The Nespresso unique vertically integrated business model, from coffee sourcing to direct to consumer route to market, has enabled the company to implement a holistic approach to sustainable development across its entire value chain.
This end-to-end approach to sustainability encompasses a wide range of initiatives, focused on achieving specific targets in sustainable coffee sourcing; the production, use and disposal of capsules; and reduction of the carbon footprint of a cup of coffee.
In 2009, the company committed to source 80% of its coffee from its AAA Sustainable Quality™ Program, to put in place the capacity to collect 75% of used Nespresso capsules for recycling and to reduce the carbon footprint needed to produce a cup of Nespresso coffee by 20% by the end of 2013.
2013 has been a pivotal year for the company in its sustainability journey. It marked the achievement of each of the defined targets, as well as the 10th anniversary of the unique Nespresso AAA Program. The Program is a ground-breaking partnership with the leading environmental NGO, the Rainforest Alliance, which combines a focus on quality and sustainability to drive improvements in social and economic conditions for coffee farmers, as well as environmental preservation. The Program is a cornerstone of the company’s sustainability efforts and represents a long-term commitment to farmers and coffee growing communities.
In 2014, building upon the significant steps that the company has already taken over the last eleven years to improve farmer welfare and drive environmental sustainability in coffee sourcing and consumption, Nespresso has set out an ambitious strategy for 2020, The Positive Cup, to accelerate the company’s sustainability focus and introducing several major new initiatives that will drive positive outcomes for the business, society and the environment, supported by a CHF 500 million investment over the next six years.
The Nespresso Sustainability Advisory Board (NSAB) is comprised of experts and thought leaders in the area of sustainability. It has been established to solicit views and provide insight and recommendations to enhance the Nespresso long-term sustainability strategy and to serve as a base for partnerships on sustainability initiatives. It also establishes a collaborative platform for partners to share experiences and provide insights on broader sustainability trends and issues.
Each year, the Board will focus on specific topics and aspects of sustainability. The selection of topics is driven by a combination of external factors impacting economic, social and environmental sustainability through the coffee value chain and the specific dynamics of the Nespresso business.
The NSAB will discuss Nespresso's progress and further optimisation of its 2020 sustainability strategy. Across the two days, the following main themes will be covered:
In 2014, the Board reviewed and updated the ambitious sustainability initiatives presented in 2013. The focus was set on securing the highest quality coffee beans by strengthening the farmers’ resilience to socio-economic and environmental challenges, and ensuring a sustainable management of aluminium across our complete value chain. The following initiatives have been discussed and/or developed:
Nespresso also announced its 2020 Sustainability strategy, The Positive Cup, moving forward and the creation of Nespresso Sustainability fund. The Positive Cup program incorporates ambitious goals in the areas of coffee sourcing and social welfare; aluminium sourcing, use and disposal; and resilience to climate change.
In 2013, the Board examined the main themes of “People” and “Planet”, with a focus on the Nespresso AAA Sustainable Quality™ Program and driving economic, social and environmental sustainability in coffee growing communities. Has been discussed:
Additional discussion points covered multi-stakeholder engagement, such as how to engage with international development agencies, civil society organizations and public authorities to build effective coalitions on key topics in order to deliver real farmer benefits; how to engage consumers and the public to drive awareness and advocacy on sustainability topics; and how to integrate intermediaries and suppliers into the overall creating shared value approach.