Barry Callebaut : Global Reporting Initiative (GRI) Report 2021/22

Barry Callebaut GRI Report 2021/22

GRI Report 2021 / 22

CONTENT:

Barry Callebaut AG's 2021/22 GRI Index is based on the	For further information please contact:
Global Reporting Initiative (GRI) Standards. GRI is the
world's leading standard for corporate sustainability report-	Taryn Ridley
ing (www.globalreporting.org). Through this GRI Index,	Lead ESG Integration & Communications
together with the Forever Chocolate Progress Report and	Barry Callebaut AG
the Annual Report 2021/22, Barry Callebaut reports in	Hardturmstrasse 181
accordance with the Core option of the GRI Standards.	CH-8005 Zurich
	Phone: [phone]
All material standards and indicators discussed are report-	Email: [e-mail]
ed as fully as the available data allow.

Relevant GRI Standard(s)

CHILD LABOR	408: Child Labor
	412: Human Rights Assessment
	414: Supplier Social Assessment
FORCED LABOR	409: Forced Labor
	412: Human Rights Assessment
POVERTY	203: Indirect Economic Impact
	413: Local Communities
FARMER INCOME	203: Indirect Economic Impact
	413: Local Communities
LOW YIELDS	203: Indirect Economic Impact
FUTURE COCOA SUPPLY	201: Economic Performance
	203: Indirect Economic Impact
	304: Biodiversity
TRACEABILITY	308: Supplier Environmental Assessment
	414: Supplier Social Assessment
HEALTH & SAFETY	403: Occupational Health and Safety
	414: Supplier Social Assessment
TALENT	404: Training and Education
	405: Diversity and Equal Opportunity
EMPLOYEE ENGAGEMENT	401: Employment
CLIMATE CHANGE	302: Energy
	305: Emissions
DEFORESTATION	304: Biodiversity
	308: Supplier Environmental Assessment
CO2 EMISSIONS	302: Energy
	305: Emissions
AIR POLLUTION	305: Emissions
SOIL DEGRADATION	304: Biodiversity
WATER	303: Water
COMPLIANCE	205: Anti-Corruption
	206: Anti-Competitive Behavior
	307: Environmental Compliance
	410: Security Practices
	415: Public Policy
	419: Socio-Economic Compliance

Forever Chocolate Progress Report 2021/22

Barry Callebaut GRI Report 2021/22

GRI 102: GENERAL DISCLOSURES

Organizational Profile

Disclosure	Disclosure title
number
102-1	Name of the organization
102-2	Activities, brands, products,
	and services
102-3	Location of headquarters
102-4	Location of operations
102-5	Nature of ownership and
	legal form

102-6	Markets served
102-7	Scale of the organization
102-8	Information on employees and
	other workers

102-9

Supply chain

102-10	Significant changes to the
	organization and its supply
	chain

Answer

Barry Callebaut AG

Barry Callebaut is the world's leading supplier of high-quality chocolate and cocoa products, with more than 13,418 employees operating out of more than 40 countries. Its main brands are: Barry Callebaut, Callebaut, Cacao Barry, Carma, and Mona Lisa. For further information: https://www.barry-callebaut.com/en/brands

Barry Callebaut AG, Hardturmstrasse 181, 8005 Zurich, Switzerland

https://www.barry-callebaut.com/en/contact

Barry Callebaut AG ("The Company") was incorporated on December 13, 1994, under Swiss law, having its head office in Zurich, Switzerland, at Hardturmstrasse 181, 8005 Zurich. Barry Callebaut AG is registered in Switzerland and has been listed on the SIX Swiss Exchange (BARN, ISIN Number: CH0009002962) since 1998. As at August 31, 2022, the market capitalization based on issued shares was CHF 10,999.7 million (August 31, 2021: CHF 12,822.0 million).

The significant shareholders of the Company are listed in Note 5.4 to the Consolidated Financial Statements, with Jacobs Holding AG as the reference shareholder holding 30.1% of the issued share capital (2021: 30.1%).

