ofi reaches cocoa GHG reduction milestone ahead of target
Olam Food Ingredients (ofi) has achieved a 12% reduction in cocoa greenhouse gas (GHG) natural capital costs per tonne of output against its 2018 baseline, surpassing its 2024 milestone target of 10%. The global food and beverage ingredients supplier also reported that 155,000 cocoa farmers – representing 45% of farmers in its global sustainability programmes – are now earning a living income, reaching its 2030 target ahead of schedule.
© ofi
Progress driven by agroforestry and market dynamics
The findings, detailed in ofi’s Cocoa Compass Impact Report (2024), mark the halfway point between the company’s 2018 baseline and its 2030 sustainability targets. The GHG reduction was achieved through decreased land-use change emissions and carbon sequestration from cocoa and forest trees planted as part of agroforestry activities. To date, ofi has distributed 9.8 million trees cumulatively through these programmes.
The significant progress in living income was largely attributed to sharp increases in cocoa market prices during 2024, alongside the company’s livelihood support interventions. ofi provided 320,000 farmers with livelihood support annually to enhance resilience against market and climate volatility.
“We’re continuing to invest in farm-level engagement and ingredient innovation by leveraging the scale of our integrated business model,” said Andrew Brooks, ofi’s Global Head of Cocoa Sustainability. “This enables us to de-risk supply chains, and help deliver more sustainable, high-quality cocoa ingredients and tailored food solutions to our customers that meet evolving consumer demands.”
Comprehensive sustainability interventions
The 2024 impact report documented several key achievements across ofi’s cocoa supply chain operations. The company trained 257,000 farmers annually in Good Agricultural Practices, whilst maintaining six active landscape partnerships. Additionally, 40,000 children received education support through the programme.
Brooks emphasised the contextual nature of the living income metric, noting that market price fluctuations significantly influence farmer earnings. “We’re using living income as a valuable contextual indicator, serving as a north star to gauge economic status and guide our interventions,” he explained.
Industry collaboration required for future challenges
Looking ahead, Brooks highlighted the need for collective industry action to address systemic challenges affecting cocoa production, particularly in West Africa. “The industry, including governments and NGOs, need to rally together to rethink how we’re tackling challenges like crop disease, deforestation, particularly in West Africa,” he said. “With cocoa crop reductions expected, and demand destruction already having an impact on product formulations, we need to find collective solution that is good for cocoa farmers, good for food and beverage processors and manufacturers, and good for consumers as well.”
The company’s sustainability progress builds upon more than two decades of impact across its direct cocoa sourcing countries in Africa, South America, and Asia Pacific regions. ofi’s 2030 sustainability targets include a 30% reduction in GHG natural capital costs and maintaining 150,000 farmers earning a living income.
The natural capital accounting framework employed by ofi adopts a holistic systems approach to measuring the value of nature and ecosystem services, integrating these values into corporate reporting at multiple scales from national to product level.
- For more information, visit: ofi.com/en-us/20-year-anniversary-of-cocoa-sustainability-at-ofi
