Technologies Driving Ethical Sourcing in Tony's Open Chain

I. Introduction: The Technological Backbone of Ethical Cocoa Sourcing

A. Overview of Tony's Open Chain's Mission and the Imperative for Technological Intervention

Tony's Open Chain (TOC) has established a clear mission: to eradicate exploitation within the cocoa industry. This mission directly confronts systemic issues such as poverty among cocoa farmers, the prevalence of illegal labor including child labor, and the pervasive problem of deforestation linked to cocoa cultivation.1 The organization's approach is encapsulated in its 5 Sourcing Principles, which form the basis of a sourcing solution offered to companies aiming to proactively address these critical challenges within their cocoa supply chains.1

The persistence of these issues, which the broader cocoa industry has inadequately addressed, underscores the necessity for collaborative and scalable business models capable of driving meaningful change.1 In this context, technology emerges not merely as an auxiliary tool but as a critical enabler. The complexity of tracking agricultural products from remote farms through global supply chains, verifying ethical practices, and ensuring fair compensation necessitates robust technological interventions. Without such systems, claims of ethical sourcing and impact would be difficult to substantiate, particularly at the scale Tony's Open Chain aspires to achieve.

B. The Pivotal Role of Technology in Enabling Transparency, Traceability, and Impact

A foundational element of Tony's Open Chain's strategy is the deep integration of technology to foster transparency, ensure comprehensive traceability, and measure tangible impact. The organization emphasizes that a genuine understanding of the supply chain—knowing the farmers, the origins of the beans, and the associated social and environmental conditions—is "vital to taking responsibility and driving meaningful change".1 This commitment necessitates systems that can capture, manage, and verify data across multiple dimensions.

The report explicitly states that "Operational, social and environmental traceability are essential to Tony's Open Chain's commitment to transparency and accountability throughout the cocoa supply chain".1 This declaration sets the stage for a technological framework designed to deliver these multifaceted forms of traceability. The 5 Sourcing Principles—Traceability, A Higher Price, Strong Farmers, The Long Term, and Quality & Productivity—are not abstract ideals but are operationalized and verified through an interconnected suite of technologies. For instance, the "Traceability" principle is directly actualized through systems like BeanTracker and GPS polygon mapping.1 The "Strong Farmers" principle is supported by providing cooperatives with access to data and tools such as the Child Labour Monitoring & Remediation System (CLMRS).1 This indicates that technology is not an afterthought but a fundamental layer upon which the entire ethical sourcing model is built. The ability to meticulously track beans is indispensable for ensuring that a "Higher Price" reaches the intended farmers and that "Long Term" commitments are made with identifiable and monitored partners.

The following table provides an overview of the key technologies employed by Tony's Open Chain, which will be discussed in detail in this report.

Table 1: Overview of Technologies in Tony's Open Chain

Technology/System	Primary Function	Key Supporting Document References
BeanTracker	Proprietary software for tracking cocoa bean flow from farm to processor, ensuring operational traceability.	1 (pp. 21, 25, 84), 1
GPS Polygon Mapping	Geo-locating 100% of farms for traceability, deforestation monitoring, and contextualizing social interventions.	1 (pp. 3, 18, 27, 42, 44), 1
Satelligence Platform	Monthly satellite-based deforestation risk monitoring to ensure deforestation-free sourcing and EUDR compliance.	1 (pp. 42, 44), 1
Child Labour Monitoring & Remediation System (CLMRS)	System for identifying, remediating, and tracking child labor cases, providing social traceability.	1 (pp. 25, 27, 50-52), 1
CLMRS Mobile App	Mobile application used by community facilitators to collect data for the CLMRS during household visits.	1 (p. 51), 1
FarmSmarter Application (Climate42)	Planned innovative application combining agronomy and climatology to optimize farmer decision-making and enhance climate resilience.	1 (p. 41), 1
Digital Payment Systems	Systems for digital transfer of payments to farmers, aiming to improve efficiency, transparency, and financial inclusion.	1 (pp. 25, 29, 75), 1
Digital Accounting Systems (for Cooperatives)	Systems to support partner cooperatives in adopting professional financial management and data-driven decision-making.	1 (pp. 25, 27), 1
SAP Listings (from Processors)	Data from processor ERP systems (e.g., Barry Callebaut's SAP) used for reconciling traceability through the processing stage.	1 (p. 84), 1

This technological framework is central to Tony's Open Chain's ability to implement its model at scale and offer a credible alternative to conventional cocoa sourcing practices.

