Cacao-Trace

The Puratos Sustainable Cocoa Program

and
Verification Standard
English

Version 6.0
December 2020

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TABLE OF CONTENTS

PURATOS IN BRIEF ......................................................................................................... 5

WHY HAVE A SUSTAINABLE COCOA SOURCING PROGRAM? ..................................................... 5

BECOMING FAMILIAR WITH THE CACAO-TRACE STANDARD..................................... 5

REFERENCES .................................................................................................................. 6

WHAT ARE CACAO-TRACE BEANS? .............................................................................. 6

HOW SHOULD YOU READ THE STANDARD? ................................................................ 6

CACAO -TRACE STANDARD IS APPLIED AT 3 LEVELS .............................................................. 6

THE CACAO-TRACE STANDARD HAS 7 PRINCIPLES ............................................................... 7

HOW DOES THE VERIFICATION PROCESS WORK? ...................................................... 8

APPLICATION PROCEDURE ................................................................................................. 8

CYCLE OF EVALUATION ..................................................................................................... 9
SAMPLING PROCEDURE ................................................................................................... 10
THE SQUARE ROOT OF PRODUCTION UNIT’S SIZE IS CONSIDERED AS FOLLOWS ....................... 10
METHOD 1: DRY BEAN EQUIVALENT ................................................................................. 11
METHOD 2: TREE COUNT ................................................................................................ 11
DURATION OF EVALUATION ............................................................................................. 12

ASSESSMENT OF COMPLIANCE .................................................................................. 12

SCORING SYSTEM AND CONTINUOUS IMPROVEMENT ............................................................ 12

REQUIREMENTS ............................................................................................................. 13
DIFFERENT TIERS OF COMPLIANCE WITH THE CACAO-TRACE STANDARD ................................ 13
PRELIMINARY STAGE OF NEW CACAO-TRACE PROGRAMS ..................................................... 14
PROCEDURE IN CASE OF INSUFFICIENT GLOBAL SCORE AFTER BEING VERIFIED AS COMPLYING WITH THE
CACAO-TRACE STANDARD .............................................................................................. 15
Surveillance or re-verification audit .......................................................................................................... 15

PAYING ATTENTION TO RED FLAGS ........................................................................... 15

REVIEW PROCESS ........................................................................................................ 16

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EXPLANATION OF THE REQUIREMENTS .................................................................... 17

PRINCIPLE 1 – LEGAL RESPONSIBILITY AND MANAGEMENT .................................. 17

1.1 Internal Management Committee ................................................................................................. 17
1.2 Grievance procedure ......................................................................................................................... 17
1.3 Property Rights / Ownership .......................................................................................................... 17
1.4 Legal compliance activities ............................................................................................................. 17

PRINCIPLE 2 – QUALITY & TRACEABILITY ................................................................ 18

2.1. QUALITY CONTROL ........................................................................................................................... 18
2.1.1. Receiving raw material .................................................................................................................................... 18
2.1.2. Pod breaking process ....................................................................................................................................... 18
2.1.3. Fermentation process ...................................................................................................................................... 19
2.1.4. Drying process ................................................................................................................................................... 19
2.1.5. Machinery usage ............................................................................................................................................... 19
2.1.6. Cleaning, sorting and packaging process.................................................................................................... 19
2.1.7. Receiving dry cocoa beans .............................................................................................................................. 20
2.1.8. Storage conditions ............................................................................................................................................ 20
2.1.9. Shipment control ............................................................................................................................................... 20
2.1.10. Fumigation ......................................................................................................................................................... 20
2.1.11. Cocoa bean grading .......................................................................................................................................... 20

2.2. TRACEABILITY MANAGEMENT ....................................................................................................... 21

2.2.1. Data collection ................................................................................................................................................... 21
2.2.2. Traceability of the Product ............................................................................................................................. 21
2.2.3. Collectors/ Consolidators ................................................................................................................................ 21
2.2.4. Financial flows ................................................................................................................................................... 21

PRINCIPLE 3 – ECONOMIC RESPONSIBILITY ............................................................ 22

3.1 Responsible pricing and purchasing activities .................................................................................22
3.2 Quality premium policy .........................................................................................................................22
3.3 Chocolate Bonus Program ....................................................................................................................22
3.4 Long term viable management plan .................................................................................................. 23

PRINCIPLE 4: SOCIAL RESPONSIBILITY .................................................................... 23

4.1. National & International labor laws ............................................................................................. 24
4.2. Trade Unions ..................................................................................................................................... 24
4.3. No child labor .................................................................................................................................... 24
4.4. Access to education .......................................................................................................................... 25
4.5. No forced labor .................................................................................................................................. 25
4.6. No discrimination .............................................................................................................................. 25
4.7. Indigenous people ............................................................................................................................ 26
4.8. Gender Equality ................................................................................................................................ 26
4.9. Wage and benefit ..............................................................................................................................27
4.10. Working hours and overtime work ...............................................................................................27

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 4.11. Disciplinary practices .......................................................................................................................27
4.12. Third party contractors and service providers ...........................................................................27

PRINCIPLE 5: HEALTH & SAFETY RESPONSIBILITY .................................................. 28

5.1. Occupational health and safety ................................................................................................... 28
5.2. Training of employees .................................................................................................................... 28
5.3. Basic needs ........................................................................................................................................ 28
5.4. Healthcare program ........................................................................................................................ 28
5.5. Protective equipment ...................................................................................................................... 29

PRINCIPLE 6 – AGRICULTURAL BEST PRACTICES .................................................... 29

6.1. Recording of cultivation activities ............................................................................................... 29
6.2. Genetic / planting materials ......................................................................................................... 29
6.3. Planting density and pattern ........................................................................................................ 29
6.4. Pruning practice ............................................................................................................................... 29
6.5. Soil nutrition management ............................................................................................................30
6.6. Pest control and Integrated Pest Management (IPM) methods .............................................30
6.7. Authorized Agrochemical products ..............................................................................................30
6.8. Handling of Agrochemicals ............................................................................................................. 31
6.9. Cocoa harvesting ............................................................................................................................... 31
6.10. Integrated farming ............................................................................................................................ 31

PRINCIPLE 7 – ENVIRONMENTAL RESPONSIBILITY ................................................. 31

7.1. Environmental regulations and conservation ............................................................................ 31
7.2. Preventing soil erosion..................................................................................................................... 32
7.3. Water conservation .......................................................................................................................... 32
7.4. Reduction / recycling ....................................................................................................................... 32
7.5. Energy saving ..................................................................................................................................... 32
7.6. Conservation & restoration plan.................................................................................................... 33

ANNEXES ...................................................................................................................... 33

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PURATOS IN BRIEF
Puratos is an international group, which offers a full range of innovative products and
application expertise for artisans, industry, retailers and food service customers in the
bakery, patisserie and chocolate sectors. Our headquarters are located on the outskirts
of Brussels, Belgium, where the company was founded in 1919. Puratos comprises
more than 9000 employees and our products and services available in over 100
countries around the world.

Why have a sustainable cocoa sourcing program?

As a global manufacturer of real chocolate, as well as compound chocolate and fillings,
cocoa ingredients are strategic raw materials for our factories all over the world.
Cacao-Trace is our sustainable cocoa sourcing program that is raising the bar for
chocolate, by focusing on superior taste. This begins with our local post-harvest
centers, where experts are setting new standards for the fermentation process. The
superior taste of our chocolate made possible by Cacao-Trace, benefits all of us. In
particular, the cocoa farmers, who receive an extra Chocolate Bonus for every kilo of
chocolate sold. The proof of the program is in the taste, and in the improved quality of
life for our cocoa farmers. Cacao-Trace is powered by passionate communities in five
cocoa regions, by Puratos, and by thousands of chocolate lovers worldwide. We are all
united by the belief that creating better chocolate together is the only way to
sustainability.

