Reshaping the
Future of Cocoa
2020 ReportContents

ABOUT THIS REPORT

About this report

1

Introduction

2

Our highlights

3

Support during COVID-19

4

Forging a new path for cocoa5

Our commitment

6

Our bold strategy

7

Performance: Responsible Cocoa

8- Protect children

9- Preserve forests

10- Improve farmer income

11

The journey to Sustainable Cocoa

12

Cacao plant science

13

Looking ahead

14

Protectchildren
FIND OUT MORE ABOUT OUR FOCUS
ON PROTECTING CHILDREN ON PAGE 9.

Preserve
forests
FIND OUT MORE ABOUT OUR FOCUS
ON PRESERVING FORESTS ON PAGE 10.

This is our second Cocoa for Generations report.
It provides detailed information and measuresof our 2019 progress and highlights key 2020
achievements to date. In addition, it communicatesthe investments made and actions taken by Mars
Wrigley to help combat the effects of the global
COVID-19 pandemic on cocoa farming communities
since March 2020.
Throughout this report, we reference our
cocoa supply chain and various metrics to help
communicate our performance and actions. With
respect to this information, please note that:(i) numbers are cumulative unless statedotherwise; (ii) countries of origin and suppliervolumes fluctuate regularly, so year-on-yearcomparisons are not always possible; (iii) the
information may be based on market data, reports
from suppliers (including reports on activities
funded by Mars and implemented by suppliers
or other third parties), and/or agreements with
suppliers; and (iv) Mars sources cocoa via themass balance approach, where all the cocoa wesource under this approach corresponds with thecocoa produced by farmers in our Responsible
Cocoa program and by 2025 we aim for cocoa fromfarmers in these programs to be traceable from thefarmer to the first point of purchase.

Improve
farmer income
FIND OUT MORE ABOUT OUR FOCUS ON
IMPROVING FARMER INCOME ON PAGE 11.

COCOA FOR GENERATIONS 2020 REPORT | 1

Introduction
Cocoa is close to our hearts – it is at the coreof the chocolate brands our consumers love,and key to the lives and livelihoods of the
farmers and communities we work with, careabout, and depend on.

foundation for impact as we confront complex challenges
that can put the livelihoods of many cocoa farmers and thehealth of our planet at risk.

At Mars Wrigley, we are committed to creating a more
modern, inclusive and sustainable cocoa supply chain for the
next generations. This starts with our extensive work on plantscience, working and sharing with farmers the latest farming
techniques, and helping to empower women and cocoa
farming communities, while working to protect children
and forests.

• Protecting children, preserving forests and improving
farmer income;We are delighted to share our progress in this year’s report.
We are scaling up our programs to reach even more cocoa
farmers and cocoa-farming communities, creating a strong

For Mars Wrigley, confronting these challenges means
continuing our journey to work toward and scale up
the following:

We have been buying cocoa and making chocolate for morethan 100 years. We have a responsibility to help create asustainable and inclusive cocoa supply chain, which is why
we are tackling these challenges head on through our Cocoa
for Generations strategy.
Launched in 2018 and built on past learnings, Cocoa for
Generations is backed by a US$1 billion investment over 10
years (2018-2028).

• Cracking the code on modern sustainable cocoa farming
and innovating with smallholder farmers to help improve
the health and productivity of their farms; and• Leading the way by challenging ourselves, our partners
and peers to evolve by adopting new approaches thatdeliver greater impact where it matters most – in cocoafarming communities.

MARS WRIGLEY AND COCOA – A NEW APPROACH
FOR A BETTER TOMORROW
We believe The World We Want Tomorrow Starts With How We
Do Business Today. We are guided by our Five Principles – Quality,
Responsibility, Mutuality, Efficiency and Freedom – and by our
Purpose: Better Moments Make the World Smile.
Cocoa for Generations builds on Mars’ Sustainable in a Generation plan launched in 2017.
In line with these goals, we’re determined that across our value chain human rights arerespected, the environment is protected, and everyone has the opportunity to thrive.
Achieving our ambitions is essential to the long-term sustainability of cocoa – an integral
ingredient in many of our products – and to delivering better moments for consumers
around the world who enjoy our chocolate brands.