Barry Callebaut offers its products in 144 countries across the following regions: Europe, Americas, Asia Pacific. The Company serves clients in the Food & Beverage industry. Barry Callebaut serves the entire industry, from food manufacturers to artisans and professional users of chocolate such as chocolatiers, pastry chefs, or bakers; the Company also supplies products for vending machines.

As of August 31, 2022, the total number of employees was 13,418 and Barry Callebaut operated 66 factories. The annual sales in fiscal year 2021/22 (ended August 31, 2022), amounted to CHF 8.1 billion. Barry Callebaut's market capitalization based on issued shares was CHF 11 billion and the debt to equity ratio was 41.3%. In fiscal year 2021/22, Barry Callebaut achieved healthy volume growth of +5.3% to 2,306,681 tonnes.

At the end of the fiscal year 2021/22, Barry Callebaut had 13,418 employees. The Company had: 3,964 permanent and 146 temporary female employees; 9,001 permanent and 305 temporary male employees, 2 employees without gender identification. Employees in EMEA: 5,826 permanent and 307 temporary; Americas: 3,848 permanent and 69 temporary; Asia: 1,942 permanent and 39 temporary; Africa: 1,353 permanent and 34 temporary;

3,735 full-time and 374 part-time female employees; 9,095 full-time and 211 part-time male employees; 2 full-time employees without gender identification.

The following types of workers perform organization activities: Consultants, Agency Temps, Members of the Board of Directors, Contractors, Trainees, Volunteers / Students. Information on employees is collected in Barry Callebaut's internal HR system (Global HRIS System Success Factors). As from September 2018, the Company collects granular data on employees in the Barry Callebaut's Leadership Academy. At the end of 2021/22, 46 employees were assigned to the Barry Callebaut's Leadership Academy.

Barry Callebaut is fully vertically integrated along the entire value chain. The Company sources cocoa directly from smallholder farmers in Côte d'Ivoire, Ghana, Cameroon, Indonesia, Brazil, Ecuador, and Nigeria as well as from third-party suppliers from the main cocoa-producing countries. Cocoa beans and chocolate are processed or produced in 66 factories operated directly by Barry Callebaut. Its main brands are Barry Callebaut, Bensdorp, Callebaut, Cacao Barry, Carma, Caprimo, Chocovic, La Morella Nuts, Le Royal, Mona Lisa, SICAO, Van Leer, Van Houten Professional, and Van Houten Drinks.

• In the fiscal year 2021/22, the significant changes to the organization's size and structure include the following: August 2022
• • Office and CHOCOLATE ACADEMY™ Center relocated to the heart of Shanghai, China
  • Sustainalytics ranks Barry Callebaut #1 for management of ESG risks

June 2022

• Long-termdistribution agreement with Levapan to expand in Latin America May 2022
• Barry Callebaut establishes a state-of-the-art cocoa export facility in Ecuador
• New CHOCOLATE ACADEMY™ Center in Casablanca, Morocco
• Opening of new Business Excellence Center in Asia Pacific

April 2022

• Barry Callebaut to build specialty chocolate factory in Brantford, Canada
• Grupo Bimbo and Barry Callebaut extend strategic supply agreement March 2022
• Expansion of chocolate factory completed in Campbellfield, Australia February 2022
• Barry Callebaut recognized as Supplier Engagement Leader by CDP
• Launch of Callebaut NXT, 100% plant-based chocolate

November 2021

• The global decoration brand Mona Lisa expands to Mexico, its 50th market globally October 2021
• Chocolate factory inaugurated in Novi Sad, Serbia - Barry Callebaut unveils Elix, the first nutraceutical fruit drink
• The world's largest and most sustainable chocolate warehouse inaugurated in Lokeren, Belgium

September 2021

- Hershey and Barry Callebaut extend strategic supply agreement

Forever Chocolate Progress Report 2021/22

Barry Callebaut GRI Report 2021/22

Disclosure	Disclosure title
number
102-11	Precautionary principles or
	approach
102-12	External initiatives
102-13	Membership in associations

