What key data do roasters need to know when sourcing coffee?

With an ever-increasing demand for transparency from conscious consumers, sustainability reporting is becoming more prominent in the coffee industry. This pressure comes not only from the end of the supply chain but is also increasingly influenced by regulation.

As part of the European Green Deal, the EU’s Corporate Sustainability Reporting Directive (CSRD) came into force in early 2023, requiring companies – including coffee importers and exporters – to report on the impact of their environmental, social, and governance practices. Using this data, industry stakeholders, organisations, business partners, and consumers can evaluate the sustainability performance of companies.

This is essential for roasters, in particular. They need to receive information about how sourcing coffee has a huge impact on their business, operations, marketing, and branding. However, sustainability reporting is only effective if roasters understand the metrics provided to them.

Nicole Ochojski, Sustainability Reporting Manager at Neumann Kaffee Gruppe, and Annalena von Rhein, Sustainability Manager at Bernhard Rothfos, discuss key information roasters should know when sourcing coffee, focusing on sustainability reports from importers.

You may also like our article on why roasters should diversify their coffee offerings.

The growing demand for sustainability

Sustainability has long been a focal point in the coffee industry, but interest and awareness only grow stronger year after year. A recent study from the International Institute for Sustainable Development found that 43% of coffee consumers say that ethical, environmentally friendly, or socially responsible coffee options influence them. For roasters, this presents an opportunity to tap into a burgeoning market and differentiate themselves by buying sustainably sourced coffee.

However, these practices need to be backed by reliable data to find success and build consumer trust. Although there’s no requirement for sustainability reporting for every business in the coffee industry, a growing number of traders and roasters are publishing reports to present partners and consumers with a clearer picture of the impact of sourcing coffee.

Nicole Ochojski is the Sustainability Reporting Manager at Neumann Kaffee Gruppe, a multinational green coffee service group. “The requirements for sustainability reporting vary depending on the company’s size, type, and location,” she says. “In the European Union, for example, large listed companies have been required to disclose non-financial information for years.”

The EU’s new CSRD requires all businesses (except micro enterprises) to publish sustainability reports that disclose information on the risks and opportunities arising from social and environmental issues in their operations from 2025 onwards.

“When we published our first sustainability report in 2018, it wasn’t because we had to – it was because we wanted to,” Nicole says. “It was our commitment to keeping stakeholders informed about our sustainability efforts in sourcing coffee. But with the upcoming Corporate Sustainability Reporting Directive (CSRD), this kind of reporting will soon become mandatory for us as well, and we’re glad that we started preparing on time.”

How data helps improve transparency

In today’s specialty coffee market, claims about ethically sourcing coffee need to be supported by data. Consumers want clear, objective proof that the products they purchase have a positive social, environmental, and economic impact. This demand also extends to business and wholesale partners, who must work to assure their customers that their coffee is sustainably sourced.

“The purpose of a sustainability report is to inform readers about a company’s environmental, social, and governance (ESG) performance,” Nicole says. “Given the diversity of companies in terms of products, sectors, and geographic locations, the relevant sustainability matters can vary significantly. 

“As a result, there is no universal checklist of information that must be included in every sustainability report. Instead, companies must conduct a so-called materiality assessment, which allows them to determine their specific impacts, risks, and opportunities throughout the supply chain, which they then have to report on,” she adds. “By focusing on the most pertinent ESG issues, companies can provide more meaningful insights into their sustainability efforts.”

The CSRD, which will require more companies to share sustainability data, makes this even more critical. Coffee businesses will now face stricter transparency standards, especially around traceability and efforts to fight deforestation, especially since the EUDR is likely to come into force by the end of 2025 if a one-year delay is finalised.

Key metrics in sustainability reports

Sustainability reports provide roasters with transparency on an exporter or importer’s ESG performance, helping them make smarter sourcing decisions. These metrics allow other stakeholders – like investors, consumers, and business partners – to see the broader impact of a company’s actions beyond just its financial results. 

Because data can be so wide-ranging, many companies either have an independent body conduct the report or create a team of people from various departments. 

“Since we need to gather sustainability indicators and information from our 60 group companies worldwide, compiling the report is truly a collaborative effort,” explains Nicole.

