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ts Monday norning, t|e frst snowfall of winter is visiole on t|e Swiss
!"#$%&'$( (#**"#$+'$, -&#(&$$./ &$+ !"#$%"##&s Head of Sustainaoility
0.*"!. 1.*.2 &$+ %3. !"#$%"##& sustainaoility tean are drinking t|e frst
of nany !"#$%"##&# of t|e day. T|e conpany |as recently celeorated t|e
tent| anniversary of its sustainaoility approac| for farners, t|e !"#$%"##&
lll Sustainaole Cuality' Progran
4
(lll Progran), and is in t|e process of
planning |ow to ouild on its successes and create fres| ideas to address
nultiple and conplex c|allenges in t|e coffee value c|ain.
T|e conpany |as cone a long way since 2003 w|en it frst launc|ed its
strategy to enoed sustainaole coffee sourcing practices into t|e ousiness.
5*"! (%#+'.(
2
designed to understand t|e environnental, econonic and
social inpact t|roug|out t|e value c|ain energed a conpre|ensive plan
t|roug| its Ecolaooration' franework. t set out to tackle issues as wide
ranging as productivity on t|e farn, t|roug| to recycling and reduction of
,*..$3"#(. ,&( .!'(('"$( 67879
3
in distrioution and consunption.
lgainst a oackdrop of glooal clinate c|ange, expectations fron
governnents, environnental groups and consuners for ousiness to play
a role in reducing green|ouse gas enissions were continually growing.
T|e !"#$%"##& tean nused on t|e possioility t|at one day it would oe
great if t|e conpany could create an espresso t|at not only reduced its
negative inpacts t|roug| its value c|ain, out t|at nade a 'net positive'
contrioution to oot| its farners and t|e environnent.
n 2009, !"#$%"##& nade a connitnent to reduce t|e caroon footprint
:
of
a cup of coffee oy 20 oy 2013. T|e conpany started tackling t|e inpacts
of t|e use of coffee nac|ines at consuner level t|e largest source of
CHC enissions along t|e coffee value c|ain oy reengineering t|en
and developing nore innovative, |ig|perforning and energy effcient
nac|ine nodels, w|ic| consune 40 less energy.
But as t|ey speed off to t|eir frst neeting t|ey reflect on |ow t|e tine
|as cone for innovative approac|es to tackle t|e second na|or area of
!"#$%"##&'s caroon footprint t|at of coffee production, w|ic| represents
25 of t|e entire caroon footprint of t|e value c|ain. W|ile its farn
focused lll Progran already included a range of environnental criteria,
several of w|ic| contrioute directly or indirectly to caroon reduction, t|e
!"#$%"##& tean realizes t|at lll farns and t|eir landscapes associated
represent a oig opportunity to address t|e c|allenge of CHC enissions
glooally.
1. See Backgrounder "!"#$%"##&
Sustainaoility MBl C|allenge 2014".
2. For exanple t|e Life Cycle lssessnent
conducted in 2005 (see lnnex 1), and t|e
Peal Farner ncone' (PF) study.
3. "Creen|ouse gas enissions" are
expressed in tons of "CC2 equivalent" and
t|eir assessnent is known as "Caroon
footprint".
4. Defnition. "l neasure of t|e total
anount of caroon dioxide (CC29/ !.%3&$.
(CH4) and nitrous oxide (N2C) and ot|er
socalled green|ouse gases enissions of
a specifc systen or activity, considering all
relevant sources, sinks and storage wit|in
t|e spatial and tenporal ooundary of t|e
specifc systen or activity. T|e footprint
is calculated as caroon dioxide equivalent
(CC2eq) using t|e relevant 100year glooal
warning potential (CWP100)."
(Wrig|t et. al, 2011).
!"#!#$%&' )& %&*+'")*+,
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!"#$%"##& "#$ %&'(()*+) ,-./
1.1. 00MPANY PR0FLE
!"#$%"##&(s story goes oack to 198C wit| a sinple out revolutionary idea. enaole
anyone to create t|e perfect cup of coffee |ust like skilled oaristas. T|e core concept
of t|e orand is t|e custonized custoner service, t|e nac|ine and capsule design
interacting to deliver a |ig| quality and consistent cup of coffee fron t|e confort of
|one, t|e effciency of t|e preparation process also neans effciency of water and
energy use. Since t|en, t|e conpany, an autononous, glooally nanaged ousiness of
t|e Nestle group wit| a preniun positioning, |as experienced rapid narket growt|.
n 2000 !"#$%"##& |ad only 1 ooutique store and 331 enployees. Last year, it was
present in alnost C0 countries in Europe, Nort| lnerica, and lsia, wit| nore t|an
9,500 enployees and nore t|an 320 ooutique stores selling coffee and nac|ines.
Pecently, a report fron t|e narketing departnent s|owed t|at !"#$%"##& 3&( !"*.
t|an 2.5 nillion Faceoook fans and over 250,000 custoners visit t|eir desktop and
nooile econnerce platforns ooutique every day.
T|e success of t|is |istory is ouilt on t|e conpany's t|ree ley Crowt| Drivers.
create t|e |ig|est quality )%*+, -%.
5
coffees oy ensuring only t|e |ig|est
quality coffee nakes its way to its Cluo Menoers or consuners
ouild a loyal consuner relations|ip t|roug| regular interaction w|ic|
enaoles !"#$%"##& to neet or anticipate t|eir expectations, and
operate t|e ousiness in a sustainaole nanner t|roug| efforts suc| as t|e
!"#$%"##& ;;; 1*",*&!
(See lnnexes 2, 3 & 4 and Backgrounder "!"#$%"##& Sustainaoility MBl C|allenge 2014" for nore details
on t|e conpany profle)
1.2. !"#$%"##& APPR0A0R T0 CUALTY 00FFEE
S0UR0NC
!"#$%"##&'s strategy is to ensure t|at eac| |erneticallysealed coffee capsule
contains only t|e fnest selection of coffee sourced fron specifc regions around t|e
world.
Cnly an estinated 1 to 2 of t|e coffee grown glooally neets t|e specifc quality,
taste and arona profles required oy !"#$%"##&. n eac| sourcing country, specifc
regions or 'clusters'
C
t|at neet particular sensory conditions
<
are selected. Cne of
t|e nain tools to ensure a sustainaole and consistent quality of eac| cluster is t|e
lll Progran developed in collaooration wit| t|e Painforest llliance. t is t|e direct
relations|ip !"#$%"##& |as wit| its carefully c|osen coffee growing connunities
and nore t|an C2,000 farners.
Since 2003, t|e lll Progran |as oeen developed in Brazil, Colonoia, Costa Pica,
Cuatenala, Mexico, Nicaragua, ndia and Et|iopia. Today, over 80 of t|e coffee is
sourced fron farns neeting standards estaolis|ed oy t|e lll Progran and it is
expected to increase over t|e next few years. !"#$%"##& is developing new sources
of coffee and recently announced two new initiatives in lfrica. t|e expansion of t|e
lll Progran into Et|iopia and lenya and a progran to reestaolis| coffee supply
fron Sout| Sudan.
5. )%*+, -%. usually refers to a regional wine
classifcation t|at designates a vineyard
known for its favoraole reputation in producing
|ig| quality wine. !"#$%"##& #(.( %3'( %.*!
to defne coffee varieties and t|eir potential as
|ig| quality grains for coffee.
C. !"#$%"##& selects specifc coffee regions
w|ere t|e unique conoination of soil, altitude
and vegetation creates a unique flavor profle.
Croups of farns in t|ese regions are t|en
called clusters.
7. Coffee c|aracteristics suc| as taste, arona,
visual, aftertaste, acidity.
4
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1.3. DES0RPT0N 0F TRE VALUE 0RAN N 00FFEE
SUPPLYNC 00UNTRES
!"#$%"##&(# coffee value c|ain includes a conplex set of interactions oetween key
actors involved in t|e process. W|ile eac| coffee supplying country |as specifc
particularities in t|e structure of t|e value c|ain, t|ere are generic interactions and
processes (see Figure 2).
Fgure 2. SmpIhed vaIue chan for sourcng !"#$%"##& 8=>>55I
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More t|an C2,000 individual farners ("producers") sell t|eir coffee to "suppliers."
Producers are nostly snall|olders, often widely dispersed even wit|in t|e sane
growing region. Sone are individual farners, ot|ers are organized into cooperatives
or associations, and t|ey use diverse coffee farning systens. n Brazil, intensive
nonoculture is nore prevalent, and in Central lnerica, Colonoia,
8
lenya and ndia,
9

coffee usually grows under sone level of s|ade. t nay oe t|e nain crop on t|e
farn out nixed wit| sone oanana, forest tree species and fruit trees, or it nay oe
under an agroforestry systen w|ere coffee trees are planted under specialized
and controlled s|ade provided oy one or a few tree species. !"#$%"##&'s partner,
Painforest llliance, provides guidance on t|e optinun nix of tree species t|roug|
its Sustainaole lgricultural Network (SlN) criteria
10
(under t|e SlN criteria t|ere are
at least 12 different tree species t|at can provide t|e oasis of agroforestry systens).

"Suppliers," w|o can oe "cooperatives," "ouyers" or "exporters," consolidate and
process t|e coffee according to specifc quality standards estaolis|ed oy !"#$%"##&/
resulting in lll coffee (See lnnex 5 on coffee processing net|ods). Depending
on t|e country, coffee producers nay perforn t|e early stages of processing (farn
nilling) or t|e suppliers nay. n oot| cases t|e supplier is responsiole for delivering
t|e specifc quality requirenents to !"#$%"##&. Not all coffee nakes t|e grade.
Cn average, oetween only 20 to 40 of a farns |arvested oeans will neet t|e
standards required for !"#$%"##& to purc|ase t|en. !"#$%"##& refers to t|e ratio
of total farn oeans |arvested to lll purc|ased oeans as t|e "dilution rate". l
differentiated price and additional preniuns are paid oy !"#$%"##& to eac| supplier
for t|e coffee t|at neets t|e lll criteria. T|en t|e supplier pays a discretional
clusterspecifc price preniun to producers on top of t|e going narket price for
t|at cluster. ln additional preniun is also paid to suppliers to fnance tec|nical
assistance for "producers" in order to support quality, sustainaoility and productivity.
lpproxinately 240 agrononists fron different suppliers in t|e sourcing countries
work on oe|alf of !"#$%"##& and t|e lll Progran.
T|e lll Progran is adapted countryoycountry and regionoyregion, in order to
address specifc c|allenges, suc| as s|ade control, |arvest tec|niques, pruning,
soil and c|enical nanagenent, coffee c|erry drying nanagenent (relevant to t|at
origin's c|aracteristics), organizational, agrononical, environnental, anong ot|ers.
!"#$%"##&'s key partners in t|e lll Progran, Painforest llliance and t|e SlN,
play a signifcant role in training agrononists in auditing procedures according to
internationally recognized guidelines.
l sop|isticated online traceaoility systen gives !"#$%"##& a conpre|ensive picture
and data set of every farner supplying its coffee. t also allows coffee growers to
know w|o is ouying t|eir coffee, w|ic| is not always t|e case in conventional coffee
supply c|ains.
Cver t|e years, !"#$%"##& |as oenefted fron collaooration wit| developnent
agencies,
44
acadenic and researc| institutions,
12
NCCs,
13
and local and national
coffee organizations. lll t|ese actors |ave cooperated wit| !"#$%"##&'s work and
are involved in different aspects of t|e lll Progran or pro|ects.
8. Estinates of s|ade coffee are currently
around 40 out conversion to sun varieties
seens to oe a trend. For nore infornation
please refer to Coffee Crisis in Central lnerica.
npacts and Strategies page 55, availaole
at. |ttp.//wwwwds.worldoank.org/external/
default/WDSContentServer/W3P/B/2003/04
/23/00009494C030404042C2852/Pendered/
PDF/nulti0page.pdf
9. 100 s|ade. For nore infornation please
refer to. |ttp.//www.|osuna.con/docunents/
=>("*.20Plantation120403.pdf
10. |ttp.//sanstandards.org/userfiles/file/
SlN20Sustainaole20lgriculture20
Standard20July202010.pdf

11. T|ese include nternational Finance
Corporation (FC), nternational Union for
Conservation of Nature (UCN), United States
lgency for nternational Developnent (USlD)
12. Central lnerican nstitute of Business
ldninistration (NClE), Sustainaole Markets
ntelligence Center (CMS), CPECE are t|e key
partners.

