Sustainable Procurement of Cocoa

The Fuji Oil Group’s industrial chocolate business produces chocolate products using cocoa-derived raw materials such as cocoa beans, cocoa liquor,^*1 cocoa butter,^*2 and cocoa powder^*3 as key raw materials. Smallholder farmers make up the majority of producers in Côte d’Ivoire and Ghana, the two major cocoa-producing countries, giving rise to a complex web of social and environmental issues. These include poverty and, linked to this, the challenges of children’s education and child labor as well as low agricultural productivity, deforestation and climate change impacts.
Addressing these issues requires a multifaceted and integrated approach, which includes environmental restoration, diversification of income to help farmers become more resilient, empowering women and ensuring children’s education.
We recognize that it is our role and responsibility to respect human rights, conserve natural resources, help farmers lift themselves out of poverty, and build more resilient cocoa supply chains that ensure the future of cocoa production.

• *1 Made by removing the shells of cocoa beans and grinding the nibs (inside the cocoa beans) into a smooth, liquid state
• *2 Vegetable oil obtained by pressing cocoa beans
• *3 Dry powder made by grinding what is left after the cocoa butter has been removed from the cocoa beans

Traceability

Improving traceability across the supply chain is critical to addressing social and environmental issues in the cocoa supply chain.
Every year, our subsidiary Blommer Chocolate Company (U.S.) publishes a map of cocoa cooperatives in its direct supply chain^*1 on its website.^*2 Cooperatives and farmer associations that supply raw materials to Blommer also undergo annual audits by certification bodies or third-party auditors.
Blommer’s sustainability team working in Côte d’Ivoire plays a crucial role in ensuring compliance and assessing the effectiveness of measures by overseeing local programs. The team’s findings help to verify data reported by suppliers and enhance the overall integrity of programs.

• *1 Supply chain where cocoa beans are purchased directly from farmers or agricultural cooperatives, or where the source is traceable through intermediaries.

• *2 Sustainable Origins™ Strategy

  https://www.blommer.com/sustainability/strategy/traceability.php

Child protection(location/scope: West Africa (Côte d’Ivoire, Ghana))GRI: 408-1

Our Group is working to end child labor — a significant human rights issue in the cocoa industry.
In major cocoa-producing countries, farmers are facing challenges including poverty, child labor, lack of community infrastructure such as schools and health centers, shortage of farm workers, and lack of capital to invest in improving agricultural technology, each of which has to be addressed appropriately. In light of these issues, we are working to create an environment to prevent child labor and to develop a mechanism to remediate any violations of children’s rights in the supply chain.
Specifically, in order to identify the root causes of child labor and raise awareness of potential violations, community agents and farmer groups are working together to set up the Child Labor Monitoring and Remediation System (CLMRS) at all communities in our direct cocoa supply chain in West Africa. Community agents are trained in child protection and how to conduct household surveys and unannounced farm visits. They identify children already affected or at risk of child labor, then suggest preventative or corrective actions at household or community level.
We are also working to prevent child labor by strengthening communities, including supporting farmers with pruning work, empowering women via Village Savings and Loan Associations (VSLAs), and environmental conservation.^*1
We also work with other stakeholders in the cocoa industry on industry-wide initiatives in Côte d’Ivoire. In 2022, the Group joined the Child Learning and Education Facility (CLEF)^*2 and the Early Learning and Nutrition Facility (ELAN). CLEF is a coalition that aims to reach 5 million children and 10 million parents in cocoa-growing regions in the country, working to improve access to quality primary education by constructing school infrastructure, training teachers, and engaging parents in their children’s learning. The ELAN Initiative aims to provide quality services and training in early childhood development and nutrition to 1.3 million children below the age of five and their caregivers. Through these initiatives, we are helping to improve educational environments and support children’s development.

• *1 See the section “Conserving and restoring forests” below.
  Conserving and restoring forests

• *2 Child Learning and Education Facility (CLEF) > OUR MISSION

  https://www.clefcoalition.com/en/our-mission/

Figure: CLMRS (Child Labor Monitoring and Remediation System)

Image links to a PDF file（173KB）

Supporting cocoa farmers

Our Group directly supports cocoa farms in Côte d’Ivoire (since 2009), Ghana (since 2014) and Ecuador (since 2013). By providing tools and training based on established agricultural methods, we encourage farmers to adopt Good Agricultural Practices (GAP) and climate-smart cocoa practices.^*
Pruning is a particularly important method in GAP, so we launched service groups focused on pruning at the community level in order to provide willing farmers with paid labor services. Although there are still major challenges such as pests, diseases, and changes in climate patterns (particularly rainfall), we hope that the adoption of GAP will ultimately improve the resilience of farms.
Farmers and farmer groups that participate in the program receive a premium for the cocoa covered by this initiative. Premiums compensate farmers for the additional efforts involved in meeting the Group’s internal and third-party standards and ensuring traceable and sustainable cocoa production. They also contribute to improving farmers’ household income.
Farmer groups are also encouraged to reinvest a part of their premiums into social initiatives that benefit the whole community, such as the construction and repair of classrooms, school cafeterias, and water pumps.