II. Core Technologies for Supply Chain Traceability and Transparency

Achieving genuine transparency in complex agricultural supply chains like cocoa requires robust technological solutions capable of tracking products from farm to processor. Tony's Open Chain deploys a combination of proprietary and third-party systems to establish this critical traceability.

A. BeanTracker: Tony's Proprietary Engine for Bean-Level Traceability

At the heart of Tony's Open Chain's traceability efforts is BeanTracker, a proprietary software system meticulously designed to monitor the flow of cocoa beans "all the way from farm to processor".1 Its core functionality involves capturing and managing data related to bean origins (linking them to specific farmers), their physical movement through various supply chain actors (including transport on lorries, aggregation in warehouses, and transfer to shipping containers), and the precise quantities or yield associated with these movements.1 The primary purpose of BeanTracker is to cultivate a transparent supply chain by providing exact knowledge of "where, when, how and by whom the beans were harvested and how they travel through the Tony's Open Chain value chain".1 This capability allows Tony's Open Chain to assert 100% traceability for the cocoa it sources.1

Operationally, BeanTracker is not an optional add-on but a "fundamental tool" that is implemented from the outset when engaging with partner cooperatives.1 It serves as a primary instrument for ensuring operational traceability, enabling the generation of detailed data for each container of beans, which includes the specific contributions from individual partner cooperatives.1 This system directly underpins the "Traceability" sourcing principle and is instrumental in verifying that the "Higher Price" paid for ethical cocoa reaches the correct farmers. Furthermore, it provides the data foundation necessary for managing "Long-Term" commitments with specific farmer groups and cooperatives.

The development of BeanTracker as a proprietary system suggests a strategic decision by Tony's Open Chain to maintain control over a core component of its operational model. This allows for customization tailored to the unique demands of its ethical sourcing framework and facilitates deeper integration with other systems and processes than might be possible with off-the-shelf solutions. Such control is vital for scaling the model—with ambitions to source 80,000 metric tons of West African beans by 2027/28 1—while rigorously maintaining the integrity of its claims. BeanTracker functions as the central system of record, against which data from other initiatives, such as CLMRS findings or deforestation alerts, can be cross-referenced and validated.

However, the efficacy of BeanTracker is intrinsically linked to the quality and accuracy of the data inputted at the cooperative level. The system tracks beans from the point they are delivered by farmers to the partner cooperatives.1 Consequently, the integrity of this initial data capture—including farmer registers and delivery records—is paramount for the reliability of the entire traceability chain. This highlights the critical importance of Tony's Open Chain's "cooperative-centric approach" 1 and its investments in enhancing the capacity of these cooperatives. Initiatives to support cooperatives with tools like "digital accounting systems" 1 and the strong emphasis on data ownership by the cooperatives 1 indicate an understanding of this dependency and a commitment to strengthening this foundational data layer.

B. GPS Polygon Mapping: Geo-locating Farms for Enhanced Oversight

Complementing BeanTracker, GPS polygon mapping provides the precise geographical dimension essential for comprehensive supply chain oversight. This technology involves creating a digital boundary for 100% of the farms within all partner cooperatives.1 This universal mapping creates a unique digital footprint for each participating farm.

The purpose of GPS polygon mapping is multifaceted. Firstly, it provides precise geographical data that is linked to individual farmers and their cocoa production, thereby enriching the traceability data managed within BeanTracker.1 Knowing the "exact land plots the cocoa is coming from" is identified as crucial for robust supply chain management.1 Secondly, and of increasing importance, this geo-location data is fundamental for deforestation prevention. Farm polygons are assessed against maps of protected areas to ensure that no cocoa is sourced from deforested land or within officially designated protected zones, a key requirement for compliance with regulations such as the European Union Deforestation Regulation (EUDR).1 Thirdly, while not its primary function, the mapping of farm locations can provide valuable context for social programs like the CLMRS, helping to understand the household and community environment.1

Operationally, GPS polygon data is integrated with BeanTracker and is a critical input for the Satelligence deforestation monitoring platform.1 Like BeanTracker, it is considered a "fundamental tool" provided to partner cooperatives from the beginning of the engagement, and significantly, the partner cooperatives retain ownership of this data.1 This technology directly supports the "Traceability" principle and is vital for upholding the environmental integrity aspects linked to "Quality & Productivity" (by preventing farm expansion into forested areas) and ensuring the overall ethical foundation of the Tony's Open Chain model.