BECOMING FAMILIAR WITH THE CACAO-TRACE

STANDARD
Cacao-Trace stands for superior tasting, sustainable chocolate. Fermentation is at the
heart of the Cacao-Trace approach and is the foundation upon which we create a
positive impact. In each Cacao-Trace growing region we share our know-how on
fermentation, which is a result of extensive research and fine-tuning, in order to
develop exceptional tasting chocolate. Chocolate producers and consumers alike can
rest assured that Cacao-Trace stands for outstanding flavor, quality, and transparent
sourcing from sustainable cocoa beans. By adopting a continuous improvement
approach, Cacao-Trace directly answers the needs of cocoa producing communities to
enable them to obtain the highest possible income and to manage their plantations
with greater autonomy.

The Cacao-Trace Standard is a sustainability standard, a set of criteria defining

practices which cover seven (7) different principles against which each Entity is
verified. This document provides a monitoring and evaluation framework, in order to
drive sustainable improvements in our Cacao-Trace grower communities.

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REFERENCES
The document follows internationally recognized standards and conventions,
particularly those of the International Labour Organization (ILO) and International
Standard Organization (ISO). When standard requirements are higher than ILO, or not
covered, then the national legislation in the countries where Cacao-Trace is
implemented is applied.

WHAT ARE CACAO-TRACE BEANS?

Cacao-Trace verified dry beans are the basis of every Cacao-Trace chocolate product.
The beans must exclusively come from the Cacao-Trace supply chain and respect
Segregation, as defined by the standard described within this document. Fermentation
and processing of the beans follows strict steps to enhance and preserve exceptional
flavor and ensure consistently high quality.

HOW SHOULD YOU READ THE STANDARD?

The current Cacao-Trace Standard defines the Requirements to produce Cacao-Trace
verified dry cocoa beans.1 The Requirements are grouped into seven principles and
guide the best practices of sustainable cocoa production, from cocoa pod production
to the storage of packed dry cocoa beans. Each level of the supply chain is audited
according to these principles, in order to assess their compliance.

Cacao -Trace Standard is applied at 3 levels

Depending on the context, the Organization of the supply chain can vary. Puratos has
identified three main levels:

Level Definition

A business unit that oversees the Organization and

management of implementing the Cacao-Trace
Standard. The business unit can be Puratos
Entity Headquarters or any of its subsidiaries or chosen
external partners. If responsibility for one supply chain
is shared between more than one unit, the Internal

1
For semi-finished and finished goods please reference, Cacao-Trace Semi-Finished Goods Manual & Cacao-Trace
Story Telling Do’s and Don’ts.

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 Management Committee (IMC) should include
representatives from all respective units.

A unit where the cocoa post-harvest process (from the

pods /wet beans to the dry beans) takes place. This unit
Post-Harvest can either be a large to medium scale processing unit or
Unit a small-scale collector and fermenter.

A unit that is growing Theobroma trees and producing

cocoa pods. In some countries, Production Units can
also take over the Post-Harvest process at the same
Production Unit level. In this case, they deliver dry beans to Puratos or
an affiliated partner in the Cacao-Trace supply chain.

The Cacao-Trace Standard has 7 principles

More than 60 Requirements are grouped into 7 principles, which are applied at the 3
levels defined above.

Principle • Legal Responsibility and Management

1

Principle • Quality and Traceability

2

Principle • Economic Responsibility

3

Principle • Social Responsibility

4

Principle • Health and Safety

5

Principle • Best Agricultural Practices

6

Principle • Environmental responsibility

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In each principle section you will find:

• The intent and scope of application

• The Requirements on what will be audited

• Guidance to help interpret these Requirements/criterion

For more details on how each principle is evaluated please refer to the Cacao-Trace
Standard Checklists. Depending on the program, not all questions are mandatory. For
example, certified Organic programs are not evaluated for fumigation or proper
handling of agro-chemicals.

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There are 3 different scenarios where the Requirements should be verified:

• Case 1: All the post-harvest processes take place in the Post-Harvest Unit

• Case 2: The post-harvest processes take place in the Production Unit under
farmer supervision.

• Case 3: A mix of Case 1 and 2 where the post-harvest processes take place
partially at the Production Unit and partially at the Post-Harvest Units.

HOW DOES THE VERIFICATION PROCESS WORK?

Application Procedure
Applicants interested in becoming Cacao-Trace verified must contact Puratos directly,
for a pre-assessment. The following information must be provided:
✓ Name and legal identification of the Entity

✓ Contact information of the Entity

✓ Name and location of the Post-Harvest Units

✓ Locations and areas of the Production Units

✓ Production and processing capacity

✓ Number of working personnel

Once the pre-assessment is validated by Puratos, a more in-depth due diligence

process will be conducted on the supply chain (including third parties and
subcontractors) before the legal Entity can enter the cycle of evaluation.

Due diligence

The due diligence process consists of the following:

• Assessment of environment, biodiversity and social risks within the areas of

operations using publicly available tools such as:
o https://gmaptool.org/
o FAO - Farm Agri (http://www.fao.org/faostat/en/#data/QC);
o Global Forest Watch -
(http://www.wri.org/applications/maps/aqueduct-atlas/);
o World Resource Institute (WRI) Aqueduct / Water Risk Atlas :
http://www.wri.org/applications/maps/aqueduct-atlas/;
o World Economic Forum (WEF) - Gender Gap Index:
http://reports.weforum.org/global-gender-gap-report-
2016/economies/#economy=ISL;
o International Finance Corporation (IFC) - GMAP: https://gmaptool.org;

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 o University of Notre Dame Global Adaptation Initiative (ND GAIN):
https://gain.nd.edu/our-work/country-index/;
o FAO Global Soil Organic Carbon : http://www.fao.org/global-soil-
partnership/pillars-action/4-information-and-data/global-soil-organic-
carbon-gsoc-map/en/;
o World Justice Project (WJP) - https://worldjusticeproject.org/our-
work/wjp-rule-law-index/wjp-rule-law-index-2017%E2%80%932018.

• Blank audit conducted by the Puratos team using the Cacao-Trace standard
checklist
• Alignment on the Context Assessment and Roadmap with the implementing
entity
• Reserve the right to engage third party for due diligence purposes

Requirements

All existing and potential entities should sign and adhere to The Puratos Supplier Code
of Conduct.

Cycle of Evaluation
For a supply chain to be verified as Cacao-Trace, Applicants must be able to
demonstrate compliance with the minimum requirements of the Cacao-Trace
Standard, through an independent assessment by a Verification Body approved by
Puratos.

The Verification Body (VB) must be approved by Puratos and be accredited to EN45011
/ ISO/IEC Guide 65:1996 (General Requirements for Bodies Operating Product
Certification Systems) as well as ISO 17065 (Requirements for bodies certifying
products, processes and services). Only accreditation issued by an Accreditation Body
who is a Member of the International Accreditation Forum, makes a VB a candidate for
this standard as well (proxy accreditation).

The chosen Verification Body will draw up a contract between the Applicant and the
Verification Body, detailing the necessary Requirements and commitments from the
Applicant in order to comply with the Cacao-Trace audit.

