Sustainability Approach

Sustainability is a top priority for Hannie chocolate, and we work actively to foster sustainable development. Our long-term success depends on an intact and well-functioning environment; we know what it means to think in terms of generations

All products leaving our factories will ultimately live up to our commitment to sustainability along the entire value chain.

With the Hannie chocolate Promise, we ensure that all products leaving our factories will ultimately live up to our commitment to sustainability along the entire value chain. Hannie is committed to managing the impact of its operations on sustainability throughout the entire value chain. We aspire to achieve steady progress by working to gradually improve our performance. With this in mind, we are constantly striving to improve our contribution to a sustainable future, and we concentrate on the most significant aspects along our value chain. We monitor our progress on an ongoing basis using a series of key performance indicators. A total of 28 particularly relevant issues within the Hannie value chain in the areas of sourcing, production and consumption have been identified by means of a materiality analysis. These key issues are a priority for Hannie in its day-to-day efforts and activities.

Sourced.

Hannie chocolate is committed to long-term partnerships with the most important material and service suppliers. We are convinced that this is the only way to guarantee a sustainable supply. The traceability of the raw materials we use along the value chain is of particular importance. It's the key to sustainable purchasing and an important step towards improving working and environmental conditions at suppliers.

Produced Hannie chocolate premium products require high-quality raw materials and packaging material, dedicated employees, and respect for the environment. Therefore, we strive, not only as an employer but also as a member of society, to ensure that our business operations are environmentally sustainable and both ethically and socially responsible.

Consumed Hannie has a responsibility toward its customers and consumers. Strict quality controls ensure that our products meet our high standards – from the raw materials right through to customers and consumers.

The pillars of our business model

Quality Innovation Sustainability Global presence Marketing excellence Trade relationships Technology Sustainability is one of the main pillars of our business model. Our vision goes beyond making the finest premium chocolate, because our high production standards deserve to be matched by equally high standards of ethics and sustainability. This is why we promise that all products leaving our factories will live up to our commitment to sustainability along the entire value chain. The significance that Hannie chocolate attaches to responsible behavior is reflected in various policies and in our sustainability strategy, which defines the way Hannie chocolate manages its entire business

Sustainability strategy

Our sustainability strategy is based on material issues and includes commitments and strategic goals, main activities, indicators for measuring progress, and clear responsibilities for each focus area. This Sustainability Report provides an overview of our measures and achievements in 2018 with regard to our goals and commitments.

Raw and packaging materials

Significant social and environmental impacts relating to the production of chocolate affect the supply chain and thereby the cultivation, processing, and transport of raw and packaging materials. The global challenges include such things as adherence to international labor standards and human rights, living wages, and the responsible use of natural resources. With our engagement for sustainable supply chains, we not only improve living conditions on the ground and conserve natural resources, we also fulfill our customers’ and consumers’ expectations and build trust in our brands. Our Supplier Code of Conduct is our main instrument to communicating our expectations to our suppliers with regard to environmental and social standards and demanding adherence to them. When working with our suppliers, sustainability is a selection criterion that is evaluated and has an influence on our business decisions. When it comes to key raw materials such as cocoa and suger, we build our own programs or collaborate with partners. Where appropriate, we work with international standards, such as those regarding palm oil and soy lecithin. On the following pages we show our activities for the different raw and packaging materials.

Cocoa beans Our goal is to ensure that our sourced cocoa beans are fully traceable and verified by 2022. Our commitment to sustainability begins with a bean, a tree, and a farmer – because high-quality cocoa beans are the heart and soul of our chocolate. Many farmers are faced with low yields due to small farm lands, weak agricultural practices, overaged farms, and depleted soils. This consequently leads to low incomes for farmers and the resulting social problems such as child labor. Further, there are ecological challenges in cocoa production like climate change and deforestation. To overcome these challenges, it is essential that we know where our beans come from and under what conditions they are grown and harvested. Our primary advantage is that we are one of the few large chocolate makers that purchase high-quality cocoa beans and turn them into cocoa mass and fine chocolate in our own production facilities – except for our Russell Stover brand, which purchases chocolate and chocolate products. We put this advantage to work in achieving our sustainability goals. With the Hannie Farming Program, we can have a positive effect on the farmers who cultivate and harvest the cocoa beans that we use in our production.

The Hannie Farming Program

With the Hannie Farming Program, we strive to ensure decent and resilient livelihoods for the cocoa farmers and their families, and a sustainable intensification of agricultural practices. In this context, we address the locally relevant challenges such as poverty, child labor, and deforestation and at the same time secure the supply of high-quality cocoa beans. We achieve this through higher productivity on the farms, diversified incomes, preservation of biodiversity and natural ecosystems, reduced risk of child labor, and improved infrastructure in communities.