The application of GPS polygon mapping extends beyond merely pinpointing farm locations; it establishes a foundational data layer that serves multiple critical functions simultaneously: enhancing traceability, enabling rigorous deforestation monitoring, and providing geographical context for social interventions. This multi-functionality makes it a highly efficient and impactful technological investment. The commitment to achieving 100% farm mapping across the network underscores its non-negotiable role.

Furthermore, when combined with satellite-based deforestation monitoring, GPS data empowers Tony's Open Chain to adopt a more proactive stance. Instead of solely reacting to deforestation incidents after they occur, the system allows for the proactive identification and mitigation of risks. The stated intention to "identify at-risk areas near protected zones" by monitoring a 500m radius around mapped farms exemplifies this forward-looking approach to environmental stewardship.1 This capability represents a significant advancement beyond basic compliance, enabling a more strategic management of landscape-level deforestation risks.

III. Ensuring Environmental Sustainability through Technology

Environmental degradation, particularly deforestation, is a critical issue in cocoa-producing regions. Tony's Open Chain leverages advanced technological solutions to monitor its supply chain for environmental risks and ensure compliance with emerging regulations.

A. Satelligence Platform: Satellite-Powered Deforestation Monitoring

Tony's Open Chain employs the Satelligence platform to conduct monthly deforestation risk monitoring across its sourcing network.1 This system utilizes satellite imagery to assess cocoa plots against a baseline cutoff date of December 31, 2020, to detect any subsequent deforestation.1 The primary purpose of this technology is to ensure that all sourced cocoa is deforestation-free, a core commitment of Tony's Open Chain, and to align its operations with the stringent requirements of the EUDR.1 Through this system, Tony's Open Chain was able to verify that 99.95% of its supply chain was deforestation-free in the 2023/24 period, with only 14 out of 26,550 farms flagged.1

Operationally, the Satelligence platform works in close conjunction with the GPS polygon mapping data, which provides the precise boundaries of the farms being monitored, and links back to the operational traceability provided by BeanTracker.1 Tony's Open Chain actively supports its partner cooperatives in interpreting the risk assessments generated by Satelligence, assisting them in setting up alerts, and implementing appropriate prevention or remediation measures based on the findings.1 Looking ahead, Tony's Open Chain plans to enhance its environmental monitoring by going "beyond EUDR requirements." This includes monitoring deforestation not only within the boundaries of mapped farms but also within a 500-meter radius around them to identify at-risk areas, particularly those near protected zones. Additionally, "seasonal ground truthing" will be conducted to verify satellite-derived data.1 This technology directly supports the environmental integrity essential for the "Quality & Productivity" and "The Long Term" sourcing principles, ensuring the sustainability of cocoa farming.

The deployment of Satelligence serves as a critical tool for both regulatory compliance and a more profound commitment to proactive environmental stewardship. The intention to monitor a 500m buffer zone around farms demonstrates an approach that exceeds basic compliance, aiming to manage broader landscape-level risks rather than focusing solely on individual plot adherence. This proactive stance is indicative of a deeper commitment to environmental protection.

The effectiveness of Satelligence's satellite monitoring is directly contingent upon the precision and completeness of the GPS polygon farm data. Accurate farm boundaries are essential for the satellite system to correctly identify and assess areas of concern. Moreover, the translation of complex satellite data into actionable insights and effective interventions on the ground necessitates robust engagement with, and capacity building within, the partner cooperatives. The support provided to cooperatives to "interpret risk assessments, set up alerts and implement prevention and remediation measures" 1 underscores that technology alone is not a panacea; it requires human interpretation, local knowledge, and community action to be truly effective, reinforcing the cooperative-centric philosophy of Tony's Open Chain.

IV. Digital Systems for Social Impact and Upholding Human Rights

Addressing human rights issues, particularly child labor, is a cornerstone of Tony's Open Chain's mission. Digital systems play a crucial role in monitoring social conditions, implementing remediation efforts, and ensuring accountability within the supply chain.

