Kuapa Kokoo Action Plan May, 2020 · 2020. 5. 29. · IV. OVERVIEW OF KUAPA KOOKO’S ACTION PLAN Kuapa Kokoo’s Action Plan for CFI for the -2022) is a key component of our forest

Kuapa Kokoo Action Plan Narrative

May, 2020


A message from the Managing Director, Kuapa Kokoo Limited

Lack of knowledge on the benefits of keeping trees for shade in cocoa farms have resulted in the loss of huge hectares of tropical forests each year. Environmentally friendly practices; one of the major hall marks of Kuapa Kokoo can really boost cocoa production. Farming Systems that promotes sustainable production, environmental protection, avoidance of deforestation, improvement of sustainable soil fertility, prevention and avoidance of child labour and improved livelihood and strategic partnership has brought Kuapa Kokoo this far.

It is for these and many other reasons that we see our collaboration with the Cocoa and Forest Initiative (CFI) as a great means to an

end; deepening our quest and commitment to good environmental practices and sustainability of humanity at large.

On behalf of the Kuapa Kokoo family (Members, Executive council and management) together with Millennium Promise Alliance (MPA) our Corporate affairs managers, We pledge our unflinching support to CFI and its ideals and therefore call on all other partners who share the vision of forest protection and restoration, sustainable production, improved livelihoods, social and community engagements, to join us in making the world a better place.

We will continue to do our part to protect biodiversity and the environment with trust in dynamic agroforestry systems. We know that our farmers’ lives and the growth of our organization depend on how we protect the environment where we produce the cocoa beans.

The time to act and live our words on environmental and sustainable production is now. We call on industry players to support this laudable initiative.

Mr. Samuel Adimado Managing Director, Kuapa Kokoo Limited.


May, 2020


Context: The public disclosure of the aggregated and individual initial action plans in March will be a very important strategic communication opportunity to bring to life industry’s delivery of CFI commitments. WCF will be publishing the two aggregated initial action plans (Ghana and CDI), and companies will subsequently release their individual initial action plans between March 5 and 29. We believe it would be very useful for each company to provide a brief narrative to accompany and explain the initial action plan. Purpose: This document will serve as a template for the narratives that companies will produce when releasing their initial action plans. The narrative will explain the company’s overall vision and approach to implementing CFI, highlight the most important measures it is focusing on, and provide concrete examples of activities on the ground. This template will ensure alignment across the narratives, so please fill each section below as indicated – however, the specific content of the narrative is up to each company. Section 1 and II have been filled with pre-approved CFI language.

I. BOLD PUBLIC-PRIVATE ACTION: THE

COCOA & FORESTS INITIATIVE The governments of Côte d’Ivoire and Ghana and the world’s leading cocoa and chocolate companies signed landmark agreements in November 2017 to end deforestation and promote forest restoration and protection in the cocoa supply chain.

This new public-private partnership – called the Cocoa & Forests Initiative (CFI) – has been organized by the World Cocoa Foundation (WCF), IDH - the Sustainable Trade Initiative, and The Prince of Wales’s International Sustainability Unit (ISU). The Prince of Wales launched CFI in March 2017 in London. The Frameworks for Action for Côte d’Ivoire and Ghana define core commitments, verifiable actions, and time bound targets required for a deforestation-free and forest-positive supply chain. The Governments of Côte d’Ivoire and Ghana play a critical leadership role in establishing the national strategy, enabling policy environment, and governance structure for CFI implementation. They ensure that CFI is linked to similar initiatives with other commodities, and fully aligned with the national REDD+ Strategy and other relevant national strategies and plans. They provide key operational guidance, and baseline economic, environmental, and social data, to help companies identify and plan the most effective and efficient private investment activities for CFI.


