OUR SUSTAINABILITY REPORT 2017/2018 - Löfbergs
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OUR SUSTAINABILITY REPORT 2017/2018
CONTENTS
FOREWORD 4
Comments from CEO and Chair 4
Business highlights 2017/2018 5
ABOUT US 7
Meet the Löfbergs Coffee Group 8
SUSTAINABILITY AT CORE 13
Sustainability is the core of our business 14
Our sustainability story from 1906 17
Great results and ambitious goals 18
Key responsibilities and contributions 20
to Agenda 2030 and the global goals
SOURCING 22
Farming the coffee of the future 23
Coffee is grown in high risk countries 28
More than coffee 30
PROCESSING 31
Towards 100% renewable resources 32
CUSTOMERS 37
Sustainable offers and consumption 38
CO-WORKERS 43
Committed and proud people 44
ABOUT THIS REPORT 47
About our sustainability report 48
GRI Index 50
LÖFBERGS COFFEE GRO UP S U S TA I N A B I L I T Y R E P O R T 3 OF 52
FO R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
COMMENTS FROM CEO AND CHAIR
More certified coffee,
supporting more coffee
farmers, a higher share
of renewable energy, new
climate-smarter packaging
and initiatives for greater
equality. A lot is happening
in terms of sustainability
within Löfbergs Coffee
Group. Kathrine Löfberg,
chairman of the board,
and Lars Appelqvist, CEO,
talk about challenges and
oppurtunities.
S U S TA I N A B I L I T Y R E P O R T 4 OF 52
FO R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
C O M M E N T S F RO M C EO A N D C H A I R
– Climate change and fewer young people seeing And this resulted in an organizational change? BUSINESS HIGHLIGHTS – 17/ 18
a future in coffee farming are still the two biggest - That is right. We are making major investments
challenges in our industry, and something that we work in the rapidly growing Ready To segment and formed
with in different ways. It is important to encourage the a whole new business area with focus on On the Go Started a NEW BUSINESS AREA within Ready To
transition to sustainable farming methods. That is what products. We are launching a number of natural,
we do through certifications and our own development healthy and tasty products that respond well with 56 MILLION
projects in the producing countries. But also through the new consumption patterns, not least among younger SEK in premiums
Next Generation Coffee initiative, where we are giving conscious consumers with focus on well-being and to the Fairtrade
the next generation of coffee farmers the tools and hope health, says Lars Appelqvist. cooperatives we
to meet the future, says Kathrine Löfberg. buy our
Exciting, but a lot of other things happened Started preproduction of PACKAGING coffee
The green coffee prices have fallen to extremely low in the organization this year? material from RENEWABLE sources from.
levels this year and effect coffee farmers as well as - Yes, indeed. We established a subsidiary in
Löfbergs Coffee Group? Canada, our two British companies moved in to new Acquired the VEGAN, ORGANIC & RAW
– Yes, it is probably the one external factor that premises together and we are pushing the development snack company Superbonobo
affects us and the industry the most. It is not sustainable within sustainability in the Baltic region with new
for anyone that the green coffee price is lower than the management for Löfbergs Baltic, says Lars Appelqvist. Reached the goal of 75 000 small holders
production cost. It creates a cycle where the farmers
Löfbergs Coffee Group works towards several within International Coffee Partners
stop investing and switch to other crops. The access to
coffee will decrease in a couple of years, which makes tangible sustainability targets in 2020. Are things
going in the right direction? Started roasting with partly
the prices go up and many starts to farm coffee again.
- I believe they do. We increased the share of BIOPROPANE in our main
And that is how it continues. This is where Fairtrade is an
certified coffee this year and we will reach the target production site in Karlstad
important tool, as they always guarantee the farmers
a minimum price higher than the production cost, says of a completely certified assortment. We started
Continued our work with
Lars Appelqvist. incorporating biopropane in our roasting house in We bought 10 000
tonnes of organic coffee. NEXT GENERATION
Karlstad, which contributes to us reaching the target of
What trends can we see on the consumer side? Hence an area COFFEE.Now in Kenya,
100 per cent renewable energy and decreasing our total
- Happily, the awareness of climate change and corresponding Tanzania and Colombia.
climate impact with at least 40 per cent. And we have
sustainability is increasing. More and more are interested to 27 918
already reached the target of 75,000 coffee farmers
in the origin of coffee and expect it to be farmed in a football pitches was Started a new group wide project
participating in our development projects, says Kathrine
good way. When it comes to the consumption of coffee, converted into organic with the goal to become a more
Löfberg.
we are drinking more coffee outside of home and on the production. GENDER EQUAL company
go. It gives us possibilities to offer coffee in new exciting Great, but there are challenges as well?
forms, says Lars Appelqvist. - There are. We are not quite there yet when it
S U S TA I N A B I L I T Y R E P O R T 5 OF 52
FO R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
C O M M E N T S F RO M C EO A N D C H A I R
comes to gender equality. Today, We are naturally affected by changes the southern and northern hemisphere. - I also think that both knowledge in
30 per cent of our managers are women. in the world around us, for example by We, along with other players, have to and passion for sustainability issues will
We are not satisfied with that. It is about increased digitalization, which we have create more value for the coffee farmers, increase, and that it will affect all steps
changing both attitude and behaviour. to prepared for. That is why we have for example through certifications and of the way. How the coffee is farmed,
We are actively working with equality done some major changes this year, says development projects that promote produced and consumed. Certifications
in our leadership and talent programs, Lars Appelqvist. better profitability for them, says will be a minimum requirement, but
where we offer just as many seats for Lars Appelqvist. customers and consumers will make
What are your thoughts about the
women as for men. This year, we also greater demands than that. We already
connection between sustainability - Exactly. If we are to get a
see that our Out of Home customers
started a norm and inclusion project
and profitability; is there a conflict? financially, socially and environmentally
want to run their own development
together with the Gender Academy at
- We do not see it like that. As we sustainable development, it has to
the University of Karlstad, which feels projects together with us. We will see
get more resource-efficient, our costs include everyone in the entire value new exciting products as we are getting
very topical in regards to the #metoo
drop. At the same time, it is about chain. We must always have that better at using more than just the coffee
movement that swept over the world,
changing and investing step by step. As perspective, says Löfberg. beans from the farms, and various types
says Lars Appelqvist.
we have with certifications, biopropane And what will happen within the of renewable energy and packaging
How about the target in the longer and renewable packaging material, sustainability area ahead? materials of course.