Neumann Kaffee Gruppe published its 2024 sustainability report in early September. The report contains crucial ESG information on various initiatives, including the NKG Verified supply chain programme, which guarantees traceability of coffee sourcing and has been acknowledged by the Global Coffee Platform as equivalent to the Coffee Sustainability Reference Code.

What roasters and consumers want to know

Annalena von Rhein is the Sustainability Manager at Bernhard Rothfos, an importing company of Neumann Kaffee Gruppe. In addition to general information about sustainability setups, strategies, and goals, she says roasters are looking for other key information that shapes their sourcing behaviour.

“Roasters primarily focus on the methods and results of carbon footprint assessments, along with details of sustainable supply chain initiatives like NKG Verified and NKG Bloom,” she states.

Given the ongoing climate crisis, reducing carbon emissions in the coffee industry has never been more pressing. To minimise environmental impact and limit the increase in average global temperatures, more companies are reporting data on strategies to reduce their carbon footprint.

“In 2023, we reduced Scope 1 and Scope 2 emissions by 7% and 27%, respectively,” Nicole says. “Our efforts on farms and the increased use of renewable energy are what drives these milestones.”

The report also states that over 30,000 farmers currently sell coffee to NKG Verified supply chains, which provides green coffee buyers with more insight into the performance of the farms producing their coffees and offers sustainability assurance through internal and third-party audits. 

In 2023, 29.5% of the group’s overall coffee sales volume was also certified, reflecting ongoing efforts to source responsibly.

How sustainability reports help roasters make better sourcing decisions

Sustainability reports play a crucial role in guiding roasters to make informed sourcing decisions. Key data points on environmental and social impacts elicit confidence in their choices and allow them to align their buying practices with their vision for a sustainable future. 

“Roasters can compare sustainability reports from different traders to understand more about the services they offer,” Annalena explains. “They can use the information to help them build or align their sustainability strategies, goals, and targets.”

Beyond their internal decision-making, these reports can also be helpful tools for roasters to communicate value beyond cup quality to customers. As the wave of conscious consumerism continues, roasters can use the reports to demonstrate their commitment to being a responsible business in the value chain.

“The data from these reports also helps roasters better understand the supply chain and can be a stakeholder management tool to carry out risk assessments,” Annalena adds.

Roasters can build trust with customers and elevate their brand reputation by sharing insights from their sustainability reports. This approach allows them to differentiate themselves in a competitive market. For instance, a report might highlight that the coffee comes from farms that have reduced their carbon emissions or actively combat child labour, creating a deeper connection between consumers and their coffee choices.

For example, in its latest sustainability report, Neumann Kaffee Gruppe outlined efforts to eliminate child labour in the coffee industry. The US Department of Labor estimates that at least 17 coffee-producing countries have a risk of child labour, underscoring the importance of addressing the issue.

“Given the multi-dimensional nature of child labour risks and the complexity of global supply chains, addressing it effectively requires collaboration among various stakeholders,” Nicole explains. “This is why, in 2023, we became a member of the ILO Child Labour Platform (CLP) and joined the CLEAR Supply Chains Project.”

The CLP is a cross-sectoral, membership-based alliance of companies led by the ILO. Its objectives are to promote stakeholder exchange, identify obstacles to implementing ILO Conventions, and strengthen cooperative programs against child labour.

Reassuring consumers

Coffee is not immune to consumers’ scepticism of greenwashing. Reports that present clear, number-backed evidence of a brand’s positive impact offer a necessary level of accountability that roasters and their customers can trust.

“Roasters can receive more detailed information about the areas in which we work together or check data in the report that they want to know more about,” Annalena says.

While importers provide valuable data, roasters can create personalised reports to showcase their commitment to authenticity and encourage meaningful conversations about their impact in the coffee sector.

As the coffee industry navigates a rapidly evolving landscape of sustainability expectations, the role of detailed, transparent reporting has never been more critical. For roasters, understanding and utilising these sustainability reports is not just a way to meet consumer demand but a pathway to align their sourcing practices with the ethical and environmental values that increasingly define the market. 

Ultimately, sustainability reports provide more than just data points – they offer the insight needed to foster trust, build lasting relationships across the supply chain, and contribute to a more resilient coffee sector. Embracing transparency is no longer optional; it’s becoming essential for the industry’s future.

Enjoyed this? Then, read our article on the main sustainability issues in coffee.

Photo credits: Neumann Kaffee Gruppe

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