporting its customers since 2012 with communication services

such as fi lm clips, photos and stories relating to their products. This offering was launched at the same time as

Chocolats Halba‘s new website in 2012. Chocolats Halba has since 2012 been communicating the value added

by sustainability in word and image via its strapline „the better chocolate“.

Innovative customer solutions

Chocolats Halba‘s annual customer satisfaction survey focuses on collaboration, service quality, range and product

policy and, since 2012, also sustainability. It is perceived as being partnership-oriented and reliable. Sustainability

is another key value that customers associate with the company. Chocolats Halba has been able to increase customer

satisfaction year on year, and not only tap into new markets but also implement innovative tailor-made concepts

there. One example of this is the introduction of carbon-neutral organic chocolate on the Chinese market.

Percentage of products that are labelled

10

15

20

25

%

0

5

2010 2011 2012

labelled products as a percentage of all sales23%

Carbon-neutral products sold

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Number

0

2,000,000

2010 2011 2012

carbon-neutral products sold12 million

Sustainable products and services

«Labels provide added value

» 22


Increase sales of labelled products (organic, Fairtrade and carbon-neutral) from

CHF 6.2 million to

CHF 23.9 million between 2009 and 2012

Innovation: carbon-neutral products with emissions offset within the company‘s value chain.

Increase sales of carbon-neutral products from

0 to CHF 10.7 million between 2009 and 2012

Offer sustainability and communication services for customers (planting hardwood trees, protecting the rain forest, fi lms/photos/stories about cocoa farmers)

Employees

Impart the value of sustainability: conduct a direct annual

exchange between Chocolats Halba staff and people from cocoa-growing areas


Buy 95 % % of cocoa beans from Fairtrade sources

Ensure cocoa bean supply chains are transparent. Chocolats Halba knows at-source suppliers personally and visits them regularly

Launch Honduras fl agship project: multi-stakeholder project to rebuild the Honduran cocoa sector

Commence diversifi cation projects with three out of four cocoa cooperatives

Plant and fund 100,000 hardwood trees

100 % of paper-based packaging FSC-certifi ed or made from recycled materials

Sustainable sourcing guidelines introduced and signed with suppliers

Conduct annual sustainability risk assessment of raw materials used

Defi ne sustainable sourcing standards for cocoa butter, palm oil, hazelnuts and soya lecithin

Sustainability strategy goals achieved 2009-2012

Management

Give all management staff annual profi t-sharing- dependent goals or measures relating to

sustainability Draw up new sustainability strategy for 2013-2015

as part of an intensive

stakeholder dialogue Set up separate Sustainability Department

that is represented directly in

divisional management

Goals for 2009-2012


Reduce environmentally harmful greenhouse gas

emissions resulting from chocolate production by 31% while simultaneously increasing production volumes

Manufacture climate-neutrally by offsetting remaining emissions within the company‘s value chain

« 23


• Buy 100% of cocoa beans directly and fairly

• Launch reforestation projects with all cocoa cooperatives

• Plant at least 500,000 hardwood trees in partnership with cocoa cooperatives

• Ensure 100% of cocoa butter is certifi ed in accordance with international

standards and/or is 100% traceable

• Buy 100% of palm oil, soya lecithin and hazelnuts sustainably

• Reduce the weight of packaging material by 10% and its environmental

footprint by 5% compared with 2011

Sustainability strategy goals set for 2013-2015


• Reduce operational greenhouse gas emissions by 30% in CO2-equivalent terms and by 50%

per 100 grammes of chocolate produced compared with 2008

• Increase energy effi ciency by 10% in terms of kWh per kilogramme of chocolate produced

compared with 2008

• Offset within the cocoa value chain 100% of the operational greenhouse gas emissions

that cannot be reduced

Employees

• Provide staff with at least two training and development

days per person per year. Provide management emplo-

yees with at least six training and development days per

person per year

• Still hold a direct employee exchange each year with

people from a cocoa-growing area

• Still provide 100% of management employees with at

least one sustainability-related measure or target

• Increase the percentage of women in management posi-

tions by at least 25%

• Ensure at least 80% of management employees have

successfully completed a management course

• Fill at least 75% of management vacancies through

internal recruitment


• Increase sales of labelled products by at least CHF 30 million

• Increase sales of products made with Honduran cocoa by CHF 3.5 million per year

• At least fi ve customers are partners in Chocolats Halba‘s projects involving cocoa cooperatives