term, what does it look like and what where we continuously are increasing the
challenges are there? - Of course there are great - One thing that will not change
levels, says Lars Appelqvist. challenges that we need to tackle, and
- We will be a successful and is that coffee affects a lot of people’s
sustainable company in the longer - That is right. Sustainability is an we need to do it now. Here Agenda 2030 lives every day of the year. The 20 million
term with international presence, good integrated part of our entire company, will play a crucial role, that is something people who farm coffee for a living, and
profitability and quality. We will create from purchase, production to how we that we focus quite a lot on right now. all of us who drink coffee every day.
value throughout the entire value make business. We are doing a lot of It means that we as consumers can
chain for coming generations of coffee great things and have many times influence for the better, for example by
farmers, consumers and co-workers. I been a pioneer. Take certified coffee for choosing organic, Fairtrade or Rainforest
can see that we are following our plan. example. We have been pushing this Alliance certified coffee. It is a bit more
We are growing in a sustainable way, in issue for a long time, which has affected expensive, but it might be worth it if
terms of both turnover and results, says suppliers, business colleagues, customers you know that it makes a difference
Kathrine Löfberg. and consumers. That is good, from a for people and the environment, says
sustainability perspective and for our Kathrine Löfberg.
- The challenge is to break down the
competitiveness, says Kathrine Löfberg.
long-term targets and have the courage
to make decisions and dare to change, - The major challenge is probably Kathrine Löfberg, Chairman of the Board
to set up new targets and strategies. the big difference in distribution between Lars Appelqvist, CEO
S U S TA I N A B I L I T Y R E P O R T 6 OF 52
F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
MEET THE LÖFBERGS
COFFEE GROUP
LÖFBERGS COFFEE GRO UP S U S TA I N A B I L I T Y R E P O R T 7 O F 52
F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
M E E T T H E LÖ F B E RG S C O F F F E G RO U P
Löfbergs Coffee Group is one of the Nordic region’s
biggest family-owned coffee businesses, but our history
began 112 years – or four generations – ago. We have been
passionate about great tasting coffee with a vision for
a sustainable world right from the start. Today, we are
a bunch of devoted coffee lovers operating in Northern
Europe and Canada, sharing the passion for taste, trends
OUR OWNERS, the Löfberg family,
and sustainability. And for securing great coffee for
now in third and fourth generation.
tomorrow. Coffee is still the core of our business and
we are constantly developing new products and looking
for business opportunities that can add value to our
increasingly international group.
Löfbergs Coffee Group was founded in 1906 by the Our commitment to sustainability has also been with
brothers Anders, John and Josef Löfberg. We started us since the beginning. We are a value-driven family
roasting our own coffee in Karlstad back in 1911. Today, business, taking a long-term perspective on our
we are one of the Nordic region’s biggest family-owned operations without standing still at all. Our heritage
coffee businesses, producing the equivalent of more than together with our desire to continually evolve and remain
10 million cups of coffee every day. The company is still at the cutting edge are our strengths on a fast moving
fully owned by the Löfberg family, now in its third and and highly competitive market.
fourth generations, and a passion for great tasting coffee
has been part of the company since its inception.
S U S TA I N A B I L I T Y R E P O R T 8 OF 52
F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
M E E T T H E LÖ F B E RG S C O F F F E G RO U P
WE ARE HEAD OFFICE VOLUMES OF... EMPLOYEES BRANDS
27 944 338
Karlstad
Sweden tonnes
COFFEE (2016/17: 27,617)
165 tonnes
TEA (2016/17: 158)
2017 / 2018
3 million packages
READY TO PRODUCTS
OWNERS
The Löfberg family,
SEK 50,6 million
now in its third and OPERATING PROFIT
fourth generations. (2016/17: 33)
MARKETS
TURNOVER SEK 1 911 million (2016/17: 1,879) Sweden, Norway, Denmark, Finland, Estonia, Latvia,
Lithuania, the UK, Canada and Ireland.
S U S TA I N A B I L I T Y R E P O R T 9 OF 52
F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
M E E T T H E LÖ F B E RG S C O F F F E G RO U P
The Löfbergs Coffee Group’s The board of directors consists of six ordi-
organization nary members, of whom three are owners O U R T U R N OV E R I N D I F F E R E N T M A R K E TS
We have a central organization for strategy, and three are external members, as well
purchasing, supply chain/production, HR, as two employee representatives and
corporate communications, sustainability, two deputies. 37,5 per cent of the board’s
Sweden 54% Lithuania 3%
product development and financial members are females. Kathrine Löfberg is
management. Our sales organization Chair of the Board. The operational busi-
Denmark 19% Latvia 2%
is divided into four business areas, each ness is managed by the group manage-
with profit and loss responsibility. Our ment team, which consists of twelve exe UK 8% Estonia 2%
products are sold in some ten countries, cutives – four women and eight men. Our
primarily in Northern Europe, under the CEO is Lars Appelqvist. The other members Finland 5% Canada 1%
brands Löfbergs, Peter Larsen Kaffe, Percol, of the group management include HR,
Superbonobo, Green Cup, Kobbs and Communication, Supply Chain, Purchasing, Norway 4% Other 1%
Crema. We also produce coffee sold under Quality & Sustainability, Brands & Product
our customers’ brands all over the world, Development, Finance & Strategy and the
such as IKEA and McDonald’s. Directors of each business area.
L EGA L ST RU C T U R E WE ARE HERE
Bröderna Löfberg AB
Offices
Löfbergs Coffee Group (AB Anders Löfberg)
Roasting houses
Peter Larsen Löfbergs RNT
Sales
Löfbergs Kaffehuset i Löfbergs Löfbergs Food Brands Löfbergs
Kaffe A/S (85%) Lila A/S Löfbergs Ltd. Nutrition AB
Logistics Karlstad AB Lila AB Baltic SIA Group UK Canada Inc.
Denmark Norway (51%)
Crema
Kaffebrenneri
A/S
S U S TA I N A B I L I T Y R E P O R T 10 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
M E E T T H E LÖ F B E RG S C O F F F E G RO U P
Our vision – “Passion, responsibility and taste. Beyond Out of Home
O RGA N I SAT I O N expectations” – is part of everything we do. To realize this, We believe strongly in the Out of Home category, since
we have a strategic plan that is updated every year. The demand for served cups of coffee is increasing rapidly,
plan encompasses our most important target areas and both in our home markets and internationally. Part
perspectives – our balanced scorecard. READ MORE ON PAGE 15 of this business includes services, where we educate
CEO our customers on the subject of coffee, sustainability
The sustainability report covers all the brands and markets
and how to create a profitable coffee business. We
within the Löfbergs Coffee Group (under AB Anders
are currently the only player in Sweden that can offer
Löfberg) listed in the organizational scheme on page 10.
training in coffee sensory skills according to the SCAE,
HR Finance & Strategy the Speciality Coffee Association of Europe.