There will be a three-year verification cycle including an initial verification audit,

surveillance audits in the following two years, and a re-verification audit in the fourth
year prior to expiration of the verification statement. In order to maintain compliance,
the frequency of each audit will be once per year.

Audit Definition

First year: Should be carried out for first-time verification.

Initial Scope: Covers the three levels, Entity, Post-Harvest and

verification Production Units, by following the defined sampling
audit procedure.

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 Purpose: To verify compliance with the Requirements.

Noncompliance: The Entity cannot be verified as Cacao-

Trace Standard compliant, but Puratos can propose a
transition2 period of 1 year

Second and Should include 1 audit per year with a frequency of every
third year: 12 months.

Surveillance Scope: Covers the three levels, Entity, Post-Harvest and

audits Production Units. For Production Units, the necessary
sample size is calculated as half the square root of the total
number of Production Units.

Purpose: To ensure the continuing implementation of the

Requirements.

Noncompliance: Corrective actions must be completed

within 90 days, or the Entity loses its verification

Fourth year: Should be carried out after 3 years of verification, a

maximum of 90 days before the expiry date of the
Re-Verification verification statement.
audit
Scope: Covers the whole system (from the farm to the
Processing and Production Units) and supporting
documentations.

Purpose: To evaluate the continuous fulfilment of and

improvements relating to the Requirements.

Noncompliance: Corrective actions must be completed

before expiry of the current verification statement, or the
Entity loses its status.

Program In the case that the farmer group (Production-Unit) has

expansion grown by more than 10% (through new additions), then the
sampling method used in the initial verification audit will
be applied.

Sampling Procedure
The square root of Production Unit’s size is considered as follows

2
The definition of transition is given on page 14

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Cacao-Trace targets farmers who make their living from Cacao. Thus, very small
farmers are categorized for the purpose of selecting a sample. The sample size will be
determined based either on the number of trees or on the volume (dry bean equivalent
sourced). Only one of the methods can be applied. The square root of a Production
Unit’s size is therefore considered as follows:

Method 1: Dry bean equivalent

Dry bean equivalent should be used if there are actual records available from the previous year.
Production units will be divided into two categories: small (<100 kg of dry bean equivalent per
year) and big (> 100kg of dry bean equivalent per year). The sample will be created by taking
the square root of the total. This number will then be applied to the ratio of the small/big farms
versus the total, with only ½ the square root being applied to the small ratio.

Example:
The total number of farmers is 400. From this, 100 farmers have > 100kg of dry bean
equivalent and 300 have < 100kg of dry bean equivalent. The square root of the total number
of farmers (400) is 20. In this case for the big farms 100/400*20 = 5 farms will be verified. For
small farms (300/400) *(20/2) =7.5 farms will be verified.
Method 2: Tree count
Tree count should only be used if there are no records of actual dry bean equivalent volumes
delivered from the previous year.
Production units will be divided into two categories: small (< 100 trees) and big (> 100 trees).
The sample will be created by taking the square root of the total. This number will then be
applied to the ratio of the small/big farms versus the total, with only ½ the square root being
applied to the small ratio.

Example:
The total number of farmers is 400. From this, 100 farmers have > 100 trees and 300 have <
100 trees. The square root of the total number of farmers (400) is 20. In this case, for the big
farms 100/400*20 = 5 farms will be verified. For small farms (300/400) *(20/2) = 7.5 farms
will be verified.
The square root of a Post-Harvest Unit’s size is considered as follows:
Sample size = square root (total number of Post-Harvest Units)
The square root of Post-harvest Unit’s size is considered as follows:
Sample size = square root (total number of Post-Harvest Units)

The Auditor ensures the representativeness of sampling in their selection of Post-

Harvest Units to visit (volume produced, number of workers etc.).

The Entity

For the Entity, the square root is not applicable. Any structure below the entity should
be audited.

The surveillance audits

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If 10% or more of the initial number of farms are added during the 2- or 3-year cycle,
the verification body must perform a verification as per an initial audit.

If the number of additional farmers is fewer than 10% of the initial total verified farmer
base, a surveillance audit, which consists of 50% of the initial audit, is enough.

Re-certification audits are carried out as per the initial audit, every 4 years. The sample
should include 50% of all the production units that were evaluated during the 1st
evaluation. This is to verify the improvement from the previous evaluation cycle.

Duration of Evaluation
The Verification Body must also ensure that the duration of each audit is “reasonable
and realistic” without excessive constraints on the Auditor or Auditee.

The audit duration may also depend on several factors, but in all cases should be
enough to ensure that a full evaluation against all Requirements is achieved.

A complete audit will consist of five elements:

1
Opening meeting

2
Collection of any necessary indicators and guidance documents

3
Entity/Post-Harvest/Production Units assessment

4
Review of management systems / records and procedures

5
Closing meeting with validation of the list of non-conformities

A representative of Puratos must take part in the opening and closing meetings, either
in person or remotely. Puratos will share challenges and progress in the annual
sustainability report.

ASSESSMENT OF COMPLIANCE
Scoring system and continuous improvement
A detailed scoring system provides guidance for the auditor on how to score each
Requirement as follows:

Each principle is divided into Requirements, with a potential total value of 3 points.
Details of the number of points per principle is detailed in the table below.

Principle 1 2 3 4 5 6 7

Number of 4 15 4 10 5 10 5
Requirements

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In some circumstances, questions are not applicable and are therefore not mandatory.
In cases where the question is not applicable, 3 points will be subtracted from the
denominator so that the question will not impact the overall score.

The scoring is broken down into 3 parts:

1) Average per principle per level: The total number of points will determine an
average score for each of the seven principles, at each of the 3 levels: Entity,
Post-Harvest and Production Unit.
2) Global average per principle: The average score for every one of the 7 principles
per level (Entity, Post-Harvest and Production Unit) is then added together in
order to obtain the overall score for each of the 7 principles.
3) Overall global average: The final score for the whole supply chain is calculated
by assigning around 14% to all principles and the corresponding weighted
system, as explained in Annex 2.

Requirements
Each principle is evaluated on sub-requirements assessed via a checklist of questions.
There are two question types:

• Questions requiring Yes or No answers.

• Questions with four different levels of compliance score, where the Auditor must
select a level accordingly.

Rating Status Explanations

0 Need for implementation The Requirement is not met

1 Needs major improvements The Requirement is being implemented,

(starting situation) even if only partly implemented

2 Needs minor improvement Requirement is planned and monitored by

(close to good) the internal control system, but some
evidence shows lack of full compliance

3 Satisfactory Requirement is implemented with enough

evidence of its implementation

Different tiers of compliance with the Cacao-Trace Standard

Cacao-Trace is a demanding standard with two main aims: to provide customers with
high quality chocolate, and to give each cocoa producing community the opportunity
to take part in an improvement process, following the seven principles of the Cacao-
Trace Standard.
To ensure consistent quality of the products, and to demonstrate that the supply chain
is involved in a process of continuous improvement, we require a minimum threshold

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of compliance with the Requirements for Units to be verified as meeting the Cacao-
Trace Standard.

Based on the scoring system (from 0 to 3) explained above, a percentage of compliance

will be calculated for each principle, at each level of the supply chain, and a global
percentage of compliance for the supply chain.

Verification will be awarded where there is compliance as below:

• Minimum 60% pass of total scored points (Initial audit & Surveillance audit).

• Minimum 60% pass of scored points for the Quality and Traceability Principle

The Auditor should justify their scoring with supporting evidence.

