Much of the focus on sustainability is with coffee production and export. However, there is also a growing number of coffee shops which are looking for ways to become carbon neutral. 

There are many ways for coffee businesses to reduce their carbon footprint. One of the most prominent is investing in more energy-efficient and sustainable equipment – such as carbon-neutral espresso machines.

To find out more, I spoke to Francesco Bolasco, Products and Innovation Project Manager at Dalla Corte. Read on for more of his insight.

You may also like our article on branding and customisation: How espresso machine design is evolving.

What is carbon-neutral coffee?

The term “carbon neutral” has become more commonly used in many industries in recent years, including in specialty coffee. But what does it really mean?

The European Union unofficially defines carbon neutrality as “having a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks”. A carbon sink is any system which absorbs more carbon than it emits – including natural “systems” like soil and forests.

All commodities have an environmental footprint which can be measured, including coffee.

“Every product or service has an impact on the environment,” Francesco tells me. “This impact can be evaluated using a Life Cycle Assessment (LCA).”

Measuring carbon emissions

It’s certainly challenging to accurately measure the carbon footprint of coffee. However, a number of studies have used LCAs to gather more reliable data. One of these is a 2020 research paper from University College London which looked into the carbon footprint of producing and exporting coffee from Brazil and Vietnam to the UK.

In summary, the study found that:

• The average carbon footprint of both Brazilian and Vietnamese arabica coffee was calculated as 15.33 (±0.72) kg of carbon dioxide equivalent per 1kg of green coffee (kg CO2e kg−1) for conventional coffee production 
• The average carbon footprint of both Brazilian and Vietnamese arabica coffee which was produced more sustainably was calculated as 3.51 (±0.13) kg CO2e kg−1
• The 77% reduction in carbon footprint for sustainable coffee production compared to conventional production was largely the result of exporting coffee via cargo ships (rather than by airplane) and using fewer agrochemical inputs
• The majority of carbon emissions produced across the entire supply chain came from exportation and shipping

Similarly, another study which measured the carbon emissions of Costa Rican coffee found that the total carbon footprint across the entire supply chain was 4.82 kg CO2e kg−1. It also should be noted that Costa Rica is considered one of the most sustainable countries in the world. In part, this likely explains the lower level of emissions.

So how do companies reduce their carbon footprint?

Coffee companies can become carbon neutral through two methods: carbon insetting and offsetting. The former involves reducing carbon emissions within a company’s own supply chain. The latter, meanwhile, is where companies invest in sustainable initiatives outside of their own operations.

For example, a coffee business looking to become carbon neutral and offset its emissions can fund tree planting projects in other countries. Insetting, meanwhile, would mean that a company would have to create a reforestation project (or another similar sustainable project) within its own operations. 

However, it can take years for a company to develop and implement their own carbon reduction project. In turn, carbon offsetting schemes are more popular. But companies must first measure the carbon footprint of their entire supply chains when choosing this method.

Francesco tells me how Dalla Corte used the “cradle-to-gate” assessment method to calculate the carbon footprint of its Zero, XT, and Icon espresso machines.  

“‘Cradle-to-gate’ refers to a product’s carbon footprint from the moment it’s made to the moment it reaches the customer,” he explains. “Because we are a B2B company, we consider the final destination of our products to be our global distributors’ warehouses.”

After calculating the carbon footprint of each machine, Francesco says that the company offset all emissions through the Ntakata Mountains project, which protects and preserves wildlife, forests, and indigenous communities in Tanzania.

What about sustainability in coffee shops?

Much of the focus on sustainability in coffee revolves around production and export – and rightly so. Many studies point to these stages of the supply chain as the biggest emitters of carbon dioxide (CO2).

In line with this, a number of sustainable practices have been implemented on coffee farms. For example, producers can use more natural fertilisers and dispose of waste by-products in more environmentally-friendly ways.

However, this means the burden to improve sustainability in the coffee industry largely lies with farmers, including smallholders. And given that large-scale agriculture is responsible for the vast majority of carbon emissions in coffee production, sharing the burden among other industry professionals is key to achieving “true” sustainability.

As such, as well as becoming carbon neutral, coffee shops around the world have started to implement more sustainable business practices. These include:

• Reducing the use of single-use takeaway cups
• Recycling more waste, including used coffee grounds
• Adopting zero-waste practices
• Offering more plant-based milk options, which tend to have a lower carbon footprint than cow’s milk

Espresso machines and other equipment

With the recent spike in costs for hospitality businesses, energy efficiency of equipment has become more important than ever.

This is most notable with espresso machines, as they tend to produce the highest levels of CO2 than other pieces of equipment in coffee shops.

“For our machines in particular, between 90% and 95% of carbon emissions come from general usage as they require electricity to work,” Francesco says.

Moreover, because of heat loss, poorly-insulated boilers can potentially waste up to 50% of the energy they use. This has led some espresso machine manufacturers to develop more energy-efficient, sustainable models to address these issues, including carbon-neutral machines.

Francesco explains how Dalla Corte calculated the carbon footprint of some of its espresso machines, starting with the XT. He says the first step of the process involved analysing the environmental impact of all machine parts – including the materials used and where they were manufactured.

“The further away the supplier is for a specific part, the higher the emissions levels will be,” he tells me. “We also asked our main suppliers about their production processes and sustainability best practices for a more accurate impact assessment.

“The second step was to measure carbon emissions for each part in terms of energy consumption,” he adds. “Finally, we compiled a list of all shipments and other means of transportation to our global distributors within a particular time frame (usually one year).”

Using data such as this, companies can measure the average carbon footprint of a single espresso machine.

“On average, the production and distribution of a single Dalla Corte espresso machine produces around 600kg CO2,” Francesco says.

Can you truly have a carbon-neutral espresso machine?

Francesco explains what a carbon-neutral espresso machine is.

“By definition, it’s an espresso machine whereby you have offset all of its carbon emissions by purchasing an equal volume of carbon credits,” he says.

He adds that Dalla Corte offset emissions for its XT, Zero, and Icon espresso machines through its new PlaNet Sustainability Project, which officially launched in December 2022. 

“With PlaNet, we are combining all of our sustainability projects under one name, which adds another important layer to our sustainability plan,” he says. “These three machines are now certified carbon neutral.”

Alongside offsetting (or insetting) the machines’ carbon footprints, there are a number of other features which are designed with sustainability in mind.

“For instance, Dalla Corte’s Zero, XT, and Icon machines don’t use boilers to heat brewing water,” Francesco tells me. “Instead, water is heated directly in each separate grouphead using the precise amount of energy needed.

“This helps to reduce energy consumption,” he adds. “And thanks to our new Proportional Integral Derivative (PID) control system, we have achieved even better efficiency.”

The benefits of carbon-neutral coffee

For any coffee business, there are many clear advantages to reducing carbon emissions and becoming carbon neutral.

First and foremost, many global governing bodies are driving businesses to minimise their environmental impact. For instance, the EU Green Deal plans to create a climate neutral economy by 2050 – which means companies may have to comply with certain rules on carbon emissions.

Simply put, this has never been more important than now, including for the coffee industry. In January 2023, a study published in PLOS Climate found that over the past four decades, climatic conditions which can reduce coffee yields have become more frequent. These include higher temperatures, as well as more erratic rainfall and humidity levels, which could result in “ongoing systemic shocks” to global coffee production.

Meeting consumer demand

“Coffee consumers are savvier and are asking for more ‘green’ products,” Francesco says. “Pushing coffee business owners to improve their own sustainability practices then also reinforces this need to their suppliers.”

In line with this, Francesco recommends coffee shops and roasters include information about any carbon-neutral equipment they use (including espresso machines) in their sustainability reports, should they publish them.

Ultimately, companies should look to provide more accessible information about their environmental impact, especially as this becomes increasingly important to consumers.

For instance, according to a 2021 YouGov survey, 60% of US consumers (especially younger generations) are willing to pay a premium for sustainable products.

Moreover, in a highly competitive market, carbon-neutral espresso machines can be a unique selling point for coffee shops.

Energy consumption

As well as reducing environmental impact, carbon-neutral espresso machines are designed with greater energy efficiency in mind. 

“Dalla Corte machines are not only carbon neutral, but they also have patented technologies which reduce energy consumption during their lifetimes,” Francesco says.

Considering that energy costs are on the rise for coffee shops worldwide, investing in a more sustainable espresso machine can help to lower energy consumption, and thereby costs, too.

Over the past few years, the specialty coffee industry has made great strides towards becoming more sustainable. A large part of this has concerned minimising carbon emissions, thereby lessening the supply chain’s impact on the environment.

And while most of us would first think of reforestation projects and sustainable production techniques, it’s clear that sustainability doesn’t end at origin. 

It is possible to create a carbon-neutral espresso machine, and furthermore, by investing in carbon offsetting or insetting initiatives, coffee companies can lower the carbon footprint of their equipment – potentially giving their business a new unique selling point.

Enjoyed this? Then read our article on technical evolution: How espresso machines have changed in the 21st century.

Photo credits: Dalla Corte

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In December 2022, as a direct response to this issue, the European Union (EU) announced a new provisional deal which would seek to minimise and eradicate the import of products linked to deforestation. Effectively, from 2024, this deal means unless traders of certain commodities – including coffee – can certify that their products have come from deforestation-free supply chains, import of these products into the EU will be prohibited.

Naturally, these new EU regulations have major consequences for those working in the export and production of coffee. It’s already difficult to accurately know just how much deforestation is taking place in a supply chain, or if it’s taking place at all. However, industry professionals looking to export to the EU will now have to prove the production of their coffee results in no deforestation following 31 December 2020.

In line with this, more and more coffee professionals are relying on technology and data platforms to map and detect deforestation. Moreover, they also have to prove compliance with these new laws.

To learn more, I spoke with three industry experts. Read on for more of their insight.

You may also like our article on growing sustainability in the coffee supply chain.

Why is deforestation in coffee production an issue?

First and foremost, we need to define deforestation. Simply put, it is the removal of trees to increase land area for agricultural and commercial purposes. Naturally, this can lead to a number of environmental problems.

There is a significant knowledge gap about deforestation in coffee production. In turn, it’s hard to know just how much takes place in the coffee supply chain. However, what we do know is that deforestation is happening in origin countries. And this includes the top five producers in the world.

According to Global Forest Watch, in 2020 and 2021:

• Brazil lost 6.28 million ha of forest, over 70% of which was because of commodity-driven deforestation
• Vietnam lost 401,000ha of forest, 95% of which was the result of commodity-driven deforestation and changes in the agricultural sector
• Colombia lost 589,000ha of forest, 97% of which was because of commodity-driven deforestation and shifts in the agricultural sector
• Indonesia lost more than 1.8 million ha of forest, 92% of which was from commodity-driven deforestation
• Ethiopia lost 366,000ha of forest, over 90% of which was because of commodity-driven deforestation and shifting agricultural practices

As well as worsening the effects of climate change, there are many reasons why deforestation causes significant harm to the environment.

