Sustainable Harvest® 2021 Impact Report

Table of Contents

History of

Future Impact

Our History of Impact

Sustainable Harvest Coffee Importers was founded on the idea that all stakeholders in the supply chain should be valued and fairly compensated. Each member of the coffee supply chain—the grower, the miller, the exporter, the transportation professional, and the roaster—plays a key role in cultivating and delivering high-quality coffees that are sustainably grown and processed. From this premise, the Relationship Coffee Model was born.

Sustainable Harvest is viewed today as an early pioneer in the social enterprise movement, and it has served as a leading organization within the B Corp network. Our 2021 Impact Report describes Sustainable Harvest’s work through the lens of B Lab , the global agency that certifies B Corps and provides standards, guidelines, and tools to the B Corp network to help companies leverage their impact as part of a larger wave of social change.

We recognize that there is much work to be done, and we hold tight to our commitment to transparently bring actors together to do it. We also know that history is an important tool to inform a better future. With this in mind, we are proud to share our reflections on 2021, and look forward to continued and new partnerships to accelerate progress toward a healthy, resilient coffee system that benefits all.

years

an Oregon Benefit Corporation

the

in the

The Five Pillars of B Lab

B Lab uses a thorough certification process to set its standards for B Corporations. The certification process involves extensive questions and data collection in the following five categories, or pillars:

Governance evaluates a company’s overall mission, ethics, transparency, and engagement around its social and environmental impact. This section also evaluates the ability of a company to protect its mission and formally consider stakeholders in decision-making through its corporate structure (e.g., benefit corporation) or corporate governing documents.

Workers evaluates a company’s contributions to its employees’ financial security, health & safety, wellness, career development, and engagement & satisfaction. In addition, this section recognizes business models designed to benefit workers, such as companies that are at least 40% owned by non-executive employees and those that have workforce development programs to support individuals with barriers to employment.

Community evaluates a company’s engagement with and impact on the communities in which it operates, hires from, and sources from. Topics include diversity, equity & inclusion, economic impact, civic engagement, charitable giving, and supply chain management. In addition, this section recognizes business models that are designed to address specific community-oriented problems, such as poverty alleviation through fair trade sourcing or distribution via micro-enterprises, producer cooperative models, locally focused economic development, and formal charitable giving commitments.

Governance Workers Community Environment

Environment evaluates a company’s overall environmental management practices as well as its impact on the air, climate, water, land, and biodiversity. This includes the direct impact of a company’s operations and, when applicable, its supply chain and distribution channels. This section also recognizes companies with environmentally innovative production processes and those that sell products or services that have a positive environmental impact. Some examples might include products and services that create renewable energy, reduce consumption or waste, conserve land or wildlife, provide less toxic alternatives to the market, or educate people about environmental problems.

Customers

Customers evaluates a company’s stewardship of its customers through the quality of its products and services, ethical marketing, data privacy and security, and feedback channels. In addition, this section recognizes products or services that are designed to address a particular social problem for or through its customers, such as health or educational products, arts & media products, serving underserved customers/clients, and services that improve the social impact of other businesses or organizations.

Measured Through

Sustainable Harvest first became a certified B Corp in 2008 with a score of 134. In 2021, Sustainable Harvest achieved a B Corp Impact Assessment score of 151.4 , among the highest scores across all B Corps. In 2021, we also achieved our sixth consecutive year as Best for the World in the Community category. This means that we are in the top 5% of our size group for areas such as charitable giving, investment in diversity, and educational opportunities.

