Despite cocoa prices having nearly doubled their 2023 levels, the chocolate industry faces growing financial risks from the interconnected challenges posed by climate change, price volatility, and child labor. For large chocolate producers dependent on a stable cocoa supply chain, ensuring climate resilience and human rights due diligence is essential. 

This report examines the links between climate change and human rights in the cocoa industry, using Morningstar Sustainalytics’ ESG Risk Ratings data to assess how major producers are managing risks.

Readers of this report will learn:

• What’s driving the rise in cocoa prices globally. 
• How climate stress and price instability impact cocoa farmers and raise child labor risks.  
• The actions companies are taking to identify and remediate child labor risks in the cocoa supply chain.  
• How climate adaptation and sourcing strategies can help companies hedge against price volatility and secure long-term supply. 
  
  

Download the report for full details.