• At least 60% of customers perceive Chocolats Halba to be the most experienced supplier of

sustainable chocolate

• Customer satisfaction levels exceed 80% each year

Goals for 2013-2015 » 24

Key sustainability data

Sustainable purchasingFairtrade

2010 2011 2012Fairtrade certified cocoa beans as a percentage of total volume purchased 10% 75% 95%Fairtrade certified cocoa butter as a percentage of total volume purchased 6% 12% 32%

2010 2011 2012Fairtrade premiums paid for cocoa in USD 107,975 709,750 830,730

Corporate environmental protectionWater

2010 2011 2012Water consumption in m3 21,075 27,476 20,901

Material consumption and recylcled material usedMaterial consumption for chocolate production in tonnes 2010 2011 2012Raw materials 11,842 12,733 13,209Packaging material 2,299 3,679 2,934 Recycled packaging material (percentage of total material) 1,350 (10%) 2,245 (14%) 2,080 (13%)Operating supplies 8 7 7

Packaging material in tonnes 2012Total packaging material 2,934Renewable packaging material (percentage of packaging material) 2,758 (94%) Cardboard 191 Corrugated cardboard (recycling) 2,330 (2,080) Paper 245Non-renewable packaging material (percentage of packaging material) 176 (6%) Film 84 Aluminium 84

Waste Waste in tonnes 2010 2011 2012Recycled waste 492 576 559 Incinerated waste 191 163.6 156 Special waste (solvents) 0.2 0.2 0.2 Total waste 683.2 739.8 715.2 Total waste (CO2 equivalent tonnes) 107 97 95

Waste recycling rate 72% 78% 78%

Efforts to separate and recycle wasteElectrical waste outsorted and recycled

Cooking oil from staff canteen outsorted and recycled into diesel

Change to measuring methods in works laboratory: reduction in solvent waste

« 25

Key sustainability data

Energy consumptionDirect energy consumption, in gigajoules 2010 2011 2012Direct energy consumption from non-renewable energy sources (heating oil, natural gas, diesel) 16,900 14,502 16,394Direct energy consumption from renewable energy sources none none noneTotal 16,900 14,502 16,394

Indirect energy consumption (electricity, district heating), in gigajoules 2010 2011 2012Energy consumption from secondary energy – non-renewable sources 31,048 33,604 32,502Energy consumption from secondary energy – renewable sources 8,206 8,786 8,508Total 39,254 42,390 41,010

Energy required to produce the secondary energy consumed, in gigajoules 2010 2011 2012Non-renewable primary fuels 93,916 101,786 98,434Renewable primary fuels 278 63 86Total 94,194 101,849 98,519

Energy consumption per kg of chocolate in kWh 2010 2011 2012Energy consumption for heating purposes 0.39 0.31 0.38 Electricity consumption 0.91 0.94 0.95 Total heating and electricity 1.30 1.25 1.33 Fuel consumption 0.007 0.008 0.007

2010 2011 2012

Initiatives to reduce greenhouse gas emissions

- Optimizing step switching mechanisms on heat pumps - Reducing pressure in steam generator - Replacing chillers

- Exchanging trans-former for a more efficient model

- Insulating the base of conches - Exchanging resis-tance heating for heat pumps - Test project for LED office lighting

Savings achieved in CO2e* tonnes 91.0 0.2 7.4

Greenhouse gas emissionsGreenhouse gas emissions in tonnes of CO2e* 2010 2011 2012Direct greenhouse gas emissions (equates to GHG Protocol scope 1) 1,056 907 1,024Indirect greenhouse gas emissions (equates to GHG Protocol scope 2) 8.20 0.82 1.11Other indirect greenhouse gas emissions (equates to GHG Protocol scope 3) 32,324 36,429 35,274

*CO2e: CO2 equivalent: In order to compare different greenhouse gases, their impact on the climate is specified as a CO2 equivalent.

» 26

Sustainable products and servicesSales (CHF millions) 2010 2011 2012Total sales 105.9 111.3 103.1Swiss sales 88.1 88.5 83.3Foreign sales 17.8 22.8 19.8

EmployeesWorkforce 2012Total men (percent) 121 (52%)Total women (percent) 111 (48%)Total workforce 232Type of employment contractPermanent men: absolute (percent) 114 (49%)Temporary men: absolute (percent) 7 (3%)Permanent women: absolute (percent) 104 (45%)Temporary women: absolute (percent) 7 (3%)Average training hours by position and genderDivisional management 8Management 18Staff on collective employment contract/monthly pay 12Remainder (auxiliary employees, collective employment contract hourly paid, trainees) 0Women 9Male 17

Percentage of divisional management posts held by women 0%Percentage of management posts held by women 20%

