20 16 - Chocolats Halba · 2017. 10. 25. · century. In 1879, Rodolphe Lindt from Bern developed the conching process. This was used to refine chocolate, leading to the founding

2016

SUSTAINABILITY REPORT

CHOCOLATS HALBA2016 SUSTAINABILITY REPORT 2

At a glance 3

About this report 4

Profile 7 Products and services 8 Company 12 Sustainability strategy 16

Purchasing 22 Objectives 23 Cocoa 24 Additional raw materials 30 Certification 33 Environment 38 Human rights 41

Production 44 Objectives 45 Energy & climate 46 Packaging 51 Waste & recycling 54

Employees 56 Objectives 57 Personnel structure 58 Social benefits 60 Opportunities 63 Training and expertise 64 Occupational health and safety 66 New location 68

Sales 69 Objectives 70 Segments 71 Quality and product safety 74 Differentiation 77 Labels 79 Customer satisfaction 83

Report 85

Appendix Key figures 92 GRI G4 Content Index 96 Publishing details 102

Table of contents


Women in management 2016 Unit sales of products labeled as CO2-neutral in 2016

35%

Climate-neutral since 2011

At a glance

Fairtrade-certified cocoa beans purchased 2016

94% 100%

18.8 mSales from products bearing sustainability labels

CHF million

90

80

70

60

50

40

30

20

10

0

2010 2011 2012 2013 2014 2015 2016

8.4

17.

7 23

.9

36

.2

55

.6

66

.4

88

.3

Recycling rate 2016: 77%

tonnesTotal amount of waste Recycled waste

2013 2014 2015 2016

800

700

600

500

400

300

200

100

0

65

7.5

510

.559

0.2

44

4.2

70

4.9

55

7.9

76

1.3

58

5.9


About this report

In October 2017, Chocolats Halba is publishing its third sustainability report, which is in accordance with the Global Reporting Initiative’s (GRI) G4 Sustainability Reporting Guidelines. We chose to apply the guidelines at a “core” level. The present report covers developments and key figures from the 2015 and 2016 financial years. This period was characterized by the establishment of our new factory location in Pratteln. At the same time, we increased sales of sustainable products and launched additional agroforestry projects in cocoa-growing countries.

As the following interview shows, we intend to further expand our commitment to sustainability over the coming years – for chocolate that we can all enjoy.


Interview with Joos Sutter, Chairman of the Coop Executive Com-mittee and Anton von Weissenfluh, Head of Chocolats Halba

Is sustainability a key factor in business success or merely a cliché?— Joos Sutter — Sustainability is part of Coop’s DNA. It is strategic and deeply anchored in our daily work and, together with our commitment to people, animals and the environment, is central to long-term corporate success. Over 300 actions show that sustainability is being consciously practised in real terms at Coop.

— Anton von Weissenfluh — Over the last two years, we have increased our sales of labeled (sustainable) products by more than 50%. Sustainably produced chocolate is THE success factor for Chocolats Halba.

What issues will become more important going forward?— Joos Sutter — Sustainability will always lie at the heart of our business. We have defined our focal themes in our 2020 multi-year sustainability objectives. Not only do we want to be the most proficient provider of particularly sustain-able products, but we also want to anchor sustainability throughout our entire range and particularly in our own-label brands. For example, one of our focal themes is reducing energy consumption and CO2 emissions.

Within operations, we want to be CO2-neutral by 2023. Thanks to our ongoing commitment to the three pillars – sustainable products and services, resource efficiency and climate protection, and employees and society – we have been internationally recognized as an exemplary retailer for our work on key sustainability issues.

— Anton von Weissenfluh — Transparency and honesty are becoming increasingly important when dealing with employees, working with partners on the ground, declaring products, and when dealing with suppliers and customers. Maintaining and strengthening partnerships along the entire value chain is vital when it comes to practical sustainability.

G4-1


How is the move to Pratteln looking for you and your employees?— Anton von Weissenfluh — It’s not an issue for me – I’m moving forward with conviction and enthu-siasm and of course I hope that as many employees as possible will follow me.

The new building in Pratteln is a clear commitment by Coop to Switzerland as a production location. Around 600 employees from approximately 25 professional groups are being united in the new building with its state- of-the-art infrastructure, rail connection, wood-pellet heating and photovoltaic cells. Learning from one another and improving ourselves or, as the Coop vision says – “Together to the top” – that will be my creed in Pratteln.

For many employees, the move to Pratteln will not be possible, particularly for family reasons. I personally regret this greatly. It’s a new opportunity for everyone, and I’m relishing the prospect.

G4-1


True chocolate In 1933, two pioneers started to manufacture chocolate in their own living room, thereby laying the cornerstone for Chocolats Halba. Thanks to its huge commitment to people and the environment along the entire value chain, this innovative business with an 80-year tradition of making chocolate is today the sustainability forerunner of the Swiss chocolate industry. We aspire to manufacture the best and fairest chocolate in Switzerland.

Profile

G4-3


Profile – Products and services

Sustainability in its sweetest formChocolate lies at the heart of a prestigious Swiss economic sector. Although domestic consumption is falling somewhat, we have in recent years succeeded in growing – thanks also to increasing exports. Chocolats Halba is enjoying success with its wide range of high-quality and sustainable chocolate specialties manufactured primarily for the Coop Group and foreign consumer brands.

The cocoa plant originates in South America. Returning from his travels, Christopher Columbus brought cocoa beans to Europe for the first time, where chocolate gradually became popular over time – but only as a drink.

Chocolate as we know it today was invented at the beginning of the 19th century. In 1879, Rodolphe Lindt from Bern developed the conching process. This was used to refine chocolate, leading to the founding of an entire industry and the international reputation of Swiss chocolate.

Today, Switzerland is second only to Germany as a chocolate-consuming nation, with eleven kilograms of chocolate being consumed per person in 2016. 70 percent of this is milk chocolate. Dark chocolate, which has become particularly popular in recent years, accounts for around 25 percent.

Growing exports

The Swiss chocolate industry currently produces over 185,000 tonnes of chocolate, around two-thirds of which is destined for export. Despite an outstanding range of domestic products, consumption of foreign chocolate has for several years been growing in Switzerland, probably for price reasons. However, local chocolate manufacturers have succeeded in offsetting the declining domestic market with growing exports.

G4-4



With the exception of 2015, when the exchange rate for the Swiss franc rocketed, Chocolats Halba too has been following a growth trajectory. In 2016, we produced almost 13,000 tonnes of chocolate goods, generating a turnover of around CHF 117 million. At our factories in Wallisellen and Hinwil, almost 260 employees processed cocoa from Ghana, Honduras, Ecuador and Peru, transforming it into bars, coatings, seasonal items for Easter and Christmas and confectionery items. The company’s main customer is Coop. Its key export markets are Germany, Italy, France, Australia, China, Canada and the USA.

Quality and sustainability

Our core expertise lies in manufacturing premium chocolate with added value. As well as organic and fair-trade products, Chocolats Halba has since 2010 been the world’s first chocolate manufacturer to offer CO2- neutral chocolate. We generate around three-quarters of our sales from chocolate products that meet stringent sustainability requirements and bear at least one of the following labels – “Fairtrade” “Organic”, “UTZ” or “Carbon-neutral product”.

“Besides seeing ourselves as pioneers in sustainability, we also place great importance on very high quality. Thanks to our many years of experience and our close relationships with cocoa producers, it is possible to offer high-quality specialties, including a range of origin- specific chocolates based on premium South American cocoa varieties.” Anton von Weissenfluh, Head of Chocolats Halba

Chocolats Halba not only manufactures own-brand products, but also produces products for national and international consumer brands. Anyone who buys at least 45 tonnes per year from us can have a high-quality chocolate manufactured to their own taste.

Chocolats Halba therefore produces a wide range of chocolates for the international market to customer-specific formulations. We are also able to manufacture products with special exacting labels such as “Halal” and “Kosher”.

G4-4, G4-5, G4-6, G4-8, G4-9


1. PurchasingWhere possible, Chocolats Halba buys its cocoa beans directly from small-scale farmers who are organized into cooperatives. By excluding the middleman, they can achieve higher margins.

2. TradingThe beans are transported to Switzerland in shipping containers. Although Chocolats Halba manufac-tures most of the cocoa mass itself, the cocoa butter is bought from in-termediaries.

3. ProductionAs a B2B specialist, Chocolats Halba does not have a presence on the mar-ket as a brand. Its main business is contract manufacturing for retailers’ own brands, for other brands and for industry.

