Nestlé, JDE Peet’s and USAID Launch Joint Southeast Asia Coffee Carbon Footprint Study
April 5, 2022 (BANGKOK) – Nestlé, JDE Peet’s and the United States Agency for International Development (USAID) Green Invest Asia project have recently launched a joint carbon footprint initiative for two key global Robusta origins in Vietnam and Indonesia as part of an unprecedented collaboration between the world’s two largest coffee buyers and 10 of their supply chain partners.
Enveritas, a data-driven sustainability non-profit specializing in verification services for the coffee sector, will lead the carbon assessment in the two key sourcing areas of Central Highlands, Vietnam and southern Sumatra, Indonesia, which cover more than 1 million hectares and produce nearly one-quarter of 2020 global coffee supply. The assessment is expected to be completed by the end of 2022.
The resulting open-source greenhouse gas emissions benchmark—calculated from standardized data to be collected from suppliers and partners—aims to be the first standardized method to assess emissions by and for the coffee sector in Southeast Asia. This carbon benchmark in commercial production areas is needed not only to determine a baseline of supply chain emissions, but also to attract and guide investment for low-emission business models and interventions to deliver climate benefits.
Simon Fox, who heads JDE Peet’s global carbon accounting and climate strategy for coffee, said: “We are pleased to continue deepening our partnership with USAID Green Invest Asia, and to be part of this unique, industry-led collaboration. JDE Peet’s is committed to tracking and reducing the carbon footprint of our entire coffee value chain, which requires both an accurate footprint baseline, and ongoing reporting tool.”
Global coffee demand is expected to triple by 2050, raising pressure on surrounding forests and other habitats in the tropical regions where it is grown as farmers look for new land to cultivate. While the number of corporations with net-zero emission goals increased 200 percent between 2019 and 2020, so far fewer than half are on track to deliver on those commitments. One challenge they face is the lack of greenhouse gas emissions data to calculate, measure, and ultimately demonstrate reductions of their footprints.
“This pre-competitive partnership with USAID Green Invest Asia provides the entire coffee sector a great opportunity to jointly develop and apply a common framework for carbon accounting and to generate common learnings, which will be beneficial way beyond Vietnam and Indonesia,” said Stefan Canz, Global Manager of Nestlé’s Farmer Connect (coffee and cocoa), the company’s farmer sustainability training program.
Nestlé and JDE Peet’s have both committed to responsibly sourcing 100 percent of their coffee by 2025.
“This tripartite partnership between USAID and some of the most active companies in Southeast Asia’s coffee sector illustrates the U.S. government’s Climate Strategy of working through supply chains to reduce greenhouse gas emissions from land use,” said Aaron Brownell, head of USAID’s Asia Environmental Office. “Our project USAID Green Invest Asia is actively identifying, designing, raising capital for and advising carbon-smart investments that benefit entire supply chains – versus only some companies in them.”
Findings from the joint carbon assessment will be uploaded to USAID Green Invest Asia, and shared through the 2021-2022 Sustainable Coffee Dialogues that USAID Green Invest Asia is co-hosting with Global Coffee Platform. Participating companies are expected to apply findings in their other supply chains in Southeast Asia and globally.