Coffee Sustainability Catalogue 2016 A collective review of work being done to make coffee sustainable
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
1
Coffee Sustainability Catalogue 2016 A collective review of work being done to make coffee sustainable Steering committee: Annette Pensel (Global Coffee Platform) Bambi Semroc (Sustainable Coffee Challenge) Joost Gorter (IDH Sustainable Trade Initiative) Kim Elena Ionescu (Specialty Coffee Association of America) Author: Sanne Steemers (Valued Chain) Contributors: Matthew Quinlan & all respondents that provided input in interviews and2016 a survey Coffee Sustainability Catalogue Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
2
Foreword Coffee Sustainability Catalogue 2016 The coffee sector has invested heavily in sustainability for decades, recognizing that we must ensure our ability to meet rising demand for coffee while also increasing the prosperity and well-being of producers and conserving nature. In 2014, leaders in the sector came together to develop a vision for coffee sustainability that resulted in Vision 2020: a call for improved alignment within the sector on our sustainability efforts. In late 2015 the Global Coffee Platform, the Specialty Coffee Association of America and the Sustainable Coffee Challenge jointly recognized the need to inventory existing efforts to make coffee a sustainable agricultural product, understand who is doing what sort of work, where the investments are going and how we can better understand and share our impacts and experiences. We are grateful for the collaboration and participation of over 80 respondents in this first-ofits-kind catalogue of efforts underway to increase sustainability within the coffee sector. This report, which synthesizes the contributions of those respondents, attempts to organize this work into a coherent strategy that recognizes the role and contribution of actors throughout the sector – retailers, roasters, traders, producers, governments, certification organizations, NGOs and many others. We hope that this study sheds more light on the tremendous efforts already underway to advance sustainability in the coffee sector and catalyses the additional collaboration and investment necessary to achieve our shared sustainability objectives. Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
3
Table of contents Coffee Sustainability Catalogue 2016 • • • • •
Executive summary
•
HOW: collaboration for strategy, funding and measurement
• • •
Appendix A: current initiatives framework: overview of current sector strategies
WHO: the actors in coffee sustainability WHY: what we aim to achieve WHAT: our activities WHERE: geographical focus
Appendix B: stakeholder directory Appendix C: list of respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
4
Executive summary A collective review of work being done to make coffee sustainable
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
5
WHO WHY WHAT WHERE HOW
Wide involvement in sustainability dialogue Good mix of value chain actors and partners, but low representation of government and specific stakeholder groups Source: interview and survey respondents
Partnerships between coffee companies and non-profit organizations are common practice and mentioned as a strength by many respondents.
Sustainability stakeholders in and around the value chain Roaster
Sustainability is on the agenda of most large value chain actors.
23%
Trader Producer (organization)
47%
Exporter
20%
Retailer
7%
• Low inclusion of specific stakeholder groups in our sample of the current sustainability dialogue: producers, specific large consuming countries in Asia and Europe (Italy, France and Eastern Europe), smaller roasters and retailers that together represent a large share of total coffee volume, governments, service providers in inputs and finance.
Non-value chain actors
Representation by region Sustainability stakeholders included in mapping (headoffice location)
45%
Share of consumption (ICO 2014)
34%
Share of production (ICO 2014/15) 11%
Europe
North America
Africa
32%
18% 7% 20%
57%
Latin America
11% 8%
21%
31%
Asia
Source: interview and survey respondents, ICO
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
6
WHO WHY WHAT WHERE HOW
Impact priorities aligned with Global Goals Social and economical impact together with climate action are pursued by most respondents, but individual priorities vary Source: interview and survey respondents
Objectives are naturally aligned with UN Global
Top 5 coffee sector desired impacts
Goals (Sustainable Development Goals).
No Poverty
Most respondents share the consensus that economic sustainability is a pre-requisite for prosperity and well-being of producers and environment conservation.
Climate Action
Decent Work And Economic Growth Responsible Consumption Better Coffee Quality
Prosperity and well-being of producers Forest, water and soil conservation Sustained supply of coffee
• Respondents are missing one documented
Prioritization by respondent type
• Priorities vary between individual respondents and any shared vision needs to allow for different practical definitions to meet the various aims of actors involved.
% of respondents prioritizing this impact in their top 5
shared vision on sustainability.
60% 50% 40% 30% 20% 10% 0% Forest, water and Prosperity and well- Sustained supply of soil conservation being of producers coffee coffee value chain
non-value chain actors
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
7
WHO WHY WHAT WHERE HOW
Sustainability embedded in business models Certification is common business model, several other activities are introduced, but strategy is rarely fact-based As a sector, we jointly have experience to
Sustainability activities
address most needs. Experienced respondents are willing to share best practices and lessons learned.
Agricultural Extension Services
Certification/verification is a common business
Social Inclusiveness
model included in most sustainability initiatives.
Coffee value chain has largely integrated farmer outreach in business as usual.
• Identify and share tools and best practices for supply chain services.
• A sustainable smallholder farm is diversified, sufficiently large and inclusive, but this needs to be more widely addressed in programs.
Business Support
Traceability And Assurance Access To Finance Incentives Access To Inputs Demand Generation Diversification Support Value Addition In Origin Logistics Services Disaster Relief 0%
20%
40%
60%
80%
100%
% of respondents including this in their programs
• Develop strategy based on facts and research. Increase involvement from governments in embedding measures in policy and law.
Certification/verification
Supply chain services
Non-coffee activities Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
8
WHO WHY WHAT WHERE HOW
Geographical focus follows supply & demand Geographic focus follows flows of coffee and origin needs, with risk of overlap in East Africa, and some origins left out Source: interview and survey respondents, ICO
Several volume origins have embedded sustainability in business as usual.