4. DistributionChocolats Halba’s products reach retailers by rail, ship or truck, or are sent to industrial companies in the form of semi-finished products.

5. SalesAt the end of the value chain are the consumers, who relish the diversity available on store shelves and are prepared to pay an appropriate price for their little treats.


Value chain

G4-12



Sales 2014 2015 2016

CHF million

Swiss sales 84.2 88.3 84.5Foreign sales 28.6 26.9 32.6Sales from products bearing sustainability labels 55.6 66.4 88.3

Working with passion and creativity: chocolatiers François Stahl (l.) and Christian Thäler.

G4-9


Profile – Company

Tradition and lean processesWe have been manufacturing high-quality chocolate specialties for over 80 years, first in Zurich and then in Wallisellen and Hinwil. Since the beginning of 2017, these two sites have been gradually relocated to Pratteln to modernize production and exploit synergy with other Coop manufacturing companies.

In 1933, Willy Hallheimer and Werner Baer founded a joint stock company in Zurich for the purpose of manufacturing chocolate. These two pioneers chose a company name that combined the beginnings of their last names: Halba. The business initially operated out of Baer’s living room, but then grew rapidly and continuously.

In 1955, the company moved its headquarters to Wallisellen, and twelve years later took over the production of two manufacturers in Wald (Zurich), which was later moved to Hinwil (Zurich). In 1972, Coop took over Chocolats Halba in its entirety and in 2004 integrated the business fully into the Coop Group. In 2013, Coop founded the small Chocolats Halba Honduras subsidiary to safeguard the sustainable procurement of top-quality cocoa from this country.

Cooperative structure

The Coop Group is a cooperative with over 2.5 million members and numerous investments in retail, wholesale and manufacturing companies in Switzerland and abroad. Unlike joint-stock companies, for instance, cooperatives do not exist to generate profit for their shareholders. The revenue they generate is for the benefit of their employees, or is reinvested.

The Coop Cooperative’s supreme body is the Delegate Assembly, whose tasks include electing the Board of Directors. The cooperative structure ensures a balance of power within the company and an even distribution of added value. Details of the Coop Group’s structure and governance can be found in the Coop Annual Report.

G4-7, G4-17


Profile – Company

In organizational terms, Chocolats Halba is a Coop division within the IT/Production/Services Business Unit. The division underwent a minor re-structuring in 2016, and now consists of five operational departments plus three staff departments (see organization chart). Divisional management consists of the Divisional Manager Anton von Weissenfluh and the five departmental managers.

Staff Unit for Sustainability and Communication

Since 2016, Chocolats Halba has had its own Staff Unit for Sustainability and Communication, which reports directly to the Divisional Manager. This unit looks after the growing need for information that results in particular from the commitment to sustainability.

The unit also takes care of controlling and interdisciplinary tasks that are defined in the sustainability strategy, such as planning and implementing projects in cocoa-growing countries and controlling key sustainability fig-ures. This data is validated annually and prepared for use in reports and also for internal purposes, such as calculating the CO2 footprint of the company and of CO2-neutral chocolate – a task carried out by the myclimate Foundation.

Until the end of 2016, our Wallisellen and Hinwil production locations were certified in accordance with ISO 9001, ISO 14001 and FSSC 22000. Since the beginning of 2017, the company has gradually been relocating all its production facilities to Pratteln near Basel. The new site makes it possible to exploit synergy with the Coop manufacturing companies Sunray and Cave, and to boost competitiveness. It will also make a significant contri-bution to achieving the Coop vision of “CO2-neutral by 2023” thanks to wood-pellet heating and a large array of solar panels. Chocolats Halba’s production has been climate-neutral since 2011.

The relocation also means that Chocolats Halba has had to relinquish its ISO 14001 certification for environmental management. Recertification in Pratteln is not possible since Sunray and Cave, who manufacture under the same roof, would also have to be certified according to ISO rules, but they are not currently seeking to obtain certification. However, Halba is continuing to operate a large number of the processes required under ISO 14001 even though it is not certified.

G4-13


Profile – Company

Intensive collaboration with stakeholders

We maintain a constant dialogue with our internal and external stakeholders. Chocolats Halba is a member of important national and international industry organizations such as Chocosuisse, the Swiss Platform for Sustain- able Cocoa and the World Cocoa Foundation (WCF). The company is also a member of öbu, the Swiss association for sustainable economic activity. We also work closely and constructively with other organizations in pro-jects and consortia – particularly in the field of sustainable cocoa farming and trading, for example with Helvetas, Swisscontact, SECO, the Interna-tional Trade Centre and Max Havelaar Schweiz.

“We need a future for agriculture that is sustainable and inclusive for all stakeholders involved in the value chain. ITC is glad to be working alongside Chocolats Halba and other strong national and international partners from the public and private sector to implement Alliances for Action, a livelihood and partnership initiative in support of farmer income diversification, adaptation to climate change, better cocoa and greater trade impact.” Anders Aeroe, Director, Division of Enterprises and Institutions, International Trade Centre (ITC)

G4-15, G4-16


TECHNICAL DEPARTMENTDaniel Siegenthaler

PRODUCTION WALLISELLENPatrick Huber

PRODUCTION HINWILMax Rüeger

TECHNOLOGYMarc Rüegg

PRODUCTIONDaniel Facchin

SCM / PROCUREMENT / PLANNINGDaniel Böni

BM / C-ITRaphael Stocker

MARKETING / SALESAndreas Hasler*

INNOVATION MANAGEMENT Marcel Baumann

HEAD OF CHOCOLATS HALBAAnton von Weissenfluh

SUPPORT / PROJECTSDoreen Fiedler

PROJECTSGiovanni Schiavo

SUSTAINABILITY / COMMUNICATIONPetra Heid

Kathrin Brugger

QUALITY MANAGEMENTSimone Zollinger

Angela Huwyler

DEVELOPMENTFrançois Stahl*

Christian Thäler* Joel Menoud

Oliver Berger

Mario Moggio*

Michael Berguich*Stjepan MaricRoman Dürst

Ursina Heim*

SALES SWITZERLAND René Gautschi

SALES EXPORT/EUROPERené Breu

SALES ASIAMirjam Weber

MARKETING/SERVICESKatja Peter

IN-HOUSE CUSTOMER SERVICETamara Haller

PRODUCT MANAGEMENTNatalie Wunderlin

Dieke Helder

PLANNING / MASTER DATAReto Trummer

OPERATIONAL PURCHASINGHolger Trefzer

iT Alessandro Giudice*

BW/CDaniela Buser

Chocolats Halba organization chart as at the end of 2016

*Deputy

Profile – Company


Profile – Sustainability strategy

Clear objectives for better chocolateWe know that Chocolats Halba’s long-term success depends on us defining our processes and buying our raw materials in an economic, socially responsible and environmentally friendly manner. The company therefore pursues a compre-hensive sustainability strategy throughout the entire value chain, from cocoa farmer to consumer.

Chocolats Halba is the sustainability pioneer of the Swiss chocolate industry. By launching a flagship project in Honduras in 2008, it laid down the first milestone in the development of its wide-ranging commitment to sustainabil-ity. The aim of the project was and still is to revive the thousand-year-old cocoa tradition that Hurricane Mitch destroyed in just a few days in 1998.

“In recent years, we have succeeded in establishing Honduras in the market as a source of sustainable premium cocoa and contributing to a better standard of living for farmers with fair prices. We now need to support these farmers in further increasing the productivity of their farms.” Luis Velex, Head of Chocolats Halba Honduras

Within four years of launching the first sustainability project in Honduras, the company succeeded in setting some more remarkable milestones in its commitment to sustainability; for example, buying virtually all its cocoa beans from fair-trade sources, reducing the greenhouse gases generated in chocolate production by around a quarter and offsetting the remaining emissions within its own value chain.

G4-2



Comprehensive sustainability strategy

In 2012, Chocolats Halba drew up its first comprehensive sustainability strategy. Our aim was to further strengthen our sustainability efforts and systematically integrate them into the core business. This was done by wording specific objectives and general sustainability principles. In extensive interviews and surveys, external stakeholders also had a say for the first time. These included customers, suppliers, authorities and NGOs. Coop played a special role here. As our parent company, it is also our biggest customer and sponsor of sustainability projects.