Strategy

102-14	Statement from senior
	decision-maker

Answer

Barry Callebaut considered the following references in development of the HACCP (Hazard Analysis and Critical Control Point) principles: Guidance on Food Allergen Management for Food Manufacturers Food Drink Europe (2013), Global Standard for Food Safety: Guidelines for Allergen Management (2014), FARRP - International Regulatory Chart (2015), European Food Safety Authority, FAO/WHO Food Standards. Codex Alimentarius. General standard for the labelling of prepackaged foods (1991), Guidance on Allergen Management and Consumer Information. Best Practice Guidance on Managing Food Allergens with Particular Reference to Avoiding Cross-Contamination and Using Appropriate Advisory Labelling, FSA (2006).

Among the main external initiatives which Barry Callebaut endorses and supports are: the Dutch Sustainable Trade Initiative (IDH), The German Development Finance Institution (DEG), Save the Children, Fairtrade, ILO Impact Insurance Facility, International Finance Corporation (IFC), Jacobs Foundation, Livelihoods Fund for Family Farming, Mastercard Fund for Rural Prosperity, Opportunity International, One Planet Business for Biodiversity (OP2B), UTZ/Rainforest Alliance, The Sustainable Agriculture Initiative Platform, and the International Cocoa Initiative (ICI).

Cocoa relevant

AABICAB, AIDEPIT, AIPC, Alliance7, Amcham, Ania, Aschoko/Confimex, BDSI, BLL & BVE, Belgian Confectionary Association (Choprabisco), Beyond Chocolate, Biscosuise, Bundesverband der Deutschen Süßwarenindustrie, China National Candy Association, Chocolate and Cocoa Association of Japan, Chocosuisse, Cocoa Association of Asia, Cocoa Merchants Association of America (CMAA), DISCO, EFOSZ, European Cocoa Association (ECA), European Confectionary Association (Caobisco), Federalimentare, FRISCO, GISCO, FAARP, Federation of Malaysian Manufacturer, FEVIA, FDP, FIAL, FNL, GAPMM Indonesia, GEPEX, Hunbisco, Index Nuovo León, International Cocoa Initiative, International Cocoa Organization, INC International Nut and Dried Food, Indonesia Cocoa Association, Japan International Cooperation Agency (JICA), Malaysia Cocoa Board, National Confectioners Association (NCA), One Planet for Business for Biodiversity (OP2B), Polbisco, Produlce, SGLH, Singapore Manufacturing Federation, SWISSCO, SVLQ, SVG, VBZ, Unione Ind. LI VCO, World Cocoa Foundation.

Other ingredients

Bee friendly, Bonsucro, Coalition for Sustainable Livelihoods, AIM-Progress, Sustainable Vanilla Initiative, Roundtable on Sustainable Palm Oil (RSPO), Roundtable on Sustainable Coconut and Coconut Oil, Sustainable Agriculture Initiative Platform (SAI), ProTerra Foundation and Stakeholder Council, SOS Cerrado, Supplier Ethical Data Exchange (Sedex), Cool Farm Alliance, Palm Oil Network Switzerland, ASACAM, North American Sustainable Palm Oil Network (NASPON), China Alliance for Sustainable Palm Oil, High Carbon Stock Approach (HCSA), Forest Stewardship Council (FSC), Singapore Alliance for Sustainable Palm Oil (SASPO).

Industry

World Business Council on Sustainable Development (WBCSD)

Message from the CEO

It is with great pleasure that I present to you our sixth Forever Chocolate Progress Report. It's been a year of collaboration, achievement and valuable partnerships. A year that once again underlined what impact can be created­ when key stakeholders join forces and work together for a fully sustainable cocoa sector.

Our key achievements for 2021/22 reflect our tangible impact on the ground. To name one, this year, we increased the proportion of products sold containing 100% sustainable cocoa or chocolate to 49.4%. This is the equivalent of one in two products we sell. This is a tremendous achievement made possible by our customers and our suppliers committed to a sustainable­ cocoa supply chain.