Focus countries for sustainability mainly prioritized because of quality, potential productivity increase and supply risks.
Sustainability focus of main consuming regions 60% 30% 0% LatAm
Strong regional sustainability relations
% of ICO production 2015/16
programs likely reach out to the same farmers. Discuss justification of current investments in East Africa in relation to possible overlap, efficiency and impact achieved.
North American respondents
European respondents
• Innovation budget is mainly focused on Latin
• The Tanzania case illustrates how different
Africa
% of respondents active in sustainability in this region
between North and Latin America, and between Europe, Africa and Asia building on current supply and demand.
America. Budget per farmer in Africa is low, partly attributed to economies of scale, but also to low volume per farmer resulting in high cost per MT which puts pressure on cost.
Asia
Innovation and scaling projects per region 100%
$600 $519 $423
$400
50%
$256
0%
$200 $-
LatAm
Asia
Africa
Innovation projects >$500 per farmer Scaling projects <$500 per farmer Average budget per farmer Source: data provided by donors, public spending databases, interviews
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
9
WHO WHY WHAT WHERE HOW
Strategy, funding and measurement With current approach we need until 2045 to become a ‘sustainable’ sector Source: data provided by donors, public spending databases, interviews, Valued Chain
Collectively, the sector has a lot of experience
overlap is less than perceived.
Annual available budget of 350M$ (2% of
400 M$ 350 M$ 300 M$ 250 M$ 200 M$ 150 M$ 100 M$ 50 M$ 0 M$
• Ensure that variety in platforms does not lead
via a platform or fund. Explore carbon financing for funding coffee sustainability.
• Impact measurement not yet embedded in sustainability work, because of cost and effort.
1,5% 1,0% 0,5% 0,0%
Annual private sector premiums paid Annual private sector budget (excl premiums) Annual other funding Annual donor budget
Estimated time to become a 'sustainable' sector # farmers (millions)
• Explore pooling resources by investing jointly
2,0%
350 M$
Estimated total annual budget
green coffee value), in sector with low margins.
to a scattered approach by coordinating between platforms. Balancing inclusiveness and ability to act of platforms.
2,5%
% of green coffee value
Existing platforms have trust of members and
Estimated current annual budget for coffee sustainability in relation to green coffee value Annual total budget
in developing sustainability programs. Attributed to experience, most respondents feel comfortable with communication, collaboration and learning.
20 10 0 1985
2000
2015
2030
2045
2060
2075
time to implement current sustainability approach/definition At current implementation speed (350.000 farmers/year) At historical realized implementation speed (140.000 farmers/year) Producers reached to date
Source: interviews, Coffee Barometer, Valued Chain
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
10
Coffee Sustainability Catalogue 2016 Mapping initiatives, understanding impacts and identifying gaps
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
11
WHO The actors in coffee sustainability
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
12
WHO WHY WHAT WHERE HOW
Coffee sustainability stakeholders Coffee value chain actors are supported by a large number of other public and private organizations Source: interview and survey respondents
Source: interview and survey respondents
Respondents in and around the value chain
Respondents in coffee value chain
Roaster
13% 47%
Coffee value chain 53%
44%
Non-value chain actors
•
The sample of participating organizations is representative for the membership and network of GCP, IDH, SCAA and SCC. Roasters and traders are well represented, whereas many unorganized producers are less active in the international sustainability dialogue. High number of non-profit organizations compared to coffee value chain actors. Partnerships between coffee companies and non-profit organizations are common practice and mentioned as a strength by many respondents.
Producer (organization) Exporter
37%
•
Trader
Retailer
Types of non-value chain actors NGO 7%
Platform / partnership
10% 10%
49%
Government / public Research
24% Service provider / supplier Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
13
WHO WHY WHAT WHERE HOW
Value chain representation Roasters and traders lead the sustainability dialogue, producer and retailer representation is limited • Sector has an hourglass shape: volumes are concentrated with a few large roasters and traders, whereas the top and bottom of the value chain have many more smaller actors.
• Large roasters and traders are considered to be leading the sustainability dialogue. Some small roasters are specifically committed to integrating sustainability. Involvement of retailers in sustainability is limited, and often mainly a certification policy managed by their private label roaster and/or trade supplier.
• Involvement of producers and local exporters is limited, attributed to a lack of organization and resources, and language. Some stakeholders believe that this underrepresentation also relates to a demand-driven agenda more than real needs, although this is debated by others.
Coffee value chain actors - overall
Coffee value chain respondents Retailer
Coffee value chain
Coffee value chain
Retailer Roaster Trader Exporter Producer (organization)
Roaster Trader Exporter Producer (organization)
# estimated large actors
500
1.000
1.500
2.000 >2.500
# estimated small / other
Source: estimate Valued Chain
0
5
10
15
20
25
# actors included in mapping Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
14
WHO WHY WHAT WHERE HOW
Enabling environment representation Sector is supported by civil society and research, but needs more government involvement • Public representation in the sustainability dialogue is still considered too low by most respondents. Government involvement is needed for an effective enforced legal framework and extension to farmers.
• ICO is an exception but has only a representative role, whereas a few producing countries have national platforms where government participates. The UN "Protect, Respect and Remedy" Framework for Business and Human Rights developed by Special Representative John Ruggie provides a starting point for defining roles and responsibilities.