• * Climate-smart cocoa practices: A sustainable agricultural approach aimed at mitigating and adapting to climate change impacts in growing cocoa. The focus is on improving the resilience of cocoa cultivation, reducing greenhouse gas emissions and promoting sustainable farming practices.

Community development and women’s empowerment(location/scope: West Africa (Côte d’Ivoire, Ghana))

Our Group believes that to realize sustainable procurement, it is important to address issues not only of cocoa farmers, but also of the local communities in the sourcing regions. As part of this effort, we support the development of social infrastructure in cocoa-producing communities to improve access to schools, health centers, maternity care, and safe water.
Women play a huge role in ensuring food security and access to nutrition, education and healthcare in cocoa-producing communities and their families. Our community development projects in Côte d’Ivoire and Ghana aim to empower women by creating economic opportunities for them. As part of these efforts, we offer literacy training courses for women and support the establishment of village savings and loans associations (VSLAs). The VSLAs are women-led self-managed groups that offer access to savings and loans to their members for investing in existing or new micro-businesses, funding children’s education and other urgent family needs. These initiatives have made a significant impact, leading to growth of activities with similar concepts.
To date, 876 VSLAs have been established in our Group’s cocoa supply chain. As of 2025, 476 of these VSLAs remain active in 88 villages. Women account for around 74% of the total of 14,756 participants.

Conserving and restoring forests(location/scope: Mainly Ghana and Côte d’Ivoire)

Our Group is committed to ensuring long-term benefits for cocoa farmers and their communities, reducing our carbon footprint, achieving a supply chain free of deforestation, and conserving and restoring ecosystems. To achieve these commitments, we are promoting the introduction of agroforestry.^*

• * Agroforestry: A land management system that combines perennial trees with crops and livestock to produce environmental and economic benefits. In the context of cocoa production, this means combining cocoa trees with other species of trees to provide benefits such as shade, and agricultural trees producing fruit, nuts, or timber.

Assessing and addressing deforestation risks

Since 2022, the Group has teamed up with Satelligence,^* a leading provider of geospatial forest monitoring services, to assess and address deforestation risks in Côte d’Ivoire, Ghana, and Ecuador. We leverage satellite imagery to perform landscape- and farm-level analysis including canopy cover change, deforestation risk assessments on and around cocoa farms, and carbon sequestration monitoring. Deforestation risk assessments involve comparing polygonal maps of farm plots against databases to check whether any farms in our supply chain encroach into protected areas.
If official data on protected area boundaries is available from national authorities, this data is prioritized.
Polygonal mapping data is also used in the deforestation monitoring process. In combination with forest canopy change alerts based on satellite images, this enables us to identify and quantify land-use changes resulting from our supply chain. Additionally, a real-time risk alert system enhances Blommer’s capacity to swiftly address deforestation and forest degradation.
In 2025 we monitored a total of over 46,489 hectares in Côte d’Ivoire and Ghana. No deforestation was confirmed during the 2024–2025 cocoa season.

• * Satelligence: A company providing analysis services using satellite data to detect and visualize deforestation and land-use change.

  https://satelligence.com/news/satelligence-and-blommer-partner-to-fight-deforestation-in-cocoa-areas

Actions led by Fuji Oil Group to plant one million trees

Since 2023, we have been implementing a three-year project in Côte d’Ivoire in partnership with AGRO-MAP,^* an Ivorian company specializing in nature-based solutions. Through this project, we have planted a total of 264,725 trees across Blommer’s direct cocoa supply chain. A variety of trees, from fruit trees to forest species, are selected based on the needs of local farmers.
As well as promoting cocoa agroforestry and community reforestation, this initiative helps to increase farmers’ income by diversifying sources of revenue.
Additionally, the project also aims to enhance the resilience of producers and communities vulnerable to climate change and promote carbon sequestration and biodiversity conservation.

• * AGRO-MAP

  https://agro-map.com/en/

Curbing deforestation through the Cocoa & Forests Initiative (CFI)

Blommer has been participating in the Cocoa & Forests Initiative (CFI) since 2017. Under this international initiative, 35 members, including companies accounting for 85% of global cocoa use, are working with the governments of Côte d’Ivoire and Ghana to curb deforestation and promote the protection and restoration of forests in cocoa supply chains.

