Nespresso on track to meet CHF 500m investment to advance sustainability goals
Nespresso has launched its first Creating Shared Value report based on the Global Reporting Initiative framework. The business reports it is on track to reach its ambitious sustainability targets by 2020 involving ground-breaking work in conflict zones within Africa and Colombia.
The report sets out Nespresso’s commitment to driving sustainable innovation through its Positive Cup strategy – the company’s vision for ensuring that every cup of coffee creates greater value for society and the environment.
Jean-Marc Duvoisin, CEO of Lausanne, Switzerland-based Nespresso, said, “Sustainability lies at the heart of our business model and brand. By working directly with farmers and NGOs, we want to tackle some of the big challenges we face as a global society in areas such as South Sudan and Caquetá in Colombia, while ensuring a sustainable supply of the best quality coffee.”
CEO of Techno Serve, William Warshauer said, “Nespresso is one of only a small handful of companies brave enough to go into some of the world’s challenging regions and provide the support these farming communities need to establish as sustainable future.”
Nespresso is focusing on three core areas – coffee sourcing, aluminium and climate. Highlights from the report include:
- Collaboration with some 45 partners ranging from Fair Trade and the Rainforest Alliance to deliver solutions to sustainability challenges;
- Since 2014 alone, the investment of CHF 197 million in programs that will impact on 11 of the UN Sustainable Development Goals (SDGs);
- Supporting the livelihoods of farmers by sourcing 82% of coffee through the Nespresso AAA Sustainable Quality Program. Strong progress towards the goal of 100% AAA certified coffee by 2020;
- Creation of the Nespresso Sustainability Innovation Fund (NSIF) and the doubling of Nespresso’s initial seed capital to USD $20 million to support projects like climate-smart agriculture in East Africa with backing from the World Bank BioCarbon Fund;
- Pioneering a new standard for sustainable aluminium sourcing as a founding member of what is now the Aluminum Stewardship Initiative (aluminium-stewardship.org), grouping civil society and key players in the industry to drive a common agenda to protect people and the environment throughout the aluminum value chain – from bauxite mining to finished product;
- Significant progress in recycling with more than 100,000 collection points now in place and several local authorities accepting capsules in their recycling schemes;
- Planting of 1.4 million trees in AAA coffee producing regions over the past two years and on track towards goal of planting 5 million trees by 2020.
As the business looks to the next stage in achieving its 2020 goals, it will focus its investments on further actions, such as expanding agroforestry initiatives and working closely with its 300 agronomists to continue the roll out of the AAA program. Nespresso is also planning to expand its recycling collection schemes to make further improvements to the valorization and recycling rate of capsules. The company will also use the Nespresso Sustainability Innovation Fund to accelerate co-financing solutions for proven business models in critical areas such as community milling in coffee growing regions.
Nespresso continues to strengthen its AAA Sustainable Quality Program, which focuses on delivering high-quality coffee production as well as improving the livelihoods of farming communities by working directly with farmers.
Originally operating in Latin America and Asia, Nespresso expanded its AAA Program to train 70,000 farmers in 12 countries since 2009. Most recently, the program has been extended to east Africa in an area known as the cradle of coffee. In addition, the business has supported the development of coffee communities in regions where there has been conflict. In South Sudan and Colombia, initiatives have revived rare and unique single origin coffees.
Further investment is directed toward global action against climate change. Nespresso continues to reduce the carbon footprint of a cup of its coffee, which is now down more than 20% since 2009. By 2020, Nespresso is committed to further reduce the carbon footprint of a cup of coffee to 28% vs. 2009.
Together with the NGO, Pur Project, the company is expanding its carbon in-setting program, which builds resiliency in Nespresso own supply chain by planting trees to help protect coffee landscapes against the threat of climate change. Through the agroforestry initiative, Nespresso has planted 1.4 million trees in the coffee-growing regions of Colombia, Guatemala and Ethiopia, taking a holistic approach to tackling both environmental and social challenges. With these extensive in-setting efforts Nespresso has achieved 100% carbon neutral operations.