• Larger involvement of service providers especially in inputs and finance is considered a success factor in realizing a sustainable sector, as inputs and finance are a pre-requisite for impact in agricultural practices. Several respondents suggest that a number of large industry associations in consuming countries should become more involved in sustainability.
Ruggie framework: Protect, Respect, Remedy The State Duty to Protect The Corporate Responsibility to Respect Access to Effective Remedy
Non-value chain actors
Non-value chain respondents NGO Platform / partnership Government / public Research Service provider / supplier 0
5
10
15
20
25
# actors included in mapping Source: UN "Protect, Respect and Remedy" Framework
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
15
WHO WHY WHAT WHERE HOW
Stakeholder representation by region Sustainability agenda appears to be influenced mainly by consuming regions, missing certain markets and many origins Source: interview and survey respondents, ICO
• Representation is based on the headoffice location of the organization which causes some bias, especially some very large roasters are based in Europe and market their coffee globally. Even correcting for this bias, sustainability seems to be led from consuming regions Europe and North America.
• Europe is missing representation from large consuming countries including Italy, France and Eastern Europe. Several respondents believe this is partially caused by a lower interest in sustainability, and by a dominant national regulatory approach from government reducing the interest in international dialogue.
• Representation of producing regions with domestic markets in Africa, Latin America and Asia is low. There is a partial bias following the decision to conduct the survey only in English. Respondents however believe that producer representation in the international dialogue is low, even when corrected for this bias.
Representation by region Sustainability stakeholders included in mapping (headoffice location)
45%
Share of consumption (ICO 2014)
34%
Share of production (ICO 2014/15) 11%
Europe
North America
Africa
32%
11% 8%
18% 7% 20%
57%
21%
31%
Latin America
Asia
Sustainability stakeholders by country in Europe Switzerland 5% 5%
Netherlands 26%
10%
Germany United Kingdom Spain
23%
26%
Belgium Italy Norway
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
16
WHO WHY WHAT WHERE HOW
WHO: summary of strengths and gaps Building on existing collaboration and commitment, the agenda should address inclusiveness Strengths already achieved:
Gaps and challenges going forward:
A good mix of value chain actors and other
• Low inclusion of specific stakeholder groups in
stakeholders.
Partnerships between coffee companies and non-profit organizations are common practice and mentioned as a strength by many respondents.
Sustainability is on the agenda of most large value chain actors.
our sample of the current sustainability dialogue:
• Producers • Specific large consuming countries in Asia and Europe (Italy, France and Eastern Europe)
• Smaller roasters and retailers that together represent a large share of total coffee volume
• Governments • Service providers in inputs and finance
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
17
WHY What we aim to achieve
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
18
Enablers
Implementation
Outcomes
WHO WHY WHAT WHERE HOW
Impact
Current collective desired impact People planet profit widely recognized as sustainable impact categories, large overlap with global goals Prosperity and wellbeing of producers
Forest, water and soil conservation
Sustained supply of coffee
No poverty
Clean water and sanitation
More coffee availability
Zero hunger
Affordable and clean energy
Better coffee quality
Good health and wellbeing
Climate action
Stable coffee prices
Quality education
Life on land
Value addition for improved margins
Gender equality
Sector trusted by society UN Sustainable Development Goal
Decent work and economic growth Coffee Sustainability Catalogue 2016
Responsible consumption and production
Coffee sector objectives
Source: UN, interview respondents, Valued Chain
Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
19
Enablers
Implementation
Outcomes
WHO WHY WHAT WHERE HOW
Impact
Impact priorities aligned with Global Goals Social and economical impact together with climate action are pursued by most respondents, but individual priorities vary • 4 out of the top 5 coffee
Prioritization of desired impact
sustainability impacts link directly to UN Global Goals (SDG’s 1, 13, 8 and 12).
No Poverty Climate Action
Decent Work And Economic Growth
• Most stakeholders are
Responsible Consumption And Production
driven by social impact, with profit being the main shared interest, and climate change considered the largest risk.
Better Coffee Quality Value Addition For Improved Margins Gender Equality More Coffee Availability Stable Coffee Prices
• No poverty is pursued
Good Health And Well-Being
by most but only half of the respondents, priorities vary between individual respondents.
Clean Water And Sanitation Zero Hunger Quality Education Life On Land
• Desired impacts are
Sector Trusted By Society Affordable And Clean Energy 0%
10%
20%
30%
40%
50%
60%
% of respondents prioritizing this aim in their top 5
Prosperity and well-being of producers
Forest, water and soil conservation
overall aligned, with no significant differences between regions and types of actors.
Sustained supply of coffee
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
20
Enablers
Implementation
Outcomes
WHO WHY WHAT WHERE HOW
Impact
Supply impact more important to value chain Desired impacts are overall aligned, with economic and commercial impact more important to coffee value chain actors • Respondents in the value chain (mainly
• Most respondents share the consensus that economic sustainability is a pre-requisite for prosperity and well-being of producers and environment conservation.
• Most programs are executed in partnerships between profit and non-profit actors, which should ensure impact is balanced.
• Whereas profitability is a shared aim for most, the focus varies between volumes, quality, price and cost.
Prioritization by respondent type 60%
% of respondents prioritizing this impact in their top 5
roasters and traders) prioritize economic impact, whereas non-value chain actors more frequently pursue social and environmental impact.
50%
40%
30%
20%
10%
0% Forest, water and soil conservation
Prosperity and well- Sustained supply of being of producers coffee
coffee value chain
non-value chain actors
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
21
WHO WHY WHAT WHERE HOW
WHY: summary of strengths and gaps We are aligned on activities and aims, but relation between implementation and impact is rarely explicit Strengths already achieved:
Gaps and challenges going forward:
Objectives are naturally aligned with UN Global
• Respondents are missing one documented
Goals (Sustainable Development Goals).