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The Governments have prepared comprehensive national implementation plans (Côte d’Ivoire, Ghana) that outline key public sector priorities, actions and timelines, following extensive consultation with all stakeholders. During the first year of CFI, the Governments have launched work on the key building blocks for successful CFI implementation, including important revisions to the legal framework for sustainable forest management, preparation of up-to-date boundary maps of protected areas, and collection of socio-economic and land use data for the priority investment areas. Thirty-three companies1, accounting for about 85% of global cocoa usage, have now joined CFI. Each company has agreed to prepare a detailed individual action plan that spells out the specific actions it will take in 2018-2022 to deliver the commitments set out in the Framework. Each company will decide for itself how to best support the achievement of the Framework objectives, based on their role in the supply chain, their corporate strategic priorities, and their cocoa sustainability goals. Almost all companies have now completed initial action plans. These initial plans will be updated and finalized in 2019 after the governments have completed the ongoing legal and operational policy changes, the mapping of protected areas, baseline data collection, and other building blocks needed for full investment programming.2

1 Arysta Callivoire, Barry Callebaut, Blommer Chocolate Company, Cargill Cocoa and Chocolate, Cémoi, Chocolats Halba, Cocoanect, Cococo Chocolatiers, ECOM Group, Fazer, Ferrero, General Mills Inc., Godiva Chocolatier Inc., Guittard Chocolate Company, The Hershey Company, Indcresa, Lindt & Sprüngli Group, Marks & Spencer Food, Mars Wrigley Confectionery, Meiji Co. Ltd.,

CFI has been supported by several global development partners, including the United Kingdom’s Department for International Development, the Dutch Ministry of Foreign Affairs, the German Federal Ministry of Economic Cooperation and Development, the World Bank, the International Finance Corporation, the Global Environment Facility, and the Green Commodities Program of the United Nations Development Program. CFI is coordinated closely with a wide range of global and local environmental organizations and partnerships, including the Tropical Forest Alliance 2020, Amsterdam Declaration Partnership, Partnerships for Forests, the Rainforest Alliance, and World Resources Institute.

II. WHAT ARE THE KEY COMMITMENTS IN CFI?

The Frameworks are structured around three critical themes of (1) forest protection and restoration, (2) sustainable production and farmers’ livelihoods, and (3) community engagement and social inclusion. The first priority is the protection and restoration of forests that have been degraded. To this end, the governments and companies have pledged no further conversion of forest land for cocoa

Mondelēz International, Nestlé, Olam Cocoa, PBC Limited, Sainsbury’s, SIAT, Tesco, Toms Group, Touton, Tree Global, Unilever, Valrhona, and J.H. Whittaker & Sons 2 The actions pending further information are marked “to be determined” in the initial company action plans


May, 2020


production, and have committed to the phased elimination of illegal cocoa production and sourcing in protected areas. Both countries are introducing a differentiated approach for improved management of forest reserves, based on the level of degradation of forests. Up-to-date maps on forest cover and land-use, socio-economic data on cocoa farmers, and detailed operational guidelines covering forest management and land-use are being developed and will be publicly disclosed. To ensure effective implementation and monitoring of these commitments, companies have pledged to develop verifiable monitoring systems for traceability from farm to the first purchase point for their own purchases of cocoa, and to work with governments to ensure an effective national framework for traceability encompassing all traders in the supply chain. The next critical priority is sustainable agricultural production and increased farmer incomes. These are essential pre-requisites for reducing pressure for agricultural encroachment into forests and strengthening the resilience of cocoa farmers to climate change. The governments and companies have agreed to accelerate investment in long-term productivity of cocoa in order to grow “more cocoa on less land.” Key actions include: provision of improved planting materials, training in good agricultural practices, soil fertility, land tenure reform, and capacity building of farmers’ organizations. Sustainable livelihoods and

income diversification for cocoa farmers will be accelerated through food crop diversification, agricultural inter-cropping, and development of mixed agro-forestry systems and shade-grown cocoa. The final area of focus is strong community engagement and social inclusion, with a particular focus on women and youth. The governments and companies have committed to full and effective consultation and participation of cocoa farmers in the design and implementation of key actions, and promotion of community-based management models for forest protection and restoration. The governments will assess and mitigate the social impacts and risks of any proposed land-use changes on affected communities. The set of public-private actions represent unprecedented commitments on forest protection and restoration, and sustainable cocoa production and farmer livelihoods. These combined actions, which are aligned with the Paris Climate Agreement, will play a crucial role in sequestering carbon stocks and thereby addressing global and local climate change.


