Project
SMP25009 Advancing sustainable cocoa sourcing through a localised due diligence system - TS-04-003-001
The cocoa industry aims to understand how a localised due diligence system can support addressing forced labour in smallholder supply chains. This effort aligns with a commitment to positive impact and compliance with EU supply chain regulations, ensuring ethical sourcing and better conditions for those behind the chocolate we enjoy.
The global cocoa industry continues to face sustainability challenges, while many companies operating in cocoa value chains still lack a comprehensive understanding of these risks, making it difficult to implement effective solutions.
With the introduction of EU supply chain legislation- specifically the Corporate Sustainability Due Diligence Directive (CSDDD) and the Forced Labour Regulation (FLR) - companies operating in the EU, along with their direct and indirect suppliers, must take greater responsibility for addressing social and environmental impacts across their value chains. These regulations require businesses to develop due diligence systems that identify, assess, monitor, and mitigate risks such as forced labour. The FLR, in particular, mandates companies to establish robust mechanisms that prevent and remediate labour exploitation.
To ensure compliance and build a resilient and competitive cocoa sector, companies cannot act alone. They must collaborate with various stakeholders, including value chain actors such as small and medium-sized enterprises (SMEs), producer organizations, and intermediaries, as well as non-value chain actors like civil society organizations (CSOs), NGOs, embassies, and local governments. A shared approach strengthens the effectiveness of due diligence systems, enhances impact, and helps create sustainable solutions for tackling forced labour.
In this context, this project brings together three companies in the cocoa value chain, two NGOs and an impact measurement company in a pre-competitive collaboration to design and test effective due diligence systems tailored to smallholder cocoa production in Cameroon. The project focuses on three objectives:
- Assessing the feasibility of a localised due diligence system to monitor and address forced labour in smallholder supply chains.
- Exploring innovative international cooperation between value chain and non-value chain actors, with a key focus on the role of SMEs and non-value chain actors, such as CSOs, NGOs, embassies, and local governments.
- Developing a roadmap for a follow-up project.