To encourage continuous improvement, three tiers of compliance are identified, based

on the % of total points scored on the supply chain:

Compliance Definition

Scoring from 60- 75% of total available

points and scoring a minimum of 60% of
BASIC COMPLIANCE points for the Quality and Traceability
Principle

Scoring > 75% to 90% of total available

points and scoring a minimum of 75% of
INTERMEDIARY COMPLIANCE points for the Quality and Traceability
Principle

Scoring > 90% of total available points and

scoring a minimum of 90% of points for the
ADVANCED COMPLIANCE Quality and Traceability Principle

The context of each country can vary greatly, and implementation of the Cacao-Trace
Standard must be adapted to these unique situations. Nevertheless, as continuous
improvement is the cornerstone of the Cacao-Trace process, each Entity should follow
the guidelines and recommendations below:

• It is highly recommended for the Entity to increase its tier of compliance from
the Basic Compliance to the Intermediary Compliance, or from the Intermediary
Compliance to the Advanced Compliance, within 3 years. The improvement
objectives should be determined jointly by Puratos and the Entity concerned.

When the Entity has passed the Cacao-Trace audit, the Verification Letter will be issued
within 15 working days after the audit date. The Verification Letter is the property of
the Entity.

Preliminary stage of new Cacao-Trace programs

In the case of new country programs being opened, the initial year will be considered
as a preliminary stage, with the status of the Entity classed as “in transition”. This

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status was created to allow a new Entity (and its supply chain) to be part of the Cacao-
Trace system whilst it works towards reaching the minimum Requirements of the “final
verification” i.e. 60% (Basic Compliance).

Each new program is carefully selected to be part of Cacao-Trace and must be found
to meet the Requirements through internal inspection. Given the high caliber of
programs selected for Cacao-Trace, we expect that within one year a Preliminary stage
Entity will reach the minimum compliance tier by the time of the official verification.

In order to ensure that the Entity is on the right track, 6 months from the program’s
launch, an internal audit will be conducted using the Cacao-Trace Standard checklist
to track progress and assess the next steps. The official 3rd party verification will take
place 1 year after the program’s initiation.

During the Transition period, the cocoa produced is considered as Cacao-Trace only if
the Applicant reaches 60% compliance with the Quality and Traceability Principle and
if no red flags have been detected. The stakeholders should benefit from the program
(e.g. through bonuses, training, and technical support). If the compliance in terms of
Quality and Traceability falls below 60%, the cocoa is sold as conventional cocoa. This
Transition period cannot last more than one year.

If the Entity does not pass the official verification after the initial year, they must pass
the re-audit within 90 days. If the Entity fails to pass the verification with a sufficient
score, the beans will not be considered as Cacao-Trace and will be sold as conventional
beans.

Procedure in case of insufficient global score after being verified as

complying with the Cacao-Trace Standard
Surveillance or re-verification audit

It is not possible to downgrade from “verified” to “in transition”. In case an audit leads
to a downgrade, the statement holder will need to implement major improvements
based upon the non-compliance findings (a score of 0 or 1) to achieve its previous
compliance tier. Evidence for corrective action should be provided within 90 days:

• Through documented proof

• Or through an additional audit

The choice of the verification method depends on the severity of the non-compliance
(score of 0) and is decided by the Auditor.

If the Entity fails to reach its verified status within 90 days, it will no longer be
considered as Cacao-Trace verified.

PAYING ATTENTION TO RED FLAGS

Demonstrating respect for some basic rights is necessary to be Cacao-Trace verified.
In addition to the monitoring systems required by the standard, a red flag system has
been developed at the Puratos level.

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Red flags concern the following Requirements:

• Internal Management Committee

• Grievance procedure
• Property Rights / Ownership
• Legal compliance activities
• National & International labor laws
• No child labor
• Access to education
• No forced labor
• No discrimination
• Indigenous people
• Gender Equality
• Wage and benefit
• Environmental regulations and conservation

A red flag is a special point of attention on the checklist. In case of non-compliance

with the Requirements classed as red flags, this is immediately highlighted by the audit
system and, a detailed explanation of the context should be given by the Auditor, as a
basis for an analysis.

Puratos takes red flags into serious consideration and sees them not only as an
individual issue but as a representation of a potentially more extensive problem. For
this reason, if a red flag is identified, there will be clear actions taken in response to the
findings to improve the overall supply chain.

Depending on the severity of the situation, Puratos can decide to:

• Expand the scope of the audit for this Entity, by increasing the sample size
• Define special corrective actions
• Exclude individuals from the program
• Halt the verification process with the Entity, in which case the cocoa beans
would not be verified as Cacao-Trace

The red flags will be mentioned in the annual report to provide transparency to the
stakeholders in our cocoa supply chain.

REVIEW PROCESS
Because sustainability is a dynamic process, this standard will be reviewed on a
continuous basis and improved and adapted as necessary.

The review committee consists of both internal and external experts who challenge the
content in order to ensure that Cacao-Trace remains meaningful and relevant.

For any suggestion or concerns please contact:

[email protected]

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EXPLANATION OF THE REQUIREMENTS
PRINCIPLE 1 – LEGAL RESPONSIBILITY AND MANAGEMENT
Purpose: To ensure that the Cacao-Trace program fits with local legislation at Entity,
Post-Harvest and Production Unit level.

1.1 Internal Management Committee

❖ Guidance:

The Internal Management Committee (IMC) is responsible for the implementation of

the Cacao-Trace Standard. Each country should have an IMC. The Entity is responsible
for clearly defining roles and responsibilities within the IMC.

The IMC is responsible for conducting a context assessment, which identifies the most
relevant needs, and covers the seven principles. From this assessment, an Action Plan
and roadmap should be produced and made available to the Auditor. They will use this
to crosscheck with the checklist questions, in order to evaluate progress on topics that
are difficult to detect or tackle in the short term. For example, questions relating to
gender equality, education and environmental protection. Implementation of the
standard should be carried out using a clear process and control system, which tracks
progress against the defined Action plan and roadmap.

*This Requirement is considered as a red flag. Any non-compliance (scoring 0 on the

checklist) results in a mandatory Action Plan to address the issue.
1.2 Grievance procedure

❖ Guidance:

Reference: Cacao-Trace Grievance procedure, English, Version 1.0 –2020

*This Requirement is considered as a red flag. Any non-compliance (scoring 0 on the

checklist) results in a mandatory Action Plan to address the issue.
1.3 Property Rights / Ownership

❖ Guidance:

All levels should comply with local and national laws relating to legal rights for land
use.

*This Requirement is considered as a red flag. Any non-compliance (failure to comply

with the law) will be taken seriously and will require a mandatory follow-up plan.
1.4 Legal compliance activities

❖ Guidance:

All levels should comply with local and national laws relating to business and operating
activities.

17
The evaluation should assess evidence that describes the business and operating
activities.

*This Requirement is considered as a red flag. Any non-compliance (failure to comply

with the law) will be taken seriously and will require a mandatory follow-up plan.

PRINCIPLE 2 – QUALITY & TRACEABILITY

Purpose: To ensure optimal and consistent quality with assurance of physical
traceability, from cocoa pods to dry cocoa beans.

Overview:

Quality and traceability of the beans are the basis for ensuring high quality chocolate
and good organization and monitoring of the supply chain.

All procedures and guidelines relating to quality are to be approved by Puratos as per
the Cacao-Trace Standard. These procedures and guidelines are IP and not available to
the public.

The Traceability management system must be approved by Puratos and accompanied

by internal audits.

2.1. QUALITY CONTROL

2.1.1. Receiving raw material

❖ Guidance:

Depending on the scope of operating activities, the Entity should have procedures to
control the receipt of cocoa pods and cocoa wet beans, with clearly recorded definitions
of acceptable quality.