13. ncluding SlN, Poot Capital, lgricultural
Cooperative Developnent nternational/
Volunteers in Cverseas Cooperative lssistance
(lCD/VCCl), Tec|noserve
4
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2.1. 0LMATE 0RANCE AS A CL0BAL REALTY
Clinate c|ange is a largely accepted reality, and t|e world's clinate is expected to
continue to c|ange as long as green|ouse gas levels continue to rise (UNFCCC,
2013). Clinate c|ange |as already |ad ooservaole effects on t|e environnent. n
t|e 2013 PCC report,
4:
clinate scientists are now "at least 95 percent certain t|at
|unans are responsiole for t|e na|ority of t|e clinate c|ange effects seen since t|e
1950s, including warning oceans, nelting ice and rising sea levels." lccording to t|e
latest assessnents of CHC enissions, agriculture (including livestock) contrioutes
approxinately 14 of glooal CHC enissions fron w|ic| coffee production represents
0.14 (see Taole 1).
TabIe 1. Breakdown of totaI gIobaI CHC emssons accordng to actvty
Source. Clinate C|ange, lgriculture and Food Security's, 2013, Haggar et al, 2011
2.2. RESP0NSES T0 0LMATE 0RANCE 0RALLENCES
% '()*+(,)-.(,/ +*01.(0*
Pegardless of w|ere t|ey are enitted, t|e inpact of CHC enissions are glooal.
T|is is one reason w|y efforts to address clinate c|ange |ave oeen t|roug|
international collaooration and governnental agreenents like t|e lyoto Protocol,
4<

agreenents under t|e C8
18
and t|e lsia Pacifc Partners|ip on Clean Developnent
and Clinate (lPP).
19
But t|e scale of t|e c|allenge requires a conpre|ensive and
glooal response fron all sectors of society governnent, ousiness and consuners.
T|e European Trading Sc|ene (ETS) operates in over 30 countries. l wide range of
systens involving caroon taxes and trading |as also energed at oot| national and
suonational levels, including PECC in t|e US. Mandatory reporting of enissions is
increasing as part of fnancial and nonfnancial disclosure requirenents. However,
to date, oot| trading and disclosure are largely linited to enissions under t|e control
of conpanies' direct operations. T|e conplexities and cost of reporting on enissions
oy suppliers 'upstrean' or 'downstrean' continue to oe a c|allenge.
14. See report at |ttp.//www.
clinatec|ange2013.org/inages/uploads/
WClP5SPMoroc|ure.pdf
15. FlC reports a total world rice production of
719,738,272 Tonnes in 2012.

1C. FlC reports a total world coffee production
of 8,82C,903 Tonnes in 2012.
17. T|e lyoto Protocol is an international
agreenent linked to t|e United Nations
Franework Convention on Clinate C|ange,
w|ic| connits its Parties oy setting
internationally oinding enission reduction
targets.

18. T|e Croup of 8 includes Canada, France,
Cernany, taly, Japan, t|e Pussian Federation,
t|e United lingdon, and t|e USl.
19. T|e lPP is a nontreaty partners|ip
estaolis|ed oy lustralia, ndia, Japan, C|ina,
Sout| lorea and t|e United States in July 2005
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% 3.+1.+,)* +*01.(0*
Many conpanies, well aware of t|e inportance of t|e issue for t|e planet, t|eir
ousiness and s|are|olders, |ave nade puolic connitnents to reduce CHC
enissions as part of t|eir corporate social responsioility or sustainaoility strategies.
T|erefore, t|ere is already a degree of conpetitive activity around caroon reduction
strategies. Sone ousinesses set targets to oe caroon neutral
20
(for exanple Coogle,
Ya|oo), ot|ers seek only to reduce t|eir caroon enissions (Coca Cola, !"#$%"##&9
and ot|ers, suc| as Cool Planet Energy Systens, are aining to go caroon negative.
lvis, a na|or glooal car rental conpany is operationally caroonneutral, and offers its
custoners t|e opportunity to conpensate t|e CHCs associated wit| t|eir car rental
t|roug| offsets (Business Wire, 2013, Caroon Strategy, 2013, Coca Cola, 2013, nner
City Fund, 2013, lvis, 2013).
lnong interesting initiatives on t|e topic, Mclinsey developed a costcurve for
countries to facilitate decisionnaking on t|eir enissionsreduction strategies and
an increasing nunoer of conpanies are using t|is tool to orient t|eir prograns. (See
lnnex C.) PUMl, t|e Cernan sports apparel naker, |as oased its strategy on t|e
creation of an accounting systen t|at puts dollarsandcents value on different
environnental aspects of its operations including CHC enissions anongst ot|ers.
By doing so, PUMl enaoles s|are|olders and suppliers to understand t|e nagnitude
of t|e conpany's environnental inpacts, prioritize w|ic| ones to tackle frst and
incorporate t|is infornation into ousiness decisionnaking (Put & Perera, 2013).
Tesco, a leading Britis| retailer, |as created an internal "s|adow price" for caroon,
w|ic| in turn |elps guide its investnent decisionnaking (Ernst and Young, 2010).
Tesco also notes it is naking lowcaroon c|oices clear and affordaole, |elped oy
t|e Caroon Trust's Caroon Peduction Laoel and also oy t|e infornation t|ey provide
consuners via its weosite and at t|e point of sale. n an attenpt to involve custoners
in its strategy, Britis| Telecon (BT), t|roug| its Net Cood goal, is working to reduce
its custoners' footprint oy t|ree tines t|e endtoend caroon inpact of its own
ousiness.
However, as a general rule, given t|e conplexities and tec|nical nature of t|e suo|ect,
consunerfacing conpanies still struggle to engage and connunicate wit| t|eir
consuners in a neaningful way. Several years ago, one of Pepsico's food orands,
Walkers Crisps, spent consideraole tine and noney conducting a caroon footprint
for a oag of crisps (c|ips) wit| t|e result t|at consuners were largely unclear aoout
w|at t|e caroon laoel neant for t|en.
T|e nonproft Caroon Disclosure Pro|ect's (CDP) report, w|ic| releases an annual
update on CHC data and clinate c|ange strategies of puolically listed conpanies
(CDP, 2013), s|ows t|at corporations fron areas as diverse as fnancial services,
infornation tec|nology, industrials and energy are naking c|anges leading to CHC
reduction. CDP also nakes t|e link oetween corporate engagenent wit| clinate
c|ange, and fnancial perfornance (Sustainaole nsig|t Capital Managenent and
CDP, 2013). For t|e !"#$%"##& tean t|is reflects oot| t|e opportunities offered to
conpanies assessing and dealing wit| t|e issue and t|e growing risk associated
wit| conpanies t|at do not |ave active strategies.
% 4*0)/5 +*01.(0*
Wit|in t|e franework of its Creating S|ared Value strategy, Nestle is developing
a puolic connitnent on clinate c|ange, in w|ic| it. 90&::;<# <& :"*+;+=>.? *+,
accurate env|ronnenta| |ntornat|on ano o|a|oue oaseo on sc|ent|fc ev|oence aoout
&.% $%&,.0<#2 *0<;@;<;"# *+, #"%@;0"# *< 0&%$&%*<"2 :*%A"< *+, $%&,.0< B%*+, ?"@"?CD
21

20. ln individual, organization or country wit|
& 95: green|ouse gas contrioution t|at equals
2.*"
21. For nore infornation. |ttp.//www.nestle.
con/assetliorary/Docunents/Creating S|ared
Value/Environnent/Connitnent on Clinate
C|ange.pdf
2
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6
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T|e conpany |as ac|ieved t|e naxinun score for t|e second year running in t|e
CDP "Clinate Disclosure Leaders|ip ndex" and t|e CDP "Clinate Perfornance
Leaders|ip ndex".
22

% Nesressc +*01.(0* ,) ,( .1*+,)-.(,/ /*7*/
n 2009, after evaluation of its own operations and value c|ain CHC enissions
(scope 1,2 and 3 of t|e CHC Protocol),
23
!"#$%"##& nade a connitnent to reduce
t|e caroon footprint of a cup of coffee oy 20 oy 2013. T|e conpany inplenented
actions t|at enaoled it to reduce oy 20.7 oy t|e end of 2013 conpared to 2009.
Based on t|e assessnent of its caroon footprint along its entire value c|ain,
!"#$%"##& started oy tackling its nain sources of enissions, t|e use of coffee
nac|ines. T|is was done oy developing new nodels t|at include energy saving
features and consune 40 less energy.
!"#$%"##& also worked on its operational enissions. Production and distrioution
centers in Switzerland are now equipped wit| a nunoer of features t|at seek to
reduce t|eir direct or indirect enissions.
100 of green coffee is delivered oy rail rat|er t|an road to t|e factory
ldvanced roasting tec|niques save approxinately 1C20 of t|e energy
$..+.+ '$ !"#$%"##&'s lvenc|es factory
Energy is recovered t|roug| an innovative systen used to provide
|eating in t|e factory
Painwater is collected, recycled and used as utility water in t|e factory
Production sites are certifed wit| t|e international SC standard for
environnental nanagenent, SC14001
ls part of its oo|ective to conoine t|e concept of preniun quality wit| t|e lowest
environnental inpact, !"#$%"##& |as also investigated alternative naterials for
its capsules, taking into consideration t|e need for oot| functionality and oest
environnental perfornance. Pesearc| |as denonstrated t|at aluninun capsules
are, today, t|e oest option to preserve t|e arona and flavors of t|e preniun coffee.
ldditionally, a conparative LCl study done oy Cuantis, a frn in environnental inpact
assessnent, s|owed t|at t|e !"#$%"##& aluninun capsule w|en recycled after its
use is t|e option wit| t|e lowest environnental inpact. T|us !"#$%"##& decided on
aluninun, acconpanied oy a capsule recycling progran to reduce its inpacts. W|ile
t|e progran currently covers 30 countries and |as t|e capacity to collect and recycle
around 80 of all capsules sold, t|e conpany is still working to develop recycling
solutions for all its narkets worldwide. lpproxinately 14,000 dedicated collection
points around t|e world are in place for capsule recycling as well as solutions like
collection of used capsules directly fron Cluo Menoers' |ouse|olds.
!"#$%"##& is convinced oy t|e oenefts of t|ese efforts. T|e conclusions of an
environnental inpact assessnent of t|e capsule systen conducted oy Cuantis
|ig|lig|ted. "tne oeneft ot a ort|on systen |s actua||y tnat |t reouces tne waste ot
oreweo cottee ano reouces tne anount ot reen cottee neeoeo oy ensur|n a oetter
extract|on. Tn|s neans tnat oeeno|n on tne o|tterent scenar|os (tor exan|e, now
nucn reareo cottee |s wasteo |n a trao|t|ona| systen, or |t tne casu|e |s recyc|eo
ano an enery etfc|ent nacn|ne |s useo), a |esresso cottee can nave a |ower |nact
<E*+ * <%*,;<;&+*? &+"C"
!"#$%"##&'s ot|er efforts and prograns are discussed later in t|is docunent and
t|e Backgrounder.
2
J'-.?!# J"?%K#
22. For nore infornation. |ttps.//www.cdp.
net/CDPPesults/CDPClooal500Clinate
C|angePeport2013.pdf
23. For nore infornation please go to |ttp.//
www.epa.gov/greeningepa/g|g/
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
8
!"#$%"##& "#$ %&'(()*+) ,-./
2.3. 00NSUMER AWARENESS 0F ENVR0NMENTAL
SSUES, 0LMATE 0RANCE AND 0ARB0N F00TPRNT
!9"9:9 3.(0;<*+ ,=,+*(*00 .> *(7-+.(<*() ,(? @/-<,)* @A,(B*
t is well known t|at consuners' awareness of clinate c|ange and t|e inpacts t|at
products |ave on t|e environnent |as increased, and t|eir expectation of conpanies
to take responsioility is growing. Clooescan, a glooal researc| conpany focused
on consuner researc|, reports t|at t|e na|ority of consuners worldwide consider
environnental issues, including clinate c|ange, as "very serious" (Clooescan, 2013).

