COCOA HORIZONSPROGRAMCOCOA HORIZONS Program description – global - V2.0

DISCLAIMER
This program description is a summary of the detailed standard methodology. The content displayed is not assured by any third party. For the use of specific claims related
to Cocoa Horizons program please refer to the Full Year report verified by PWC and published on the Cocoa Horizons website.
More specifically, note that certain statements in this summary regarding the activities of Cocoa Horizons Foundation are of a forward‐looking nature showing thetargeted, expected and/ or projected possible outcome, and are therefore based on management’s current assumptions about future developments. Such forward‐looking
statements can be identified by words such as “believe,” “estimate,” “intend,” “may”, “will,” “expect,” and “project” and similar expressions as they relate to the program.
Forward‐looking statements involve certain risks and uncertainties because they relate to future and external factors.
Actual results may vary materially from those targeted, expected or projected due to several factors, such as but not limited to general economic conditions, government
decisions, foreign exchange fluctuations, weather, as well as changes in tax regimes and regulatory developments.
Cocoa Horizons does not undertake to publish any update or revision of any forward‐looking statements. In case of use of such statements for claims, the user does so attheir own risk.

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COCOA HORIZONS Program description – global - V2.0

COCOA HORIZONS PROGRAM

1. Introduction
1.1. The Cocoa Horizons Foundation
The Cocoa Horizons Foundation was formally established on February 25, 2015 in Zurich, Switzerland and is supervised by the Swiss Federal Foundation
Supervisory Authority. It is a non‐profit, independent and third‐party verified organization. The Foundation’s Board of Directors includes five Directors (onefrom Barry Callebaut and four independent). The board selects a General Manager who is in charge of the day‐to‐day business for the Foundation andpartnerships with contributors, donors and implementing partners. The Foundation is audited annually (by a third party recognized audit firm) to demonstratecompliance with Swiss federal regulations.
The purpose of the Foundation is improve the livelihoods of cocoa farmers and their communities through the promotion of sustainable, entrepreneurial
farming, improved productivity and community development, which protect nature and children. Therefore, the Foundation will support a broad range ofactivities contributing to the achievement of this objective, predominantly focused on improving the agricultural and entrepreneurial capacity of cocoa
farmers as well as contributing to the development of cocoa communities.

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The Cocoa Horizons methodology establishes the rules of the Cocoa Horizons Program, and provides an implementation framework for target setting anddefines the KPIs.
The governance approach stipulates the minimum requirements to support consistent and effective delivery of the Cocoa Horizons program activities, andcan be subject to independent verification activities. The governance approach will be updated on a regular basis as the Cocoa Horizons program and its
related verification activities evolve in order to achieve maximum impact. These updates will be tracked and documented using the version control log
presented in Annex 1 to each methodology document.
This methodology has been framed by the following processes:
A)
B)
C)
D)
E)

To continue driving impact while integrating a higher degree of compliance
To expand work related to environment and deforestation.
To pre‐empt future compliance with the ISO/CEN 34101 series
To continue on the journey towards transparency and governance, paving the way for an ISEAL compliance.
To increase value for customer, the public and the cocoa farmers

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2. Vision of the Cocoa Horizons Program
To drive cocoa farmer prosperity by creating self‐driving and self‐sustaining farming communities that protect nature and children‐

Farmers work on a professional and diverse farm, which is self‐driven and self‐sustaining.

‐

Farmers’ land is free from deforestation and on‐farm activities include environmentally‐friendly practices that mitigate climate change such as crop
diversification and carbon sequestration, and other environmental friendly practices.

‐

Farmer groups are enabled to support and engage farmers on this journey, by initiating Farm Business Plans (FBPs) supported by Farm Finance andFarm Services.

‐

Communities take responsibility for and have accountability on child and human rights. There is a governance structure in place that enables themto address needs and lobby government support, to provide solutions to the root causes of child labor and human rights abuses.