CFI Action Plan

In 2023, Blommer announced a new commitment, the CFI 2.0 Action Plan,^* and is actively participating in its implementation. The second phase of CFI (CFI 2.0 2023–2025) aims to accelerate and scale impacts through collective action and co-investment in priority landscapes. In addition to solutions that have proven effective during the first phase, it focuses on new tools and interventions that will contribute to curbing deforestation.
Since 2018, Blommer has distributed 1,587,981 shade trees and completed mapping of approximately 90% of farm plots in its direct supply chain as part of CFI.

• * Blommer publishes a CFI report annually on its website:
  Sustainable Origins™ Strategy

  https://www.blommer.com/sustainability/strategy/safeguarding-the-environment.php

Agroforestry nurseries growing shade tree seedlings

Blommer supports Socodevi’s^* Women and Cocoa Communities Initiative (Initiative Femmes et Communautés Cacaoyères, IFCC) which has established three agroforestry nurseries growing shade tree seedlings in cocoa-producing regions in Côte d’Ivoire. Each nursery is operated by a local cooperative and has the capacity to grow 150,000 seedlings. Facilities include shading structures, solar-powered wells, irrigation systems, water towers, offices and warehouses.
Construction was approved following an environmental impact assessment based on Canada’s Impact Assessment Act. Formal ceremonies in 2025 marked the handover of the three sites from Socodevi to the cooperatives. At the opening of SOCOPDAL cocoa producers’ cooperative, 75,000 cocoa seeds were provided by coffee and cocoa authorities and distributed free of charge to cooperative members.
In the first production cycle, the three nurseries produced a total of 101,759 seedlings, of which 31,660 were sold and the remainder were distributed free of charge to cooperative members. Each nursery is run by a committee of nine people, including female representatives, who receive training in governance, gender equality, environmental considerations, and production cost management.

• * Socodevi: An international development NPO based in Canada, dedicated to strengthening cooperatives and agricultural communities, primarily in West Africa.

Measuring progress toward our goal of planting one million trees

As a Group, we have set a goal of planting one million trees by 2030 in cocoa-producing regions affected by deforestation.
Previously, when reporting progress toward this goal, we only included the number of trees planted in activities led by our Group, while trees planted as part of Blommer’s commitment to the Cocoa & Forests Initiative (CFI) were reported separately.
However, because this goal represents the total impact of tree planting generated by our Group, we have revised the scope of calculation starting with the FY2025 report, and decided to include shade tree seedlings funded by Blommer under the CFI framework within the Group’s progress. This revision does not change the target figure, the target timeframe, or the definition of tree planting.
Based on this new calculation method, the cumulative total number of trees planted by our Group since FY2020 is 719,340 (previously reported figure: 370,417). This total is made up of 424,725 trees planted through Group-led initiatives and 294,615 shade tree seedlings funded by Blommer through the CFI framework.

Deforestation assessment and carbon reduction with the World Cocoa Foundation (WCF)

Blommer has continued to enhance its initiatives in partnership with the World Cocoa Foundation (WCF),^* Satelligence and other industry partners. In 2023, the company contributed to the development of standardized deforestation risk assessment (DRA) methodologies. They provide step-by-step technical guidance for WCF member companies to standardize deforestation risk assessment of cocoa farms supplying the EU market, in preparation for compliance with the EU Regulation on Deforestation-free Products (EUDR). These methodologies are now integrated into the company’s evaluation processes.
Blommer has also teamed up with WCF member companies on a project to standardize carbon accounting for cocoa since 2023. This resulted in the publication of the industry’s first greenhouse gas guidelines, outlining a standard methodology for emissions accounting and promoting shade-grown cocoa.

• * World Cocoa Foundation (WCF)

  https://www.worldcocoafoundation.org/initiative/cocoa-forests-initiative/

• GHG Accounting Manual for Cocoa

  https://worldcocoafoundation.org/programmes-and-initiatives/carbon-strategy

• *1 We plan to plant a variety of shade tree saplings, totaling one million trees over a ten-year period from 2021 through 2030.
• *2 Good Agricultural Practices
• *3 See the section “Conserving and restoring forests”
  Conserving and restoring forests
• *4 The International Labour Organization (ILO) Convention No. 182, known as the Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, prohibits hazardous work that may harm the health, safety, or morals of children. This includes the sale and trafficking of children, debt bondage, forced or compulsory labor, prostitution and pornography, illegal activities such as crime, and recruitment of children for use in armed conflict.
• *5 In West Africa. For more information, see:
  Community development and women’s empowerment

