Eight Steps Towards Launching a Sustainable Coffee-Sourcing Program
Featured author: Saurin Nanavati
I find drinking coffee especially tasty when I know the supply chain. While most coffee aficionados rate a cup based on acidity, body, taste, and aroma, my palate is geared towards detecting notes of deforestation, child labor, or gender inequality.
I crave coffee that empowers people, protects the environment, and provides a viable economic opportunity for coffee communities. However, adding sustainability to your favorite blend or single origin is a bit more complex than dashing your cappuccino with cinnamon.
When well-executed, sustainable sourcing programs can offer substantial value. Better ones tend to align with this general definition:
A known relationship with producers that goes beyond the transactional to include transparent processes that promote best practices in coffee production and processing to safeguard the rights and well-being of producers, workers, the community and the environment.
I refer to these programs as practicing “ethos” agriculture — supply chains that create value by sharing values.
Numerous organizations have been working on sustainability projects within the specialty coffee sector with supply chain partners committed to the long-term viability of the farmers and their communities. A great example of this is the Sustainable Agriculture, Food and Environment (SAFE) Platform- a multi-stakeholder alliance initiated by the IDB Lab, coordinated by Hivos and co-founded by private sector participants, donors and non-governmental organizations that share a common vision: improve the livelihood of farmers through the adoption of climate-smart agricultural practices, transforming coffee and cocoa landscapes.
Through the design and implementation of a robust M&E system for learning, led by the Committee on Sustainability Assessment (COSA), the Platform leverages existing knowledge, expertise, and resources from all its members in order to implement a series of projects that pilot or scale up innovative value chain approaches.
Encouraging efforts are underway in the specialty coffee trade, and here will I attempt to distill a simple recipe of eight core ingredients that will improve the taste of your coffee by adding the flavors of sustainability:
Step 1: Set Clear Strategic Objectives
Outline the time-bound goals and key processes and resources required to achieve desired outcomes.
Engage your stakeholders’ participation in their creation
Consider the desired long-term impacts first, then the mid-term outcomes that would lead to those, then the activities and investments that generate desired outcomes
Establish measurable, time-bound goals that are clearly articulated to supply chain stakeholders
Highlight key processes and resources to demonstrate how the program will be operationalized and managed
Step 2: Select Key Performance Indicators
You cannot manage what you cannot measure. These simple metrics will clearly measure progress toward objectives. Performance is replacing static scorecards.
Formulate all Key Performance Indicators (KPIs) with S.M.A.R.T (Specific, Measurable, Actionable, Realistic, Time-bound)
KPIs should align with international norms to facilitate accountability and benchmarking or comparability across origins and supply chains
Integrate KPIs into a system that encourages their active use in decision-making processes (e.g. Dashboards)
Documented guidance is necessary for applying KPIs to ensure they are consistently interpreted
Step 3: Understand Code of Conduct Guidelines
Pragmatic guidelines are needed so that all supply chain behavior is auditable and measurable.
Define clearly. Interpretations of ethical business practices vary from place to place. Local regulations are a necessary basis but may be insufficiently aligned with global expectations. State expectations clearly and realistically
A coherent approach should apply appropriately for different levels: aggregators, processors, producers, and hired labor
Guidelines for conservation, waste management, land use, human rights, and worker rights should be auditable and enforceable
Quantifiably assess specific risks or sustainability attributes associated with individual suppliers or the entire supply chain
Step 4: Ensure Traceability Protocols
Identify all the links in your supply chain to reliably pinpoint the product from source to consumption.
Identify all intermediaries, and ideally the transactions, throughout the supply chain all the way to the farm level
Ensure the use of a standard format for consistent collection of details about farmers. Consider including: unique identification code, producer name, village/town, phone, age, gender, volume sourced, avg. yields, GPS, number of trees/area under coffee cultivation, and associated varieties
Ensure annual updates and proper documentation to guide a potential audit of the Traceability Protocol
Consider mapping farms to understand the context of production zones in local ecosystems
Step 5: Sustainable Operating Procedure
Measure farmer practices and determine and provide what services are needed based on local stakeholder input.
Ensure that delivery of services are prioritized with local stakeholders, and are based in a credible needs assessment methodology
Establish a clear process for monitoring the performance of farmers, aggregators, and processors
If specific activities such as training, credit, soil analysis, or inputs are delivered, include a tracking system to monitor delivery and quality of services
Step 6: Verify to Improve the Process
When audits uncover non-compliance, seek to understand the root cause for that non-compliance, and provide a reasonable remediation period to come into compliance.
Verification is ideally used as a learning process for continuous improvement, not just as an enforcement tool
Provide a checklist of required information and clarity on how suppliers will be evaluated on key aspects of the sourcing program
Establish integrated systems for validating data sources to reduce verification costs and target field audits towards specific risks
Improve accuracy with some electronic or even remote sensing verification, in addition to traditional observational inspections
Step 7: Find your Impacts
What are the unintended and intended, and good and bad, impacts attributable to this sustainability intervention?
Utilizing targeted impact assessment can identify reasons for an outcome. Knowing how interventions such as training, certification, or credit affect an impact opens up practical solutions and more effective investments or policies
Science methods have advanced in the last decade to engage a better mix of quantitative and qualitative tools
Always look beyond single dimensions to include the environmental, social, and economic manifestations of change to usefully illuminate the realistic dynamics or trade-offs of farming and supply chains
Step 8: Visualize and Share Your Information
Simple presentations of results help engaged stakeholders see their progress towards key sustainable sourcing objectives.
Create access permissions to ensure sharing information is restricted based on the suppliers' role in the supply chain
The platform should provide guidance on tools for data collection and analysis criteria for rating suppliers’ performance.
Use online maps and dashboards to monitor a key set of metrics to measure the impact of coffee production, processing, and sales on surrounding communities and ecosystems
End result: Hopefully, a sustainable cup of coffee.
* This entry has been adapted from the Nov. 28, 2018, Daily Coffee News article with the author’s consent. The “Keys for a Successful Sustainable Sourcing Program (COSA, 2018).” was originally published in the 2018 Coffee Barometer.