3. The Theory of Change
Despite industry’s efforts, there are significant structural issues in the chocolate supply chain. Low productivity on cocoa farms as a result of poor agricultural
practices, nutrient depleted soil, and aging cocoa trees are keeping many farmers in a state of poverty. Poverty prevents cocoa farmers from investing in theirfarms and new practices to increase productivity that would boost their incomes. In addition, poverty keeps farmers from hiring professional workers, forcing
them to rely on their family members, including their children, to work. 60% of cocoa farmers in West Africa are living in extreme poverty. As a direct resultof cocoa farmer poverty, it is estimated that more than 2 million children are working on cocoa farms in Côte d'Ivoire and Ghana alone ‐ which cannot be
accepted. Additionally deforestation, is a major contributor to climate change while climate change also threatens the ecosystems that cocoa farmers dependon.
Our theory of change aims to create self‐sustaining farming communities with prospering farmers, no deforestation and zero child labor. We aim to achieve
this by focusing on key activities such as improving productivity of the farmers through the implementation of Farmer Business Plans, diversification of income,supporting women’s empowerment, providing access to Farm Services, as well as increasing access to Farm Finance. If farmers are prospering, it is more likelythat there will be zero child labor, more engagement in the community, as well as more aware and able to protect the environment. Our target to have zero
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child labor in the supply chain will be supported by increasing awareness on child labor in the communities, working together with schools, enabling childcentered community structures and supporting community action plans to tackle and prevent child labor. We should achieved no deforestation and be carbon
positive by stepping up our traceability efforts to farm boundaries, supporting agroforestry, increasing community ownership of the deforestation challenge
and decreasing carbon emissions while increasing carbon sequestration.

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The cornerstone of this approach is the development of Farmer Business plans in order to help farmers professionalize their farms in the most efficient andproductive way possible whilst incorporating the actions necessary to drive farm diversification, good carbon practices, and women’s income generation.
On the community side, activities focus on enabling the accountability of community members to drive initiatives to protect children. All of theinterventions must be supported by an enabling environment to which implementers, such as Barry Callebaut together with engagement of governments,
NGOs, customers, suppliers, partners and even media will give access to markets, infrastructure, finance, land tenure and quality education.

Impact versus compliance
The Cocoa Horizons program is first and foremost an impact driven program, which goes beyond regular compliance based programs (e.g. certification
schemes).
The program aims to implement impactful activities at scale that drives meaningful change in cocoa farming communities, which enable professional farmers
to lift themselves out of poverty, that eradicates child labor, and that results in a deforestation free supply chain. Therefore, the Cocoa Horizons methodology
sets clear targets to which progress is measured and reported, as shown in the table below.
The Foundation recognizes the importance of compliance, but moving beyond a pure compliance based system will proof itself to be more impactful andcost‐efficient in the long run.

Targets
Lift cocoa farmers out of poverty

Eradicate child labor from the
supply chain

Outcomes:
Increased productivity and income
from cocoa
Increased diversification of income
Increased professionalism (“farming
as a business”)
Increased women’s empowerment
and income generation
Increased community and third
party supplier accountability on
child protection
Increased alternative sources oflaborPage 7

COCOA HORIZONS Program description – global - V2.0

Become carbon and forest positive

Increased access to quality
education
Increased carbon sequestration
Decreased deforestation
Decreased carbon emissions

Out of the total program a number of criteria are non‐negotiable such as violation of human rights, laws or is involved in destruction ofenvironment.
The program ensure compliance of its own operations (ie CoH implementers) and the recommended service providers. The program will monitor farm (andfarm groups) compliance as part of the impact monitoring. The program promotes the take‐over of sustainable activities, normally performed by CoH
implementer, by farming communities. CoH implementers will supervise the correct execution of activities and support them to improve their compliance.
The intention of the Foundation is to make resource‐allocation decisions to achieve maximum impact rather than maximum compliance monitoring.
Typical areas where we expect high levels of influence on complying with best practices include:







National sustainability operations
Direct sourcing companies e.g. Nyonkopa
Farm services or accountable communities follow rules of COH
Third party program implementers
Farmer groups such as cooperatives or companies (GEC, traitant)Large farms

For smallholder farmers and small cooperatives, or cooperatives in remote locations, the level of influence to control compliance effectively is rather
limited. However, when a farmer group or individual farmers significantly violates human rights, laws or is involved in destruction of environment, thefarmer group will be warned and requested to implement corrective actions. If the farmer group or farmer then fail to improve after having been warned,
it should be excluded from the program. For non‐conformities and shortfalls on target achievements, farmer groups are responsible for addressing these.