Most respondents share the consensus that economic sustainability is a pre-requisite for prosperity and well-being of producers and environment conservation.
shared vision on sustainability.
• Priorities vary between individual respondents and any shared vision needs to allow for different practical definitions to meet the various aims of actors involved.
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
22
WHAT Our activities
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
23
Enablers
Implementation
Outcomes
WHO WHY WHAT WHERE HOW
Impact
Current initiatives framework Current individual sustainability strategies and theories of change are classified in a theory of change framework WHAT / Activities
WHY / Motivations Implementation
Outcomes
Policy / law
Extension
Yield / productivity
Research
Business support
Quality
Sustainability definition
Social and community
Price
Platform
Disaster relief
Cost
Diversified farm & household
Resilience
Impact Profitability
Enablers
Prosperity and well-being of producers
Forest, water and soil conservation
Sustained supply of coffee Access to inputs
Cashflow
Access to finance
Market access
Logistics
Inclusivity
Incentives
Labour conditions
Traceability & assurance
Ecosystem services
Value addition in origin
Green house gas reduction
Demand generation
Coffee Sustainability Catalogue 2016
Source: Matthew Quinlan, interview respondents, Valued Chain
Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
24
Enablers
Implementation
Outcomes
WHO WHY WHAT WHERE HOW
Impact
Common implementation activities Certification is the common business model, additional activities are introduced • Almost all programs include
Sustainability activities
outreach via agricultural extension services.
Agricultural Extension Services Business Support
•
Certification is the common business model, including consumer awareness, social inclusiveness, traceability and assurance and incentives.
•
Business support, access to inputs and access to finance are recognized as important but challenging with a lack of best practices available.
Social Inclusiveness And Community Welfare Traceability And Assurance Access To Finance And Risk Management Incentives Access To Inputs Demand Generation And Consumer Awareness
• Value addition via grading or
Diversified Farm And Household Support
washing is gaining interest.
Value Addition In Origin
•
Logistics Services Disaster Relief 0%
10%
20%
30%
40%
50%
60%
70%
80%
% of respondents including this in their programs Certification/verification
Supply chain services
90%
Fewer programs have activities outside the coffee value chain. Diversification and disaster relief are least addressed.
Non-coffee activities
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
25
Enablers
Implementation
Outcomes
WHO WHY WHAT WHERE HOW
Impact
Common enabling activities Dialogue and sustainability definitions are well-developed, fact-based research and government regulation are needed Source: interview and survey respondents
• Platforms and partnerships are common and
Enabling activities
Enablers
Platform
47%
Sustainability Definitions
45%
Research Policy/Law
32% 18%
% of respondents executing this activity
appreciated by respondents for sharing lessons learned.
• Many recognize the need to define sustainability in a certification code of conduct, supplier code, or national curriculum, but agree this needs to be complemented with other activities. Few respondents can provide a definition, but several tools and curricula are available.
• Several respondents see a need for more agronomy and development research to substantiate strategies and measure impact based on facts instead of assumptions. This is currently in progress but takes time.
• Many indicate they would like more involvement from governments in embedding measures in policy and law.
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
26
Enablers
Implementation
Outcomes
WHO WHY WHAT WHERE HOW
Impact
Stakeholder roles in execution Coffee value chain executes many sustainability activities and has largely integrated farmer outreach in business as usual • Implementation largely executed by actors that
Research
Enablers
Incentives
Demand Generation
Business Support
Logistics Services
Access To Inputs
Sustainability Definitions Implementation
My organization executes this - Coffee value chain
My organization executes this - Coffee value chain
My organization executes this - Non-value chain actors
My organization executes this - Non-value chain actors
Source: interview and survey respondents
Traceability And Assurance
Platform
Agricultural Extension Services
Policy/Law
Value Addition In Origin
# of respondents executing this activity
Enabling activities by actor type
Social Inclusiveness
support and diversification.
Access To Finance
• Civil society works on inclusiveness, business
Diversification Support
enabling activities, although their research findings and sustainability definitions are not always shared outside of their own organization.
Disaster Relief
• Value chain actors also very involved in
Implementation activities by actor type # of respondents executing this activity
are a direct part of the coffee value chain, embedded in core business.
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
27
WHO WHY WHAT WHERE HOW
Vision on sustainable smallholder farms A sustainable smallholder farm is diversified, sufficiently large and inclusive, but this is not widely included in programs • Several respondents suggest that smallholder coffee farms are sustainable when: • they are diversified with multiple cash and food crops and other income sources • have a minimum size allowing to generate enough income and implement good practices • are managed jointly by the full household of man, woman and youth
• Whereas inclusiveness is generally considered, diversification is not widely implemented, following the sector interest in mainly coffee.
• Diversification reduces economic risks of price and productivity. It also conserves biodiversity on the farm, increases self-sufficiency, and offers inclusive opportunities to women and youth. A mix of coffee, food crops, livestock, processing and/or renewable energy generation is recommended.
• In addition, certain very small and unproductive farms are considered not viable and will never provided a living income to the household, even with support. The sector needs to discuss farmer segmentation and what is considered viable, and what alternatives can be offered to those farmers that are not in that position. Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
28
WHO WHY WHAT WHERE HOW
WHAT: summary of strengths and gaps Certification is common business model, several other activities are introduced, but strategy is rarely fact-based Strengths already achieved:
Gaps and challenges going forward:
Many activities being implemented in the field.