The evaluation should verify procedures and their implementation, as well as assess
information (i.e. records) that describes the process of receiving raw materials, when
auditing the reception zone.

2.1.2. Pod breaking process

❖ Guidance:

To avoid damage and contamination to the beans, pod breaking should be conducted
in an appropriate manner. Once a sufficiently large quantity of pods has been
harvested, the pods must be broken, and the beans extracted. In order to avoid bean
loss due to diseases, it is best to do this straight away or within a couple of days after
harvesting.

The evaluation should verify procedures and their implementation, as well as assess
information (i.e. records) that describes the pod breaking process and the sorting of
the fresh beans (damaged, germinated beans).

18
 2.1.3. Fermentation process

❖ Guidance:

Fermentation of wet beans must be done in accordance with the Cacao-Trace

recommended processes.

The evaluation should verify procedures and their implementation, as well as assess
information (i.e. records) that describes the fermentation process of the cocoa beans.

2.1.4. Drying process

❖ Guidance:

After fermentation, the cocoa beans must be taken out and immediately spread on
adequate surfaces to dry, preferably under direct, natural sunlight, or using validated
drying equipment. If the drying is not started immediately, the cocoa beans will
continue fermenting and may rot. Good drying is as important as good fermenting.
The beans will only develop the desired brown color inside if they are properly dried.
While on the drying bed, the beans must be turned several times each day.
The evaluation should verify procedures and their implementation, as well as assess
information (i.e. records) that describes the drying process of the cocoa beans.

2.1.5. Machinery usage

❖ Guidance:

The Entity should have procedures for controlling and operating machinery within the
facility, to ensure appropriate usage. A maintenance plan is required for all machinery
that falls under the responsibility of the Entity. Where necessary, pictograms and/or
guidelines must be available for each machine and employees must be trained and
authorized to use specific machines.

The evaluation should verify procedures and assess information (i.e. records) that
describes the operation of machines and verify correct implementation of procedures
within the facility.

2.1.6. Cleaning, sorting and packaging process

❖ Guidance:

When the beans are completely dried, they must be sorted to remove the flat beans,
black beans, moldy beans, small and/or double beans, and beans with insect damage,
etc.

Cocoa beans should be packaged in clean jute bags which are sufficiently strong and
properly sewn or sealed. The bags must be made of non-toxic materials and have no
signs of contamination.

The evaluation should verify procedures along with their implementation and assess
information (i.e. records) that describes the cleaning, sorting and packaging of cocoa
beans with a visible Cacao-Trace logo.

19
 2.1.7. Receiving dry cocoa beans

❖ Guidance:

The Entity should have procedures to control the receipt of dry cocoa beans, with clear
definitions of acceptable and non-acceptable beans.

When auditing the reception zones, the evaluation should verify procedures and their
implementation, as well as assess information (i.e. records) that describes the dry
cocoa bean receiving process.

2.1.8. Storage conditions

❖ Guidance:

The bagged cocoa beans must be placed in storage sheds that are weatherproof, well
aired, dry, free from insects/pests, and away from smoke and other odors that would
contaminate the cocoa. The bags must be kept above ground level and away from
walls. The storage areas must always be kept locked and clean.
The evaluation should verify procedures along with their implementation and assess
information (i.e. records) that describes the storage conditions of the cocoa beans.

2.1.9. Shipment control

❖ Guidance:

The Entity should have procedures to ensure the appropriate condition of cocoa beans
for the whole shipment process (from factory storage to container) in order to avoid
any contamination. The container must be clean and odor-free.

The evaluation should verify procedures along with their implementation and assess
information (i.e. records) that describes the shipment conditions of the cocoa beans.

2.1.10. Fumigation

❖ Guidance for entities who ship non-organic beans:

Fumigation is a method of avoiding infestations during shipment of the cocoa bags.

The Entity should have procedures to monitor fumigation activity during storage and
transportation of the cocoa beans.

The evaluation should verify procedures and assess information (i.e. records and
certifications) to ensure appropriate use of chemicals.

2.1.11. Cocoa bean grading

❖ Guidance:

The grading of cocoa beans differs between countries and regions. Together with
Puratos, the Entity will define the grading specifications, following the Cacao-Trace dry
bean quality grading format and with respect to cocoa trade associations and national
authority specifications.

20
2.2. TRACEABILITY MANAGEMENT

2.2.1. Data collection

❖ Guidance:

Data collection is vital to ensure the Traceability of the product and implement
corrective actions in case of a problem.

The evaluation should assess evidence that there is a system in place to collect data -
collector information, farm information, location, production yield, area, age of the
farmer and other relevant qualitative information (gender, school etc.…)

At the request of Puratos, the Entity is subject to internal audit to ensure that
(agricultural) outputs match volumes received by the Entity Physical

2.2.2. Traceability of the Product

❖ Guidance:
To certify the cocoa as Cacao-Trace, Physical Traceability is crucial for us to be able to
follow the volume of pods and/or beans all along the supply chain.

The evaluation should assess the evidence of procedures and their implementation to
ensure Physical Traceability via Lot number, from the receipt of the pods until the
export of the dried cocoa beans.

2.2.3. Collectors/ Consolidators

❖ Guidance:

Everyone involved in the Cacao-Trace supply chain plays an important role and must
follow the correct procedures. In some instances, collectors and consolidators are
needed in order to connect dispersed growers to the buyer. The evaluation should
assess procedures that monitor compliance with the Cacao-Trace Standard procedures
for: 2.1.1 Receiving raw materials, 2.1.3 The pod breaking process, and 2.2.4 Financial
flows.

2.2.4. Financial flows

❖ Guidance:

All financial transactions must be controlled and registered, in order to monitor the
quantity of beans purchased and to prove that farmers are being paid.

The evaluation should assess evidence that demonstrates implementation of a

procedure for receiving the pods and/ or beans and payment to the collector and
farmers.

21
PRINCIPLE 3 – ECONOMIC RESPONSIBILITY
Purpose: To ensure responsible pricing for farmers and transparency of information
regarding price, quality premium, the Chocolate Bonus program and monitoring of
long-term impact.

3.1 Responsible pricing and purchasing activities

❖ Guidance:

To certify the cocoa as Cacao-Trace, the production and selling of cocoa beans must
be economically sustainable for farmers.

Responsible pricing is an important focus of the Cacao-Trace Standard. The Entity

should be able to justify a clear pricing policy through:

• A clear calculation method

• General Context evaluation (national policy, international price, climatic or
political events affecting cocoa)
• Production cost evaluation
• Communication tools to ensure the appropriate transparency of cocoa prices
within the supply chain

Optimal responsible pricing should cover the production costs and be profitable for the
farmer.

3.2 Quality premium policy

❖ Guidance:

The quality premium is one differentiator of the Cacao-Trace pricing structure, as

Puratos aims to reward the production of high-quality cocoa beans. The amount of the
premium is defined for each country according to the supply chain specificities and the
different quality levels. The quality premium should positively impact the Cacao-Trace
supply chain and gradually help to increase farmers’ incomes.

The evaluation should verify that:

- A quality premium, in accordance with the quality of Post-Harvest processes

and cocoa bean specifications, is part of the Entity pricing structure

- The quality premium is effectively increasing the purchasing prices of Cacao-

Trace beans versus cocoa beans sold on the conventional market.

- The quality premium fairly benefits the supply chain and the farming
communities and, where possible, is traceable to the farm gate.

-The quality standard and premium should be approved by Puratos.