How We Measure Up

Our company

All B Corps

All U.S.-based B Corps

All B Corps in our Sector

All B Corps in our Size Range

Governance

Sustainable Harvest’s Score:

Total: 19.5 out of 20 Points

QUESTIONS ANSWERED 28/28 OVERALL SCORE 19.5

Our company

All U.S.-based B Corps

All B Corps in our sector

All B Corps in our size range

Workers

Sustainable Harvest’s Score:

Total: 29.4 out of 38.5 Points

QUESTIONS ANSWERED 48/48 OVERALL SCORE 29.4

Our company

All U.S.-based B Corps

All B Corps in our sector

All B Corps in our size range

Environment

Sustainable Harvest’s Score:

Total: 43.1 out of 135 Points

QUESTIONS ANSWERED 75/75 OVERALL SCORE 43.1

Our company

All U.S.-based B Corps

All B Corps in our sector

All B Corps in our size range

Total Score:

Community

Sustainable Harvest’s Score:

Total: 55.3 out of 70 Points

QUESTIONS ANSWERED 71/71 OVERALL SCORE 55.3

Our company

All U.S.-based B Corps

All B Corps in our sector

All B Corps in our size range

Customers

Sustainable Harvest’s Score:

Total: 4.1 out of 5 Points

QUESTIONS ANSWERED 7/7

Our company

All U.S.-based B Corps

All B Corps in our sector

All B Corps in our size range

OVERALL SCORE 4.1

Governance

Governance

Our Purpose:

We connect coffee producer organizations to dignified and equitable customer relationships.

Internal Governance

In 2021 we rebuilt our company-wide accountability chart. This chart was co-created with the involvement of each department and geography within the company. This was done to create clear lines of accountability across our departments, and to more closely align our work with our purpose, core values and guarantee. This document will continue to evolve as our company grows and changes over time.

In support of our accountability chart, each team created updated job descriptions that aligned with the updated roles on the chart. This has created more clarity of purpose for our employees. It is keeping all of us more focused and more accountable to one another and to the company’s mission.

We also adopted a weekly cadence of 90-minute meetings for each department. During these meetings, teams check in on a consistent set of team dashboard metrics and personal accountability items.

Finally, our leadership team conducted an annual meeting and three subsequent quarterly planning sessions to design and implement these new internal governance structures .

Our Brand Promise:

Every buyer knows their supplier; every supplier knows their buyer.

Our Core Values:

1. Build Great Relationships Through Transparency and Trust

2. Think Like a Founder

3. Level the Playing Field

4. Value Impact as Much as Profit

5. Create with the End User in Mind

Governance

Investment in Our Suppliers and Origin Staff

In 2021, 30% of our operational expenditures directly related to the support and development of our supplier partners in coffeeproducing countries.

Financial Ethics

We continued our commitment to thirdparty-audited financials this year.

Ownership

Sustainable Harvest is a family-owned business, with no external investors.

Fifty percent of the board of directors identifies as female.

Compensations and Benefits

• Health

•

Employment Policies

Financial

• We have 27 clearly written policies to protect workers in our recently updated employee handbook.

• All staff received anti-harassment, implicit bias and anti-discrimination training.

Community: The Model

The Relationship Coffee Model

The Sustainable Harvest Relationship Coffee Model transforms the traditionally linear and opaque coffee supply chain model to create robust and resilient relationship ecosystems. Through transparency, traceability, technology, and trust, we increase shared value and foster greater sustainability.

& Sourcing

of

sourced from:

length of business relationship

bought from

sources:

Total investment in the supply chain through partnerships and MVP:

Community: Suppliers & Sourcing

Most Valuable Producer Program (MVP)

The Sustainable Harvest Most Valuable Producer (MVP) program connects roasters with the top echelon of Relationship Coffee producers. This select group is uniquely dedicated to buyer relationships, sustainability, high quality and performance, and organizational excellence.

Sustainable Harvest organizes regional conferences for its MVP growers, which include training that is focused on quality improvement, increasing market access, and best practices in sustainability and organizational management. Another important component of the regional conferences are the meetings scheduled with roasters to forecast future contracts and align with the needs, goals, and expectations of both parties.

In 2021, activities included delivering eight webinars focused on critical areas needed to successfully navigate the year’s challenges: quality control, access to finance, logistics, and market trends.

Sa fari Bonaventure Cooperative Koakaka

15 | Su S tainable Harve S t® “Thank you to the MVP program. This visit at Kopakama and Kopakaki is one of the most beneficial and informative activities that I have participated in as a coffee cooperative manager. It was coordinated in such a way that I learned as much as I possibly could while being on the most time-efficient schedule. We are truly blessed to have been shared such a wide range of social-economic investment activities by Kopakama, from groundbreaking, coffee processing techniques mostly in [the] drying and dry milling process and toll milling services.”