4. Program description
Program implementer and applicability
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The program is governed by the Cocoa Horizons Foundation, who contracts service providers such as Barry Callebaut and other third parties, international
and local NGOs for program implementation. Each service provider works towards its scope which can be global or local.
Program basics
The key requirements of Cocoa Horizons are described in the methodology that describe expected requirements at farm and group level in the areas of:







Good Agricultural Practices
Social Aspects
Environment
Training
Management and performance
Transparency of premium flows

Alongside the program requirements, the methodology also consists of a detailed implementation guidance. The requirements and the implementation
guidance are based on the West African context, but are adapted to specific local needs, upon expansion of the program to other geographies.
Service providers are responsible to integrate the methodology in their operational processes and documentation (e.g. training curricula, Standard
Operating Procedures). The documentation can be adapted to fit a more local context (e.g. local languages, local laws provided they are more stringent
than international laws and regulations).
The Cocoa Horizons Program requirements have associated KPIs that will be reported in the annual report. The activities and data underlying the KPIs aremonitored by operational processes in each origin through transactional data or specific reporting and are also subject to internal verification. They are also
verified and assured by a third party once a year. The assurance of the Cocoa Horizons program reporting is described in more detail in the Assurance
Process of the third party verifier. This assurance is based on auditing of the underlying processes, activities and reporting for each reported KPI.
A time line indicates when a requirement becomes mandatory from when a farmer begins with Cocoa Horizons.
Key requirement KPIs can have a character of compliance (like 100% of the cocoa is sourced traceable from year 1 onwards) or a character of progress (e.g.
10% of famers must have a FBP 30 months after starting the scheme in an origin). While most key requirements start in year 1, some reporting only starts inyear 2 and following. The other requirements are embedded in processes such as curricula, policies, contracts and Standard Operating Procedures. They do
not have specific KPIs and are not reported on.

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The table below provides an overview of the number of requirements for farmers by year, corresponding to the elements of the Cocoa Horizons
Methodology.
From year 1
onwards

From year 2
onwards

From year 5
onwards

Total

Key requirements with KPIs that arereported and assured by third party

67

24

Requirements that are embedded inprocesses

120

31

3

154

Total

187*

55

3

245 (100%)91

Program Governance
The Cocoa Horizons Foundation is supervised by the Swiss Federal Foundation Supervisory Authority. The Foundation’s Board of Directors meets at least
twice a year to discuss strategy, direction of the Foundation, financials, budget, and impact achieved, among other topics. The board selects a General
Manager who is in charge of the day‐to‐day business for the Foundation and partnerships with contributors, donors and implementing partners. The
Foundation is audited annually to demonstrate compliance with Swiss federal regulations.
Below an overview of the governance of the program.

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The governance approach stipulates the minimum requirements to support a consistent and effective delivery of the Cocoa Horizons program activities, andcan be subject to independent verification activities. The governance approach will be updated on a regular basis as the Cocoa Horizons program and its
related verification activities evolve. The requirements of the system are reviewed and updated every two years, this is done at a global level with internal
consultation at different levels within the Barry Callebaut Group, as well as with major customers.
Activities are defined according to the theory of change while implementation of the activities is maintaining a certain compliance level, below is a brief
explanation of the internal control and the treatment of the volume.
Internal control
Annual third party verification of Cocoa Horizons Foundation’s activities is supported by continuous work of the Global Sustainability Reporting Team andits Monitoring & Evaluation units (M&E) in origins. The M&E units are functional in established COH origins.
Internal control and comparison of achievements versus targets are based on 4 main sources of information to measure performance:

100% of farmers with census and 10% with a detailed census
Sample of 200 farmers for GAP adoption monitoring
1/3 of farmer groups are subjected to internal audit
Traceability data for 100% of cocoa volumes.

The entire program is subjected to the third party verification process.
Third party assurance covers performance statements (KPIs and specific claims) that Cocoa Horizons makes with regard to the implementation with farmers(included in the COH KPI framework). The assurer will call out specific findings in their assurance report.
Regarding volumes:
 When a farmer group or individual farmers significantly violates human rights, laws or is involved in destruction of environment, the farmer groupshall be warned and requested to implement corrective actions. If the farmer group or farmer fail to improve after having been warned, it should
be excluded from the program.
For non‐conformities and shortfalls on target achievements, farmer groups are responsible for addressing those.

