🎺Hot off the press🎺
New research @IOPenvironment on the deforestation hidden in the Côte d’Ivoire #cocoa supply chain, source of 40% of the world’s 🍫.
Four key take-aways. 🧵
1.Cocoa is a major driver of deforestation. Building on a new high-resolution, high-accuracy cocoa map, we identify 2.5 Mha of cocoa deforestation and degradation from 2000-2019, making cocoa responsible for 46% of the total deforestation and forest degradation in the country.
“Cocoa deforestation” being the loss of undisturbed tropical moist forest to cocoa & “cocoa degradation” where cocoa overlapped areas which underwent a change from undisturbed -> degraded forest. (Cocoa is a tree crop, blurring the traditional notions of 'deforestation'...)
2.Cocoa trading is consolidated: In 2019, 8 traders (Cargill, Barry Callebaut, Olam, Touton, Sucden, S3C, ECOM, & Africa Sourcing) handled ⅔ of exports. We mapped direct sourcing from cooperatives & indirect sourcing from local intermediaries, as best we could using public data
3.The sector is struggling with traceability.
Companies have been talking about deforestation, child labour, farmer incomes, etc, for more than a decade, but we still don’t know much of the cocoa they source comes from, nor what their impact is. 🤷
Only 44% of exports can be traced back to specific cooperatives. The majority of cocoa (55%) remains untraced, either indirectly sourced from local intermediaries by major traders (24%) or exported by traders who disclose no information about their suppliers (32%).
Companies face an uphill climb to meet new EU #DueDiligence legislation’s requirement for farm-level traceability.
We estimate that traders in the Cocoa and Forests Initiative (CFI) have mapped 40% of the farms supplying them, representing only 22% of all Ivorian cocoa exports.
Note: in their CFI progress reports @WorldCocoa ignores ‘indirect sourcing’, even though it makes up about half of all cocoa in the country.
To tackle the challenge, a lot of expectation is being placed on new national-level traceability systems 🤞
4.Current Corporate Social Responsibility (CSR) approaches are somewhat divorced from reality.
Certification schemes (UTZ/Rainforest Alliance/Fairtrade) & company sustainability programs (e.g. Mondelez’s Cocoa Life) rely on mass-balance systems to market ‘sustainable’ cocoa…
But certification has a mixed performance & mass-balance means that cocoa from certified & uncertified origins are mixed, with companies relying on paper-credits (not dissimilar to offsets).
So while in Germany >70% of chocolate is sold as certified, by mapping physical flows (rather than paper credits), we identify 108,000 ha of deforestation embedded in their 2019 imports.
There’s a lot of duplication of effort – with many cooperatives being double or triple certified and companies frequently buying from the same landscapes, but rarely collaborating to tackle issues systemically.
This was a team effort, with the data masterfully pulled together by Cécile Renier & Mathil Vandromme, plus inputs from the rest of the team: @PMeyfroidt, @TraseEarth, and @ETH.
Here, we focused on deforestation, as a major concern for global climate & biodiversity. But that’s just one of many sustainability & equity issues in the 🍫 sector.
In Nov 2021 the EU commission published a proposal for regulation on deforestation-free trade. After back-&-forth with experts & two debates in the Council, a revised draft was published in June. I'm now reading through - here are some (not so) #HotTakes.
101: the legislation is designed to prevent the import into the EU of coffee, cocoa, palm oil, soya, beef and wood products which are limited to recent deforestation.
These products must be legally produced & companies placing goods on the EU market - ie commodity traders- must submit a due diligence statement that the risk their products is linked to deforestation is 'negligible'.
A handful of commodities (🐮🌴🍫☕️) cause a third of all #deforestation, harming millions of forest-dependent people, the climate & biodiversity
A few commodity traders (Cargill, Wilmar, Olam, etc) handle this trade
Here’s what you need to know about their sourcing practices 🧵
The supply chains which move commodities around the world are oft described as an hourglass.
Thousands of farmers supply a handful of commodity traders who in turn supply millions of downstream customers.
When downstream companies (manufacturers, retailers) make sustainability commitments, they rely on the traders who supply them to implement these commitments.
Ditto new #DueDiligence legislation which bans the import of products linked to deforestation or human rights abuses.
Currently watching a superb webinar from @StandMighty presenting a host of cutting-edge work on #cocoa supply chains, including an update to their accountability map. A live-thread with some of the insights... mightyearth.org/cocoa-accounta…
@VividEconomics presented a huge effort to map land uses in Côte d'Ivoire - which lost 2% of its forest cover IN ONE YEAR
Their data show staggering rates of forest loss for #cocoa in some regions, e.g. Bloléquin
We show that a lot of information is hidden in the commonly used ‘representative’ environmental footprints of products. For accurate assessment you need supply chain specific data & @TraseEarth data allows you do this at large scale. 1/
Calculating the environmental/carbon footprint of products is hard, not least because many products are internationally-traded, which means that you may need data on production practices from the other side of the world.
Normally, people estimate the impacts embedded in trade in one of a few ways – using some kind of bilateral trade data (e.g. Environmentally-Extended Multi Regional Input Output, or EE-MRIO, models) or using product-specific life cycle assessments (LCA).