A. Child Labour Monitoring & Remediation System (CLMRS) & Integrated Mobile App

Tony's Open Chain utilizes a Child Labour Monitoring & Remediation System (CLMRS) as a vital tool for providing "social traceability" and actively addressing child labor within its cocoa supply chains.1 Originally initiated by the International Labour Organisation and adapted for the cocoa industry, the CLMRS aims to identify instances of child labor, provide necessary support to affected children and their families, meticulously track follow-up visits, and ultimately align with national child protection systems for a comprehensive approach.1 The system's operation involves several key steps: the careful selection and training of community facilitators by partner cooperatives, systematic annual household visits (supplemented by unannounced farm visits), identification of child labor based on open conversations and needs assessments, coordination of remediation activities, and rigorous follow-up visits to confirm case resolution.1 In the 2023/24 period, 98% of farmer households supplying Tony's Open Chain were covered by CLMRS, with a target of 100%.1

A critical component of the CLMRS is an integrated mobile application. Community facilitators employ this mobile app during household visits to collect data systematically.1 This digital tool enables efficient data capture, management, and tracking of child labor cases and the progress of remediation efforts, which is essential for the system's overall effectiveness.

The implementation of the CLMRS and the ownership of the data it generates are firmly rooted in Tony's Open Chain's cooperative-centric model. Partner cooperatives bear full responsibility for the CLMRS implementation within their communities, and they also own the CLMRS data.1 Tony's Open Chain supports this by funding the system's implementation through a cooperative management fee.1 All data collected and managed within the CLMRS framework adheres to relevant data protection regulations in Côte d'Ivoire, Ghana, Switzerland, and the European Union.1 The CLMRS directly addresses the human rights aspects of Tony's Open Chain's mission and is closely linked to the "Strong Farmers" principle, by empowering cooperatives to manage complex social issues, and it reinforces the ethical underpinnings of the "Traceability" principle.

The CLMRS, as implemented by Tony's Open Chain, functions as a system of social accountability that extends beyond mere monitoring. Its strong emphasis on remediation, systematic follow-up, and cooperative ownership transforms it into a mechanism for driving tangible social change. The mobile app is an indispensable enabler, facilitating the systematic collection and management of sensitive and detailed data required for this complex, field-based process. This decentralized, empowerment-focused approach, where cooperatives are responsible for implementation and data ownership, is designed to foster local buy-in and tailor interventions more effectively.

However, the expansion of Tony's Open Chain presents a scalability challenge for the CLMRS. As new partner cooperatives are onboarded, the number of identified child labor cases is anticipated to rise significantly.1 This projected increase necessitates robust data systems—including the mobile app for field data collection and the backend database for analysis and case management—that can handle larger caseloads efficiently. It also calls for continuous learning and adaptation of remediation strategies. The undertaking of a "remediation effectiveness study" 1 and the focus on "knowledge exchange and sharing learnings" among cooperatives 1 suggest a data-driven approach to refining the CLMRS processes and interventions as the system scales. The consistent and structured data collected via the mobile app is vital for such ongoing analysis, adaptation, and improvement of the system's impact.

V. Emerging and Supporting Technologies for Farmer Empowerment and Resilience

Beyond core traceability and monitoring systems, Tony's Open Chain is exploring and implementing additional technologies aimed at directly empowering farmers, enhancing their resilience to external shocks, and professionalizing cooperative operations.

A. FarmSmarter Application (Climate42 Initiative)

Recognizing the increasing threat of climate change to cocoa production, Tony's Open Chain plans to implement Climate42's innovative FarmSmarter application in the 2024/25 season.1 This application is designed to "combine agronomy and climatology to optimise decision-making for cocoa farmers".1 Its primary purpose is to bolster the resilience of cocoa farmers against climate-related shocks, such as altered rainfall patterns and temperature increases, which significantly impact yield and livelihoods.1 The introduction of FarmSmarter directly supports the "Quality & Productivity" sourcing principle by enhancing farm management practices and contributes to "The Long Term" sustainability of cocoa farming in West Africa.