• Identify and share tools and best practices for
Each project has a different individual focus, sometimes limited in scope. As a sector, we jointly have experience to address most needs. Experienced respondents are willing to share best practices and lessons learned.
Certification/verification is a common business model included in most sustainability initiatives.
Coffee value chain executes many sustainability activities and has largely integrated farmer outreach in business as usual.
business support, access to inputs, access to finance and logistics.
• A sustainable smallholder farm is diversified, sufficiently large and inclusive, but this needs to be more widely addressed in programs.
• Increase involvement from governments in embedding measures in policy and law.
• Relation between activities and desired impact is rarely explicit. Develop a sector wide strategy based on facts and research, and define and measure explicit tangible outcomes.
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
29
WHERE Geographical focus
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
30
WHO WHY WHAT WHERE HOW
Focus countries for sustainability Sustainability work focuses on Latin America and Africa, interest of stakeholder varies between origins • Most coffee value chain
Stakeholder sustainability focus
actors focus on a limited number of origins for their sustainability work, mainly the origins that are important for their sourcing.
50%
40%
• Non profit actors more
30%
frequently work across a wide range of origins.
20%
Number of origins in which respondents work on sustainability 10% > 16 origins 0%
LatAm
Tanzania Uganda Ethiopia Kenya Rwanda Burundi DR Congo Cameroon Côte d'Ivoire Madagascar
Indonesia Vietnam India Papua New Guinea Laos China Thailand
Colombia Guatemala Peru Honduras Brazil Nicaragua Mexico El Salvador Costa Rica Ecuador Venezuela
11-15 origins
Asia
% of respondents active in sustainability in this origin Source: interview and survey respondents
6-10 origins < 5 origins 0%
10%
20%
30%
40%
% of respondents
Africa
Coffee value chain
Non-value chain actors
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
31
WHO WHY WHAT WHERE HOW
Relation between volumes and sustainability Sustainability interest is less driven by current volumes, more by quality, potential productivity increase and supply risks Sustainability focus in relation to production volume 25%
• Less focus on Brazil,
Colombia, Vietnam, Indonesia and India where certification has become common with local ownership.
• Larger interest in
Central American countries with specific challenges from leaf rust and climate change.
Brazil Colombia Honduras Mexico Guatemala Peru Nicaragua Costa Rica El Salvador Ecuador Venezuela * Vietnam Indonesia India Papua New Guinea Laos Thailand China * Ethiopia Uganda Côte d'Ivoire Kenya Tanzania Cameroon Madagascar DR Congo Rwanda Burundi *
0%
LatAm
-25%
Asia
Africa
Difference between % of respondents active in sustainability in this origin and % of ICO production volume Regional total
Sustainability interest smaller than share of volume
• Larger interest in Africa because of coffee quality in combination with livelihood needs.
• Larger interest in origins in Africa and Asia that have a potential for productivity increase: Kenya, Tanzania, Laos, Thailand, China.
• Ease of working in a country and donor priorities influence prioritization.
Sustainability interest larger than share of volume Source: interview and survey respondents, ICO
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
32
WHO WHY WHAT WHERE HOW
Sustainability relations are regional Regional ties between North and Latin America and between Europe, Asia and Africa Source: interview and survey respondents, ICO
Source: interview and survey respondents, ICO
Sustainability focus by respondent type
Sustainability focus of main consuming regions
60%
60%
30%
30%
0%
0% LatAm
Asia
Africa
% of respondents active in sustainability in this region % of ICO production 2015/16
coffee value chain
non-value chain actors
LatAm
Asia
Africa
% of respondents active in sustainability in this region % of ICO production 2015/16
North American respondents
European respondents
• Following a larger commercial interest of value
• Sustainability relations build on current
chain actors, there is some more activity in high volume origins by coffee roasters and traders compared to non profits in the enabling environment. This is visible both on a regional and country level.
physical flows of coffee, with strong ties between North and Latin America, and between Europe, Africa, and Asia.
• The general alignment in focus origins can be explained by the partnership approach that the sector has developed, with companies and other organizations working together in projects in the same countries.
• Consumer palates differ between consuming regions and affect demand for a specific quality or flavour profile.
• Geographical proximity is a key factor in supply chain relations, especially for volume.
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
33
WHO WHY WHAT WHERE HOW
Regional focus of investments Sustainability investments by major donors and their private partners focus on Africa • Major donors are USAID, World Bank, IDH, Bill & Melinda Gates Foundation and regional development banks.
Total donor budget allocated to regions
• Overall donor focus on Africa, driving investment in the region.
• Major donors each have different individual focus:
LatAm; 30%
• USAID invests mainly in Latin America • • • •
and Africa World Bank invests more in Asia Gates Foundation focuses on Africa IDH invests in line with private sector priorities across all continents Regional development banks invest in their own region
Africa; 46%
Asia; 24%
Source: data provided by donors, public spending databases, interviews
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
34
WHO WHY WHAT WHERE HOW
Public and private investment priorities Projects in Africa and Latin America largely publicly funded, with larger outreach and lower budgets per farmer Source: data provided by donors, public spending databases, interviews
• Interest in Africa and specific origins in Asia is
Private/public funding ratio per region
strongly donor driven.
• Projects in Africa are generally larger scale with lower investment per farmer. This can be partly attributed to economies of scale and lower cost levels locally, but is also attributed to low volume per farmer resulting in high cost per MT which puts pressure on cost.