Alfadrian Syah is the head of the Solok Radjo, an organisation of coffee farmers in Gumanti Hill, Solok in West Sumatra.

“Deforestation can lead to a loss of shelter for animals which help maintain the biodiversity of local ecosystems, such as birds of prey and pollinating insects,” he says. “Additionally, soil erosion can worsen the quality of soil and reduce the availability of water for coffee plants.

“As a result, coffee yields can decrease and quality may also be compromised,” he adds. 

Challenges that smallholder farmers face

Coffee production isn’t necessarily a driver of deforestation. But evidence suggests that deforestation does take place on coffee farms, as well as in immediate surrounding areas. However, it’s essential to acknowledge that the vast majority of deforestation is directly attributed to large-scale agriculture.

In fact, deforestation on a small scale can actually be sustainable. For example, a smallholder farmer may cut down a few trees to use for firewood or construction, with the intention of replanting the trees at a later date.

“Coffee farmers need to understand the impact of deforestation and make efforts to avoid or minimise deforestation practices,” Alfadrian tells me. “One way to do this is to implement agricultural practices that prioritise environmental preservation and sustainability.”

The new EU Deforestation Regulation (EUDR) initiative was created as a way to ensure more farmers and companies adhere to stricter standards on deforestation.

Jon Trask is the CEO and founder of Dimitra. The blockchain platform supports smallholder farmers around the world – including in the coffee sector.

He explains that because the EU coffee market is so lucrative, it’s important that producers, millers, exporters, and importers adhere to the new regulations.

“It’s a very, very large market to lose out on if your supply chain is linked to deforestation,” he explains. “However, the economic burden of implementing more sustainable farming is put directly on the producer, who may already make little money.

“We can’t penalise farmers – some of whom live below the poverty line – or prevent them from scaling their business,” Jon adds.

How can coffee farmers and buyers track and prevent deforestation?

It’s no understatement to say that accurately measuring levels of deforestation is challenging, especially on the ground. Deforestation typically occurs at a slow rate, and can often happen far away from coffee farms.

Moreover, some smallholder producers may need to cut down trees to plant more crops or sell wood for timber. However, with the new EUDR initiative in place, it’s now more vital than ever that coffee farmers, millers, and traders know where and when deforestation is happening – as well as how to reduce it.

As part of a project with the Faculty of Agriculture at Andalas University in West Sumatra, Dimitra is working with farmers at the Solok Radjo coffee project to reverse soil degradation and prevent deforestation. 

By conducting land surveys and monitoring soil and plant health, researchers found that the topsoil layer on local farms was too thin, while the soil’s pH levels were too high. In turn, this meant certain crops couldn’t be grown on these farms. To add to this, soil erosion from rain and wind was also causing further damage.

“Without action to change the course of deforestation, we will continue to lose vegetation, as well as soil due to continued erosion,” Alfadrian says. 

Jon explains how Dimitra worked with local coffee farmers to reduce deforestation and improve growing conditions.

“We realised that if we changed the pH level of the soil by applying nutrients, we could increase farmers’ yields,” he tells me. “We analysed soil samples and found that we could increase revenue by US $3,000 per hectare by investing in and applying a natural calcium-based fertiliser.” 

Why is using technology to track deforestation important?

Without using the proper tools, it’s nearly impossible for coffee farmers, millers, importers, and exporters to monitor deforestation rates. In line with this, technology plays a critical role.

“Most farmers we work with don’t have access to these kinds of platforms,” Jon says. “Some farmers may not have used smartphones before, too.”

However, when using dedicated apps which map deforestation, coffee producers can provide a range of information about their farming practices. These include:

• Soil health
• Irrigation and weeding
• Harvesting techniques

Alfadrian explains how receiving more support and formal training has helped local coffee farmers.

“We can understand more about the importance of implementing agricultural best practices, as well as how to mitigate deforestation levels,” he tells me. 

Jon says that Dimitra plans to carry out similar projects with universities in Bolivia, Colombia, and Honduras in the future.

“As we train more coffee farm workers, more and more producers will become competent with our app, and can potentially teach their neighbours,” he adds.

Riganov Wijaya Kusuma is the Manager of the Minang Coffee Association. The institution connects farmers with the government, academics, financial institutions, and non-profits in West Sumatra.

“We hope to implement similar projects in other areas in the province of West Sumatra,” he says. “Serving high-quality specialty coffee starts at farm level.”

Ensuring compliance with anti-deforestation regulations

Monitoring and preventing deforestation is essential. However, for producers to sell their coffee in EU markets, they now must be able to prove that no deforestation took place in their supply chain following December 2020.

To provide this information, and therefore ensure compliance with the new EUDR initiative, farmers, millers, and traders need access to secure and reliable data.

“When governing bodies first started to talk about anti-deforestation legislation, there were ways around the rules,” Jon explains. He adds that some farmers who didn’t comply with anti-deforestation regulations would provide photos of other areas of land, or use geo-data which didn’t match the boundaries of their farms.

However, given the strict regulations now imposed by the EU, it’s more important than ever to prove compliance.

Using technology

Jon explains how Dimitra’s app includes a Deforestation Compliance feature. This ensures that every shipment of coffee meets new regulatory demands.

He tells me that the app includes both a risk assessment and a mapping and certificate feature, which uses blockchain technology and its own cryptocurrency (DMTR). Farmers can then map out the boundaries of their farm using satellite imagery. They can also request deforestation reports which compare the latest weekly satellite images to ones from 2020.

Using AI-driven technology and high-resolution satellite image analysis, the app allows supply chain actors to detect deforestation, prove compliance with the EUDR, and reduce the risk of fraudulent activity. This is done by highlighting lost tree cover in red and new tree cover in green.

Another important aspect of complying with new anti-deforestation regulations is providing any required documentation. For example, farmers using Dimitra’s app can provide their certificate to prove compliance.

With the EU’s anti-deforestation regulations set to come into effect in spring 2023, coffee professionals need to be aware of what these new laws mean for them.

Ultimately, technology can better assist producers, millers, and traders to track deforestation across their supply chains. At the same time, there needs to be a bigger focus on how this can be done in a way that best supports producers and their communities. 

Enjoyed this? Then read our article on sustainability in coffee: what are the main issues?

Photo credits: Dimitra

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At farm level, technology has been used to support coffee production since the mid-20th century. However, since then, there have been further developments as far as automation and equipment are concerned.

Today, we are seeing an increasing focus on using technology to address a number of issues that coffee production faces. These include increasing the climate resilience of coffee plants and improving quality control.

To understand more about how the use of technology could affect coffee production in the future, I spoke with several industry professionals who are developing these technologies and who work with Sucafina, a sustainable farm-to-roaster coffee trader. Read on to find out what they had to say.

You may also like our article on how technology has changed in the coffee industry over the last few years.

How can technology improve traceability?

When talking about sustainability in the coffee industry, transparency and traceability are some of the most widely discussed issues. 

Essentially, these concepts cover access to production-level information – such as the prices paid to producers for their coffee or the specific plot of land that coffee was grown on.

For many years now, technology has been used to improve transparency and traceability in coffee production. One of the most notable examples is blockchain technology, which allows a number of supply chain actors to store data on a decentralised network system. 

Anyone who has access to the network is able to view the information (including farmgate prices, for example), but they cannot amend or remove the data – meaning the data is secure.

Collins Mugabi is the Sustainability Business Analyst Manager for Sucafina. 

“One of the many ways in which technology will change the coffee industry is by improving traceability,” he says. 

He tells me about Sucafina’s new Cropin software, which is helping to make coffee more traceable. When a field officer helps register a farmer on Cropin, information about their farm, including location, types of crops grown, any certification and production history, is entered into the system.

“Every batch of coffee which is sourced and purchased using Cropin can easily be traced back to the individual farm, washing station, or buying centre,” Collins explains. 

Improving farmers’ access to financing can also be achieved through technology like Cropin. The software records transactional data, such as volumes of coffee purchased, price per kilogram, and batch number.

The information is stored to create an automatic record of a farmer’s financial history, which can potentially help them qualify for credit or loans in the future.

Kihara Victor is a Systems Administrator for RWACOF (Sucafina Rwanda).

“When we track this data, we’re better able to provide farmers with pre-season loans based on their projected annual volumes,” Kihara says. 

He adds that farmers can then sell cherry to RWACOF’s washing stations, deposit some of their income into bank accounts, and save money to pay back the pre-season loans over time. 

Streamlining logistics and market analysis

The trade and export of coffee can be fraught with complications – especially when we consider shipping container shortages and rising freight prices.

Tran Dao is the Shared Service Team Leader for Sucafina. She explains how the company is trialling new technology that can accurately track shipments of coffee, as well as making it easier to communicate shipping updates between different supply chain actors. 

“Sucafina is using new smart shipping containers that are integrated with Internet of Things (IoT) technology,” she says. “This is designed to provide real-time data and notifications about the movements and conditions of cargo at any given point in time.

“Using this technology, we can improve the transparency and traceability in our supply chain,” she adds. “We are able to check if there were any abnormal routes or conditions that could affect our coffee, and take appropriate actions to reduce any risk.”

Carolina Guerra is the North America Execution Specialist for Sucafina. She tells me about other technology that Sucafina is using to streamline shipping logistics.

“Cargoo is a new platform that facilitates communication about a specific shipment between all stakeholders,” she says. “The user interface helps to centralise all information about the shipment and reduce the number of emails we send for each shipment. 

“It streamlines the whole process of communication from exporters to customers,” she adds.

As part of the export of coffee, a significant amount of paperwork needs to be completed. This process can be time consuming and labour intensive for many people who work in the coffee industry.

Ilya Byzov is a Quantitative Trader for Sucafina. He tells me how artificial intelligence (AI) technology can help to simplify the process by automatically analysing and storing data from a number of documents.

“If we can automate these systems, we can allocate other tasks to our staff,” he says – ultimately saving more time and money.

Fluctuations and changes across the industry – including in relation to the C price – mean traders generally need to keep up to date with any changes.

Ilya tells me that Sucafina is trialling new analytics software that can assess whether or not any news stories or events will influence the global coffee market.

“This tool would help notify us when a major story breaks, so we can then immediately forecast how it might impact the overall market,” he says.

Quantifying the environmental impact of coffee production

One way that we can focus on securing the future of the coffee industry is by mitigating the environmental impact of growing coffee, which is becoming a growing focus for many consumers.

Several new technologies can be used to track and measure the environmental impact of coffee production. One such example is satellite tracking technology, used to assess deforestation in the coffee supply chain. 