Sickness rate 2.90%Accident rate 1.30%

2010 2011 2012Number of carbon-neutral products sold 1,049,261 9,536,578 11,902,146

2010 2011 2012Customer satisfaction (percent) 68.8 82.5 86.7

Sales of Fairtrade, organic and carbon-neutral products in CHF thousands and as a percentage 2010 2011 2012Fairtrade 0 (0%) 5,513 (5%) 9,741 (9%)Organic/Fairtrade 7,496 (7%) 2,850 (3%) 2,872 (3%)Carbon-neutral/organic/Fairtrade 0 (0%) 6,292 (6%) 7,323 (7%)Carbon-neutral/Fairtrade 0 (0%) 148 (0%) 2,687 (3%)Carbon-neutral 1,051 (1%) 2,629 (2%) 721 (1%)Organic 137 (0%) 276 (0%) 513 (0%)Labelled (organic/Fairtrade/carbon-neutral) 8,684 (8%) 17,708 (16%) 23,858 (23%)Conventional 97,216 (92%) 93,592 (84%) 79,243 (77%)Total 105,900 (100%) 111,300 (100%) 103,100 (100%)

Key sustainability data« 27

GRI indicator Subject Status Page Comment

Strategy and profi le

1.1 Statement from the most senior decision maker

Forewords 3, 4

2.1 Name Portrait 6

2.2 Primary brands, products and/or services

Portrait 6

2.3 Organizational structure Organization chart, Portrait 6

2.4 Head offi ce Portrait 6

2.5 Countries in which the organization operates

Portrait 6

2.6 Nature of ownership and legal form

-

As a division of the Coop Cooperative, Chocolats Halba is wholly owned by Coop. Chocolats Halba is not a legal entity in its own right, and is fully integrated into the Coop Cooperative.

2.7 Markets served Portrait 6

2.8 Scale of the organization Table of key fi gures 6, 27

2.9

Signifi cant changes du-ring the reporting period regarding size, structure or ownership

-

Since this is the fi rst Chocolats Halba sustainability report, there are no signifi cant changes to report.

2.10 Awards and prizes received

- None.

3.1 Reporting period About this report 0

3.2 Date of most recent previous report

- This is Chocolats Halba‘s fi rst report.

3.3 Reporting cycle About this report 0

3.4Contact point for questi-ons regarding the report or its contents

Publishing details 32

3.5 Process for defi ning report contents

About this report 0, 7, 8

GRI table


3.6 Scope of the report About this report 0

3.7 Specifi c limitations on the report scope

About this report 0

3.8 Business units included About this report 0

Since this is Cho-colats Halba‘s fi rst report, there are no signifi cant changes to report.

3.10 Explanation of any res-tatements of information

-


3.11 Explanation of any chan-ges to report parameters

-


3.12 GRI table This table 28-30

4.1 Governance structure Organization chart 6

The Coop Board of Directors performs the function of independently su-pervising Chocolats Halba. As part of the Coop Cooperative, Chocolats Halba‘s corporate manage-ment is committed to openness and transparency.

See also Coop Annual Report 2012 pages 46-51 and Coop Sustainability Report 2012 page 6. www.coop.ch/grund-saetze (Strategy and organization / Internal organization of sustainability)

4.2 Independence of Chair of the Supervisory Board

-

The Chairman of the Coop Board of Directors is not also the Chair of the Coop Executive Commit-tee. See also Coop Annual Report 2012, pages 47, 49

Key: We are reporting fully on this indicator We are reporting partially on this indicator FP GRI Food Processing Sector Supplement indicators

» 28


4.3Controlling body and independent members of corporate management

-

The divisional management of Chocolats Halba reports to Coopcorporate management via the Head of Information Technology and Manufacturing. The Coop Board of Directors performs the function of independently supervising Chocolats Halba. See also Coop Annual Report 2012, pages 47-48

4.4 Giving employees their own say

-

Coop‘s executive bodies grant Chocolats Halba employees the right to have their own say. See Coop Annual Report 2012 page 47 www.coop.ch/organe (Cooperati-ve/Statutes)

4.14 Stakeholder groups involved

Strategy, About this report

0, 7, 8

4.15 Identifi cation and selec-tion of stakeholder groups

Strategy, About this report

0, 8

SUSTAINABLE PURCHASING

FP1

Percentage of purchased volume from suppliers compliant with the company‘s sourcing policy


10

FP2

Percentage of purchased volume which is verifi ed as being in accordance with credible, inter-nationally recognized responsible production standards, broken down by standard.

