Barry Callebaut Ag · SIX:BARN
Barry Callebaut — Corporate Update (September 2024)
24 slides from Barry Callebaut's corporate update, Sep 16, 2024
Slide 1: EUDR investor webinar
EUDR investor webinar September 16, 2024
Slide 2: Welcome
Welcome
Slide 3: Agenda
Agenda Understanding EUDR: Scope & Key Principles Forest Positive Strategy & Road to EUDR Compliance 1 - Sourcing Knowledge 2 - Due Diligence Approach 3 - Forest Protection Q and A Session 3
Slide 4: Why Cocoa is an important driver for land use change in forest landscapes
Why Cocoa is an important driver for land use change in forest landscapes ● 420 million hectares of forest worldwide have been lost between 1990 and 2020 (FAO). A significant share of that forest loss is legal (Forest Trends) ● Deforestation and forest degradation are important drivers of climate cha
Slide 5: What is the EU Deforestation Regulation in a nutshell?
What is the EU Deforestation Regulation in a nutshell? ● 7 commodities selected: cattle, cocoa, coffee, palm oil, soy, wood and rubber. For each commodity, a list of derived products falling within the scope (Annex 1 of the Regulation) ● Regulation applied to imports to the EU, products made availab
Slide 6: What does the EU Deforestation Regulation (EUDR) require?
What does the EU Deforestation Regulation (EUDR) require? From Jan. 25, companies placing cocoa on the EU market will have to comply with the below requirements PROVE ProveTHAT COCOA that Cocoa is IS COLLECT INFORMATION ENFORCE DUE DILIGENCE SYSTEMS FORMALIZE L Bean origin (GPS points for cocoa Due
Slide 7: Understanding EUDR: Scope & Key Principles
Understanding EUDR: Scope & Key Principles Forest Positive Strategy & Road to EUDR Compliance 1 - Sourcing Knowledge 2 - Due Diligence Approach 3 - Forest Protection Concluding Remarks Appendix 7
Slide 8: BC Ambition
BC Ambition As highlighted in Forever Chocolate 2.0 2025 2030 2050 Forest Positive Alignment with 1.5°C Climate Trajectory* Compliance with EU Annual reduction of GHG emissions Regulation to be aligned with the Paris Climate Agreement and Science-Based *Revision of “Carbon Positive” Deforestation-fr
Slide 9: EUDR and Deforestation Risk Levels
EUDR and Deforestation Risk Levels Main origin countries for BC cocoa will likely be ranked as “high risk for deforestation” by the EU benchmarking system, requiring BC to enforce full Due Diligence 1990-2020 2022 No single place in the world has seen In 2022, Ghana, Cameroon and Ecuador were listed
Slide 10: Implications for BC
Implications for BC Suspected or verified non-compliance after initial purchase requires immobilizing / withdrawing large volumes of products, calling for risk to be mitigated prior to purchasing Ex. Ex. case case of of non-compliance non-compliance 1. Polygon entering BC Supply Chain in Financial Ri
Slide 11: Forest Protection
Forest Protection According to the most recent and large-scale studies, forest protection is the most efficient means to reduce deforestation MAIN DRIVERS FOR MAIN LEVERS DEFORESTATION FOR DEFORESTATION REDUCTION DEMAND FOR AGRICULTURAL PROTECTED ROADS PRODUCTS AREAS In 2023, a new study (Busch, Kali
Slide 12: Our Forest Positive Strategy
Our Forest Positive Strategy Focused on risk reduction, across all geographies 1. Sourcing Knowledge Ensuring we know where to source beans from areas where risk of deforestation is low and where Forest Positive targets are reachable 2. Due Implementing a toolbox structuring a robust Diligence appro
Slide 13: 1 - Sourcing Knowledge
Forest Positive Strategy & Road to EUDR Compliance 1 - Sourcing Knowledge 2 - Due Diligence Approach 3 - Forest Protection Concluding Remarks Appendix 13
Slide 14: Forests and Deforestation
Forests and Deforestation International institutions refer to forests as a combination of physical criteria and a notion of predominant land use UN (FAO) / EU Definitions FORESTS “land spanning more than 0,5 hectares with Between 1990 and 2020 90% trees higher than 5 meters and a canopy cover of more
Slide 15: Cocoa and Deforestation
Cocoa and Deforestation Cocoa is a driver for land use change in forest landscapes. It is currently mostly grown on land converted from forests NATIVE FOREST TREES - Theobroma cacao is a forest tree, prone to be farmed in humid lowland tropical areas (currently or previously forested land) At least
Slide 16: Global Level Risk Assessment – Overview
Criteria assessed as High Medium Global Level Risk Assessment – Overview* Low BRAZIL CAMEROON CÔTE ECUADOR GHANA INDONESIA NIGERIA D’IVOIRE Country Level 1. Regulation for Forest Conversion / FPIC compliance 2. Cocoa as a minor driver for deforestation (<5%) 3. No cocoa in protected areas 4. Serious
Slide 17: 2 - Due Diligence Approach
Forest Positive Strategy & Road to EUDR Compliance 1 - Sourcing Knowledge 2 - Due Diligence Approach 3 - Forest Protection Q and A Appendix 17
Slide 18: Formalised Approach to Due Diligence
Formalised Approach to Due Diligence 1 2 3 Forest Positive Strategy Sourcing EUDR Risk Policy Sourcing Guidelines WHY: BC’s forest positive WHAT: Internal policies towards HOW: Procedures to guide EUDR risk objectives and the principles and ensuring EUDR compliance, decision assessment while ensurin
Slide 19: BC Due Diligence Approach
BC Due Diligence Approach BC developed a 3-level due diligence system with dedicated tools and processes STEP 1: STEP 2: STEP 3: COUNTRY-LEVEL SUPPLIER-LEVEL FARM-LEVEL INFORMATION COLLECTION INFORMATION COLLECTION INFORMATION COLLECTION From desk review & experts consultation From suppliers or thro
Slide 20: BC Due Diligence Tools
BC Due Diligence Tools BC relies on dedicated tools to enforce our Due Diligence Approach 1. Designed to Assess Risks 2. Designed to Mitigate Risks Country Risk Assessment Yield Control Supplier Risk Assessment Grievance Mechanism Farm Risk Assessment Stakeholder Engagement Deforestation Monitoring
Slide 21: 3 - Forest Protection
Strategy & Road to Compliance Overview 1 - Sourcing Knowledge 2 - Due Diligence Approach 3 - Forest Protection Q and A Appendix 21
Slide 22: Forest Protection
Forest Protection We will engage in Forest Protection in landscapes where cocoa is at high risk of being associated with non-compliance for EUDR 1. Efficiently Mitigating Risks We will invest in Forest Protection complementary to supply chain risk mitigation initiatives to enable “negligible risk” to
Slide 23: Concluding Remarks
Forest Positive Strategy & Road to EUDR Compliance 1 - Sourcing Knowledge 2 - Due Diligence Approach 3 - Forest Protection Concluding Remarks Appendix 23
Slide 24: Thank you
Thank you For further information or feedback, please contact: sophie_lang@barry-callebaut.com