Race to the Top: Our New Approach to Shared Responsibility
- 03 Mar 2025
- 6 Minutes to read
- PDF
Race to the Top: Our New Approach to Shared Responsibility
- Updated on 03 Mar 2025
- 6 Minutes to read
- PDF
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At the Rainforest Alliance, we believe that the only path to a sustainable world is a level one—a shared journey where both the value and risks of sustainability are spread out equitably across the supply chain. That’s why a commitment to shared responsibility is a cornerstone of the Rainforest Alliance Certification Program.
Back in 2020, when we published our strengthened Sustainable Agriculture Standard, we introduced two mechanisms for the buyers of Rainforest Alliance Certified commodities to financially support farmers: the Sustainability Differential (SD) and Sustainability Investments (SI). Our goal was to incentivize and reward the adoption of sustainable agricultural practices by asking farmers to define what investment support they needed. These innovations were bold and ambitious, designed to boost the negotiating position of producers and help companies see the impact of their investments, while also driving stronger sustainability commitments across the whole supply chain. Over the past five years, we’ve gathered valuable insights which we are using to reevaluate and strengthen our approach to shared responsibility.
Listen, learn, adapt: our commitment to continuous improvement
In 2023, we commissioned an in-depth evaluation of our 2020 Sustainable Agriculture Standard to assess the effectiveness of the SD and SI in fostering responsible supply chains. The study used data analysis, interviews with global stakeholders, and case studies to examine how well these mechanisms were working.
Through this comprehensive consultation and review process, we found that while our approach was designed to drive systemic change, it aligned well with industry conditions in some sectors but not in others. To make it more effective across the board, we are simplifying the model to be more user-friendly and better suited to the realities of different markets, with the goal of ultimately helping direct more funds to farmers.
Below, we detail the results of this recalibration and outline our new approach to shared responsibility.
At a glance: Changes coming into effect October 2025
Our new approach to shared responsibility will officially launch in October 2025, with version 1.4 of our Sustainable Agriculture Standard. In the coming months, the Rainforest Alliance will guide all affected stakeholders through the transition.
Simplified terminology: We listened to feedback that stakeholders found the terms “SD” and “SI” unnecessarily complicated. This is why we are using the term “premium” moving forward.
Streamlining investment: We have merged investments previously made through both the SD and SI (cash and in-kind) into a single, simplified premium by volume.
Negotiable premium: For most sectors, the premium amount will be negotiated between farmers and companies (as was previously the case with SD and SI). For cocoa, where we previously had a set minimum SD, we will keep a matching minimum premium. In fresh fruit, where we previously had a minimum SI, that amount can now be negotiated as part of the overall premium. This change gives producers more flexibility to align premiums with their actual costs. In the case of tea, the premium will continue to be determined by brand-led company commitments.
User-friendly data collection: Premium requirements and their accompanying data collection have been simplified (see details in the “Changes to our Supply Chain Requirements” section below).
Direct farm investments: For companies and brands who want to go above and beyond premium payments and make specific investments in farms or farm groups that are not related to volume, we are developing mechanisms to make such investments outside of our Sustainable Agriculture Standard. The first versions of these mechanisms will launch in 2025.
Advocating for shared responsibility: With farmers facing rising costs due to global inflation, this is a good moment to reevaluate premium levels across the board. The data we gather on these new premiums will help us understand trends and actual contributions to farm groups and farmers. Monitoring the effectiveness of our new approach will provide valuable insights as we continue to advocate for shared financial responsibility of sustainability.
Explore the key changes to our Supply Chain and Farm Requirements below.
Changes to our Supply Chain Requirements
Where a minimum SD amount was previously established (as with cocoa due to previous agreements made with the Ghana Cocoa Board and the Conseil du Café-Cacao in Côte d´Ivoire), we will maintain a corresponding minimum premium amount. However, for sectors that had a minimum SI amount (as with fresh fruit), the premium amount will now be negotiable. In the case of tea, the premium amount will continue to be brand-led by company commitments.
We have significantly simplified our data reporting requirements. Going forward, only the premium agreed upon between companies and farm Certificate Holders will need to be reported. This should be done in the Rainforest Alliance’s traceability platform.
All premiums must now be paid in cash or monetary payments and can no longer be paid in-kind (as was previously the case with SI payments). As before, companies must have contracts or signed agreements in place with farm Certificate Holders specifying the premium amounts to be paid and the terms and conditions of the payment by period/cycle.
Changes to our Farm Requirements
Farmers and farm groups are no longer required to submit detailed premium expenditure reports directly to the Rainforest Alliance. They must still keep records and ensure the funds benefit farmers or workers, and Certification Bodies will review these records to verify compliance. This approach acknowledges that farmers and farm groups are best positioned to determine how to use these funds to address their specific needs.
Farm management must continue to document and report on premium amounts agreed between companies and farm Certificate Holders. This must be done in the Rainforest Alliance’s traceability platform, and this will be the only premium data point we capture going forward. In addition to this, we will now require companies to pay the premium in cash or monetary payments, not in-kind, to farm Certificate Holders. Farm Certificate Holders also must make premium payments to farm group members in cash or monetary payments.
Previously, farm group management was required to transfer 100 percent of the SD amount to farm group members. In version 1.4 of our standard, farm group management must distribute at least 40 percent of the premium in cash or monetary payments to group members and can use the remaining premium payments to invest in group management improvements. For cocoa Certificate Holders in Côte d'Ivoire, 50 percent of the premium must be paid to group members and 50 percent can be used to invest in group management.
Now is the time for action
Markets have the potential to become the fastest and most scalable agents of change. That’s why, with our new approach to shared responsibility, we are making it easier for Rainforest Alliance Certified farmers to receive verified premiums from their buyers, while creating the financial transparency needed to catalyze broader transformation in the long term.
At the same time, we recognize that certification is a first step. The Rainforest Alliance calls on companies to think of their sustainability journey as a “race to the top”—one where we all push each other to go above and beyond for people and nature.
Whether you're a company investing in farmers, a business integrating responsible sourcing into your supply chain, or a consumer making informed choices, together, we can build an agricultural system that values the people behind our most essential products and strengthens the future of farming for generations to come.
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