Among the many environmental issues in the coffee sector, there is a significant knowledge gap about deforestation in coffee production. It’s also difficult to track deforestation on the ground as the process of collecting data is slow and often expensive.

As a direct response to this, Sucafina has partnered with satellite tracking companies Trade in Space (TIS) and Global Risk Assessment Services (GRAS) to identify where deforestation is taking place in global coffee supply chains.

To identify levels of deforestation across larger areas of land more accurately, satellite technology can track changes in tree cover over longer periods of time. 

Ana Cabezas is a GIS & Sustainability Project Manager at GRAS.

“Remote sensing technology can monitor areas of land and forests to detect any changes in land use,” she says. “It can reach much larger regions of land – even those that are difficult to access on the ground.” 

Robin Sampson is the CEO of TIS. He explains how satellite technology can be used to provide a more accurate representation of deforestation in coffee production.

“There are many satellites in orbit, so there is more data being produced every day than ever before,” he says. “We can instantly find images of any area of land from open data sources.”

“We found that to some extent, deforestation is occurring in nearly all the coffee supply chains that we assessed,” Ilya tells me.

However, it’s important to note that for the most part, coffee production is not the biggest driver of deforestation. In many cases, population growth (and the resulting increase in food production to meet rising demand) is causing deforestation to take place in coffee-growing regions.

Adapting to climate change

With climate change now a pressing issue for coffee farmers along the Bean Belt, there is a growing need to improve the resilience of coffee plants. Research suggests that up to half of the current suitable land for coffee production in the world’s top coffee-growing countries could reduce in size over the next 30 years. 

Although there are a number of ways to mitigate the effects of climate change on the coffee industry – including carbon insetting schemes – adaptation is also important.

Lab-grown coffee is one of ways that the industry could potentially use to adapt to the effects of climate change. As the name indicates, lab-grown coffee is cultivated in a laboratory rather than on a farm.

Kristine Breminer Isgren is a Q Grader and the quality control manager for Complete Coffee Limited, which is part of the Sucafina group. She explains that there are a number of technologies used to produce lab-grown coffee – some of which involve no coffee production at all.

The first process she describes, the “molecular method”, uses different agricultural products (such as date pits) to mimic the main flavour compounds found in coffee – meaning it contains no actual coffee. 

The second is the “microbial method”, which uses genetically-engineered microbes to produce these flavour compounds.

The third and final, the “cellular method”, however, uses coffee cells that are grown in bioreactors. These cells are then processed into a powder-like substance that can then be brewed similarly to ground coffee.

While there are a number of benefits to lab-grown coffee, Kristine notes that more research to make them commercially viable will certainly be necessary.

“Lab-grown coffees are technically deforestation-free, use less water, and can be carbon neutral,” she says. “However, more evidence is needed to back these claims up. 

“There would also be major repercussions for everyone in the coffee supply chain, especially farmers,” she adds. “Millions of people are reliant on coffee production for their income.”

Improving quality control

A key area of focus in the specialty coffee sector is on improving coffee quality as a way for farmers to receive higher prices in the long term. For many years now, a range of technologies have been used to support this.

Nicolette Yeo is the Head of Marketing for ProfilePrint – an AI-powered food “fingerprint” platform that can be used to determine the cup score, taste profile, moisture content, and density of a given sample of green coffee.

“ProfilePrint allows all users to understand more about the quality of green coffee,” she says. The technology works by matching molecular signatures (levels of chemical compounds such as proteins, amino acids, sugars, and more) in green coffee with specific flavours and aromas found in roasted coffee beans.

As well as simplifying the quality assessment process, technologies like ProfilePrint could provide more objective cup scores for producers, green coffee buyers, and roasters – improving consistency and productivity.

As part of this, The Center collaborated with 45 coffee sensory experts to establish a global calibration model. 

Tim Heinze is the Coffee Education Manager at The Center. 

“Coffee quality is not something that one individual can evaluate,” he explains. “Instead, the entire industry needs to agree on a certain standard.

“Technology like ProfilePrint can make quality control more available to producers who historically have had less access to this information,” he adds. “This technology has the ability to democratise coffee quality control.”

There’s no denying that technology has the ability to help us create more transparent, accessible, and sustainable coffee production in the future. Furthermore, it’s clear that those who don’t keep up will be left behind – with no evidence that technological change across the industry is slowing down any time soon. 

Ultimately, it’s clear to see that technology will continue to shape the future of the coffee industry, but how it will do so remains to be seen. As new technologies emerge, we could see the coffee industry change in a many number of different ways – hopefully for the benefit of farmers around the world.

Enjoyed this? Then read our article on addressing deforestation in coffee production.

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To address this problem, some coffee businesses are opting for more sustainable approaches to waste management, including circular economy models. These environmentally-friendly practices can vastly reduce waste, among numerous other benefits.

As part of this movement, a growing number of coffee shops are choosing to go “zero waste”, but what exactly does this mean? And is it achievable? I spoke with two coffee sustainability experts to find out more.

You may also like our article on how coffee shops can reduce single-use cup waste.

What does “zero waste” mean? 

With more and more consumers focusing on sustainability in the coffee industry, the term “zero waste” has become somewhat of a buzzword over the past few years. But what does it actually mean?

Essentially, the concept of zero waste is based on the elimination of waste, mainly through reusing and recycling products, materials, and packaging. According to the Zero Waste International Alliance, zero-waste practices must reuse, recover, or recycle these items “without burning them and without discharges to land, water, or air that threaten the environment or human health”. 

Ultimately, the end goal of zero-waste practices is to prevent the production of waste altogether. This is a daunting task considering that a staggering 91% of all plastics ever produced haven’t been recycled – ending up in landfills and oceans around the world instead.

It’s unclear as to when the term “zero waste” was first coined, with some reporting that its origins trace back to the 1970s. The chemist Paul Palmer is believed to have first used the term while discussing how to reuse “clean” waste chemicals produced in Silicon Valley, as opposed to using them once before disposing of them. Palmer later went on to become the founding director of the Zero Waste Institute.

In 1997, however, California’s Resource Recovery Association announced its “zero-waste” goal as part of its agenda for the new millennium. This is widely considered to be the first implementation of official zero-waste management practices in the US.

Despite the lack of official definition or certification, zero-waste hospitality businesses are starting to become more popular in countries around the world. This movement is largely driven by the ever-growing demand to reduce (or eliminate) levels of waste produced from coffee businesses – including single-use cups, lids, packaging, napkins, and straws.

Is it possible for a coffee shop to be zero waste?

In theory, for a coffee shop to use the “zero waste” label, it shouldn’t produce any waste at all. 

However, in practice, this can be anywhere from difficult to impossible. This is because coffee shops generally produce significant amounts of waste – from takeaway cups and lids to leftover milk and used coffee grounds. Beyond that, you also have the packaging the products came in, such as cardboard and plastic.

Marion Vignot is the General Manager of Responsible Cafés, a non-profit organisation in Australia which supports coffee shops transitioning over to more sustainable business practices. 

She says it’s impossible for a coffee shop to be fully zero waste. Instead, she believes cafés should focus on ensuring that as little waste as possible goes to landfill.

“The focus should be on using products and materials that are reusable rather than disposable,” she tells me. “It’s about creating a community of people with similar mindsets.”

Lenka Kriz is a co-owner of Cat & Cow Coffee in New South Wales, Australia – a zero-waste coffee shop she co-founded with her husband in 2019. 

“[For a coffee shop], zero waste means minimising waste wherever possible,” she says. “It’s about trying to avoid creating unnecessary waste.

“For us, this ranges from refusing any leaflets or samples we are offered to communicating with our suppliers about reusing and returning packaging when possible,” she adds. “We also use compostable and recyclable items, so our landfill bin is only a quarter-full every two weeks.”

Ultimately, zero-waste management practices can vary widely from one coffee shop to another. The extent of these practices can depend on a number of factors, such as location, menu items, supplier partners, and number of staff.

Weighing up the pros and cons

Although the concept of zero waste can be appealing to consumers – particularly younger demographics – some coffee shops are reluctant to adopt zero-waste practices for several reasons.

Careful planning and extensive investment are required to become a zero-waste coffee shop. This can include staff training, replacing certain equipment with more sustainable alternatives, and informing customers about new systems like reusable cup schemes.

“Some business owners think it will be expensive, but that isn’t necessarily true,” Marion says. “Others may be unable to, mostly because they’re part of a bigger coffee company and need to follow company policies.”

Lenka tells me that in her experience, implementing more zero-waste practices in her business was a personal choice.

“My husband and I had been adhering to zero-waste principles in our personal lives three years prior to opening Cat & Cow Café,” she says. “I worked as a barista and coffee shop manager for more than six years. 

“The closer we came to opening Cat & Cow, the clearer it was that we couldn’t operate it without representing our core values,” she adds.

Despite the challenges, there are clear benefits to including more zero-waste management practices in your coffee business.

“It’s an effective way to act on climate change and have a broader impact,” Marion explains. “Zero-waste coffee shops should feel good about the efforts they are making, while also promoting a zero-waste culture and encouraging consumers to do the same.”

In order for a coffee shop to successfully adopt more zero-waste practices, customers need to be onboard with the changes as well.

Lenka explains that while she was initially unsure how customers would react, they have mostly been accepting. 

“The response has been overwhelmingly positive,” she tells me. “On our opening day people brought their own reusable cups. 

“We don’t offer disposable cups, so some customers left without coffee,” she adds. “But the majority of our customers have remained loyal to us and we have created a strong community.”

In fact, research suggests that implementing zero-waste practices can actually increase a coffee shop’s appeal to customers. According to a UK survey on consumer shopping preferences, more than half of people surveyed were interested in food and beverage businesses which include zero-waste practices. 

Moreover, 37% of people were interested in food products made using upcycled ingredients. Alongside this, 43% wanted their purchases to be more sustainably packaged – indicating a growing interest in zero-waste products and packaging.

Alongside customers, coffee shop staff also need to support the adoption of zero-waste practices.

“More people are looking for work that aligns with their own values,” Lenka says. “We attract staff who are more environmentally conscious, so our staff turnover rates are generally lower.”

Implementing zero-waste practices in your coffee shop

It can be daunting to know where to begin when implementing zero-waste targets across your coffee business.

“It can be overwhelming to find the right information as waste disposal rules can often change,” Marion says.

For coffee shop owners who are unsure of how to make the initial necessary steps, she recommends doing some research beforehand. Marion suggests contacting the nearest waste disposal authority to get a better understanding of which materials and items it collects, or even connecting with zero-waste lifestyle bloggers.

However, she emphasises that it’s important to be critical of the information you receive – especially from online sources.

Once coffee shop owners feel more informed, Lenka says they can assess which items or materials can be recycled or composted instead of being sent to landfill. 