MVP Program in 2021

MVP organizations in 2021

Farmer members included in MVP organizations:

Hectares included in MVP organizations:

67 33,300 79,443

MVP Members by Country

Community: Suppliers & Sourcing

MVP in Action: Q Processing

Twenty-nine MVPs from Colombia, Peru, Honduras, and Nicaragua completed the Q Processing certification course on July 28-August 10, which covered topics such as coffee chemistry and its effect on flavor; coffee processing methods; and different factors in processing that affect coffee quality, all critical factors and skill sets to ensure strong, mutually beneficial bus iness relationships with roasters.

Karol Aguilera, RAOS Cooperative

“It was my first experience in such an important course for us, Q Processing. I had always wanted to participate in one and thanks to the MVP program, I finally did. Although we could not interact in person as it was a virtual course, I consider that it has been one of the best we could take advantage of. I learned a lot, I loved the cuppings, I was able to learn more about the trends and the controlled conditions to guarantee the quality of the coffee in the different processes. Thanks to Sustainable Harvest for this great opportunity. We had a wonderful instructor; he was always giving us support so our small coffee producer organizations could have the best knowledge about coffee.”

Community: Suppliers & Sourcing

Partnerships that Make an Impact

Sustainable Harvest partnered with Challenges Worldwide to provide training and market access to coffee grower groups in Rwanda. As a result of the training we provided in coffee quality and operational excellence, four different cooperatives established new buyers for their coffees. By working with Sustainable Harvest, these groups increased their coffee exports 13% between 2020 and 2021.

Eric Nsanzinshuti

Buhanga Coffee

“

I am here to thank [the] Sustainable Harvest and Challenges Worldwide teams for the good training they have prepared that focused on different topics to build our capacity. We have benefited from gaining more skills which will raise the impact on our business professionalism. The partnership with Sustainable Harvest and Challenges Worldwide has helped our cooperative to make our first [international] export and join the MVP program. We hope to continue to increase our coffee production and continue making improvements to our cooperative in a social, economic, and environmental manner. The advice we have received from Sustainable Harvest and Challenges Worldwide has been better than any other organization.”

Community: Suppliers & Sourcing

Partnerships that Make an Impact

As part of the Unlock Women’s Potential project supported by Laughing Man Coffee , Sustainable Harvest worked with five coffee cooperatives in the Peruvian regions of Moyobamba and Cajamarca. Our staff worked with women growers to provide training that focused on coffee quality and consistency, diversifying and increasing income, market visibility, and time savings. The project activities included the effective use of drying tables (94 women), aviculture and honey production (115 women), and renewal of fine coffee varieties (93 women).

M ercedes del Carmen Chocan Alberca

Chirinos Cooperative

“My neighbors feel admiration for me, as they see my coffee come out clean, that it smells delicious, and my cooperative paying me a better price. For me, it is like fulfilling my dream, and now I can say that I can help my family move forward and I know that my children will follow our example.”

Community: Suppliers & Sourcing

Partnerships that Make an Impact

Sustainable Harvest and Peet’s Women’s Center for Entrepreneurship 2021 was a hands-on and fully-immersive program to develop demonstration farms and build women’s entrepreneurial capacity across 25 different areas in Huila, Colombia. The progra m included: basic financial planning and technology; building family farms for diversified income and nutrition; circular economi c practices to achieve environmental and business resilience; and building confidence and emotional resilience. The program was an overwhelming success across all four dimensions, and participants are currently working to scale it across their communities in 2022, including to engage youth to increase adoption of farming as a sustainable, profitable, and innovative business for future generations.

Mery Ledesma Coocentral

“Let yourself be trained, continue with the projects, make the most of everything they will teach you, technology, poultry farming, orchards, circular economy, take care of the environment, be better every day and continue learning.”