l new survey on t|e "lttitudes of Europeans towards ouilding t|e single narket
for green products," fnds t|at nost Europeans would oe prepared to c|ange t|eir
purc|asing |aoits and ouy nore environnentallyfriendly products. T|e survey
indicates t|at nore t|an t|reequarters of respondents would oe willing to pay
nore for environnentallyfriendly products if t|ey were confdent t|at t|e products
are truly environnentallyfriendly (77). l large na|ority of EU citizens oelieve t|at
ouying suc| products can nake a difference to t|e environnent (89) and t|at t|ey
are |ust as effective as regular products (74) (European Connission, 2013).
However researc| also s|ows t|at consuner attitudes do not always translate into
a c|ange in oe|avior, particularly if it requires a c|ange in t|eir own daily oe|avior.
T|e tec|nical and conplex nature of t|e topic also ensures t|at few consuners truly
understand or acknowledge opportunities to play a role in conoating clinate c|ange.
!9"9!9 Nesressc 3/;C D*<C*+0E 1*+@*1)-.( .> 0;0),-(,C-/-)F ,(? @,+C.( -00;*0
!"#$%"##& is currently present in C0 countries wit| its nain narket oeing Europe. (See
nap of !"#$%"##& narkets in lnnex 7). n 2012 t|e !"#$%"##& narketing departnent
carried out researc| in t|e Ul, France and Switzerland to oetter understand its Cluo
Menoers' perception of, and interest in, environnental issues and caroon footprint.
Most Cluo Menoers in t|e researc| panels |ad |eard of t|e concept of sustainaoility
and |ad a degree of awareness of environnental issues, and clinate c|ange
specifcally. T|e fndings indicated t|at consuners were responsive to !"#$%"##&'s
sustainaole practices. However, t|eir perceptions differed depending on t|e type of
"proenvironnental activity" t|e conpany would carry out. For exanple, t|ey |ave
positive perceptions of a reforestation progran in sourcing countries out seen not to
see t|e relevance of supporting renewaole energy prograns in t|e sane countries.
T|e results also s|owed t|at consuners understood t|e concept of CHC reduction
and caroon neutrality out t|ey did not view it as an issue t|at t|ey associated
naturally wit| coffee, as opposed to ot|er purc|ases suc| as ouying local produce.
Furt|ernore, t|ey could give no indications of w|at a CHC Progran for !"#$%"##&
nig|t look like.
!9"9" 3.(0;<*+ *(B,B*<*() .11.+);(-)-*0 >.+ Nesressc
So far, !"#$%"##&'s connunication wit| its consuners on its inpacts on CHCs |as
oeen linited to encouraging consuners to participate in, and explaining t|e positive
inpact of, t|e capsule recycling progran. Explaining to consuners |ow a conpany
nanages environnental inpacts and clinate c|ange issues is c|allenging oecause
2
J'-.?!# J"?%K#
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
G
!"#$%"##& "#$ %&'(()*+) ,-./
t|e issues t|enselves are conplex. n July 2013, !"#$%"##& fornally announced its
intention to start a pilot on agroforestry in sone of t|e countries of origin (furt|er
details aoout t|is pro|ect in Section 5.3.a). !"#$%"##& oelieves t|at t|is type of pro|ect
could represent a real opportunity to leverage potential custoner connunication
and engagenent, oy connecting t|e pro|ect wit| specifc =%*+, 0%.# coning fron t|e
countries of origins, or linking it wit| ot|er sustainaoility initiatives w|ere t|ey need
consuner contrioution suc| as in recycling, for exanple.

T|e !"#$%"##& tean is also investigating |ow ot|er na|or glooal orands are
connunicating t|eir sustainaoility initiatives, especially on clinate c|ange.
T|ey fnd t|e Nestle orand Vittel an interesting exanple. Toget|er wit| agroforestry
partner Pur Pro|et, t|ey conducted a connunication canpaign aoout t|eir pro|ect
"Vitalizing t|e ecosystens to preserve water source." T|e onpack clain nentioned
"Vittel is planting 1,000 trees per day," and was conplenented wit| infornation
aoout t|e caroon footprint. Pur Pro|et |as also worked wit| t|e |ospitality group
lccor on a consuner and enployees' engagenent initiative t|roug| t|eir Planet
21 Progran w|ic| includes a pro|ect w|ere |otels fnance treeplanting prograns
t|roug| savings nade on laundry w|en custoners reuse t|eir towels. T|e progran
engages enployees and custoners t|roug| site visits, training, teanouilding, a
connunication canpaign, and various tools.
Even wit| t|ese sustainaoility pro|ects in t|e feld, it renains diffcult to engage
consuners.
!9"9# 3A,//*(B*0 >.+ @.<1,(-*0 @.<<;(-@,)-(B *(7-+.(<*(),/ -<1,@)
,(? )A*-+ +*01.(0*0
Fron a conpany perspective, connunication on environnental inpacts |as acquired
growing inportance in recent years, and is denanded oy different stake|olders
(consuners, investors, enployees, governnents, environnental groups, |ournalists,
anong ot|ers) (Capriotti and Moreno, 2007). ls a result, conpanies need to actively
estaolis| and follow strategies t|at are neaningful and consistent across all
c|annels, including fnancial statenents, voluntary perfornance reports, weosites
and press releases (Pavlovsky, 2013).
l clear exanple of |ow conpanies are investing nore in t|eir connunications on
environnental inpact is Procter and Canole. P&C is using nultiple strategies to
connunicate its sustainaoility nessage onpack or integrated into advertising. ts
cold was| canpaign for its was|ing powder orand lriel runs across nultiple touc|
points including print, TV and online. Cn t|is topic, t|ey clain t|at t|eir "Turn to
30" canpaign was ten tines nore powerful oecause it included lriel and involved
c|anging consuner oe|avior. P&C's Director of glooal sustainaoility oelieves t|at
its success cones fron "creating a link oetween w|at consuners ouy and |ow
t|ey oe|ave" (Vizard, 2013). lnot|er exanple is wit| Coca Cola seeking to s|ow
|ow consuners can oe enpowered to cut t|eir personal environnental inpact. T|e
results s|ow t|at t|e context is critical, oe|avioral c|ange is a c|allenge, and sinple
neasures can add up to contrioute to signifcant inpact.
24

Hewlett Packard (HP) acknowledges t|at connunication on environnental inpacts
is a c|allenge. lccording to t|e Social and Environnental Pesponsioility tean at HP,
t|e conpany |ad oeen working on initiatives for sone tine, even oefore it oecane
an issue for t|eir clients. Cnly recently |ave t|ey oegun to understand |ow to
connunicate to custoners in a neaningful way (Lowitt and Crinsley, 2009).
24. For nore infornation. |ttp.//www.
caroontrust.con/resources/reports/
footprinting/personalcaroonallowances
w|itepaper
2
J'-.?!# J"?%K#
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
:H
!"#$%"##& "#$ %&'(()*+) ,-./
Conpanies |ave to nanage t|ese stake|olders' expectations to secure oot| t|eir
operations and t|eir reputation. For t|at t|ey |ave to t|ink strategically in order to
decide |ow to connunicate a crediole nessage wit| nore transparency and wit|out
understating or overclaining, oeing aole to denonstrate w|at t|ey are really doing
in sustainaoility. For exanple, Network for Business Sustainaoility (2013) explains
|ow lpple faced renewed criticisn in 2011 for oot| environnental indiscretions and
a lack of transparency in its supply c|ain following its adnission t|at in 2008 |alf of
its suppliers' factories for key products (including iP|ones and iPads) failed to neet
environnental standards. T|is suosequently affected oot| sales and credioility, even
if t|e effect was tenporary.
Environnental groups are increasingly ranking, and "naning and s|aning"
conpanies oased on t|eir environnental and caroon perfornance. T|is increased
scrutiny nakes even sone leading ousinesses cautious of s|aring too nuc|
infornation, even t|eir successes, due to concerns of inviting criticisn aoout w|at
t|ey are not doing.
!9"9$ 3/-<,)* @A,(B* ,(? @.>>** 1+.?;@)-.(
Coffee's overall contrioution to glooal CHC enissions is snall. However, t|e inpact
of clinate c|ange in t|e coffee sector is already a critical issue, particularly in
lraoicagrowing regions on w|ic| !"#$%"##& is dependent. Coffee grows in clearly
defned clinate zones in suotropical and equatorial regions, w|ere specifc altitude,
tenperature, rainfall, and t|e tining of rainy and dry seasons are critical to its
productivity and quality.
T|e increasingly unpredictaole rainfall, extended droug|t periods and extrene
weat|er events t|at are now connon in nany coffeeproducing areas are |aving
real inpacts on productivity and quality, and s|ifting in t|e incidence of pests and
diseases t|at are detrinental to coffee yields. n Central lnerica, experts confrn
t|at coffee rust
25
was responsiole for a loss of on average, 49 of t|e 2012/2013
|arvest, partly due to c|anging clinate patterns (First nternational Coffee Pust
Sunnit, 2013). Future clinate forecasts do not oode well. lraoica coffee, wit| its
specifc growing requirenents, is very susceptiole to t|e inpact of clinate c|ange
(Haggar and Sc|epp, 2011a). Sone experts oelieve t|at over t|e coning decades,
coffee production nay need to "nove" to |ig|er altitudes and areas wit| nore staole
weat|er patterns (Laderac| et.al, 2010).
25. Devastating disease caused oy t|e fungus
Henileia vastatrix. t produces yellowis|, oily
spots on t|e upper leaf surface t|at expand
into larger round spots causing t|e leaves to
drop, fnally leaving t|e tree denuded.
2
J'-.?!# J"?%K#
n addition to its efforts on nac|ines, capsules and its own operations, !"#$%"##&
|as nade good progress in understanding its footprint at farn and processing level.
T|e total caroon footprint and t|e relative inportance of t|e enissions sources nay
vary depending on t|e value c|ain structure, agricultural practices and processing
tec|niques (for exanple in Brazil, dry nilling net|ods result in lower caroon inpacts,
versus Colonoia, w|ere wet nilling results in greater enissions). n spite of t|ese
differences, t|e nain sources of enissions can oe considered relatively constant in
eac| coffeeproducing country.
n a caroon footprint study conducted oy CMS for !"#$%"##& in 2012 in one of its
key sourcing narkets, Costa Pica (fron farn to port, excluding transportation in end
consuner narket) t|e caroon footprint associated wit| producing 1 kilogran of lll
green coffee was found to oe 1.CC kg CC2eq. T|is calculation included coffee growing
and nilling (wet net|od, see lnnex 5) and also took into consideration t|e dilution
rate for t|e calculations t|at is, t|e anount of total green coffee required to ootain
1 kg of lll coffee (due to quality standards and, oy association, re|ection rates).
3
!'()*'((+ J?)+*%
0**!()-%! *% 0?).
*(#)?!-*%& ?%/ ()*J#&&
-% &*,)J-%K J*,%!)-#&
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
::
!"#$%"##& "#$ %&'(()*+) ,-./
Fgure 3. Carbon footprnt at coffee producng stage n one vaIue chan (Costa Rca)
Source. CMS, 2012
3.1. DEF0RESTAT0N
Deforestation oy itself is not a regular elenent of t|e coffee production equation
oecause nost of t|e lraoica coffee plantations are long estaolis|ed. n nany
regions farns are nore t|an 100 years old. However, if deforestation occurs in order
to estaolis| a new coffee plantation, approxinately 250 tons of CC2eq is released into
t|e environnent for eac| |ectare converted.
3.2. FERTLZERS
Fertilizers account for 4555 of t|e caroon footprint of coffee production (coffee
production includes farn level enissions plus coffee nilling enissions). Looking
specifcally at onfarn enissions, fertilizers are responsiole for 0.9C kg CC2eq/ kg
lll coffee, w|ic| in relative terns, neans t|at fertilization accounts for 95 of t|e
farn level caroon footprint. (CMS, 2012, lttarzade| and Noponen, 2010).
T|is cones fron oot| t|e production of c|enical fertilizers (t|e nain input in
coffee farning) and Nitrogen fertilization (direct enissions and N2C enissions fron
leac|ing and volatilization). Nitrogen, w|et|er fron organic or inorganic sources, is
suo|ect to natural nicrooial conversion in t|e soil. During t|is process N2C can oe
lost to t|e air (volatilization). Leac|ing is affected oy t|e soil pH and structure, and
t|e intensity and tining of rains.
3.3. 00FFEE MLLNC (WET MLLNC)
Coffee nilling represents oetween 3035 of t|e caroon footprint of coffee
production. lt t|e nilling stage, t|e deconposition of organic natter in wastewater
was identifed as t|e nost signifcant source of caroon enissions, at 0.514 kg
CC2eq, w|ic| in relative terns represents 80 of t|e enissions at t|is stage. Milling
coffee is a nec|anical and oioc|enical process w|ere coffee c|erries are pulped
and denucilaginated in order to get t|e coffee oean (green coffee). Coffee pulp
and nucilage CHCs (nainly net|ane) t|at account for nost of t|e caroon footprint
occurring at t|is stage.
3
!'()*'((+ J?)+*%
0**!()-%! *% 0?).
*(#)?!-*%& ?%/ ()*J#&&
-% &*,)J-%K J*,%!)-#&
!"#$ &'(')
*+, -.*/0
1'23#") 45))
6+.7 -89/0
!" $%& '()!" *** "+'', -.//''
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
:!
!"#$%"##& "#$ %&'(()*+) ,-./
n Brazil, producers and suppliers use t|e "dry net|od" of nilling w|ic| does not
require pulping and denuciliginating c|erries (lnnex 5). T|is process reduces
processing enissions oy nore t|an 75. However due to clinatic conditions and
coffee quality concerns, experts assert t|at t|is tec|nique cannot oe used in nost
ot|er coffee regions.
Cverall, t|e caroon footprint of oot| fertilization and deconposition of organic natter
in wastewater represents approxinately 89 of t|e total caroon footprint of onfarn
operations and coffee processing (Figure 4).