“When I managed a coffee shop, around 95% of the waste going into the landfill bins was actually compostable or recyclable,” she says. “This included used coffee grounds, paper, bags, and food leftovers, which can all be composted. 

“Milk bottles, cartons, and some soft plastics can also be recycled,” she adds.

But in order to ensure that as little waste as possible is sent to landfill, it must be disposed of correctly.

“Many packaging suppliers label their products as compostable without explaining that they require specialised facilities to dispose of them,” Marion explains. “Some coffee shop owners use compostable cups, but they’re not aware that they are industrial compostable-certified, [which means they need to be sent to a composting plant].”

If not disposed of properly, even biodegradable and compostable materials can remain intact for hundreds of years and release harmful gases, so correct disposal of waste is essential.

No matter which zero-waste practices you implement in your coffee shop, you need to effectively communicate them to customers so they know what to expect. This can range from telling them to bring their own container when purchasing retail coffee beans to informing them how to correctly use the waste disposal systems.

“The wait time for food is usually longer because our menu items are made from scratch,” Lenka says. “For people coming into our café for the first time, communication is so crucial. 

“It might take longer for them to receive their order, but you can take the time to inform customers on the benefits of being zero waste,” she adds.

Although operating a fully zero-waste coffee shop is something of an impossible task, implementing more zero-waste practices is certainly achievable for many coffee businesses.

The benefits of doing so are undeniable, but one thing is clear: any transition like this will require extensive investment, time, and commitment.

Ultimately, for business owners who are interested in being more sustainable, small steps can make a huge impact.

Enjoyed this? Then read our article on how to create a coffee shop food menu that minimises waste.

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However, despite the higher prices, some smallholder farmers are not receiving more money for their coffee, leaving them vulnerable. With roasters and coffee shops also starting to increase their prices too, we may see a shift towards consumers paying more for each cup in the next few months.

However, with these price increases, it is important to ask: just how much of the final price of a cup of coffee do farmers actually receive?

In addition to my own research, I spoke to the Academic Director of the Specialty Coffee Transaction Guide (SCTG), Peter Roberts, and owner and founder of Reciprocafé, Chad Trewick. Read on for their insight on the historic context of green coffee pricing, as well as some data they provided from the SCTG.

You may also like our article on coffee pricing: why we need to know farmgate and not just FOB.

Understanding farmers’ economic vulnerability

Among all coffee supply chain actors, farmers (especially smallholders, defined as those who grow coffee on less than 30ha of land) are generally the most economically vulnerable.

The reasons for this are complex, but can largely be attributed to historic inequities in the coffee industry. When coffee was first mass-produced, it was mostly under the control of European colonial powers, who retained the vast majority of the money when it was sold.

While these colonial empires no longer exist, they have undoubtedly left their mark on today’s coffee industry.

“[In the 1700s and 1800s], most of the land cleared for coffee production didn’t belong to the people who cleared it,” Chad explains. “In fact, the majority of the physical labour involved in coffee production was carried out by people who rightfully owned the land.

“Because of this, the beginnings of the coffee industry were exploitative,” he adds. 

After coffee-growing land was returned to native farmers, many producers were left with small parcels of land that did not allow them to operate at scale, and little financial or structural support. Ultimately, this forced many of them to sell their land to multinational companies to improve their financial stability.

“[To a certain extent], the legacy of colonialism determines the terms of trade in today’s coffee industry,” Peter explains. “Coffee farmers still need more information, support, and empowerment so they can have more agency.

“A well-functioning market should be open and well-informed, and industry stakeholders should have multiple avenues through which they can trade goods,” he adds.

Exploring prices and costs at origin

When discussing the prices farmers receive for their coffee, we often hear the terms “farmgate” and “Freight on Board” (or FOB). But what do these terms actually mean?

Farmgate vs. FOB

Essentially, the farmgate price is the money that a farmer actually directly receives, rather than the price paid to traders or mills. The term derives from the amount of money that a producer is paid “at the farm gate” before export fees or additional costs.

It’s important to note that farmgate prices are different from the C price, which is the trading price of arabica on the Intercontinental Exchange (ICE). The C price is largely determined by supply and demand; if coffee supplies fall then the price will increase.

It can be difficult to collect accurate farmgate data because these prices are usually not publicly available, unless traders and roasters publish the information themselves.

FOB price, meanwhile, is the amount of money paid for a full container of coffee which is ready to ship. The price includes what the farmer was paid, plus in-country coffee production expenses such as milling, warehousing, transportation costs, insurance, customs, and other intermediary fees. 

For reference, the 2021 SCTG states that the median global FOB price in the same year for an 87-point coffee was US $3.70/lb, while the median C market price was US $1.42/lb. 

Freight costs

While some roasters directly import coffee themselves, many work with green coffee traders who handle logistics and export. This means that they take a percentage, which generally means that farmers’ final share of the sale price decreases.

Beyond traders’ margins, export, transport, and other freight costs are accounted for in the FOB price. And while the exact prices will differ from country to country, these are all generally significant.

For instance, to move coffee from a farm to a local co-operative, trucking alone can cost at least US $2 per 60kg bag of cherry. Altogether, after post-harvest, in-country transport can cost as much as $4 per bag – representing a significant cost.

Other production costs

Generally speaking, farmers also need to reinvest a significant proportion of their income back into their farm. This can cover anything from new seedlings and carrying out regular seasonal repairs and maintenance to replanting old trees or buying agricultural inputs to maintain or improve yield or quality.

Ultimately, in many cases, as little as 60% of the FOB price is paid to farmers, while the remaining 40% is spent on in-country expenses, as well as intermediaries’ fees and export fees.

Some of these in-country expenses rightly need to be paid to other labourers who work in coffee production, such as pickers and mill workers.

“There are post-farm workers who also need to get paid,” Peter says. “But the much bigger issue over the last 30 to 40 years has been the relationship between FOB and retail prices.”

Ultimately, with most consumers paying between US $12 and US $18 for a retail bag of specialty coffee, it can be difficult to break down exactly how much of the final price of each cup farmers receive. Typically, US specialty coffee shop customers pay between US $4 and US $7 for a single filter coffee.

However, Chad notes that calculating a final percentage will largely depend on how transparent the movement of the coffee is, and how much data is recorded across each step of the supply chain.

“In some cases, [producers aren’t made aware of the quality of their coffee], which means the assessment of quality takes place too far down the supply chain,” he tells me. “In these cases, farmers are paid the C market price, or potentially a lower-end specialty price.

“But if the buyer cups the coffee and scores it higher than the farmer originally thought then it can be sold at a premium,” he adds. “This price mark-up usually doesn’t make it back to the farmer.”

Considering costs for roasters and coffee shops

In order to understand how much of the final price of a cup of coffee farmers receive, we also need to consider upstream costs that contribute to how much is charged for each bag or cup of coffee. This includes roasting.

It’s important to note that most of the value of coffee is added once it is roasted in majority consuming countries, where it is marketed and sold. Roasters and retailers handle this marketing because they have direct connections with major consumer bases, which makes it easier for them to differentiate with branding and packaging, thus equipping them to charge a higher final sale price.

Peter tells me that retail coffee prices are considerably higher than they were some 30 years ago. He says that the Specialty Coffee Retail Price Index (SCRPI), created by Transparent Trade Coffee, found that most North American specialty coffee roasters sell 1lb of roasted beans for between US $18.28 and US $38.99.

However, this final sales price also includes the costs roasters take on. It’s estimated that the costs associated with roasting, packaging, and labour add around US $4 per lb to the retail price.

Furthermore, we need to remember that once roasted, coffee beans lose around 14.7% of their mass. This means that 1lb (around 0.45kg) of green coffee actually leaves a roaster with around 0.85lbs (around 0.39kg) of roasted beans to sell. A standard 60kg bag of green coffee does not automatically translate to 60kg of roasted coffee.

Calculating the final price of a cup of coffee

To break down the retail price of a cup of coffee, let’s use the Specialty Coffee Association standard brew ratio of 1:18 – which means 1 part coffee to 18 parts water. 

To prepare a 16oz (473ml) cup of filter coffee, you would need around 25g of ground coffee, which means 1lb of roasted coffee can make about 18 cups of coffee.

Considering that most specialty coffee roasters sell 1lb of coffee for between US $18 and US $39, this results in a price range of US $1 to US $2.20 per cup.

However, in most specialty coffee shops in the US, consumers pay around US $4 for a filter coffee. This means that coffee shops make a profit of somewhere from US $1.80 to US $3 per cup before staff costs and other overheads.

So what about the final price that farmers receive from a single cup of coffee? According to the International Trade Centre’s Coffee Exporter’s Guide, producers retain around 10% of the retail coffee price. In the examples we’ve used above, this would equate to around US $0.40 per cup.

Despite growing concerns that coffee is becoming more expensive for consumers, Chad believes that they still pay too little for coffee in order for farmers to experience the true value of their product.

Improving price equity across the supply chain

With demand for more sustainable coffee now higher than ever, price equity across the supply chain is becoming an increasingly important topic.

“If farmers can’t afford to produce coffee then they are not making a living income,” Peter says. “And if producers can’t make a living income then the future of the coffee industry is at stake.

“If even 30% of the money that consumers spend on coffee goes back to producing countries, the conversation around living income would be completely different,” he adds.

Chad agrees, saying: “We have to fix the value distribution in the coffee supply chain so that it can also be profitable for producers.”

A key part of this is ensuring that farmers make enough money to sustain not only their businesses, but also their livelihoods. This includes supporting their families and communities, too.

Findings from ongoing SCTG research suggest that during the 2018/19 and 2019/20 harvests in Colombia, less than 5% of specialty coffees which scored between 80 and 83.9 points were traded above the living income price threshold.

Although the solutions to this problem are deeply complex, Chad believes that disseminating knowledge more equally across the supply chain is key. He says that smartphones and social media have been instrumental for this over the last few years.

“With this influx of information [using different forms of technology] and access to different pricing levels, producers are starting to request prices which are commensurate with what they should be receiving,” he explains.

Breaking down the final price each individual supply chain actor receives per cup of coffee is challenging – especially for farmers. Furthermore, information about price transparency remains difficult to access, making it even more of a challenge to find out just how much producers are paid.

However, a push for more transparent, traceable, and sustainable coffee across the board is certainly a sign that things are moving in the right direction. While there is still a huge amount of work to be done, hopefully this progress can indicate that there is a foundation to pay farmers a fair, equitable price for their coffee in the long term.

Enjoyed this? Then read our article on producer perspectives on farmgate prices & technology.

Photo credits: Melina Devoney

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However, as the appreciation of the craft of coffee has grown, technology has also come to play a more important role. Now more than ever, baristas, roasters, producers, and consumers all rely on technology to understand more about the coffee they brew, roast, grow, and drink.

But why has it accelerated at such a fast rate? And where might it end up in the future?