The planned adoption of FarmSmarter signals a strategic move towards equipping farmers with predictive and advisory tools. This allows for proactive management of climate risks, offering actionable intelligence based on agronomic and climatological data. Such an approach moves beyond traditional training in Good Agricultural Practices (GAP) by providing dynamic, data-driven advice that can be tailored to evolving local conditions, thereby offering a more sophisticated means of enhancing farmer resilience in the face of environmental uncertainties.1

B. Digital Payment Systems

Tony's Open Chain is actively working to transform how farmers receive payments for their cocoa. A digital payments project was piloted at three partner cooperatives in Ghana during the 2023/24 period, and the insights gained are being used to scale this approach further.1 For the 2024/25 season, there are plans to expand digital payments to six partner cooperatives.1 The functionality involves the electronic transfer of funds directly to farmers.

The purpose of this initiative is to reshape the payment model to be more efficient and transparent. A key component of this rollout is ensuring "inclusive access for all members via digital literacy coaching" 1, acknowledging that technology adoption requires capacity building. This initiative is part of a broader financial inclusion program developed with partners Agriterra and supported by funding from Rijksdienst voor Ondernemend Nederland (RVO).1 Digital payment systems directly support the "Higher Price" principle by facilitating the efficient and traceable delivery of payments, including premiums. They also contribute to the "Strong Farmers" principle by enhancing financial inclusion and improving farmers' financial literacy.

The transition to digital payments, when combined with essential digital literacy coaching, represents more than just an upgrade in payment efficiency. It is a catalyst for broader financial inclusion, potentially reducing the risks associated with handling large amounts of cash and providing farmers with greater control over their finances. Furthermore, digital transactions can create a clearer and more easily verifiable audit trail for the payments made under the "Higher Price" principle, including the Living Income Reference Price (LIRP), thereby strengthening accountability. The collaborative nature of this initiative, involving expert partners and dedicated funding, suggests a strategic and well-supported effort to overcome the complexities of transitioning to digital financial systems in rural contexts.1

C. Digital Accounting Systems for Cooperatives

To further professionalize its partner cooperatives, Tony's Open Chain "gradually supports partner cooperatives to adopt more advanced and granular aspects of our 5 Sourcing Principles, such as digital accounting systems".1 These systems are designed to enable cooperatives to manage their financial records and transactions digitally.

The adoption of digital accounting systems is aimed at supporting the overall professionalization of partner cooperatives, significantly improving their data management capabilities. This, in turn, empowers them to "better shape their programmes, revisit successful practices and explore new concepts that truly benefit cocoa farmers".1 Such systems are crucial for the "Strong Farmers" principle, as they help build robust, professionally managed cooperative businesses. They also enhance the ability of cooperatives to transparently manage and disburse the "Higher Price" premiums to their members and to effectively manage "Long-Term" partnerships with Tony's Open Chain and other stakeholders.

The introduction of digital accounting systems is a cornerstone for transforming cooperatives into more professional, efficient, and data-driven entities. This level of financial management is fundamental for innovation, informed decision-making, and the effective administration of complex programs like the CLMRS and the distribution of various payments. Such professionalization is key to the sustainability and scalability of Tony's Open Chain's cooperative-centric model, ensuring that cooperatives are well-equipped to act as effective partners in driving change.1

VI. Data Integration, Ownership, and the Cooperative-Centric Model

The various technologies deployed by Tony's Open Chain do not operate in isolation. They form an interconnected ecosystem where data flows between systems, and a cooperative-centric approach to data ownership and implementation is paramount.

A. Interconnectedness of Technological Systems

The technological architecture of Tony's Open Chain is characterized by a high degree of integration. For instance, GPS polygon mapping data, which provides the precise location of farms, is leveraged by BeanTracker to confirm farm origins, utilized by the Satelligence platform for targeted deforestation analysis, and offers crucial geographical context for the CLMRS interventions.1 Similarly, data from BeanTracker, which identifies delivering farmers and tracks bean volumes, informs which farmers are covered by the CLMRS and are eligible for premium payments under the "Higher Price" principle.

The true operational strength of Tony's Open Chain's technological strategy lies in this integration and the resulting interplay between different systems. This interconnectedness creates synergies where the collective value of the system is significantly greater than the sum of its individual parts. It enables more comprehensive oversight of the supply chain, facilitates cross-verification of data from different sources (e.g., linking a deforestation alert from Satelligence to specific beans and farmers via GPS data and BeanTracker), and allows for a more holistic view of both environmental and social performance. This integrated tech stack allows for a multi-layered approach to risk management and impact verification.

