Tony’s core values

When it comes to Tony’s mission, impact strategy is what we do and culture is how we make it
happen. We lead with 4 core values: an entrepreneurial spirit and an outspoken attitude, a willful
push for change and that cheeky something extra that always makes you smile. These guide Tony’s
internal compass as we push towards a 100% slave-free chocolate industry.

Page 29

creating awareness

The FAIR featured a panel of top-notch speakers with powerful voices and visions to reduce global
inequality. Among them were actor, director and UN Goodwill Ambassador Idris Elba, economist and
creator of ‘doughnut economics’ Kate Raworth, Dutch rapper, poet and actor Akwasi, who fights for
change through active conversation and ongoing commitment to a fairer world, and filmmaker, poet
and visionary creative David Boanuh. Golden Seeds with David Boanuh We think the most impactful
Tony’s content comes from platforming visionary voices instead of speaking for them. That’s why
David Boanuh got free rein from Tony’s to produce a documentary film featuring Ghanaian cocoa
farmers’ own perspectives, which are rarely represented in international media.

Page 95

Tony’s Vision

In our continued endeavor to make our vision of 100% slave-free chocolate a reality, we follow the 3
pillars of our roadmap: creating awareness about illegal labor in the cocoa industry, leading by
(scalable) example to prove slave-free chocolate is possible from bean to bar, and inspiring Big Choco
to act and take their responsibility for creating a slave-free chocolate industry as seriously as we do.
In order to spur Big Choco into action, this year we launched our Sweet Solution campaign. Bars
inspired by famous chocolatey flavors, this time produced according to Tony’s 5 Sourcing Principles.

It feels good to put everything into a company that strives to make the world a better place, and
which – as far as I see it – actually puts its money where its mouth is. We’re an impact company that
makes chocolate, and not the other way around. Our vision is clear: 100% slave-free chocolate. And
not just our chocolate, but all the chocolate produced around the world. Only together can we make
this the norm. And chocolate is a gift! One you give yourself, or to others. But one fact that is too
often ignored is that these gifts impact the lives of cocoa farmers and their families. It’s absurd that
there are people forced to live in poverty as a result of an unfair value chain, when this reality could
be altogether avoided.

Page 7

The central focus of Tony’s Chocolonely remains our vision, which our Impact, Serious
Communications and Product Management teams will continue to protect and promote. Country
teams will focus on spreading the word about our mission to a wider public, and Homebase will act as
a facilitator across the markets. In the coming year we aim to continue significant international
growth, and we’ve set our sights on the strengthening of our relationship with clients and consumers.
At the end of the day, turning setbacks into opportunities is what longterm growth is all about. We’ll
increase our market share in the NL market again. And alongside growth in the US, UK and DACH,
we’ll continue to promote expanded distribution. These and other targets form part of an ambitious –
but achievable – 3-year plan in which I have total faith. Tony’s Chocolonely is well on its way to
making major and disruptive international impact, especially through Open Chain. Thank you for this
past year. Thank you, because without all of you, I couldn’t have dreamed that what we’ve
accomplished could be possible. On behalf of the Chiefs, Henk Jan

Page 8

our fight for equality for and fairness

at Tony’s we’ve got a vision of equality across the entire supply chain. A future where all cocoa
farmers earn at least a living income. Where all children can access education and spend their time
learning and playing. Everyone gets a fairer share and consumers rest easy knowing a sweet treat
doesn’t come at the cost of human rights violations. In this Annual FAIR Report we’ll outline our plan
of action to make this happen. The Annual FAIR Report is our chance to take serious stock, crunch the
numbers and report back. You’ll read about specific issues in the cocoa sector and Tony’s impact in
general. We’ll reflect on things we managed to achieve this year and highlight those that haven’t
worked out (yet). We’ve been fighting this fight for 15 years now, and there’s still a lot to be done to
make 100% slave free the norm. We believe inequality is fueled by an unchecked focus on maximizing
profits at all costs – even human rights violations. This leads to an opportunity gap between the rich
and the poor that’s growing progressively wider almost everywhere on earth. What’s important to
remember is that poverty’s got many causes that are interlinked. We need a new way of doing
business if the system’s ever going to change. In this report we’ll break down our plan and catch you
up on the ins and outs of the chocolate industry, while specifically flagging what needs to happen to
change persisting inequality.