012345 LI M5E 5F1<<1=9 <=3485< >4=F 8=>>55 B4=@38:1=9 19 J=<:; )18;
Source. CMS, 2012
4.1. REDU0T0N 0F FERTLZER EMSS0NS 0N TRE FARM
lnong t|e various fertilizers applied to coffee, t|e nain input is nitrogen (CMS,
2012). Coffee ous| size and productivity rely |eavily on t|e use of nitrogen fertilizers.
Studies carried out oy CMS (2010, 2011) |ave s|own t|at nitrogen fertilization is
directly and signifcantly correlated wit| coffee yields (see Taole 1). However, nitrogen
fertilization is also t|e nain elenent contrioutor to caroon footprint at t|e farn level.
W|en nitrogen is applied to coffee ous|es, part of it is taken up and used oy t|e plant
and t|e rest is lost to t|e environnent in t|e forn of nitrous oxides. Peducing t|is
loss is key to decreasing t|e caroon footprint fron nitrogen fertilization. Nitrogen
uptake is prinarily influenced oy a) t|e |ealt| of t|e plant (speed of p|otosynt|esis),
o) |ow precisely t|e nitrogen is applied and c) frequency and severity of leac|ing and
volatilization. (Nielsen 200C, Purdue University)
,9 I*?;@* (-)+.B*( -(1;)
T|e reduction of t|e anount of nitrogen applied to coffee plantations will |ave a direct
consequence on t|e reduction of enissions. However, it will also |ave a negative
effect on productivity, creating a scenario t|at requires deeper tradeoff analysis
to deternine its viaoility. T|e following taole sunnarizes sone of t|e inplications
involved in t|e dynanics oetween caroon footprint, costs, nitrogen and yields.
!""#
$"#
%"#
&"#
'"#
("#
)"#
*"#
+"#
!"#
"#
!"#$%& (%%)*#+&) ,-. !%/ 012-. """ .#33& !%((334
56789 -./01 2341502
672.087.01 9053:;32<.<3=
>01.<?<@012
56:7;
56<9
N*:C54 <=3485< 198O3@5 :4;9<B=4:P
eIectrcty and pestcdes. (Note~focus
s onIy on farm and processng IeveI,
not to end market.)
3
!'()*'((+ J?)+*%
0**!()-%! *% 0?).
*(#)?!-*%& ?%/ ()*J#&&
-% &*,)J-%K J*,%!)-#&
:
*(!-*%& 0*) )#/,J-%K
*%A0?).P J?)+*%
#.-&&-*%&
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
:"
!"#$%"##& "#$ %&'(()*+) ,-./
!;DO5 GI (=<<1DO5 <859;41=< 8=9<1@54192 45@38:1=9 => 91:4=259 19B3:< ;< ; >398:1=9
of coffee yeIds per quntaI ("qq" or 46kg bag of green coffee)
Sources. CMS estinations (2013) oased on data fron ClFE, PCC, USDl.
Benehts of mpIementng the strategy: Can oe inplenented in t|e very s|ort tern.
No specifc training or infrastructure is required in order to develop t|e strategy.
J=<:< => 1FBO5F59:192 :C5 <:4;:52E7 Peduction in coffee yields can signifcantly
affect farners incone. Monitoring t|e actual inplenentation on eac| farn is a
conplex task and neasurenent can oe diffcult.

C9 D.+* 1+*@-0* ;0* .> >*+)-/-J*+0
T|is alternative is oased on t|e use of "precision agriculture." T|e frst step is to
neasure w|at t|e actual requirenents of t|e coffee ous|es are, and t|en to provide
t|e plantation wit| t|e anount and type of fertilizers t|at ft t|ose requirenents. T|e
nitrogen needs on one site of t|e farn could oe very different fron anot|er, neaning
t|at eit|er less fertilizer could oe used, or t|e sane anount of fertilizer could lead to
oetter yields. T|is practice ains to tackle t|e loss of fertilizer (nitrogen) due to t|e
runoff in volatilization of particles not aosoroed oy t|e plant.
Benehts of mpIementng the strategy: t s|ould oe possiole to ac|ieve sinilar levels
of productivity wit| nore effcient fertilizer use, and reduce as nuc| as 8 of CC2.?
fron farners nitrogen consunption.
J=<:< => 1FBO5F59:192 :C5 <:4;:52E7 Sanpling and analysis of soil and leaves
represent nost of t|e cost involved in t|is strategy. n addition, farners will require
agrononists' |elp to calculate optinun fertilization.

TabIe 3. Costs nvoIved n optmzng the use of fertIzers
Source. CMS (2013) estination using data fron private agrononical analysis laooratories.
@9 4*= >*+)-/-J,)-.( )*@A(./.B-*0
lnong t|e new tec|nologies and approac|es t|at can oe applied at farn level,
slowrelease fertilizers offer nany potential oenefts in coffee production, particularly
nitrogenrelated fertilizers. T|eir use nay lessen nitrogen (N) leac|ing, given t|e fact
t|at t|e releasing period and rate can oe tailored to natc| t|e coffee plant's needs.
"#$%&'()$* +$(,- . #/0&)#/% 12)33)$*3 455#$6)2,(/ 455#$6)2,(/
700 8#//* '$99//:;,< 7=8:;,:>/,#< 9#$2 . . '$3( ?8 @AB/0:00
7=8 @AB /0:;,:>/,#< 7CDE:;,:>/,#< 8#//* '$99//
BF GHI GJKK BBH LH
HF BFI BMNF MGM NI
JF MFB MHFF HNM NK
:
*(!-*%& 0*) )#/,J-%K
*%A0?). J?)+*%
#.-&&-*%&
"#$% &'(%)*$* +%(',* -$**./ &00$,$#'(% 1(2#3 4#*, &53#'#6$7 &'(%)*$*
89":;<(;)/(3= 89":;<(;)/(3= 89":;<(;)/(3= 89":;<(;)/(3=
>? @A BA CA
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
:#
!"#$%"##& "#$ %&'(()*+) ,-./
2C. For nore details. |ttp.//t|efrogolog.
org.uk/2012/08/15/oigexanplesfron
guatenalassnallcoffeefarns/
27. ln anaerooic reactor is a closed systen
w|ere deconposition processes occur in
aosence of oxygen for purposes of net|ane
generation.
28. Volcafe, one of t|e largest !"#$%"##&
coffee suppliers inplenented a wastewater
treatnent systen in one of its central nills in
Costa Pica. ln anaerooic reactor reprocesses
t|e wastewater, t|e anaerooic environnent
flora oreaks down t|e organic natter into
oiogas (net|ane CH4) and t|e oiogas is
ourned in t|e coffee dryers. T|is nitigation
effort |as oeen aole to reduce 72 of t|e
enissions coning fron wet nilling in t|is
particular supply c|ain) and reduced energy
costs for t|e coffee dryers.
29. See also Utz certifed pro|ect in Nicaragua
on Energy fron Coffee Waste. |ttps.//www.
utzcertifed.org/aooututzcertifed/feld
developnent/2373?langen
n nost studies of different crops, use of slowrelease N fertilizers as a preplant
treatnent did not decrease crop yield, out yield was rarely increased w|en conpared
wit| standard applications of nitrogen (Cuertal, 2009). Scientists and researc|ers'
conclusions are consistent in t|e fact t|at t|e oenefts of using slowrelease N
fertilizers in coffee production will cone fron reduced environnental risk and savings
in production costs. However, nost snall coffee producers are still unaware of t|is
tec|nology and its diffusion in t|e sector will oe slow wit| coffee farners, w|o tend
to oe very conservative wit| tec|nology c|ange.
Benehts from mpIementng the strategy: Estinated 810 reduction in CC2eq/qq
green coffee and reduced water pollution fron nitrogen runoff.
J=<:< => 1FBO5F59:192 :C5 <:4;:52E7 Slow release fertilizers cost 0.C to 1.4 tines
nore per kg t|an oags of standard fertilizer. lgrononists oelieve t|at t|e slow
release fertilizer s|ould oe oetween 15 and 20 percent nore effcient t|an standard
fertilizer (a farner w|o usually uses 200kg/|a/year of standard nitrogen fertilizer
could ac|ieve t|e sane yield wit| only 1C0170 |a/year of slow release).
Certain aspects of t|e lll Progran focus on inproving farn practices suc| as
fertilizer nanagenent and proper soil analysis to allow a nore targeted application
and oalanced nutrition. T|e progran also considers naintaining good soil structure
(draining, organic natter) and selecting t|e appropriate fertilizers or soil anendnents
depending on t|e conditions of t|e farn. ldditionally !"#$%"##&'s lll Progran
partner, Painforest llliance, |as recently developed guidelines for its "clinate
friendly farning" training nodule, designed to |elp farners reduce t|eir own CHC
enissions and oetter prepare for t|e new c|allenges t|at clinate c|ange is already
oringing to coffee growing regions. !"#$%"##& is supporting its inplenentation in
Cuatenala, w|ere t|e farner's group lDESC (Los C|u|es Sustainaole, Social and
Econonic Developnent lssociation), w|ic| sells all its coffee to !"#$%"##&/ '( %3.
frst organization to oe verifed for conpliance wit| t|is nodule.
2C