Divided into four business areas
This category covers all coffee consumed outside the
Retail home - in other words, coffee sold to cafes, restaurants,
Brands & Product Retail is our largest business area. The markets where we hotels, large chain customers and players within the
Quality & Sustainability
Development operate are dominated by several large retail customers. public sector. We work with everyone from local corner
In Sweden, the business is tightly controlled and we cafes to big international customers such as Sodexo,
negotiate five times a year with our customers on prices,
Communications
the number of items on the shelf, campaigns and the
size of our presence in our customers’ channels. We work
with all of the players in Swedish retail and we are one of
four major coffee brands.
In Denmark, we are known as Peter Larsen Kaffe
Out of Private
with a presence in most of the Danish chains and an
Retail Ready To established and appreciated brand among Danes.
Home Label
We are also a well-known brand in Estonia under the
Löfbergs brand. We are still relatively small in Latvia
and Lithuania, but our market shares are growing. Our
market share in Finland is growing rapidly and we are
Supply Chain known as the dark roasted coffee among Finns. In the
UK, we are working actively with the Percol brand to
boost our presence in retail chains’ product ranges.
S U S TA I N A B I L I T Y R E P O R T 11 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
M E E T T H E LÖ F B E RG S C O F F F E G RO U P
Nordic Choice and Circle K. We also work with high- It is still a small business area but we have high growth Our values are described in a leaflet, Our Good Will, which
end restaurants and offices in places such as London, ambitions and it is a category we have high hopes for in all new employees receive in their native language. The
Stockholm, Riga, Oslo and Copenhagen. the future on all our markets. We have already gained values play a crucial part in our everyday work and are
a market share of 20 per cent on the Swedish ice coffee used in our leadership developing program, in appraisals,
Sales to the public sector is also a very important part of market. During the year, we also signed an agreement salary discussions and strategic as well as day-to-day
our sales in both Denmark and Sweden and our coffee is with the company Humm Kombucha to start selling their decisions. It is therefore particularly pleasing to see that
sold to the small preschool as well as large regions and health drink kombucha, on our core markets. as many as 94 per cent of the group’s employees say they
municipalities. Our position on different markets varies, believe in our values, according to the latest employee
in Sweden we are market leaders. In Denmark we are Guiding values
survey from 2017. It is essential to us that our values
strong on convenience and building our presence all over Our values are our compass, guiding our actions amongst
characterize the entire group.
the category. In the UK we are growing strong in the each other and the world around us. They unite everyone
traditional Horeca sector. In Norway we primarily work who works within Löfbergs Coffee Group, providing
with chains and vending companies. In Finland we are still guidelines for our behaviour, so that we achieve our goals
small but growing in all segments. and create value for our stakeholders.
Private Label
In our Private Label business, we produce coffee for large O U R VA LU E S
customers, frequently international ones, under their own
brands. Here, our strength lies in having the capacity of a Responsibility – We make decisions that
are sustainable – economically, socially and
large player but the flexibility of a small one, and the ability
environmentally.
to adapt to every customer’s wishes. We compete for major
global contracts, and we are a proud supplier and partner Commitment – We strive to improve and we
to players such as IKEA, Coop and McDonald’s. challenge long-held beliefs, so that we are in
a constant process of change.
Ready To
Entrepreneurship – We are at the cutting edge,
In 2017/2018, we started off a new business area for all
and we develop new products and services rapidly.
our sales of Ready to products, which to date consists
of coldbrew, ice coffee, caffeine water along with Long-term approach – We build long-term
Superbonobo’s organic and vegan raw bars and balls. relationships, which requires us to be honest and
transparent and to always keep our promises.
The goal is to present natural, healthy and tasty products
answering to new consumption patterns, not least among Professionalism – We always act professionally,
younger, conscious consumers with focus on health and with a high moral standard and a healthy sense
well-being. Customers are retailers, convenience stores, of perspective, and we endeavour to do our best.
QUALITY and sustainability have been important to us
gyms and sports facilities as well as cafés and restaurants. ever since we were founded in 1906, and remain so today.
S U S TA I N A B I L I T Y R E P O R T 12 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
SUSTAINABILITY
AT CORE
LÖFBERGS COFFEE GRO UP S U S TA I N A B I L I T Y R E P O R T 13 O F 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
S U S TA I N A B I L I T Y I S T H E C O R E O F O U R B U S I N E S S
A sustainable development Ever since the company was founded in 1906,
sustainability has been an important feature of our
is crucial for our future operations. Much of our sustainability work has focused
on increasing demand for coffee from certified farms
business success, and during the last 20 years. In 1995, we imported the very first
container of organic coffee into Sweden, and today we are
therefore we do all we can one of the world’s biggest buyers of organic and Fairtrade-
certified coffee. A lot of our sustainability work in recent
to contribute to a more years has focused on developing new sustainable products
sustainable world. We and working together with other stakeholders on driving
the change we want and need to see.
concentrate our efforts For future generations
The term “sustainable development” was coined in
on the areas where we can 1987, when the Brundtland Report was commissioned
make the most impact.
by the UN. The report defines sustainable development
as “development that meets the needs of the present
Working together with without compromising the ability of future generations
to meet their own needs”. For us, this is as important as
small-scale coffee farmers ever. Climate change means that we are facing significant
challenges, not least in those countries where coffee is
and giving them the right grown, and fewer and fewer young people see a future as
coffee farmers. Our most important focus going forward
conditions to grow in a will be to get new generations to see a bright future as
coffee farmers; we call it Next Generation Coffee.
