September 30, 2024 (press release) –
On the eve of International Cocoa and Coffee Days, the Touton group releases its 2023-2024 Sustainability Report to celebrate resilience and continuous systems’ transformation.
Last year, market conditions for tropical commodities were unprecedented: vanilla demand collapsed, coffee faced its third consecutive year of deficit, and cocoa prices soared to unprecedented levels. These three commodities account for over 95% of Touton’s global trading volumes, challenging all aspects of the group’s operations: from financing to sourcing, quality to logistics.
The 2023-2024 extra-financial performance report explains the crucial role played by Touton’s combined expertise as a trader and supply chain manager to stay the course.
- The unique synergies between trading and market intelligence teams allowed for proper anticipation and management of risk exposure;
- The proven agility of the group’s sourcing and operations teams ensured timely deliveries of products to agri-food industrial players worldwide;
- Touton’s long-standing trust relationship with partnering banks and financial institutions allowed the company to secure the exceptional credit lines needed to finance supply chain operations;
- With active offices and sustainability programmes across major cocoa and coffee sourcing countries, the group’s long-term proximity with producers and local trade actors facilitated the procurement of beans to honor all contracts
Patrick de Boussac, CEO of the Touton group said:
“This year will go down in history for the tropical agricultural commodities we trade. More than ever, our core trading activities were put to the test. Thanks to our experience, our knowledge of the field, and our ability to adapt, we were able to keep our promise: to fulfill our contracts and deliver to all our customers. Despite the challenging context, we did not slow down the necessary systems’ transformations to meet the regulatory and contractual requirements of our sectors, starting with formalising our new CSR and climate strategies.”
Trust doesn’t develop overnight, and this year’s market turmoil did not distract the company from the necessary system adaptations required to positively accompany the sustainable transformation of its tropical ingredients supply chains.
Touton has been formalising key building blocks to maintain excellence across its operations:
PACT is based on Touton’s vision of what trade looks like in the future. Founded on 175 years of experience and aligned with the United Nations Sustainable Development Goals, the Positive Agri Culture sets clear objectives: fostering POSITIVE GROWTH, building a RESILIENT AGRI-INDUSTRY, and cultivating a CULTURE OF TRUST. It serves as a unifying force, embodying the Touton group’s values and actionable strategies for engaging with stakeholders and ecosystems. This new framework underpins the group’s sustainability report and anticipates key aspects of the new Corporate Sustainability Reporting Directive.
- PACT STANDARD: TOUTON’S VERIFIED RESPONSIBLE SOURCING INSTRUMENT
PACT STANDARD was designed to build traceable, transparent, and sustainable supply chains for cocoa, coffee, vanilla, and tropical ingredients. With over 120 built-in verification points, the standard aligns with multiple certification criteria and complies with European and international regulatory requirements. PACT STANDARD programmes are tailored to the specific needs of each supply chain, addressing both the sustainable development goals of partner producers and communities and the responsible sourcing ambitions of agri-industrial companies. Programmes are audited annually by an independent third party and are recognised by the Global Coffee Platform (GCP) as equivalent to the Coffee Sustainability Reference Code 2nd party assurance.
Touton has officially committed to set near-term (by 2035) company-wide greenhouse gas (GHG) emission reductions to limit global temperature rise to 1.5 °C with the Science-Based Targets initiative (SBTi). With 93% of the group’s GHG emissions stemming from agricultural production, Touton aims to lead by example by enhancing the environmental performance of its direct operations. Additionally, the group will support supply chain actors in their climate transition by promoting low-carbon transportation, implementing a zero-deforestation policy, and enhancing the capacity of natural carbon sinks through agroforestry.
To ensure that cocoa or coffee sourced by Touton for the European market did not contribute to deforestation or forest degradation after 31/12/20, the group has developed its ground-truthed methodology matrix for risk assessment around traceability, deforestation, and legality. Touton mobilised talents across all departments and offices to establish good practices and reliable systems. By partnering with leading geospatial intelligence providers and training suppliers, the company ensures compliance at every level of the supply chain. Its EUDR compliance tools and practices are designed to deliver consistently, while enhancing responsible sourcing and sustainability efforts, without disrupting commercial operations.
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