At Elucid, we recognize the profound impact that comprehensive ESG (Environmental, Social, and Governance) strategies can have on business performance. Focusing on integrating robust ESG measures into value chains not only enhances productivity but also bolsters consumer trust and confidence. One of our programs in northern Madagascar, which involves implementing healthcare for smallholder cocoa farmers, highlights the significant business case for private sector investment in such social initiatives. This program was assessed in collaboration with Erasmus University of Rotterdam and Lennart Hegemann, now a consultant at EY.

The study detailed the Salama Mateza program in Northern Madagascar, where health coverage was provided to smallholder farmers in the cocoa value chains. This initiative led to notable improvements in farmers’ health and productivity. Farmers reported better physical health and reduced medical expenses, which allowed them to reinvest in their farms and diversify their income sources, leading to stable and enhanced productivity.

Moreover, the program fostered a stronger loyalty among farmers towards the companies involved, leading to a more resilient and compliant value chain. These improvements contributed to higher cocoa yields and a more reliable supply for companies, highlighting a direct link between strategic ESG implementations and operational performance enhancements.

By establishing such initiatives, Elucid demonstrates a commitment to upholding human rights and fostering an environment of trust and efficiency. This, in turn, drives our business forward, enhancing both stakeholder value and societal impact.

For those interested in a deeper dive into how ESG strategies can specifically enhance value chains and contribute to sustainable business growth, we invite you to read more about these findings and initiatives here.