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Non conformities is when there is a need for corrective action for not meeting some of the key requirements or expected targets. When a farmergroup repeatedly fails to show improvement and engagement to meet such criteria, the farmer group should be excluded from the Program.
Non‐ negotiable:






After identification and remediation cycle, there is still proof of use of hazardous child labor (recurring instances of WFCL)
After identification and remediation cycle, there is still proof of use of forced labor
After mapping of the farm and found to be in national park and some period to relocate, farmer continues farming in protected areas
After environmental awareness, there is intentional destruction or damage of environment (e.g. destruction of High Carbon Stock, High Conservation
Value, use of forbidden chemicals, waste dump into water)
Fraudulently claiming cocoa to originate from the farmer’s farm (traceability)

5. Thematic approaches and concepts
Farmer groups
Farmer groups, for example cooperatives, are key actors to deliver the Cocoa Horizons methodology. They serve as aggregators for farmers, knowledge,
information and cocoa. In this function, they commit to and are responsible for implementing good practices on traceability, employment, farmer training
and more general management of the Internal Management System for Cocoa Horizons. This comprises also the coordination of sprayers as specialists who
apply agrochemicals for cocoa farmers, the handling and storage of crop protection products and fertilizers used for Productivity Packages (PP) and
Replanting Packages (RP), including good practices on OSH and environmental protection.
Farmer groups commit to Cocoa Horizons by agreeing to policies (supplier code, Cocoa Horizons charter, child labor charter and declaration of protected
forests), and are able to source cocoa following traceability requirements stated in the methodology. A contract is then signed on commercial terms,
including volume and premium. The farmer group registers farmers who sign a contract that defines their responsibilities in line with the Cocoa Horizons
standard. Farmers are informed during meetings on their responsibilities, and they receive a Farmers Passbook that explains in simple language andgraphically the requirements of the code.
Farmer groups who have committed to be part of the Cocoa Horizons Program are supported by capacity building and additional resources to support theirability to provide quality services to farmers, ensure traceability of the cocoa and respect social and environmental norms. Staff of farmer groups aretrained and they may get support to set‐up their business processes. Often, part of their staff’s payroll is covered via COH premiums.

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Farmer coaches
Farmer groups are usually the ones who propose farmer coaches. They select farmer coaches based on criteria provided in the methodology. Trainer
selection is validated at country level based on information submitted by the Farmer group, and / or interviews. Training of trainers is organized usually at a
central level for each origin and done by external experts or implementers such as Barry Callebaut staff. Farmer trainers are accredited through a test that isdevised to check the knowledge of Coaches. Coaches are subjected to a test the test results are evaluated against a target pass‐rate. Farmer Trainers who
pass the mark are accredited.
Based on national training plan, for new farmers (who were conventional before) the aim is that a farmer has free access to basic and advanced training
modules over 2 years. Given a certain attendance achievement, the farmer obtains a graduation in a similar process as described above.
A graduated farmer is expected to enroll for farm services based on his/her FBP. After in the program for more than 3 years, a farmer does no longer have
free, systematic access to training, except as new content or specific needs occur.
Training curricula and graduation cover the topics of GAP (Good Agricultural Practices), but also Environment, Health & Safety, Child Labor, Human rights,
amongst others and are elaborated to reflect the requirements of the methodology, adapted to local laws and best practices. The curricula are updated
regularly by the implementer.

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Prospering Farmers
The Cocoa Horizons journey of the farmer
In order for a farmer to embark on a journey to become a self‐driving, self‐sustaining farmer on the way out of poverty, all farmers have access to a 2‐3‐
year training course to increase the farmer’s knowledge on good practices in the areas of agriculture, environment and human rights. Training content isdetermined and aligned with the Cocoa Horizons standard and the local legislation. Considering that in some origins the farmers have received training forseveral years already, Cocoa Horizons implemented a Graduation test to prove the knowledge of the farmers and move away from traditional training into
personalized coaching, which starts with a Farmer Business Plan (FBP) to improve cocoa productivity, diversify incomes and adopt green energy over the
next years. The choices within the business plan and the timing of interventions to increase income are voluntary, and each farmer decides on the pathway
most suitable for his or her household.
The FBP is a key to unlock access to microcredits and to farm services. Once the farmer is accredited and has a FBP in hand, the farmer thus can accessservices that procure Productivity or Replanting Packages (PP and RP). The program also empowers women to support the income diversification.