Sourcing cocoa beans directly and fairly

Percentage of cocoa butter (in text)

Figure: Percentage of Fairtrade cocoa beans

11, 22, 25,27



Innovation: Carbon-neut-ral products

Table of key fi gures

ECONOMIC PERFORMANCE

EC1 Direct economic value generated and distributed

Figure: Fairtrade premiums by country

11

EC2 Financial implications due to climate change

Innovation: Carbon-neut-ral products


22

The risks are mainly due to changing climatic conditions in cocoa-growing areas. No regulatory risks have been identifi ed. Management are considering the opportunities and risks associated with climate change. For example, strategic projects are being drawn up for all raw materials with asso-ciated risks caused by climate change. The fi nancial consequences of failed harvests, which result in increased prices, cannot be precisely quantifi ed.

Key: We are reporting fully on this indicator We are reporting partially on this indicator FP GRI Food Processing Sector Supplement indicators

« 29

GRI-Indikator Thema Status Seite Bemerkung

ECOLOGICAL PERFORMANCE

EN1 Materials used by weight or volume

Table of key fi gures 25

EN2Percentage of materials used that are recycled input materials


EN3 Direct energy consumption

Figure: Year-on-year comparison

Energy consumption

26

EN4 Indirect energy consumption


EN8 Water consumption Table of key fi gures 25

EN16Total direct and indirect greenhouse gas emissions by weight.

Table of key fi gures 16, 26

The greenhouse gas emissions were calculated based on energy and material consumption fi gures and transportation routes in accordance with GHG Protocol guidelines.

EN17 Other indirect greenhouse gas emissions by weight.

Table of key fi gures 16, 26

EN18Initiatives to reduce greenhouse gas emissions and reductions achieved

Reducing greenhouse gas emissions


16, 17,26

EN22 Waste Table of key fi gures 18, 25

SOCIAL PERFORMANCE

Working conditions and employment

LA1

Total workforce by employment type, employment contract and region.



LA7 Injuries/ occupational diseases/ fatalities


Relaxation workshops

20, 27

LA10

Average hours of training per year per employee and helper by gender and by employment category.


Human rights

HR6 Child labour

Tackling child labour

Info box: Programme to avoid child labour in Ghana


10, 13, 14

Product responsibility

FP5

Percentage of production volume manufactured at sites certifi ed by an independent third party according to internationally recognized food safety management system standards.

Customized indulgence

BRC, IFS certifi cation

6

PR5

Practices related to customer satisfaction, including the results of customer satisfaction surveys.


22, 27

Key: We are reporting fully on this indicator We are reporting partially on this indicator FP GRI Food Processing Sector Supplement indicators Key: We are reporting fully on this indicator We are reporting partially on this indicator FP GRI Food Processing Sector Supplement indicators

» 30

Publishing details

We would be pleased to receive your feedback on this report.

If you have any feedback or questions, please contact:

Anton von Weissenfl uh, Head of Chocolats Halba

Anton.VonWeissenfl [email protected]

Christoph Inauen, Head of Sustainability

and Cocoa Purchasing, Chocolats Halba

[email protected]

Editing: Chocolats Halba

Layout / graphics: BrainFactory

Photography: Filipa Peixeiro, Wolfram Schroll

GRI consultancy: BSD Consulting

«Bearer of hope: planting hardwood trees in Peru.

Passion for Chocolate. Pleasure for your Brand.Chocolats Halba

Division of CoopAlte Winterthurerstrasse 1CH-8304 Wallisellen

Phone +41 44 877 10 10 Fax +41 44 877 19 [email protected]

Consumers

Cocoa farmersChocolats Halba

Environment& climate

Customers

Transparent cocoa bean value chains

New research programme launched to improve cocoa quality in Honduras

1st place awarded by independent Swiss consumer magazine in Easter bunny quality test

12 m chocolate bars sold have sustainability information on their packaging

58,118hardwood trees planted

542 hacocoa plantations in Honduras certified as transitional organic

2,456 tonnes of labelled chocolate products sold

86.7% satisfied customers

Initial range of environmental and communication services

First delivery of transitional organic cocoa beans from Honduras

100% of paper-based packaging FSC or recycled

180ha reforested using cocoa and

hardwood trees in Honduras

59 communities in Honduras trained in sustainable cocoa cultivation

Year-on-year increase in labelled product sales of

CHF 6.2 million

USD 830,730 of Fairtrade premiums

USD 10,000 spent on anti-child labour programme in Ghana31% reduction in operational CO2 emissions

compared with 2008

95% cocoa beans procured in accordance with Fairtrade standard

Added value for everyone – the better chocolateIn 2012, we generated the following added value:

added value through sustainability - chocolats...

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