LEARN MORE ABOUT SUSTAINABLE IN A GENERATION HERECOCOA FOR GENERATIONS 2020 REPORT | 2

Our highlights

153,411$5m

donation in a collaboration
with CARE to support farming
communities, including cocoa,
impacted by COVID-19

farms have had theirboundaries mapped

51%

12,134of the total volumes CARE VSLA
of cocoa we sourced members, whofrom at-risk areas
collectively savedin Côte d’Ivoire and
US$1.7 million
Ghana came fromfarmer groups thathave a CLMRS in place1

2.4m

cocoa seedlings distributed tofarmers in 2019 through morethan 350 cocoa nurseries and1,520 demonstration plots anddistribution networks212Child Labor Monitoring and Remediation System (CLMRS)
These data points are for 2019 only

Together, Mars and UC DAVIS recently
opened a hub for Innovative cocoa
plant science aimed at further
advancing their decades of research
into breeding healthier, more resilient,and higher-yielding cocoa trees

189,594
farmers in our Responsible
Cocoa program in 20192

COCOA FOR GENERATIONS 2020 REPORT | 3

Support during COVID-19
SUPPORTING FARMERS AND THEIR COMMUNITIES
Throughout most of 2020, the world has been
confronting COVID-19, which has hit cocoa
farming communities particularly hard. Many
farmers already living on low incomes now havethe added complexity of the virus to deal with. At
the same time, serious health and safety risks andmeasures, such as social distancing, have limited
the training and other support services that thefarming communities would have otherwise
received.

KEY ACTIONS

Despite these difficulties, the extraordinary
resilience of cocoa farming communities has
endured. Guided by our Five Principles, wehave acted quickly to help communities maintaintheir health and well-being, which is so criticalto that resilience. The many ways we’ve cometogether with origin country governments to
support farming communities in the face of
COVID-19 signals the tremendous potential of
public-private collaborations to face down thesocial, economic, and environmental challenges
impacting cocoa farmers.

• We donated US$5 million to CARE, of which US$2.6 million went toprovide critical supplies and expertise to women, children, and refugee
populations in Côte d’Ivoire and Ghana.
• To date, we have supported more than 36,000 people in cocoa-farming
communities with hygiene kits.
• Through our Responsible Cocoa program premiums, we’ve supported 664
communities and 77 farmer groups with personal protective equipment
and handwashing stations.
We remained committed to sourcing cocoa through our Responsible Cocoa
program, helping 189,000 farmers continue to provide for their families
when it mattered most.

“In Ghana and Côte d’Ivoire, the
COVID-19 pandemic increasedtransportation costs and, with it,increased the pressure on families
already working hard to meet theirhousehold needs. Now, more thanever, we must stand ready to support
cocoa farmers as they continue toface the challenges brought on by
the pandemic.”
ALEX ASSANVO,CORPORATE AFFAIRS DIRECTOR, COCOA

CÔTE D’IVOIRE AND GHANA
Through our US$2.6 million donation, and inalignment with the national action plans of Côte
d’Ivoire and Ghana, our long-time expert partner
CARE acted quickly to bring much needed aid tococoa-farming communities in the two countries
in the form of hygiene information and protection
kits, public handwashing and hygiene stations,and birth kits.

ECUADOR
Our La Chola sourcing and research farm near
Guayaquil provided support to workers, families,
and neighboring rural communities that weresignificantly impacted by COVID-19. With a holistic
approach to wellbeing, we secured massive
testing for our Associates, disinfected streets, andprovided sanitation equipment, following thehealth and security protocols of the authorities. We
also role modeled with recovery and return to work
policies which we exchange with local producers.

INDONESIAIn Sulawesi, Indonesia, we provided personal
protection equipment (PPE) to cocoa farmers
and distributed educational materials on
COVID-19 prevention. In addition, we donatedapproximately US$33,000 of PPE to medical
personnel and frontline health workers at
Hasanuddin University (Unhas) Hospital.

BRAZIL
Our Mars Center for Cocoa Science (MCCS)
located in Barro Preto, south of Bahia, organized
the donation of food parcels to the worst hit
families in the rural community. Between May
and September 2020, the MCCS delivered 670
food parcels to 140 families along with one ton ofnutritional food for dogs and cats.

