EFICO GROUP 2023

COMMUNICATION ON PROGRESS YEAR 2022

BASED ON THE ENHANCED COMMUNICATION ON PROGRESS REQUIRED FOR MEMBERS OF THE UNITED NATIONS GLOBAL COMPACT

Coffee Seedlings – World Coffee Research

OPENING STATEMENT

This annual report is based on the Enhanced Communication On Progress (COP) reporting framework of the United Nations Global Compact (UNGC).

In 2022, EFICO reported to this framework already as Early Adopter Member. The updates made by the UNGC to the Enhanced COP throughout 2022 are now effective for all participant members.

The Communication on Progress (COP) is a required public and annual disclosure by business participants of the UN Global Compact to stakeholders with the following main objectives:

Foster accountability on corporate sustainability performance to help safeguard the integrity of the UN Global Compact initiative;

Promote continued learning and help drive corporate sustainability performance;

• Enhance stakeholder access to information regarding participants’ implementation of the Ten Principles and contribution towards the achievement of the Sustainable Development Goals (SDGs).

The enhanced COP therefore enables participating companies of the UN Global Compact to:

• Measure and demonstrate progress to stakeholders and the public on the Ten Principles and the Sustainable Development Goals in a consistent and harmonized way.

Build credibility and brand value by showing their commitment to the Ten Principles and the Sustainable Development Goals.

• Receive insight, learn and continuously improve performance by identifying gaps, accessing guidance and setting sustainability goals.

• Compare performance against peers with access to one of the largest sources of free, public and comparable corporate sustainability data.

This report reflects our commitment towards the Ten Principles of the UNGC and the Sustainable Development Goals (SDGs) and reports our progress made in 2022.

At EFICO, we encourage this consistent and harmonized way of continuous improvement reporting and are convinced the UNGC’s enhanced platform acts as a strong tool to support sustainability performance advancement year over year.

As a global compact signatory since 2003, EFICO is committed to transparently report its progress and challenges, and share this with its partners.

We welcome feedback and ideas to continue learning and improving our sustainability journey, together with you.

LOOKING BACK

Dear Valued Partner,

It is not a coincidence that many phrases we use metaphorically on a daily basis are nautical expressions: scan the horizon, go with the wind in the stern, weather the storm, right the ship, drop anchor,… These days, there are indeed plenty of comparisons to be drawn between embarking a boating journey and navigating a business.

The environment in which we all operate is constantly changing: the physical surroundings of wind, waves and weather, the competitive entourage, the economic, regulatory, social and technological situation and the financial landscape. Unexpectedly overcoming obstacles or charting newer, better or more up-todate courses is not just for sailors; these practices and strategies are an integral part of any business reality today.

In recent years we ‘Nolens Volens’ have learnt a thing or two about course correction. In just two short years, a double whammy of external shocks (COVID-19 and the war in Ukraine) has unleashed global development and also shrouded the aspirations of the 2030 Agenda in uncertainty. The consequences are worrying for the success of sustainable development worldwide.

More specifically in the world of coffee, in 2022 everyone was still recovering from the Brazilian freak frost (July 2021). Fortunately, the coffee industry has not been shipwrecked and we have once again managed to navigate through this associated headaches.

The only way to weather the ‘perfect storm’ is together. At EFICO, we are more than ever convinced that partnerships play an important role in achieving development impact. As a partner of organizations in the public, private and NGO/ social sectors, we value and recognize the transformative power of cross-sectoral collabs. We are all in the same boat and only together can we build a more prosperous, inclusive, greener and resilient future. In 2022, the morale of our entire crew and company was high and these positive vibes gave us some extra energy. We can once again proudly muse about our great collaboration with our different partners in origin, or about the wonderful encounters with our partner coffee roasters in Europe and beyond.

Just as a ship’s logbook is an important document used to record different scenarios and situations, we would like to take this opportunity to walk you through the data we have recorded in our EFICO GROUP 2022 logbook.

In 2022 a lot happened behind the scenes of our logistics service center SEABRIDGE . Together, the captain and the entire crew started mapping out their further sustainability route in detail. Their great collective awareness and enthusiasm will certainly contribute to getting to this more sustainable destination in time. In addition, the SEABRIDGE’s specialized and talented crew recommitted themselves to sharing their knowledge and skills; in the fall of 2022 they once again hosted a series of well-attended and highly valued Q-grading training courses. A little further on the horizon, in the

Dominican Republic more specifically, SEABRIDGE planted trees together with their cacao partners Zorzal & SILVA. Some 900 native trees are now sprouting and growing and will soon enhance the biodiversity of this local valuable ecosystem.

In 2022, we were finally allowed to take a break from the virtual coffee meet ups and to have proper in-person coffee encounters once again. We were more than happy to be fully present and to represent EFICO and CUPRIMA at some major coffee events: World of Coffee Milan, Paris Café Festival, Paris Coffee Show, SCA Boston, Sintercafé, 13th SCTA Coffee Forum & Dinner, ...

At EFICO and CUPRIMA , sustainability and traceability are self-evident concepts and intertwined in day-to-day business operations. However, much of this work happens ‘below deck’. So whenever you couldn’t find our crew on the field with their boots on, trading on the floor, testing in the quality lab or hosting and cupping at an coffee event, they were dealing with less visible but equally important issues.

Sustainable sourcing is what we do and who we are; we can therefore proudly say that EFICO’s 2022 logbook states that 82% of our purchased volumes come from local cooperatives and local exporters, and a total of 62% of our coffee is certified or verified to recognized sustainable standards. Even though some of these coffees do not carry a label, for an additional 20% we know the farmers behind the coffee.

On the road to smart digitization, there are entire business processes and flows that we need to look at critically and in detail. EFICO therefore started the initial preparatory work at the end of 2022; assessing IT systems and screening digital, coherent and intelligent processes. In preparation for various forthcoming laws and regulations, it is important that everything underlying is in shipshape.

In 2022, 8 projects from our EFICO FOUNDATION generated a direct positive impact on the lives of 1,856 coffee entrepreneurs and indirectly had a positive influence on the lives of 6,685 coffee families. This would not have been possible without our FOUNDATION partners, donors, supporters and ambassadors.

