How Nescafé Prioritises ESG in its Coffee Supply Chain

Nescafé, Nestlé's largest coffee brand, is orchestrating a seismic shift in its global supply chain through the ambitious Nescafé Plan 2030.

This comprehensive strategy is aimed at revolutionising coffee farming practices across more than 20 countries, with a keen focus on regenerative agriculture, greenhouse gas (GHG) emission reduction and improving farmers' livelihoods.

A commitment to sustainable sourcing

Launched in 2022, the Nescafé Plan 2030 represents a bold $1.18bn investment, underpinned by Nestlé's broader commitment to regenerative agriculture and achieving net-zero emissions.

It builds significantly on the original Nescafé Plan established in 2010. 

David Rennie, EVP for Nestlé Coffee Brands, was among those to underscore the urgency driving the initiative following its launch.

"Climate change is putting coffee-growing areas under pressure," he said. "Building on the Nescafé Plan, we're accelerating our work to help tackle climate change and address social and economic challenges in the Nescafé value chains."

Measurable progress in regenerative practices

The second Nescafé Plan 2030 Progress Report, released earlier this year, reveals encouraging strides towards sustainable sourcing.

More than 20% of Nescafé's coffee now comes from farmers employing regenerative agriculture practices, yielding tangible benefits in productivity and environmental impact.

This was based on an assessment provided by the Rainforest Alliance, which monitors farmers across 11 locations where Nescafé sources its coffee.

Further encouraging results included:

• Farmers in Honduras, India, the Philippines, Thailand and Vietnam achieved a 5-25% increase in coffee productivity per hectare compared to 2022
• GHG emissions per kilogram of harvested coffee were reduced by 15-30% through practices such as mulching and optimised fertilisation.

Antonia Wanner, Group Head of ESG, Sustainability Strategy and Deployment at Nestlé, emphasises the holistic approach: "The Nescafé Plan isn't just about producing great coffee – it's also about empowering the communities that grow it. 

"Supporting farmer incomes is a critical element and, in many origins like Vietnam, the programme is helping achieve yield increases up to 25%."

What's more, in 2023 alone, Nescafé distributed 21 million coffee plantlets to farmers, facilitating the renovation and rejuvenation of coffee plots. This initiative not only boosts productivity but also enhances the resilience of the supply chain in origin countries.

Empowering women in the coffee value chain

Nescafé's commitment to ESG initiatives extends to addressing gender inequalities within its supply chain.

The company is actively working to empower female farmers, who face unique challenges in the male-dominated coffee industry.

Pham Phu Ngoc, Agro Service Manager at Nestlé Vietnam, points to Mai Thi Nhung, a coffee entrepreneur based in Vietnam's Central Highlands who joined the Nescafé Plan in 2015.

He says: “I'm proud to have worked in agricultural production management and engineering for more than 34 years, specialising in crops like coffee, pepper, cacao and cashew trees in Vietnam, the second world's leading coffee producer. Improving the lives of female coffee farmers is a truly rewarding aspect of my work with the Nescafé Plan. 

“I'm excited to share the progress we've made with colleagues worldwide to grow incredible coffee and support farmers like Mai Thi Nhung. Coffee is her main crop, but her two-acre farm flourishes with intercropping of pepper and durian trees. 

“This multi-cropping approach increases her income, promotes biodiversity and makes her farm more resilient. Every year, she harvests an impressive quantity of coffee, black pepper and durian.”

Overcoming barriers through education and support

Nescafé Plan 2030 is tackling the multifaceted challenges faced by coffee farmers, including climate change impacts and financial constraints.

In Vietnam alone, the initiative collaborates with more than 21,000 coffee-farming households, many led by women, to promote regenerative practices and provide essential training.

The programme's reach is substantial, with farmer training initiatives benefiting approximately 150,000 farmers across 16 countries. This knowledge transfer is crucial for empowering farmers to make informed decisions and increase their incomes.

As Nescafé continues to transform its supply chain, ripple effects are being felt throughout the coffee industry.

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