The result of this broad-based process was the 2013–2015 sustainability strategy, which was based on the four pillars of “Sustainable sourcing”, “Corporate ecology”, “Employees” and “Sustainable products and services” throughout the length of the value chain (see figure). For each pillar we defined main focuses, which were broken down into key measures, strate-gic objectives and indicators (KPIs). At the same time, we implemented a sustainability management system that defines clear responsibilities and includes systematic progress monitoring. The strategy also stipulates that each member of management should be given a sustainability-related annual target.

– Security of supply– Traceability– Child labor– Working conditions– Poverty and wages– Protection of resources

– Promotion– Advanced training– Equal opportunities– Work-life balance

– Greenhouse gas emissions– Energy consumption– Packaging material– Waste

– Quality– Sustainability as a competitive advantage– Customer satisfaction

Media and document analysis Internal interviews

Stakeholder dialog

Strategic pillars

Sustainability strategy

The 2013–2015 sustainability strategy is based on the four pillars “Sustainable sourcing”, “Corporate ecology”, “Employees”, and “Sustainable products and services” along the length of the value chain.

Sustainable Purchasing Corporate environmental protection

Employees Sustainable products and services

G4-2, G4-15, G4-18, G4-24, G4-25, G4-26, G4-27



Business partners in duty

Our sustainability efforts also involve Chocolats Halba’s business partners. For example, all our suppliers are bound by our “Socio-ethical and eco-logical procurement” guidelines and by the Coop Code of Conduct.

For instance, the Coop Code of Conduct states: “We treat our suppliers as business partners and demonstrate loyalty and a spirit of partnership. In this way we seek to bring about close cooperation based on mutual trust and respect. We seek to build up performance-oriented and value-adding long-term partnerships that demonstrate sustainable prospects of devel-opment for Coop and suppliers alike”.

Chocolats Halba is a partner that can be relied upon, but in return it does make some demands. The sourcing guidelines make it clear that we expect our business partners and their subcontractors “to respect the local environmental and social legislation in their production plants and opera-tions.”

In line with risk, we require our business partners to provide proof that they check compliance with their subcontractors. The sourcing guidelines also stipulate that preference will be given to business partners who reduce the environmental impact of their products over and above the legal minimum.

G4-2, G4-15


Binding guidelines until 2020

The sustainability strategy drawn up in 2012 is still applicable today. At the end of 2016, Chocolats Halba’s divisional management updated the objec-tives and measures, which are now binding until 2020. Based on experience gained, we also adjusted the focal points of our commitment and revised the materiality matrix. As part of a survey conducted by the “Hochschule Luzern”, internal and external stakeholders were once again able to have their say. One result of this process is that Chocolats Halba is now getting even more involved in supporting women and young people.

It was not only stakeholders and the superordinate multi-annual sustainabili-ty targets of Coop that had a major influence on defining our sustainability strategy, but also internationally developed initiatives such as the Global Reporting Initiatives, the United Nations’ Sustainable Development Goals (SDG) and the International Labour Organization’s guidelines. Whenever possible, Chocolats Halba takes account of these broad-based standards in its own principles and reporting.

When dealing with environmental matters, we are guided in particular by the precautionary principle, not least because when procuring agricultural raw materials, we rely to a large extent on intact ecosystems.


G4-2, G4-22, G4-23, G4-24, G4-25, G4-26, G4-27


Materiality Matrix

International frameworks and conventions like the UN Sustainable Development Goals, UN Global Compact, the Universal Declaration of Human Rights or the ILO labor and social standards, together with the Coop-Guidelines, form the normative foundation for Chocolats Halba’s sustainability commitment. Stakeholder surveys conducted by students of the “Hochschule Luzern”, interviews with Chocolats Halba’s divisional management and a careful reflection of previous focus topics led to the development of a new Materiality Matrix with clear focus topics in 2016. This Materiality Matrix forms the basis for our sustainability strategy 2017–2020. Topics which are declared as barely significant by Chocolats Halba and the stakeholders are not treated like focus topics. These include odor emissions, operational safety and the development of new markets. The term “Integrity” represents Chocolats Halba’s self-image regarding its values, strategies and actions. It includes aspects such as commitment to company values, compliance with legal frameworks and the Code of Conduct, and the strategic orientation of the company.

low

Imp

ort

anc

e fo

r st

ake

ho

lde

rs (

inte

gri

ty)

2

3

5

9

7

8

12 11

1

4

6

10

Hig

hly

sig

nifi

can

tS

ign

ific

ant

Purchasing2 Human rights in procurement 3 Partnerships5 Raw material procurement 9 Ecosystems

Employees6 Employee loyalty

Sales1 Product safety and product quality 4 Customer satisfaction10 Development of new markets

Production7 Use of resources and climate neutrality 8 Climate change11 Odor emissions12 Operational safety


hig

h

low Importance for Chocolats Halba (competitiveness)

high

G4-2, G4-15, G4-18, G4-19, G4-20, G4-21, G4-22, G4-23, G4-27



Strategic affiliation

Materiality Matrix Issues Internal linking

Procurement

Human rights in procurement

Promotion of womenChild protectionFood securityStandard of living

Purchasing / Human Rights

Partnerships

Respect and trust, CommunicationFairness in competitionContract conformity

Profile / Sustainability strategy

Procurement of raw materials

Traceability Certifications such as Fair-trade, Bio, UTZ, SA8000, BSCI, FSC Quality and procurement security

PurchasingPurchasing / Certification

Purchasing

Ecosystems

BiodiversityNutrient cycleSoil fertility

Purchasing / Environment

Employees

Employee loyalty

Working conditionsDevelopment opportunities, TrainingEqual opportunities Reconciliation of family and working lifeOccupational health and safety

Employees / Social benefitsEmployees / Training and expertise

Employees / Opportunities Employees / Social benefits

Employees / Occupational health and safety

ProductionUse of resources and climate neutrality

Gentle use of natural resourcesEnergy use and energy efficiency CO2-offsettWaste

Production Production / Energy & climate

Production / Energy & climateProduction / Waste & recycling

Production / Environment Production / Energy & climateClimate change

Production of raw materialsGreenhouse gas emissions

Sales and Consumption

Product safety

Quality assurance for raw materialsQuality management proceduresHealth trends

Sales and Consumption / Quality and product safety

Sales / Customer satisfactionSales / DifferentiationSales / Labels

Customer satisfaction

Customer serviceInnovative strengthSustainability

G4-2, G4-19, G4-22, G4-23, G4-27


Our key ingredient – fairness Chocolats Halba pursues a sustainable corporate strategy along the entire length of its value chain. The raw materials required to manufacture its specialties, such as cocoa, cane sugar and hazelnuts, largely originate in remote, extremely diverse countries. Our purchasing experts often face huge economic, social and environmental challenges. Chocolats Halba is committed to fair, sustainable sourcing and relies on maximum transparency and traceability.

Purchasing


What we have achievedChocolats Halba developed its sustainability strategy in conjunction with its stakeholders, thereby setting itself some ambitious goals. At the beginning of our value chain are the cocoa farmers and their plantations. Treating them fairly is a fundamental factor for our success. In accordance with our sustainability strategy, we seek to achieve sustainable sourcing along the entire chain. In this way, we have already achieved a good deal.

Purchasing – Objectives

2016 objectives 2016 status

2015 status

Comment Action planned

Well on the wayCocoa beans: 100% fair. 94% 98%

Chocolats Halba buys only certified Fairtrade cocoa beans from all countries except Honduras.

Fairtrade certification for all cooperatives in Honduras that supply Halba.

Well on the way

Cocoa butter: 100% certified to interna-tional standards and/or 100% traceable. 98% 86%

Certifications: 63% Fairtrade, 21% UTZ, 14% Organic plus Fairtrade.

AchievedPalm oil: 100% sustainable. 100% 100%

Palm oil: 100% Certified as RSPO-segregated.

Not achievedSoya lecithin: 100% sustainable. 0% 0%

Use of soya lecithin has been reduced as much as possible. 2016 target couldn’t be reached due to person-nel changes.

Sustainability strategy 2017–2020: Develop-ment of a new target for procurement of sus-tainable soya lecithin.

Not achievedHazelnuts: 100% sustainable. 7% 2%

7% hazelnuts certified organic. UTZ hazelnuts only available since 2017.

35% UTZ hazelnuts by the end of 2017.

Achieved

At least one re-forestation project in each cocoa-buying country. 100% 100%

Countries: Ecuador, Honduras, Peru, Ghana.

Continue to progress with pilot project in Ghana.