Community: Suppliers & Sourcing

Industry Research: Reporting on Coffee Trends Impact Partners in Coffee

In 2021, we released the results of the Verified Living Income pricing model. This was a partnership with ASOPEP, Bellwether Coffee, and Heifer International to develop a pricing model that anchors green coffee prices to farm-specific costs of production and Living Income Benchmarks. The model was an important contribution to the industry’s efforts to achieve economic opportunity for all by closing the living income gap for coffee producers.

Sustainable Harvest publishes a Weekly Market Report prepared by Chief Coffee Officer Jorge Cuevas. A longtime expert in the world of coffee importing, Cuevas provides industry insights and forecasts that are designed to inform decisionmakers throughout the coffee industry.

In 2021, the Weekly Market Report received:

Sustainable Harvest is proud of its longstanding partnerships with numerous organizations within the coffee industry and beyond. Here are a few of the companies, associations, banks, and NGOs we worked with in 2021:

Certifications to Ensure Sustainability

In 2021, approximately 70% of the coffees we sold were certified organic.

In 2021 we began following the GreenHouse Gas (GHG) Protocol to identify our Scope 1 and Scope 2 emissions for 2018-2020, and set 2018 as our base year.

We value third-party certifications to validate the sustainability goals associated with sourcing green coffee. Therefore, we chose to follow the Science Based Targets initiative (SBTi) to set and validate our emissions reductions targets.

MVP Program: Training in Sustainable Practices

Partnerships that Make an Environmental Impact

The One Acre Fund provided more than 100,000 locally prioritized shade trees to benefit 5,953 farming families who are members of the Sustainable Harvest MVP program in Southern and Western Rwanda. Shade trees are widely regarded as a powerful intervention at the intersection of shade trees and poverty.

The Inter-American Development Bank funded a multiyear project to scale climate-smart agriculture in Mexico. Working alongside World Coffee Research and the Committee on Sustainability Assessment (COSA), Sustainable Harvest is building climate resilience with more than 2,000 smallholder coffee farmers in Chiapas, Mexico.

The project includes three main components:

• Implementing best practices and digital training materials for seed nurseries based on World Coffee Research manuals

• Developing digital sustainability intelligence tools for producers to organize, manage, and monitor key performance data

• Increasing access to high-value markets for specialty coffee

Customers: Satisfaction and Feedback

Customer Satisfaction

The Relationship Coffee Model relies on keeping customers happy and informed, and providing them with a reliable source of high-quality coffees year after year. In 2021, we achieved a relationship milestone: The average number of years we have been doing business with our customers is 10 years!

We are also proud of how our customers have diversified over time. In 2021, Sustainable Harvest sold coffees to customers in nine different countries.

Customer Feedback

Sustainable Harvest has a long tradition of hosting supplier-buyer meetings on a regular basis, preferably in person, either in origin countries or by bringing suppliers to roasters’ facilities. During 2021, more of these conversations took place through video calls, but they were still frequent, and important in troubleshooting the disruptions created by the pandemic.

One notable example was the Relationship Coffee webinar organized with Keurig Dr Pepper, one of our customers. Through this webinar, Sustainable Harvest was able to build on its long-standing relationships to open up communication about supply chain uncertainties and negotiate solutions to help both sides agree on a path forward.

Customers: Quality Assurance

Tastify: Our Signature Quality Assurance Tool

Throughout our history, Sustainable Harvest has invested in technology to achieve our guarantee of connecting all buyers with our suppliers in meaningful ways. Our company developed its own digital tool, called Tastify, to calibrate quality across the supply chain.

Tastify is designed to build flavor profiles for each of the coffees we sell, using data from every person who cups the coffee. Each coffee receives a numeric score as well as a flavor profile. Tastify has proven to be an effective tool for ensuring product quality, consistency, and continuity from year to year.

Our Future Impact

After 24 years of importing coffee, Sustainable Harvest Coffee Importers is more committed than ever to connecting coffee farmers to dignified and equitable customer relationships.

With the help of B Lab and its rigorous certification process that holds us and other social enterprises to a high standard, Sustainable Harvest has a valuable set of tools to navigate its path of doing business for the greater good, and valuing impact while remaining profitable as a business.