Roughly 17 million hectares of forest worldwide are lost or environmentally degraded by poor cultivation practices every year. Protecting forests and preventing deforestation and the conversion of natural ecosystems is therefore a key focus of HALBA's sustainability efforts. The goals and actions pursued and implemented by HALBA on this topic are outlined in the forest Protection Policy and Action Plan.
Forests, particularly rainforests, are being cut down worldwide for agriculture, converting natural ecosystems into farmland. In the tropics in particular, poverty and social inequality drive people in search of farmland into forested areas, where forests are cleared and subsequently used for agriculture. Timber, cocoa, coffee, soya, rubber and palm oil production, along with cattle farming, are among the main causes of global rainforest deforestation. Out of the raw materials used in Switzerland which contribute most to global deforestation, cocoa ranks second. The preservation of biodiversity, the protection of natural resources, and environment and climate protection are anchored in the Coop Sustainability Strategy and taken very seriously by HALBA. Public debate has triggered discussions among policymakers and legislative proposals for deforestation-free supply chains. In the EU, the EU Deforestation Regulation (EUDR) came into force on 29 June 2023. A ban on the sale and trade of raw materials and products that contribute to deforestation or conversion will come into force on 30 December 2026. The EUDR applies to wood, cocoa, coffee, soy, cattle, rubber, palm oil and some derivative products (e.g. chocolate, furniture).
HALBA procures and processes around 7 000 tonnes of cocoa beans as raw materials with an increased risk of deforestation and conversion, as well as roughly 5 000 tonnes of cocoa bean equivalents in the form of cocoa butter, cocoa powder and cocoa mass, around 2 500 tonnes of wood and paper products for packaging, and approximately 50 tonnes of soya in the form of soya lecithin.
HALBA aims to make the supply chains for cocoa and paper products fully deforestation- and conversion-free by the end of 2026. As a division of Coop Cooperative, HALBA also aims for a fully deforestation- and conversion-free supply chain for all critical raw materials by the end of 2026.
As of 31 December 2018, HALBA's supply chain for cocoa beans is now 97 % deforestation- and conversion-free (in accordance with the Fairtrade Standard) and as of 31 December 2020 98 % deforestation- and conversion-free (in accordance with the EUDR requirements). For cocoa derivatives such as cocoa butter and cocoa powder, the goal is to achieve the transition to deforestation- and conversion-free supply chains in accordance with EUDR by the end of 2026.
Traceability and transparency are essential prerequisites to exclude deforestation and conversion in the supply chain. HALBA therefore relies on direct sourcing and certification according to independent sustainability standards. Since 2018, HALBA has sourced 100 % of its cocoa beans as Fairtrade-certified and segregated. Over 80 % are sourced directly from cooperatives in Ecuador, the Dominican Republic and Honduras. There is also a direct supply chain to the cooperative in Ghana, although a licensed importer is legally required as an intermediary. 100 % of cocoa derivatives are also Fairtrade- or Rainforest Alliance-certified, however, some are still partially certified as mass balance. By the end of 2026, HALBA aims to switch its cocoa butter and cocoa powder to segregated Fairtrade or Rainforest Alliance supply chains.
HALBA works closely with cocoa cooperatives in Ghana, Ecuador, Peru, the Dominican Republic, Honduras and Madagascar to ensure compliance with the EU Deforestation Regulation (EUDR). The cooperatives receive support in recording geodata, establishing IT infrastructures and implementing traceability tools. For cocoa derivatives that are already processed in the EU, EU suppliers guarantee deforestation-free status and legal compliance.
Legal risks: Long-standing partnerships and direct supply chains facilitate the acquisition of information. Through organic and/or Fairtrade certification as well as dynamic agroforestry projects, the cooperatives are already familiar with the key challenges of the EUDR, particularly with deforestation-free and legal production. In addition, HALBA requests verifiable documents to ensure compliance with legal regulations in the country of origin and promotes the development of governance structures, data management and internal control systems.
Deforestation risks: The geodata provided by the cooperatives are analysed in collaboration with Satelligence. Satelligence uses satellite data, AI-supported analyses and local information to verify the geodata for deforestation-free status from the EUDR cut-off date of 31.12.2020. HALBA communicates the results transparently to the cooperatives and jointly develops strategies for dealing with non-compliant farms.
Restoration of ecosystems with DAF: By 2040, HALBA will source at least 50 % of the processed cocoa beans from dynamic agroforestry or equivalent production systems. This cultivation method helps restore soil fertility and the productivity of degraded and depleted soils. This can relieve the pressure on existing forests. At the same time, cleared areas of land are being reforested, gradually developing their structure, soil fertility and biodiversity towards those of the original primary forest systems.