Behind the scenes, EFICO & EFICO FOUNDATION continued to work on the Gender Equity principle; their input helped Equal Origins to launch their GEI toolwhich is now ready to use. EFICO & EFICO FOUNDATION will continue to support multiplying the positive trigger effect.

Every day and every year, together with our partners, we learn a little more about how we can improve our business. This report brings together our ambition, strategy, commitments and contributions to shape a more thriving coffee future. We hope EFICO GROUP’s 2022 logbook inspires you to join us in these efforts.

Let’s set sail together towards a more sustainable horizon.

STATEMENT OF CONTINUED SUPPORT

We are pleased to affirm EFICO’s continued support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption.

Since 2003, EFICO has been a signatory to the United Nations Global Compact and we remain as committed as ever in the implementation of those principles.

This annual Communication on Progress describes our actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations.

We are committed to sharing the details of our progress through our primary channels of communication and we invite stakeholder feedback.

Sincerely,

Michel

Germanès Managing Director

Philip Van gestel Executive Chairman

EFICO Group works in support of following 6 SDGs

Acatenango, Guatemala

Brabant, Belgium

THE 10 UNITED NATIONS GLOBAL COMPACT PRINCIPLES

At EFICO we integrate the ten United Nations Global Compact principles in our strategies and actions: Additionally, we support the United Nations Guiding Principles on Business and Human Rights, following the Commodity Sector Guidance issued by the Swiss Government in November 2018.

HUMAN RIGHTS - PRINCIPLES BASED ON THE UNIVERSAL DECLARATION

§1 Businesses should support and respect the protection of international proclaimed human rights

§2 Businesses should ensure that they are not complicit in human rights abuses

LABOUR - PRINCIPLES RESULTING FROM THE INTERNATIONAL LABOUR ORGANIZATION’S DECLARATION

§3 Businesses should uphold the freedom of association and recognize effectively the right to collective bargaining

§4 Elimination of all forms of forced or compulsory labour

§5 Effective abolition of child labour

§6 Elimination of discrimination in respect of employment and occupation

ENVIRONMENT - PRINCIPLES DERIVED FROM THE RIO DECLARATION PRINCIPLES

§7 Businesses should support a precautionary approach to environmental challenges

§8 Undertake initiatives to promote greater environmental responsibility

§9 Encourage the development and diffusion of environmentally-friendly technologies

ANTI-CORRUPTION - PRINCIPLE BASED ON THE UN CONVENTION AGAINST CORRUPTION

§10 Businesses should work against corruption in all its forms including extortion and bribery

THE 17 UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

The Millenium Development Goals were transformed into the post2015 Sustainable Development Goals. The UN Member States agreed on the proposed 17 goals at the UN Summit in September 2015; the new framework came into effect as from January 2016. These new goals give an overview on how to tackle the world’s most pressing problems, including poverty, inequality and environmental destruction:

End poverty in all its forms everywhere

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Ensure healthy lives and promote well-being for all at all ages

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Achieve gender equality and empower all women and girls

Ensure availability and sustainable management of water and sanitation for all

Ensure access to affordable, reliable, sustainable and modern energy for all

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Reduce inequality within and among countries

Make cities and human settlements inclusive, safe, resilient and sustainable

Ensure sustainable consumption and production patterns

Take urgent action to combat climate change and its impacts

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Strengthen the means of implementation and revitalize the global partnership for sustainable development

EFICO GROUP | NETWORK OF COMPANIES

EFICO GROUP’s network of companies gives you direct access to the entire world’s coffee production. Our tailor-made services include sustainable sourcing, competitive price proposals & structuring, high quality assurance, smart logistics, current availability and forecasts, and much more.

EFICO GROUP

EFICO | A PASSION FOR COFFEE

EFICO is a green coffee specialist acting as a connector in the coffee value chain since 1926. EFICO covers the need of the roasting industry and small specialty roasters, and is able to offer their clientele unique varieties delivered from around the world.

CUPRIMA | COFFEE WITH AN IDENTITY

CUPRIMA is the group’s specialty coffee division and an additional EFICO response to the growing need to promote flavor and origin diversity. CUPRIMA’s coffee range consists of extraordinary qualities, prepared for both the connoisseur and the regular market. Based on the organoleptic profile, traceability and physical quality assessment, roasters can choose within 3 categories; Prima, Autentica, and Terra.

EFICO FOUNDATION | COFFEE FOR PEOPLE, PEOPLE FOR COFFEE

At EFICO, our sustainable sourcing commitment goes hand in hand with investment in a sustainable coffee future through the EFICO FOUNDATION. Established as a private foundation in 2003, the EFICO FOUNDATION’s goal is to positively impact coffee farmer’s livelihoods, prosperity and environment.

SEABRIDGE | GREEN COFFEE LOGISTICS

SEABRIDGE is a sustainable green logistics service center and distribution platform dedicated to green coffee in the port of Zeebrugge, founded to meet the existing community needs and to define a sustainable benchmark for all companies within the sector.

2022 KEY FACTS AND FIGURES

EVOLUTION CERTIFIED & VERIFIED COFFEES * 2007 - 2022

of our sourced coffees are certified or verified against sustainable standards

*In insight ‘Connecting the Value Chain, from Crop to Cup’ (p.20-24), you can read what we understand as certified and verified coffee and how we translate these facts & figures into reality & practice.

directly sourced from local actors

• 8 projects created concrete impact in 4 different countries: Colombia, Guatemala, Honduras & Nicaragua

• with direct improved possibilities, empowerment and prosperity for 1,856 coffee entrepreneurs

indirectly generating a positive impact on the lives of over 6,685 coffee families

At EFICO and EFICO FOUNDATION , we helped funding, developing, testing and finalising Equal Origin’s ‘Gender Equity Index’ tool. This tool is free to use and now available in three languages.

Two different studies are currently available: one for Extension and Advisory Service Providers (EAS) and one for producer organisations.

Those curious about the tool and reports can sign up for an Equal Origins account via their website: equalorigins.org

Our goal is to further use the tool with other partners and multiply the positive trigger effect.

We highly suppport initiatives as The Global Coffee Platform ’s Sustainability Reference Code, the Commitment’s Hub of Sustainable Coffee Challenge, the programs and trials of World Coffee Research and Equal Origin’s Gender Equity Index Tool.

