Nespresso Sustainability Innovation Fund
Nespresso is the pioneer of portioned high-quality coffee and a recognized innovator in the premium coffee sector. The company is committed to creating shared value across the coffee value chain and has been innovating in sustainable quality coffee, from the farm through to post-consumer recycling, for more than two decades. Nespresso has partnered with leading non-profit organizations and development agencies, such as the Rainforest Alliance, FairTrade, TechnoServe, Acumen, Root Capital and USAID, on a range of progressive and high impact programs.
In 2016, Nespresso launched the Nespresso Sustainability Innovation Fund (NSIF), a new funding vehicle to facilitate investment by Nespresso in innovative sustainability initiatives that go beyond its usual business operations. Nespresso has designated an initial USD10 million to leverage external funding through the fund, for specific innovative coffee value chain initiatives in the years 2016 to 2018. Initially the NSIF scope will focus on the revival of specific coffee origins and the resilience of coffee communities and landscapes. Going further, it will also explore opportunities in recycling and the circular economy.
In 2014 they launched the 2020 Positive Cup sustainability strategy with the ambition to create a cup of coffee that has a positive impact on the world; to do this they have set a goal to invest over CHF500 million during this period. They have already started to work at farm and landscape level to build climate resilience and promote natural capital stewardship. This is reflected in the following achievements and future investments that run until end of 2020.
- The sustainable land management of 290,000 hectares of coffee farms via the Nespresso AAA Sustainable Quality program (Rainforest Alliance certified), from which they source 45% of their coffee volume. It was launched in 2003 and now invests around USD35 million per annum.
- The deployment of an extensive agroforestry program in five countries which planted 1.5 million native trees by the end of 2016 (and expected investment around CHF8-10 million through 2020).
- The participation in multi-stakeholder platforms: 'Manos al Agua' in Colombia, a 5-year program aiming at improved watershed stewardship (USD3 million contribution over 2014-2018) and 'Consorcio Cerrado das Aguas' in Brazil aiming at achieving a net positive impact landscape management (USD0.2 million over 2014-2016).