Page 11

Spread the word on modern slavery in cocoa

Modern slavery and child labor are 2 separate issues. Our mission is 100% slave-free chocolate, so
let’s begin there. Modern slavery is still a problem in the cocoa industry. Adults and children are
forced to work on cocoa farms without pay. We believe that modern slavery in all its forms is
unacceptable, but we also know the term is jarring – so we want to make ourselves clear.

We’ve used the term more broadly in the past but for now we only ever use it in combination with
the word ‘free’, like the ‘slave free’ on our chain button. For now the phrase powerfully sums up our
mission to eradicate child and forced labor from the cocoa supply chain. It’s not perfect but it’s
powerful – and the conversation’s ongoing

Page 15

Modern slavery and child labor are not the same.

We’re constantly on the lookout for both in our supply chain because both are very real and possible
in the places where we source our cocoa. And while we’ve never found any cases of modern slavery
in our supply chain, we do find cases of child labor. But before your alarm bells go off, know this:
finding cases of child labor in the supply chain means change is happening. We want to find the
children performing illegal labor. Only then can we work with the families to address the problem.
Modern slavery and child labor in the cocoa sector are driven by a variety of factors related to global
and systemic economic imbalance. But in short – and we’ll keep hammering it home ‘til something
changes! – the root cause is clear: poverty. It’s our mission to change this and create a slave-free
cocoa sector. But this goal demands a strategic plan. We’re an impact company that makes chocolate
– not the other way around. That’s why we’ve laid out a roadmap towards lasting, positive change.

Page 17
creating value, connecting the dots

At Tony’s we track value creation – the nuts and bolts of impact – across our entire supply chain. All in
service of our mission, of course. The nitty-gritty can seem a little complicated at first. So let’s take it
step-by-step. ever since Tony’s birthed our first bright red bar, creating positive impact has been our
main goal – from cocoa sourcing to chocolate sales. We exist to serve our mission to make 100% slave
free the norm in chocolate. What’s our strategy to realize our mission in practice? The simple answer:
our roadmap. The 3 pillars of Tony’s roadmap Creating awareness For change to happen, everyone’s
gotta be aware of current problems, possible solutions and the role we each play. We want farmers
who grow cocoa to be aware of the rights of children that need protecting. And we need Choco Fans
to be aware of the inequality wrapped up in some of their favorite sweet treats. When consumers
and retailers ask questions and demand fair chocolate, companies are pressured to take
responsibility. Leading by example By showing it’s possible to do chocolate different, we rid the
market of excuses. We’re commercially successful while maintaining traceability, paying a higher
price, investing in long-term partnerships and GPS mapping, achieving carbon neutrality and lots
more! It can be done. Inspiring action And we’re just getting the ball rolling. Because Tony’s loves
impact as much as we love chocolate (if you can believe it). Whether it’s other companies or
governments, any and all are welcome to follow us, copy us or even improve our business model. And
no matter where you’re at on the road towards impact, each of our roadmap’s pillars points towards
the slavery-free button. Because our ultimate aim is mission completion! Which is possible, too. Last
year we – for the first time ever! – visualized our strategy in action. And this year we’ve worked on an
improved visual. Watch this space for an even better visualisation next year.

Page 19

Our long-term success and the achievement of our mission depend on our ability to create value for
each stakeholder in the supply chain. If you follow along from cultivation to that first chocolatey bite,
you’ll meet: cocoa farmers, the cooperatives, the processors and manufacturers, then the chocolate
companies, retailers, chocolate-munching consumers and, of course, the governments.

This year’s results reflect alignment between us and all our stakeholders on the issues nearest and
dearest to our mission. That’s because we’ve listened and adapted to input through the years. And
the survey results directly shape our strategy and reporting practices.