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III. KUAPA KOOKO COOPERATIVE COCOA FARMERS AND MAKETING UNION LIMITED: OVERALL VISION FOR THE COCOA & FORESTS INITIATIVE

Kuapa Kokoo Cooperative Cocoa Farmers and Marketing Union Limited (KKFU) The vision of Kuapa Kokoo Farmers union (KKFU) is to become a leading, caring, efficient and the most globally recognized cooperative in cocoa production and marketing industry that is most valued and respected globally. In pursuit of this vision, one of KKFU’s core values is to demonstrate leadership in environmental protection and sustainability, safety, and social responsibility. Kuapa Kokoo vision for the cocoa and forest initiative is to ensure that our production, and distribution activities does not negatively impact on Biodiversity, forest and protected lands in general. That our products and production processes of our members will conform to globally acceptable standards as the ‘preferred choice Cocoa farmer organization and ensure full traceability of our products and services.

IV. OVERVIEW OF KUAPA KOOKO’S ACTION PLAN

Kuapa Kokoo’s Action Plan for CFI for the next three years (2020-2022) is a key component of our forest restoration, sustainable productivity development, and social inclusion goals for our farmers. It aims to ensure that all our members’ farms are located outside protected forests and that cocoa agroforestry practices is practiced by our members. To this end Kuapa Plans to Map all its members farms to guarantee our supplies are traceable. We will contribute to the intensification of production by suppling improved cocoa seedling and timber trees for planting. Kuapa Kokoo’s overall goal of supporting its members adopt the planting of trees to reduce carbon emission and protect cocoa farms over the years will be deepened by the core objective of CFI which is to prevent deforestation and ensure forest protection and restoration, sustainable production and farmers’ livelihoods, and community engagement and social inclusion coincidentally are the main pillars of Kuapa Kokoo. It is for these objectives that Kuapa Kokoo see CFI’s objective of no further conversion of any forest land (as defined under national regulations and using methodologies such as High Carbon Stock (HCS) and High Conservation Value (HCV) approach) for cocoa production as an important initiative and have thus prioritize our action plan to achieving this goals. Kuapa Kokoo’s Action Plan also aligns with Ghana’s National Implementation Plan as a way of supporting and contributing to what the nation has decided to do to halt deforestation and promote sustainable production.


May, 2020


Kuapa Kokoo has since 2019 signed unto the CFI initiative as the only farmer based cooperative organization who shares the objectives and vision of CFI. Since then our organization has engaged both the national and global CFI governance structures in several ways. Some of these ways include regular interaction with the CFI Secretariat to benefit from engagement with government and support for technical activities. Priority has been given to participation and engagement in CFI activities locally and international through meetings, workshops and expert groupings to undertake specialized technical activities. We have also been part of CFI governance at the national level and we will continue to engage the secretariat even now and in the future. The company hopes to finalize this initial action plan when certain dependencies from government are finalized such as operational guidance on land restoration in degraded forests, social and environmental safeguards and boundary maps for admitted farms. This initial plan will be finalized once the government of Ghana provides this background information. Once the action plan is finalized, the company will determine the total investment that the company will make within the duration of the action plan to be made. As an important partner, the company’s aggregate action plan has been shared with the government of Ghana before being published to ensure alignment with national activities.

V. PRIMARY ACTIVITIES AND INVESTMENTS

The most important measure to be undertaken by Kuapa Kokoo under the CFI initiative include:

Ø The mapping and geo tracing of all our members’ farms to ensure No KKFU member produce cocoa within protected forest.

Ø Distribution for planting of 600,000 tree seedlings to reduce carbon emission and to promote sustainable cocoa production.

Ø Promote sustainable livelihoods and income diversification for cocoa farmers, including crop diversification, agricultural inter-cropping, off farm activities, and other income generating activities designed to boost and diversify household income.

Ø Kuapa will support community-based natural resource management (CBNRM) programs for forest restoration/protection in cocoa communities through the Community Resource Management Area (CREMA) and Hotspot Intervention Area (HIA) concepts in our operation areas.


May, 2020


ANNEX Find below some language and explanations for specific activities that you may want to use for Section IV. Pillar 1: Forest Protection and Restoration

Cocoa & Forests Initiative Commitment Ghana: There will be no further conversion of any forest land (as defined under national regulations and using methodologies such as High Carbon Stock (HCS) and High Conservation Value (HCV) approach) for cocoa production.