sustainable way. And we The Sustainable Development Goals
work hard to increase Löfbergs Coffee Group supports Agenda 2030, the UN’s
Global Goals for Sustainable Development. We are
demand and offer our convinced that private sector plays a decisive role in the
work to achieve these goals, not least when it comes to
customers and consumers dealing with climate change and reaching the two-degree
goal. The global goals therefore provide guidance for all
truly sustainable products. our decisions, whether they relate to our work at
S U S TA I N A B I L I T Y R E P O R T 14 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
S U S TA I N A B I L I T Y I S T H E C O R E O F O U R B U S I N E S S
origin, business development, product more sustainable coffee and find ways on
OUR COMMITMENT THROUGHOUT THE VALUE CHAIN development or day-to-day operations. how to become more sustainable and get
They are all interconnected and cannot be new ideas. We also take a clear position
Our sustainability work stretches all the way through the entire value chain,
separated. in the social debate for better working
from bean to cup. Each part is important but Consumption and Coffee farming
conditions for coffee farmers in low-
are our most prioritized areas. Cooperating for a sustainable future and medium-income countries; we are
We are always looking for ways to develop especially active in Denmark under the
and improve, and we are convinced Peter Larsen Kaffe brand.
that we need to cooperate to achieve a
sustainable development. We are for that Commitment throughout
reason active in a number of networks the value chain
Social responsibility and initiatives to influence sustainable Together with our vision and values, this
Investments and commitment, commitment forms the foundation for our
both at home and in producing development, and to share sustainability
countries. knowledge and experience with other sustainability work. For us, it involves taking
players. Examples of joint initiatives and responsibility for people and the planet, all
Coffee farming
Consumption Encourage more sustainable cooperation include International Coffee the way from bean to cup.
Increase demand for certified farming methods Partners, the Haga Initiative climate
coffee and create awareness for I N FLU EN CE A N D and conditions. Sustainability as a strategy
the challenges coffee faces. R E S P O N S I B I LIT Y, network, the Swedish International Our sustainability work is part of the
FRO M B E A N Development Cooperation Agency’s strategy for the entire company, and is
TO CU P Swedish Leadership for Sustainable managed by Group management through
Development network, RISE Research initiatives and goals in our balanced
Institutes of Sweden’s Food & Environment scorecard. Our goals, initiatives and key
network, CSR Sweden and WWF’s performance ratios are divided into the
Sustainable Food Chain. In Denmark, we following areas: finance, customers and
Transport are involved in the Danish Ethical Trading
Boats and trains all the way
markets, internal processes, responsibility
Delivery to the roasting house. Initiative, Danida, Kids Aid and the SDG and employees.
Effective, responsible network within the Confederation of
logistics solutions. The Director of Quality & Sustainability
Danish Industry.
Processing is part of Group management and has
Energy-efficiency improvements, Taking an active part in the debate
renewable energy sources
several internal forums available, such as
and smart packaging. We have an ongoing dialogue, both in the cross-functional Sustainability Group,
the media and with various stakeholders where various sustainability issues are
in other channels, to boost demand for considered and decided. Other forums
S U S TA I N A B I L I T Y R E P O R T 15 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
S U S TA I N A B I L I T Y I S T H E C O R E O F O U R B U S I N E S S
Our Code of Conduct – the basis for The exception is the Crema micro roasting
our sustainability work house in Norway, which accounts for less
OUR 2017/ 2018 Our group wide Code of Conduct, which than 0.1 per cent of our production. The S U S TA I N A B L E
FINANCIAL YEAR includes our Sustainability Policy and our facility in Karlstad, which is responsible
CONSUMPTION AND
Business Ethics Policy, is the top-level for 92 per cent of our production, also
Revenue 1 971 020 governing document for our sustainability holds ISO 9001, ISO 14001 and FSSC 22000 C O F F E E FA R M I N G A R E
Operating expenses -1 672 291 work. It is based on UN Global Compact’s quality and environmental certifications. O U R M O S T M AT E R I A L
principles and covers environmental issues, Löfbergs UK is certified according to S U S TA I N A B I L I T Y
Salaries and remuneration
human rights, social compliance and ISO 9001 and ISO 14001.
to employees -248 095 M AT T E R S .
anticorruption. The policies form the basis
Tax contributions
Payments to providers of capital -41 424 for our sustainability work. All employees
Our growth and profits contribute to tax
Debt -563 575 are educated in our Business Ethics Policy
revenues in all countries we operate in.
during the introduction for new employees
Equity 447 745 This is a very crucial part of how we as a around SEK 1.7 million in the development
and everyone working within the company
company contributes to society, and pays projects carried out within ICP. Moreover,
has also signed the policy. To ensure
Tax paid to the public sector for the services that we enjoy and that we are also investing in our initiative
that any violations against the code of
help our operations to function. We always Next Generation Coffee with projects in
Sweden -6 191 conduct are reported, we have a strictly
pay tax in the country where the revenues Tanzania (through ICP), Colombia (through
Denmark -4 800 anonymous whistleblower system in place.
are obtained, and we follow established FNC) and Kenya. READ MORE ON PAGE 23
Norway -549 Our Code of Conduct for Suppliers is our principles for transfer pricing for our
In Sweden, we invest in the local
Latvia -963 most important steering document for internal pricing.
community and sports. Our main
sustainability within our supply chain and
UK 0 Community investments investment, which should also be seen as a
all suppliers must commit to it.
Canada: -242 Besides taxes, we are also investing in marketing activity, is one of Swedens most
READ MORE ON PAGE 28
society through our development projects suceesful ice hockey teams Färjestad BK
Community investments -9 432
Supported by ISO-certified in coffee producing countries but also where we 2017/2018 prolonged our support
Economic value retained 55 267
management systems in projects on our core markets. Our with three years. In Denmark, we support
(all figures are in SEK thousands) Clear management systems are important largest community investment for coffee a project called Knus Kræft, which is an
to achieve our ambitious goals. Our farmers is through International Coffee initiative to raise money for children with
operations are therefore largely covered Partners (ICP), a non-profit organization cancer. In Denmark we are also supporting
include the Environmental Group and by ISO-certifications. Our Quality & Food that we co-founded in 2001 together local sports, not the least football.
the Packaging Forum, as well as the more Safety Policy governs our systematic food with four other family-owned European
temporary Project 100 per cent Certified safety efforts, and our facilities in Karlstad, coffee companies, that today has grown
and 100 per cent Renewable Energy forums. Viborg and Riga are all ISO 22000 certified. into seven. Every financial year we invest
S U S TA I N A B I L I T Y R E P O R T 16 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
O U R S U S TA I N A B I L I T Y S T O RY F R O M 1 9 0 6
Started using biogas Invited to join the Reduced energy
Started using wind Co-founded Interna-
in Viborg, Denmark, Swedish Leadership consumption in
power electricity tional Coffee Partners
achieving 100 percent for Sustainable Riga, Latvia, through
and replaced oil with (ICP), which improves
renewable sources. Development energy mapping and
district heating in conditions for small-
network, which additional insulation.