COCOA FOR GENERATIONS 2020 REPORT | 4

Forging a new path for cocoa
THE MULTIFACETED SUPPLY CHAIN CHALLENGE
Cocoa is not only a key ingredient for us, but also essential to
the livelihoods of some six million cocoa farmers worldwide.
But this critical crop is also a fragile one that must be
carefully safeguarded.
Cocoa trees flourish in tropical regions just north and southof the Equator. They are mainly grown by smallholder
farmers with plots of four hectares or less and using
traditional and inefficient agricultural practices. Far too many
cocoa farmers in Côte d’Ivoire and Ghana, where more than
60% of the world’s cocoa is grown, live below the WorldBank extreme poverty line, earning less than US$2,500
annually per household and do not have basic infrastructuresuch as roads, access to water in their homes, mobile
connectivity or banking. These challenging socio-economic
conditions can limit opportunities for cocoa farming families
to earn a sufficient income.
In addition, the cacoa crop is fragile because it is vulnerable
to pests and diseases. This vulnerability, combined withpoor agricultural practices, can reduce farmers’ yields andincrease pressure on farmers to find ways to supplement
their income. Further, limited access to basic infrastructure
in remote areas where cocoa is grown, and inadequate
access to quality education, can increase the risk of children
working in harmful conditions rather than having theopportunity to learn and develop in school.
OUR INTEGRATED RESPONSE
Today’s supply chain is not in line with our ambition thateveryone — especially cocoa farmers — should have theopportunity to thrive. That’s why we’re determined toprogress the transformation of the cocoa supply chain.
In collaboration with our suppliers, we aim to achieve a
deforestation-free cocoa supply chain, advance respect forhuman rights, and ensure farmers are fairly rewarded for thecocoa they grow.

We know how important the role of government is in all
this and we support appropriate legislation as a catalyst
for positive change, both through strong enforcementof existing laws in cocoa growing countries and, whereappropriate, the pursuit of mandates, such as human rights
due diligence requirements in the European Union and inother cocoa consuming countries and regions.
Together with others, we continue to work hard to reshape
the cocoa supply chain – engaging hands-on, learning out
loud and creating new approaches that can help to raiseindustry standards. It’s our way of creating the world wewant tomorrow, starting with how we do business today.

Achieving this transformation will require comprehensive
long-term solutions and close collaboration among a rangeof stakeholders including farmers and suppliers, local andglobal governments, the private sector, non-governmentalorganizations (NGOs), and multilateral institutions.

“Cocoa farmers are critical for the world’s
chocolate supply and for Mars’ business.
So it’s vital that we work to address theissues that matter most to them, likeincreasing their income, protecting children,
supporting women’s social and economic
empowerment, and tackling deforestation.
Over many years we’ve put significant
investment into helping cocoa communities.
But there’s more to do, and we’re committed
to creating a sustainable and inclusive cocoa
supply chain where everyone can thrive forgenerations to come.”
ANDREW CLARKEGLOBAL PRESIDENT, MARS WRIGLEYCOCOA FOR GENERATIONS 2020 REPORT | 5

Our commitment
RESHAPING THE COCOA SUPPLY CHAIN
We are determined to help reshape the cocoa supply chain
so that human rights are respected, the environment is
protected, and everyone has the opportunity to thrive. We
are bringing this commitment to life through our Cocoa for
Generations strategy.
It’s how we’ll work toward a step-change for the better —helping to build resilient rural communities, protect children,
preserve forests, increase farmer incomes, and crack thecode on a model of sustainable cocoa farming for tomorrow.
EMPOWERING COCOA FARMERS TO THRIVE
Our Cocoa for Generations strategy places the interestsof the smallholder farmer at its center and invites everyone
involved to partner with us. Our ambition is to deliver
meaningful change for a better today and create a sustainablecocoa supply chain for tomorrow.

WORKING TOGETHER TO HELP PROTECT CHILDREN ANDEMPOWER WOMEN
We continue laying the foundation for continued progress.
In 2018, as the result of feedback and lessons learned, we
committed to work toward 100% child labor monitoring andremediation systems in at-risk areas we source from, andearlier this year we outlined our strategic approach in ourProtect Children Action Plan to help protect children in cocoa
farming communities.
We know there’s more to do, and we are committed topromoting change at scale. Joining together with others whoshare and support our vision and challenging ourselves andothers to look for new models and opportunities – we willlead the way in working toward a better cocoa supply chain.

“We’ve been at the forefront of efforts totransform the cocoa supply chain and were
the first major manufacturer to support the
Living Income Differential to boost the pricefarmers receive for their crop in Côte d’Ivoire
and Ghana. While some in the industry areaccelerating progress toward a modern,sustainable industry, others are not doing
enough and must go further and faster. In
addition, because voluntary measures may notalways be sufficient to advance progress, Mars
Wrigley welcomes government engagement
and constructive legislation that can be acatalyst for change.”BARRY PARKIN, CHIEF SUSTAINABILITY
OFFICER, MARS, INCORPORATED

Our journey so far
We’ve been making chocolate for over 100 years
and cocoa is key to our business.