Partnerships with

EFICO | A PASSION FOR COFFEE

EFICO is a green coffee specialist acting as a connector in the coffee value chain since 1926. EFICO covers the need of the roasting industry and small specialty roasters, and is able to offer their clientele unique varieties delivered from around the world.

HIGHLIGHTS | 2022

Reconnecting with our global and local partners

Field Trips | Travelling to the Origins

Several trips to Brazil, Colombia, Costa Rica, Ethiopia, Guatemala, Honduras, Nicaragua …

Events | Networking

• Q1 & Q2/2022 | Koffieverbond, BVDAKI-UPCAIC, ECF

April 2022 | SCA Boston

October 2022 | 13th SCTA Coffee

Forum & Dinner

• November 2022 | Sintercafé Costa Rica

Local Projects

ClimCoff

Fairs | Attending & Hosting

May 2022 | Le Paris Café Festival

Attending

June 2022 | World of Coffee Milan

Hosting Booth & Cupping at the Roaster Village

September 2022 | Paris Coffee Show

Hosting Booth & Cupping

Within ClimCoff partnership with the Botanic Garden of Meise, KU Leuven – Forest Nature & Landscape, CoffeeLab Independent and other institutions : Quality potential evaluation follow-up of genetic Robusta lines from the Yangambi region in DR Congo.

In 2022, blind sensory and physical analysis was performed with a panel of 3 of our EFICO/ SEABRIDGE Team to evaluate the quality profiles and potential. It turned out the washed samples have most potential.

For A Better Life

Non profit association For A Better Life (FABL) – an association founded in 2005 by Marc Dieusaert and The JAVA Coffee Company’s Wim Claes - is committed to making the world a better place, both at home and abroad.

On the occasion of FABL’s fundraising network event, EFICO contributed 1,000 EUR. The funds are destined to several purposeful local Belgian projects.

INSIGHTS | 2022

Encouraging and fostering a knowledge sharing culture

INTERVIEW WITH EFICO CENTRAL AMERICA’S DIRECTOR RENAUD CUCHET

Renaud Cuchet is Managing Director of EFICO Central America since 2007. He heads a team of traders and logistics experts in Guatemala City.

HAPPY INTERNATIONAL COFFEE DAY !

Since 2003, the EFICO Group has adhered to the 10 United Nations Global Compact (UNGC) Principles – covering Human Rights, Labour, the Environment and Anti-Corruption.

ORIGIN SNAPSHOT: ETHIOPIA, BEYOND HEIRLOOMS & HYBRIDS

Ethiopia prides itself as the birthplace of coffee, one of the most popular beverages in the world, which was discovered in the Kaffa region ...

LET’S PLAN(T) OUR FUTURE TOGETHER

EFICO plants 2023 trees in Belgium. This is completely insync with the group’s 2023 mission, ‘Better, Stronger, Greener, Smarter’. Let 2023 be a year of positive impact!

CONNECTING THE VALUE CHAIN, FROM CROP TO CUP

EFICO | CONNECTING THE VALUE CHAIN BASED ON A GREATER COMMON PURPOSE

We are currently living in challenging times; world trade was only just recovering from the pandemic when war broke out in Ukraine last year. In such a disruptive economy, doing business with purpose is more important than ever. As a coffee value connector, EFICO’s goal is to create value, transparency and traceability throughout the entire coffee chain, from crop to cup.

As you may know, EFICO is a family company with a purpose driven business mindset. We strive for a long-term and stable partnership within the value chain; we want to bring value back to the farmers and put our expertise at the service of coffee roasters.

Ninety-seven years ago, we embarked on a dynamic sustainability trajectory that continues to evolve, even (or even more so) in turbulent economic times.

Quality has been and always will be at the heart of everything we do, as we believe it is a great way to create value and experience passion.

In 2022 we added flavor diversity from crop to cup with 373 different coffees from 30 countries!

EFICO | PROUD TO BE PART OF LOCALLY EMBEDDED PARTNERSHIPS

Throughout the coffee value chain, we focus on smart partnerships; we build and strengthen the expertise of our partners to create maximum value. That is why our sourcing strategy is aimed at

maximizing sourcing through cooperatives and local exporters who invest value in their local economies.

We are therefore proud to say that 40% of our coffee comes from cooperatives worldwide and 42% from local exporters.

Most of our coffee suppliers have been working with us for decades and we grow together organically thanks to the mutual trust and shared values of food integrity, quality and sustainability. Our sourcing offices in Ethiopia, Central America and Brazil play a key role in connecting the value chain; they literally and figuratively stand alongside our partner producers.

EFICO YEAR 2022 | VERIFIED & CERTIFIED COFFEE FROM LOCAL COOPERATIVES & EXPORTERS

51% of our coffees is certified according to ORGANIC, Rainforest Alliance/UTZ and FAIR TRADE standards. On top of that

11% is verified and audited by external independent auditors against recognized sustainability standards. This goes way beyond the sectoral averages.

2022 KEY FIGURES FROM OUR MAIN SOURCING AREAS

While the stats give you a clear picture of the geographic breakdown of our certified and verified coffees, looking beyond the numbers can give you a better understanding of ‘why’ and ‘how’ this reflects country and market realities.

BRAZIL

Brazil is our number 1 sourcing country. About 1 on 3 coffee bags we source at EFICO has Brazilian origins. It is no surprise that these beans are a perfect basis for blends and single origin coffee. While 41% of certified coffee from Brazil seems low versus EFICO’s sourcing profile, this is way beyond sector averages. An additional 26% verified coffee brings the full percentage of labelled coffee to 67% Brazilian verified and certified. 90% comes from local cooperatives and local exporters. We work closely with them on fully traceability and transparent sustainable coffees. This will result in an additional 14% of our coffee that is on the way to being verified against sustainable coffee standards, bringing our total to 81%.

CENTRAL AMERICA

71% of our Central American sourced coffees are already verified and certified. 78 % comes from local cooperatives and local exporters.

While being very advanced at certification level, the region is having huge challenges in terms of migration, climate

change, productivity and security. With our local sourcing offices in Guatemala City and various ongoing projects of the EFICO FOUNDATION , we remain closely connected with our partners. We continue to invest in this region and continue to create added value by launching and implementing quality and sustainability initiatives and facilitating financing, to make our value chains truly sustainable.

