Chocolatewashing: The Empty Promises of the Chocolate Industry

Chocolatewashing: The Empty Promises of the Chocolate Industry

Chocolatewashing: The Empty Promises of the Chocolate Industry

Eco-opportunism and greenwashing have significantly undermined the clarity and credibility of sustainability certifications throughout global industries and supply chains, while “chocolatewashing” has similarly allowed major companies throughout the chocolate industry to assert that the cocoa sourced to make their chocolate products is “ethical” or “sustainable” despite a total lack of bean-to-bar traceability. Eco-opportunism refers to the practice of companies exploiting consumer interest in environmental and ethical practices for profit without genuinely committing to these values. Greenwashing involves misleading claims about the environmental benefits of a product or practice. Similarly, chocolatewashing is defined as the deceptive practice of marketing cocoa products as sustainable or ethically sourced despite a lack of transparency and traceability necessary to substantiate such claims. Each of these practices has led to widespread skepticism regarding the authenticity of certifications that claim chocolate products are sustainably made.

Lack of Credibility and Clarity

Certification schemes like Fairtrade, Rainforest Alliance, and UTZ are intended to ensure that chocolate is produced sustainably and ethically. However, the mass balance approach used in these certifications has drawn criticism. Under this approach, cocoa from certified and non-certified sources is mixed together during manufacturing, processing, and shipping. Thus the final product is not guaranteed to contain only certified cocoa. This approach allows companies to claim their products support sustainable practices without ensuring that each product actually contains 100% sustainably sourced ingredients. As a result, traceability is compromised, and consumers cannot be certain about the true origins of the cocoa in their chocolate.

Child Labor in the Cocoa Industry

Hazardous child labor remains prevalent in the cocoa industry, particularly in West Africa, which produces about 70% of the world's cocoa. More specifically, two countries within West Africa - Côte d'Ivoire and Ghana, the world's largest cocoa producers - together produce almost 60% of the world's cocoa each year. Cocoa is the primary perennial crop in both countries, providing income for roughly two million farmers. Alarmingly, current estimates from the U.S. Department of Labor indicate that over 1.56 million children are engaged in hazardous child labor in cocoa production in Côte d'Ivoire and Ghana alone. These children often work in dangerous conditions, performing tasks such as using sharp tools, carrying heavy loads, and exposing themselves to pesticides.

Mass Balance and Traceability Issues

The mass balance approach masks the traceability issues within the cocoa supply chain. By mixing certified and non-certified cocoa, it becomes impossible to trace the origin of the cocoa in the final product. This lack of transparency allows companies to obscure the use of child labor and other unethical practices in their supply chains.

Root Causes of Child Labor

One of the root causes of child labor in the cocoa industry is the low income paid to cocoa farmers. Many cocoa farmers live below the poverty line, forcing them to rely on child labor to reduce labor costs. Ensuring a living income for farmers is crucial for addressing child labor. Sustainable cocoa initiatives must prioritize fair wages and economic support for farmers to create a more equitable supply chain.

The Need for a Fully Traceable and Transparent Supply Chain

To eliminate child labor from the supply chains of major chocolate companies, a fully traceable and transparent supply chain is essential. This would involve:

  • Direct sourcing from cocoa farms.

  • Ensuring that all stages of production, from farming to processing, are monitored and documented.

  • Implementing robust auditing and verification processes to confirm compliance with ethical standards.

  • Leveraging technology such as blockchain to enhance traceability and transparency.

A fully traceable supply chain ensures that every step in the production process is visible and accountable. This level of transparency would make it much harder for companies to hide unethical practices, including child labor. It would also enable consumers to make more informed choices, supporting brands that genuinely commit to sustainability.

By committing to a fully traceable and transparent supply chain, the chocolate industry can make significant strides towards eliminating child labor and ensuring that all cocoa is ethically sourced.

Additional Sources
  1. U.S. Department of Labor. "2020 List of Goods Produced by Child Labor or Forced Labor." https://www.dol.gov/sites/dolgov/files/ILAB/child_labor_reports/tda2020/2020_TVPRA_List_Online_Final.pdf 

  2. NORC at the University of Chicago. "Assessing Progress in Reducing Child Labor in Cocoa Production in Cocoa Growing Areas of Côte d’Ivoire and Ghana." https://www.norc.org/PDFs/Cocoa%20Report/NORC%202020%20Cocoa%20Report_English.pdf 

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Tulipshare Ltd. Registered Office: 64 Nile Street, International House, London N1 7SR. | Registered in England & Wales. Company No: 12870288.
Your privacy is important to us. Please read our Privacy Policy to understand how we collect, use and share information about you.

No Investment Advice:
The information provided on this website is for informational purposes only and should not be considered as investment advice. We do not provide personalised investment recommendations or endorse any particular trading strategy. Any decision to engage in trading activities is solely at your own risk. You are responsible for conducting your own research and making informed investment decisions.