Karlstad. scale coffee farmers. Built the world’s
works for sustainable Drew up a new three-
first large-scale
Installed new roasting Launched coffee that development. year plan for diversity
test facility using
machines and reduced is both organic and solar panels for both Started Coffee for and equality.
LPG and electricity Fairtrade. heating and cooling. a Better Future, The entire Löfbergs
consumption by 20 The technology reduces a development range is certified as
percent. Co-founded the energy consumption project in Kenya that sustainable (organic,
Common Code for the and CO2 emissions. strengthens coffee Fairtrade, Rainforest
Co-founded CSR Coffee Community farmers through
The Löfberg Family Alliance).
Sweden. Association (4C). education, training
Began producing Foundation is formed, Operations in
and trade.
coffee that takes Travel, working Operations in Latvia with the purpose of Sweden are verified
people and the environment and are certified in promoting sustainable New business ethics in accordance with
environment into ethical/social policies accordance with ISO development in policy and whistle-blower ISO 26000 (social
consideration. drawn up. 22000 (food safety). producing countries. function drawn up. responsibility).
1906 1993-1999 2000-2009 2010-2012 2013-2015 2016-2018
Environmental policy Purchased Green Created the Sustain- Operations in Launched plant- The first to use Scania’s Operations in Latvia
drawn up. Cup in the UK, which able Quotations tool, Sweden certified in based capsules for new climate-smart achieve silver level in the
First to remove aluminium sells certified coffee which shows hotel, accordance with ISO the Nespresso system hybrid truck, which Latvia Sustainability Index.
from coffee packaging. and recycles coffee restaurant and café 14001 (environmental under the Löfbergs, reduces CO2 emissions Launched Next
grounds into e.g. customers how they management). Peter Larsen Kaffe and by 92 percent. Generation Coffee – an
Imported the first garden fertiliser. contribute towards Percol brands.
Started preproduction initiative that supports
container of organic concrete effects Produced our first Opened Sweden’s first of packaging material young coffee farmers
coffee into Sweden. Joined the Haga for people and the sustainability report. high-bay warehouse to from renewable in Colombia, Kenya and
New green coffee goods Initiative business environment when they achieve Environmental sources.The intention Tanzania through edu-
inward facility where network, which aims choose certified coffee. Co-founded Coffee & Building Silver is to be able to replace cation and direct trade.
trains run right into the to inspire the business Climate, which helps certification. fossil plastic in all Started roasting with
roasting house. sector to take greater Operations in Sweden small-scale coffee
climate responsibility. and Denmark certified Increased proportion of packaging by 2020. partly biogasol in our
farmers to deal with
Installed geothermal in accordance with ISO female managers to 32 Collected more than main production site
climate change.
heating in Karlstad. The first in Sweden to 22000. percent. Our goal is at SEK 2 million for in Karlstad.
Operations in Sweden launch aluminium- Switched to least 40 percent by 2020. children with cancer Reached the goal of
certified in accordance free, Fairtrade coffee electricity from wind Purchases of organic in Denmark through 75 000 small holders
with ISO 9001 (quality capsules. power in Viborg, and Fairtrade coffee Peter Larsen Kaffe’s within International
management). Denmark. reach new highs. Crush Cancer project. Coffee Partners
S U S TA I N A B I L I T Y R E P O R T 17 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
G R E AT R E S U LT S A N D A M B I T I O U S G O A L S
The past year was a great year for the whole wards even higher goals for our continuous 1 percentage on female managers. To be mentioned
group. We are strengthening our positions on growth and contribution to a sustainable especially is that we reached our 2018 target on 75 000
coffee farmers to be reached within International Coffee
almost all sustainability aspects with clear development.
Partners and we are now working hard with the coming
progress in terms of economic, environmen- five year strategy for ICP.
tal and social performance. We are of course Below we have brought together our main goals and
performance indicators to give an overview of our Goals and initiatives
happy and proud of what we have achieved. performance. We have had a positive development on Our aim is to have clear long-term and short-term
However, we will never rest but continue to- all areas besides gender equality where we dropped measurable targets for all our sustainability focus areas.
GOAL FOR 2020: 100% GOAL FOR 2020: 100% GOAL FOR 2020: 40% GOAL FOR 2018: 75,000 GOAL FOR 2020: 12% GOAL FOR 2020: 30%
Result for 2017/2018: Result for 2017/2018: Result for 2017/2018: Result for 2017/2018: Result for 2017/2018: Result for 2017/2018:
86.5% 50.7% 31% 74,336 8.4% 1.2%
C E RT I F I E D R E N E WA B L E E N E RGY F E M A L E M A N AG E R S C O F F E E FA R M E R S RETURN ON I N C R E A SE I N C O F F E E
P RO D U C T R A N G E H AV E I M P ROV E D T H E I R C A P I TA L E M P LOY E D S O L D, TO N N E S*
(2016/17: 41,4) (2016/17: 32)
(2016/17: 84,8) O P P O RT U N I T I E S F O R (2016/17: 5,6) (2016/17: 10,8)
SE L F- SU P P O RT*
(2016/17: 65,973)
Our work to achieve this goal
contributes towards achieving
Our work to achieve this goal Our work to achieve this goal Our work to achieve this goal SD goals 1-8, 13, 15 and 17. Our work to achieve this goal Our work to achieve this goal
contributes towards achieving contributes towards achieving contributes towards achieving * Within the framework of contributes towards achieving contributes towards achieving
SD goals 1-8, 12, 13, 15 and 17. SD goals 7 and 13. SD goal 5. International Coffee Partners. SD goal 8. SD goal 8.* Compared with 2014/2015
S U S TA I N A B I L I T Y R E P O R T 18 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
G R E AT R E S U LT S A N D A M B I T I O U S G O A L S
For aspects where we do not yet have Supporting Agenda 2030 example no 1 No Poverty, 2 Zero Hunger,
defined goals, baseline and/or timeline, The Global Goals provide guidance for 8 Decent work & Economic growth,
we start with action plans and initiatives the Löfbergs Coffee Group’s operational 12 Sustainable consumption and
guiding in the right direction. Decisions on goals. We fully commit to the whole production and 13 Climate Action.
reducing climate impact from our business Agenda 2030 and understand we have an
Following this report, we will show and
travelling and choosing electric cars are impact on many of the 17 goals since they
describe more in detail how we work to
two examples. are all interconnected. We have identified
take our responsibility and contribute
some of the goals as more material than
Development of our goals towards the Agenda 2030.
others to our operations and business, for
During the year we have made decision
on some new goals and changing of some
current. These will be valid from next
year. One is our 2030 goal concerning
packaging where we want all our
AGENDA 2030 – SUSTAINABLE DEVELOPMENT GOALS
packaging to consist of material from
renewable or recycled resources. This
goal is one important part of our overall
100 per cent renewable resources goal for
2030 which goes for energy, material and
transportation. Moreover, when we have
reached our goal of 100 per cent certified
coffee we will focus on scaling up our Next
Generation Coffee initiative, which will be
formulate into goals during 18/19.
