The Nespresso Sustainability journey

The Positive Cup 2019 progress and 2020 outlook

01.07.2020

At Nespresso, we call our sustainability strategy The Positive Cup to reflect our ambition: that every cup of Nespresso coffee have a positive impact on the world.

When we launched The Positive Cup in 2013, we set ourselves a series of targets in three key areas of our business: coffee, aluminium and climate. These goals are to be reached by end of 2020 and each year, we report on the progress we have made.

The Positive Cup 2019 Update and Outlook provides detail on our achievements of 2019 and looks ahead to the future as we move into the final year of the plan.

Key highlights from 2019 include:

- Expanding the scope of the Nespresso AAA Sustainable Quality™ Program to include organic coffee. The first Nespresso organic coffee was launched in January 2020.

- Planting a further 1 million trees in coffee farms - taking the total to 4.5 million trees planted as part of our agroforestry strategy - protecting farmers against climate change and helping Nespresso operations to remain carbon neutral.

- Reaching our goal of a global 30% capsule recycling rate one year ahead of the target. This was among other efforts helped by recycling awareness consumer campaigns, including a collaboration with Swedish start-up Vélosophy to make a bicycle with recycled capsules.

- Opening the Nespresso recycling scheme to competitors and signing agreements to share our system with two other portioned coffee manufacturers - in France with JDE in 2019 and early 2020 in Switzerland with Delica AG.

- Joining a global taskforce to address the issue of low coffee prices and sharing our data to help IDH – The Sustainable Trade Initiative - develop sourcing and pricing strategies aimed at safeguarding farmers’ living income.

- Partnering with National Geographic to engage consumers on aspects of the Nespresso AAA Sustainable Quality™ Program, such as agroforestry and farmer welfare.

You will find more details in our annual sustainability update report. In addition, we have created a digital hub to help consumers and partners navigate our sustainability strategy and initiatives.

As we move into the final year of The Positive Cup, some challenges remain.

• We face challenges in our goal of expanding our capsule recycling programme. In some countries we are restricted by regulation on collecting our capsules from consumers after use, and in others by a lack of national recycling infrastructure. Currently, our global recycling capacity stands at 91% - this means that 91% of Nespresso consumers have a convenient recycling option – and we are working to find solutions in places where we are challenged by working directly with governments to change this situation.

• Working towards our 2020 goal to source ASI aluminium, we established the certified aluminium supply chain within our organization, allowing us to acquire ASI certified virgin aluminium. Our 2019 feasibility tests, evaluating the possibility of introducing Recycled aluminium shifted our focus during the year and opened new circular opportunities.

• We have continued our efforts to reduce the emissions per cup of coffee, achieving a 23 % reduction vs. 2009 baseline as well as in-setting around 10% of remaining global emissions using agroforestry.

2020 will mark the conclusion of the 2014-2020 The Positive Cup strategy, and next year will be our final report. We’re working hard to reach our targets, as well as looking ahead to the future as we develop our sustainability roadmap towards 2030 and beyond.