Analysis

To implement the Responsible Cocoa Beans Sourcing Policy formulated in August 2018, we set KPIs in June 2020 and determined a direction for our efforts over the next ten years. Since becoming part of our Group in 2019, Blommer Chocolate Company (U.S.) has been taking the lead in sustainable procurement of cocoa and playing a major role in advancing the three pillars of child protection, forest conservation, and livelihood improvement for cocoa farmers.
In FY2025, we continued implementing the Child Labor Monitoring and Remediation System (CLMRS) as a framework to identify and address child labor issues at farming communities in our direct supply chain. We also promoted the introduction of village savings and loans associations (VSLAs) from the perspective of empowering women. In terms of forest conservation, as well as conducting deforestation risk assessments in cocoa-producing regions using data from Satelligence, we have implemented specific actions including planting 54,308 trees across our direct supply chain in Côte d’Ivoire, in partnership with AGRO-MAP.
In carrying out these tree-planting initiatives, we promoted agroforestry within farm plots and community reforestation while also helping to raise environmental awareness among farmers.
Going forward, we aim to create sustainable and positive impacts on both cocoa producers and the environment. We will work with stakeholders including customers, suppliers, certification bodies and international organizations to step up our initiatives in line with our Responsible Cocoa Beans Sourcing Policy.

Next steps

To address the critical issues of raising the income of farming households, protecting children, providing educational opportunities to cocoa farming families, empowering women, and conserving and restoring forests, we will work toward the following goals in FY2026:

Third-party certified sustainability programs

Fairtrade

The following Group companies have obtained the Fairtrade International certification, which aims to promote sustainable development of smallholders and workers in developing countries. These two companies produce and sell products made with Fairtrade-certified ingredients in response to our customer requests.

• Fuji Oil Europe (Belgium)
• Blommer Chocolate Company (U.S.)

The FAIRTRADE Mark

Fair Trade USA

Blommer Chocolate Company (U.S.) has held the Fair Trade USA certification since 2015.

Rainforest Alliance Certification

The following Group companies are certified in accordance with the supply chain requirements of the Rainforest Alliance^* Sustainable Agriculture Standard, which is an international certification program aiming to create a better future for people and nature. Going forward, we will continue to work to meet our customers’ demands for more responsible cocoa sourcing.

• Fuji Oil Co., Ltd.’s Hannan Business Operations Complex and Kanto Plant (Japan)
• Industrial Food Services (Australia)
• PT. Freyabadi Indotama (Indonesia)
• Freyabadi (Thailand) Co., Ltd.
• Fuji Global Chocolate (M) Sdn. Bhd. (Malaysia)
• Fuji Oil Europe (Belgium)
• Harald Indústria e Comércio de Alimentos Ltda (Brazil)
• Blommer Chocolate Company (U.S.)
• Blommer Chocolate Manufacturing (Shanghai) Company Ltd. (China)
• Fuji Oil (Zhang Jia Gang) Co., Ltd. (China)

• * Rainforest Alliance

  https://www.rainforest-alliance.org/

Fuji Oil Group’s sustainability program: Sustainable Origins

Sustainable Origins^* is our Group’s sustainability program.
The program promotes sustainable cocoa and chocolate production by ensuring transparency, accountability, and ethical practices throughout the supply chain. This program aims to build a resilient cocoa supply chain so that farmers and local communities can thrive, human rights are respected, and natural capital is protected for future generations, based on the Fuji Oil Group’s vision: “Together with our stakeholders, we will co-create a sustainable future for food, based on plant-based ingredients that are both delicious and healthy.”

Companies implementing the program

• Fuji Oil Co., Ltd.
• Blommer Chocolate Company (U.S.)

• * Sustainable Origins

  https://fujioil-sustainableorigins.jp/ (Japanese)

Initiatives in Japan (Membership in the Platform for Sustainable Cocoa in Developing Countries)

Fuji Oil Co., Ltd. has been a member of the Platform for Sustainable Cocoa in Developing Countries since April 2020,^* an initiative with the Japan International Cooperation Agency (JICA) acting as Secretariat. We have endorsed the Action Plan to Eliminate Child Labor in the Cocoa Industry, which was released by the platform since September 2022.

• * Platform for Sustainable Cocoa in Developing Countries

  https://www.jica.go.jp/activities/issues/governance/platform/index.html (in Japanese)

Participation in the World Cocoa Foundation (WCF)

The Fuji Oil Group has been a member of the World Cocoa Foundation (WCF)^* since 2012. The WCF is a non-profit international membership organization whose mission is to foster collaboration among its members and beyond, in order to build a more sustainable cocoa sector and improve the lives of cocoa farmers and cocoa-growing communities.
Blommer is a founding member and a board member of the WCF. Through participation in WCF flagship programs such as the African Cocoa Initiative, the Cocoa Livelihoods Program, Cocoa Action, and the Cocoa & Forests Initiative (CFI), Blommer is taking the lead in efforts to address issues in the cocoa industry.

• * World Cocoa Foundation (WCF)

  https://www.worldcocoafoundation.org/

Participation in the European Cocoa Association (ECA)

Fuji Oil Europe (Belgium) is a member of the European Cocoa Association^* and has been a member of the ECA Sustainability Working Group since 2019.

• * European Cocoa Association (ECA)

  https://www.eurococoa.com/en/