Africa
21%
Asia
79%
32%
68%
LatAm
51% 0%
20%
49% 40%
60%
Private sector %
Average project size per region 30.000
$600
Matchfunding %
$520 $420
20.000 15.000
100%
Average project budget per region
24.000
25.000
80%
$400 14.000
$260 8.000
10.000
$200
5.000 -
$0 LatAm
Asia
Africa
Average # of farmers/households per project Source: data provided by donors, public spending databases, interviews
LatAm
Asia
Africa
Average budget per farmer (excl certification premiums) Source: data provided by donors, public spending databases, interviews
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
35
WHO WHY WHAT WHERE HOW
Investment categories Implementation projects in all regions, innovation focus in Latin America to address climate change impacts • Projects can be categorized: • Implementation projects, aimed to reach out
Investments in innovation are currently mainly in Latin America, attributed to research in relation to leaf rust and other climate change impacts. With existing high reach of certification reaching further scale is less needed. Total donor budget allocated to project types
52%
48%
Enabling/innovation
•
>$1000
$500-1000
$300-500
Implementation/scale
•
to farmers, with an average budget of around $200 per farmer. Enabling environment and/or innovative pilots, with high budgets per farmer, or even pure research without any farmer outreach.
Innovation and scaling projects per region
$150-300
$100-150
Enabling/innovation Implementation/scale
<$100
0%
Source: data provided by donors, public spending databases, interviews
5%
10%
LatAm
Asia
15%
20%
25%
Africa
Source: data provided by donors, public spending databases, interviews
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
36
WHO WHY WHAT WHERE HOW
Risk of overlap in East Africa High interest and investment in East Africa suggests risk of overlap and emphasizes need for coordination and reliable data • Several respondents see risk of overlapping
•
Respondents consider it likely that some overlap occurs, while there is also still a large number of farmers that have not been reached. There is a need for coordination and reliable data. Analysis of sustainability focus and volumes suggests the same risk applies in Kenya, Rwanda and Burundi. Reported farmer outreach compared to estimated number of farmers in Tanzania
% respondents active in origin
•
45%
6%
30%
4%
15%
2%
0%
0%
% of ICO production 2015/16
Sustainability focus and production volume
investments. This is illustrated by the case of Tanzania. Summing up reported project outreach compared to different assumptions about the numbers of farmers, we are not sure whether there is an overlap in projects or a gap in outreach.
500.000 400.000 300.000 200.000 100.000
Potential gap Potential overlap
0 Cumulative reported Estimated # coffee # farmer outreach farmers in Tanzania
Potential gap or overlap
Source: data provided by donors, respondent progress reports, interviews
% of respondents active in sustainability in origin % of ICO production 2015/16 Source: interview and survey respondents, ICO
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
37
WHO WHY WHAT WHERE HOW
WHERE: summary of strengths and gaps Geographic focus follows flows of coffee and origin needs, with risk of overlap in East Africa, and some origins left out Strengths already achieved:
Gaps and challenges going forward:
Several large origins show local ownership and
• Innovation budget is mainly focused on Latin
embed sustainability in business as usual, need for temporary projects is decreasing.
Focus countries for sustainability are mainly prioritized because of quality, potential productivity increase and supply risks.
Interest in ‘new’ origins that have potential to increase productivity.
Strong regional sustainability relations between North and Latin America, and between Europe, Africa and Asia building on current supply and demand.
America. Budget per farmer in Africa is low, partly attributed to economies of scale, but also to low volume per farmer resulting in high cost per MT which puts pressure on cost.
• Discuss justification of current investments in East Africa in relation to possible overlap, efficiency and impact achieved.
• Increase activity in origins currently left out because of perceived difficulty to work there, including Venezuela and West Africa.
Large investments in all regions.
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
38
HOW Collaboration for strategy, funding and measurement
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
39
WHO WHY WHAT WHERE HOW
Sustainability challenges Financing, strategy and impact measurement are current challenges, respondents suggest a role for platforms • Financing sustainability, developing strategy and measuring impact are the largest challenges. Most respondents see a role for platforms to address these: • Explore pooling resources for cost efficiency by investing jointly via a platform or fund. Explore carbon financing as a means of funding coffee sustainability programs. This is not currently on the agenda in the platforms. • Develop a sector wide strategy and define contributions of different platforms and actors. • Develop a set of common indicators for outputs and impact. This facilitates individual organizations in measuring their impact, as well as allows for comparison.
Financing our sustainability work
Ranking of challenges
Developing an appropriate strategy for our sustainability work
Financing our sustainability work
Measuring impact
Developing appropriate strategy
Executing our sustainability work
Measuring impact
Executing our sustainability work
Collaboration in the sector Communicating about our sustainability work Learning from other sectors Source: interview and survey respondents
Collaboration in the sector Communicating about sustainability Learning from other sectors Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
40
WHO WHY WHAT WHERE HOW
Sector organization The coffee sector cooperates in a number of platforms, partnerships and alliances Global Coffee Platform
Specialty Coffee Association of America
Sustainable Coffee Challenge
Alliance for Coffee Excellence
African and Malagasy Robusta Coffee Agency (ACRAM)
African Fine Coffees Association (AFCA)
Coalition for Coffee Communities
Coffee & Climate
Coffee Farmer Resilience Fund
European Coffee Federation
Finance Alliance for Sustainable Trade
Green Coffee Association
International Coffee Genome Network
International Coffee Partners
National Coffee Association USA (NCA)
SAFE Platform
Specialty Coffee Association of Europe
Sustainable Commodity Assistance Network
World Coffee Research
several national coffee platforms
several non-coffee specific platforms
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
41
WHO WHY WHAT WHERE HOW
Overlap in platforms There is less overlap between platform membership than most respondents expect • Interviewed respondents perceive a large
Overlap in platform memberships
overlap, and “see the same people in different settings”. This is likely within their own ‘circle’.
