Why coffee brands need to care about more than sustainability certifications

Sustainability has long been a key focus of specialty coffee’s values and ethos, especially as consumers have become more committed than ever to reducing their environmental impact. According to PwC’s 2024 Voice of the Consumer survey, over 80% of consumers are willing to pay an average of 9.7% more for sustainably produced goods – creating a clear asset for business growth and brand loyalty.

To solidify claims of sustainability and build consumer trust, certifications have emerged as a way to reassure buyers that coffee businesses practice what they preach. In an industry where greenwashing and marketing buzzwords are commonplace, this has never been more important.

Simultaneously, “true” sustainability extends beyond certifications. If specialty coffee is to foster a more resilient and equitable supply chain, the shared definition of sustainability needs to be more holistic, including social and economic elements that may be more challenging to measure.

I spoke to Amir Gehl, founder of Difference Coffee, Rick Hindley, the executive director at Podback, and Rachel Peterson, the sales and marketing director at Hacienda La Esmeralda, for their insight.

You may also like our article on why sustainability can be a buzzword in specialty coffee.

The ever-changing definition of sustainability

Since third-wave coffee emerged in the late 1990s, sustainability has been an integral part of the industry. Focusing on working closely with producers, paying prices above the market rate, and tracing coffee back to a specific farm or plot of land have long been key aspects of the industry’s sourcing strategies. 

As the global specialty coffee market has boomed in popularity, the term “sustainability” has become increasingly common. Whether touted on packaging or assigned its own page on coffee businesses’ websites, the term is now used so often that it can quickly lose all meaning, becoming a vague, catch-all phrase that brands are overly reliant on.

But defining sustainability is tricky; it encompasses an ever-growing range of factors, making it difficult for specialty coffee brands to measure and prove their efforts quantitatively. 

Why certifications have become more prominent

Certifications such as Fairtrade, Rainforest Alliance, organic, and UTZ are effective ways to communicate that specific ethical and environmental standards have been met when producing and sourcing coffee. Consumers have quickly learned to look out for them when buying coffee products, often feeling reassured that they are investing in sustainability without fully understanding what practices they entail.

“There are many holes in sustainability protocols that exist today that allow companies to bypass certain regulations,” says Amir Gehl, the founder of Difference Coffee, a capsule company that sources award-winning and exclusive coffees from a number of origins. “At the same time, there is legislation and certifications that don’t quite hit the mark.

“Take Fair Trade as an example of an initiative meant to deliver social sustainability,” he continues. “While it certainly benefits the industry overall, I don’t think the term fully describes what happens in practice, as a layperson would understand it.”

He also notes that specialty coffee, often priced higher due to its quality, isn’t recognised as an indicator of sustainability despite commanding a higher premium than Fair Trade-certified coffee – potentially leading to consumer confusion.

Moreover, as the market becomes increasingly saturated with certifications, it presents a double-edged sword. In theory, they could become more accessible to a wider range of producers, allowing them to differentiate themselves from competitors and increase their income. On the flip side, it can easily confuse both producers and consumers, who have to constantly keep on top of learning about new certifications and what they entail.

Why sustainability and waste reduction go hand-in-hand

Sustainability in coffee is often tied to reducing waste, largely because it’s easier to measure and prove environmental claims. The 2024 PwC survey also found that consumers evaluate how sustainable a brand is based on tangible actions; 40% of them associate sustainability with recycling and 38% with eco-friendly packaging.

Capsules have long been the focus of waste reduction in the coffee industry. The infamous figure that out of the 39,000 capsules produced globally every minute, 29,000 go to landfill sparked a wider transition away from single-use items.

But as consumers increasingly prioritise convenience, capsules remain incredibly popular. According to World Coffee Portal’s 2023 Coffee At Home report, coffee pod machines make up almost 50% of all home coffee machine sales in the UK.

In response to the rise of eco-conscious consumerism, capsule manufacturers and roasters who sell them have adapted to demonstrate a commitment to reducing their environmental impact. Recyclable, compostable, and biodegradable coffee pods have become widely available, but even these terms can be confusing and misleading.

