Retailer Cocoa Collaboration

In September 2019, the ALDI SOUTH Group joined the newly-formed Retailer Cocoa Collaboration (RCC) which commits to support the Cocoa and Forests Initiative. This initiative will drive change by protecting and restoring forests in Cote d’Ivoire, Ghana and Colombia. The RCC will also map collective cocoa supply chains to gain a greater understanding of the social and environmental risks found in production countries. The trader assessment conducted by RCC will also provide us with greater transparency and insight into lower supply chain tiers.

Fairtrade cocoa project in Côte d'Ivoire

Since 2020, the ALDI SOUTH Group and Fairtrade  have been collaborating on a project in Côte d’Ivoire to improve working conditions and livelihoods for local cocoa farmers. The project analyses the impact of ALDI’s business operations on the community and environment, increases traceability of our cocoa products and provides a basis for further projects together with Fairtrade. As part of the project, ALDI’s business partner will source cocoa beans which are 100% traceable from the selected cooperative for our cocoa-based products.

International goal

Together with our business partners, we are committed to standards that achieve long-term sustainable improvements in the cultivation of cotton. We will ensure to use 100% sustainable cotton for our ALDI-exclusive garments and household textiles by 2025.

We prohibit our business partners from using cotton sourced from countries where cultivation and harvesting are systematically associated with human rights violations, such as Uzbekistan and Turkmenistan.

Fairtrade project on cottonseed

Since 2018, ALDI SOUTH Germany has been supporting the Fairtrade project in Tajikistan and Kyrgyzstan. The project aims to empower smallholder farmers and to improve the quality and supply of cotton from Central Asia.

To reach the project goal the following measures are implemented:

• Training for farmers on seed production and multiplication
• Actions to combat GMO-contamination
• Enlargement of cultivable acreage for organic cotton and yield
• Knowledge management and sharing

© Fairtrade / Didier Gentilhomme

Plastic Bank is a social enterprise that makes plastic a currency. It helps to reduce packaging waste in the environment and at the same time fights poverty. Carelessly disposed plastic is collected and reprocessed into secondary raw material. Manufacturers which produce packaging or textiles can purchase these materials and reinsert it into more sustainable and socially ethical products. 

ALDI supports Plastic Bank both with funding and through our international carbon offsetting in collaboration with ClimatePartner.

Roundtable on Sustainable Palm Oil: Smallholder Standing Committee

A significant share of the globally traded palm oil is produced by smallholders. In order to account for these smallholders within the scope of our commitment to using only sustainable palm oil, we purchase RSPO Independent Smallholder Credits to support their work and participate in the RSPO Smallholder Standing Committee in order to further support and integrate smallholders.

Palm oil smallholder project in Côte d'Ivoire (2017-2020)

Since 2017, the ALDI SOUTH Group, together with ALDI Nord have been supporting a smallholder project in Côte d'Ivoire in order to pave the way for sustainable cultivation of palm. In close cooperation with our NGO partner Solidaridad, we have developed a project focussing on the protection of natural forests and environmentally friendly cultivation methods. Solidaridad offers training for 3,200 smallholders on forest protection as well as resource and environmentally friendly cultivation methods, which are compatible with resource conservation requirements.

Palm Oil Transparency Coalition (POTC)

As part of the Palm Oil Transparency Coalition, we engage and review the major international importers of palm oil to determine how they are tackling deforestation and exploitation in their palm oil supply chains. Our approach aims to promote transparency and encourage progress beyond certification.

Retailer Palm Oil Group (RPOG)

As a Retailers' Palm Oil Group (RPOG) member, we engage in a non-competitive coalition of companies who have the common aim of making the use of sustainable palm oil across all relevant supply chains the norm.