13%
• The overlap is visible but appears to be less
Global Coffee Platform
2% 8%
14%
6%
Sustainable Coffee Challenge
1%
0%
0%
0% 0%
IDH Sustainable Trade Initiative (field level)
than expected: • GCP has largest unique membership. • Largest overlap in membership between SCAA and SCC. • Also large overlap between GCP and IDH, which is now formalized with the merger to GCP.
0%
16% Specialty Coffee Association of America
8% % of respondents member of this/these platforms No memberships: 18% / Unknown: 14% Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
42
WHO WHY WHAT WHERE HOW
Platforms are regionally organized Platform membership confirms the perceived ‘Atlantic divide’ which builds on current trade relations Source: interview and survey respondents
• The perceived ‘Atlantic divide’ is visible in platform membership and is in line with current supply and demand relations:
• Respondents in Africa, Asia and Europe are more likely to be members of GCP and IDH.
• Respondents in North America are more likely to be members of SCAA and SCC.
Platform memberships per region Africa
Asia Europe Latin America North America 0%
• Respondents in Latin America adhere to
20% GCP
40% IDH
60%
SCAA
80%
100%
SCC
these platforms equally.
• Common platforms appear to have a good mix between value chain actors and the enabling environment.
Platform memberships per respondent type
Coffee value chain
Non-value chain actors
0% GCP
20%
40%
IDH
SCAA
60%
80%
100%
SCC
Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
43
WHO WHY WHAT WHERE HOW
Feedback to sector organization Respondents see large progress made in collaboration, but also a tension between inclusiveness and ability to act Importance of inclusiveness
Importance of ability to act
• Coordination, shared vision and interest,
• Commitment, innovation, scale directly visible
learning, embedding sustainability in policy and value chain
• Importance of inclusiveness mainly emphasized by NGO’s and large companies, specifically in Europe
• But: inclusive dialogue is time-consuming &
on the ground
• Mainly emphasized by private sector, specifically in North America
• But: assumptions are made in order to act quickly & specific interests may dominate
several respondents feel that producers and governments are not sufficiently involved
“Producers are not sufficiently heard”
“We should not try to create another United Nations”
Source: interview respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
44
WHO WHY WHAT WHERE HOW
Private sector and matchfunding Private sector is financing major part of sustainability work, matchfunding and certification premiums are common Source: interview and survey respondents
• All types of actors use matchfunding grants especially when reaching out to new farmers, on average between 30-50%. Major part of sustainability work is funded privately. This is in line with the data obtained from major donors.
• Certification has led to a business model for
Financing sources for sustainability Private funding: investment Private funding: premiums
sufficient to reach out to full value chain and address issues beyond the immediate coffee sector interest.
• Other sources of funding are not yet common, but some respondents are exploring specifically carbon financing.
33%
Other / own sources of funding
29% 0% 10% 20% 30% 40% 50% 60% 70%
% of respondents using this type of financing
• Traders indicate that declining premiums are
• Respondents indicate that budgets are not
48%
Public funding / grants
sustainability based on premiums which are commonly used to maintain existing programs. insufficient to implement and maintain outreach. Several respondents indicate that certification has an impact but does not address all needs.
67%
Coffee value chain
Non-value chain actors
Public / grants contribution as % of total budget 71% - 100% 51% - 70% 30% - 50% < 30%
% of respondents Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
45
WHO WHY WHAT WHERE HOW
Estimated total sustainability investment Implementation speed has increased, significant investments still needed to reach all farmers and address wider challenges Source: data provided by donors, public spending databases, interviews, Valued Chain
• Annual available budget of 350M$ represents 2% of A lot of work has been done since the 1980s, but we are not there yet. At current implementation speed we could complete outreach by 2045. Required budget to completion (based on current practices) would be 4,1 bln$.
•
This can be adjusted up or down based on increased efficiency, new challenges, new definitions of sustainability and/or new findings about the size of the producer population.
# farmers (millions)
Estimated time to become a 'sustainable' sector
Annual total budget
•
400 M$ 350 M$ 300 M$ 250 M$ 200 M$ 150 M$ 100 M$ 50 M$ 0 M$
2,5% 350 M$
2,0% 1,5% 1,0% 0,5% 0,0%
% of green coffee value
Estimated current annual budget for coffee sustainability in relation to green coffee value
green coffee value, in sector with low margins.
Annual private sector premiums paid Annual private sector budget (excl premiums) Annual other funding Annual donor budget
Estimated total annual budget
Estimated budget needed to become a 'sustainable' sector in 2045
20 10
Implementation ($200/farmer)
0 1985
2000
2015
2030
2045
2060
2075
time to implement current sustainability approach/definition
1.500 M$ 2.600 M$
At current implementation speed (350.000 farmers/year)
Research and innovation budget needed (50M$/year)
At historical realized implementation speed (140.000 farmers/year) Producers reached to date
Source: interviews, Coffee Barometer, Valued Chain
Source: data provided by donors, public spending databases, Valued Chain
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
46
WHO WHY WHAT WHERE HOW
Ongoing efforts on financial constraints Respondents are working on increasing available funds and decreasing cost of implementation
Wider private sector involvement and investment
Reducing cost of assurance
Standards collaboration reduce cost of audits and traceability (ISEAL)
Increase commitment from stakeholders in large coffee markets (e.g. Sustainable Coffee Challenge)
Company own standards and auditing (various)
Data-driven assurance (suggested)
Regional assurance (suggested)
Pooling resources for cost efficient direct investment via a platform or fund
Funding for research via a check-off program (e.g. World Coffee Research)
National ownership and investments
Coffee sustainability outreach contributes to climate action and can tap into climate financing
Farmer outreach via national extension services (e.g. Minas Gerais Brazil)
Carbon credits and loans (various)
Involvement of national research institutes for plant material (e.g. Vietnam)
Nationally Appropriate Mitigation Actions (NAMA) (suggested)
Shared investment in baseline studies and impact measurement (e.g. SAFE) Non-coffee specific investments in landscapes and communities (e.g. Coalition for Coffee Communities)
Source: interview respondents
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
47
WHO WHY WHAT WHERE HOW
Monitoring depends on supply chain data Impact measurement is not yet embedded in sector sustainability work, mainly because of cost and effort Source: interview and survey respondents
• Cost and effort of impact measurement are given as a main challenge.