Kuapa Kokoo Action 1.2: Conduct deforestation risk assessments in all direct sourcing areas We define deforestation risk assessment as: A geospatial risk assessment combining satellite imagery and other geographical information to identify where deforestation is or is likely to occur based on land cover and recent land cover changes. This risk assessment is useful for commodities with a geographically defined supply base around the first processing point. In cocoa, the processing point (or first aggregator) could be defined by the location of farmer organizations, communities, or other first purchase points.

We are working towards a harmonized approached to identify where deforestation is or is likely to occur based on land cover and recent land cover changes. Companies are piloting different methodologies to test deforestation assessments. Explain the

process you have taken to determine your risk assessment.

CFI Commitment Ghana: There will be no production and sourcing of cocoa from National Parks, Wildlife Sanctuaries, and Wildlife Resource Reserves, except from farms with existing legal status, as of 1 January 2018.

Kuapa Kokoo’s Action Ghana: 2.1 All farms found in protected areas will be reported to the Ministry of Land and Natural Resources

Since January 1, 2018, companies have put in place actions to eliminate all sourcing of cocoa from National Parks and Reserves (CdI), Wildlife Sanctuaries and Wildlife Resource Reserves (GH). Even though social and environmental safeguards have been adapted, its operationalization to ensure that there is minimal impact on the farmers and communities producing cocoa illegally in the protected areas (expected December 2018) has delayed. Therefore, this activity is to be determined until the government of Ghana adopted the appropriate social and environmental safeguards (expected April 2019).

CFI Commitment Ghana: A differentiated approach for Forest Reserves will be adopted by Government by 31 December 2018. It will be based on the following categories and will specify the number of hectares, timeline, roles and responsibilities, budget and fund-mobilization strategy for each category:


May, 2020


Kuapa Kokoo Action: Ghana: 3.1 End sourcing from all farms identified within Category 1 Forest Reserve areas by 31 December 2019. 3.2 Support farmers in Category 2 Forest Reserve areas in their restoration and reforestation programs To be determined until the government of Ghana provides updated maps and guidelines for the differentiated approaches (e.g. cocoa agroforestry) in Forest Reserves. This process is still ongoing, and companies will update this information in 2020 once this information is available. CFI Commitment Ghana: Public-private collaboration to mobilize new sources of funding for forest protection and restoration, and to incentivize farmers’ adoption of environmentally sustainable cocoa production will be developed. Key opportunities include inter alia, support for innovative financial mechanisms (such as payments for environmental services, carbon finance, and public-private trust funds), implementation of MTS and phased approach to land-use change, alternative livelihoods for cocoa farmers affected by land-use change, development of shade-grown cocoa systems, climate-smart cocoa production.

Kuapa Kokoo Actions: Ghana: 8.1/9.1 Mobilize finance for forest protection and restoration such as: new financing mechanisms (to be specified), contribution to conservation funds, and

development of payments for environmental services (PES) schemes To be determined until companies receive more information the framework for the conservation fund and additional information (e.g. updated maps) allowing them to determine overall financial investment towards CFI. CFI Commitment Ghana: Public-private collaboration, in partnership with local and global experts, will be enhanced to identify good practices and technical guidance for forest conservation and restoration, shade grown cocoa, and MTS in Forest Reserves. Kuapa Kokoo Actions: Ghana: 10.1 Support distribution and planting of multi-purpose trees for on-farm restoration via mixed agroforestry Promoting cocoa agroforestry systems is a key strategy for forest protection and restoration, improving cocoa productivity and farm level diversification and income generation. However, there is no single model for a cocoa agroforestry system and tree selection, farm architecture, etc. The system needs to take into consideration the local agronomic, economic, social and environmental conditions, needs and opportunities. Companies are therefore piloting different models. Kuapa Kokoo as part of our strategies have over the years been distributing tree seedlings to our farmers to either plat within


May, 2020


their cocoa farms or on bare lands. This strategy under CFI will be deepened and extended to all our operational areas. We have also together with our partners undertaking a dynamic agroforestry system which incorporate both timber, fruit trees, and biomass plant alongside other food crops on cocoa farms with no use of inorganic fertilizers and pesticide. This will at the end create a cocoa agroforestry ecosystem which will be biodiverse and sustainable.