2010
1982
Opened Mars

Center for Cocoa
Science in Brazil• L aunched Vision4Change
program in Côte d’Ivoire toprovide training and inputs•S hared efforts to sequence
cocoa genome to help breed
stronger varieties•S igned Memorandum ofUnderstanding with Minister ofAgriculture of Côte d’Ivoire

2012-17• Began training Cocoa Doctors
in Indonesia to advise andcoach fellow farmers• Tarengge cocoa researchstation opened in Sulawesi• Pangkep cocoa researchstation opened in Sulawesi

2018• Launched Cocoa for
Generations strategy• Committed to the Cocoa
and Forests Initiative (CFI)• Launched Farmer Income Lab

2019• Began leadership/advocacy
for the Côte d’Ivoire and Ghana
Living Income Differential• Signed a European Union
Due Diligence Call to Action
position paper

COCOA FOR GENERATIONS 2020 REPORT | 6

A bolder move

DRIVING TOWARD REAL CHANGE FOR THE BETTER
We are taking a strategic best practice approach to drive
toward the creation of a more modern, inclusive, andsustainable cocoa supply chain that is mutual for everyone
involved. Our approach places the interests of the farmer

Our Cocoa for
Generations strategy

at its center and prioritizes protecting children, preserving
forests, and improving farmer incomes with targetedinterventions. We have set bold 2025 and longer-term goals
to spur us on as we continue our journey.

GOALS AND INTERVENTIONSRESPONSIBLE

SUSTAINABLE

COCOA$1 billion

COCOA

TODAY

TOMORROW

Since 2018 we have been committed
to investing US$1 billion over ten years
to help transform the cocoa supply
chain for the better.

ProtectchildrenPreserve
forests

Improve
farmerincomeEnsure 100% of our cocoa is responsibly
sourced and traceable by 2025

Improveproductivity

Diversify
incomeEmpower
women andcommunities

Deploy initiatives to accelerate themodernization of the cocoa sector

COCOA FOR GENERATIONS 2020 REPORT | 7

Leading through our
Responsible Cocoa program

Protectchildren
GOALS
Through our suppliers,
implement robust Child Labor
Monitoring and Remediation
Systems (CLMRS) for all
households at risk of childlabor.

Expand CARE’s Village
Savings and Loans Association(VSLA) to help economicallyand socially empower women
through financial literacy,
household savings andloans, and women’s income
generating activities.

Preserve
forests

Improve
farmer income

GOAL

GOAL

Ensure all the cocoa we source will be
traceable and deforestation-free.

Increase income for cocoa-farming families.

2019 PERFORMANCE

2019 PERFORMANCE

33%
of cocoa we source wastraceable to a farm boundary32019 PERFORMANCE

Through our Responsible Cocoa program, we aim to deliver real, lasting positivechange across our cocoa supply chain. To this end, we focus on three core areasthat put cocoa farmers, cocoa communities, and the environment at the centerof our attention and we are acting to help protect children, preserve forests, andimprove farmer income.

2025 target:
100% cocoa traceability
to farm boundary3

34,000An estimated 34,000
households monitored

2025 target:
180,000 households monitored

12,134
CARE VSLA members,
across 470 groups

2025 target: 62,000
members in CARE VSLAs

FIND OUT MORE ABOUT OUR FOCUS
ON PROTECTING CHILDREN ON PAGE 9.

3
4

Data calculated on crop year for West Africa / calendar year for South-East Asia and Latin America
This data point is for 2019 only

~10%

of farmers in our Responsible
Cocoa program able to receive
payments digitally42025 target: improved financialtransparency across cocoa
supply chain

KEY ACHIEVEMENTKEY ACHIEVEMENT

Building on our commitment to cocoa supply chaintransparency with tier 1 (direct suppliers) disclosure lastyear, and tier 2 (farmer groups) disclosure this year.

Mars was the first major manufacturer to publicly support
the Living Income Differential to boost price farmers
receive for their crop in Côte d’Ivoire and Ghana, and indoing so bring our direct suppliers with us.

FIND OUT MORE ABOUT OUR FOCUS
ON PRESERVING FORESTS ON PAGE 10.

FIND OUT MORE ABOUT OUR FOCUS ON
IMPROVING FARMER INCOME ON PAGE 11.