The Global Goals provide guidance for
our operational goals on sustainability
and we fully commit to it.
S U S TA I N A B I L I T Y R E P O R T 19 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
KEY RESPONSIBILITIES AND CONTRIBUTIONS
TO AGENDA 2030 AND THE GLOBAL GOAL S
SOURCING
No Poverty
1.2 Reduce poverty by
at least 50 per cent.
1.5 Build resilience of the poor
and those in vulnerable situations PROCESSING
Zero Hunger Affordable and clean energy
2.3 Double the productivity and incomes of small-scale food producers. 7.2 Increase global percentage of renewable energy.
2.4 Sustainable food production and resilient agricultural practices. 7.3 Double the improvement in energy efficiency.
Decent work and economic growth Responsible consumption and production
8.1 Sustainable economic growth. 12.1 Implement the 10-year framework on sustainable consumption and production
8.8 Protect labour rights and promote safe working environments. 12.2 Sustainable management and use of natural resources.
12.5 Substantially reduce waste generation.
Climate action
13.1 Strengthen resilience and adaptive capacity towards climate change Climate action
13.3 Build knowledge and capacity to meet climate change. 13.2 Build knowledge and capacity to meet climate change.
S U S TA I N A B I L I T Y R E P O R T 20 OF 52F O R E WO R D A B O U T US SUSTA I N A B I L I T Y AT CO R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
KEY RESPONSIBILITIES AND CONTRIBUTIONS
TO AGENDA 2030 AND THE GLOBAL GOAL S
EMPLOYEES
CUSTOMERS Gender equality
5.1 End discrimination against women and girls.
Responsible consumption and production 5.5 Ensure full participation in leadership and decision-making
12.3 Halve global per capita food waste.
Decent work and economic growth
12.8 Promote universal understanding of sustainable lifestyles.
8.4 Improve resource efficiency in consumption and production.
Climate action 8.5 Full employment and decent work with equal pay.
13.1 Strengthen resilience and adaptive capacity towards climate change 8.8 Protect labour rights and promote safe working environments.
S U S TA I N A B I L I T Y R E P O R T 21 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
FARMING THE COFFEE
OF THE FUTURE
LÖFBERGS COFFEE GRO UP S U S TA I N A B I L I T Y R E P O R T 22 O F 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
FA R M I N G T H E C O F F E E O F T H E F U T U R E
Changes in climate are W H E R E W E B U Y O U R C O F F E E F RO M
impacting coffee harvest
W H E R E C O F F E E I S G RO W N
and, consequently, the
125 million people who
earn their livelihood from
coffee. To secure coffee
for tomorrow, we are Latin America 58%
working hard to get more Asia 31%
young people to be able
Africa 11%
to support themselves as W H E R E C O F F E E I S D RU N K
coffee farmers and adapt
to climate change.
21% 64% 12% 3%
Central America South America Africa Asia
Europe 34%
Latin America 20%
Asia 21%
Honduras, Costa Rica, Brazil, Colombia Ethiopia, Kenya, Vietnam, Indonesia
Nicaragua, El Salvador, and Peru Tanzania and and India North America 18% Africa 7%
Mexico and Guatemala Uganda
S U S TA I N A B I L I T Y R E P O R T 23 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
FA R M I N G T H E C O F F E E O F T H E F U T U R E
Coffee is a unique commodity. Around the world, we drink
a combined total of 2.25 billion cups every day, and coffee
supports 20 million farmers and their families in about
70 different countries. Global coffee exports are worth
USD 19 billion every year and consumption is increasing
around 5 per cent/year. Coffee is an important export
commodity for many low- and medium-income countries.
We purchase our coffee from about 20 countries, with
the most important countries shown on page 21. Around
40,000 farmers grow the coffee we buy from roughly
55 suppliers where some are cooperatives consisting of
small scale farmers.
There are two main types of coffee varieties, arabica and
robusta. Within the Löfbergs Coffee Group, we almost
exclusively use high-altitude arabica.
Safeguarding tomorrow’s coffee
Climate change has an impact on the entire planet, and
coffee is a crop that is extremely sensitive to the changes
affecting cultivation conditions in terms of drought/rain/
temperature/soil conditions/presence of plant diseases
etc. Half of all the land in the world where we grow coffee
run the risk of becoming unusable by 2050 due to climate
change according to the Climate Institute.
Climate change together with the ageing population of
farmers, in East Africa the average age is around 60 and
in Colombia around 57, and the unwillingness of the next
generation to take over is seriously threatening future
supply of coffee and the livelihood of young people in
MIRIAM NYAWIRA, 27, is part of Next Generation Coffee
in Othaya, Kenya
S U S TA I N A B I L I T Y R E P O R T 24 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
FA R M I N G T H E C O F F E E O F T H E F U T U R E
coffee producing regions. Thus, these two challenges
are our most important sustainability issue by far.
Adapting farming to climate change and enabling
the next generation to see a positive future in coffee
is therefore something we put a lot of effort in. We
are working actively to get more farmers to convert
to sustainable farming methods, as well as improving
living conditions for the approximately 40,000 coffee
farmers who supply coffee to us. And we are investing in
initiatives and projects aiming to find solutions to both
interconnected challenges.