4.2. REDU0T0N 0F EMSS0NS DURNC WET MLLNC
PR00ESS
T|e optinal approac| to reducing t|e CHC enissions (principally net|ane) in t|e
wet nilling process requires consolidating t|e resulting waste water and organic
natter fron t|e nilling process, taking it into an anaerooic reactor
27
(to pronote t|e
oreakdown of organic natter into net|ane) and ootaining oiogas (net|ane), w|ic|
can t|en oe ourned in t|e coffee dryers.
28,29
f water is not treated and t|e net|ane
not ourned, CHC enissions will oe 21 tines |ig|er, as net|ane enissions |ave 21
tines greater clinate c|ange inpact t|an C02.

However, in nost coffee producing countries, coffee farners carry out t|e wet nilling
process on t|eir own farns. ls a result, nost of t|e coffee farners |ave little or no
control of t|e enissions given t|at t|e wastewater is released to t|e environnent
wit| no previous treatnent.
Wastewater treatnent resulting fron t|e nilling process is essential for a caroon
reduction plan in a coffee supply c|ain. T|ere are at least two strategies t|at s|ould
oe considered in order to reduce enissions in t|e wet nilling process.
:
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:$
!"#$%"##& "#$ %&'(()*+) ,-./
30. Tec|noserve, Farner survey and focus
groups (N25)
,9 '<1+.7*? =,0)*=,)*+ )+*,)<*() CF 0<,// A./?*+ >,+<*+0
T|e need for inproved wastewater treatnent in coffee farning is an estaolis|ed
priority in nearly every coffeeproducing country. Since it |as oeen identifed as a
critical environnental proolen, several international cooperation pro|ects |ave
focused on t|e developnent of snall systens for wastewater treatnent (p|ysical
and oioc|enical) on coffee farns. Close to 8,000 water nanagenent solutions
|ave oeen initiated for coffee processing and 29,000 wet nilling nodular anaerooic
treatnent systens (SMTl oy its Spanis| acronyn), as well as t|e introduction of
solar drying systens. T|e cost of a systen aole to treat effluents fron a 2 |a coffee
farn ranges fron USSC00 to USS1,000. Even t|oug| t|e systen signifcantly reduces
t|e environnental inpact in terns of organic contanination, it does not reduce CHC
enissions unless t|e resulting net|ane is captured and ourned.
T|e net|ane fron t|is systen can oe captured and ourned for as little as USS100
t|roug| t|e use of a plastic nenorane t|at traps t|e net|ane gas and a pipe t|at
conveys it. Cnce t|e net|ane is captured it can oe ourned directly, or used for coffee
drying or |ouse|old use.
Benehts from mpIementng the strategy: t s|ould oe possiole to reduce as
nuc| as 15 of t|e CC2eq/qq green coffee enissions providing at t|e sane tine
electricity/fuel savings on t|e farn. ldditionally, a signifcant reduction of organic
contanination on water sources is ac|ieved.
J=<:< => 1FBO5F59:192 :C5 <:4;:52E7 Cne single investnent of oetween USS350
and USS550 per |ectare can oe considered enoug| to fulfll oasic infrastructure
requirenents. T|e investnent, diluted over a 10 year period can oe translated into
additional costs ranging oetween 1.1C to 1.83 USS/qq of green coffee.
C9 3*()+,/ <-// =,0)*=,)*+ )+*,)<*()
l connunity coffeeprocessing center |as oecone a typical success story in nany
coffee producing countries. t enaoles greater effciencies, econonies of scale,
inproved quality, and a nunoer of ot|er social, and environnental oenefts, not least
t|e reduction in water use and can allow for nore effcient elinination of wastewater
contanination.
30
Central nilling facilities offer great potential for reducing caroon enissions during
t|e nilling process if t|e nill treats its wastewater anaerooically and captures and
ourns t|e resulting net|ane (transforning it into C02). Taole 4 presents estinates of
t|e energy and CHC factors and values associated wit| a recent investnent of t|is
type.
:
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:2
!"#$%"##& "#$ %&'(()*+) ,-./
TabIe 4. Dutputs derved from 1 qq of green coffee produced n a centraI wet-
F1OO192 >;81O1:E
lssunptions.
T|e central nill is aole to process in one year t|e |arvest of 100 farns, wit| an average size of 2 |a and average yield of
30 qq/|a. f net|ane is conpletely ourned, t|e caroon footprint of 1 qq is reduced to 7.09 lg CC2.?
Sources. Estination oased on data fron CMS, 2012 and NClE (Coopedota CSP 2009, Case Study)
n Colonoia, w|ere !"#$%"##& sources 30 of its lll coffee, coffee is traditionally
processed on individual farns. n order to pronote t|e advantages of collective
(central nill) processing !"#$%"##&, in partners|ip wit| Federacion Nacional de
Cafeteros (FNC), Expocafe, Los lndes Cooperative, USlD and t|e developnent
agency lCD/VCCl ouilt a connunity coffeeprocessing center in t|e region
of Jardin in 2010. T|e central nill |as oeen a successful pro|ect and led to a C3
reduction in water use. However, t|e pro|ect required signifcant capital investnent
t|at |as taken several years to cone to fruition. C|anging farners' traditional and
wellentrenc|ed conservative practices |as proven c|allenging as well.
Benehts from mpIementng the strategy: T|e caroon footprint (kg of CC2eq/kg green
coffee) can oe reduced oy 20 to 25. Energy produced fron net|ane can save as
nuc| as USS 0.25/qq. T|e quality of coffee processed is inproved, dininis|ing t|e
dilution rate to |alf or less of its typical value.
J=<:< => 1FBO5F59:192 :C5 <:4;:52E7 T|e investnent required for an entire new central
nill wit| t|e conditions s|own in t|e taole aoove can range oetween USS180,000
and USS250,000 and |ave a useful life of 30 to 50 years. For t|e existing central nill,
t|e wastewater and net|ane systen can oe added on for USS10,000 to USS15,000
wit| a useful life of at least 15 years.
4.3. 0FFSETTNC
W|en a caroon reduction strategy reac|es its tec|nical or fnancial linitations, t|en
"offsetting" oecones t|e next logical step in order to conpensate enissions toward
t|e caroon footprint goal.
,9 K(L>,+< C-.<,00
Cnfarn oionass is usually seen in nany coffee producing countries in lfrica,
Central and Sout| lnerica w|ere coffee is s|ade grown. S|ade trees usually |ave a
nultipurpose function. Leguninous trees |ave oeen a traditional s|ade tree option
oecause t|e roots of t|ose trees are well known nitrogen fxers, w|ic| represents an
additional advantage for t|e coffee plantation. llso, it is very connon to fnd s|ade
trees t|at provide different fruits (particularly plantains and citrus) or raw naterials
"#$%&'# ())$*+,'$ -'#+./ 0&*&1,$/ -'#+./ 2+,1# 3'4#5$6#'$ 7#89,+#6#'$5
:;. 0<=#8> :?@A%> )B 6#$%&'# :CDEA?@%> :CDEA88A/#&+F G,H9$#G
.#'#+&$#G )4#+ IJ /#&+5>
=KLMN IL=O JLIJPJL=J K
:
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:6
!"#$%"##& "#$ %&'(()*+) ,-./
31. Caroon sequestration involves t|e renoval
or storage of caroon dioxide so t|at it cannot
oe released into t|e atnosp|ere
32. Caroon sequestration in tropical
agroforestry systens llain llorec|t, Serigne
T. land|i nstitut de Pec|erc|e pour le
Developpenent (PD), ' nternational Centre
for Pesearc| in lgroforestry (CPlF), 2003.
lvailaole in |ttp.//startinternational.org/
liorary/arc|ive/fles/cseqagroforestry
reviewceaf18cc0d.pdf
suc| as tinoer. T|e use of eit|er leguninous or fruit trees as s|ade is not nutually
exclusive. T|ere are also additional trees on and around t|e farn t|at |ave no
direct interaction wit| t|e coffee plantation. Toget|er wit| Pur Pro|et, !"#$%"##& '(
investigating t|e possioility of developing agroforestry systens in sourcing countries.
Pur Pro|ect |as estinated t|at 1 tree is aole to capture/sequester at least 0.3 tons
CC2eq during its life. Cne |ectare of coffee plantation producing 30 qq of green coffee
typically releases nore t|an 2.3 tons CC2eq/year. !"#$%"##& and Pur Pro|et, wit|
support fron Painforest llliance, plan to pilot a progran ained at reintroducing or
naintaining trees inside and around coffee farns. T|e reasons for !"#$%"##& %"
start t|is initiative are t|e following.
nprove t|e longtern viaoility of t|e farn in t|e face of c|ange of t|e
clinate, soil erosion, dependency on c|enical fertilizers, low productivity.
Farners are alnost 100 dependent on coffee for t|eir incone, very
vulneraole to price volatility, plant disease.
@ !"#$%"##& is looking for opportunities to furt|er reduce or even neutralize
its caroon footprint as an exercise of responsioility wit| t|e environnent
!..%'$, !"#$%"##& custoners' expectations.
n t|eory, a good agroforestry systen can generate new incone streans fron t|e
sale of tinoer or fruit, assuning narket access is secured. Trading of t|e sequestered
caroon and incentives for caroon storage
31
represent ot|er possiole revenue streans
(see later section for nore details). However, t|ere are nany c|allenges along t|e
way. suitaole tree species nust oe c|osen, and issues suc| as density, spacing and
s|ade are essential factors in t|e naintenance of |ealt|y conpetition oetween trees
and coffee plants over natural resources (lig|t, water and nutrients). ldditionally,
ongoing tree nanagenent and training needs nust oe considered, as well as
optinizing t|e allocation of nonetary oenefts (owners|ip or conpensation) t|at t|e
caroon pro|ects create in order to generate t|e rig|t incentives for farners.
Benehts from mpIementng the strategy: ldditional sources of incone and/or
food, no need to ouild specifc infrastructure. Managed well, t|ese aspects |ave t|e
potential to inprove coffee quality.
J=<:< => 1FBO5F59:192 :C5 <:4;:52E7 lreas planted wit| trees will likely displace
coffee ous|es or fanily food crops. t|ere is an opportunity cost t|at nig|t
conpronise fanilies incone or food. Managed oadly, decreased coffee yields,
pests or disease can result. Tree nanagenent is an intensive and longtern |oo
t|at farners, t|eir connunity and coinvestors/partners nust oe aware of and
connitted to. lnowledge requirenents are |ig|.
C9 K>>L>,+< C-.<,00
Cfffarn oionass refers to reforestation of previously deforested areas, and t|at are
not on t|e actual farn or innediately ad|acent. lccording to llorec|t and land|i
(2003)
32
t|e average tropical tree will sequester an average of 23 kg of caroon/year
(11.513 tons of Caroon/|a/year) until it reac|es its naturity (see Figure 5), at w|ic|
tine t|e caroon sequestration (aosorption) rate practically approac|es zero wit| one
|ectare of forest |olding approxinately 250 tons of CC2eq for t|e long tern. Based
on t|is caroon sequestration data and coffee caroon enissions data (CMS, 2012)
it can oe estinated t|at 1 |a of reforestation in tropical forest is aole to offset t|e
enissions of 4.9 |a of coffee in a 10year period.
33
:
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!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
:8
!"#$%"##& "#$ %&'(()*+) ,-./
33. lssuning a tree density of 500 trees/|a
and a coffee production of 30 qq/|a.
34. For nore infornation visit |ttp.//unfccc.
int/kyotoprotocol/itens/2830.p|p