3.3 Chocolate Bonus Program

❖ Guidance:

22
The Chocolate Bonus is a unique Cacao-Trace concept supported by Puratos through
its Next Generation Cocoa Foundation. Customers who buy Cacao-Trace chocolate
products directly support the long-term sustainability of the chocolate supply.
For every kilo of chocolate purchased, Cacao-Trace collects a “Chocolate Bonus”
of €0.10 (ten Euro cents) to be paid back to the farming community. Given that
the Chocolate Bonus relies on sales of the finished goods, this aspect of the
program can take some time to implement. This requirement will only be
evaluated once the Chocolate Bonus has been put in place.

The Chocolate Bonus should positively impact the Cacao-Trace supply chain and
gradually help to increase farmers’ incomes and/or living standards.

Chocolate Bonus should be implemented in all Cacao-Trace sourcing countries. The

amount distributed should be in line with the amount of Chocolate Bonus collected
from Cacao-Trace product sales.

100% of the Chocolate Bonus collected is redistributed among the first layers of the
supply chain at the farming community level, (farmers, collectors, farmer groups,
cooperatives) in a fair and transparent way. The guidance on distribution may vary
according to each supply chain’s specificities (community projects or cash
distribution).

The evaluation should verify that:

• The Entity has established adequate local guidance on Chocolate Bonus

distribution, and this has been approved by Puratos. The local rules of
distribution are documented, fair and match the realities of the local supply
chain.
• The Entity distributes the collected Chocolate Bonus to Cacao-Trace farmer
communities on a yearly basis, in the form of cash and/or projects, according to
the defined local guidance.
• The distribution system is audited yearly by an independent third party paid for
by Puratos.

3.4 Long term viable management plan

❖ Guidance:

The Entity must have a long-term commitment and a viable management plan for the
supply chain.

The evaluation should verify:

A documented annual budget, a business plan and roadmap for the next 5 years, sales
contracts for the raw materials and/or semi-finished and/or finished goods.

PRINCIPLE 4: SOCIAL RESPONSIBILITY

Purpose: To ensure that all levels of the supply chain respect good labor practices and
labor laws.

23
4.1. National & International labor laws

❖ Guidance:

All levels should comply with local and international laws related to labor.

The evaluation should communicate and promote compliance with the labor laws and
assess evidence of compliance and implementation at all levels.

*This Requirement is considered as a red flag. Any non-compliance (failure to comply

with the law) requires a mandatory Action Plan.
4.2. Trade Unions

❖ Guidance:

The right of employees and contractors to form associations and bargain collectively
with their employer should be respected.

The evaluation should assess evidence that describes the compliance with all the
requirements related to union rights, as per the referenced ILO conventions.

❖ References:

- ILO Convention 87 (1948) Freedom of Association and Protection of Right to

Organize

- ILO Convention 98 (1949) Right to Organize and Collective Bargaining

4.3. No child labor

❖ Guidance:

The Entity should clearly define the minimum working age of employees according to
international and national regulation and communicate this to all levels of the supply
chain.

If working children (under 18 years old) are observed in the Production / Post-Harvest
Unit, the evaluation should define if it is acceptable work for a child, unacceptable child
labor or the worst form of child labor.

- Acceptable work for a child is limited to a few hours a week, supervised by

responsible adults, to pass on cultural and farming traditions to the youth
generations (socializing work), and consist of light and safe tasks that do not
compromise school attendance.

- Unacceptable child labor is defined as underage (below 15) unsupervised work,

and/or underage (below 15) with excessive hours, and/or underage (below 15)
which compromises school attendance.

- Worst form of child labor: hazardous activities (age inappropriate), exploitation

or trafficking.

24
The evaluation should assess evidence that describes the compliance with all the
Requirements as per the referenced ILO conventions relating to child labor.

This Requirement is considered as a red flag. Any non-compliance (scoring 0 or 1 on

the checklist) results in a mandatory Action Plan to address the issue.

❖ References:

- ILO Convention 138 (1973) Minimum Age

- Hazardous tasks are defined as per ILO Convention 182, Article 3

4.4. Access to education

❖ Guidance:

The Entity should make sure that children living in Production and Post-Harvest Units
have access to education, irrespective of their gender.

The evaluation should assess evidence that describes compliance with all the national
requirements relating to access to education.

*This Requirement is considered as a red flag. Any non-compliance (scoring 0 or 1 on

the checklist) results in a mandatory Action Plan to address the issue.
4.5. No forced labor

❖ Guidance:

The Entity should not allow any type of slavery, debt bondage, trafficking or other
forms of forced labor.

The evaluation should assess evidence that describes compliance with all the
Requirements as per the referenced ILO conventions related to forced labor.

*This Requirement is considered as a red flag. Any non-compliance (scoring 0 on the

checklist) results in a mandatory Action Plan to address the issue.
❖ References:

- ILO Convention 29 (1930) Forced Labour

- ILO Convention 105 (1957) Abolition of Forced Labour

4.6. No discrimination

❖ Guidance:

No discrimination based on race, color, religion, political opinion, nationality or social

origin is accepted.

-Equality opportunity and treatment with respect to employment and

occupation must be upheld by the entity;

25
The evaluation should assess evidence that describe the compliance with all the
requirements as per the referenced ILO conventions related to discrimination.

❖ References:

- ILO Convention 100 (1951) Equal Remuneration

- ILO Convention 111 (1958) Discrimination (Employment and Occupation)

*This Requirement is considered as a red flag. Any non-compliance (scoring 0 on the

checklist) results in a mandatory Action Plan to address the issue.
4.7. Indigenous people

❖ Guidance:

Indigenous3 people’s interests and rights must be taken in consideration any project
involving indigenous people must demonstrate community engagement and
participation.
The Entity must inform indigenous people of their rights under national law.

-There shall be no imposition upon land, resources and culture.

-There must be a community representative to liaison with the program team

-Indigenous people must be included in the reflection of the project scope and
consequences.

*This Requirement is considered as a red flag. Any non-compliance (scoring 0 on the

checklist) results in a mandatory Action Plan to address the issue.
4.8. Gender Equality

❖ Guidance:
The Entity has a policy to prevent, monitor and record any gender discrimination,
gender violence and or sexual harassment. The Entity should consider matters such as:
training on gender equality, especially on women’s rights and gender discrimination,
as well as counselling for women affected by violence.

-The policy should be communicated to all stakeholders in the company.

-The evaluation should assess evidence that describes compliance with both
national and international standards including ILO conventions relating to
women’s’ rights.

*This Requirement is considered as a red flag. Any noncompliance (scoring 0 or 1 on

the checklist) results in a mandatory Action Plan to address the issue.

3
Reference: International Finance Corporation Performance Standard 7 Indigenous people covers any of the following
“Indigenous ethnic minorities,” “aboriginals,” “hill tribes,” “minority nationalities,” “scheduled tribes,” “first nations,” or
“tribal groups.”

26
❖ References:

- ILO Convention 111 (1958) Discrimination (Employment and Occupation)

4.9. Wage and benefit

❖ Guidance:

The Entity should ensure the appropriate wages and benefits for employees, according
to local and national laws. The evaluation should assess evidence that describes
compliance with local and national laws relating to wages and benefits.

This Requirement is considered as a red flag. Any non-compliance (scoring 0 or 1 on

the checklist) results in a mandatory Action Plan to address the issue.
❖ References:

Annexes that define the wages and benefits for employees (different for each
country / region)
4.10. Working hours and overtime work

❖ Guidance:

The Entity should ensure the appropriate working hours and overtime work of
employees according to local and national laws.

