THE NESPRESSO AAA SUSTAINABLE

QUALITY™ PROGRAM:

10 years 2003-2013

Paulo Barone,

Manager, Coffee Sustainability

P2

The sustainable sourcing program, based on 3 Pillars to match Nespresso’s philosophy and vision

Quality Sustainability Productivity

A A

Maintaining

Highest Quality

Respecting

People &

Environment

Farm

Management

Sustainable

Value Creation A

1.4%

22.2%

22.4%

1.8%

1.6%

0.0%

0.0% AAA

NON-AAA

In past 10 years AAA program has scaled to support 60’000 farmers across 8 countries of coffee origin

Ethiopia

Mexico

Guatemala

Costa Rica

Colombia

India Arab

Nicaragua

Brasil Kenya 100%

100%

India Rob

64% 36%

53% 47%

100%

100%

100%

100%

18% 82%

100%

80% of farmers in Colombia 220 Agronomists

5 4

3 2

1

A holitstic approach towards sustainable sourcing

6

Certification support

Support to farmers to certify the coffee farm

TASQ Holistic agronomy tool. Agronomists to support farmers

Projects Infrastructural investment such as central mill and water

Innovation An internal AAA database and mobile apps for continous monitoring and improvement

AAA Premium Quality and Sustainability incentives

Long term partnerships

Glocal partnerships to create and share value across

An impact evaluation study conducted by Crece, Colombia defines results of a 10 year journey… (COSA Methodology)

SOCIAL

ENVIRONMENTAL

ECONOMIC

Difference between AAA and Non-AAA farms

+22%

+52%

+41%

Number of protective gear items used by the workers

Living conditions of the workers

Perception of the household’s quality of life

Perception of relationships with the employees

Less than 10% of Rust affectation

Keep records of fertilizer’s application

Knows the domestic price

Perception of the farm’s economic situation

The farm has recycling program

Soil conservation practices

Positive agrochemical practices

Trained in environment topics

New challenges and opportunities Scaling AAA program in new countries Socio-economic risk management mechanisms for farmers Moving beyond farm level for environment management

2014 – 2020 KEY PROJECTS

Farmer

Future

4 major new initiatives in the areas of farmer

welfare and environmental stewardship.