Explain further the steps you will take to promote agroforestry systems. Kuapa Kokoo Action: 10.1 Support the creation of the public-private forest conservation and rehabilitation fund. To be determined until the government established the framework for a forest conservation and rehabilitation fund. This is expected by May 2019. PILLAR 2: PRODUCTIVITY AND LIVELIHOODS Kuapa Kokoo Action Plan: 11.1 Distribute 2,000,000 improved cocoa planting material 11.4 Support 1,800 ha cocoa farm rehabilitation

CFI Commitment Ghana: Improve supply chain mapping, with 100% of cocoa sourcing traceable from farm to first purchase point by 31 December 2019. Private sector and Government will develop a joint action plan that maps out key principles, steps, and milestones to achieve this step, encompassing all national and international traders, by 30 June 2018. Government will adopt regulations that require verifiable traceability from farm to first purchase point by end-2019, and ensure compliance by national and international traders thereafter. Signatory companies are putting in place verifiable monitoring systems for traceability from farm to first purchase point, operational policies and control systems that effectively monitor the associated risks, including high quality verification, by 31 December 2019. Kuapa Kokoo Actions: Ghana: 15.2 Implement traceability system to farm level in 100% of supply chain by end-2019. Kuapa Kokoo like other CFI signatories are partially contingent on government establishing policies and systems for 100% cocoa traceability from farm to first purchase point. Therefore, Kuapa Kokoo may update action plans once the traceability systems are in place. PILLAR 3: SOCIAL INCLUSION Kuapa Kokoo will engage its 57 operational societies and communities with consultation sessions on the implementation of the forest protection and restoration, sustainable production and livelihoods, social and community engagement. We intend to engage at least 100 participants per society


May, 2020


and 20 community (67 male/33 female & <40yrs) Kuapa will support community-based natural resource management (CBNRM) programs for forest restoration/protection in one cocoa community within the Sankore enclave (where Sankore is the Center with some communities within Bibiani Anwiaso districts. A total of 400ha of cocoa farms will be developed into dynamic Cocoa agroforestry. The gender Unity of Kuapa is facilitating the income diversification for women through the planting of yam and the young women in Cocoa project.


May, 2020


Action Plan – Ghana 2018-2022

F4A Core Commitment CdI - Framework Language Company Actions Target Indicators # Risks & Assumptions Timeline

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F4A - Community Engagement and Social Inclusion Commitments

16. Full and effective information sharing, consultation, and informed participation of cocoa farmers and their communities who are affected by proposed land-use changes under the Framework.

16.1 Organize cocoa community consultations on the implementation of the Frameworks for Action

# of communities with consultation sessions and # of participants per community (male/female & <40yrs)

57 primary societies 2022 X

17. Promote community-based management models for forest protection and restoration, including engagement of local communities and farmers in awareness raising campaigns on the status of protected areas and the critical role that forest plays in climate regulation.

17.1 Establish and/or support community-based natural resource management (CBNRM) programs for forest restoration/protection in cocoa communities

# of cocoa communities with active forest restoration and protection program

57 primary societies

Company actions are partly subject to the Government approval of the Community Resource Management Area (CREMA) mechanism

2022

# of hectares under CBNRM 4,000 ha


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18. Development of action plans for forest protection and restoration, and sustainable agricultural intensification that are gender and youth sensitive.

18.1 Develop forest protection & restoration and agriculture intensification action plans that are gender and youth sensitive

# of cocoa communities with gender-focused programs

50 Communities 2022 X

# of cocoa communities with youth-focused programs

50 Communities 2022 X

19. For the approach in Forest Reserves, Government will assess and mitigate the social impacts and risks of proposed land-use changes on affected cocoa farmers and their communities, and ensure provision of alternative livelihoods and restoration of standard of living of affected parties, in line with global standards.

YES

X

20. Government will prepare operational guidelines covering resettlement and livelihood restoration of any affected parties by 30 June 2018, with input as relevant from private sector, civil society organizations, and other stakeholders, in line with global standards.

20.1 Support the development of operational guidelines on resettlement and livelihood restoration

TBD YES X

Total $

Documents

Kuapa Kokoo Action Plan May, 2020 · 2020. 5. 29. · IV. OVERVIEW OF KUAPA KOOKO’S ACTION PLAN Kuapa Kokoo’s Action Plan for CFI for the -2022) is a key component of our forest