Through collaboration with some of our global customers, we've developed programs aiming to offer subsidized soil inputs and paid labor teams to support farmers with the cost of production. These programs were ramped up across 8,000 hectares in Côte d'Ivoire and Ghana. Under our Zero Child Labor pillar, we have placed a lot of emphasis on a child-centric approach, reaching 80.6% of the farmer groups in our direct supply chain that have child-labor-focused due diligence systems in place. We have also supported CLEF (Child Learning and Education Facility), an innovative public-private partnership focused on scaling investments to improve access to quality education in Côte d'Ivoire.

This year has also been a year of reflection - how do we move the needle beyond our direct supply chain? How do we drive progress and transformative­ action across the entire cocoa supply chain? The answer lies in multi-stakeholder coordinated action, in shaping policy and action together. We are proud to be a leading industry voice in these developments. Together with other companies, industry associations and NGOs, we have publicly endorsed legislation on human rights and environmental due diligence for the cocoa sector. It is gratifying to see that our advocacy efforts are yielding results - the upcoming EU legislation will provide an impetus to strengthen an enabling environment, as well as the market pull, for sustainable cocoa.Legislation, however, is no carte blanche for companies to lose ambition. While governments raise the floor, we want to continue to raise the ceiling. Halfway through the Forever Chocolate timeline, we have reflected in the past year on the impact we generated since 2016, and on what we aim to achieve in the years to come, towards 2025 and beyond. Keeping pace with the constantly evolving sustainability landscape, regulatory requirements, stakeholder expectations, while using our ongoing Forever Chocolate targets for 2025 as a springboard, we will present a set of sharpened targets in spring 2023. Our purpose is to continue driving change at scale, elevate ambition in the sector and recalibrate targets to integrate recognised sustainability­ standards.

I would like to thank our employees, partners, suppliers and customers for embracing our sustainability pathway - all our accomplishments were possible only with their dedication and passion. I warmly invite other stakeholders to join the Forever Chocolate movement. Together, we can make sustainable chocolate the norm.

Peter Boone

CEO of Barry Callebaut

Forever Chocolate Progress Report 2021/22

Barry Callebaut GRI Report 2021/22

Ethics and Integrity

Disclosure	Disclosure title		Answer
number
102-16	Values, principles, standards,	Barry Callebaut values are customer focus, entrepreneurship, team spirit, passion, and integrity.
	and norms of behavior
		Barry Callebaut developed its Code of Conduct in 2002 (updates in 2011, 2013, 2016, and 2022). The document is approved
		by the Executive Committee and signed by the CEO. The Chairman of the Audit, Finance, Risk, Quality & Compliance
		Committee (AFRQCC) is informed about compliance cases and compliance activities. The importance of this document and
		its implementation is amplified by the fact that the Chairman of the NCC is a member of the AFRQCC.
		All employees are expected to behave in ways that reflect the corporate values and to show responsibility and good
		citizenship in business dealings. The principles and guidelines for behavior are set forth in the Code of Conduct, which is
		available in 17 languages and signed by every employee when they join the Company.
		The document is available on Barry Callebaut's website. Please visit:
		https://www.barry-callebaut.com/en/group/forever-chocolate/ethical-sourcing-and-business/code-conduct
		Barry Callebaut's business partners receive the Supplier Code. The Supplier Code includes a reference to their values.
		Please visit:
		https://www.barry-callebaut.com/en/group/forever-chocolate/ethical-sourcing-and-business/sustainable-sourcing
		Additional information, policies, and reports on a broad range of ESG topics are also publicly available on a dedicated ESG
		information page. please visit:
		https://www.barry-callebaut.com/en/group/about-us/our-positions-on-esg

Governance

102-18	Governance structure	As of November 2, 2016, the Barry Callebaut Group is organized into different regions: EMEA (Europe, Middle East, Africa),
		Americas, and Asia Pacific. The globally managed Global Cocoa is, like a Region, reported as a separate segment.
		Barry Callebaut's business can also be separated into three different Product Groups: Food Manufacturers Products,
		Gourmet & Specialties Products, and Cocoa Products.

