How True Pricing accelerates transformation
True Pricing is a powerful methodology that calculates the hidden social and environmental costs behind the products we buy. By exposing these “true costs,” it encourages businesses and consumers to make informed decisions that promote sustainability and fairness across supply chains.
True Pricing has the potential to create meaningful transformation in multiple ways:
- Transparency: Revealing the hidden costs—such as environmental damage or labor exploitation—pushes companies to be more accountable.
- Informed Choices: Businesses can identify where they need to improve, and consumers can make purchases that reflect their values.
- Market Differentiation: Companies embracing True Pricing stand out as leaders in sustainability and ethical business practices.
- Empowerment: Consumers are empowered to support companies that align with their social and environmental priorities.
Key Projects That Led to Transformation
However, it’s not just a theoretical concept. Let’s take a look at how True Pricing has driven real-world transformation in key projects:
Tony’s Chocolonely: The True Price of Cocoa
Tony’s Chocolonely is a chocolate company with a bold mission: to make all chocolate 100% slave-free. However, to create truly ethical chocolate, it wasn’t enough to address labor practices alone. In 2018, True Price conducted a detailed assessment of the true cost of cocoa production for Tony’s, analyzing the social and environmental costs from farm to shelf.
The findings were eye-opening. While the true cost of cocoa in the industry averaged €9.91 per kilogram, Tony’s managed to reduce this figure to €4.52 per kilogram by adopting better sourcing practices. This discrepancy largely came from Tony’s active effort to address child labor, poverty wages, and deforestation within their supply chain, showing how significant improvements can be made with the right approach.
Transformation: Armed with this data, Tony’s continued to lead by example. They increased their commitment to fair wages for farmers, reinvested in more sustainable agricultural practices, and actively fought illegal labor. Their transparency attracted consumers who wanted to support ethical brands, driving demand for products that reflect True Pricing principles. Tony’s journey shows how exposing hidden costs can catalyze industry-wide change toward fair trade and sustainability.
RVO and True Price: Transforming Organic Banana Supply Chains
Another transformative case comes from True Price’s work with the Netherlands Enterprise Agency (RVO) to analyze the true costs of organic banana production. This project was conducted in collaboration with producers from the Dominican Republic and Peru, two countries with strong banana-exporting industries. The study revealed hidden social and environmental costs, such as low wages, pesticide exposure, and biodiversity loss.
What’s remarkable about this initiative is the collaborative effort to not only measure these external costs but also work with all supply chain actors—farmers, exporters, and retailers—to internalize these costs into the final price of bananas. This meant raising wages, implementing environmentally friendly farming practices, and investing in health and safety for workers.
Transformation: The project resulted in a new model of organic banana production that prioritizes fair compensation, health standards, and sustainable farming. By sharing these findings, True Price and RVO empowered retailers and consumers to pay prices that reflect the actual cost of production, creating a more equitable and transparent marketplace. The insights from this project have been instrumental in setting new industry standards for sustainable agriculture.
How does a project like this work
The above examples are just a few ways True Pricing has driven transformation. In addition to Tony’s Chocolonely and the organic banana project, True Price has worked with many other organizations to reveal the real costs behind their products. But, how does a project like this work?
- First: calculate true price
- Second: develop a transformation plan
- Third: implement transformation plan
- Fourth: re-assess true price
By combining solid data with collaboration across sectors, True Pricing has proven itself to be a catalyst for social and environmental transformation. Do you want implement transformation in your supply chain? Contact us and start your journey towards a more sustainable future.
