In May 2024, IASJ and investors representing more than $8.8 trillion USD sent letters to the big 6 chocolate companies (Mars, Incorporated; Mondelez International, Inc.; Ferrero International SpA; The Hershey Company;  Nestlé S.A.; Lindt & Sprüngli AG), calling on them to use their purchasing power to ensure West African cocoa farmers receive a living income for their cocoa. 

Despite repeated attempts to contact the chocolate companies, Hershey, Mars, and Lindt provided no response. 

“It is deeply disappointing that three of the largest chocolate companies in the world have refused to even acknowledge the investor letter,” said Gina Haas, Director of Investments of the American Baptist Home Mission Societies (ABHMS). “This lack of response is even more outrageous, considering the $8.8 trillion USD AUM backing the letter. This is an enormous amount of money, surpassing the GDP of all countries, except the US and China!”

A few companies did respond to the outreach, although one response was insufficient. Ferrero shared a statement,  “At Ferrero, we share the concerns that you have raised with me and others in the industry and want to take this opportunity to reiterate our commitment to addressing the underlying causes that contribute to these.” However, it did not explain how it was addressing the recommendations listed in the investor letter. Further, the Company ignored our request to set up a meeting with its sustainability team. 

Despite the fact that a majority of the 6 companies did not respond or responded insufficiently, there is cause for hope. Nestlé and Mondelez have taken the first step by responding to the investor letter and agreeing to meet with us. “We appreciate the opportunity to meet with Nestle and Mondelez to discuss the recommendations set out in the letter and hope that, as a result, the companies will improve their purchasing practices to ensure a living income for cocoa farmers. Mondelez and Nestlé have an opportunity to meaningfully address investors’ concerns and to become the sustainability leaders in the chocolate industry,” said Aaron Acosta. 

The chocolate industry has a crucial role to play in eradicating child labor in West Africa and in addressing its root cause – systemic poverty. By ensuring cocoa farmers receive a living income, chocolate companies can meet their human rights responsibilities and drive positive change in the sector. We welcome the opportunity to meet with Hershey, Mars, Lindt, and Ferrero to discuss the investor letter in greater detail.

To see the full investor letter and signatories, please visit this link: https://iasj.org/wp-content/uploads/IASJ-Investor-Letter-on-Child-Labor-and-Living-Income-in-the-Cocoa-Sector-2.pdf

For press inquiries or additional questions, please reach out to Aaron Acosta, Program Director, at aacosta@iasj.org