ETHIOPIA

While only 37% is being certified, this goes way beyond the industry average. Our own operations in Ethiopia enable us to establish fully traceable value chains up to the washing station, with premium value for quality to the farmers. This adds 48% to our sustainably sourced volumes according to our own sourcing standards, bringing up the total to 85%. 91% comes from local cooperatives and our sourcing partner KURU.

EFICO’S FUTURE OUTLOOK | BEYOND CERTIFICATION

Our way forward goes beyond certification, envisioning carbon positive and quality coffee, sourced fairly from thriving coffee communities. We believe in a value chain where coffee roasters and their customers know the unique and complete fingerprint identity from crop to cup.

CUPRIMA | COFFEE WITH AN IDENTITY

CUPRIMA is EFICO Group’s specialty coffee division and an additional response to the growing need to promote flavor and origin diversity, and foster stable and sustainable supply chains that make sense in today’s challenging environment.

A dedicated CUPRIMA team of coffee experts and Q graders takes care of the selection, sourcing, logistics and sales of specialty coffee. Outstanding coffee qualities are selected, directly sourced and fully traceable down to washing station or farm level, while building win-win partnerships and connecting farmers and craft coffee roasters

For more information visit our website

Terra Prima

• SCA: 86+

• Exceptional coffees

• Unique sensory experiences

• Exclusive

• Optimal traceability

Autentica

• SCA: 84-86

• High quality coffees

• Authentic

• Available according to the crop calendar

• SCA: 82-84

• Typical of the organoleptic profile of its region

• Available all year

• Traceable to the region

With CUPRIMA , we sourced 296 different coffees from 14 countries in 2022, promoting flavor diversity whilst ensuring the future of coffee. x 1

various types of coffees

HIGHLIGHTS | 2022

Reconnecting with our global and local partners

Field Trips | Travelling to the Origins

Several trips to Brazil, Colombia, Costa Rica, Ethiopia, Guatemala, Honduras, Nicaragua …

Fairs | Attending & Hosting

April 2022 | Specialty Coffee Expo Boston

Attending & networking

May 2022 | SEABRIDGE

Guided Tour & Cupping

May 2022 | Le Paris Café Festival

Various Cupping Sessions

Collabs

Teaming up with SCA France

June 2022 | World of Coffee Milan

Cupping at the Roaster Village

September 2022 | Paris Coffee Show

Hosting Booth, Cupping and facilitating ‘Key Note’ World Coffee Research

October 2022 | Slow Coffee Festival Bucharest Various Cupping Sessions

Sponsoring ‘Le Championnat de France de Torréfaction’

Teaming up with World Coffee Research

CUPRIMA was very pleased to contribute to the International Multi-Location Variety Trial Cuppings. In 2022, the program turned seven years old -meaning a critical mass of original trial sites reached maturity- and produced its initial results on a global scale.

MORE INFO

CUPRIMA SUPPORTS

WORLD COFFEE RESEARCH

INSIGHTS | 2022

Encouraging and fostering a knowledge sharing culture

#CINNAMONGATE: WHEN EXPERIMENTAL FERMENTATION MEETS CRITICISM

Infusing coffee with flavours has been a hot topic for some time, generating a lot of buzz in the industry and causing many to seek ...

Click and read the full story

THE CUP OF EXCELLENCE, AND WHY IT MATTERS

Small farmers can enter and win the Cup of Excellence for the first time, flavour profiles continue to amaze and communities not known for specialty coffee thrive like never before …

Click and read the full story

WHAT TO KNOW ABOUT CASCARA, THE COFFEE

DRINK THAT’S MORE LIKE TEA

Cascara is found somewhere at the intersection of coffee and tea, and although it comes from the coffee plant, the drink doesn’t taste anything like coffee.

Click and read the full story

A COFFEE & MUSIC SITUATIONSHIP: SONIC SEASONING

Over the years, researchers have found that a fifth sense matters: sound. When noise is added to a coffee drinking/tasting ...

THE ART OF ROASTING FROM A ROASTER & GREEN COFFEE IMPORTER’S POINT OF VIEW…

To be able to offer very good coffee of consistent quality, a lot of experience and a relentless thirst for knowledge are required to find the perfect roast.

NOVEMBER 2022 – FIELDTRIP COLOMBIA: INSIGHTS, FORESIGHTS & LESSONS LEARNED

In November, we travelled through Colombia with our Colombian partner InConexus and some of our fellow roasters.

LET’S PLAN(T) OUR FUTURE TOGETHER CUPRIMA will plant trees with an impact in Belgium. The future is now, and we’re happy to plan(t) it with you!

CUPRIMA & WORLD COFFEE RESEARCH | PROMOTING FLAVOR DIVERSITY WHILST ENSURING THE FUTURE OF COFFEE

The future of coffee is at stake. Climate change, new pests and diseases, falling yields and rising production costs, along with a lack of training and resources, are all threats to the future of coffee. We can’t solve these challenges alone, but maybe together we can.

CUPRIMA is very honored to partner with World Coffee Research. Not only are we fully committed to preserving and promoting flavor diversity, we are also committed to protecting the future of coffee and the livelihoods of those who grow it.

World Coffee Research is the only global organization that takes a coordinated, collaborative and global approach to scientific research on coffee. Their goal is to discover and openly share a toolbox of coffee varieties, genetic resources and technologies with producing countries, creating a more sustainable future for coffee.

At CUPRIMA we fully understand and agree with why WCR puts origin diversity at the heart of their strategy. As fewer countries produce more of the world’s coffee, it becomes more difficult to find the unique flavors coffee drinkers want and coffee companies rely on. It poses a significant risk to the stability of coffee stocks. It also consolidates the benefits of agricultural productivity,

profitability and quality gains in the hands of fewer farmers and limits the distribution of coffee export revenue benefits to countries. Aligning global efforts to accelerate agricultural innovation in multiple countries to ensure a stable supply of quality coffee benefits coffee companies, coffee farmers and coffee countries, and drives consumer engagement.