To learn more about how technological development has accelerated in the coffee industry over the past decade, I spoke to three coffee professionals. Read on to learn more.

You may also like our article on exploring AI in coffee roasting.

How has technology changed over the past decade?

In general, over the last two decades, technological development has skyrocketed. In 2000, less than 7% of the global population had regular access to the internet. Just over 20 years on in 2021, Statista estimated that some 4.9 billion people used the internet regularly – representing over 60% of the world’s total population. 

As this has happened, technology specific to the coffee industry has understandably also evolved. This covers everything from new ways of roasting coffee to changes in how we brew it. And ultimately, as the coffee sector has developed, technology has become more important across the supply chain.

Many of these changes have taken place on the business-to-consumer (B2C) front. For example, one of the most effective technological changes has been the implementation of point of sale (POS) systems and digital signage in coffee shops.

D.J. Smith is the Director of Marketing at Just Love Coffee Roasters in Tennessee and Ed Thompson is the company’s Director of Operations. They told me how similar coffee shop technology has helped them to improve efficiency in their locations.

“Most of our coffee shops have screens in the kitchen to help expedite the use of tickets,” they say. “When a certain time limit is reached for the order, the screen flashes, which helps with overall speed. 

“We use screens in the kitchens to improve the accuracy and speed of orders, especially when customers also order coffees, so that everything can be served at the same time.”

Considering the boom in online ordering, co-ordinating the preparation of coffee and food has never been so important. Technology allows baristas and kitchen staff to better work together to ensure orders reach customers quickly while still being expertly prepared.

“From the operations side, the technological advancements in online ordering have been the biggest for us,” D.J. and Ed say.

Online coffee sales have skyrocketed over the past few years, largely thanks to the pandemic. According to research from the National Coffee Association’s The impact of Covid-19 on coffee ecommerce webinar, the annual growth rate of the ecommerce coffee market reached over 38% in 2020.

Has Covid-19 forced a change in coffee technology?

There’s no denying that Covid-19 forced coffee businesses to become more reliant on technology, further accelerating its development in the coffee sector.

According to data from the National Restaurant Association’s 2021 State of the Industry Report, more than 50% of US coffee businesses said they dedicated more of their resources to consumer-facing technology during the pandemic. This included online or in-app ordering, mobile payments, and delivery services.

Demian Estevez is the owner of Mojo Coffee Roasters in New Orleans. 

“The use of technology in the coffee industry was already increasing,” he says. “The pandemic just sped up this process.”

As coffee shops and roasters had to adapt to social distancing measures, health and safety became more of a concern. As a result, many brands became more reliant on digital platforms during the pandemic to stay connected with their customers.

Demian tells me: “During forced closures as a result of the pandemic, we realised that we can emulate the coffee shop experience with our online storefront.

“Making more coffee at home reminded guests of the experiences that coffee shops can provide.”

He adds that social media was a useful way to connect with consumers.

“For Mojo, we found social media was the most effective way to engage with our guests and provide them with updates.” 

Furthermore, Demian adds that technology has facilitated more open discussion between staff members, which he believes improves the overall customer experience.

“Implementing an employee-focused app, like Homebase, made sense for us because our business needs can change day-to-day and even hour-to-hour,” he says. “During the pandemic, or periods of challenging weather (which are common in New Orleans), we can contact our team members quickly and adapt our employee schedule accordingly.

“Communication technologies have been integral to our team,” he adds. “If our team has clear and efficient communication, they then have more time to focus on making coffee.”

A move towards contactless

Although the coffee industry changed temporarily in many ways as a result of Covid-19, some changes are likely here to stay. One such example is the widespread adoption of contactless payment technology.

According to a 2020 SCA x Square Coffee Report, cash transactions declined at the start of the pandemic, mainly because of health and safety.

However, Demian points out that the move towards contactless has continued. 

“Guests continue to use less cash. Contactless payment technology was already implemented in most coffee shops, so the transition was straightforward.”

D.J. and Ed agree that the move towards contactless technology was efficient.

“There has been more emphasis on takeout and online payments, and we experienced an increase in our cashless payments,” they tell me. “It was easy to implement additional changes.

“Toast (our POS system) has a tap function so that customers can pay by placing their card over the reader,” they say. “The technology is customer-facing and customers don’t need to touch the card reader.”

Customer service also turned contactless as a result of Covid-19. In the 2020 SCA x Square Report, the number of coffee shops offering curbside and/or pickup services increased by 521%. This led to an astonishing 5,380% increase in combined sales from curbside and/or pickup services as social distancing measures were maintained.

But in order to implement these new contactless services, coffee shops had to rely on technology even more, generally through using food and beverage order and delivery apps. 

Big Hospitality reported that between May and August 2021, food and beverage delivery app Uber Eats almost doubled the number of new businesses joining its platform, which included coffee shops. 

“Covid-19 got us up to speed with curbside pickups,” say D.J. and Ed. “Previously, we had not considered curbside pickups, but as we were finding ways to deal with the ‘new normal’, technology allowed us to listen and adapt to the emerging needs of staff and customers.”

What about the wider coffee industry?

While this article has so far focused on the increase in technology in coffee shops, roasters and producers have also become more reliant on technology over the past few years.

Roasting

While both the practical skills and knowledge of roasters are essential to roasting high-quality coffee, there has been growing use of automation in the sector throughout the recent years.

More and more roasters are utilising artificial intelligence-driven technology to exert more control over developing roast profiles. AI can detect key stages of roast development, such as first crack, arguably more precisely and consistently than humans can – ultimately improving coffee quality.

One example of this software is Cropster’s First Crack Prediction, which provides a timeframe for when first crack should occur. This allows roasters to make more precise and controlled changes to roasting variables more quickly and effectively.

Production

Coffee farmers have long relied on technology to help in coffee production. Mechanical harvesters were first used in Brazil in the 1960s to assist producers with picking ripe cherries, but there have been further advancements in technology since then.

Unmanned aerial vehicles or drones can also be useful tools for coffee production. As many coffee farmers live in remote and mountainous areas, it’s often difficult to map out farm boundaries on foot or in certain vehicles. Drones can provide farmers with a range of data that may not be accessible otherwise.

The increase in producer-focused mobile apps also provides useful digital tools for coffee farming. Platforms such as Yara’s Coffee Club can keep track of a number of variables, such as nutrient levels in soil and quantities of fertiliser used – helping to improve coffee quality. 

Moreover, recent advancements in AI technology allow producers to understand more about the quality of their beans.

Companies such as Demetria can provide farmers with digital tools that can predict coffee quality, as opposed to farmers solely relying on roasting and cupping coffee. Demetria’s technology uses near infrared sensors to create a “fingerprint” of the coffee, which assesses the levels of different organic compounds in the coffee beans.

How can technology improve sustainability?

Alongside increasing efficiency and consistency, there is also a consensus that technological change can also pave the way for improved sustainability in the industry.

Across the industry, there is a growing demand for more traceable and transparent coffee – people want to know more about where coffee is grown, the person who produced it, and how much they were paid.

Ultimately, technology makes it much more feasible to safely and securely store a range of information from across the supply chain, including how much farmers were paid for their coffee.

But what about bridging the gap between producers and consumers through technology?

As consumers express further interest in knowing more about the origins of coffee, technology can help close this gap and bring them further together.

“There is an interesting dynamic in the coffee industry where customers want to know more about the journey of coffee,” D.J. and Ed explain. “So how do you balance out telling your customers more information? 

“We place coffee information cards on our shelves. Customers can scan a QR code, which takes them to a video to learn more about the coffee.”

Despite being invented in the early 1990s, QR codes became immensely popular during the pandemic as a means to provide more information to consumers for a number of reasons, including price transparency. Between 2018 and 2020, the use of QR codes in the US increased by 94%.

“Additionally, customers don’t always have the opportunity to speak with our roastmaster,” D.J. and Ed add. “By scanning a QR code, customers can hear our roaster talk about the coffee.”

The global coffee industry is undoubtedly reliant on technology, and there’s no signs of this slowing down any time soon. It’s clear that as we move forward, technological change will continue to shape the future of the sector.

But just how it will do so remains to be seen. In recent years, Covid-19 in particular proved to be a disruptive influence which guided technology in a unique way, expediting some changes which were already gradually occurring.

Whether or not longer-term ripple effects from the pandemic will continue to guide the technology we use to grow, roast, and brew coffee is as yet unknown.

Enjoyed this? Then read our article on how automation is shaping the coffee industry.

Photo credits: Just Love Coffee, Mojo Coffee Roasters 

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However, along with this rise in popularity, we’re also seeing consumer awareness around environmental sustainability in the wider coffee industry grow.

In 2021, Deloitte released a 2021 sustainability report which indicated a wider shift towards more sustainable consumer behaviour around the world. The findings showed that over 61% of respondents claimed they reduced their usage of single-serve products, as well as nearly 1 in 3 consumers stating they stopped purchasing from brands perceived to be “unethical”.

It’s fair to say that coffee capsules have caused significant environmental concern since entering the market in the 1990s. Despite this, over 400 Nespresso capsules are estimated to be consumed every second around the world – potentially creating vast amounts of waste.

But can this be prevented? To find out, I spoke to two professionals in the coffee capsule market segment. Read on to learn more.

You may also like our article on a brief history of coffee pods.

The main issues

Statista reports that in 2020, 40% of US households owned a single-serve brewing system, and this number is believed to have increased over the course of the pandemic.

But despite their immense popularity, coffee capsules have been the focus of many sustainability concerns over the past decade. Research from a UK coffee brand claims that out of the 39,000 capsules produced globally every minute, 29,000 go to landfill.

The two most common materials used to manufacture capsules include aluminium and plastic. And although aluminium is infinitely recyclable, the number of capsules sent to landfill doesn’t appear to be significantly decreasing.

Reinhard Trumme is the Authorised Officer for Golden Compound: a company which uses sunflower seed hulls to produce recyclable and home-compostable coffee capsules.

“Aluminium capsules have a bad public image for producing high volumes of waste, while plastic capsules are generally not recyclable,” he explains.

This has ultimately led more brands producing recyclable, compostable, and reusable capsules to avoid contributing to these rising levels of waste. 

But Reinhard tells me that problems also arise with more sustainable alternatives, even when they are seemingly correctly disposed of.

“Few bio-based capsules actually degrade completely in industrial composting plants,” he explains. 

This is typically because most recycling facilities don’t have the capacity to correctly dispose of capsules – meaning they will then likely be sent to landfill instead.

Saul Lakofski is the owner and Director of Coffeecaps: an Australian manufacturer of Nespresso-compatible capsules. He explains why compostable and biodegradable capsules going to landfill is still a major sustainability issue.

“If capsules are disposed of in regular waste bins then they end up going to landfill and will not break down; they act similarly to plastic.”