• Current impact measurement mainly based on activity outputs: farm data and traceability. This quantitative data is collected within the supply chain, often in relation to certification.
• Programs are evaluated annually but not always with a baseline. Attribution is a challenge, with rarely a control group in place and very few longitudinal studies.
• Currently impact measurement is mainly driven by donor demands. Respondents suggest these could be aligned.
• Impact measurement is gaining interest. Current workgroups exist within GCP, SCC and COSA, as well as many individual organizations. Some NGO’s and research institutes have developed specific expertise in impact measurement.
Data collection methods Coffee Traceability Farm Performance Data Narratives Structured Surveys Control Group Outside Of Project 0%
10%
20%
30%
40%
% of respondents
Data collection frequency Annual Progress Evaluation Baseline End Of Project/Program Evaluation Longitudinal Study After Project/Program End 0%
10%
20%
30%
40%
50%
% of respondents Source: interview and survey respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
48
WHO WHY WHAT WHERE HOW
Lack of consensus on indicators Common indicators are not comparable, and mainly measure coffee output and outreach but not impact • Even common indicators for outreach to farmers, inclusiveness, volumes and yields are used in different ways and as such can’t be added up or compared easily.
• A number of respondents are currently working on defining indicators, as well as several platforms notably the Global Coffee Platform and Sustainable Coffee Challenge.
• Most respondents agree that certification data provides a good starting point for measuring output. Some respondents indicate that the IDH KPI framework is a good starting point, while others say this is too much focused on output not impact.
Indicator categories
Different definitions for common indicators
Coffee Output Outreach Economic Impact Activities Performed Environmental Impact Social Impact Inclusiveness Investments
Output Impact
0%
10%
20%
30%
40%
# farmers/ # households reached
% farmers reached by M/F by age <25/<30/<35
sustainable/ certified/ verified
# yield / % increase per tree/ ha/ farmer in MT/ kg/ bags
in MT/ kg/ bags
% of respondents Source: interview and survey respondents
#/% coffee produced/ sourced
Source: interview respondents
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
49
WHO WHY WHAT WHERE HOW
HOW: summary of strengths and gaps Whereas collaboration on strategy and impact measurement is recognized as a need, funding is still a less visible challenge Strengths already achieved:
Gaps and challenges going forward:
Collectively, the sector has a lot of experience
• Ensure that variety in platforms does not lead
in developing sustainability programs. Attributed to experience, most respondents feel comfortable with communication, collaboration and learning.
to a scattered approach by coordinating between platforms. Balancing inclusiveness and ability to act of platforms.
Existing platforms have trust of members and overlap is less than perceived.
Certification premiums have allowed to integrate sustainability in business as usual.
Annual available budget of 350M$ represents 2% of green coffee value, in sector with low margins.
Indicators from certification and current global programs are a good starting point in developing indicators, and further development and harmonization is underway.
• Develop a sector wide strategy and define contributions of different platforms and actors.
• Explore pooling resources for cost efficiency by investing jointly via a platform or fund.
• Explore carbon financing as a means of funding coffee sustainability programs.
• Align different initiatives that are developing a set of common indicators for outputs and impact. This facilitates individual organizations in measuring their impact, as well as allows for comparison.
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
50
Coffee Sustainability Catalogue 2016 We have a way to go, but a good foundation to build on
Coffee Sustainability Catalogue 2016 Š Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
51
Notes on interpretation of this study A reliable catalogue but not exhaustive, as input for further sector discussion • Study summarizes the current initiatives in coffee sustainability. This is on overview of what we are currently implementing. It does not specify what the agenda forward should be, this is up for sector discussion.
• Study has focused on organizational strategies not individual projects. • Findings are based on a sample of respondents from the membership and network of the organizations in the steering committee that were willing to provide input. The overview is not exhaustive. The participation of respondents is however sufficiently large and representative to allow for interpretation. We have consulted 36 respondents in interviews and 51 organizations participated in a survey.
• Perspectives from producing countries are possibly underrepresented following the membership and network of the steering committee, and the decision to conduct this study in English only. Any bias is mentioned in the applicable section of this report.
• Historical data on investment, output and impact is rarely available. Furthermore, most sustainability work is done in partnerships of public and private organizations who all report on investment and outreach, so there is overlap in the numbers reported. We have used mainly data from donors and roasters. Donors and roasters most commonly collect data, and partnerships rarely contain more than one donor and more than one roaster.
Coffee Sustainability Catalogue 2016 © Global Coffee Platform, IDH Sustainable Trade Initiative, Specialty Coffee Association of America, Sustainable Coffee Challenge
52