Click and read the insight ‘Why Coffee Varieties Matter’

COFFEE FOR PEOPLE, PEOPLE FOR COFFEE

At EFICO, sourcing sustainably and establishing long-term partnerships with our customers and suppliers, facilitated by our local offices, is key. Our sustainable sourcing commitment goes hand in hand with investment in a sustainable coffee future through our EFICO FOUNDATION

By supporting innovative and scalable projects in coffee producing countries, along with the coffee roasting community and

institutional partners, a positive ripple effect is put into motion.

Established as a private foundation in 2003, the EFICO FOUNDATION ’s goal is to positively impact coffee farmers’ livelihoods, prosperity and environment. The multi-stakeholder approach adopted is unique and is a dynamic tool to foster partnerships. The EFICO FOUNDATION is about PEOPLE: from coffee farmers, their families and local communities to coffee roasters and coffee lovers.

To date, we report back on about 80 projects in 17 producing countries. Discover them on our website

IN SHORT: Private foundation, established in 2003

• Co-designs and supports projects that create a positive impact on coffee farmers’ livelihoods, prosperity and environment

• Projects are selected by an independent jury of experts

• A flexible tool to build a sustainable supply chain : support by sourcing coffee with EFICO

contributing 0.25 EUR/kg or direct transfer to the EFICO Fund: www.eficofoundation.org

• 100% of the contribution goes directly to the projects, EFICO covers operational expenses, funds are managed independently and transparently by the King Baudouin Foundation

Working together: a multi-stakeholder approach, fostering partnerships

IN 2022:

• 8 projects in 4 different countries with concrete impact

• direct improved possibilities, empowerment and prosperity for 1,856 coffee entrepreneurs generating a positive impact on the lives of more than 6,685 coffee families

HIGHLIGHTS | 2022

Reconnecting with our global and local partners

Field Trips | Travelling to the Origins

Various trips to Central and South America, Africa

Fairs | Attending & Hosting

It was nice to reconnect at WOC Milan and SCA Boston

Workshop

Collibri Foundation: Future Forward Day

Since 2004, Colombia Kachalú Original projects display a strong partnership and positive impact in the Santander region in Colombia.

This long-term partnership between FNC (National Coffee Growers Federation of Colombia), Collibri Foundation/ Colruyt and EFICO FOUNDATION/EFICO focuses on the empowerment of the next gen of coffee entrepreneurs.

INSIGHTS | 2022

Encouraging and fostering a knowledge sharing culture

GENDER EQUITY INDEX TOOL

They contribute anywhere between 40-80% of the labor it takes to get coffee beans from the farm to your final cup of coffee. At EFICO, we applaud the importance of women ...

COFFEE FOR PEOPLE, PEOPLE FOR COFFEE

At EFICO, our sustainable sourcing commitment goes hand in hand with investment in a sustainable future through our EFICO FOUNDATION.

In June 2022, Collibri Foundation invited all its project partners to its Future Forward Day. EFICO FOUNDATION and FNC were also represented.

Purpose of the day was knowledge sharing and brainstorming on collaborative impact and other specific themes with focus on empowerment of youth.

Initiatives such as these are very valuable to enhance collective impact and cross-pollinate ideas between the different partners of the projects.

Guatemala

Nicaragua

Colombia

Honduras

COLOMBIA

A new generation of coffee entrepreneurs

HONDURAS

Promotion of & education for healthy school children

GUATEMALA Healthy Home Kits for coffee farming families

GUATEMALA Entrepreneurs in action: Bachelors in coffee

GUATEMALA Education & technology empowering youth

GUATEMALA & HONDURAS

The future of coffee WCR Multi-location variety trial

NICARAGUA

Clean water and school supplies for children

NICARAGUA

Micro-credits for women smallholder producers

For this 2022 reporting, we focus on following newly initiated project:

ENTREPRENEURS IN ACTION, BACHELORS IN COFFEE

Santa Rosa, Guatemala

January 2022 to December 2023

After the Bachelors in coffee project that ran in 2018-2019 and the Bachelors in coffee follow-up project that ran in 2020-2021, this is the third project in place.

Cooperation between Maison Blanche Dael, FUNCAFÉ, Anacafé and EFICO Central America/the EFICO FOUNDATION

At the Las Flores Coffee School in Santa Rosa, Guatemala, 4 students are trained to graduate with a Coffee High School diploma and to become agents of economic and social development. Leadership and entrepreneurial training, with respect for spirituality and cultural identity are key pillars in the curriculum.

PURPOSE

• Train 4 young sons/daughters of small producers to graduate with a Diploma in Coffee

Methodology learning, including topics like leadership and entrepreneurship

Prepare the new graduates for the generational change of coffee production

• Motivate students in the classroom, via virtual learning, on-field and at home

• Communicate closely with the student’s parents to ensure a continuous support and motivation

• Build a bridge between the demand for competencies (technical coffee knowledge, attitudes and skills) and technical knowledge

Increase the employability of young people who graduate from this program

LEARNINGS EFICO FOUNDATION PROJECTS | 2020 - 2022

IMPACT

number of projects: 10 (see projects p.38-p.43)

direct improved possibilities, empowerment and prosperity: people reached directly: 2,201 coffee entrepreneurs people reached indirectly: 1,085 families

BUDGET

funds invested : 141,108 EUR

KEY RESULTS & LEARNINGS

SUSTAINABLE DEVELOPMENT IN NICARAGUA

Clean water and school supplies for children in rural communities that produce coffee in Nicaragua.