Under EU law, industrial-compostable materials are required to completely break down by six months maximum, but this can only occur under the optimal conditions. 

If biodegradable and compostable capsules are sent to landfill, they are often deprived of oxygen, heat, and airflow – meaning they could remain intact for years.

Consumer perceptions of capsules

Even though there are a number of environmental issues associated with capsules, they still remain incredibly popular among consumers. 

In a 2019 survey, Wired revealed that one-third of UK households owned a capsule machine. Across all of Western Europe, it’s estimated that capsules account for a staggering one-third of total coffee sales, according to BBIA.

However, in recent years, consumers’ opinions have started to become more conflicted. This is grounded in environmental sustainability issues, but balanced by the sheer convenience they offer, as well as the continually improving quality of the coffee contained in them.

A 2019 poll from online food and beverage publication The Grocer found that 10% of British consumers believed capsules were bad for the environment. However, to drive home this conflict of interest, 22% of respondents in the same poll said they owned a capsule machine.

Reinhard believes that certain demographics are more likely to disapprove of coffee capsules and pods. 

“Younger people are particularly critical of capsules,” he explains. 

In 2021, Forbes reported that most Generation Z consumers (people born after 1997) are willing to spend 10% more on sustainable products and brands. A similar trend is emerging with millennials.

Ultimately, this may mean that younger demographics are less likely to purchase capsules as a result of their greater focus on sustainability.

These growing concerns over capsule production have also led to several bans, most notably in Hamburg in 2019. The city’s council implemented a ban on purchasing “polluting” and “portioned packaging” products (which includes capsules).

However, some argue that the environmental issues with coffee capsules mostly lie with a lack of consumer knowledge around how to dispose of them. 

“The vast majority of capsule consumers actually do not know how to correctly dispose of them,” Saul says. “They also do not know which materials the capsules are made of. 

“Nespresso and other aluminium capsules can be recycled through dedicated return programmes, but many capsules still end up in landfill.”

In 2017, Nespresso trialled a six-month aluminium capsule collection scheme with London’s Royal Borough of Kensington and Chelsea. Local council recycling services collected the used capsules and transported them to Nespresso recycling facilities.

Alongside this trial, Nespresso’s ongoing aluminium recycling scheme is now active in 53 countries with over 100,000 drop off locations. The company invests CHF 40 million a year (over US $43.2 million) in the programme, with a global recycling rate of 30% as of 2020.

Meanwhile, some believe that the consumer awareness around proper capsule disposal could be improved by better instructions on packaging. 

In early January 2022, Keurig Canada paid CA $3 million (US $2.4 million) in a lawsuit over false and misleading claims made to consumers about recycling its K-Cup capsules – shifting the blame towards manufacturers, rather than consumers.

Are capsules becoming more sustainable?

Even with the obvious environmental concerns, steady progress is being made in terms of producing more sustainable capsules. Some even contend that they’re already a more sustainable form of drinking coffee, in spite of the high volumes of waste they are often associated with. 

For instance, in 2019, the University of Bath conducted a study on the environmental impact of coffee consumption, looking at every stage of the supply chain (including disposal). The results concluded that capsules had the second lowest environmental impact levels, while espresso had the highest.

However, the main reason for this conclusion was that less coffee is used in a single capsule, compared to one cup of filter coffee or one espresso. 

Ultimately, this means that per capsule, less water, fertiliser, and other resources are used to produce the coffee – leading to lower greenhouse gas emissions overall.

Environmental consulting agency Quantis also found that capsule machines used less energy overall than filter or espresso machines.

“Capsule machines with an auto switch-off mode have a lower environmental impact than larger espresso machines in cafés, for instance,” Saul adds.

However, the wider industry focus is on implementing ways to reduce capsule waste, rather than the production of capsules. Reinhard explains how Golden Compound capsules are produced using more organic materials in order to make waste disposable more sustainable.

“The raw material of Golden Compound capsules is mostly bio-based and contains a high proportion of sunflower seed shells,” he says. “This is a byproduct, which falls off when harvesting sunflower seeds. We then produce capsules using an injection moulding process.”

Saul reiterates that reducing capsule waste is a high priority for many coffee companies.

“Coffeecaps works with many roasters who send us their coffee, and then we grind the coffee and fill the capsules for them,” he tells me. “The vast majority of these roasters take sustainability seriously – they want a circular solution.”

What does the future hold for capsule sustainability?

It’s evident that global capsule consumption rates aren’t slowing down, so how can we reduce waste in the long term? 

“Consumers want to do the right thing: manufacturers just need to give them the opportunity and means to do so, mainly through recycling and return programmes,” Saul tells me.

“Even compostable capsules need a dedicated return programme, if they are industrial-compostable,” he adds. “This means they need to go to an industrial composting facility.

“Coffeecaps has teamed up with Terracycle to provide a programme where consumers can return our industrial-compostable capsules for free composting.”

However, Reinhard believes that wider changes to infrastructure are needed in order to achieve a more circular model.

He says: “A uniform approach to improving recycling and compostability rates is important.

“Capsules should meet at least two certifications – OK compost-industrial and OK compost-home – so that consumers can be sure that the capsules will fully biodegrade.”

TÜV Austria’s OK compost certifications are widely recognised as one of the leading certifications for compostable products, alongside the Seedling logo. 

For capsule packaging to be classified as “compostable”, it must break down into non-toxic, organic compounds which benefit the soil. Alternatively, biodegradable capsules must cause no pollution to their surrounding environment once they decompose.

“We are the only capsule company in Australia which is certified by the Australian Bioplastics Association,” Saul tells me. “Our roaster partners can use the Seedling logo on their packaging.

“We will be manufacturing the first certified home compostable capsules this year.”

However, in order to see the full effects of more sustainable capsule materials, recycling and composting facilities need to be able to correctly dispose of them. 

Currently, bioplastics and compostable plastics take too long to degrade at standard composting facilities, and are therefore not widely accepted. As these materials are generally tested in laboratories under strictly controlled conditions, they take significantly longer to break down when temperature, airflow, and oxygen levels are not regulated.

The environmental problems associated with capsules are bigger than the coffee industry. In order to improve capsule sustainability, significant and widespread changes will be necessary to make it easier to dispose of them responsibly.

While this is not a simple task, the more that the organisations responsible instigate these changes – namely capsule manufacturers and local government authorities – the more positive the outcome will be.

Enjoyed this? Then read our article on single-serve coffee bags.

Photo credits: Coffee Caps

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However, with sustainability higher up the agenda than ever for the coffee sector, there are understandably concerns about the sheer volume of milk and coffee that is wasted at each latte art throwdown.

Recognising the popularity of these events and the need to be more sustainable, zero-waste latte art throwdowns have become more popular in recent years. But how are they different? And how do their hosts cut down the waste? To learn more, I spoke to two latte art champions. Read on to find out what they said.

You may also like our article on creating a coffee shop food menu that minimises waste.

What is a latte art throwdown?

Gregory Raymond is Head Barista and Events Manager at Carasso in Geneva. He is also the 2019 and 2020 Swiss Latte Art champion.

He says: “In addition to the national championships, we have small friendly competitions between baristas to have fun and share latte art.”

Although both national and international latte competitions have strict rules for competitors, throwdowns tend to have more relaxed guidelines. 

They are usually hosted by coffee shops, who can invite both the public and local coffee professionals to take part – although experience pouring latte art is preferred.

“As many people can compete as possible,” Gregory says. However, generally, an even number of competitors is favourable, as participants usually compete in “knockout” rounds.

Each throwdown host can create its own rules for the competition, but the main aim of a throwdown is to produce the most visually-appealing latte art. For example, The New Zealand Barista Guild has a set of latte art throwdown judging guidelines based on symmetry, colour contrast, use of space in the cup, and overall visual appeal.

Milk should be free-poured, and ideally, there should be no spilling down the side of the cup. Competitors are provided with both milk and espresso, and will usually have the espresso shots extracted for them. This allows them to focus solely on steaming and pouring milk.

The size of each drink is around 260ml (8.8oz), which is the typical size of a small latte in most specialty cafés. This size provides more experienced participants with enough space in the cup to pour high quality latte art.

Competitors will either be told to pour a specific latte art pattern, or can pour a pattern of their choice. Common designs include a heart, rosetta, or tulip.

Each round is timed, typically giving competitors a few minutes to prepare their milk and pour latte art for one beverage. Once poured, the beverage is presented to a panel of judges who decide on a winner for each round.

Producing coffee and milk waste

The global coffee supply chain produces some 23 million tons of waste every year. In coffee shops, this includes leftover steamed milk, spent coffee grounds, and incorrectly-extracted espresso. 

This has a cost for businesses, too. Scott Rao estimates that every day, each café in the US wastes around US $15 of milk by pouring too much into pitchers. 

Even if baristas pour 30ml (1oz) extra milk into the pitcher for each beverage they make, this could translate to annual losses of around US $700 on milk waste alone.

However, at latte art throwdowns, it’s not only leftover milk and coffee grounds that are classed as waste. The beverages that competitors produce are also technically waste, as they are not being purchased by customers. 

“It takes at least 300ml of milk per participant per round, including the shots of espresso,” Gregory explains. “If you have about 20 participants, it creates a significant amount of waste.”

Furthermore, for less-experienced throwdown competitors, it can be difficult to assess how much milk is required for each beverage, especially without measurement indicators in jugs. This can lead to more leftover milk at the end of each round, increasing waste significantly.

Manuela Fensore is the co-founder of Barlady Café and Academy, and the 2019 World Latte Art champion. She believes that good waste management is necessary for throwdowns.

“Event organisers can track milk and coffee usage based on the number of event attendees,” Manuela says. 

However, as some throwdowns have no real limit on the number of participants, the number of beverages that are produced can in theory be immense. This, in turn, leads to huge amounts of wasted coffee and milk.

Why do we need to reduce waste?

Around the world, it’s estimated that food waste has an annual global carbon footprint of around 3.3 billion tonnes of CO2.carbon dioxide. 

This is largely because most food waste ends up in landfills. In this anaerobic environment, it cannot biodegrade under optimal conditions, and produces significantly more greenhouse gas emissions than it otherwise would.

Furthermore, while milk and espresso can be poured away, coffee grounds are solid food waste. Latte art throwdowns often include 20 or more participants competing in several rounds, so there can be up to several kilograms of spent coffee grounds at the end of the competition.

Around the world, a number of different initiatives are working to create a circular economy that reuses spent coffee grounds. For instance, bio-bean collects coffee grounds from local cafés to create biofuel, turning them into barbecue coals and biomass pellets. 

Coffee grounds can also be used as compost or plant food; GroCycle, for example, reuses coffee waste to grow mushrooms that can be commercially sold. Finally, in The @wastingcoffee Guide to Not Wasting Coffee, author Umeko Motoyoshi encourages cafés to donate coffee grounds to any similar local initiatives.

