By Lauriane KRASKOWSKI, Credit and ESG Analyst, Crédit Mutuel Asset Management is an asset management company of Groupe La Française, the holding company of the asset management branch of Crédit Mutuel Alliance Fédérale.
Whether in bars, ganache or bite-sized morsels, chocolate is enjoyed, savored, and shared. Yet beneath the sweetness lies a bitter reality: a product that carries a high ecological and social price.
Growing demand… and shrinking forests
With an average annual consumption of 6 kilograms of chocolate per person in France and global demand rising by 2 to 5% each year, the cocoa industry is rapidly expanding. This growth has driven intensified cultivation, particularly in Côte d’Ivoire and Ghana, which together produce nearly 60% of the world’s cocoa . However, this surge in consumption comes at a cost: confronted with extreme poverty, producers are compelled to clear new fertile land. In Côte d’Ivoire, for instance, forests that once covered much of the country now account for less than 10% of the national territory.
The climate pays a steep price as well
This relentless pursuit of productivity comes with a significant environmental cost. Worldwide, deforestation is responsible for approximately 20% of greenhouse gas emissions , with this figure rising to nearly 25% in West Africa. Furthermore, cocoa plantations—typically arranged in monoculture rows—lack plant diversity, making them especially susceptible to diseases and climate-related stresses that can severely impact bean yields. In 2023 and 2024, harvests were dramatically affected by a series of extreme weather events, including heavy rains, sudden droughts, and the spread of diseases like brown rot, leading to a sharp decline in Ivorian cocoa production.
Consequently, cocoa prices have surged due to the reduced supply. Between January 2023 and January 2025, the price per tonne of cocoa beans soared by 365%, hitting a record $12,000 per tonne by the end of 2024. This price increase was promptly passed on to consumers, with the price of Easter chocolates rising by an average of 14% year-on-year in March 2025.
Behind the bean, lives are sacrificed
Beyond the environmental toll, a severe human crisis is unfolding on cocoa plantations. In Côte d’Ivoire, for instance, the average income of producers can be less than one dollar per day — an extreme level of poverty that forces many families to depend on child labor. It is estimated that over 800,000 children work on cocoa farms, representing one in three children in cocoa-producing regions .
While the recent rise in cocoa prices has provided some relief to producers, this progress remains insufficient to sustainably lift families out of poverty and eradicate deeply entrenched practices. Without structured support and ambitious policies, the vicious cycle of poverty and child labor is likely to persist.
Rethinking Our Consumption
So, what can be done? One approach is to consume more responsibly. Contrary to popular belief, dark chocolate—often praised for its purity—has a higher carbon footprint than milk or white chocolate. This is due to its higher cocoa content, which increases the product’s environmental impact. Producing one kilogram of dark chocolate generates on average 17.11 kg of CO₂e, compared to 12.74 kg for milk chocolate and 11.32 kg for white chocolate .
Some recommend choosing certified chocolates (organic, fair trade, etc.). However, caution is necessary: not all labels are created equal. Some certifications lack rigorous oversight. Although organic cocoa—grown without pesticides or chemical fertilizers—is beneficial for biodiversity, it often results in lower yields. This may tempt some producers to clear more land, potentially accelerating deforestation.
Beyond individual choices, political initiatives are beginning to take shape. In 2024, the European Union adopted two new regulations: the EU Deforestation and Forest Degradation Regulation (EUDR) and the Corporate Sustainability Due Diligence Directive (CS3D). These laws require certain large companies operating in the EU to prevent and mitigate human rights and environmental violations throughout their operations, including those of their foreign suppliers. Practically, this means chocolatiers have a duty of care if evidence of child labor is found among their subcontractors.
However, this progress is far from assured. In 2025, the CS3D was partially weakened by the “Omnibus” package—a series of European legislative reforms in which several Member States negotiated significant relaxations of due diligence obligations. Concessions included raising the threshold for application, excluding many intermediary companies, and weakening mandatory sanctions. These changes have sparked serious concerns among NGOs and human rights advocates, who warn of a regression under pressure from industry lobbyists.
Moving Toward More Ethical Chocolate
Despite considerable social and environmental challenges, it is not a question of giving up chocolate or discrediting the cocoa industry. Instead, this insight seeks to shed light on the cocoa value chain by highlighting critical issues that require attention. It is essential to reevaluate the entire production chain and make more conscious purchasing decisions, paying close attention to product origins, certifications and the social responsibility commitments of brands. Change must also happen at the level of public policy and major corporations. Enhancing the livelihoods of producers, enforcing stricter labor standards and preserving the remaining forests are key levers to transform chocolate into a more ethical and sustainable indulgence.
This commentary is provided for information purposes only. The opinions expressed by La Française are based on current market conditions and are subject to change without notice. These opinions may differ from those of other investment professionals. The information contained in this publication is based on sources considered reliable, but the La Française group does not guarantee that it is accurate, complete, valid, or relevant. Published by La Française Finance Services, head office located at 128 boulevard Raspail, 75006 Paris, France, a company regulated by the Autorité de Contrôle Prudentiel as an investment services provider, no. 18673 X, a subsidiary of La Française. Crédit Mutuel Asset Management: 128 Boulevard Raspail, 75006 Paris is an asset management company approved by the Autorité des marchés financiers under n° GP 97 138 and registered with ORIAS (www.orias.fr) under no. 25003045 since 11/04/2025. Public Limited Company (Société Anonyme) with share capital of €3,871,680, RCS Paris n° 388 555 021.