Location NICARAGUA

Project applicant Fundación Aldea

Timing August 2020 – September 2023

Impact Directly benefiting 30 schools, 1,000 students, 30 teachers and 30 parent committees of families from selected schools

Budget 40,014 EUR

Funding via Maison Josy Juckem

PURPOSE

• Installation of 150 water filters in at least 30 schools in rural coffee growing communities

At least 1,000 students consuming clean, qualitative water and proper use of water filters in their schools

• Provide at least 750 children with school kits to study, stimulation of qualitative education and school attendance

30 trainings for 1,000 children, 30 teachers and 30 parent-family committees

Consumption of clean water resulting in a reduction of gastro-intestinal diseases + food security

LEADERSHIP & ENTREPRENEURIAL TRAINING IN

Bachelors in coffee (follow-up project)

Location GUATEMALA

Project applicant Funcafé

Timing

January 2020 – November 2021

Impact Directly benefiting 5 students

Budget 15,396 EUR

Funding via Blanche Dael

PURPOSE

GUATEMALA

• 5 young sons/daughters of small producers graduated with a Diploma in Coffee at Las Flores Coffee School (Program won the 2017 SCA Sustainability Award)

• Communicate closely with the student’s parents to ensure a continuous support and motivation = key

By building a bridge between the demand for competencies (technical coffee knowledge, attitudes and skills) and technical knowledge, the employability of young people who graduate from this program increases

• All graduates will continue their studies at the University; most work and study due to limited resources

Esuela de Caficultura Las Flores is now a national reference school

SUSTAINABLE DEVELOPMENT IN

HONDURAS

Promotion of & Education for Healthy School Children in Lempira

Location HONDURAS

Project applicant

Timing

Fundación Amigos del Café

February 2021 – February 2022

Impact Directly benefiting 220 children, of which 105 girls & 115 boys

Budget 16,293 EUR

Funding via Hesselink Koffie

PURPOSE

Each student was provided with a School Kit and a Family Food Kit

• This, together with the education on hygienic habits, application of de-parasitizing and vitamin supplements and a healthy school menu supported in the basic needs during COVID-19

• In order to flourish in life, your basic needs need to be covered. Projects like this structurally contribute to sustainable development and social empowerment within the community

WOMEN EMPOWERMENT AND INCOME DIVERSIFICATION

Micro-credits with women smallholder coffee producers of Aldea Global

Location NICARAGUA

Project applicant Aldea Global

Timing October 2020 – September 2022

Impact Directly benefiting 30 women smallholder producers

Budget 10,000 EUR

Funding via Chacun Son Café & EFICO

PURPOSE

• Working the farm without access to financing and the market is producing to survive

• With the support, it has been possible for the producers to have more funds to their family costs, and to focus on those barriers that still persist in the field

Creating a credit record and entering the financial system is a blessing. The producers assisted with this fund have not only been able to support themselves with working capital, but they also learn to manage their budget, sell their harvest and create a business circle.

COVID-19 Emergency project

Location GUATEMALA

Project applicant Habitat for Humanity Guatemala

Timing August 2020 – December 2020

Impact Directly benefiting 16 families or 80 people

Budget 2,050 EUR

Funding Grootmoeders Koffie supports 6 families & EFICO 10 families

PURPOSE

Fundraising action for urgent COVID-19 support in Guatemala shared via social media

• Rural communities are already very vulnerable with little to no access to social security and are very fast trapped in a vicious circle of poverty; the COVID-19 pandemic directly impacted family income

• A heavy rainfall following tropical storm Amanda added landslides and floods, increasing economic pressure

Through the distribution of Foods & Hygiene Kits, workshops and educational training sessions, disaster risk reduction & family savings sessions, it was aimed to increase resilience & food security, and to prevent to spread of COVID-19

SPECIAL EMERGENCY PROJECT IN GUATEMALA

Disaster relief ETA x IOTA tropical storms: Food & Hygiene Kits

Location GUATEMALA

Project applicant Habitat for Humanity Guatemala

Timing November 2020 – March 2021

Impact Directly benefiting 70 families or 350 people

Budget 7,700 EUR

Funding Hesselink Koffie/Hoorens Koffie/Java/Lobodis/Maison Blanche Dael/Rombouts Koffie & EFICO

PURPOSE

• Fundraising action for urgent support families affected by tropical storms ETA x IOTA in Guatemala, shared via newsletter

• Purpose was to assist these families and to strengthen food security and health conditions

The 70 Food Kits comprised essential food items necessary for a family of 5 for 2 weeks and the 70 Hygiene Kits included a set of articles that cover personal and household hygienic needs

SUSTAINABLE DEVELOPMENT IN GUATEMALA

Education and technology empowering youth in San Rafaël Pié de la Cuesta, San Marcos

Location GUATEMALA

Project applicant Nuevo Platanillo Association for Development

Timing March 2021 – December 2023

Impact Directly benefiting 159 students

Budget 20,000 EUR

Funding via Hoorens Koffie, Emmi Caffè Latte & EFICO

PURPOSE

• Graduate more youngsters with a good education level and promote technological devices

Access to quality education and job opportunities

Computer center: The computer center built is the only in the villages and towns nearby that have internet access, that teaches with technologies, not even the government schools of the area have it. Technology allows students to be integrated in the era that we are living in.

• Scholarships: to establish the school as a model school in San Marcos so more youngsters will be enrolled

Free medical days to support with health care

IMPROVED LIVING CONDITIONS IN GUATEMALA

Healthy Home Kits for Coffee-Farming Families in Caserío El Bendito and Caserío Los Vásquez, Chiquimula

Location GUATEMALA

Project applicant Habitat for Humanity Guatemala

Timing October 2021 – November 2022

Impact Directly benefiting 64 families or 320 people

Budget 14,645 EUR

Funding via Hesselink Koffie

PURPOSE

• Construction of 9 smokeless stoves, 64 cement floors, 55 pilas (outdoor washing stations) and 64 water filters

• Improved health, increase disposable income and provision educational and technical training to families

Local leaders and partner families are involved throughout the process. The leaders help identify the local families with the greatest need. The partner families actively participate in training and construction to ensure that they are committed to utilizing the products and improving their health.

• By being involved in building, the positive effect on the whole community is long-term

A COMMON LANGUAGE, SERVING AS A POSITIVE TRIGGER FOR GENDER EQUALITY

Gender Equity Index Tool

Location WORLDWIDE

Project applicant Equal Origins

Timing February 2021 – Ongoing

Impact Directly benefiting service providers worldwide

Budget 5,000 EUR

Funding via EFICO & EFICO FOUNDATION

PURPOSE

The GEI is an assessment tool that helps service providers to build their awareness of gender equality and to embed it in their initiatives and training, with the end of goal of increasing the productive value of farms and their workers -> 67 questions spanning 5 domains of gender equity

• EFICO and EFICO FOUNDATION provided support to the GEI development together with a focus group throughout 2021; we tested the tool in its first phase with our partner in Nicaragua: Aldea Global. The positive outcome of the pilot test was a reassurance of the strong vision on gender equity present at Aldea’s team and the recommendations for improvement will be integrated

This project contributes to

This project contributes to

TAKING CARE OF YOUR COFFEE

SEABRIDGE is a high-end innovative service center for the coffee sector, located in the port of Zeebrugge, Belgium. Dedicated to green coffee logistics, it combines excellence in qualitative storage, sustainability and traceability. The SEABRIDGE warehouse is designed to store green coffee in the best conditions, and takes care by means of a highly automated process.