Not fully achieved

Plant at least 500,000 timber trees in partnership with cooperatives. 308,956 224,136

Countries: Honduras, Peru and Ghana.

There are plans for additional reforestation projects.


Purchasing with a plus for all Due to its outstanding economic importance and also the environmental and social risks involved, Chocolats Halba focuses its attention primarily on cocoa when it comes to purchasing. The best way to secure high quality in the long term is by buying directly and responsibly. Chocolats Halba therefore buys almost exclusively Fairtrade-certified cocoa butter and beans from cooperatives.

The cocoa tree (Theobroma cacao) originates in the primeval forests of Central and South Africa. Today, an estimated five million small-scale farmers in West Africa, Asia and Latin America produce 95% of the cocoa enjoyed throughout the world. Despite growing demand, farming families still lack a stable income with which they can cover their most pressing needs. Their acreage is small, and their harvests are modest. They also have to contend with wildly fluctuating market prices.

Purchasing – Cocoa

Where our Cocoa comes from

2

3

1

4

1 Honduras 2 Ecuador3 Peru 4 Ghana

Cocoa growing regions


Cocoa products account for around 40 percent by weight of the raw mate-rials purchased by Chocolats Halba. We prioritize the procurement of cocoa, as it is a significant component, and its cultivation and trading contains environmental and social risks. We buy our cocoa mostly in the form of beans, processing them in our own plant to produce cocoa mass, which forms the basis for our wide range of chocolate specialties.

Fairtrade

In 2016, Chocolats Halba bought a total of 2,197 tonnes of cocoa beans from its partner cooperatives. Almost two-thirds originated from Ghana, with the remainder coming from Ecuador, Peru and Honduras. In addition to cocoa beans, Halba bought a total of 114 tonnes of Fairtrade cocoa mass and 43 tonnes of organic and Fairtrade-certified cocoa mass from other countries in 2016. In so doing, it is supplementing its range of origin-specific chocolates

Sustainably certified cocoa butter

98%Cocoa butter is the second most important raw material used in manufactur-ing chocolate. In 2016, Chocolats Halba purchased a total of 2,487 tonnes of it. 98 percent of this was certified as sustainable – 77 percent Fairtrade (19 percent also organic) and 21 percent UTZ. Only 2 percent of this cocoa butter was not certified, as it was ordered back in 2015 but not delivered until 2016. Since the beginning of 2016, Halba has only purchased certified cocoa butter.



Since 2010, Chocolats Halba has hugely increased the quantities of Fairtrade beans and butter it has bought (see figure on page 29). Our declared objective of achieving a fully certified cocoa supply chain is within our grasp. However, the percentage of Fairtrade-certified cocoa beans fell slightly to 94 percent in the year under review. The reason for this is that many cooperatives in Honduras only produce very small quantities, so they do not undertake the time-consuming and costly task of certification. However, Halba pays Fairtrade minimum prices and premiums for non-certified cocoa beans as well.

Direct relations

Worldwide demand for cocoa is growing. At the same time, climate change and non-sustainable cultivation methods are threatening the supply of high-quality cocoa. Added to this, labor-intensive cocoa farming does not appear very attractive to younger generations. Against this backdrop, Chocolats Halba is concentrating its business and sustainability strategy on securing the sourcing of its key raw material. The most effective way of safeguarding long-term supplies of high-quality cocoa is to buy it directly. Therefore, Chocolats Halba keeps its supply chain as short as possible and purchases a significant amount of cocoa beans directly from the cooperatives. In Ghana, the political conditions do not allow direct purchasing from individual cooperatives. Despite this, we are working closely there with our partner cooperative Kuapa Kokoo.

“We are linked to Chocolats Halba by a long-standing partnership based on loyalty and shared strategic goals. The company’s partnership and commitment to the long-term development of the cocoa sector goes way beyond simply buying fair-trade cocoa. With the new ’Dynamic agroforestry’ pilot project, we are jointly sending out a clear signal for the future of our cocoa.” Fatima Ali, President Kuapa Kokoo



Washington León Haro and Marlon Mora, employees of the UNOCACE in Ecuador, sorting and bagging cocoa beans for shipping. The cocoa beans have already been fermented, dried and quality tested.




Variety, soil and climate, cultivation method and cocoa bean processing all have a decisive impact on flavor and quality. By working closely with its partner cooperatives, Chocolats Halba gains a detailed insight into the local farming and processing methods. By giving farmers specific training and investing in the post-harvest infrastructure, Chocolats Halba is able to safeguard the quality of the cocoa beans it buys.

Our procurement and sustainability experts are in constant contact with the cooperatives and visit them regularly. If problems arise in the farming areas, Halba helps to identify causes and solutions. And the agroforestry projects that Chocolats Halba has initiated together with cooperatives in Honduras, Ecuador and Ghana are helping to secure the long-term pro-ductivity and quality of cocoa plantations.

Farmers in the Kuapa Kokoo cooperative in Ghana spread their freshly fermented cocoa out to dry.


In 2016, Chocolats Halba bought 98% of its cocoa butter from sustainably certified production. The percentage of Fairtrade-certified cocoa beans declined slightly as some cooperatives in Honduras are not yet Fairtrade-certified due to their low production volumes.

98% sustainably certified cocoa butter

94% sustainably certified cocoa beans

2010 2011 2012 2013 2014 2015 2016

100%

80%

60%

40%

20%

0%

11

52 55

86

98

24

6

100%

80%

60%

40%

20%

0%

74

10

94

91

97 98

94

2010 2011 2012 2013 2014 2015 2016

Promoting premium varieties

For manufacturing high-quality dark chocolate, Chocolats Halba uses premium original Latin American varieties of cocoa. However, these are being increasingly displaced by more robust varieties whose taste cannot compete with the diverse flavors of premium cocoa varieties.

For this reason, Chocolats Halba is promoting the cultivation of the original premium cocoa variety “Cacao Nacional Arriba” in its FINCA agroforestry project in Ecuador. This mixed cultivation approach is also particularly useful for safeguarding the supply of high-quality premium cocoa.



Ingredients with no after-tasteAs well as cocoa, good chocolate calls for a range of addi-tional choice ingredients from Switzerland and abroad. Although these raw materials are used in lesser quantities, Chocolats Halba still considers the ecological and social risks involved in their procurement and draws up suitable strategies.

Hazelnuts

Nut chocolates have always been extremely popular. In 2016, Chocolats Halba purchased the considerable quantity of 434.9 tonnes of hazelnuts. But these nuts are linked to social risks: in the main growing areas in Turkey, working conditions are often poor. Exploitative child labor also takes place.

To prevent human rights violations in the supply chain, Chocolats Halba relies on certifications. Since UTZ-certified hazelnuts only reached the market in 2017, we haven’t reached our target of 100% UTZ-certified hazelnuts yet. We will increase the share of UTZ-certified hazelnuts from risk countries to over a third until the end of 2017, and to over fifty percent until mid-2018.

“Over the next few years, we are going to intensify our relationship with suppliers in Turkey to gain a clear in-sight into the local situation there and help our partners to adhere to social production standards. In addition, over 50 percent of the hazelnuts we buy will be UTZ- certified by mid-2018.” Daniel Böni, Head of Procurement, Chocolats Halba

Purchasing – Additional raw materials


Palm oil

To create lucrative palm plantations, tropical forests are cut down, and soils and water are contaminated with pesticides. Working conditions are also frequently questionable. Therefore Chocolats Halba does not use any palm fat in its chocolate bars. In many of the products that we manufacture in line with the most stringent sustainability standards, we have switched to using sustainably produced and certified cocoa fat instead, processing 112 tonnes of it in 2016. But for certain fillings we still use palm oil because there is no equivalent alternative for it. Palm oil has outstanding melting properties, a neutral taste and is solid at room temperature. All the palm oil we buy is certified in accordance with the criteria of the international Roundtable on Sustainable Palm Oil – in 2016 this amounted to 139 tonnes. The palm oil we use that is designated as “RSPO-segregated” comes directly from sustainably managed plantations.

Soya lecithin

In 2016, Halba purchased a total of 34.4 tonnes of soya lecithin. In food-stuffs, this natural emulsifier ensures that fat-based and water-based ingredients combine well together. Chocolats Halba uses soya lecithin in selected products as it has particularly good melting properties.