Committees of the highest governance body include the Board of Directors; the Audit, Finance, Risk, Quality & Compliance

Committee; the Nomination & Compensation Committee; and the Internal Audit.

The ESG and sustainability agenda is strongly driven by Barry Callebaut's top management. The cross-functional Sustaina­ bility Steering Committee is chaired by the CEO and includes all members of the Executive Committee and top managers of Barry Callebaut. The Committee meets quarterly to review sustainability strategy and progress.

Forever Chocolate Progress Report 2021/22

Barry Callebaut GRI Report 2021/22

Stakeholder Engagement

Disclosure	Disclosure title
number
102-40	List of stakeholder groups
102-41	Collective bargaining
	agreements
102-42	Identifying and selecting
	stakeholders

102-43

Stakeholder engagement

102-44	Key topics and concerns raised

Answer

Barry Callebaut is a vertically integrated company, and therefore its stakeholders include all parties along the cocoa value and supply chain: farmers, suppliers, governments, and donors. Besides the customers, the other major stakeholder groups are employees, investors, media, industry associations / platforms, governments, and NGOs.

Percentage of employees covered by collective bargaining agreements is 49%.

Barry Callebaut engages with all identified stakeholder groups to drive a shared vision for the future of the cocoa industry and at the same time to respond to challenges shared with the identified stakeholder groups. We are in regular dialogue with customers, investors, media, governments, industry associations, multi-stakeholder initiatives, and NGOs and take into consideration their views, expectations, or concerns on sustainability matters. Issues which are deemed relevant to our stakeholders and our business are plotted in a materiality matrix. How we manage these issues depends on their relevance to both stakeholders and Barry Callebaut.

At Barry Callebaut, our values represent a mindset and way of doing business that is committed to generating sustainable earnings over time and creating long-term value for all stakeholders. We are dedicated to running all our operations with transparency and integrity, including reporting on our social, environmental and governance (ESG) management and risks. We always seek to understand issues of concern and respond accordingly.

In 2015, Barry Callebaut identified issues material for the sustainability of its business and the context in which the Company operates. Regular dialogue with stakeholders ranging from farmer cooperatives to customers and from investors to governments helps to inform our approach to these issues. We are in regular dialogue with customers, investors, media, governments, industry associations, multi-stakeholder initiatives, and NGOs and take into consideration their views, expectations, or concerns on sustainability matters. Issues which are deemed relevant to our stakeholders and our business are plotted in a materiality matrix. How we manage these issues depends on their relevance to both stakeholders and Barry Callebaut.

Our level of engagement depends on how material the issue is to us and our stakeholders. We manage and report on all other issues identified as material, while we monitor those of lower relevance. An updated materiality assessment was conducted through an online survey in spring 2018. The latest materiality assessment was published in April 2021.

The survey was sent to both internal and external stakeholders and responses from the following stakeholder groups were received and taken into consideration: employees, investors, NGOs, customers, suppliers, industry platforms, donors, implementing partners, analysts, IGOs, and others. To view our latest materiality index, please visit: https://www.barry-callebaut.com/en/group/forever-chocolate/forever-chocolate-strategy/thats-what-forever-chocolate-all- about

Barry Callebaut maintains a regular dialogue with stakeholders through both participation in external activities (like workshops and conferences) as well as through organization of own internal activities (such as feedback sessions).

In 2021, Barry Callebaut hosted its first dedicated ESG Investor Roadshow and Governance Roadshow to present and discuss ESG topics with interested investors.

Together with the stakeholders, a number of topics were identified in 2015 and reconfirmed in 2018 and 2021:

Farmer productivity, poverty alleviation and farmer livelihood, farmer access to finance, child labor, living income, climate change and greenhouse gas emissions, deforestation and forest restoration, and supply chain traceability. All of the topics are addressed by Barry Callebaut's Forever Chocolate Strategy and its ambitious targets: eradicate child labor from Barry Callebaut's supply chain; lift more than 500,000 farmers out of poverty; become carbon and forest positive; have 100% sustainable ingredients in all of Barry Callebaut's products.

Forever Chocolate Progress Report 2021/22