Skillfully trained and experienced personnel offer value added services such as reworking, screening, blending and repackaging of coffee in boxes, bags, big bags, or bulk according to customers’ requirements. Our highly experienced team offers flexible and tailored logistics solutions from origins to roasters. This includes :

Shipping Transport

Shipping Transport

Forwarding

Forwarding

Customs Documentation

Customs Documentation

Each batch of products is connected to a unique track-and-trace system, which allows realtime stock visibility and instant traceability, from origin to destination.

With SEABRIDGE, the EFICO group actively contributes to its ambition to use 100% green energy and recycle 95% of the waste streams. Through on-site green energy production by photovoltaic panels, recycling waste, on-site rail connection and CO² reduction, sustainable supply chain solutions are offered.

SEABRIDGE also harbours a dedicated quality lab, not only used for daily control of samples but also training sessions by licensed Q graders, in partnership with the Coffee Quality Institute. In 2018, SEABRIDGE became the first Belgian SCA Certified Premier Training Campus.

FIRST BELGIAN SCA LAB FOR Q GRADING SEMINARS

HIGHLIGHTS | 2022

Reconnecting with our global and local partners

You might think that the Dominican forests are lush. However, the reality is that the country is facing severe deforestation to clear land for agricultural purposes. At the beginning of 2022, SEABRIDGE planted 900 native (cacao) trees in the Dominican Republic to help restore the Northern Ecological Mountain Corridor. This was a collab with Zorzal Cacao and SILVA CACAO.

CLICK AND READ THE ARTICLE SEABRIDGE PLANTED 900 TREES IN THE DOMINICAN REPUBLIC

SEABRIDGE / PORT OF ANTWERP-BRUGES COLLAB

Port of Antwerp-Bruges is working towards a cleaner living environment by, among other things, reducing litter and the plastic soup. The 41 participating port companies - accounting for 2,263 participants - cleaned up several tons of litter.

In 2022, the Port of Antwerp-Bruges organized a ‘Cleanup’ competition. The team with the most original photo of the clean-up campaign had a chance to win the coveted Clean-up Price.

SEABRIDGE ’s ‘One for all and all for #PortCleanUp!’ team photo was declared the winner. Our colleagues from Zeebrugge received the trophy from Bruges mayor of Bruges, Mr. Dirk De fauw.

SEABRIDGE & SILVA CACAO COLLAB

SEABRIDGE & EFICO COLLAB

In November 2022, the two well-known training courses that SEABRIDGE organises in collaboration with the Coffee Quality Institute (CQI), took place: the ‘Calibration Course for Certified Q Arabica Graders’ and the ‘Q Arabica Training & Exam Course’. SEABRIDGE and EFICO hosted dozens of students at SEABRIDGE’s SCA-certified training campus. The participants were trained by the CQI instructor, assisted by the EFICO/SEABRIDGE expert quality team. It was again very inspiring to be able to guide and experience so much coffee passion and knowledge.

MORE INFO

SEABRIDGE training courses

SEABRIDGE | ON THE ROAD TOWARDS FUTURE FITNESS

SEABRIDGE | STATEMENT

‘As a logistics service center and distribution platform, SEABRIDGE’s activities are: unloading coffee from CIF -landed to in front-warehouse, storage, repackaging, sorting, cleaning and blending of conventional and specialty coffee, quality control in lab, training in quality control of coffee, administrative customs obligations and forwarding documents, loading of coffee and coordination of transport to final clients, on behalf of coffee traders.

We recognize the crucial role every business must play in creating a Future-Fit Society -one that is environmentally restorative, socially just and economically inclusive- and we are committed to playing our part.

We aspire to become a Future-Fit Business because we believe that our long-term success is tied to the value we provide to society. That means we must eliminate all of the potential negative impacts associated with what we buy, what we sell, and what we do.

Our biggest specific challenges are around climate action along the entire value chain, further development towards a fully circular economy and humane and environmental conditions in the upstream value chain.

Our operations are energy-intensive and not yet fully powered by renewable energy. Our focus is on improving and optimizing the energy efficiency of our operations and storage and further phasing out the use of fossil fuels. Detailed mapping of greenhouse gas emissions across our entire value chain is therefore a priority. From there, we will formulate strategic targets.

In addition, we will seek to create positive impact wherever we can, to speed up society’s transition to future-fitness through our own actions and by assisting others on the journey.’

THE JOURNEY | THE ROAD TOWARDS MEASURABLE IMPACT

WHERE ARE WE NOW? ASSESSING THE STATUS QUO | SDG MAPPING & STAKEHOLDER SURVEY

In 2015, the United Nations defined the roadmap for society towards 2030 and beyond, commonly known as the Sustainable Development Goals.

In order to accurately assess the importance of the Sustainable Development Goals for society and for SEABRIDGE, SEABRIDGE set up a SDG-MAPPING.

Consequently, the following SDGs seem of paramount importance for both society and SEABRIDGE:

SEABRIDGE also conducted a STAKEHOLDER SURVEY

The most important SDGs and underlying material themes for the SEABRIDGE stakeholder are depicted in the figure below.

These issues -due to their significant impact on society and/or on the value of SEABRIDGEwill be further incorporated into the organization’s long-term strategy.

WHERE DO WE WANT TO GO? DESTINATION ‘NET ZERO CARBON STANDARD BY 2050’ | COMMITMENT

SEABRIDGE wants to make a Climate Action Commitment to reach Net Zero by 2050 (or sooner).