Page 23

We took a close look at our senior leadership team to make sure its structure still serves our mission
of making 100% slave free the norm in chocolate. And we’ve decided to change some things around.
As Tony’s becomes a bigger and more international player, we require more targeted decision-
making. That’s why we’ve upped our number of Chiefs (Tony’s fearless leaders) to ensure each of our
organization’s focus areas is covered. For example, the all-star Anne-Wil will actually be replaced by 2
new Chiefs.

Page 31

Our mission: to make 100% slave free the norm in chocolate together. Our roadmap lays out our
current plan, but the clincher’s our third pillar: inspiring others to act. We know our mission won’t
succeed unless we bring other companies on board. Including Big Choco.

That’s why we started Tony’s Open Chain. An industry-led, collaborative initiative that helps
companies exceed sustainability targets and transform the cocoa supply chain. Our blueprint for
industry change lays the groundwork for adopting Tony’s 5 Sourcing Principles. The initiative’s
necessary because the current industry model operates on a ‘take the money and run’ mentality:
corporate anonymity and maximized profits. The sustainability initiatives that do exist rarely lead to
collaborative solutions. Tony’s Open Chain is our invitation to do things differently and create impact
together. We’re proud to have already onboarded 4 mission allies – which is what we call companies
that join us in our fight.

Page 91

5 Sourcing Principles

The Tony’s model aims to change the chocolate industry from within. But we also love to make noise
about how important it is to change the legal system that determines the industry’s inner workings.

The main issues in cocoa – a lack of a living income, deforestation and illegal labor – are all
interlinked. Problem solving requires both a birds-eye view and on-theground insight. So what’s our
solution? Here’s where our rights-based way of doing business comes in: Tony’s 5 Sourcing Principles.
An integrated approach that aims to end structural poverty at the very beginning of the supply chain.
All 5 Principles must be combined to ensure long-term change and more equal business relationships
with suppliers in West Africa.

All of our 5 Sourcing Principles combine to guarantee fair cocoa. It all starts with traceability across
the entire supply chain. This is key to ultimately taking responsibility. Because harvesting cocoa beans
doesn’t happen in a vacuum. We believe every chocolate company is responsible for knowing the
social, environmental and logistical story behind each ounce of cocoa that ends up in their chocolate.
Only then can we all start to raise the bar together.That means there are different forms of
traceability: social, environmental and operational

The first ever Tony’s Chocolonely bars were produced in 2004 by Althaea-De Laet Int. in Borsbeek,
Belgium. Last year we acquired that company from Mrs. De Laet, Mr. De Laet, Ingrid and Alain. And
our partnership will continue. We are saddened, however, to report that the founder of Althaea-De
Laet, Mr. Wilfried De Laet, passed away during the process of our acquisition. He will be missed by all
during these next steps on our journey together. In our continued endeavor to make our vision of
100% slave-free chocolate a reality, we follow the 3 pillars of our roadmap: creating awareness about
illegal labor in the cocoa industry, leading by (scalable) example to prove slave-free chocolate is
possible from bean to bar, and inspiring Big Choco to act and take their responsibility for creating a
slave-free chocolate industry as seriously as we do. In order to spur Big Choco into action, this year
we launched our Sweet Solution campaign. Bars inspired by famous chocolatey flavors, this time
produced according to Tony’s 5 Sourcing Principles.

Tony’s Goal:

We’re Tony’s Chocolonely. An impact company that makes chocolate and fights for equality in the
chocolate industry. We exist to make 100% slave free the norm in chocolate. Not just our own, but all
chocolate worldwide. Because the system is broken and it’s up to chocolate companies to fix it. And
the only way to make this happen is by working together. All key players in the chocolate industry
need to roll up their sleeves and work collectively to reach this ambitious – but necessary – goal.

At Tony’s we align our vision with the United Nations’ Sustainable Development Goals (SDGs). They
provide a blueprint for peace and prosperity for people and the planet, and address complex
problems that farmers, their families and individuals forced into modern slavery face every day. The
need to eradicate illegal labor is urgent. And it’s also possible.
ever since Tony’s birthed our first bright red bar, creating positive impact has been our main goal –
from cocoa sourcing to chocolate sales. We exist to serve our mission to make 100% slave free the
norm in chocolate.

