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Writer's pictureIshani Aziz
Sep 154 min read

Sustainability Spotlight: Tony’s Chocolonely's Open Supply Chain

Introducing Sustainability Spotlight:

Our new series focuses on showcasing innovative business models and best practices from organisations who prioritise sustainability. This series highlights their successes and experiments towards driving forwards a more sustainable future.


A sweeter, sustainable future

Tony’s Chocolonely is currently the fastest-growing chocolate brand in the UK. Founded in 2005 with an annual revenue of £150 million, the company is now B Corp and Fairtrade Certified. The company is committed to making 100% slave-free chocolate a reality worldwide. Central to this mission is Tony’s Open Chain (TOC), an initiative designed to reshape the way cocoa is sourced and traded, ensuring transparency, fairness, and sustainability throughout the supply chain. In the world of food & beverages, where supply chains are notoriously difficult to control, the TOC stands out for its holistic approach to 100% transparency in its supply chain operation. 



Tony's Chocolonely Brand
Source: Tony's Chocolonely, 2024

Challenges of the cocoa supply chain 

When Tony’s Chocoloney first began in 2005, the company was wary that the cocoa industry has historically been flagged for child labour and modern slavery. Additionally, 2023 Oxfam research revealed that 90% of cocoa farmers in cocoa-producing countries Ghana and the Ivory Coast (which together account for over 60% of global cocoa production), do not earn a living income. These farmers receive a mere 6% of the profits from chocolate bars sold in the Global North. Tony's were also conscious of the deforestation associated with cocoa production as forests are uprooted for cocoa plants. Ghana and the Ivory Coast witnessed  the destruction of nearly 60,000 hectares of tropical forest. 


Combatting social supply chain issues

To address social inequities in the cocoa supply chain, Tony's Open Chain (TOC) ensures 100% traceability of cocoa beans, sourced under fair labor conditions. TOC trades with 9 farmer's cooperatives, reducing child labor to 10.5% and 4.4% in cooperatives they work with. The company employs a Child Labour Monitoring and Remediation System (CLMRS) to combat child labor, supporting affected children back into school or vocational training. Using the "Bean Tracker" platform, TOC guarantees zero deforestation and supports sustainable farming practices. They introduced a two-part price premium to bridge the income gap for farmers. TOC fosters lasting partnerships with farmers through tailored training, infrastructure improvements, and ongoing support, operating on five-year minimum purchasing agreements to ensure farmer security and investment.


Addressing environmental issues 

From an environmental perspective, cocoa farms are linked with significant rates of deforestation during the land-use change from forests to cocoa plantations. Tony’s Chocolonely has pledged to achieve a 100% deforestation-free supply chain and aims to reduce its overall carbon footprint by at least 42% by 2030. They also offer financial support for farmers to plant shade trees and adopt agroforestry practices, reinforcing their commitment to sustainable cocoa farming. The company verified their detriment to forest and shrublands using satellite analysis of over 29,326 cocoa farms, but found that January 1st 2014, 99.6% of Tony’s Chocolonely’s supply chain was verified as deforestation-free.This analysis also revealed that cocoa sourced from Tony’s Chocolonely’s supply chain had significantly lower emissions—87% lower in Ghana and 95% lower in Côte d'Ivoire—compared to other cocoa sourced from the same areas.


Through these efforts, TC is setting a powerful example of how technology, transparency, and commitment to sustainability can help reduce carbon footprints while ensuring the long-term viability of cocoa farming in the face of climate change.


Building traction through Mission Allies 

Companies like Huel, Pleese, Aldi’s Choceur Choco Changer bar, and Ben & Jerry’s Chocolatey Love A-Fair line have joined the movement, becoming "Mission Allies" (as named by the TOC), to support ethical cocoa sourcing. With the help of these "Mission Allies", 14,826 metric tons of cocoa beans were traced, up from 14,002 tons the previous year. Most recently, Pip & Nut, known for its natural peanut and almond butter, has joined the TOC mission, and committed to implementing its practices.


Proof That Profit and Purpose Can Coexist

Joke Aerts, Tony's Open Chain leader, insightfully noted, “Tony’s is proving it’s possible to be well-liked and profitable.” Despite being a relatively small player in comparison to industry giants, the company aims to show that it is possible to be both profitable and ethical. By championing their values through their open supply chain, Tony’s Chocolonely and its mission allies are paving the way toward a sweeter and more equitable future for chocolate. 


SMEs and supply chains

So why is the success of Tony's supply chain so important? Tony’s Chocolonely has set a bold example for businesses, by committing to complete transparency in their supply chain. This was essential in allowing them to gain full visibility over the process of bean to bar, and ultimately to effectively manage their supply chain, and make honest claims about their ethical impact. Achieving this transparency requires collaboration, and connections that Tony's leveraged through their partner cooperatives and Mission Allies. Where larger corporations might struggle to control their supply chain visibility, smaller, impact-driven SMEs are in a position to tackle the challenges they face.

 

References / Further reading

 

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