Adapting to climate change
We operate the Coffee & Climate project, together
with the members of International Coffee Partners
and several other coffee companies, as well as the
development assistance organizations SIDA in Sweden AVERAGE AGE of a coffee farmer in Colombia NEXT GENERATION COFFEE under our brand
and local NGO´s. The project combines knowledge from is 57 years old. Peter Larsen Kaffe in Denmark.
international climate research with coffee farmers’
practical experience. The project has developed a the types of efforts that we want to see more of, and coffee farming. We work to improve development
specific toolbox that can be used by coffee farmers we therefore encourage farmers to take part in climate opportunities for the next generation of coffee farmers
all over the world to manage climate change and initiatives such as the Coffee & Climate project and the through education and trading with few intermediaries.
safeguard the coffee resources of the future. The Rainforest Alliance certification body. At the same time, it is a way for us to secure access
project has reached almost 80,000 farmers so far and to really good coffee in the future. We are currently
we see very positive results. Some coffee farms emit the powerful greenhouse gas
working with young farmers in Tanzania, Colombia
methane. These are the farms that use the so-called
Reducing the climate impact and Kenya, from where we also source coffee to our
‘wet method’. With the right technology, this gas can
The biggest climate impact from our coffee arises Next Generation Coffee products. During 2017/2018,
be captured and used instead as climate-smart biogas, we started a new project in Colombia. We have also
during farming, but a new literature study by 2050
which both contributes towards reduced emissions and, further developed our work in Kenya with greater focus
Consulting shows that, under the right conditions,
in the best case, can replace fossil fuel. on young farmers.
coffee farms can actually absorb more CO₂ than they
produce – they can be what are known as “carbon Enabling the next generation to take over
sinks,” carbon can be kept in the soil and carbon is also Next Generation Coffee is our initiative to encourage
bound into the plants themselves. These are exactly the young generation to see a positive future in
S U S TA I N A B I L I T Y R E P O R T 25 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
FA R M I N G T H E C O F F E E O F T H E F U T U R E
O U R CO N T R I B U T I O N S TO I N T E R N AT I O N A L CO F F E E PA RT N E RS P ROJ EC TS
A total of 75,000
coffee farmers
have been reached
INDONESIA
(2017/2018)
AND VIETNAM
BRAZIL, COLOMBIA,
DOMINICAN REPUBLIC, EL
SALVADOR, GUATEMALA, CAMEROON,
HONDURAS, PERU TANZANIA
AND UGANDA
75,000 farmers’ livelihoods have been The farmers are small-scale, and they
strengthened so far usually farm on less than two hectares
Together with four other privately-owned of land, which is equivalent to about two
European coffee companies we founded football pitches. The project’s method
the non-profit organization International consists of help to achieve self-help, and
Coffee Partners (ICP) in 2001. Today, it focuses on increasing productivity,
the number of family-owned European improving coffee quality and strengthening
companies operating ICP has risen to the farmers’ knowledge of marketing. This
eight, and Kathrine Löfberg has been contributes towards higher profits for the
Chair of the Board since 2016. ICP supports farmers in both the short and long term.
local projects that provide coffee farmers
with education and practical training in During the year we visited Amani
subjects such as farming methods, gender and Ikupa Msafiri in Igale Tanzania
equality and adapting to climate change. that grow the coffee we buy for our
Next Generation Coffee products.
LÖFBERGS COFFEE GRO UP S U S TA I N A B I L I T Y R E P O R T 26 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
FA R M I N G T H E C O F F E E O F T H E F U T U R E
The participants have often doubled or
even tripled their income, which naturally
has a great effect on the standard of
living and the development of the local
community.
The total budget is approximately
EUR 1 million per year, of which our
contribution is around 15 per cent. Since
2001, EUR 13.2 million has been invested
in projects in 12 countries. In many cases,
we cooperate with other players including
the Swedish International Development
Cooperation Agency (SIDA).
During 2018, we reached our goal, and
now over 75,000 farmers and their families
have participated in our projects. The new
five-year strategy for ICP will be finalized
in 2018. To further strengthen young coffee
farmers and to align the work of ICP with
the Agenda 2030 goals are two important
objectives going forward.
During the year we reached our goal of
75 000 small holders farmers taking part
in International Coffee Partners projects.
S U S TA I N A B I L I T Y R E P O R T 27 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
C O F F E E I S G RO W N I N H I G H R I S K C O U N T R I E S
Coffee is grown in high risk countries coffee from hundreds of different coffee farmers. Despite
The most prevalent global risks concerning human rights this, we always have traceability. We have long-standing H O W M U C H O RGA N I C G R E E N CO F F E E W E P U RC H A S E
are found in the agricultural sector, and coffee is no relationships with our suppliers and cooperatives, and we (Tonnes)
10,399 10,292
exception. Low wages and long working days together spend about 100 to 150 days a year travelling to meet and
with the growing issue of migrant workers are prevalent get to know the farmers. This together with a systematic 8,226
risks. Migrant workers involved in the picking are the most risk assessment and evaluation according to our risk 7,021
vulnerable and a development that is global and also pyramid are our key instruments for mitigating risks. 6,132
prevalent in developing countries in the agricultural sector. 5,168 5,161 5,372 5,331
4,978
Minimizing risks within our supply chain
Two thirds of the world’s coffee producers are small-scale We are well aware of both the environmental and human
and coffee is a family business, therefore issues such as rights risks connected to coffee production. We take part
17
child labour is of course also a constant risk. in many forums, i.e. Global Coffee Platform, where we
give our view and get updates to constantly be on top
When it comes to environmental impact from coffee
of new risks evolving. Our deep understanding is also
production, there is an increased focus on impact on
95
9
0
8
3
4
5
6
7
2
1
00
why we have decided to go for 100 per cent certified
01
01
01
01
01
01
01
01
01
19
/2
/2
water qualities for the local communities around the
/2
/2
/2
/2
/2
/2
/2
/2
09
08
17
16
12
14
15
13
10
11
coffee READ MORE ON PAGE 40 and why we have a systematic
20
20
20
20
20
20
20
20
20
20
coffee farms. When using the so-called wet method to
way of assessing new and evaluating current suppliers.
peel of the flesh from the coffee bean, a lot of water is
However, the risk level according to our systematic risk
needed and the water from this process, if not handled
assessments of suppliers is becoming lower each year
and cleaned properly, can pollute local streams and rivers.
since we increasingly buy our coffee from certified farms.
A new risk that we see evolving and are becoming And if we find activities that violate our code of conduct,
aware of is fraud when it comes to certification papers, we have hard mechanisms for addressing these situations.
especially on organic coffee. We have not had any During the year, we have finalized our cooperation with
reported incidents, but it is a topic that is discussed more one supplier due to quality issues.
frequently.