Retail Soy Group RSG

As member of the Retail Soy Group, we collaborate pre-competitively with other retailers in order to increase the availability of sustainable soy feed and remove deforestation from our soy supply chain.  We collaborate to find industry-wide solutions for soy for their animal feed and human food supply chains. The RSG focuses on four major topics:

• identify and support clean suppliers
• implement regional approaches
• enhance the credibility of certification standards
• unlock transparent supply chains

Collective Soy Reporting (CSR)

Since 2018, we participate in the Collective Soy Reporting together with a group of other retailers to

• quantify the amount of soymeal present in animal feed used in 2018
• Identify where the soy was produced
• determine whether any of the soymeal carried a recognised deforestation free production certification

Overall, more than 230 livestock producers, packers, and manufacturing suppliers fed into the report.

Based on the results, we engage with relevant stakeholders and develop appropriate measures to increase the share of deforestation-free soy in our supply chain.

According to our CR Principles, the ALDI SOUTH Group is striving to be a carbon-neutral company. Following a significant reduction of greenhouse gas (GHG) emissions and the use of renewable energy across the Group, several ALDI SOUTH countries are climate neutral. Carbon offsets make up for the rest by funding environmental projects.

To continue to deliver against our broader climate target, we are supporting the following environmentally-focused projects:

Fight against plastic

‘Plastic Bank’ fights against the increasing amount of plastic in the world‘s oceans by offering money for plastic. This project prevents plastic from getting into the sea in the first place. The plastic is then recycled and turned into so-called ‘social plastic’, which is then recycled into new products. At the same time, a wind farm project in the Philippines is supported to realize the actual reduction of carbon emissions.

Countries: Philippines, Indonesia, Haiti

Forest protection

This project is offering land to small farmers instead of soy plantations. The aim of the project is to continue to preserve the rainforest and to provide the inhabitants of the rainforest - the “Ribeirinhos” - with land rights. This secures the livelihood of the local residents and saves around 3,000 hectares from deforestation.

Country: Brazil

Solar energy

The project funds two solar power plants in southern India. The plants produce an average of 95,000 MWh per year - which equates to delivering electricity to over 17,000 households throughout the year. In addition, the operators of the plants are involved in various initiatives aimed at positively impacting the welfare of the local community.

Country: India

Clean energy

The cultivation of rice is an important source of income in India. Traditionally, the grain is peeled in mills and the waste husks are composted or burned in the open. Now they will be collected, transported to two power stations and used to generate electricity by biomass.

Country: India

Further projects are additionally supported on national level.   

In 2019 ALDI SOUTH Germany and HOFER S/E started a project together with the Forest Stewardship Council (FSC) in Namibia to ensure 100% deforestation-free charcoal. Charcoal is a major driver of illegal deforestation in Africa and South America. In Namibia, large parts of land are affected by the spread of thorn bushes that decrease biodiversity, groundwater supply, and farmland productivity. These bushes usually are removed in an unsustainable manner with the use of fire and chemicals.

The aim of the project is to use these bushes to produce sustainable charcoal. Together with our partner FSC, we promote the sustainable production of charcoal and work with farms towards their certification according to the FSC Forest Management standard. Besides the ecological aspect, the FSC certification also ensures minimum social standards for the workers during the bush harvest. From logging to production and packaging: all the work steps are carried out locally, creating jobs, especially in rural areas. Compliance with these environmental and social standards is regularly checked by independent auditors. 

It is important to us that garment and household textiles, which are a regular component of our weekly special buys, are produced in an environmentally and socially sound way. Our goal for the future is to further expand our range of sustainable textiles and create even greater transparency in ALDI’s supply chain.

Most of our textile products are manufactured in production facilities in Asia. Our Corporate Responsibility (CR) team works closely with our textile business partners to support them in the implementation of our CR standards. Additionally, our colleagues based in Hong Kong and Bangladesh are frequently in the production facilities to assess the conditions on the ground. While we strive to improve working conditions in our production facilities, we also look at other stages of our supply chain, from cotton production over spinning to dyeing and finishing of garments.