Sustainability Trajectory

Ad Hoc Actions

Action 2022

‒

Carbon Footprint Scope 1-2-3

‒ Value Chain mapping + potential hotspot assessment

‒ Future-Fit User (Level 1)

Action 2023

‒ Energy efficiency (auto-consumption) (Scope 1)

‒ Carbon Strategy building Scope 1-2-3

‒ Future-Fit User (Level 2)

Action 2024

‒ Innovation packaging & transport

‒ Future-Fit User (Level 3)

Action 2025

Carbon reduction path -50%

‒ Human Rights upstream value chain

Carbon reduction path -90%

Net-Zero Carbon

HOW DO WE GET THERE ? DIRECTIONS | PATHWAYS TO TRUE SUSTAINABILITY

PATHWAY | CARBON REDUCTION STRATEGY

SEABRIDGE aims to halve emissions, both in scope 1 and 2 and in scope 3 by 2030. This is in line with the Paris Agreement and the European Green Deal.

In recent years, SEABRIDGE’s upstream transportation was already subject to changes that reduced the impact significantly.

Changing the transport AntwerpZeebrugge from truck to inland barge reduced the absolute emissions with more than 100 tCO2 year. This reduction took place before this carbon footprint was calculated.

The investment in PV solar panels on the roof of the warehouse produces a large amount of renewable energy which represents a significant impact in avoided emissions.

We acknowledge that incremental improvement of the status quo isn’t enough, so we intend to transform the way we do things. We will lead by example to encourage other businesses to do the same. We will further explore ways to reduce the impact of purchased goods and services.

We aim for a further drop in impact of upstream transportation.

• Mobile combustion (Scope 1) will be addressed by phasing out vehicles that run on fossil fuels.

• The capital investments (Scope 3 Cat 2) will be subject to business strategy and can result in temporary impact.

PATHWAY | SUPPLY CHAIN SUSTAINABILITY & CIRCULAR ECONOMY

SEABRIDGE intends to transition to a fully Circular Economy by 2050.

Besides Climate Action, the transition to a fully circular economy is the other specific challenge for SEABRIDGE.

Controlling finite material stocks and balancing renewable resource flows is the first principle of circular economy.

Optimizing resource yields by circulating products, components and materials in

us at the highest utility at all times, is the second principle.

Fostering system effectiveness by revealing and designing out negative externalities, is the third one.

SEABRIDGE focusses on all three of the major principles of circular economy.

PATHWAY | SOCIAL REPONSABILITY

Good health and well-being, covering both physical and mental issues, is of paramount importance for SEABRIDGE. SEABRIDGE wants to respect the development opportunities of every human being who contributes to the creation of its high-quality services.

Step by step, the social conditions are subject to due diligence. Respecting human rights at all stages in the upstream value chain is what we pursue.

Continuous training is necessary to meet the high ambitions for innovation

PATHWAY | GOVERNANCE IN OUR VALUE CHAIN

We are aware of the influence we have on our upstream and downstream value chains. The actual achievement of the above-mentioned paths will largely depend on the effectiveness of our influence on upstream value chains.

Establishing partnerships at different levels is an important aspect of achieving goals. This can range from supporting initiatives set up by staff, collaboration with training centers to working together towards goals with suppliers and other stakeholders.

However relatively limited the impact of this way of working may be, we encourage and support local economy.

Arrival container SEABRIDGE

LOOKING AHEAD

Global sustainability issues are percolating into the consciousness of governments and corporate businesses. Every day we realize more and more that without commitment and joint effort, we can no longer turn the tide. We all will be navigating these challenging waters for a while.

The good news is that EFICO has been on a greener course for some time, and has done a lot of work on this for many years. In the years to come, we will continue to further align our polished compass towards transparent and sustainable coffee chains.

We have already started to take stock of the current situation, and have begun to delve into all relevant and valid advices, guidelines and directives. And - quite as expected - we have already encountered a variety of obstacles and challenges. No man overboard, now it is furmost a matter of monitoring and assessing. After all, we want our business, our crew, our practices, our service and our moral compass to be in the right place.

We will carry out a comprehensive risk assessment of our sourcing areas so that we can continue to guarantee our responsibility in terms of social responsibility and nature conservation at all times.

Behind the scenes, we’ve already begun these preparatory activities, without compromising our presence and support in the origins or lessening our service to our roasters. All hands on deck for this journey that will lead us to a better, stronger, greener and smarter future!

Along this voyage, we will dock a few times to celebrate some memorable milestones.

We will literally and figuratively plan(t) the year as we start to go on. Together with our partner Go Forest, we will plant 2023 EFICO / CUPRIMA trees in Lasne, Belgium -a local Belgian commitment. This will be the first achievement of our internal ‘better, stronger, greener, smarter’ adage that we have set ourselves in the run-up to our 100th anniversary.

In the fall we will do an on-site check-up to ensure that our 2023 trees have received sufficient love, tender and care. Boots in the field, so to say, but this time not in the origins.

SEABRIDGE has been focusing on sustainability for years and is planning to go the extra mile in the coming years to further fine-tune their upstream processes.

Two decades ago, we formally declared that doing business should not be at the expense of people and the environment by establishing the EFICO FOUNDATION. Responsibility and sustainability were no longer an option, but our norm. In November 2023, we will raise the flag in honor of the 20th anniversary of the EFICO FOUNDATION with the launch of a new flagship project. A full project briefing will follow later, but we want to reveal a small tip of the veil here already. For good reason, our fore- and afterword are permeated with water metaphors. So think desertification and innovative, future-oriented solutions...

In the meantime, we remain active aboard working on current projects; we strive to continue generating sustainable impact and we live up to our slogan ‘COFFEE FOR PEOPLE, PEOPLE FOR COFFEE’. We have been on the right track for 20 years and we are definitely planning another 20 years.

Within 3 years we can fire 100 cannon shots in honor of EFICO’s 100th anniversary. Internally we are already polishing our compasses and setting sails to properly honor this resilient, dynamic centenary and her crew.

The coffee sustainability agenda is maturing, and so are we… With all our good intentions, good planning and ditto crew, we are well on our way to accelerating our journey towards a better, stronger, greener and smarter future.

Our anchor has been lifted, we only have to wish you and ourselves ‘Fair Winds and Followings Seas’.

ACKNOWLEDGEMENT

We would like to take this opportunity to express our utmost gratitude to all our long-term partners: from coffee growers and suppliers to coffee roasters.

A special thanks goes out to our institutional partners and civil society:

In a difficult context with several global challenges, your inspiration and continued support in our effort to contribute to the SDGs has made a difference. We are grateful for the exchanges, learnings and long-term cooperation.