Worldwide demand for soya is growing steadily. The sharp increase in its acreage over recent years, especially in South America, is creating environmental and social problems. For example, rainforests are being cut down, species diversity and soil fertility are suffering, and the use of pesticides is endangering the health of agricultural workers. So despite the compar-atively small quantities of soya lecithin it uses, Chocolats Halba attaches great importance to sourcing it sustainably.

We have therefore reduced the use of soya lecithin as much as possible but, due to personnel changes, haven’t reached our sustainability target yet. Chocolats Halba is currently developing a new sustainability target for the procurement of sustainable soy lecithin that will be included in the sustainability strategy 2017–2020.



Sugar

With a purchasing volume of 5,315 tonnes (2016), sugar is the second most significant raw material for Chocolats Halba in terms of quantity behind cocoa. 3,186 tonnes of the sugar it bought originated from Switzerland and was made from sugar beet. Halba also imported 703 tonnes of organic/Fairtrade cane sugar from Paraguay and 932 tonnes of Fairtrade cane sugar from Costa Rica.

Raisins, vanilla, etc.

In addition to the raw materials mentioned here, raisins, vanilla, almonds and milk are also among the raw materials that play a role in the sustainable production of chocolate. Based on experiences with our ongoing strategy, we are developing a detailed watch list as part of the 2017–2020 sustainability strategy, which contains concrete measures for the responsible purchasing of these raw materials.


Purchasing volume of sugar in 2016

5315t


Purchasing – Certification

Close scrutinyChocolats Halba uses established audited standards to create transparency and trust in its procurement processes. Depending on the origin of the raw material and the condi-tions that prevail when it is produced, we decide what type of certification is needed. When doing so, we take particular account of social and environmental criteria.

Certification plays an important role in the globalized economy. Independent organizations check that the manufacturing process and the products supplied meet agreed standards. These days, there are a large number of labels for various products and processes. Most of them focus on one particular aspect, although the requirements of some do overlap.

To create transparency for customers and business partners and to achieve its sustainability goals, Chocolats Halba uses a range of widespread, internationally established standards. But it is not possible to buy all certified raw materials in sufficient quantities or quality, or at an acceptable price. For this reason, Chocolats Halba has set itself different goals in its sustainability strategy depending on the raw material and certification involved.

G4-LA15


Fairtrade

The Fairtrade standard, which is also known in Switzerland as “Max Havelaar”, principally guarantees acceptable social conditions for products originating from the Global South. Fair minimum prices and purchase guarantees strengthen local producers, and Fairtrade premiums finance local social projects. The Fairtrade standard also lays down basic environ-mental requirements. At regular audits, independent inspectors check whether producer organizations are adhering to guidelines. 94 percent of the cocoa beans that Chocolats Halba bought in 2016 were Fairtrade-certified. For cocoa butter, this figure was 77 percent. The sugar that Chocolats Halba bought from outside Switzerland was all Fairtrade-certified.

Fairtrade cocoa beans

94%


G4-LA15


“Strong producer organizations are the key to self-deter-mination. Fairtrade supports this through democratically organized small farming cooperatives. This enables farmers to come together to gain a stronger position in the market. The guaranteed minimum price also ensures security, and the additional Fairtrade premium makes important in-vestments possible.” Fabian Waldmeier, Head of International Cooperation, Max Havelaar Foundation (Switzerland)

UTZ

The UTZ certification standard for good farming practice is an independent certification for cocoa, coffee, tea and, since 2016, hazelnuts. The label has expanded significantly over recent years, and our customers are increasingly demanding it. UTZ certification focuses on increasing productivity in agricultural production, which is intended to improve the living conditions of the producers and their families. Producers must also adhere to minimum environmental and social standards in order to be certified. Independent bodies conduct annual checks to establish whether producers are adhering to the code of conduct.

By buying cocoa butter and hazelnuts bearing the UTZ label, Chocolats Halba wants to ensure that no human rights violations occur during the production of the raw materials it purchases, and that minimum environ-mental standards are observed.


G4-LA15


RSPO

The “Roundtable on Sustainable Palm Oil (RSPO)” is an international organization that seeks to establish long-term, widely applicable solutions for the more environmentally and socially responsible cultivation of palm oil. In addition to environmental associations and other NGOs, its members primarily include businesses and institutions in the palm oil value chain, such as plantation owners, traders and industry buyers. RSPO auditors check whether producers are respecting local legislation and minimum environmental and social requirements. In its production, Chocolats Halba uses exclusively certified palm oil that is additionally endorsed as “Segregated”.

Organic

Organic labels denote the produce of controlled organic farming. There is now a whole range of such certification marks, including the Bio Suisse bud that is widely used in Switzerland, and that places stringent requirements on licensees. All the organic raw materials that Chocolats Halba buys, including over one third of all its cocoa beans, are certified in accordance with strict Bio Suisse criteria.

Palm oil certified as “RSPO-segregated”

100%


G4-LA15


BSCI

The Business Social Compliance Initiative (BSCI) is an international business initiative that aims to safeguard decent working conditions world-wide – such as appropriate remuneration, contractual working hours and basic employee rights – by means of a code of conduct. This also includes a ban on child labor. Chocolats Halba demands adherence to the BSCI requirements of all processing facilities based in risk countries.

SA8000

The SA-8000 standard is based on the International Convention on Human Rights and recommendations made by the United Nations’ International Labour Organization. These guidelines include strict requirements in the fields of working conditions, freedom of association and respect for human rights. Independent certification organizations make regular checks directly in the companies to ascertain whether the standards are being met.

These checks include interviews with employees and with stakeholders outside the company, for example, trade unions. Chocolats Halba uses SA-8000 in particular when buying hazelnuts – all the hazelnuts it buys are certified either in accordance with BSCI (see above) or SA-8000.

FSC

Cardboard and paper are obtained from wood. Since 2012, all of Chocolats Halba’s paper-based packaging has been made from recycled material or has been FSC-certified. The Forest Stewardship Council (FSC) campaigns for sustainable forestry around the globe. This non-profit organization has developed standards for environmentally and socially responsible forestry. Independent certification bodies ensure that all FSC-certified businesses meet the requirements for this standard.


G4-LA15


Added value for the climate and for diversityOur most important raw materials are agricultural products that are directly dependent on an intact environment. Climate change is therefore a huge challenge for cocoa farming. Increasing deforestation and the spread of mono-culture are exacerbating the situation. Chocolats Halba is not only committed to emitting fewer greenhouse gases in its production process, but is also actively involved in efforts to protect the climate in cocoa-growing countries.

Huge challenge

Scientists are undecided whether global warming is also influencing the frequency and intensity of large-scale weather phenomena such as El Niño. But what is certain is that climate change is already being felt. For example, droughts and floods are on the increase – and both of these weather extremes have an enormous influence on agricultural harvests. The cocoa harvest times in Central America have shifted, for instance. Whereas 2015 was markedly dry, early 2016 and 2017 saw weeks of heavy rainfall.

Combating climate change is a huge challenge, especially since the cocoa tree is a demanding plant, and a good harvest calls for a whole range of requirements to be met. The soil must be moist, deep and rich in humus. Temperatures during the middle of the year should be around 25 degrees Celsius, and should not fall below 20 degrees at night. Scenarios predicting the impact of climate change in Ghana indicate that some regions that are strongly shaped by cocoa cultivation today will by 2050 be less suitable or unsuitable for it due to increasing drought.

Purchasing – Environment


An integrated approach

The continuing deforestation of tropical forests and the trend towards monoculture are also putting cocoa farming under pressure. They are leading to changes to the microclimate and water supply in growing areas, as well as to biodiversity, which stabilizes ecosystems. Monoculture is a consequence of inadequate living conditions for farmers – they believe it will improve harvests and income. In fact, monoculture destroys the soil’s fertility in the medium to long term, and increases the susceptibility of the sensitive cocoa trees to disease. Farmers struggle to afford the necessary pesticides and fertilizers.

Chocolats Halba is pursuing a new, integrated approach to tackle environ-mental problems: agroforestry, which is a combination of farming and forestry. Halba was the first company world-wide to launch such projects in the cocoa-growing countries of Honduras, Ecuador, Peru and Ghana. We are working with small farmers locally and training them to plant and cultivate mixed-crop plantations consisting of cocoa and other fruit trees as well as native timber trees.


An employee of the ACOPAGRO cooperative in Peru prepares seedlings for the reforestation project.