The evaluation should assess evidence that describes compliance with all the local
requirements relating to working hours and overtime work.

❖ References:

Annexes that define the working hours and overtime work for employees
(different for each country / region).

4.11. Disciplinary practices

❖ Guidance:

The management must treat all personnel with dignity and respect. The management
does not engage in corporal punishment, mental or physical coercion, or verbal abuse
of personnel. No harsh or inhumane treatment is allowed.

4.12. Third party contractors and service providers

The Entity is responsible for ensuring that any third-party contractors and/ or
services providers are engaged in accordance with national OHS/labor
requirements.

27
PRINCIPLE 5: HEALTH & SAFETY RESPONSIBILITY
Purpose: To ensure safe and healthy production practices and monitor the long-term
impact.

5.1. Occupational health and safety

❖ Guidance:

The Entity should carry out context assessments and adopt preventive and protective
measures to ensure health and safety with respect to workplaces, machinery,
equipment, chemicals, tools and processes. The Entity should ensure dissemination of
information, appropriate training, supervision and compliance, including special
protection for youth and pregnant/breastfeeding women workers and coverage
against occupational injuries and disease.

The evaluation should verify the Occupational Health and Safety procedures and
assess related documents.

5.2. Training of employees

❖ Guidance:

All levels should ensure that, through engagement in regular training activities, all their
employees are competent in technical and health and safety knowledge.

The evaluation should verify if the Entity has a monitoring system to evaluate training
needs (e.g. a visible need for training or through requests from farmers) and to provide
adapted support as per the IMC context assessment.

5.3. Basic needs

❖ Guidance:

All levels should ensure that all the basic needs of the employees/sub-contractors, such
as access to clean drinking water and sanitation facilities, are met. In case laborers
live/sleep in company houses, safe and clean accommodation should be provided, and
should not be overcrowded.

The evaluation should verify that employees’/sub-contractors’ basic needs are being
met.

5.4. Healthcare program

❖ Guidance:

The Entity should ensure that there is at least an annual medical check / healthcare
program for the permanent employees. This contributes to supporting the overall
working capability of the employees. Basic medical equipment should also be provided
for both permanent and temporary the employees.

The evaluation should verify the Healthcare program, along with its implementation,
and assess the related documents.

28
5.5. Protective equipment

❖ Guidance:

All levels should promote appropriate provision and usage of protective equipment for
the employees/sub-contractors. The required protective equipment should be defined
for each process, as per the context assessment carried out by the IMC.

PRINCIPLE 6 – AGRICULTURAL BEST PRACTICES

Purpose: To ensure good practices in cocoa farming (productivity, pest and soil
management and plant nutrition), food and farm safety and to monitor adoption of
these practices.

6.1. Recording of cultivation activities

❖ Guidance:

A record-keeping system should be established, either at the farm or Entity level, in

which all the essential elements of cocoa production are captured. Records should be
kept on the types and sources of planting materials, pruning, as well as the usage and
types of pesticides and fertilizers.

6.2. Genetic / planting materials

❖ Guidance:

Choice of planting materials and rootstocks should be based on national legislation

and characteristics such as high productivity, quality of the bean, consumer
acceptability, and resistance to pests and diseases.

If the planting material is not consistent with national regulations, it is important that
efforts are made to improve it

The evaluation of the use of grafting, replanting, the presence of a nursery and the
variety of trees should be based on the context assessment.

6.3. Planting density and pattern

❖ Guidance:

Cocoa should be planted in the most suitable pattern and density according to the
variety and topography, to ensure high productivity and easy management of the
farms.

The evaluation should assess the correct distance between trees and the sun
penetration as per the context assessment and as defined by the Entity. The
assessment will only consider new plantings.

6.4. Pruning practice

❖ Guidance:

29
Pruning is the removal of unwanted branches from a cocoa tree. It is an important
operation, which can affect yields in both the short and long-term. Insects and diseases
multiply more in unpruned cocoa trees with dense canopies, than in trees that have
been opened by pruning and display well-aired canopies. Pruning can also stimulate
flowering and pod production. Pruning of shade trees and crops which could impact
sunlight to the cocoa trees is also encouraged.

The evaluation should assess the structure of the tree (distribution and height of the
branches), sun penetration, as well as if the Entity offers training on pruning.

6.5. Soil nutrition management

❖ Guidance:

Soil nutrition is the basis of all agricultural production; the conservation and
improvement of this valuable resource is essential. Good soil husbandry ensures the
long-term fertility of soil, boosts yield and contributes to profitability.

The evaluation should assess records that describe the fertilizing activities and/or
composting on the farm, as well as if the Entity offers training on soil nutrition.

6.6. Pest control and Integrated Pest Management (IPM) methods

❖ Guidance:

There should be procedures for pest control techniques, which provide advice and
information on types and frequency of pests (and diseases). Adoption of Integrated
Pest Management (IPM) regimes should be encouraged in order to minimize the use of
chemicals and promote the use of biological control wherever possible.

The evaluation should assess evidence of training material and or the application of
appropriate pest control and IPM procedures displayed at farm level.

6.7. Authorized Agrochemical products

❖ Guidance:

The Entity and Post-Harvested Unit should ensure that the information on authorized
agro-chemical products is communicated to farmers and there is no use of prohibited
pesticides during cocoa cultivation activity.

The evaluation should assess:

-The evidence that describes the control and prevention of using prohibited pesticides.

-Whether farmers have a list of authorized products and documented procedures on

correct application, as well as demonstrating correct usage.

❖ References:

- World Health Organization (Agrochemicals type 1A & 1B)

- FAO International Code of Conduct on the Distribution and Use of Pesticides

(1985, Revised 2002)

30
6.8. Handling of Agrochemicals

❖ Guidance:

Agrochemical products can be harmful for both farmers and the environment if they
are not used properly. Farmers must implement good practices when handling
Agrochemical products and use the necessary equipment correctly.

There should be responsible personnel for handling Agrochemicals and appropriate

training (or verification of ability) regarding the handling, mixing, storage and disposal
of Agrochemicals should be provided.

The evaluation should assess evidence that describes the training of responsible
personnel and the implementation of good practices.

6.9. Cocoa harvesting

❖ Guidance:

Harvesting can affect seed quality and the sustainability of cocoa production.

The evaluation should assess evidence which describes harvest criteria (how to identify
ripe fruit) and how to harvest without damaging the flower pad.

6.10. Integrated farming

❖ Guidance:

Integrated farming improves the resilience of a farm against climate change, pests and
diseases and volatility in the agricultural market.

The Entity should encourage integrated farming, which includes but is not limited to,
intercropping, agro-forestry models, closed loop farming, family gardens, animal
husbandry, aqua farming etc.

PRINCIPLE 7 – ENVIRONMENTAL RESPONSIBILITY

Purpose: To protect natural resources and biodiversity by managing environmental
risk and monitoring long term impact.

7.1. Environmental regulations and conservation

❖ Guidance:

The levels should comply with local and national laws relating to environmental
protection.

The evaluation should assess evidence that proves compliance with applicable
environmental regulations.

The Entity is responsible for recording and cross-referencing production locations in

order to avoid sourcing from protected forests and lands.

31
There must be no evidence of deforestation of protected and or primary forests since
January 1st, 2014, as per baseline data.4

This must be supported with appropriate documentation of farm locations and land
use monitoring.

