ofi Cocoa Compass report shows gains on reducing emissions and raising farmer pay

Global ingredients group ofi has marked notable environmental performance progress, as its Cocoa Compass Impact Report records a 12% drop per tonne reduction of greenhouse gas emissions in its supply chains, writes Neill Barston.

Significantly, in addition to reaching its goals laid down last year against a 2018 baseline, the business has also reportedly made its 2030 living income target, with 155,000 farmers it works with now earning improved wages.

According to the company, this represented a total of 45% of agricultural workers in its global cocoa sustainability programmes, with its Cocoa Compass initiative supporting communities operating in the sector was recognised with an FiEurope award last week.

Andrew Brooks ofi, Global Head of Cocoa Sustainability, welcomed the company’s latest results, which have built on a two decades of ongoing work within the sector to enhance its operations.

He said: “We’re continuing to invest in farm-level engagement and ingredient innovation by leveraging the scale of our integrated business model. This enables us to de-risk supply chains, and help deliver more sustainable, high-quality cocoa ingredients and tailored food solutions to our customers that meet evolving consumer demands.

“Our latest impact in our cocoa supply chain is supporting our ambition of being the preferred partner for positive change, in line with our overarching sustainability strategy- Choices for Change. As we continue towards 2030, our focus will be on maintaining this progress and enable more sustainable outcomes for cocoa production against the unpredictability of fluctuating markets and climate changes.

As the business noted, the ofi’s Cocoa Compass impact report marks the halfway point between the 2018 baseline for its Cocoa product sustainability strategy, and 2030 targets. Other key 2024 achievements in the report are:

9.8 million trees distributed for agroforestry programs(cumulative)
257,000 farmers trained in Good Agricultural Practices(annual)
320,000 cocoa farmers received livelihood support (annual)
6 active landscape partnerships(annual)
40,000 children received education support(annual)

As the company noted, farmer incomes are influenced by multiple factors such as weather and markets prices, which has seen high volatility in the last three years. In 2024, it resulted in prices increasing sharply, influencing the increase in farmers earning a living income. Conversely, a drop in the market price in the future would have the opposite effect.

ofi is using living income as a valuable contextual indicator, serving as a north star to gauge economic status and guide its interventions, and its gains in this area  have been enabled due to cocoa market price increases, and livelihood support.

Notably, the company confirmed that it has provided 320,000 farmers with backing to be  more resilient to the market and climate shocks. This approach enables tailored training and practical livelihood support to be delivered over multiple years, through long-term collaboration with our customers and partners.

Natural capital acknowledges the importance of nature to ofi, tracking its progress to mitigate against climate and environmental risks that could disrupt future supply. The company’s Natural Capital progress, came from reductions in land-use change emissions, and sequestration from both cocoa and forest trees planted on farms as part of agroforestry activities.

Andrew Brooks concluded: “The industry, including governments and NGOs, need to rally together to rethink how we’re tackling challenges like crop disease, deforestation, particularly in West Africa. With cocoa crop reductions expected, and demand destruction already having an impact on product formulations, we need to find collective solution that is good for cocoa farmers, good for food and beverage processors and manufacturers, and good for consumers as well”.