COCOA FOR GENERATIONS 2020 REPORT | 8

Protect children
OUR POSITION
We condemn the use of child and forced labor and arecommitted to working to stop it in the cocoa supply
chain. Through our suppliers, child labor monitoring andremediation systems are being set up, and we are taking
action to help address the root causes in order to achieve
real sustainable improvements. In this work, we aim to put
cocoa farmers and communities at the center of our efforts.
OUR PROGRESS
Expansion of Child Labor Monitoring and Remediation
Systems (CLMRS)
We continue to expand the implementation of CLMRS acrossthe cocoa supply chain. In 2019, we increased households
monitored under CLMRS by 79% year on year, reaching an
estimated 34,000 households.
Working to address root causes
Community-based investments are needed to help tackle
the root causes of child labor, such as investments inwomen’s social and economic empowerment, increasing
access to quality education, and increasing income.

Investing in children’s futures
We continue to work with the Jacobs Foundation tounderstand and leverage the positive impacts and powerfullinks between robust monitoring systems, women’s
empowerment, and education interventions.
“We are delighted that Mars has committed to a US$3 million
five-year investment alongside the Jacobs Foundation in
two ground-breaking public-private funding facilities tohelp transform education in cocoa growing regions in Côte
d’Ivoire: the Child Learning and Education Facility (CLEF),
focusing on access to quality primary education for fivemillion children; and the Early Learning and Nutrition Facility(ELAN), designed to reach 1.3 million children below the ageof five and their caregivers with childhood development
interventions.” Fabio Segura, Co-CEO, Jacobs Foundation

Village Savings and Loans Associations (VSLAs):
women’s social and economic empowerment
Together, CARE and Mars have developed an enhanced

BRIGITTE’S STORYVSLA model to help empower women and protect children,
providing essential building blocks beyond just standard
savings and loans.
NEXT STEPS
Looking ahead, we plan to share research by the KIT Royal
Tropical Institute on the barriers to empowerment thatwomen face in cocoa growing communities. The researchaims to generate actionable insights for potential futureintervention for more gender equality in the cocoa sector.
We also plan to roll out the extension of our collaboration
with CARE. Our US$10 million investment will expand
the VSLA program with a target of reaching an estimatedadditional 50,000 members in cocoa communities in Côte
d’Ivoire and Ghana by 2025.
“Monitoring and identifying child labor is a difficult andintensive process, demanding the collaboration of many
actors (farmers, communities, coops, suppliers, NGOs,
and government). But it allows us to target assistanceand remediation efforts to children most at-risk, it
generates invaluable data which helps us all to learn
and track progress, and it allows companies to conduct
their due diligence transparently. All this benefits cocoa
farmers, their communities, the producing countries,
and the broader cocoa industry and consumers as wedrive progress on this critical sustainability challenge.”

In Kossoyo village, Côte d’Ivoire, we have helped set
up three Village Savings and Loans (VSLA) groups. Eachdirectly supports cocoa farmers to prioritize and invest
in their children’s development, providing training on
key issues like nutrition and successful parenting. “Thetrainings have improved communication between me andmy children,” says group member Brigitte. “I am trying tounderstand their needs and I pay more attention to them.’’
Brigitte also advises her fellow community members on,
for example, the importance of schooling.

OUR 2019 PERFORMANCE
CLMRS reach

NICK WEATHERILL, EXECUTIVE DIRECTOR,
INTERNATIONAL COCOA INITIATIVE

34,00046%

LAUNCHING OUR ACTION PLAN

Farmers trained

In February 2020, we published our ProtectingChildren Action Plan (PCAP). It focuses on four mainlevers that are designed to be mutually reinforcing:
putting in place robust child labor monitoring andremediation systems (CLMRS); supporting women’ssocial and economic empowerment; increasing accessto quality education and development opportunities
for children; and increasing income.

134,003

estimated households reached in 2019of households have a farming family profile,which helps us understand potential at-riskfamilies (our goal is 100%)

farmers and 1,511 farmer organizations’ staff
received training on human rights, including
responsible labor practices, local labor policies,
and practices considered child labor

VSLAs

470

CARE VSLA groups formed through 2019 with 12,134
members (80% of which are women) and morethan US$1.7 million collectively saved by members

COCOA FOR GENERATIONS 2020 REPORT | 9

Preserve forests
OUR POSITION
Forests provide critical habitat for plant and animal species,
regulate local rainfall patterns and provide livelihoods
for people around the world, including cocoa farmers,
their families and communities. We are taking action to
help preserve the world’s forests, through monitoring
preservation areas and working toward a deforestation-freecocoa supply chain. Together with governments and onthe-ground implementation partners, we can help farmers
grow more cocoa on existing farmland, without encroaching
on forests. Our aim is to achieve a 100% deforestation-freecocoa supply chain by 2025. This is in line with our Marswide ambition to hold flat our land use and reduce GHG
emissions from our value chain by 27% by 2025, from 2015
levels.