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These technological packages are provided via the Farmer Group or external services providers. They comprise materials needed to increase productivity ofa farm or to replant a farm, as well as specialized labor (e.g. sprayer) and access to services that are needed to succeed with the package, such as coaching
and insurance. PPs and RPs are designed to match the requirements laid out in the Cocoa Horizons standard, to respect the local legislation, and to fit thefarmers’ needs and abilities.
A farmer who proven his/her theoretical knowlegde, then developed a Farm Business Plan and started adopting the elements in that FBP thanks toaccessing farm and finance services, is considered to be a farmer on the journey out of poverty, and with increasing compliance to high standards ofproduction, respect of environment and of human rights.

Forest and carbon positive
In order to achieve positive environmental impact from cocoa farming in Cocoa Horizons communities, the program aims to prevent further carbon
emissions from deforestation, sequester carbon through carbon‐positive practices on farm, and reduce off‐farm emissions in Cocoa Horizons households.
Sustainable, forest and carbon positive cocoa farming is intrinsically linked with prospering farmers. Farmers with a decent livelihood and income throughimproved cocoa production are far less likely to exploit new lands through deforestation, the primary driver of greenhouse gas emissions in the chocolate
industry. To ensure that farms and cocoa are deforestation‐free, Cocoa Horizons maps all the farmers and proves that they are not in protected areas. In
parallel an assessment of deforestation, based on satellite imagery of tree cover loss, is made in order to remediate or compensate for that carbon liability,
when deforestation happened prior to the registration in the program.
Environmental training (as noted above) facilitates better management of carbon on farm to prevent or avoid emissions, through: Retaining organic carbon in soils (through ground cover, mulching or retaining pruning in cocoa plots rather than removing or burning);
 Retaining remnant forest trees; and Optimizing fertilizer use to minimize Nitrous Oxide (N2O) emissions, a powerful greenhouse gas.

These aspects are undertaken through the delivery of the FBPs, which are ‘optimized for carbon’.
In addition, there is substantial scope for removing CO from the atmosphere and storing it in the landscape. Cocoa Horizons farmers facilitate this by:2 Increasing the density of cocoa trees (under planting/replanting); Increasing the number of non‐cocoa trees on farm. The trees are valuable to farmers for fruit, fuel wood, shade, timber, and/or medicinal/herbal

purposes. Trees may be planted in cocoa plots (as shade) or on‐farm but outside the cocoa plots, including as ‘living fences’, disease barrier
strips, on fallow/underutilized areas or nearby the household.
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Cocoa Horizons farmers can also reduce current CO emissions off‐farm through:2

 Efficient cook stoves in households, that burn half as much wood; Solar Home Systems, that reduce kerosene burning for lighting;

Combined, these interventions deliver a ‘carbon positive’ cocoa farm and beyond, such that with full implementation, Cocoa Horizons beans will be carbon
positive and deforestation free.

Child Labor
Enabling Communities
Some aspects of cocoa sustainability need to be addressed at the community rather than at the individual farmer level (relevant, according to national risk
assessment), most importantly social or human rights aspects, in particular through child centered community development. A community comprises cocoa
farmers and their families, but also other community members, such as other farmers, teachers, traders, but also community leaders such as chiefs, leadersof associations, school management committees, local development committees, and child protection committees . Community infrastructure includes
schools, health centers, water & energy, roads and other services.
Similar to individual farmers, cocoa farming communities where Cocoa Horizons farmers live, are enabled progressively to become more engaged in andaccountable for child rights, child labor, women’s empowerment and other human rights aspects. Community structures are identified or created, and thensupported through capacity building and processes that procure means, to raise the awareness of their community members on human rights issues,
deploy measures to make available alternative sources of labor to child labor, and support community institutions on collective values, e.g. savings andloans associations, women associations, school management committees etc.
The community structures are able to report on key human rights KPIs that are identified in the Cocoa Horizons methodology. Support and capacity building
is designed to match the requirements laid out in the Cocoa Horizons standard, and to respect the local legislation.
The basic steps of the child‐centered community development are:
 A risk assessment is done per farmer & community to prioritize geographies where we will engage and where not.
 Education‐based monitoring in these risky communitieso A census on children is done, identifying if children are enrolled at school or not.

