Nestlé, Mars & More: Forming Sustainable Cocoa Supply Chains

According to Fairtrade, cocoa farming is linked with low income, child labour, gender equality and deforestation. 

“Up to 58% of cocoa farmers in Côte d’Ivoire and Ghana are living in extreme poverty, which means they make less than US$2.15 per day,” says the Rainforest Alliance.

To help tackle these prominent issues, Nestlé, Lindt & Sprüngli, Mars Incorporated, Mondelēz International and The Hershey Company are partnering for the TogetherCocoa Foundation in Geneva, Switzerland.

Partnering for sustainable cocoa

The European Union has found that 60% of Côte d’Ivoire’s cocoa production, or 37% of global cocoa production, is concentrated in the western regions of the country and that the cocoa procurement market in Ghana is extremely concentrated.

By partnering, the foundation is aiming to accelerate industry-wide collaboration in order to strengthen the resilience of cocoa supply chains.

The plan is to help close the living income gap experienced by farming households in Côte d’Ivoire and Ghana.

According to the Rainforest Alliance, “Approximately 1.5 million children are engaged in child labor in cocoa production in Côte d’Ivoire and Ghana alone.”

As the foundation progresses, it aims to continue engaging with both Côte d’Ivoire and Ghana’s governments as well as personal supply chains and broader sectors.

All sustainability, net zero and sustainable supply chain leaders should attend:

• Sustainability LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Sustainability LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Procurement & Supply Chain LIVE, these events bring together CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

“We believe that making a large-scale, long-term positive impact on cocoa farming families in Côte d’Ivoire and Ghana is only possible through close collaboration with other industry players and the local governments,” writes Nestlé.

Nestlé’s cocoa plan

The Nestlé Cocoa Plan (NCP) highlights how sustainability is being embedded across the cocoa supply chain, from farm to finished product. 

Launched in 2009, the program works with more than 180,000 farmers in 11 origin countries, covering nearly 298,000 tons of cocoa in 2024.

The NCP is structured around three pillars: 

• Better farming
• Better lives
• Better cocoa

Through training in good agricultural practices, agroforestry and regenerative agriculture, farmers are supported to increase yields while protecting biodiversity, soil health and water resources. 

Social sustainability is strengthened through Village Savings and Loans Associations and the Child Labor Monitoring and Remediation System developed with the International Cocoa Initiative, helping address child labor risks and improve community well-being. 

Traceability models such as Mass Balance and Segregated sourcing, often certified by the Rainforest Alliance, help to ensure that cocoa volumes are verified and transparently tracked, with a goal of sourcing 100% through the program by 2025. 

Together, these initiatives demonstrate how sustainable supply chain management can integrate environmental stewardship, social responsibility, traceability and innovation to build long-term resilience in the global cocoa sector.

Cocoa for generations 

For more than 100 years, Mars has been using cocoa from around the world to make its well-known products.

From 2018 to 2028, Mars has pledged to provide US$1bn to support programmes that positively impact the cocoa-growing communities and environment.

The company’s Responsibly Sources Cocoa programme aims to promote a positive impact on the cocoa supply chain, working with suppliers, certifiers and stakeholders for sustainable and responsible sourcing.

“Our (Mars') approach is to help contribute to the development of a more modern, inclusive and sustainable cocoa ecosystem, ” says Harper McConnell, Chief Growth and Impact Officer for the Rainforest Alliance and former Global Vice President, Cocoa Sustainability at Mars.

Under these specifications, Mars’ suppliers must not only understand the risks within their supply chains but also actively mitigate these risks.  

Through programs like the Women for Change Village Savings and Loans Associations (VSLAs), more than 100,000 women have been supported to overcome financial barriers, fostering economic independence and resilience within cocoa-growing communities. 

Income-boosting initiatives target farmers directly, with 15,000 cocoa farmers benefiting from test-and-learn approaches designed to improve yields and livelihoods. 

According to the Rainforest Alliance, “Côte d’Ivoire and Ghana, which together produce nearly two-thirds of the world’s cocoa, lost 25% and 8% (respectively) of primary forest between 2002 and 2019.”

Biodiversity is being supported through the distribution of more than 1.8 million non-cocoa trees for shade and habitat creation, while forest protection efforts have reached more than 99,000 farmers in Côte d’Ivoire and Ghana, alongside risk assessments covering 718,000 hectares globally. 

Together, these initiatives illustrate how integrating social empowerment, education, and ecosystem preservation can create a more sustainable, resilient cocoa supply chain.