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Person in coffee bush

Coffee

Our Approach

Coffee is among the world’s most-traded raw materials and is primarily cultivated by smallholder farmers in sub-tropical regions. There are human rights and environmental challenges when sourcing coffee and the ALDI SOUTH Group is committed to changing this by fostering fair working conditions and environmentally friendly production in the cultivation of coffee.

One of the ways we do this is by sourcing independently certified products to ensure that producers receive a fair price for their products as well as adapt to climate change and fighting deforestation. We also carry out origin visits to key sourcing countries, participate in projects on the ground and are working to improve supply chain transparency via direct sourcing models.

Our Actions

Certification

Smallholder farmers in coffee-growing regions face multiple challenges, including poverty, commodity price fluctuations and the effects of climate change.  By sourcing from suppliers using the sustainability standards Fairtrade, UTZ/Rainforest Alliance, and 4C Services, we can reassure our customers that we are supporting coffee growing communities and protecting biodiversity. 

Human Rights Risk Assessment

Human Rights SchemaIn 2018, we comprehensively examined the human rights risks within our food and agriculture supply chains. The aim of these assessments is to identify any adverse impacts our company may have on human rights, gain insights into our actual impacts and understand where our greatest level of influence is throughout the global supply chains of the entire ALDI SOUTH Group.

We identified coffee as a raw material with a high risk of human rights violations and consider it to be important to us in terms of leverage.

Human Rights Impact Assessment

We are developing specific measures to prevent or mitigate adverse human rights impacts identified during our risk assessment in 2018. In 2020, we will carry out detailed human rights impact assessments (HRIAs) for three high priority raw materials, including coffee, to identify, understand and assess the potential and actual adverse effects  of our business activities on workers and other affected rights-holders such as community members.

Our Goal & Performance (2019)

Our Goal: The percentage of sustainable coffee is to be steadily increased.

55%

of sustainable coffee tonnage

Our Project & Membership

Women standing infront of coffee plantation
© Fairtrade Germany
Project in Honduras
Fairtrade coffee project

Since 2016, the ALDI SOUTH Group, together with TransFair e. V., has supported 22 Fairtrade certified coffee cooperatives in Honduras, directly benefitting over 4,600 farmers, including over 1,000 female farmers, and their families. The project is implemented by Fairtrade. Through its standards, Fairtrade fosters collective organisation of smallholder farmers in so-called small-producer organisations, for instance farmer cooperatives or associations. With every Fairtrade-certified product and by supporting Fairtrade campaigns, we support collective organisation as well as other benefits for the farmers and their communities. With the Honduras project, we go a step further, supporting the farmers and collective organisation through additional activities.

In the current project phase with 16 cooperatives, the livelihoods and future perspectives of the participating coffee farmers, their cooperatives and families will be improved by:

  • Improved administrative capacities, organizational structures and internal policies of the cooperatives
  • Improved ecological practices contributing to climate change resilience
  • Improved coffee quality and sales under Fairtrade terms
  • Stronger integration of women, youth, children and indigenous groups into decision making processes of cooperatives and advocacy initiatives at community level
  • Pilot initiatives for income diversification and child protection

The project follows up on the rights and protection of vulnerable groups as well as promotes the empowerment of next generation farmers and women in the different organisational processes related to cooperatives, productive and marketing aspects, as well as the search for spaces to achieve knowledge transfer within the organizations.

The project also includes income diversification for women and youth by incentivising cooperatives to develop activities to promote women/youth committees and groups.

Copyright: Fairtrade Germany

 

More on 'Fairtrade Germany'
Logo of Sustainable Coffee Challenge
Since 2020
Sustainable Coffee Challenge (SCC)

In 2020, the ALDI SOUTH Group became a member of the Sustainable Coffee Challenge (SCC). In the SCC, we collaborate with other retailers, traders, governments, NGOs, and research institutions on improving living and working conditions in the global coffee sector.

More on 'Sustainable Coffee Challenge'

Sustainable Development Goals

1 No poverty 2 Zero hunger 8 Decent work and economic growth 10 Reduced inequalities 12 Responsible consumption and production 17 Partnerships for the goals

UNGC

Human Rights

Principle 1

Support and respect the protection of human rights

Principle 2

Not complicit in human rights abuses

Labour

Principle 3

Uphold freedom of association and recognition of right to collective bargaining

Principle 4

Elimination of forced and compulsory labour

Principle 5

Abolition of child labour

Principle 6

Elimination of discrimination in respect of employment and occupation

GRI references

GRI 103: Management approach 2016

Global Reporting Initiative 103-1 Global Reporting Initiative 103-2 Global Reporting Initiative 103-3