Beyond coffee waste, there is also the issue of the milk to contend with. Cow’s milk is typically used at throwdowns as it generally performs better for latte art than plant-based alternatives. 

However, one litre of dairy milk produces around 3.2kg of greenhouse gas emissions – compared to 1kg for soy, or 0.7kg for almond. Last year, it was estimated that the largest dairy companies in the world emit the same levels of greenhouse gases as the entire population of the UK.

In response to concerns over using dairy at throwdowns, more plant-based events have been organised in recent years. For instance, at the 2015 New York Coffee Festival, Pacific Foods hosted a throwdown using only coconut and almond milks to promote more environmentally-friendly coffee events. 

Hosting a zero-waste latte art throwdown

Firstly, some events have in recent years started to reuse the beverages that competitors prepare after the event. Once cooled, lattes can then be used to create mocktails or cocktails for attendees or spectators, for instance.

“I participated in an excellent zero waste throwdown as a judge at MAME,” Gregory notes. “All cups were reworked and served as cocktails.”

Oatly has even hosted a number of international zero-waste latte art throwdowns, where competitors’ oat milk beverages are made into beverages for spectators and Umeko also points out in their book that beverages prepared during throwdowns can even then be used in cooking or baking.

But, are there any ways to completely eliminate the use of coffee and milk at latte art throwdowns?

“You can actually replace milk and coffee with alternative products,” Manuela tells me. “Coffee is usually replaced with food colouring; more recently, soap products have been added to water to create the same effect as milk foam.”

One of these products is BCB, Gregory tells me. “It is a liquid which, when added to water, transforms to become [the] equivalent [of] steamed milk,” he explains.

This BCB-water mixture can then be steamed using an espresso machine. One 30ml bottle of BCB can replace up to 20 litres of milk, and will still produce high-quality latte art with every cup. 

Manuela also notes that high-level training can also help competitors reduce waste at throwdowns^.

“One thing you can do is keep the wrist trained with milk jug exercises,” Manuela explains. “My partner and I, Carmen Clemente, created the ‘Gym Latte Art’, which helps the latte artist with muscle memory.

“It is a programme that trains the muscles that are used while pouring latte art. We have noticed that training these muscles can actually reduce any waste of milk and coffee.”

Alongside training, using better equipment can also minimise waste. Milk jugs used for competitions tend to have smaller and more precise spouts, which allow baristas to pour with more control. 

Using these jugs, as well as those with measurement indicators for more precise dosing, can help competitors pour the optimal levels of milk – and waste less.

Although organising coffee events can be challenging, ensuring events remain sustainable is essential in today’s coffee sector.

Wasteless latte art throwdowns can inspire coffee communities to seek out creative ways to be sustainable, and they can even help baristas to be less wasteful during their day-to-day work. 

If competitors seek to use as little milk and coffee as possible at throwdowns, they can translate this focus on sustainability to their day-to-day job role. In turn, this helps minimise a coffee shop’s environmental impact, and can save the café more money in the medium and long term.

Enjoyed this? Then read our article on how to organise a latte art throwdown in seven steps.

Photo credits: Adrian Huber, Gregory Raymond

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In addition, the recently published IPCC report found that if greenhouse gas (GHG) emissions remain at the current level, average global temperatures are set to increase by 1.5°C by 2040. This could mean an increase in erratic weather patterns in coffee producing regions, including droughts and flooding. 

It’s clear that a move towards environmental sustainability should be a priority for all coffee sector stakeholders. However, at farm level, there are a number of techniques producers can implement. One of these is known as “carbon insetting”. To learn more about it, I spoke to two coffee professionals from Caravela Coffee. Read on to find out what they told me.

You may also like our article on carbon-negative coffee.

Insetting vs offsetting

To help mitigate the impact of climate change, practices like carbon offsetting are becoming increasingly popular with businesses around the world. The coffee sector is no exception.

Carbon offsetting is a practice that businesses undertake to balance their carbon footprint. Brands invest in environmental initiatives outside of their own operations, such as tree planting projects, for instance.

While investment in offsetting does support a business to offset its own carbon emissions, it does so through other companies’ supply chains. This means that brands can, in theory, pay to offset their emissions.

Alieth Polo is the Regional Director of Sustainability and PECA at Caravela. She defines the main difference between carbon insetting and offsetting.

“The difference is where you choose to make offsets,” Alieth explains. “Insetting allows you to make offsets within your supply chain, but offsetting allows you to make offsets anywhere.”

In essence, by practising carbon insetting rather than carbon offsetting, businesses can invest in making their own supply chain more sustainable – rather than simply paying to achieve it elsewhere.

Marisabel Vasquez is the Marketing Manager for Caravela. She says: “Carbon insetting means investing in projects or sustainability initiatives to capture CO2 within the same supply chain.”

The International Carbon Reduction and Offset Alliance first coined the term “carbon insetting”. It defined it as an up or downstream direct investment in a business’ own supply chain with the intention of reducing greenhouse gas emissions.

However, before carrying out any form of carbon insetting, a company must first calculate the carbon emissions of its entire supply chain. This can be a difficult task.

Marisabel says: “A company first calculates and measures [the] carbon footprint of the operation and its whole supply chain, and then gives back to the environment by investing in sustainable projects.

“These projects might be planting trees for carbon sequestration or investing in the protection and conservation of flora and fauna, among other things.”

The benefits of carbon insetting

Although there are several positives to carbon offsetting, insetting is inherently more sustainable in the long term.

“Any actions that a company takes to fight climate change is important and necessary,” Marisabel says. “However, when you practise carbon insetting, you are doing more than just [paying to offset your footprint].

“For instance, in coffee, when we ‘inset’, we directly invest back into the coffee farms that are affected by the impact of climate change.”

This is especially important, as much of the inflated cost of environmentally friendly coffee production is passed onto farmers. While this higher cost of production might translate to “greener” coffee, it can also be less financially sustainable for the producer.

Marisabel says that it’s important to communicate properly when implementing new sustainable practices at origin.

“Training for farmers is key if you’re going to achieve better farming practices,” she says. “You also need constant feedback on the results from the producers, to make sure that quality is high, and that the social, technical, and environmental practices work for them.

“Ultimately, insetting means much more than paying to make up for your footprint. It means giving back to the land and producers that provide us with the best coffee.”

By implementing more sustainable and thoughtful operations across the board, carbon insetting could even support coffee companies to become carbon-neutral..

“You can see the impact first-hand, and it gives you direct [control] of your investments and projects,” she says. “In other words, you’re giving back to the same land and people who give us so much.”

These kinds of investments in sustainable coffee production are becoming increasingly vital, too. Scientists predict that as much as 50% of arabica-growing land could become unsuitable for coffee production by 2050.

Marisabel says that at its simplest level, carbon insetting is about companies accepting the direct impacts of their operations on the environment.

“Companies that practise carbon insetting take direct responsibility for the carbon emissions and environmental footprint of their own operations,” she says. “It’s also an opportunity to add value to the supply chain and improve the quality of the product.”

What does carbon insetting lay the foundations for?

The majority of carbon insetting schemes focus on the production end of the coffee supply chain. Specific actions include investing in shade-grown coffee, planting more trees, using organic farming methods, and intercropping. 

But how can we support farmers in implementing these techniques?

Alieth explains that training and education is a pillar of “all-round long-term support for coffee farmers”.

She says: “PECA [is Caravela’s Grower Education programme]. Its main objective is to continuously train coffee growers in sustainable practices to improve productivity and quality.”

The PECA programme operates with a team of 40 members working on the ground in seven different countries. Between them, they train more than 2,000 coffee farmers every year.

“Our programme has four important areas of focus: productivity and efficiency, cup quality, sustainability, and farm management,” Alieth explains

However, beyond training, producers often need support at the first stage of carbon insetting: assessing their emissions and mapping their carbon footprint.

“In 2020, with the support of Solidaridad, Caravela did a pilot test in Planadas, Colombia to measure the carbon footprint of more than 50 coffee farms, both conventional and organic,” Marisabel says.

“The data gathered has helped us understand what the opportunities and the challenges are for farmers looking to become carbon-neutral or carbon-negative.”

Once farmers have this information, they can use a number of specific farming practices to reduce their footprint.

“Soil conservation, shade tree growth, proper water treatment, and fertilisation plans are just some of the topics we educate producers in,” Marisabel says.

She also encourages the use of natural and organic inputs and control products, noting that these can be more sustainable.

“We implement physical and cultural pest controls before applying pesticides,” she says. “When that is not sufficient, we promote the use of sustainable pesticides that have been certified by food safety organisations. 

“We also promote forest conservation to allow for more biodiversity and microclimates.”

Becoming more sustainable in the long term

Marisabel says: “Climate change is one of the main challenges that coffee growers face around the world. 

“Evidence of the effects of global warming can already be seen in coffee growing regions: excessive rains or droughts, extreme temperatures, and shifting growing seasons.”

Unpredictable and volatile weather patterns can lead to smaller or less consistent coffee harvests, causing yields to fall and affecting individual farmers’ livelihoods.

“If we want coffee to continue existing for years to come, we must support the sustainability of the product,” Marisabel tells me. “This isn’t just in a social and economic sense, but also an environmental one.”

Pushing to become carbon neutral is one way in which coffee businesses across the board can drive environmental sustainability. 

She says: “By working alongside One Carbon World – a UK NGO that is part of the UN’s Climate Neutral Now initiative – our team measured, verified, and offset 100% of Caravela’s 2020 carbon emissions. This made us the world’s first carbon neutral-certified green coffee trading company.

“Following this, we aim to have every kilogram of green coffee we purchase certified as carbon neutral by 2025.”

How can carbon insetting benefit the wider supply chain?

Producers are arguably the most vulnerable actors in the coffee supply chain as far as climate change is concerned. 

This is because the extreme and disruptive weather patterns which have been linked with climate change occur most frequently in equatorial regions – which is also where most of the world’s coffee is produced.

“If we do not take action now, we may not have coffee in the areas where it is currently produced,” Alieth says. “Climate change causes weather patterns to change, leading to more severe pest and disease attacks and reduced productivity.

“This leads to further [issues] in areas where coffee can be planted, as producers cut down trees and compromise existing ecosystems to replant their crops.”

Coffee farmers are not the only supply chain actors at risk, however, but Alieth notes that production is the “first step” in improving the supply chain.

“It is necessary and imperative to take action now,” she says. “As a part of the supply chain, we understand the responsibility and need to promote climate-smart and sustainable agricultural practices, starting with coffee farmers.”

Marisabel emphasises the importance of the industry working as a collective towards carbon-neutral or even carbon-negative coffee.