B. The "Cooperative-Centric Approach" and Data Ownership

A defining feature of Tony's Open Chain's model is its "cooperative-centric approach," which emphasizes the empowerment of local partner cooperatives.1 This philosophy extends deeply into the implementation of technology and, critically, into the realm of data ownership. Partner cooperatives are vested with the ownership of the data generated through key systems, including the CLMRS, BeanTracker, and GPS tracking information.1 This is a deliberate strategy intended to enable cooperatives to innovate, make more informed decisions based on their own data, and tailor programs more effectively to the specific needs of their members and communities.1

Cooperatives are not merely passive data providers; they are responsible for the implementation of the CLMRS 1 and are actively involved in the operational use of BeanTracker and GPS mapping tools.1 By vesting data ownership with the cooperatives, Tony's Open Chain aims to foster local accountability, stimulate capacity building within these organizations, and promote the development of more contextually relevant and sustainable interventions. This approach contrasts sharply with models where data primarily serves the purpose of external oversight or compliance for downstream buyers, instead positioning data as a tool for local empowerment and continuous improvement. This is likely to increase local buy-in and enhance the long-term viability and effectiveness of the technological systems, as cooperatives are empowered as data users and direct beneficiaries of the insights generated.

C. External Data Integration: SAP Listings from Processors

While Tony's Open Chain maintains significant control over traceability data up to the processor's doorstep, ensuring the integrity of this traceability through the complex industrial processing stage requires collaboration and data integration with external partners. For reconciliation with processing partners such as Barry Callebaut, Tony's Open Chain utilizes SAP listings (or similar data from processor Enterprise Resource Planning systems) provided by the processor.1 A process involving the selection of random samples of couverture batches is employed, whereby upstream traceability data provided by Tony's Open Chain (linking back to farms and cooperatives) is reconciled with downstream traceability data provided by the processor (tracking products through their manufacturing and to co-manufacturers).1

This "last mile" of traceability underscores a critical interface point where Tony's Open Chain's internal systems must connect seamlessly with the external systems of large industrial partners. Maintaining chain of custody and verifying claims for models like "Bean-to-Brand" (fully segregated) or accurately managing volumes for "Bean-to-Machine" (mass balance at processor level) 1 hinges on this collaborative data exchange and system compatibility. It highlights that even with robust internal technologies, end-to-end supply chain transparency in globalized industries often depends on effective data sharing agreements and interoperability with key downstream actors.

VII. Conclusion: An Integrated Technological Ecosystem for Impact

The array of technologies employed by Tony's Open Chain—ranging from the proprietary BeanTracker and comprehensive GPS polygon mapping to the satellite-driven Satelligence platform and the socially focused CLMRS with its integrated mobile app, alongside emerging initiatives like digital payment systems and the FarmSmarter application—collectively forms a sophisticated and integrated ecosystem. These tools are not standalone solutions but are interconnected components of a strategic framework designed to deliver on the organization's core mission.

This technological framework serves as the indispensable bedrock of Tony's Open Chain's ethical sourcing model. It is through these systems that the 5 Sourcing Principles are operationalized, transparency is achieved, accountability is enforced, and impact claims are measured and verified. The significant investment in technology, including the development of proprietary solutions like BeanTracker and the proactive adoption of innovative third-party tools, underscores a serious and data-driven commitment to achieving systemic change in the cocoa sector. The systems facilitate not only the tracking of beans but also the monitoring of environmental conditions and social welfare, providing a holistic view of the supply chain.

By successfully implementing this comprehensive technological suite, particularly with its distinctive emphasis on cooperative data ownership and empowerment, Tony's Open Chain is achieving more than just the ethical management of its own supply chain. It is demonstrating a potentially replicable and scalable model that could be adopted by the wider cocoa industry. The "cooperative-centric approach," when combined with advanced technology, offers a novel pathway for other companies—the "Mission Allies" 1—to source cocoa more ethically and sustainably. The ability to prove that this model can work at scale and can be financially sustainable, as aimed for in its financial structure 1, has the potential to drive sector-wide transformation, moving the industry beyond niche ethical brands towards a new norm where technology enables truly responsible sourcing for all.

Works cited

TOC_Impact_Report_2023-2024_V12.pdf