*This Requirement is considered as a red flag. Any non-compliance (failure to comply

with the law) will be taken seriously and will require a mandatory follow-up plan.
7.2. Preventing soil erosion

❖ Guidance:

Soil erosion can affect the crop yield and the land and water downstream. The Entity
should communicate measures to control/minimize soil erosion through training
and/or written content. The communication should be relevant to the context
assessment carried out by the IMC.

The evaluation should assess records, schedules and content of training to support
farmers with cultivation techniques that minimize soil erosion.
7.3. Water conservation

❖ Guidance:

The Entity should communicate/ offer training on optimizing water use. Notably,
within farms with irrigation, efficient irrigation technologies and water management
to minimize wastage and avoid leaching to the surrounding environment should be
considered. The communication should be relevant to the context assessment carried
out by the IMC.

The evaluation should assess records, schedules and content of training.

7.4. Reduction / recycling

❖ Guidance:

The Entity should have measures in place to reduce waste and effluents that occur
during cultivation and processing activities. The recycling of waste must be
encouraged.

7.5. Energy saving

❖ Guidance:

The Entity has records of where and how energy is consumed on the facility,
throughout their operation activities and immediate supply chain (if the Entity owns
the Post-Harvest Unit). Equipment and machinery should be selected and maintained
for optimum energy consumption. The use of renewable energy sources and
minimization of the use of non-renewable energy sources must be encouraged.

4
2014 is the year Cacao-Trace started

32
7.6. Conservation & restoration plan

❖ Guidance:

The Entity should promote good practices in managing the landscape and biodiversity
of the surrounding environment. Specifically avoid cocoa beans sourcing from natural
habitats.

There should be conservation and restoration of natural habitat within the region /
country where the cocoa production takes place.

The approach includes assessing potential risks to biodiversity and ecosystems,

habitat loss, degradation and pollution to the environment. The risk should be
monitored and evaluated through geo-mapping.

The Entity should encourage the rehabilitation of trees, through communication about
the agricultural best practices.

ANNEXES
Annexes will be provided by countries according to Local Legislations (labor law etc.)
and Local Specificity (cocoa specification, etc.).

All the required information can also be centralized in one annex file by the Entity and
provided to the Auditor at the time of the audit.

ANNEX 1: DEFINITION
• Accreditation Body: Organization that provides oversight to Verification Bodies, by
assessing them against international voluntary standards such as ISO/IEC 17021.
They may be linked to governments and must comply with the International
Standard ISO/IEC17011.
• Action plan: Detailed steps which have been mapped out in order to improve
compliance with the Cacao-Trace Standard.
• Agro-chemicals: Various chemical products used in agriculture (e.g. pesticides,
herbicides, fungicides, chemical growth agents…)
• Applicant: Organization, business or cooperative who expresses an interest in being
verified as Cacao-Trace.
• Auditee: The Organization being audited.
• Auditor: Person that works for or is contracted to a Verification Body (VB) to perform
conformity assessments and surveillance. VBs are responsible for ensuring Auditors
meet qualification Requirements.
• Cocoa bean: Seed of the cocoa tree (Theobroma Cacao) [source: ISO 2451:2014,
3.5]
• Cocoa product: Product derived from the processing of the cocoa bean, including
nibs, cocoa liquor/mass, cocoa butter, cocoa cake and cocoa powder. [source: ISO
34101-3:2018, 3.4]
• Cocoa supply chain: Sequence of the stages and operations involved in the
movement of cocoa beans and processing of cocoa products, from farm to the point

33
 of exit from the factory door of the manufacturer of the final retail product. [source:
ISO 34101-3:2018, 3.5]
• Compliance: Fulfilment of a requirement [source: ISO 34101-3:2018, 3.7 modified
“conformity” has been replaced by “compliance”]
• Data: Facts about an objective. [source: ISO 34101-3:2018, 3.9]
• Integrated Pest Management (IPM): Effective and environmentally sensitive
approach to pest management that relies on a combination of common-sense
practices. IPM programs use current, comprehensive information on the life cycles
of pests and their interaction with the environment. This information, in
combination with available pest control methods, is used to manage pest damage
by the most economical means, and with the least possible hazard to people,
property, and the environment
• Internal Management Committee (IMC): is responsible for the implementation of
the Cacao-Trace Standard. Each country should have an IMC. The Entity is
responsible for clearly defining who part of the IMC is for the Cacao-Trace Standard
and what their role is. The IMC is responsible for conducting a context assessment,
which identifies the most relevant needs, covering the seven principles.
• Lot: Set of units of a product which have been produced and/or processed or
packaged under similar circumstances. [source: ISO 22005:2007, 3.3]
• Organization: Person or group of people that has its own functions with
responsibilities, authorities and relationships to achieve its objectives in relation to
sustainably production of cocoa beans. [source: ISO 34101-3:2018, 3.19]
• Process: set of interrelated or interacting activities which transforms inputs into
outputs. [source: ISO 34101-3:2018, 3.20]
• Producer: Farmer that cultivates cocoa trees and harvests cocoa pods that are sold
to the Entity before or after processing.
• Product: Output of an Organization that can be produced without any transaction
taking place between the Organization and the customer. [source: ISO 34101-
3:2018, 3.21]
• Requirement: Required criteria to be fulfilled according to the Cacao-Trace
Standard.
• Segregation: The process that separates conforming from nonconforming Cacao-
Trace cocoa beans and/or cocoa products but allows mixing of conforming cocoa
beans and/or cocoa products from different Organizations. [source: ISO 34101-
3:2018, 3.22 modified “cocoa beans” has been substituted by “Cacao-Trace cocoa
beans”] Segregation principle is required for Cacao-Trace beans.
• Sub-contractor: A supply chain actor contracted by an Entity or a Post-Harvest Unit
to carry out specific activities.
• Sustainably Produced Cocoa Beans: Cocoa beans that are produced in an
economically viable, environmentally sound and socially responsible manner,
within an Entity. [source: ISO 34101-3:2018, 3.27 modified “Organization has been
replaced by “Entity”]
• Traceability System: totality of data and operations that can maintain desired
information about a product and its components through all or part of its
production and/or utilization chain. [source: ISO 34101-3:2018, 3.29]
• Traceability: ability to follow the physical movement and/or mass conformity of
Sustainably Produced Cacao-Trace Cocoa Beans through specified stage(s) of

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 production, processing and distribution. [source: ISO 34101-3:2018, 3.28 modified
“cocoa beans” has been substituted by “Cacao-Trace cocoa beans”]
• Verification Body (VB): The Organization providing auditing and verification
services- so called conformity assessments - demonstrating that specified
requirements relating to a product, process or system are fulfilled.
• Verification Letter: An official documentation issued by a Puratos approved
Verification Body, when an Entity complies with the requirements of the Cacao-
Trace Standard.

ANNEX 2: WEIGHTED SCORING SYSTEM

Each of the 7 principles is given a weight of 14.28%. The 14.28% is made up of the
collective scoring from the 3 levels. A weighting system is applied, giving weight to the
scoring of a level depending on the level’s responsibility for the principle considered.

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 Production Unit Post-Harvest Unit Entity (Puratos
(farm) and Partners)
(Puratos or
Collectors)

Principle 1 –Legal 20% 20% 60%

Responsibility

Principle 2 – Quality and 0% 50% 50%

Traceability

Principle 3 – Economic 25% 25% 50%

Responsibility

Principle 4 – Social 25% 25% 50%

Responsibility

Principle 5 – Health and 25% 25% 50%

Safety

Principle 6 – Agricultural 40% 10% 50%

Best Practices

Principle 7 – 25% 25% 50%

Environmental
Responsibility

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