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o Children identified as child labor and not attending school are aimed to be brought back to school [i.e. through birth certificates, bridging

classes, scholarships]
 Community Governance activities
o Community Action plans are elaborated (or adapted)
o Governance structures are established to own this CAP and handle pre‐identified CL cases.
o Pre‐identified children and their households are sensitized and remediation solutions applied.
o CAPs are implemented with a shared responsibility approacho Women IGA & school canteen support with vegetable farmingo Farmer groups / cooperative participate through this process.
o Alignment and ownership from government critical Social worker support
o At district level, a social worker coordinates activities [government/non‐government]o Serves as owner of data collection and reporting systemo Serves also as a solution provider to village committees

The above model is being piloted under COH and in parallel to the implementation of CLMRS (Child labor monitoring and remediation system) in
different communities.

6. Tools and systems
Farmer passbook
Each farmer receives a passbook at the moment when they join the program, which includes:
1.
2.
3.
4.
5.

Farmer ID
Sales logbook
Non‐sales record ( training, kits, credits)
Farmer contract including compliance information
General information about some of the required practices under the program

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The Farmer passbook should be kept by the Farmer and the Farmer Groups are final responsible for maintaining such register updated. Information in thispassbook will be added at least once per year to Katchilé, the database used to capture information about Cocoa Horizons farmers and programming, inorder to keep updated records in the system.

FBP (Farmer Business Plan)
A key enabler to lift farmers out of poverty is the Farm Business Plan (FBP). The FBP is also a center piece for implementing certain elements of thestandard. The objective of the FBP is to lift the farmer out of poverty by means of influencing cocoa production, diversifying income and agricultural
production, cost reduction (e.g. optimization of input and labor usage) and financial instruments. For farmers who already are out of poverty, the FBP
serves to further improve their livelihood. Subsequently, a FBP can be established for any registered farmer within 12 months after registration.
For each farmer a cocoa Farm Business Plan (FBP) is established as follows:
The recommendations that the FBP makes for the farmer respect the requirements in this standard.
Thus the recommendations of the FBP also should address:‐

Cocoa Farm rehabilitation‐

Cocoa Farm Maintenance:o GAPo Pruning

‐
‐

‐

‐
‐

Soil management:o Provisions for the replenishment and replacement of soil nutrients so that nutrient levels in the soil are adequate and balancedo Requirements related to soil management, including practices to avoid soil erosion by using soil conservation techniques and including
minimizing run‐off and siltation of watercourses
Integrated Pest & Disease Managements:
o Provisions for pest and disease control (doses, timing and application intervals), using an integrated pest and disease management approach.
o A pesticide reduction plano Requirements related to pesticide application (e.g. buffer zones)
Biodiversity:o Biodiversity conservation measures (e.g. compensation & buffer areas, wildlife corridors, planting of shade trees)
Waste managemento Formulate key elements (storage, disposal etc.)
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The FBP is the tool to identify the credit need, financial viability and the ability to pay back credit of the farmers. Also, the services that are required to
implement the FBP should be made available for farmers who have an FBP, e.g. making available Productivity Packages, savings & credit account if FBP
implementation requires PP on credit.

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Data collection system / Katchilé
The data collection system of the Cocoa Horizons program is Katchilé.
Katchilé is an innovative data collection system extensively used in origin countries to collect surveys at the farmer level and combines it with additional
external data sources. Primary use of the mobile‐based “K‐app” is to collect general information on farmer to have better understanding of our supply chain
and track progress on our interventions. Information collected in our baseline are covering key socio economic topics like farming activities, household
details, challenges faced and expectation from partnership with Barry Callebaut. A cloud reporting platform allows us to track live data coming fromthousands users and produce both monitoring and evaluation reports.

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Mapping
Origin country field teams are also performing systematic mapping of cocoa farms identified in the supply chain, there are two main purposes for this:To ensure there is no encroachment in protected areas allowing to meet commitments under Cocoa & Forest Initiative
Allowing the program to adapt intervention to farmers’ needs

In order to generate this extensive mapping exercise the field team revisit each individual farmers and record their farm shapes.
By linking the geo reference data and the farmers census information we are able to generate large variety of thematic maps allowing us to tailor ourintervention on the ground.