Great potential

The benefits of agroforestry are impressive. Mixed cultivation leads to improved biodiversity and soil fertility. This makes the cocoa trees more resistant to climate fluctuations and diseases. The risk of reduced crop yields is lessened, while at the same time income opportunities multiply. Thanks to higher cocoa yields in the long term and also the additional sale of timber and fruit, farmers are able to boost their income significantly.

Halba has planted over 300,000 timber trees in its agroforestry projects since 2011, most of them in Honduras. New and existing projects are proving to be extremely promising. We therefore firmly believe that we will achieve our target of 500,000 trees in the medium term, thereby making a substantial contribution to the long-term climate stabilization.


Cocoa growing in the shade of banana trees and timber trees.


Tackling the roots of povertyMost of our raw materials come from countries in the Global South. Unfortunately, poverty is still widespread there, and consequently working conditions are not comparable with those in Switzerland. Chocolats Halba does not accept any form of human rights violation and is tackling the roots of issues such as child protection, fair wages for farmers and empowerment for women.

Poverty is multifaceted: poor nutrition, inadequate education, a deficient sanitary infrastructure, insufficient medical care, discrimination against women, and hard child labor. Although the global community has been able to reduce absolute poverty in recent years, it is still endemic in countries of the Global South, particularly in the remote rural areas from which the raw materials for chocolate originate.

Tangible contribution

For instance, the deprivation experienced by female cocoa farmers in West Africa is a major problem. Their lack of education – many cannot read or write adequately – means they do not know their rights or are unable to assert them. They also receive less revenue on the market than men do for the same yield. This in turn has wide-ranging consequences for children, since women invest a large part of their income in the education and health of their sons and daughters.

Chocolats Halba wants to make a tangible contribution towards improving their precarious living conditions. Through contracts, we oblige our suppliers to observe local human rights and, in all our countries of origin, we only buy cocoa that meets Fairtrade guidelines. In 2010, the Fairtrade premiums alone that Chocolats Halba paid for cocoa beans and cocoa butter amounted to over CHF 6 million.

Purchasing – Human rights


“Chocolats Halba’s commitment is hugely important for the producers of various raw materials such as cocoa and sugar. Using the premiums generated by Halba, they are able to invest in their operations and organizations. Chocolats Halba is also involved in specific projects, which is further boosting its positive impact.” Fabian Waldmeier, Head of International Collaboration, Max Havelaar Foundation (Switzerland)

Fairtrade is strengthening farming organizations through democratically organized small farming cooperatives. The farmers decide among them-selves what investments they want to make with the premium money and what projects they want to finance with it. For example, our Ghanaian partner cooperative Kuapa Kokoo has launched projects to promote women and protect children, for which Chocolats Halba is providing additional financial support.

Global pioneering achievement

However, we firmly believe that the greatest leverage lies in the compre-hensive combating of poverty. In other words, in projects that tackle poverty not only at an economic level, but also at a social and environmental level. Halba has therefore launched agroforestry projects in collaboration with experts and cooperatives in all its cocoa-buying countries.

The mixed cultivation of cocoa and other indigenous fruit trees is not merely a boon for the environment, but also multiplies the income oppor-tunities for cooperatives. The risk of harvests failing is reduced, and higher cocoa yields in the long term plus the additional sale of timber and fruit enable farmers to significantly increase their income.

In these global pioneering projects, Chocolats Halba is also specifically targeting women. They are being educated as farming trainers, which is giving them greater respect and expertise. They are also gaining oppor-tunities to earn money in farming and associated fields, for example, by setting up and running tree nurseries and selling additional fruit and vegetable crops.




The costs of developing and implementing these agroforestry projects are being borne principally by Chocolats Halba and the Coop Sustainability Fund. Financial support is also being provided by governmental and private development organizations such as SECO, Helvetas and Swisscontact.

Fairtrade premiums

In 2016, Chocolats Halba paid out 1,479,120 US dollars in Fairtrade premiums to its partner cooperatives. The level of these premium payments is dependent on the quantity of cocoa purchased, which explains the fluctuations over the last three years. Since 2010, Chocolats Halba has paid out a total of 6,582,989 US dollars in Fairtrade premiums.

Cocoa beans (Ghana, Peru, Ecuador) Cocoa liquor (Dom. Rep., Togo, Ghana)Cocoa butter (Dom. Rep., West Africa) Cocoa powder (West Africa)

2010:2011:2012:2013:

107,975709,750830,730

1,068,534

864,8901,521,9901,479,120

2014:2015:2016:

TotalinUSD

2010 2011 2012 2013 2014 2015 2016

1,000,000

800,000

600,000

400,000

200,000

0

USD


Setting priorities for envi-ronmental management Using natural resources carefully is not only our responsi-bility but also makes economic sense. The best way of leveraging sustainable production lies in how we deal with energy, emissions and waste. With the help of efficiency measures, renewable energy and CO2 offsetting, Chocolats Halba is able to manufacture completely climate-neutrally.

Production


What we have achievedAs a chocolate manufacturer, we have set ourselves some ambitious goals and are constantly working in line with our sustainability strategy to optimize our operations and, in particular, reduce greenhouse gas emissions. To evaluate its resource efficiency, Chocolats Halba also gathers key sus-tainability figures within the business each year. The com-pany offsets unavoidable emissions within its own value chain.

Production – Objectives

2016 objectives 2016 status 2015 status Comment Action planned

Well on the way

To reduce green-house gas emissions measured as CO2 equivalents by 30% (compared with 2008). –25% –19%

Decrease has been lower than expected due to an increase in production of dark chocolate, which is more energy-intensive to manufacture.

Wood-pellet heat-ing, solar panels and the use of waste heat at the new site from mid-2017.

Not fully achieved

To reduce specific greenhouse gas emis-sions measured as CO2 equivalents by 50% (compared with 2008). –35% –27%

Decrease has been lower than expected due to an increase in production of dark chocolate, which is more energy-intensive to manufacture.

Wood-pellet heat-ing, solar panels and the use of waste heat at the new site from mid-2017.

Achieved

To fully offset all non-reducible opera-tional greenhouse gas emissions within the cocoa value chain. 100% 100%


Pioneering achievement in climate protectionChocolate Halba consumes a lot of energy – mainly elec-tricity for the many different processes involved in manu-facturing chocolate. Energy usage is associated with CO2 emissions. To protect the climate, the company is reducing its own greenhouse gas emissions and offsetting the remain-der within high-quality projects. On this basis, Chocolats Halba’s manufacturing operations have been completely climate-neutral.

The industrial manufacture of chocolate requires a range of steps that are highly temperature-dependent and therefore need lots of energy for heating or cooling. Production plants also house countless electric motors to keep all the mixers, stirrers, conveyor belts and other electrical equip-ment moving. The most energy-intensive processes are the roasting and debacterization of the cocoa beans and the conching of the cocoa mass.

Chocolats Halba’s energy consumption is around 12 GWh per year. The company additionally consumes around 5 GWh of thermal energy per year, almost 93 percent of which it obtains from natural gas and 7 percent of which comes from district heating. Less than one percent of the thermal energy comes from oil. The thermal energy is used to heat buildings during the cooler months and for heating processes. Consumption there-fore depends greatly on the weather conditions and on production output.

Avoiding emissions as far as possible

The company’s energy use is directly and indirectly associated with the emission of greenhouse gases. Whereas burning fossil fuels such as oil and gas directly releases CO2 at the production location, the emissions resulting from electricity consumption are of an indirect nature, since CO2 is released when the power is generated, depending on the technology used.

Production – Energy & climate


Another source of greenhouse gases is the cooling systems used in choco-late production. Fluorinated hydrocarbons are used as a coolant and flow through pipes. Although the substances used today no longer damage the ozone layer, they do emit extremely large quantities of greenhouse gases if they leak through faulty seals, for example, and escape into the atmos-phere. Chocolats Halba therefore attempts to minimize coolant losses by optimizing maintenance, and keeps a log of such losses.

With regard to climate protection, Chocolats Halba’s principle is: avoid – reduce – offset. Avoiding means choosing processes that do not release any CO2. For example, the company obtains all its electricity from renew-able sources. Reducing means modifying processes so that they release less CO2, for example, by means of energy efficiency measures. Offsetting is used to reduce the unavoidable emissions at another location. Chocolats Halba exclusively compensates its CO2 emissions with “Insetting” projects in its own value chain.


Total energy consumption vs production

Total energy consumption develops broadly parallel to the volume of chocolate production.

Specific energy consumption

Specific energy consumption per kilogram of chocolate is around 1.41 kWh.