PLANTING TREES

Cocoa & Forests Initiative (CFI)
We are a member of the World Cocoa Foundation’s CFI.
As a signatory to the CFI commitments to halt deforestationand forest degradation in the global cocoa supply chain,
we continue to implement our action plans for Côte d’Ivoire
and Ghana.
NEXT STEPS
We will work toward implementing our updated CFI
action plans for Côte d’Ivoire and Ghana and undertaking
deforestation risk assessments in five more countries as partof our goal to work with our suppliers to do this in all our
direct sourcing areas. These assessments will help drive ouractions going forward.

OUR PROGRESS
Increased traceability
We continue to focus on our 2018 commitment of the cocoa
we source being traceable from the farm to the first point ofpurchase by 2025, working through our suppliers. In addition
to our disclosure of our tier 1 (direct supplier) cocoa suppliersin March of 2019, we now have disclosed our tier 2 (farmergroup) suppliers. We require our suppliers to use polygon
mapping to trace farm boundaries. This is more accurate
than the traditional single global positioning system (GPS)location point and in turn helps protect forests and refine
yield estimates.

Together with agroforestry experts PUR Projet, Mars is
implementing agroforestry programs in cocoa farming
communities in Côte d’Ivoire. We are helping cocoa
farmers plant trees, which can provide food such as fruitor oil, medicine, income from timber, and shade for cocoa
plants. This not only can restore the quality and fertilityof soil and in turn stabilize crop yield, it also can help totackle climate change and enhance biodiversity. “I haveplanted 150 trees this year with PUR Projet,” says cocoa
farmer Zouzoua Kipré Dinard. “It is really helpful, because
a lot of tree species have disappeared and our plantations
began to die. Today we want our village to serve as
an example, especially for young generations, and toencourage everyone to help restoring forests.”“I am really happy that this project came to my village. Itis very important for us, and it will help our plantations
to survive and be productive. Without trees and theshade they bring, plantations are not doing well, andthat is why we need agroforestry.”
KORE DANIEL,COCOA FARMEROUR 2019 PERFORMANCE
Farm boundary mapping and bean traceability5

95%
51%
33%
153,411

Country assessments
We carry out country-level assessments to inform action to
help protect forests. In 2020, we completed assessmentsin three countries: Brazil, Cameroon, and Indonesia. Moreassessments, including Ecuador and Peru, will follow. We
will use the results to develop country-specific actionplans that describe how we plan to work with suppliers,
implementation partners, and governments to source
deforestation-free cocoa.

of our cocoa traced to a countryof origin via our direct suppliers
traced to a farmer group
traced to a farm boundary
farm boundaries mapped

Non-cocoa trees

569,744
5
6

In 2019, 569,744 non-cocoa trees
were distributed globally to
36,575 farmers6

Data calculated on crop year for West Africa / calendar year for South-East Asia and Latin America
This data point is for 2019 only

COCOA FOR GENERATIONS 2020 REPORT | 10

Improve farmer income
OUR POSITION
Mars believes boosting the income of cocoa farmers while
ensuring cocoa is grown responsibly is key to a thriving
cocoa sector, and we will only achieve our aim of ensuring
100% of our cocoa is responsibly sourced and traceable by2025 if the most vulnerable people in our supply chain are
rewarded fairly. Too many cocoa farmers around the world
earn too little from their farms. We want farmers to beable to improve their income sustainably so that they, theirfamilies, and communities can gain more from the vital crop
they grow. Premiums are key, as is the need for a transparent
system that ensures a higher amount of the money paid
through premiums reaches farmers.
OUR PROGRESS
Premiums
Under our Responsible Cocoa specification, premium
payments are to be separated from the overall price farmers
are paid for their cocoa. By separating premiums from otherpayments and giving advanced communication of premium
amounts, we expect that farmers will benefit from knowing
when and how much premium will be paid to them and, inturn, help them improve farm and financial planning.