7. Credit & Claims Management
Cocoa Horizons Credit & Premiums
Cocoa Horizons Credits
Cocoa Horizons volumes follow a global mass balance principle. This means that volumes sourced from a farmer group are recorded at the point of sourcing
and result in a volume “credit”. These credits can be sold as part of products containing cocoa with any origin of beans. A “balance” must be maintained
between the inflow and outflow of credits. The implementer of the program (currently Barry Callebaut) submits a mass balance calculation to the annual
verification of the Cocoa Horizons program, which documents credit inflows, outflows, starting and ending balances for the fiscal year concerned. The
implementer makes available all underlying purchase and sale data for a sample‐based verification of the numbers reported by the Cocoa Horizons program
independent assurance provider engaged by the Cocoa Horizons Foundation.
Some additional rules on credits & claims:‐‐

No backwards credit transfer
o The Foundation does not keep track of the specific customer premium used in the programs, therefore there is no possibility to transfer thecredit back.
Cocoa Horizons and origin claim

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‐

‐
‐
‐

If a customer is purchasing and communicating on a single origin and still wants to purchase and communicate on Cocoa Horizons, they can do so withcertain provisions:o Customer must be aware that TODAY, Cocoa Horizons activities are implemented in Ivory Coast, Ghana, Cameroon, Brazil, Indonesia. Ecuador
and Nigeria.
o Customer must be aware that the PROGRAM where they support sustainability activities MAY NOT BE IN THE ORIGIN where they buy cocoa
o For customer communications, the following are accurate: The sale of customer’s single origin cocoa supports cocoa sustainability activities where Cocoa Horizons is operating.
 (This product) supports the activities of the Cocoa Horizons Foundation
 The sale of customer’s single origin cocoa supports cocoa sustainability activities in Ivory Coast, Ghana, Cameroon, Brazil, Indonesia,
Ecuador and Nigeria.
If a customer purchases from a single origin but does not communicate on that origin, then they can communicate freely on Cocoa Horizons
Cocoa Horizons and organic claim
Similar as above, it is possible to add Horizons credits of a conventional flow to an organic flow, as long as the claim is made as follows: "support to
Cocoa Horizons Foundation wherever the program is operational”.

Cocoa Horizons Premiums
The Cocoa Horizons Foundation ensures that premiums paid by customers exclusively fund Cocoa Horizons program expenditures. The Foundation reports
third party verified results in an open and transparent manner to customers and other involved stakeholders on an annual basis via the Cocoa Horizons
website.
Cocoa Horizons customers pay a premium based on the volume of cocoa ingredient sold in the products they buy, which will be used in five ways:
1.
2.
3.
4.
5.

Payment of cash premiums to Farmers and Farmer Groups.
Community development projects related to Education, Child Protection and Women’s Empowerment
Productivity projects related to increasing, diversifying and sustaining the income and livelihoods of cocoa farmers
Environmental projects related to protection of forests and climate action
Administration (minimum necessary costs to run the Foundation, including Marketing, Legal, Finance support and the third party verification)

The following chart gives a non‐binding overview as to how the Cocoa Horizons premium is apportioned across the five activity areas:

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Cash Premiums to Farmer Groups and Farmers are based on the volume of Cocoa Horizons beans sourced from that Farmer Group and its Farmers. Thismay be subject to an agreed annual quota for each farmer group which depends on the overall demand for sustainable cocoa. At least 50% of the cash
premium paid to Farmer Groups must be paid directly to the Farmers. The expenditure for farmer group and farmer premium must always occur in the crop
season when the cocoa was sourced.
The premium amount available for other program activities (productivity, community, environment and administration) is equal to the sales value times theshare of these activities in the breakdown provided above. Premiums shall be spent within two years after the fiscal year ending on 31 August, in which
they were invoiced to Cocoa Horizons customers. The fiscal year of the Cocoa Horizons Foundation runs from 1 September to 31 August.

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COCOA HORIZONS Charter – global - V2.0

The statutory financial statements of the Cocoa Horizons Foundation report the total amount of premiums collected from Cocoa Horizons customers andthe total amount of expenditure on each Cocoa Horizons activity area. These statements shall be annually audited in accordance with Swiss foundation
law.
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COCOA HORIZONS Charter – global - V2.0

Appendix
Cocoa Horizons Risk Assessment and Theory of Change Table
Risk

Proposed Intervention

Outcome indicator

Theory of change statement

Poverty: Farmers below poverty line may
abandon cocoa farms and could potentiallyresult in a supply chain disruption.