Whether you choose a red bar or blue bar, we want to create a fairer cocoa sector for every
stakeholder. But in order to put plans into action and value to the test, we’ve gotta ensure goals are
aligned across the value chain. That’s where materiality assessments come in. Each year we ask our
many stakeholders what they consider the main issues that need addressing. We plot all the issues on
a materiality matrix – which is impact-speak for points plotted on a graph. The matrix helps us
measure and keep track of the numbers over time. This year’s results reflect alignment between us
and all our stakeholders on the issues nearest and dearest to our mission. That’s because we’ve
listened and adapted to input through the years. And the survey results directly shape our strategy
and reporting practices. The common trend this year is across-the-board commitment to social topics
like reducing inequality and eliminating child labor and modern slavery. We align on environmental
topics like preventing deforestation and reducing CO2 emissions, as well as economic and governance
topics like ensuring a living income and pushing legislation. This means we’re on the same page, folks!

In March 2021 we adapted our performance management cycle too – it’s now called the Growth
Cycle. Instead of only looking back, we’ve got our sights firmly set on future development goals too.
In order to transform a culture of ‘fitting in’ we now cast all culture analysis through the joint lenses
of ‘job fit’ and ‘cultural add’ – to ensure each unique experience actively enriches company culture.
We’re also implementing feedback rounds twice a year. These include manager reviews, self-reviews
and peer feedback (so colleagues can gush about how great their team members are, too). This
process is separate from salary reviews. This ensures our ‘How You Doin’’ talks happen in safe
environments where everyone’s on the same page about the importance of safeguarded growth and
development. We want people who contribute to what Tony’s has yet to become. Who help shape
the future of culture at Tony’s, instead of fitting in on arrival. A culture of continuous conversation
means we keep on evaluating ourselves as we grow! Our Diversity, Equity & Inclusion Board was
formed in June 2020. Its members discuss current topics and make D&I recommendations specifically
related to ongoing anti-racist initiatives across the Tony’s value chain. We publicly and vocally address
inequality – both onstage at talks as well as in the media. And we’re committed to continued work on
our internal culture to ensure we’re constantly equipped to adapt.. so that every Tony belongs.

Our goal was to pay a premium to 10,000 farmers this year. We fell a bit short of that, with 8,921
farmers supplying cocoa to Tony’s and receiving their additional premiums. That’s because we didn’t
source from 1 of the co-ops we’ve worked with in the past (read more on Socoopacdi on p. 69). This
also meant, however, that we sourced more volume from our other partner co-ops last year.

Tony’s Objective

Our responsibilities for the audit of the financial statements Our responsibility is to plan and perform
an audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence
to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material misstatement, whether due to fraud or
error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high but
not absolute level of assurance, which makes it possible that we may not detect all material
misstatements. Misstatements may arise due to fraud or error. They are considered to be material if,
individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
Doing the work with B Corp 5 Benelux B Corps – Tony’s Chocolonely, Mud Jeans, Nextview, The
Terrace and the Sustainable Recruiter – also joined forces to form the Anti-Racism Pro-Inclusion
working group. The objective? To help business communities reflect society by launching initiatives
that have real, lasting impact. The group uses the concept of JEDI – justice, equity, diversity and
inclusion – as its guide. The group tackles both antiracism, which is the dismantling of structural
systemic racism, and pro-inclusion – ongoing action to create space for individual.

In 2021 we did an unconscious bias training for all Tonys. Our main takeaway? If you’ve got a brain,
you’ve got biases. There’s no one-stop shopping when it comes to Diversity & Inclusion. No one-size-
fits-all solution. But there are evidence-based steps we can take to be and do better. We kicked off a
collaboration with the Dutch Ministry of Social Affairs & Employment, who’ve helped us make our
recruitment process more objective. We’re working hard to formalize an unbiased hiring strategy and
we’ve revamped the way we write job listings to make them more inclusive. Internally we aim to
combat biases by making inclusive language – like clarified pronoun usage – the norm. In addition to
identityspecific language, entry interviews are conducted by a diverse panel of interviewers
representing a range of internal teams, gender identities, nationalities and seniority levels. Which
means there is a seat at the table for any potential team player.

