FIVE PILLARS
3. SUSTAINABLE SOURCING OF OTHER PRODUCTS
It is important to us that all our products are sourced sustainably. This includes products in our Espresso Warehouse catalogue, coffee machines, and products and services we use in our daily operations. Here we will review the progress we have made against our goals, how we have been developing our approach to supplier engagement, and the preparations we have made for the introduction of the European Union Deforestation Regulation (EUDR).
Goal Update
Click on each of the below goals to see our progress in 2023 and 2024:
Our
Ambition
for 2025
- 20% of our Matthew Algie coffee product range are packed in recyclable packaging.
- Create, share and agree carbon reduction plan with 5 named suppliers.
- Communicate our requirements for human rights and environment due diligence to key suppliers (those supplying us products containing high-risk raw material).
- All key suppliers have emissions data requirement written into contracts (those suppliers that are in the top 5% of supply chain emissions contributors).
Supplier Engagement Progress Update
Working with our suppliers is crucial in our journey to be reaching Net Zero by 2040. We make annual improvements on how we work and engage with suppliers. New and upcoming legislation makes this essential. We have updated our supplier self-assessment questionnaires, Supplier Manual and supplier contracts to be more transparent in our expectations from our suppliers, relating both to their sustainable practices, and to the crucial data and information. Internally, we have upgraded our training modules for employees regularly working with suppliers, updating them on the changes made, ensuring they understand the importance of carrying out environmental and human rights due diligence when choosing a supplier and looking at how to integrate a circular economy approach. Heading into 2025, we plan to deliver a supplier webinar, addressing the updates made, answer questions and establishing a working dialogue.
In 2024, we extended our high-risk raw material risk assessments to include cocoa and tea. With the introduction of the European Union Deforestation Regulation (EUDR) and our own goals related to deforestation and traceability, this was crucial. In collaboration with suppliers, we have traced the origin of raw materials and scored products based on risk and priority within our business. Understanding where these hotspots are helps us to focus our efforts and guides our action planning.
Net Zero Supplier Engagement
As with most businesses, the majority of our carbon emissions are attributed to Scope 3; emissions produced in our value chain. In 2023 and 2024, our Scope 3 emissions account for 95% and 96%, respectively. We cannot reduce these emissions alone. Supplier engagement and cooperation are essential to aid us in achieving Net Zero by 2040. Working towards Scope 3 reductions is crucial to us, and in 2024, we had the pleasure of working with a student from Glasgow University, who, as part of a master's dissertation-style project, looked at how to improve our supplier engagement to reduce our Scope 3 emissions. The findings of this research highlighted the challenges felt by many businesses, especially within the coffee sector, including the high reliance on spend data within calculations, leading to less accuracy within the final footprint. There are also concerns with confidentiality and additional workload for suppliers, as well as compliance challenges as regulations and reporting standards change. There is room for improvement, with a clear strategy outlined for us to follow. We have started already, embedding emissions data requirements in purchasing documents and having the provision of data stated within contracts with suppliers. We aim to introduce some more of the suggested improvements in 2025.
“My project with Matthew Algie provided invaluable hands-on experience in implementing corporate sustainability across supply chain activities. It enabled me to apply my background in sustainable supply chains and expand my knowledge of the complex coffee chain industry. Through this project, I deepened my understanding of how significant sustainability footprints, including Scope 3 carbon emissions, arise from supply chain operations which fall outside companies' direct control. It highlights the critical role of stakeholder engagement, including with suppliers and vendors, to foster responsible and sustainable supply chain practices. Strategic approaches, including capacity building, enforcement, rewarding, and monitoring, emerged as key to achieving these goals.”
Agus Maulidan MSc, Glasgow University
Preparing for EUDR
Deforestation refers to the process of clearing forests for non-forest use, and due to the nature of the products we source and sell, deforestation is a significant risk in our supply chains. Land clearing to increase farming or mining activities are responsible for drastically reducing the area of native forests globally. Forests are an invaluable resource for the planet, playing a critical role in climate change mitigation and biodiversity.
In line with our Net Zero by 2040 roadmap, we have committed to procuring deforestation free products and supporting the prevention of deforestation. With the introduction of the European Union Deforestation Regulation (EUDR), we must prove that any products we export to Europe are deforestation free by the end of 2025. EUDR outlines seven raw materials included in the scope of the legislation; cattle, cocoa, coffee, palm oil, rubber, soya and wood. Despite the implementation of EUDR being postponed by a year, preparations to ensure our compliance took place throughout 2024, as this affects many of our products.
To ensure the products we manufacture are deforestation free, we have been working with suppliers, to ensure we can accurately map the geolocations of farms where raw materials are being grown, and ensuring suppliers also affected by the legislation are doing the same. This is an ongoing, multi-departmental process, including working closely with the relevant suppliers and developing our data management capabilities to provide the administrative proof of compliance.