Farmer training, coaching, Farmer
Business plan, provide access to micro
credit and Farm Services for productivity
and replanting packages, promotion ofincomediversification,
women
empowerment.

Barry Callebaut Forever Chocolate target
is by 2025 to lift 500,000 out of poverty.
Cocoa Horizons will contribute to thistarget.

The farmers will prosper by increasing
productivity and income from cocoa, income
diversification, increase income generation byempowering
women
and
in
generalprofessionalizing the farmers. The Farmer
Business Plan is the cornerstone for this, such aplan is offered to the farmers once they havefollowed the training and receive coaching. Thiscan only happen in an environment where
farmers have access to financial services, land
tenure and adequate social infrastructure.

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Deforestation: Expansion of cocoa growing
areas threatens biodiversity and contributes
to global climate change

Avoiding further deforestation bymapping of cocoa farms, de‐listing andavoiding any further buying from farms
found in protected areas; sensitization ofcommunities on biodiversity and forest# farmers trained% women participants in training% adoption of GAP# implemented FBP# Productivity packages# Replanting packages#Hectares cocoa replanted and#Hectares cocoa underplanted# of repeat loans from farmers with
FBPs over x timeframe (split bygender)Repayment rates from farmers with
FBPs over x term (split by gender)# Farmer Group staff trained
Share of premium paid to farmers# farmers out of poverty (based on
the World Bank poverty line of USD
1.9 per day per head)

Barry Callebaut Forever Chocolate target
is by 2025 to be carbon and forest
positive. Cocoa Horizons will contribute tothis target.

Forest and carbon positive requires a reduction ofcarbon emissions (e.g. improved cookstoves), andincrease of carbon sequestration (e.g.

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Carbon emissions: Emissions associated withcocoa farming do

protection, and enabling farmers toincrease productivity on existing farms.

not decrease, continuing contribution toclimate change, preventing long term
sustainability.

Promotegreen
technologies, andsustainable agroforestry practices toreduce emissions and sequester carbon atorigin.

agroforestry, increase shade trees) throughimproved on‐farm practices and training.
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Volume proven to be free fromdeforestation# of farmers reached at awarenessevents# Farmers trained /graduated# Farmers Forest Charter signed# of communities with consultation
sessions and # of participants percommunity (male/female & <40yrs)# and % of farms mapped# hectares included in deforestation
risk assessment (based on mapping)% of direct source cocoa traceable tofarm‐level# of trees registered on cocoa farms# and % of farmers in supply chain
with secure land titles# Replanting packages# of replanted cocoa trees# of hectares of cocoa rehabilitated# and % of farmers applying crop
diversification# of farmers trained in GAPs
# of multi‐purpose trees distributedfor on‐farm planting# and % of farmers offered afinancial product# hectares cocoa agroforestry
developed# of trees conserved# native trees planted off‐farm# hectares of forest area restored#Number of clean energy devices
distributed to communities

Upstream effects, especially deforestation, areavoided by increasing productivity and livelihoods
on existing farms.

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COCOA HORIZONS Charter – global - V2.0

Worst forms of Child labor: Children are
deprived from their rights and exposed todangerous working conditions.

Empowering communities to implement
Child Labor monitoring and remediation
system, raise awareness and prevent childlabor. Creation of community plans andcommunity structures

Barry Callebaut Forever Chocolate target
is by 2025, to have zero child labor in its
supply chain. Cocoa Horizons willcontribute to this target.
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Number of communities assessed for
CL risk profile
Number of community action plans
Number of communities with a
CLMRS – equivalent process in place
Number of child labor cases
identified
Number of identified child labor thathave been remediated. Remediatedcases are CL cases that have been
covered by an individual oraggregated remediation activity(sensitization, education support,
replacement labor)
No. of education‐related
interventions incl. provision of birthcertificates

One of the root causes of child labor is poverty,
which needs to be address in priority. In parallel
eliminating child labor requires accountablecommunity structures, access to alternative
sources of labor and to quality education forchildren.

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