INNOVATING FOR FARMERS

farm mapping. At the farm level we assess how well the
farmer is adopting good agricultural practices and whether
yields are improving on farms. We work with suppliers todevelop continuous improvement plans to deliver on our
Responsible Cocoa goals by 2025. We are encouraged by
The Rainforest Alliance efforts in its Rainforest Alliance 2020
Certification Program and their ongoing work to strengthen
their standard, and assurance approach. We continue tosupport efforts by certifying bodies, including Fairtrade andnational standard setting bodies, to require child and forcedlabor monitoring and remediation systems in at risk areas,
farm boundary traceability, and premium transparency.

Together with technology provider Koltiva in Indonesia,
we are providing cocoa farmers and collectors withaccess to an innovative digital solution to help increasetransparency and efficiency and build trust. Instead ofthe manual system which has limits on data verification,
handheld digital tools give real-time support to farmers,
collectors, and field agents who support them. Farmer
plans, progress, and cocoa prices can be shared, andnext in the development pipeline is the ability to makedigital payments directly to farmers.
“With this new system I can see my transaction
price on my phone, and this makes my level oftrust to collectors and Mars increase.”
COCOA FARMERNEXT STEPSWe plan to continue our focus on improving farmer income
in cocoa sourcing countries around the world. As part of our
supplier development we will monitor the adoption of Good
Agricultural Practices (GAPs) at the farm level. In Indonesia,
we aim to work to incentivize suppliers and farmers based onlevels of GAP adoption – encouraging and rewarding farmers
for becoming more sustainable.

Transparency
We are focusing on greater transparency and on enabling
farmers to get cash payments so they have the freedom tochoose that as an option when they decide how they would
like to be paid.

OUR 2019 PERFORMANCE 7
Income transparency~10%

Verification
We are improving verification with certifiers, suppliers,
farmer groups, and at farm level in Ghana, Côte d’Ivoire, andIndonesia through our supplier development teams. They
facilitate close working relationships with supplier teams incountries where cocoa is sourced, to help develop capacity
and capabilities to meet the requirements of our Responsible
Cocoa program. They work to understand and verify how
the premiums we pay through our Responsible Cocoa
program are being shared with farmers and used for cocoa
and non-cocoa tree distribution, cocoa seedling nurseries,
farmer group training to improve business and financial
skills, child labor monitoring and remediation, and polygon

of farmers in our Responsible
Cocoa program are able toreceive payments digitally

Good Agricultural Practices training

7

155,255

farmers received Good
Agricultural Practices training
in 2019

85,505farmers received one-to-one
coaching on Good Agricultural
Practices in 2019

2,491,010

cocoa tree seedlings distributed
in 2019

ENCOURAGING GOOD AGRICULTURAL PRACTICESOne key way farmers can improve their incomes longterm is through Good Agricultural Practices (GAPs).
We provide training and individual coaching for cocoa
farmers on GAPs, such as advising on how to rehabilitate
cocoa trees to increase production. We also may provide
cocoa seedlings for the farmers to plant.

These data points are for 2019 only

COCOA FOR GENERATIONS 2020 REPORT | 11

The journey to
Sustainable Cocoa
Our ambition is to fundamentally change
the cocoa supply chain for the long term,
and to deploy initiatives to accelerate themodernization of the cocoa sector. We plan
to do this by innovating with farmer groups,
farming families, and our implementation
partners to scale what is working. We aim tobuild longer and more mutual relationships,
test bundles of interventions in certain
groups of farmers to identify what works welland how best to combine our efforts withothers to maximize our positive impact sothat a living income can be achieved.

“In last year’s Cocoa for Generations report, weshared three focus areas and aspirational goals wefelt were important to achieve sustainable cocoa
tomorrow. Since then, we have worked to develop
pilots through deeper engagement with farming
families, implementation partners, our suppliers,and on-the-ground technical experts. We also
reflected on research from the Farmer Income Lab,
the KIT Royal Tropical Institute, and other expert
advisors. We have gained vital insights that will
help guide our journey to achieving sustainablecocoa and shed light on areas where we need toadapt our approach. As a result, we are reviewing
our sustainable cocoa tomorrow goals and plan toshare more information on our innovation pilots
with impact-driven goals for each pilot.”
KIM FRANKOVICH,
VICE PRESIDENT, GLOBAL SUSTAINABILITY, COCOA

We are building on the more than 350 cocoa nurseries,
1,520 demonstration plots, and distribution networks thatdelivered more than 2.4 million cocoa seedlings to farmers
in 2019. We hope to demonstrate at scale that sustainablecocoa family farming is possible in multiple origins in our
supply chain so that we can catalyze others to help ustransform the sector.
Success in achieving our vision for a sustainable future forcocoa can be demonstrated by cocoa farming families thathave the ability to earn a living income, women and children
who are thriving, and farms that are productive, diversified,profitable, and not contributing to deforestation.