35. For nore infornation go to |ttp.//
en.wikipedia.org/wiki/CleanDevelopnent
Mec|anisn
Benehts from mpIementng the strategy: Cffsetting wit| reforestation can oe
c|eaper t|an nany onfarn options, oy allowing for t|e use of lower value, degraded
lands, rat|er t|an |ig| value land.
J=<:< => 1FBO5F59:192 :C5 <:4;:52E7 Costs of reforestation not including land
acquisition, are estinated at USS1,000/|a in t|e frst year, w|ile in t|e following
years it ranges fron USS100USS200 due to naintenance and fre and disease
nanagenent laoor. luditing and docunentation costs s|ould also oe considered.
Fgure 5. EvoIuton of carbon emssons from a coffee pIantaton and carbon
<5Q35<:4;:1=9 >4=F ; 45>=45<:5@ ;45; 19 ; GH E5;4 B541=@
lssunptions.
a) Coffee farn yield. 30 qq/|a/year.
o) Tree density in t|e reforested area. 500 trees/|a
Source. CMS (2014) wit| data fron CMS (2012) and llorec|t and land|i (2003)
@9 M;+@A,0* .>>0*)0
!"#$%"##& can also purc|ase offsets. l caroon offset is a reduction in enissions of
caroon dioxide or green|ouse gases nade in order to conpensate for, or to "offset,"
an enission nade elsew|ere.
T|e lyoto Protocol
34
estaolis|ed t|e oasis for international trading of Certifed
Enissions Peductions (CEPs) t|roug| t|e Clean Developnent Mec|anisn (CDM).
35
For several years t|is narket was driven oy regulatory requirenents, principally in
Europe, w|ic| required certain conpanies wit| |ig| levels of CHC enissions to neet
specifc enissions reduction targets t|roug| eit|er a) reduction of t|eir enissions,
or o) purc|asing of conpensatory enissions reductions principally t|roug| CEPs.
T|ere is no agreenent to continue or replace t|e CDM, and t|ere is a lack of clarity
regarding future international regulatorydriven narkets. llt|oug| t|e nec|anisn
itself is winding down, it proved t|at trading of CHC enissions was a viaole strategy,
and estaolis|ed very clear rules and protocols for pro|ects qualifed to "produce"
caroon enissions reductions.
Cver t|e past few years, t|ere |as oeen increasing interest in, and denand for,
Voluntary or Verifed Enissions Peductions (VEPs). (See lnnex 8). ls t|e nane
suggests, VEPs are voluntary transactions, and are usually private transactions
!"#"$%&'() +),")+&-%&'./
0-.# % -)0.-)+&)1 %-)%23%
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5 6 75 76 85
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oetween two parties oased on t|e specifc c|aracteristics of t|e pro|ect's trading
"credits" (usually 1 credit 1 ton of caroon dioxide equivalent of enissions avoided
or fxed) at an agreedupon price. Conpanies purc|ase VEPs for a variety of reasons,
including. t|e sale of caroonneutral products and services, neeting corporate social
responsioility connitnents, to en|ance puolic relations, fulfll corporate et|ical
connitnents, nitigate fnancial risk of CHC exposure, or to anticipate possiole
future regulations or requirenents (lilian et al 2012).
Based on a review of t|e current VEP narket, prices would oe no nore t|an USS1.50
to USS4 per ton for caroon credits neeting VCS or Cold Standard, respectively.
Civen t|at it is currently a "ouyers narket," if credits could oe sourced in very large
quantities, t|e pro|ects' c|aracteristics could oe suostantially influenced, including
pro|ects fron different types of CHC reduction (reforestation, renewaole energy, etc)
and fron different countries around t|e world including several of t|eir coffee
growing origins. n addition to t|e caroon price, t|ere are also ot|er running costs to
oe considered, suc| as verifcation and docunentation.
!C5 !"#$%"##& :5;F 955@< := :;R5 ; <:4;:52E >=4S;4@I
To oe successful, t|e strategy will need to oe integrated into !"#$%"##&'s existing
ousiness nodel and ouilt around current prograns it nust nake sense for farners
&$+ !"#$%"##&. t s|ould also send a clear signal to Cluo Menoers t|at !"#$%"##&'s
approac| to |ig|est quality coffee includes sustainaoility as defned not only in t|e
lll Progran, out also wit| a sound approac| to clinate c|ange inpact.
T|e tean |as napped out several different dinensions to consider in defning t|e
strategy w|ile recognizing t|at t|ere nay oe ot|ers t|at are also inportant.
/5B:C => :C5 1FB;8:I How far could, or s|ould, !"#$%"##& go in reducing its caroon
footprint? ln increasing nunoer of consuner products conpanies nostly nic|e
oriented ones out also nany na|or airlines and sone nainstrean conpanies are
seeking "caroonneutrality." Most large consuner goods conpanies' connitnents
are for "reduced caroon," usually tied to percentage reductions fron a oaseline.
&8=B5 => :C5 1FB;8:I S|ould !"#$%"##& focus on reductions "onfarn" only, "farn
to sales point" or t|e entire c|ain "fron farn to cup"? lnd |ow s|ould t|is scope
relate to t|e dept| of t|e inpact?
&:;R5C=O@54 8=9<1@54;:1=9<I W|ose expectations and opinions s|ould oe considered
in defning t|e strategy and related prograns? Clearly Nestle's corporate perspective
is critical. !"#$%"##& Cluo Menoers nay likely oe t|e ultinate voice. T|e tean
knows t|at Cluo Menoers involvenent is inportant, out t|e issues are conplex to
connunicate, and nost consuners, w|ile aware of caroon and clinate c|ange,
still struggle to understand w|at t|eir role s|ould oe. However, ot|er stake|olders
nay also oe critical including farners, suppliers, and strategic partners suc|
as t|e Painforest llliance and t|e Colonoian National Coffee Federation. S|ould
sone views carry nore weig|t t|an ot|ers? lnd |ow s|ould t|e inevitaoly differing
perspectives and viewpoints along t|e value c|ain oe reconciled?
(4=24;F F;9;25F59:I !"#$%"##&'s sourcing network includes t|ousands of
frequently widely dispersed snall|olders in several countries wit| diverse farning
practices. !"#$%"##& |as only an indirect influence on its farner suppliers. Coffee
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is purc|ased oy t|eir suppliers, and all farners (and suppliers) are free to sell
t|eir coffee to w|oever t|ey wis|. !"#$%"##& pronotes and naintains longtern
relations|ips wit| t|e farners t|roug| its lll Progran, ouyer tec|nical assistance
and ongoing support pro|ects. How could a crediole progran of t|is scale oe rolled
out and nanaged in a neaningful and costeffective way? f t|e strategy is too
ourdensone on farners, nig|t farners elect to sell t|eir coffee elsew|ere? Could,
or s|ould, different stake|olders and partners oe involved in t|e process? But would
t|eir involvenent nake nanagenent of caroon footprint nore conplex?
019;981;O <3<:;19;D1O1:EI !"#$%"##& knows t|at ultinately a sustainaole long
tern approac| is one t|at creates t|e rig|t kind of incentives for farners and t|eir
connunities to get involved, and w|ose inplenentation costs are affordaole enoug|
to allow it to oecone selfsustaining. W|at would t|e fnancial dynanics of t|e plan
look like? How s|ould t|e progran oe paid for? By w|on? Cver w|at tine period?
f !"#$%"##& provided up front costs, would t|ese oe sunk costs, or could t|ey oe
recovered in sone way over tine and deliver a return on investnent?
T|e !"#$%"##& Sustainaoility ldvisory Board |opes to |ave answers to all t|ese
questions and a plan oy June 2014 for its oiannual neeting. To t|is end, !"#$%"##&
|as decided to turn to t|e next generation of sustainaole ousiness t|inkers, MBl
students, to give a fres| and innovative contrioution to t|e conpany's strategy
t|roug| a worldwide C|allenge.
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Volunteers in Cverseas Cooperative lssistance
Caroon Disclosure Pro|ect
Sustainaole Markets ntelligence Center
(Centro de nteligencia soore Mercados Sostenioles)
Clean Developnent Mec|anisn
Center for Pegional, Coffee, and Business Studies
(Centro de Estudios Pegionales Cafeteros y Enpresariales)
Colonoian Coffee Crowers Federation
(Federacion Nacional de Cafeteros)
7*..$3"#(. 7&( .!'(('"$(
nternational Finance Corporation
Central lnerican nstitute of Business ldninistration
(nstituto Centroanericano de ldninistracion de Enpresas)
ntergovernnental Panel on Clinate C|ange
nternational Union for Conservation of Nature
Life Cycle lssessnent
=&(%.* '$ A#('$.(( ;+!'$'(%*&%'"$
Non Covernnental Crganization
Painforest llliance
Peal Farner ncone'
Sustainaole lgricultural Network
Surface Mountain Tec|nology lssistance
Tool for t|e lssessnent of Sustainaole Cuality
United Nations Franework Convention on Clinate C|ange
United States lgency for nternational Developnent
,
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!!
!"#$%"##& "#$ %&'(()*+) ,-./
ANNEX 1. NESPRESS0 LFE 0Y0LE ASSESSMENT
35

n 2005, !"#$%"##& started working wit| an expert environnental assessnent frn
Cuantis. T|ey decided to use an integrated and longtern approac| for neasuring
and reporting t|eir environnental perfornance inpact across t|e entire ousiness in
a scientifc nanner t|roug| Life Cycle lssessnent (LCl). T|e study assesses key
indicators across four dinensions.
3C

