ESG & CSR - THE DIFFERENCE

Under the broad umbrella of sustainability, there’s a lot of jargon and an ever-growing web of terminology. One key distinction is between ESG and CSR—understanding which is which can help you identify whether a project falls under corporate responsibility or measurable ESG action. Let’s break down the differences and look at some real-world examples.

CSR involves voluntary and philanthropic programmes by companies that can be environmental or community-based. CSR tends to be value-driven; focused on internal culture, societal goodwill, brand reputation and community obligations.

ESG is embedded in a company’s values and guides how it operates fairly and ethically in relation to the environment and the people affected by its activities. It involves assessing risks and opportunities to support long-term planning in a way that benefits both the business and its stakeholders. ESG uses established frameworks—such as GRI, SASB, or SBTi—to shape operations, supply chain management, and reporting. It relies on quantifiable metrics that influence decision-making and drive continuous improvement in business practices.

CSR EXAMPLES

• Tree planting & reforestation programs.

• Building schools or libraries in underserved regions.

• Providing access to micro-finance or tools for small businesses in the supply chain.

• Donating supplies and funds after natural disasters like floods or earthquakes.

• Setting up health and safety workshops for workers in developing countries.

ESG EXAMPLES

• Reduction in absolute emissions targets.

• Transitioning to renewable energy.

• Investing in education programs.

• Conducting biodiversity impact studies before building new facilities.

• Tracking and reporting on human rights due diligence across the value chain.

• Conducting annual ethics and compliance training for all employees.

CSR INITIATIVES

• Chocolonely Foundation - 1% of revenue is donated by Tony's Chocolonely to this foundation that supports projects predominantly in areas where they source their cocoa from to support local farmers.

• Supporting community projects for self improvement and access to basic needs like education facilities.

• Supporting reintegration centres for victims of trafficking and exploitation.

TONY'S CHOCOLONELY'S ESG AND CSR INITIATIVES

ESG INITIATIVES

• Living income premiums paid to farmers. The price is higher than LIRP - Living Income Reference Price.

• Child Labor Monitoring & Remediation System (CLMRS).

• Annual FAIR Report (ESG Reporting) - Transparently presented data with metrics and targets.

• Pledge to reduce Scope 1&2 GHG emissions by 42% by 2030.

• Use of deforestation-free cocoa tracked through GPS mapping for traceability.