Project detail - Sucres et Denrees S.A

Who is our prospective customer?

SUCDEN Côte d’Ivoire (“SUCDEN-CI” or the “Company”) sources cocoa beans in Côte d’Ivoire and is wholly owned by SUCDEN S.A., a global agricultural commodity trader with more than 70 years of experience. SUCDEN-CI does not own any farms, nor is expected to own any farm as part of this financing. The beans are sourced from smallholder farmers who are either members of cooperatives or sell to the same intermediaries every year.

What is our funding objective?

The proposed financing package is part of an EUR 240mln IFC-led facility (B-loan) and will be used to finance the procurement and export of 100% traceable cocoa beans from Côte d’Ivoire.

Why do we want to fund this investment?

With this facility, SUCDEN-CI will be able to continue and further expand its origination activities of traceable cocoa beans from Côte d’Ivoire. The investment will be partly labeled Green (SDG 13) and fully labeled Reducing Inequalities (SDG 10), as the company plays an important role in improving the living standards of smallholder farmers, and most of the cocoa beans sourced by SUCDEN-CI are certified by the Rainforest Alliance.

What is the Environmental and Social categorization rationale?

The E&S category for this project is classified as A, as defined by FMO's Sustainability Policy, aligning with IFC's categorization as A. Given that this is a B-participation for FMO, FMO follows the lead of IFC in its E&S due diligence on the company. The following is copied from IFC's disclosure website (https://disclosures.ifc.org/project-detail/SII/50076/sucden-ii), which can also be consulted for additional information: This is a Category A project according to IFC's Policy on Environment and Social Sustainability (2012). Key E&S risks and issues associated with this investment are the same as those for #47216 and are: (i) The robustness of SUCDEN’s E&S and Supply Chain risk assessment and implementation effectiveness of its Environmental and Social Management System (ESMS) for its direct operations (e.g., warehouses) and cocoa sourcing operations in CDI, including gender-based violence (GBV) risks; (ii) The E&S capacity/competency to ensure timely implementation of SUCDEN’s Sustainable cocoa sourcing strategies up to and including September 2028 in CDI; (iii) Provision of fair and safe working conditions in line with PS2 and local labor requirements for direct workers and contractors of SUCDEN-CI; (iv) The efficacy of the risk assessment of its primary cocoa suppliers, including effective implementation of SUCDEN’s Supplier Code of Conduct, risk assessment procedures of its cocoa sourcing, and annual independent verification of compliance with SUCDEN and off-takers’ sustainability requirements, including avoidance of risks associated with child/forced labor, significant safety hazards (such as use of pesticides), and risks of conversion of Natural and/or Critical Habitats to farmland to be used for cocoa production; (v) The effectiveness of emergency preparedness and road safety policy and procedures; and (vi) The implementation of a Stakeholder Engagement Plan and Community Grievance Mechanism in CDI.