@ &8=B192, w|ic| defnes different activities t|at contrioute to environnental
perfornance. coffee growing, transportation, capsule production and ot|er
packaging, roasting, nac|ine conponents and assenoly, coffee orewing
and disposal and t|e recycling of capsules, etc.
@ Lfe cycIe nventory, w|ic| neasures t|e energy and raw naterial inputs
as well as t|e environnental enissions associated wit| eac| stage of t|e
life cycle, fron t|e coffee c|erry to t|e cup.
@ -FB;8: ;9;OE<1<, w|ic| takes into account fve key indicators of
environnental perfornance.
A JO1F;:5 8C;9257 inpacts of CC2 .!'(('"$( &$+ "%3.* 787
A W;:54 >==:B419:7 quantity of water used
- Bodversty: inpacts on quality of ecosystens, and ric|ness of species
A "3F;9 C5;O:C7 effects on |unan |ealt| and welloeing
A #9542E7 quantity of energy used as well as ot|er natural resource inputs
@ Improvement anaIyss. t|is fnal stage identifed and evaluated opportunities
to reduce energy, naterial inputs or environnental inpacts at eac| stage
of t|e lifecycle, wit| a focus on sustainaole agriculture, developing energy
effcient nac|ines and collecting used capsules for recycling.
T|e results of t|e LCl in 2005 found t|at t|e caroon "|otspots" were at t|e two
extrenes of t|e value c|ain. t|e coffee growing stage and t|e use of t|e !"#$%"##&
nac|ine. ls a result of t|ese fndings !"#$%"##& worked frst at t|e nac|ine
use. T|e PXE and U nodels were t|e result of suosequent nac|ine innovations,
autonatically switc|ing off after nine ninutes of inactivity, t|ereoy consuning 40
less energy.
!"#$%"##& also looked at ot|er aspects. n 2011, t|e conpany conducted an LCl
to conpare t|e environnental inpacts of using different kinds of capsules to
nake an espresso coffee. T|e study s|owed a signifcant difference oetween t|e
alternatives in terns of CHC enissions, resource consunption and t|e necessary
|ealt|/|ygiene considerations, and concluded t|at t|e alternative wit| t|e lowest
overall environnental inpact, taking all t|ese factors into account, is a recycled
aluninun capsule.
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35. For a nore detailed conpre|ension please
go to. |ttp.//www.nestle+"#$%"##&.con/
assetlioraries/Docunents/Cuantis2020
Conparative20LCl20on20Four20
Capsules20Systens202011.pdf
3C. Life cycle assessnent (LCl) net|odology
is in confornity wit| t|e requirenents of t|e
international standards SC 14040 and 14044.
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
!"
!"#$%"##& "#$ %&'(()*+) ,-./
ANNEX 2. NESPRESS0'S BUSNESS CR0WTR ('000 0RF)
Sources. Nestle Nespresso lll Progran. 2005, T|e Nestle !"#$%"##& lll Sustainaole Cuality Forun, !"#$%"##&/
MD, |ttp.//www.nestle+"#$%"##&.con/aooutus/keydates, |ttp.//www.nestle+"#$%"##&.con/newsandfeatures/
consunersseekingdailyindulgencekeep+"#$%"##&a|ead
ANNEX 3. ESTMATED NUMBER 0F BACS (1 BAC = 46 KC)
PUR0RASED BY !"#$%"##&
Source. CMS estinations, 2014
!"##
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!"#"
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))) *+* )))
&"" """
,&" """
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!#
!"#$%"##& "#$ %&'(()*+) ,-./
ANNEX 4. ESTMATED NUMBER 0F FARMS
PART0PATNC N TRE AAA PR0CRAM
Source. !"#$%"##&, 2014