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.00

16

,08

8

1.3

0

16

,86

2

1.3

0

16

,86

4

1.3

8

15

,86

2

1.3

317,

99

3

1.4

1

Total energy consumption in MWH

Production of chocolate in tonnes

kWh/kg


Climate-neutral since 2011

100%On the basis of this three-pronged approach, Chocolats Halba has been operating completely climate-neutrally since 2011. To track its emissions, Halba has set up a monitoring system for key sustainability indicators, with which it calculates the carbon footprint of its business operations each year. These calculations are independently audited by the Myclimate Foundation.


CO2 footprint in tonnes

2008 2009 2010 2011 2012 2013 2014 2015 2016

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

3,3

43

3,5

31

2,6

11

2,7

09

2,5

05

2,3

79

2,4

38 2,6

93

2,5

92

tonnes

EnergyCommuter trafficBusiness transactions

DeliveriesCorporate waste


New site even more climate friendly

With its move to Pratteln, Chocolats Halba is taking another huge step towards avoiding CO2 emissions. For example, the indirect greenhouse gas emissions generated by district heating will disappear thanks to the installation of a wood-pellet heating system and the use of waste heat at the new site. 8,000 square meters of solar panels will enable the company to use renewable energy it has generated itself. The new production site is also directly connected to the rail network. Thanks to increased deliveries by rail, transport-related CO2 emissions will be significantly reduced. Also with regard to refrigerants, the move to Pratteln promises great im- provements. Apart from a few small refrigeration plants we will completely switch to neutral refrigerants ammonia and CO2.

“As Head of Engineering, I am proud to be working with Chocolats Halba to set up a new CO2-neutral chocolate factory. In so doing, we are guaranteeing future genera-tions a sustainable life. And I myself can look to the future with pleasure and optimism.” Joel Menoud, Head of Engineering, Chocolats Halba

Top-quality reforestation projects

All the operational CO2 emissions that Chocolats Halba is unable to avoid or reduce are offset within its own value chain – in a reforestation project in Honduras. This project, run by the APROSACAO cocoa farming cooper-ative, has been certified to the gold standard for emissions trading since 2015.

The “Verified Carbon Standard (VCS)” has been achieved by a reforestation project in Peru, through which Chocolats Halba customers are able to offset the CO2 emissions for the chocolate that is manufactured for them. The standards guarantee that the offsetting projects meets strict sustaina-bility criteria and that their impact on climate protection is independently verified.

In all the reforestation projects that are certified for emissions trading, Chocolats Halba works together with the specialist agency “PurProjet”. Since 2011, a total of over 300,000 trees have been planted in these three countries. These projects have been financed to a large extent by the Coop “sustainability fund”.



Trees are also being planted as part of the dynamic agroforestry projects that Chocolats Halba is establishing in Ecuador and Ghana. In these pioneering projects, small-scale farmers grow mixed crops of cocoa and other indigenous fruit trees and timber on their plots of land. However, neither of these projects is yet involved in international emissions trading.

Trees planted within our own value chain

308,956

By buying CO2-neutral products, consumers are supporting the reforestation of forests such as this one in Peru.



Less is moreThe packaging material used for chocolate contributes very little to the product’s environmental footprint. Nevertheless, Chocolats Halba reduces the amount of packaging used wherever possible, recommends more environmentally friendly packaging to customers and is on the look-out for innovative new solutions.

Many consumers look at a product’s outer covering when they are assessing how environmentally friendly it is. But extensive scientific studies show that packaging is far less harmful to the environment than the product itself. For instance, the packaging material adds just five to 10 percent to a chocolate bar’s environmental footprint.

Paper from sustainable forestry

Nevertheless, Chocolats Halba is working to environmentally optimize packaging and is constantly testing out new materials. In 2011, Chocolats Halba teamed up with an environmental consultancy institute to investigate all its packaging material using the “Environmental Impact Score” method developed by the Federal Office for the Environment (FOEN), and imple-mented the resulting findings step by step.

Since packaging has to fulfil a wide range of requirements and, most im- portantly, must prove its worth in practice, the most environmentally friendly materials are not always used. And because Chocolats Halba also produces lots of products for retail brands, it only has a limited influence on the packaging its business customers use.

To minimize the environmental impact of packaging, Chocolats Halba has – since 2012 – used bar wrappers and cardboard packaging made entirely from material manufactured from FSC-certified timber. The Forest Stewardship Council (FSC) is a non-profit organization that campaigns for sustainable forestry around the globe.

Production – Packaging



Aluminum foil with a high recycled content

Whereas a practical solution has been found for paper, the search for environmentally sound alternatives to conventional aluminum foil is proving considerably more difficult. Aluminum foil is traditionally used for chocolate wrappers because it has outstanding barrier properties and is easy to shape and reseal.

Unfortunately, aluminum production has a very large environmental foot-print. Mining the raw materials and processing them creates pollutants and toxic residues, and the manufacturing process requires a largea mount of energy.

However, aluminum can be fully recycled with very little effort. The aluminum foil that Chocolats Halba uses generally contains around 50 percent recycled aluminum, which improves the environmental footprint of the packaging considerably.

OPP instead of aluminum

OPP film is a relatively new packaging material. It is a plastic film made from polypropylene that is stretched during the manufacturing process to achieve particular properties. OPP is currently one of the most environ-mentally friendly plastics available. Chocolats Halba always makes its customers aware of these alternatives during sales and consultancy dis-cussions.

FSC-certified

100%


Chocolats Halba is also constantly scouring the market for promising innovative materials. It keeps a particularly close eye on the situation regarding renewable raw materials that could be used in sustainable packaging solutions. However, there are no satisfactory solutions availa-ble at present. For instance, film made from corn starch generates high levels of environmental pollution and competes with food production. Experience to date also shows that its composting properties do not live up to expectations.



Avoiding and purposefully recyclingAs a standard practice, Chocolats Halba avoids waste wherever possible, recycles materials and disposes residual materials correctly. With its high recycling rate, the company is not only contributing to a better environmental footprint, but also reducing its waste disposal budget.

Chocolats Halba’s sustainability strategy also includes the correct handling of waste. The company not only wants to avoid waste, but also to increase its recycling rate. In recent years, it has had an average of around three quarters of its waste recycled in the form of materials or energy. Organic waste, plastics, paper, electrical appliances, scrap metal, waste oil and waste wood are all recycled. The largest category – organic waste – is used as animal feed or compost, or goes to produce biogas.

At over 760 tonnes, the total amount of waste was somewhat higher in 2016 than in previous years. This is partly due to the move to Pratteln. For example, new machinery is delivered in wooden packaging that has to be disposed of. Cocoa shells make up the largest proportion of Halba’s waste. Some of these are delivered to the cosmetics industry, which uses them to manufacture fragrances, while some are used as animal feed.

Production – Waste & recycling


Production – Waste & recycling

Types and amounts of waste in 2016 (without effluents)

The largest proportion of Chocolats Halba’s waste consists of cocoa shells. They are used as animal feed, as well as for the production of fragrances and biogas.

Since 2013, Chocolats Halba's waste recycling rate is constantly above 75 percent.

Waste recycling

Total amount of wasteRecycled waste

Plastic recycling (5.45 t)Scrap metal (8.84 t)Waste wood (8.87 t)Sewage sludge wash /commercial waste (17.15 t)Paper recycling (81.42 t)Industrial waste (175.35 t)Organic waste. animal feed. compost. biogas production (485.58 t)

Other types of waste:Special waste detergents/solvents/developer (0.1 t) Glass (0.34 t)PET (0.89 t)

tonnes

2013 2014 2015 2016

800

700

600

500

400

300

200

100

0

65

7.5

510

.559

0.2

44

4.2

70

4.9

55

7.9

76

1.3

58

5.9


Employees

Added value thanks to appreciationCreating high-quality chocolate calls for experience, exper-tise and dedication. So – alongside quality raw materials – motivated and capable employees are the key to our success. As employees of a cooperative, Chocolats Halba’s 258 employees benefit from progressive working conditions. Relocating production to Pratteln represents a challenge for many of them. We have made every effort to support them.


What we have achievedCompanies only achieve lasting success if they have well trained, satisfied employees. So our sustainability strategy also includes guidelines relating to personnel. Chocolats Halba is well on track with its key performance indicators. However, the move to Pratteln is making it difficult to achieve some of our objectives.

Employees – Objectives

2016 objectives 2016 status 2015 status Comment Action planned

Not achieved

Employees receive at least two and manage-ment employees at least six days’ training and development per person per year.