“However, to be able to have a greater impact on the supply chain, we cannot do this by ourselves,” she says. “We need the support of coffee roasters and consumers to generate awareness about the main challenges, and invest in environmentally friendly supply chains.

“To generate awareness among coffee roasters, we have even started printing the carbon footprint of the green coffee of every origin in our coffee bags.”

But it’s not just industry stakeholders involved. Consumer interest in sustainable coffee is growing, too. Research suggests that as many as 41% of millennials are willing to invest in sustainable products, showing that the demand for carbon-neutral coffee is certainly there.

Across the board, major coffee companies have responded. Brands like Starbucks, illycaffé, Lavazza, and Nespresso have all announced targets to become carbon-neutral or carbon-negative in the next decade. 

Among other things, they have outlined a move to reduce greenhouse gas emissions from coffee farms, shipping, roasteries, cafés, and consumer products – encompassing the entirety of the coffee supply chain.

Any sustainable investment in the coffee supply chain is a step towards mitigating the impact of climate change. However, carbon insetting is a great example of how a company can make a direct effort to become more sustainable, rather than offsetting their footprint with carbon credits.

By focusing on reducing or eliminating their carbon footprint, coffee businesses can help to secure a viable future for the industry.

Enjoyed this? Then read our article on minimising the carbon footprint of organic coffee production.

Photo credits: Caravela Coffee

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The coffee industry is no exception. As each day passes, it faces a growing web of environmental, social, and economic challenges that are putting the livelihoods of many and the future of the sector at risk. Enter “sustainability”: a way to spare the environment and reward stakeholders fairly, all the while creating a durable, thriving coffee sector.

But what does it really mean? And how can we become sustainable as an industry? To learn more, I spoke to Olivier Laboulle from Louis Dreyfus Company (LDC), Mario Cerrutti from Lavazza, and Dr. Martina Bozzola from Zurich University of Applied Sciences and Queen’s University Belfast. Read on to find out what they told me.

You might also like our guide to green coffee auctions.

Defining sustainability

Before we can discuss the why and how of sustainability, it is crucial to first pin down its true meaning. The most frequently quoted definition is from Our Common Future, also known as the Brundtland Report.

The report says: “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

While this summarises the essence of the word and its objectives, it remains vague. Sustainability is a concept that can mean different things to different people. So, I asked each of my three interviewees what it means to them. 

Olivier Laboulle is the Global Head of Sustainability for Coffee at Louis Dreyfus Company. He sees sustainability as a model of production and consumption that is financially profitable for all value chain participants, without negatively impacting people or the planet. 

“In agriculture, and coffee in particular, we have an opportunity to go beyond preventing negative impacts and actually repair damaged ecosystems,” Olivier says. “Imagine if each cup of coffee consumed around the world was actively contributing to the fight against climate change, for example.”

For Mario Cerrutti, Head of Sustainability at Lavazza, the word carries a weight of responsibility. “We need to be careful about creating any possible confusion,” he says. “When we tell consumers something is sustainable, what does it mean? We need to be clear about that and how we are achieving it.”

Finally, Dr. Martina Bozzola is an environmental economist at the Zurich University of Applied Sciences and Queen’s University Belfast. She is also a partner of the International Trade Centre’s Alliances for Action programme, as an expert in livelihoods and sustainability.

“To me, the first thing that comes to mind is the long run; the capacity to make a supply chain that can last,” she says. “It boils down to consistently engaging all three pillars of sustainability: social, environmental and economic.”

For example, if you carry out a project to maximise profit and use cheap production methods, you will most likely trade off by harming the environment and/or exploiting workers. This will be categorically unsustainable.

The gradual path to reforming a supply chain

Concerns about socioeconomic disparities and harmful environmental consequences in coffee production are not new. In the 20th century, the sector embraced a certain level of environmental sustainability through organic certification; ethical trade practices soon followed with the adoption of Fairtrade certification. 

This, in turn, has spurred the creation of other certification labels oriented towards sustainability through the 21st century.

Olivier tells me about the sustainability context in which LDC operates, looking first at when the company started trading coffee in Brazil in 1989.

“At the time, there was less consumer awareness about sustainability,” he explains. “The Rainforest Alliance had only just been founded in the US and coffee sustainability standards were relatively niche. It was mostly confined to a small number of devoted, activist consumers. 

“Today, sustainability is a minimum standard. It is estimated that more than a quarter of all coffee worldwide is produced according to a certification.”

While certifications can carry a host of issues, they do mark a formal step towards a global, collective push for more sustainable supply chains.

Mario recognises the positive change that has taken place over the years. However, he remains wary of issues that have persisted over time, despite stakeholders’ efforts. 

He points to continuous issues like low producer compensation, a lack of a living wage, and long-lasting difficulty in building knowledge and raising awareness about quality and socioenvironmental issues. 

“Climate change, pests, and diseases have increased,” he adds. “The suitable land adapted to production is decreasing, the generational issue is deepening, and the impact of unsustainable coffee production on our natural resources is problematic. 

“New challenges are not minor or less concerning than in the past, and neither should be our resolve to address them.”

Is there profit in sustainability?

Consumers are holding brands increasingly accountable for sustainability and fair trade as public awareness of these topics has shot up in recent years. This is thanks in no small part to social media and online platforms. This is driving change across the supply chain, as demand helps drive more respect for both farmers and the environment. 

But does it mean that brands can be simultaneously profitable and sustainable?

In recent years, we’ve seen that brands and manufacturers have identified sustainability as a form of marketing and a powerful means of product differentiation. This enabled them to promote sustainability and fulfil their corporate social responsibility objectives while also remaining competitive. 

Olivier says that going forward, companies who are unable to deliver on roasters’ sustainability commitments will be edged out. He notes that LDC is “proud to be part of this positive change in our industry”, and says that it will “benefit current and future generations of coffee growers, merchants, roasters, and consumers”.

For Mario, being sustainable is becoming a real competitive asset. But he notes that this change is “both good and bad”.

“The more competition there is, the more incentives there are to greenwash and mislead consumers with vague information,” he says.

He highlights the importance of leveling the playing field with a serious approach to sustainability and remembering the end goal: impact on people. 

“If you start out with competition and profit as your incentive or intention, it will be a disaster,” he says. “If nobody cares, why should people commit?”

Is a shift from voluntary to mandatory due diligence a good thing?

For a while, supply chain sustainability has mostly been driven by consumer demand and voluntary standards. However, going forward, mandatory due diligence is likely to become more widespread. But is this a good thing?

On the one hand, it could help to mainstream sustainability across the sector.

“Having legislators set standards is helpful,” Olivier says. “It creates a level playing field and ensures all stakeholders are pulling on the same rope.”

For instance, in the EU, there has been a long-term debate around voluntary and mandatory due diligence rules. Companies that have implemented modern sustainability practices are increasingly calling for legislation, arguing that competitors should not get away with being unsustainable.

However, today, it’s clear that the coffee value chains supplying Europe will increasingly be influenced by the European Green Deal.

This is a growth strategy aimed at transforming the EU into a modern, resource-efficient, and competitive economy. It aims to create an inclusive, competitive, and environmentally friendly future for Europe through targeted strategies and mandatory due diligence. 

Ultimately, though, these new regulations will have both positive and negative impacts on the producer community. Martina stresses that accompanying measures will be essential for the new legislation to work.

“On one hand it’s great to see that there is serious commitment at policy level to honour the commitment we took at the Paris Agreement,” she says.

“On the other, mandatory due diligence and increased transparency and requirements inevitably generate higher expectations for producers. Technical assistance and capacity building will be key to support this transformation.”

While Mario supports the concept of mandatory due diligence, he believes that consumer choices will be a far more powerful catalyst for change. 

“A compulsory method can exclude the involvement of actors and a bottom-up approach,” he says. “It’s better for people to truly understand why one way is better than another. An educated consumer can make an incredible difference and hold companies accountable.”

Collaboration and a collective push for systemic change

There is a growing realisation that the modern world is becoming increasingly collaborative. Working separately on single issues or value chain levels will not achieve an effective transformation. Public-private partnerships, alliances between supply chain operators, and policy will all be instrumental in driving the coffee industry forward towards widespread change.

Olivier is optimistic. He says: “If the actions of each supply chain link are responsible – as when regulators set new policies, or consumers shift their purchasing behaviour, or roasters make sustainability-related commitments – then we enter a virtuous cycle.”

While this sounds great in theory, it requires hard work and dedication in practice. Martina explains that partnerships do not happen spontaneously. Engaging producers, for example, requires a raising of awareness and an effort to share technology and resources. 

“You can’t ask a producer to adopt dynamic agroforestry practices if there is no capacity to back it up,” she says. “Where do they access the seedlings? How do they implement it? How do they profit from it? People need an incentive to embrace sustainability.”

She also notes that the role of the public sector is important. “You can’t implement measures without solid foundations,” she says. “You need healthy, well-functioning institutions that can carry the drive for sustainability and support implementation.”

Tomorrow’s supply chain: What’s next?

I asked my interviewees how they see the future of the coffee sector, and how sustainable they think it will be. 

Firstly, Olivier is confident that key industry participants have a clear and concrete roadmap for shaping a sustainable future. 

“The European Union and major roasters pledged to cut carbon emissions in half by 2030, due diligence laws are being passed, and consumer-oriented companies have committed to 100% responsibly-sourced coffee.”

Martina says that she thinks sustainable practices will become the norm. “They will no longer be a niche, but a requirement and a consumer expectation,” she says. 

However, she warns of the need for an inclusive conversation and collaborative action on sustainability that extends to everyone.

“We are seeing a shift,” she explains. “Some producer countries are becoming consumer countries, and we have emerging markets in East Asia where consumption is rising. 

“What are the trends there? This needs to be monitored and discussed as new markets open up and grow.” 

Finally, for Mario, the consumer’s right to products’ traceable environmental and socioeconomic information will be of major importance. 

“Things like the characteristics of the growing area and of the growers’ conditions will be increasingly necessary,” he says. He says that Lavazza has a partnership with the Slow Food Coffee Coalition to help build consumer awareness. “The manifesto of the Coffee Coalition is to create the obligation to learn and know and ask.”

Sustained efforts and new, more sustainable practices across the supply chain can help mitigate the challenges the global coffee sector faces.

Mandatory legislation to regulate the sector is a move that demonstrates commitment to sustainable goals. However, it is a tool, not a solution – and one that requires careful use. 

“Finding a balance between establishing minimum requirements while not over-prescribing will be key,” Olivier concludes.

We cannot order people to be efficient or ethical. But as a collective, we can improve understanding, knowledge, and ultimately create incentives to contribute to a fairer and more sustainable coffee supply chain.

Enjoyed this? Then read this article on the environmental impact of coffee roasting.

Photo credits: Lavazza, LDC, Martina Bozzola, Unsplash

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