ANNEX 5. 00FFEE PR00ESSNC METR0DS
T|oug| specifc variations can oe found due to local traditions and cultural differences,
t|ere are two nain coffee processing net|ods t|at depend on t|e presence (or not)
of water during t|e process, nanely t|e "wet" and "dry" net|ods.
K5954;O 8=>>55 B4=85<<192 F5:C=@<
Source. CMS (2014)
n oot| net|ods, prelininary <=4:192 &$+ 8O5;9192 of t|e c|erries is done as soon as
possiole after |arvesting.
!"#$
!"#!
!"##
!"#"
!""%
!""&
!""'
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!$
!"#$%"##& "#$ %&'(()*+) ,-./
B$ %3. S5: F5:C=@, t|is is generally done oy was|ing t|e c|erries in tanks flled
wit| flowing water. Screens nay also oe used to inprove t|e separation oetween
t|e ripe and unripe, large and snall, c|erries. lfter sorting and cleaning, t|e pulp is
renoved fron t|e c|erry. T|is process is t|e key difference oetween t|e dry and t|e
wet net|ods. n t|e latter net|od, t|e pulp of t|e fruit is separated fron t|e oeans
oefore t|e drying stage. T|e pulping is done oy a nac|ine w|ic| squeezes t|e
c|erries oetween fxed and noving surfaces. T|e fles| and t|e skin of t|e fruit are
left on one side and t|e oeans, enclosed in t|eir nucilaginous parc|nent covering,
on t|e ot|er. Because t|e pulping is done oy nec|anical neans it nornally leaves
sone residual fles| as well as t|e sticky nucilage ad|ering to t|e parc|nent
surrounding t|e oeans. T|is |as to oe conpletely renoved to avoid contanination
of t|e coffee oeans oy products resulting fron t|e degradation of t|e nucilage. T|e
newly pulped oeans are placed in large fernentation tanks in w|ic| t|e nucilage
is oroken down oy natural enzynes until it disperses and is was|ed away. W|en
t|e fernentation is conplete, t|e coffee is t|oroug|ly was|ed wit| clean water in
tanks or in special was|ing nac|ines. T|e parc|nent coffee is t|en dried eit|er in
t|e sun, in a nec|anical dryer, or oy a conoination of t|e two. T|e wet net|od is
generally used for all lraoica coffees, wit| t|e exception of t|ose produced in Brazil
(Naturals) and sone lraoica coffee produced in ndia.
J=>>55 <:;25< @34192 S5: B4=85<<192 F5:C=@
T|e @4E F5:C=@ (also called t|e natural net|od) is t|e oldest and sinplest net|od
and requires little nac|inery. t involves drying t|e w|ole c|erry. T|e coffee c|erries
are spread out in t|e sun, eit|er on large concrete or orick patios or on natting
raised to waist |eig|t on trestles. ls t|e c|erries dry, t|ey are raked or turned oy
|and to ensure even drying. t nay take up to 4 weeks oefore t|e c|erries are dried
to optinun noisture content, depending on t|e weat|er conditions. Cn larger
plantations, nac|inedrying is sonetines used to speed up t|e process after t|e
coffee |as oeen predried in t|e sun for a few days. T|e dried c|erries are stored in
oulk in special silos until t|ey are sent to t|e nill w|ere |ulling, sorting, grading and
oagging take place. lll t|e outer layers of t|e dried c|erry are renoved in one step
oy a |ulling nac|ine.
llnost all Pooustas are processed oy t|is net|od. t is not practical in rainy regions,
w|ere t|e |unidity of t|e atnosp|ere is too |ig| or w|ere it rains frequently during
|arvesting. T|e dry net|od is used for aoout 90 percent of t|e lraoica coffee
produced in Brazil (Naturals), nost of t|e coffees produced in Et|iopia, Haiti and
Paraguay, as well as for sone lraoicas produced in ndia and Ecuador.
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WET METHCD
Pipe c|erry
Dry parc|nent Dry nilling
Creen coffee
(was|ed)
Wet nilling (pulping and
fernentation) and drying
6(#$ "* 3.&%9
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
!2
!"#$%"##& "#$ %&'(()*+) ,-./
J=>>55 <:;25< @34192 @4E B4=85<<192 F5:C=@
Source. nternational Coffee Crganization (CC). 2013. Field processing. lvailaole at (www.ico.org/feldprocessing.
aspCst|as|.ECMtFH1F.dpuf9
ANNEX 6: A T00L T0 DEVEL0P A CRC EMSS0NS
REDU0T0N STRATECY
!"
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-./01.23045 .5.6378206/
-./01.23045 49950426./
:0554;. 421 7./01<. =;=3
nsulation retroft (residential)
nsulation retroft (connercial)
Lig|ting switc| incandescent to LED (residential)
>47/ ?<55 @AB701
C4/3. 7.6A6502;
D=455 @A178
-.1<6.1 /54/@ 421 B<72 4;706<53<7. 682E.7/082
-.1<6.1 94/3<7.5421 682E.7/082
F74//5421 =424;.=.23
F.83@.7=45
G7;4206 /805 7./38743082
Building effciency new ouild
(21 ;.2.743082 B08?<.5/
H.;741.1 5421 7./38743082
H.;741.1 ?87./3 7.?87./343082
>47/ 95<;*02 @AB701
I8J 9.2.3743082 J021
Cas plant CCS retroft
Coal CCS retroft
K8J.7 95423 B08=4//
cofring
-.1<6.1 023.2/0E.
4;706<53<7. 682E.7/082
L0;@ 9.2.3743082
J021
D8547 KM
D8547 >DK
N782 421 /3..5 >>D 2.J B<051
>845 >>D 2.J B<051
K4/3<7.5421 4??87./343082
O<65.47
)/3 ;.2.743082 B08?<.5/
-06. =424;.=.23
Effciency inprovenents ot|er industry
Electricity fron landfll gas
>502P.7 /<B/303<3082 BA ?5A 4/@
>7895421 2<370.23 =424;.=.23
Motor systens effciency
Petroft residential HVlC
!"#$%&%'$ )*$%'$+#,
-$./0% )%1 2%#1
!"#$%&%'$ 3*4$
5 )%1 $./0%
T|e glooal Mclinsey
costcurve
XA;X1<7 Potential enissions savings (aoatenent)
EA;X1<7 Cost (per netric ton of caroon dioxide)
Source. Mckinsey & Conpany (2009)
,
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DPY METHCD
Pipe c|erry Dry c|erry
Creen coffee
(natural)
Sun drying Hulling
!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
!6
!"#$%"##& "#$ %&'(()*+) ,-./
ANNEX 7. !"#$%"##& W0RLDWDE 2014
J=39:415< SC545 !"#$%"##& 1< 834459:OE B45<59:
&=348192 8=39:415<
Source. CMS wit| !"#$%"##& data, 2014
!"#$%"##& "#$%$&'$
! ### $%&'()*+,
Mexico
Nicaragua
Cuatenala
Costa Pica
Colonoia
Brazil
ndia
Et|iopia
- .%' ### $%&'()/
lenya
,
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!8
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ANNEX 8. V0LUNTARY EMSS0NS REDU0T0NS (VERS)
Pro|ects t|at produce VEPs are generally fron t|e following categories.
% R,(?L;0* ,(? >.+*0)+F reforestation/afforestation, clinatefriendly agriculture
and inproved forest nanagenent.
% I*(*=,C/* *(*+BF generation and delivery of energy fron nonfossil energy
sources, suc| as solar, oionass, oiogas, wind, geot|ernal and |ydro.
End-use energy efcency reduction in t|e anount of energy required to produce
goods or services.
% ],0)* A,(?/-(B ,(? ?-01.0,/ deliver an energy service (e.g. electricity generation
fron land fll recovered net|ane) or a usaole product wit| sustainaole developnent
oenefts (e.g. conposting).
% K>>L>,+< =,0)*=,)*+ )+*,)<*() principally capture of net|ane.
T|e rules and regulations t|at defne w|et|er a pro|ect generating VEPs can clain
caroon offsets are set oy independent notforproft organizations, and are known
as "standards." n general t|ese standards seek to ensure t|at caroongenerated
pro|ects neet several inportant criteria.
% Q??-)-.(,/-)F t|at t|e pro|ect generating t|e credits follows accepted protocols
for denonstrating t|at t|e pro|ect produces clinate oenefts
% M*+<,(*(@* t|e pro|ect guarantees green|ouse gas nitigation over a stated
tine period
% 4. ^/*,_,B*` t|e pro|ect nust not transfer enissions to anot|er locality
% 4. ?.;C/* @.;()-(B no nore t|an one organization takes credit for t|e offsets
VaIdatcn and vercatcn t|e pro|ect nust receive independent verifcation and
t|e verifer nust oe an accredited and recognized independent t|ird party
lnong t|e nore widely used standards are t|e Verifed Caroon Standard (VCS)
6www.vcs.org) and t|e Cold Standard (|ttp.//www.cdngoldstandard.org). Ct|er
conplenentary standards, suc| as t|e Clinate, Connunity and Biodiversity llliance
(%&$+&*+( 6|ttp.//www.clinatestandards.org) are also oeconing increasingly
inportant in landuse related pro|ects.
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!"#!#$%&' )& %&*+'")*+, +&, *# +&, '-' $*")*+'. %& !"#$%"##&/$ 0#11++ $2!!3. 0-)%&
!G
!"#$%"##& "#$ %&'(()*+) ,-./
Q/C+*@A)a Q9 ,(? b,(?c-a X9 !HH"9
Carbcn sequestratcn n trcca/ agrcIcrestry systems. Agrcu/ture, Eccsystems and Envrcnment 99. T5~27.
lvailaole at. |ttp.//startinternational.org/liorary/arc|ive/fles/cseqagroforestryreviewceaf18cc0d.pdf.
lccessed on Decenoer, 2013.
Q)),+J,?*A ,(? 4.1.(*(a !H:H9
CcIIee rcductcn and rccessng Ccsta Pca and Ncaragua.
lvailaole at. |ttp.//weo.catie.ac.cr/cafnet/otrosdoc/lTTlPZlDETHNCPCoffeeConpara.pdf
QW'X9 !H:"9
Avs and the envrcnment.
lvailaole at. |ttp.//www.avis.co.uk/environnent.
lccessed on Decenoer, 2013.
Z;0-(*00 ]-+*9 !H:"9
Ccc/ P/anet Shcws That Hgh-PerIcrmance, LCFS CcnIcrmng Casc/ne Can Se a Pea/ty n Tra/s wth Ventura
Ccunty.
lvailaole at. |ttp.//www.ousinesswire.con/news/|one/20130827005455/en/CoolPlanetS|owsHig|
PerfornanceLCFSConforningCasoline.
lccessed on Novenoer, 2013.
3,1+-.))-a M9 ,(? D.+*(.a Q9 !HH69
"Ccrcrate ctzensh and ub/c re/atcns. The mcrtance and nteractvty cI scca/ rescnsb/ty ssues cn
ccrcrate webstes", n Pub/c Pe/atcns Pevew, 33, . 84-9T.
3,+C.( X)+,)*BF9 !H:"9
Cccg/e ~ /eadng the way cn renewab/e energy.
lvailaole at. |ttp.//www.caroonstrategygroup.con/caroonnarketnews/googleleadingt|ewayon
renewaoleenergy/.
lccessed on Novenoer, 2013.
3UM9 !H:"9
SDP S&P 500 c/mate change recrt. 20T3. lnvestment, transIcrmatcn and /eadersh.
lvailaole at. |ttps.//www.cdp.net/CDPPesults/CDPSP500clinatereport2013.pdf.
lccessed on Decenoer, 2013.
3'DXa !H::9
Pea/ Farmer lnccme" study. lnterna/ recrt tc Nesressc.
3'DX9 !H:!9
Carbcn Fcctrnt Acrcss the CcIIee Va/ue Chan. The Case cI Ccsta Pcan CcIIee. Paer resented at the
annua/ meetng cI the SALAS Annua/ CcnIerence, Unversdad ESAN, Lma, Peru.
lvailaole at. |ttp.//www.oalas.org/BlLlS2013proceedingsdata/data/docunents/pC39212.pdf.
lccessed on Decenoer, 2013.
3/-<,)* 3A,(B*a QB+-@;/);+* ,(? Y..? X*@;+-)FE0a !H:"9
C/mate Change and Iccd systems. Annua/ revew cI Envrcnment and Pescurces (37). T95-222.
lvailaole at. |ttp.//ccafs.cgiar.org/oigfacts/glooalagricultureenissions/.
lccessed on Decenoer, 2013.
3.@, 3./,9 !H:"9
Energy and C/mate Change.
lvailaole at. |ttp.//www.cokecce.con/corporateresponsioilitysustainaoility/energyandclinatec|ange.
lccessed on Novenoer, 2013.
S+(0) ,(? N.;(B9 !H:H9
Hcw shcu/d busness arcach carbcn neutra/ty7 The sc/utcns and benehts.
lvailaole at. |ttp.//www.ey.con/Puolication/vwLUlssets/Hows|ouldousinessapproac|caroonneutrality/SFLE/
Hows|ouldousinessapproac|caroonneutrality.pdf.
lccessed on Novenoer, 2013.
S;+.1*,( 3.<<-00-.(a !H:"9
Envrcnment. 80 cI Eurceans are ccncerned abcut the envrcnmenta/ mact cI rcducts.
lvailaole at. |ttp.//europa.eu/rapid/pressreleaseP13C53en.|tn.
lccessed on Decenoer, 2013.
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!"#$%"##& "#$ %&'(()*+) ,-./
Y,-+ 3/-<,)* Y;(?9 !H:"9
What s the dIIerence between Vc/untary Emsscn rghts (VEP'S) and Ccm/ance Emsscn rghts (CEP'S).
lvailaole at. |ttp.//www.fairclinatefund.nl/en/englis|w|atist|edifferenceoetweenvoluntaryenission
rig|tsversandconplianceenissionrig|tscers/.
lccessed on Decenoer, 2013.
Y-+0) '()*+(,)-.(,/ 3.>>** I;0) X;<<-)9 !H:"9
lvailaole at. |ttp.//worldcoffeeresearc|.org/fles/2013/07/CoffeePustSunnitFinalPeportEnglis|.pdf.
lccessed on Decenoer, 2013.
T/.C*X@,(a !H:"9
Envrcnmenta/ Ccncerns " At Peccrd Lcws" . C/cba/ Pc//.
lvailaole at. |ttp.//www.glooescan.con/newsandanalysis/pressreleases/pressreleases2013/2C1
environnentalconcernsatrecordlowsglooalpoll.|tnl.
lccessed on Decenoer, 2013.
T./? Y.;(?,)-.(9 !H:!9
Carbcn 0IIset Handbcck.
lvailaole at. |ttp.//www.cdngoldstandard.org/wpcontent/uploads/2012/09/CffsetHandoooklores.pdf.
lccessed on Novenoer, 2013.
T;*+),/a S9 !HHG9
S/cw-re/ease Ntrcgen Fert/zers n Vegetab/e Prcductcn. A Pevew. Hcrt Technc/cgy January-March 2009
vc/. T9 nc. T T5-T9.
lvailaole at. |ttp.//|orttec|.as|spuolications.org/content/19/1/1C.aostract.
lccessed on Decenoer, 2013.
P,BB,+a P ,(? X@A*11a b9 !H::,9
CcIIee and C/mate Change Desk Study. lmacts cI C/mate Change n the P/ct Ccuntry Sraz/ cI the CcIIee &
C/mate lntatve.
lvailaole at. |ttp.//www.coffeeandclinate.org/tlfles/T|enes/CoffeelndClinate/Country20profles/
Peport20Coffee20ClinatePilot20BrazilHaggar20Sc|epp.pdf.
lccessed on Decenoer, 2013.
'((*+ 3-)F Y;(?9 !H:"9
Yahcc! Carbcn Neutra/ty Prcgram.
lvailaole at. |ttp.//www.icf.con/insig|ts/pro|ects/progrananditnanagenent/ya|oocaroonneutralityprogran.
lccessed on Novenoer, 2013.
b-/-,(a Z9a P*))-(B,a d9a d-<5(*Ja T9a D./-(,a X ,(? ]A-)*a Q9 !H:!9
Case study cn Dc/es carbcn-neutra/ Iruts. Jcurna/ cI Susness research. Vc/ 55 (T2). T800-T8T0.
Re?*+,@AaM9a P,BB,+ad9a R,;a 39a S-)J-(B*+a Q9a K7,//*a K9a Z,@,a D9a d,+7-0a Q ,(? R;(?Fa D9 !H:H9
Mescamercan CcIIee. Su/dng a C/mate Change Adatatcn Strategy. ClAT c/cy breI Nc 2. ClAT, Ca/,
Cc/cmba, 4.
lvailaole at. |ttp.//ciat.cgiar.org/wpcontent/uploads/2012/12/policyorief2nesoanericancoffee.pdf.
lccessed on Decenoer, 2013.
R,;BA/,(?a M ,(? Z,(0,/a [9 !H::9
The tc ten reascns why Susnesses arent mcre sustanab/e by Scca/ Pescnsb/ty. lvey Susness Jcurna/.
lvailaole at. |ttp.//iveyousiness|ournal.con/topics/socialresponsioility/t|etoptenreasonsw|yousinesses
arentnoresustainaole#.UqCZsTul.
lccessed on Decenoer, 2013.
R.=-))a S ,(? T+-<0/*Fa d9 !HHG9
Hew/ett-Packard. Sustanab/ty as a Ccmettve Advantage
lvailaole at. |ttp.//www.unilever.con/inages/slp5LeversforC|angetcn1327C832.pdf.
lccessed on Decenoer, 2013.
D@_-(0*F f 3.<1,(Fa !HHG9
Pathways tc a /cw Carbcn Eccncmy. Verscn 2 cI the C/cba/ Creen Hcuse Cas Abatement Ccst Curve.
lvailaole at. |ttp.//www.nckinsey.con/~/nedia/nckinsey/dotcon/clientservice/Sustainaoility/cost20
curve20PDFs/Pat|wayslowcaroonecononyVersion2.as|x.
lccessed on Decenoer, 2013.
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Managng Sustanab/e C/cba/ su/y chans. Framewcrk and Sest Practces.
lvailaole at. |ttp.//nos.net/wpcontent/uploads/NBSExecutivePeportSupplyC|ains.pdf.
lccessed on Decenoer, 2013.
4-*/0*(a I9 !HH29
N Lcss Mechansms and Ntrcgen Use EIhcency.
lvailaole at. |ttp.//www.agry.purdue.edu/ext/puos/200CNLossMec|anisns.pdf.
lccessed on Decenoer, 2013.
M,7/.70_Fa b9 !H:"9
Avcdng the Transarency Tra. Leadng ractces Icr rcmctng ccnsstent ccmmuncatcns acrcss recrtng
channe/s.
lvailaole at. |ttp.//www.awarenessintoaction.con/w|itepapers/lat|rynPavlovskyPrincipalDeloitteenvironnental
riskssocialresponsioility.|tnl.
lccessed on Decenoer, 2013.
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Why Puma, Natura and CreI track envrcnmenta/ externa/tes.
lvailaole at. |ttp.//www.greenoiz.con/olog/2013/03/28/punanaturagreifenvironnentalexternalities.
lccessed on Novenoer, 2013.
X;0),-(,C/* '(0-BA) 3,1-),/ D,(,B*<*() ,(? 3UM9 !H:"9
Lnkng C/mate Engagement tc Fnanca/ PerIcrmance. An lnvestcr's Persectve.
lvailaole at. |ttps.//www.cdp.net/CDPPesults/linkingclinateengagenenttofnancialperfornance.pdf.
lccessed on Decenoer, 2013.
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The Dcha C/mate Cateway.
lvailaole at. |ttps.//unfccc.int/keysteps/do|aclinategateway/itens/7389.p|p.
lccessed on Decenoer, 2013.
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P&C marketng tc shcwcase sustanab/ty eIIcrts.
lvailaole at. |ttp.//www.narketingweek.co.uk/sectors/consunergoods/pgnarketingtos|owcasesustainaoility
efforts/4008C14.article.
lccessed on Decenoer, 2013.
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"Carbcn Icctrntng". tcwards a unversa//y acceted dehntcn". Carbcn Management 2 (T). 5T~72.
lvailaole at. |ttp.//www.futurescience.con/doi/aos/10.4155/cnt.10.39.
lccessed on Decenoer, 2013.
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