COCOA FOR GENERATIONS 2020 REPORT | 12

Science andinnovation for the
future of cocoa

PIONEERING MODERN COCOA FARMING
Located close to Guayaquil (Ecuador), La Chola is part ofour network of cocoa research farms around the world
and is one of the world’s leading research farms for cocoa
yields and farm management practices. It also serves as
a commercial farm. Since 2019, La Chola has been driving
the development of optimum cocoa crop management
through experimental trials developed in collaboration
with experts in agronomy, breeding, and pest
management. These trials are then applied commerciallyat scale to help create sustainable solutions that can beshared with other cocoa farmers – maximizing the impact
of better crop management resulting in better yields andprofits for farmers and less environmental impact.

CACAO PLANT SCIENCE
Plant science is essential to sustainable cocoa farming
It can help us make valuable lasting improvements, forexample, by helping to increase crop yields and enablecocoa farmers to establish more resilient crops that
can increase their overall income and be better for theenvironment. Plant science can play a big part in tacklingdisease and pest control and helping to build climate
resilience. Key diseases and pests include black pod rot,
witches’ broom disease, frosty pod rot, swollen shootdisease, and cocoa pod borer.

“At La Chola, we’re helping to transform cocoa
agriculture improving yields and profits for farmers
with a successful green field approach. Now we’re on
the path of partnering with cocoa communities acrossthe world to share what we’ve learned.”

Mars Wrigley is a key investor in plant science research,development, and innovation. We aim to help boost farmer
productivity by encouraging greater funding of cacao
research and publishing the findings of our own research.
We have teamed up with the University of California Davisand the United States Department of Agricultural ResearchService to develop a database of genetic information for the
major fungal pathogens of cacao and together have createda repository providing public access to genome references,
resequencing, and gene expression data.

ANTONIO ROCA,
GENERAL MANAGER, MARS LA CHOLA

NEXT STEPS
We continue to deploy initiatives to accelerate themodernization of the cocoa sector, including thedevelopment of cocoa farming pilots in different
origins to test new best practices for creating
sustainable cocoa farms. These aim to build on
the implementation of our Responsible Cocoa
program with all cocoa farmers in our supply chain
by 2025.

COCOA FOR GENERATIONS 2020 REPORT | 13

We will continue to work
together today to createa more modern, inclusive,and sustainable world of
cocoa tomorrow
CREATING BETTER MOMENTS
We believe we have a great Purpose to live by every day:
Better Moments Make the World Smile. That means acting
swiftly and boldly when we see challenges that stand in theway of living this Purpose. It means seeking out solutions
that work and scaling them up. We’re looking to create thosebetter moments throughout the world of cocoa – fromthe moment a family celebrates with one of our chocolate
brands to the moment a farmer enjoys a boost to theirincome, from the moment a tropical tree is saved from being
cut down to the moment a child attends their first day atschool. It’s by making these moments matter that we deliveron our Purpose and our Cocoa for Generations strategy.
MAKING LASTING CHANGES FOR THE BETTER
Looking ahead, 2020 may well be seen as a year of
reinvention for everyone everywhere, a year of challenging
ourselves to work more closely than ever before, so thattransformations in the cocoa supply chain result in tangible
improvements for cocoa farming families. That is ourongoing focus with Cocoa for Generations.
We look forward to continuing to forge ahead with theaim of putting farmers first and ensuring they can enjoy
a decent standard of living, prioritizing womenand protecting children, preserving forests,
and working closely with governments andother collaborators on systemic improvements,
including enhanced regulation of the cocoa
supply chain where appropriate. We willcontinue to take the lead and invite everyone tojoin us to create a better, more sustainable worldof cocoa for everyone.
COCOA FOR GENERATIONS 2020 REPORT | 14

THANK YOU
We want to thank all our suppliers,
experts, and implementation partners
for working with us and making
a critical difference through theirtechnical expertise and on-theground support. They are vital in
helping us understand root causes andmake positive changes based on thelearnings. Without them we would not
be able to carry out essential work to
support farmers and their communities
and help create the modern,sustainable world of cocoa we all want
to see and enjoy.

We work closely with a range of experts andimplementation partners to help drive change forthe better across the cocoa supply chain.

Appendix
Cocoa for Generations
Tier 2 Supplier Disclosure & Map
Sustainable in a Generation
Please visit our website for more information.