Our Supplier Code of Conduct consists of a set of
Every cup can be traced requirements and guidelines for sustainable farming and
The supply chain of coffee is in most cases long with purchasing. The Code is based on the Global Compact’s
many middlemen. We purchase our coffee directly from ten principles, the ILO’s fundamental conventions and our
the producing countries with as few intermediaries as own guidelines for ethics and the environment. This Code
possible, often only one to three between us and the of Conduct also includes a requirement that suppliers
individual farmer. A large percentage is sourced from guarantee GMO-free cultivation. WE KNOW THE COOPERATIVES we buy our coffee from.
small-scale coffee farmers who sell their coffee through On the picture Martin Löfberg visiting young coffee
farmers in Antioquia, Colombia.
cooperatives. A delivery from a cooperative can consist of
LÖFBERGS COFFEE GRO UP S U S TA I N A B I L I T Y R E P O R T 28 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
C O F F E E I S G RO W N I N H I G H R I S K C O U N T R I E S
H O W M U C H O F T H E G R E E N CO F F E E R I S K M A N AG E M E N T W I T H I N O U R SU P P LY C H A I N
W E P U RC H A S E I S C E RT I F I E D
% DEVELOPMENT MEETINGS,
60 CALIBRATION AND LONG TERM RELATIONSHIPS
50
EXTERNAL STANDARDS / CERTIFICATIONS
(Rainforest Alliance, FairTrade, organic, UTZ, ISO, Iseal)
40
EVALUATION ON: EVALUATION ON:
Quality, delivery performance, Environment, human rights,
30 cost & relationship working conditions, child rights
GENERAL RISK ASSESSMENT SUPPLIER CODE SUPPLIER RISK ASSESSMENT
20 (Origin / country risk, raw material, product, process) OF CONDUCT (incl. general & specific supplier criteria)
10 PURCHASING HANDBOOK, BUSINESS ETHICS POLICY, CODE OF CONDUCT
(general & specific supplier criteria)
0
Our risk pyramid describes how we work with risk parameters. When visiting coffee farmers, we always
2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2017/ 2018
management within our supply chain. Before starting up check sustainability and quality parameters such as water
a new cooperation with a supplier, we have a thorough management, labour situation, quality of the crops etc.
assessment process covering all aspects of sustainability Data is registered and followed up until next time.
Organic Organic/Fairtrade Fairtrade as well as quality. This assessment is made together During the year we have worked to further professionalize
with a risk assessment covering origin/country, type of our risk management work. We have started to educate
Rainforest Alliance Rainforest Alliance/Organic product, process etc. After passing, all suppliers sign and our buyers and other key persons within the Academy for
commit to our Code of Conduct for Suppliers. During Human Rights in Business within CSR Sweden. We have
UTZ Certified UTZ Certified/Organic
the year we have assessed eight larger suppliers where also begun to digitalize our assessment and evaluation
six of them passed the assessment. Current suppliers are tools to get an even better control of the data and
evaluated regularly on sustainability as well as quality traceability to the farm level.
S U S TA I N A B I L I T Y R E P O R T 29 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E S SI N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
MORE THAN COFFEE
More than coffee
P U RC H A S I N G C AT EG O R I E S During last year we started a new business area within
Ready To consisting of different ready to drink products
based on coffee, but also raw bars and snacks. All
products with ingredients that can be certified are
Green coffee 73.4% Others 0.6% certified, Fairtrade or organic or both. We have the
same requirements and processes for the suppliers of
Ready to drink 19.6% Paper 0.6% these products. However, the risks for the Superbonobo
products are a bit different compared to green coffee. The
Corrugated cardboard 2.5% Instant 0.6%
Superbonobo products are based on oat, cashew nuts,
Plastic 2% Capsules 0.2% cacao and dates. All ingredients are certified organic with
full traceability and we have a close relationship with the
Ready to eat 0.6% two suppliers of these products. It is a new area for us and
Total 44,258 tonnes
we are working intensively to gain knowledge and secure
the same sourcing and supply chain procedures as for
coffee and tea.
OUR NEW PRODUCT CATEGORY
Ready To, certified and delicious.
WITH THE SUPERBONOBO brand we offer vegan,
organic raw bars and balls.
S U S TA I N A B I L I T Y R E P O R T 30 OF 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E SS I N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
PROCESSING
LÖFBERGS COFFEE GRO UP S U S TA I N A B I L I T Y R E P O R T 31 O F 52FOREWORD A B O U T US SUSTA I N A B I L I T Y AT C O R E S O U RC I N G P RO C E SS I N G C USTO M E R S C O-WO R K E R S A B O U T T H IS R E P O RT
T O WA R D S 1 0 0 % R E N E WA B L E R E S O U RC E S
We strive to avoid The vast majority of the climate impact from
each cup of coffee we drink – 80 to 90 per cent
contributing towards
O U R G H G E M I SS I O N S
– comes from farming the coffee, that is why we TONNES
CO2e
focus our efforts in the producing countries and
climate change. And we sourcing of certified coffee. But we also need to TONNES
/ TONNE
ROASTED
have tough and ambi
CO 2e COFFEE
do everything we can to reduce emissions from
our own production and business operations. 4 ,000 0.16 0
tious goals. By 2030, we Tough climate goals 3,50 0 0.14 0
strive to use 100 per cent By 2020, our emissions of greenhouse gases
per tonne of coffee produced should be cut by
renewable resources, at least 40 per cent (compared to 2005).* Our
3,00 0 0.12 0
environmental footprint is calculated annually
and by 2020 we shall as part of our membership of the Haga 2,50 0 0.100
have reduced our CO2 Initiative and includes our operations in Sweden
and our production in Denmark. The reduction 2,00 0 0.08 0
emissions by 40 per cent to date has been 39 per cent meaning that we
have almost reached our goal of 40 per cent
and use 100 per cent
1 ,500 0.06 0
2020 already. And during the past financial
renewable energy. We
year, our greenhouse gas emissions have gone 1 ,00 0 0.04 0
down with 12 per cent. Primarily due to the
are moving in the right biobased gas we have started to mix in for
roasting at our production plant in Karlstad.
50 0 0.02 0
direction and are proud So we are very happy to see that we are taking
0 0.000
great steps in the right direction.
of our achievements this Efficient use of energy from
2005 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 2016 / 2017 2017/ 2018
last year.
( B A SE Y E A R)
renewable sources
We have doubled our coffee production Own transport Business travel Energy
in Karlstad since 1991, but our electricity
consumption has remained at the same level Roasting Emissions tonnes/produced coffee
as before. We naturally need to ensure that we (Tonnes of CO2e, Scope 1 and 2, as well as business trips in Scope 3.)
take actions to reduce our energy consumption
even further.
S U S TA I N A B I L I T Y R E P O R T 32 OF 52You can also read