Employees: 1Managers: 2

Employees: 1Managers: 3.5

Figures fluctuate from year to year because the survey method is inaccurate.

Improve individual recording of training days.

Achieved

At least one direct exchange takes place each year between employees and people from a cocoa-growing area. Yes Yes

Achieved

All management employees have at least one sustainabili-ty-related objective or measure in their annual objectives.

100% of employees had sustainability objectives; 90% achieved them.

Data not gathered

Achieved

At least 25% of man-agement positions are occupied by women. 35% 29%

Achieved

At least 80% of man-agement employees have successfully com-pleted a management course. Yes Yes

Not achieved

At least 75% of man-agement vacancies are filled internally. 37.5% 60%

Move is hampering internal recruitment.


Employees – Personnel structure

Jobs for all abilitiesChocolats Halba has grown slightly over the last few years. Today, 139 men and 119 women from 23 nations work for us. As an industrial company, Chocolats Halba also offers secure employment for people who have not successfully completed their education or vocational training, thereby making an important contribution to the national economy.

Chocolats Halba had a total of 258 employees – 46 percent women – at the end of 2016, with most as monthly-paid staff on permanent contracts. 217 employees and 37 management employees were paid monthly and on permanent contracts, with only four temporary employees on an hourly wage.

Women in management 2016

35%46 percent of the workforce are women. The proportion of women in management is 35 percent – the highest figure yet. Compared to the average figure for wholesale and manufacturing companies in the Coop Group, the percentage of women in lower and middle management is slightly higher at Halba. No women are represented in top management, i.e. divisional management.

G4-9, G4-10


Employees – Personnel structure

Proportion of women

WomenMen

WomanMen

Em

plo

yee

s C

EA

35 percent of management employees are women.

Man

age

me

nt

Ch

oco

lats

Hal

ba

Em

plo

yee

s C

EA

Man

age

me

nt

Ch

oco

lats

Hal

ba

47

%

46

%

35

%

53

%

54

%

65

%

47

%

29

%

53

%

71%

46

% 54

%

50

40

30

20

10

0

50

40

30

20

10

0

Average age 2016

39

41

45

40

G4-10

Until recently, Chocolats Halba has been filling four trainee positions each year. Given the current relocation of manufacturing operations, no more apprentices are being appointed at the old site. The aim is to start training apprentices again in 2019. Recruitment for food technologist and food practitioner apprenticeships will start in summer 2018. Four new trainees will then once again be appointed annually.

20162015

Age of management Age of employees


Outstanding working conditionsThe beneficial terms of employment in the Coop collective employment agreement also apply for Chocolats Halba staff. They have co-determination rights in the company, and are transparently and fairly remunerated. They also enjoy considerable benefits within the Group.

Chocolats Halba staff are subject to the Coop collective employment agreement (CEA) rather than the collective agreement for the Swiss chocolate industry. This guarantees outstanding working conditions.

An impartial commission monitors adherence to agreements, as does an arbitration tribunal, which can be called upon in the event of any disa-greement. Employees have the right to elect staff commissions for opera-tional co-determination in their work areas. Freedom of association is guaranteed.

The normal working week at Chocolats Halba averages 41 hours. Employees who care for children or partners are entitled to socially acceptable working hours. Eleven percent of our employees work part time. All employees have at least five weeks of holidays per year. Trainees and people aged 50 or over get six weeks. This is one week more than the statutory quota in each case.

Remuneration and benefits

The Coop collective employment agreement ensures a high degree of pay transparency and fair salaries. Pay is defined in detail in line with work-place requirements and responsibilities, professional experience, individual performance and labour market conditions.

In Switzerland, the reference wage for a three-year basic training period at Halba is CHF 4,100 gross. This is the guideline for a 20-year-old person who is fully able to work. The minimum monthly wage is CHF 3,820 gross. Employees are also entitled to a 13th month’s pay.

Employees – Social benefits

G4-11, G4-14


In addition to their pay, employees at Chocolats Halba enjoy numerous benefits when they buy products or obtain services from other Coop Group companies. This enables employees to benefit in many different areas of their daily lives, such as shopping for food, appliances and furniture, and also when travelling, keeping fit and obtaining banking and insurance services.

Social welfare

As is customary in Switzerland, all employees have a pension plan managed by the government’s AHV pension insurance scheme. Chocolats Halba employees also have occupational pension cover with the Coop’s CPV/CAP pension fund. The company pays two-thirds of the contributions. This means it is contributing significantly more than that which is legally required (50 percent).

Employees insured by CPV/CAP are also entitled to make use of their right to early retirement. If they have been with the company for at least five years, employees can benefit from a bridging pension. Depending on how long they have been employed by the company, mothers are entitled to maternity benefit that significantly exceeds legal require-ments. From their fourth year of employment, employees receive 16 weeks’ maternity leave on full pay. Fathers are entitled to paid paternity leave of five days and also to two weeks’ unpaid leave.




Employee trips

For Chocolats Halba, it is important that both management and employees identify with the company and live out its corporate values in their professional and private lives. To this end, the company gives a delegation of deserving employees the opportunity to visit a cocoa-producing country every year.

Employees in cocoa-growing countries

38They experience at first-hand how Halba works together with small-scale farmers and cooperatives, and what the company achieves on location. Since 2011, a total of around 30 percent of the workforce have visited our partners in Honduras, Peru, Ecuador and Ghana. They all return as am-bassadors of sustainability.

“On the staff trip to Ghana, I discovered how strenuous and challenging work is for cocoa farmers. I was fascinated to see how basic the conditions were for harvesting the cocoa beans that we then process in our high-tech factory. My impressions from the trip, and the colleagues that I got to know, remain with me to this day.” Reto Elsener, Head of Maintenance and participant in the 2016 staff trip to Ghana


Equal rights for allChocolats Halba treats all people and all employees equally. Irrespective of age, nationality, gender and sexual orientation, they have the same rights, obligations and opportunities within the company.

Equal opportunity is a principle that is enshrined in the Coop collective employment agreement: “The personal integrity of employees must be protected. Any violation of dignity through behavior, acts, speech or images must be combated and remedied. Discrimination on the basis of gender, sexual orientation, nationality or religious affiliation, or age is not permitted.”

According to the collective employment agreement, the company and its employees should act together through open communication in the work-place to create a climate of personal respect and trust which can prevent abuse, attacks, sexual harassment and bullying. The integration of foreign employees should be supported, and a climate hostile to foreigners should be prevented.

To establish whether equal treatment is ensured in terms of remuneration, Chocolats Halba carried out an in-depth analysis of employee salaries in 2014. There were no significant pay differences between people with the same qualifications and positions – either with regard to gender or nation-ality.

Employees – Opportunities


Imparting an instinctive feelTechnical expertise does not just happen. Chocolats Halba therefore supports employees in their professional development and seeks to promote as many of its own employees as possible to management positions.

Broad range of training

Due to the considerable expertise required to manufacture chocolate, employee development and training is one of Chocolats Halba’s key interests. Employees are also entitled to an annual appraisal, at which personal or technical development is an important issue.

We will only succeed if we have experienced and capable staff working at every level. Chocolats Halba therefore supports its employees with internal and external training courses that are beneficial in fulfilling their roles. The Coop Cooperative also offers a program of 350 different development and training opportunities for various career levels and specialist subjects.

To guarantee our quality standards, an internal sensory panel composed of staff from different departments meets several times a week to taste various semi-finished and end products. Employees from the purchasing and sustainability departments also travel regularly to the countries where raw materials are produced to maintain direct contact with our suppliers.

3,075 hours of training and development

In 2016, Chocolats Halba employees spent a total of 3,075 hours on train-ing and development. This is an average of 1.5 working days per person. Unfortunately the training figures vary substantially from year to year because the method used to record them is unreliable. The figures can therefore only be interpreted to a limited extent. In future, we intend to keep a closer eye on the correct recording of training and development statistics.

Employees – Training and expertise


Chocolats Halba supports employees equally in line with the Federal Act on Gender Equality. Training statistics show that, in 2016, women attended significantly fewer training and development courses than men (women: 0.4 days per year, men: 2.0 days per year). This fact is explained by the high percentage of women (88 percent) who are production e

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20 16 - Chocolats Halba · 2017. 10. 25. · century. In 1879, Rodolphe Lindt from Bern developed the conching process. This was used to refine chocolate, leading to the founding