Erste Asset Management

Together against grievances in cacao cultivation

Together against grievances in cacao cultivation
Together against grievances in cacao cultivation
Share post:

Every European consumes an average of 5.2kg of chocolate per year. While demand keeps rising, climate change and social problems in connection with the main ingredient, cacao, represent a clear challenge. Erste Asset Management is part of the initiative “CocoaAction”, a worldwide group of investors who are committed to the sustainable production and improved working conditions and standard of living of cacao farmers and their families. In this interview, Stefan Rößler, ESG investment analyst with Erste Asset Management, tells us what this initiative is all about and how it fights deficiencies and grievances in cacao production.

Stefan Rößler, ESG-Investmentanalyst bei Erste Asset Management

Stefan Rößler, ESG-Investmentanalyst bei Erste Asset Management

Stefan Rößler, Erste Asset Management is member of the initiative „CocoaAction“. Can you tell us more about that?
Rößler: The demand for chocolate and thus for the raw material cacao is on the rise, as also reflected by the cacao price, which has pretty much doubled since mid-2011. As a result, the raw material cacao has drawn some attention from global investors. We, from Erste Asset Management, are convinced that a due form of management in environmental, social, and governance aspects across all sectors also comes with positive ramifications for companies, and thus for the portfolio of their investors. Therefore the improvement of the social and environmental conditions in cacao production quite frankly is in line with the best interest of our investors, and thus in our own best interest. We are not alone with this insight and are therefore members of the “CacaoAction” initiative, along the lines of the idea that we are only strong united. Investors with total assets of USD 530bn just have a stronger clout.

What are the social problems that we see in the cacao industry?
Rößler: The main issue are the working conditions and the standard of living of workers on cacao farms, which also directly affect their families. In order for the social situation to improve, wages have to be sufficient, and access to education has to be expanded, not the least for children. This goes hand in hand with the fight against child labour, which in this sector remains a big issue.

And how does the initiative address these deficiencies?
Rößler: Prior to taking concrete steps, intensive research is required. “CocoaAction” acts as driving force in the development of a method of measuring the income of cacao farmers and their families across various regions in relation to other agricultural products. In order to fight child labour the initiative is committed to the introduction of a system of monitoring and countermeasures in cacao cultivation regions. So as to facilitate children’s access to education, there is for example a collaborative project with the government of Ivory Coast, by which geographic gaps in the education system are to be disclosed and closed.



Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website A summary of the investor rights is available in German and English on the website and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

Leave a comment Required fields are marked with *

Your email address will not be published. Required fields are marked *