Strategy:

It’s our mission to change this and create a slave-free cocoa sector. But this goal demands a strategic
plan. We’re an impact company that makes chocolate – not the other way around. That’s why we’ve
laid out a roadmap towards lasting, positive change.

What’s our strategy to realize our mission in practice? The simple answer: our roadmap. The 3 pillars
of Tony’s roadmap Creating awareness For change to happen, everyone’s gotta be aware of current
problems, possible solutions and the role we each play. We want farmers who grow cocoa to be
aware of the rights of children that need protecting. And we need Choco Fans to be aware of the
inequality wrapped up in some of their favorite sweet treats. When consumers and retailers ask
questions and demand fair chocolate, companies are pressured to take responsibility. Leading by
example By showing it’s possible to do chocolate different, we rid the market of excuses. We’re
commercially successful while maintaining traceability, paying a higher price, investing in long-term
partnerships and GPS mapping, achieving carbon neutrality and lots more! It can be done. Inspiring
action And we’re just getting the ball rolling. Because Tony’s loves impact as much as we love
chocolate (if you can believe it). Whether it’s other companies or governments, any and all are
welcome to follow us, copy us or even improve our business model. And no matter where you’re at
on the road towards impact, each of our roadmap’s pillars points towards the slavery-free button.
Because our ultimate aim is mission completion! Which is possible, too. Last year we – for the first
time ever! – visualized our strategy in action. And this year we’ve worked on an improved visual.
Watch this space for an even better visualisation next year.

That’s where materiality assessments come in. Each year we ask our many stakeholders what they
consider the main issues that need addressing. We plot all the issues on a materiality matrix – which
is impact-speak for points plotted on a graph. The matrix helps us measure and keep track of the
numbers over time. This year’s results reflect alignment between us and all our stakeholders on the
issues nearest and dearest to our mission. That’s because we’ve listened and adapted to input
through the years. And the survey results directly shape our strategy and reporting practices. The
common trend this year is across-the-board commitment to social topics like reducing inequality and
eliminating child labor and modern slavery. We align on environmental topics like preventing
deforestation and reducing CO2 emissions, as well as economic and governance topics like ensuring a
living income and pushing legislation.

We kicked off a collaboration with the Dutch Ministry of Social Affairs & Employment, who’ve helped
us make our recruitment process more objective. We’re working hard to formalize an unbiased hiring
strategy and we’ve revamped the way we write job listings to make them more inclusive. Internally
we aim to combat biases by making inclusive language – like clarified pronoun usage – the norm. In
addition to identityspecific language, entry interviews are conducted by a diverse panel of
interviewers representing a range of internal teams, gender identities, nationalities and seniority
levels. Which means there is a seat at the table for any potential team player

too – it’s now called the Growth Cycle. Instead of only looking back, we’ve got our sights firmly set on
future development goals too. In order to transform a culture of ‘fitting in’ we now cast all culture
analysis through the joint lenses of ‘job fit’ and ‘cultural add’ – to ensure each unique experience
actively enriches company culture. We’re also implementing feedback rounds twice a year. These
include manager reviews, self-reviews and peer feedback (so colleagues can gush about how great
their team members are, too). This process is separate from salary reviews. This ensures our ‘How
You Doin’’ talks happen in safe environments where everyone’s on the same page about the
importance of safeguarded growth and development. We want people who contribute to what Tony’s
has yet to become. Who help shape the future of culture at Tony’s, instead of fitting in on arrival. A
culture of continuous conversation means we keep on evaluating ourselves as we grow! Our Diversity,
Equity & Inclusion Board was formed in June 2020. Its members discuss current topics and make D&I
recommendations specifically related to ongoing anti-racist initiatives across the Tony’s value chain.
We publicly and vocally address inequality – both onstage at talks as well as in the media. And we’re
committed to continued work on our internal culture to ensure we’re constantly equipped to adapt..
so that every Tony belongs.