Nestlé, Mars & More: Partnering to Create Sustainable Cocoa

The global food and drink sector is confronting a critical challenge at the heart of chocolate production: the cocoa supply chain remains fraught with poverty, labour exploitation, inequality and environmental degradation.

According to Fairtrade, these interconnected issues threaten both the sustainability of cocoa farming and the future of chocolate manufacturing.

“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.

Nestlé, Lindt & Sprüngli, Mars Incorporated, Mondelēz International and The Hershey Company have formed the TogetherCocoa Foundation in Geneva, Switzerland, marking a significant shift in how the food industry addresses supply chain challenges.

Industry collaboration for supply chains

The partnership represents a recognition that individual corporate efforts may not be sufficient to tackle systemic issues affecting cocoa production.

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.

The foundation's primary objective centres on accelerating industry-wide collaboration to strengthen cocoa supply chain resilience.

For food and drink companies dependent on stable cocoa supplies, closing the living income gap for farming households in Côte d'Ivoire and Ghana has become both an ethical imperative and a business necessity.

Child labour remains a persistent concern for the sector, with the Rainforest Alliance estimating that 1.5 million children are engaged in child labour within cocoa production across Côte d'Ivoire and Ghana alone.

As the foundation develops, it aims to maintain engagement with both governments and individual supply chains across the broader chocolate manufacturing sector.

Embedding sustainability in chocolate production

The Nestlé Cocoa Plan demonstrates how one major food manufacturer is integrating sustainability throughout its cocoa supply chain.

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.”

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

The initiative operates through three pillars: better farming, better lives and better cocoa.

Farmers receive training in good agricultural practices, agroforestry and regenerative agriculture, supporting increased yields while protecting biodiversity, soil health and water resources.

Social sustainability efforts include Village Savings and Loans Associations and the Child Labor Monitoring and Remediation System, developed with the International Cocoa Initiative.

Traceability models such as Mass Balance and Segregated sourcing, often certified by the Rainforest Alliance, aim to ensure cocoa volumes are verified and transparently tracked.

Nestlé has set a goal of sourcing 100% of its cocoa through the programme by 2025.

Biodiversity initiatives include distributing more than 1.8 million non-cocoa trees for shade and habitat creation.

Forest protection efforts have reached more than 99,000 farmers in Côte d'Ivoire and Ghana, with risk assessments covering 718,000 hectares globally.

Long-term investment in cocoa communities

Mars has been sourcing cocoa globally for more than 100 years to produce its confectionery range.

The company has committed US$1bn over a ten-year period to support programmes benefiting cocoa-growing communities and environmental protection.

“Our 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.

The Responsibly Sourced Cocoa programme focuses on promoting positive impacts across the cocoa supply chain, working with suppliers, certifiers and stakeholders to ensure sustainable and responsible sourcing practices.

Mars requires its suppliers to understand supply chain risks and actively work to mitigate them.

The Women for Change Village Savings and Loans Associations have supported more than 100,000 women, helping to overcome financial barriers and foster economic independence within cocoa-growing communities.

Income-boosting initiatives have reached 15,000 cocoa farmers through approaches designed to improve yields and livelihoods.

For the food and drink industry, these combined efforts could signal a fundamental shift towards supply chains that balance commercial needs with social empowerment, education and ecosystem preservation.