Despite being made from materials like aluminium and low-density polyethylene (LDPE), some local and regional waste facilities are unable to process recyclable capsules.

“Waste collectors don’t always know how to distinguish between plastic and compostable materials, and, therefore, they consider the entire bag to be contaminated,” Amir explains.

Moreover, most compostable coffee capsules cannot be composted at home; instead, they must be taken to a specialised facility that not all consumers will have access to or be aware of.

Reducing the environmental impact of coffee capsules

The environmental problems associated with capsules are bigger than the coffee industry. In order to improve capsule sustainability, significant and widespread changes are necessary to make it easier to dispose of them responsibly and correctly.

Rick Hindley is the executive director at Podback, the UK’s first cross-industry capsule recycling programme. While single-use coffee pods are in high demand, he says consumers still prioritise recycling and sustainability.  

“Capsules require a dedicated recycling system to ensure their constituent materials can be collected and processed effectively,” he explains. He says Podback was launched in 2021 to address this issue and allow UK consumers to recycle capsules through a dedicated service.

“Difference Coffee is one of more than 30 member brands that support the Podback scheme, with our members now accounting for more than 80% of the UK’s coffee pod market,” he explains. “As a member of the Podback scheme, Difference Coffee contributes to the costs of Podback to ensure that its customers can access our recycling infrastructure free of charge.”

Customers can take their used pods in a provided recycling bag to a Podback drop-off point or participating retailers, including nationwide supermarkets, or drop them off at local Household Waste and Recycling Centres (HWRC).

“The plastic and aluminium are given a ‘second life,’ and the coffee is transformed into energy and soil improver,” Rick adds.

Similar to the sustainability journey of many other companies in the coffee industry, capsule brands can also reduce their environmental impact by investing in carbon projects.

“Partnering with Earthly was important for us because we wanted to assess our CO2 production and take action to offset the damage we create so that we can operate a sustainable business that will continue to exist for years to come,” Amir tells me. Through these projects, he explains that Difference Coffee has offset its carbon footprint by 150% and maintained its status as a carbon-negative company since 2020.

Why sustainability must go beyond certifications

While environmental efforts are crucial in the coffee industry, sustainability also includes economic and social factors that are equally important. However, these aspects can be challenging to measure, especially without rigid certification schemes and protocols.

Agricultural value chains, including coffee, can be environmentally, economically, and socially exploitative, and producers tend to suffer the most. For an estimated 125 million people, coffee is their livelihood, but they grapple with low wages and harsh labour conditions, leading to underdeveloped communities and limited growth opportunities. 

A recent study from the Columbia Center on Sustainable Investment found that eight of the ten largest coffee-producing countries had an average coffee income at or below the poverty line. Uganda has the biggest living income gap, where the average coffee producer earns around US $88 annually, while the living income ranges from US $2,000 to US $6,000.

Many coffee brands turn to sustainability certifications to signal their commitment to ethical and fair buying practices, but they often represent just one piece of the larger sustainability puzzle.

The close association of certifications with sustainability can give consumers the wrong impression that if coffee is certified, it’s entirely ethical and sustainable. In reality, while coffee could be certified organic, its supply chain could overlook other critical issues, such as fair wages and deforestation – a hot topic in the industry given the recently confirmed one-year delay to the EUDR.

Taking steps to address sustainability more holistically 

Sustainability is often viewed narrowly, focusing mainly on waste reduction or environmental concerns. However, coffee brands must take a broader approach to achieve a truly equitable and viable supply chain.

“While environmental practices are a key part of sustainability, economic and social responsibility are equally vital,” says Rachel Peterson, the sales and marketing director at Hacienda La Esmeralda, a renowned coffee farm in Panama which provides Difference Coffee with unique, high-scoring lots for capsules. “We offer fair wages to all employees, including harvesters, with wages higher than the average in the country.”

One of the most effective ways to address economic and social challenges is to pay premium prices for quality coffee. Difference Coffee exclusively buys Cup of Excellence, Best of Panama, and Kona Cupping-winning coffees, for example.

“We’re part of a small group of roasters who have pushed prices higher and higher that have helped producers command premiums,” Amir explains. “In turn, they can invest in sustainable agricultural practices and pay higher salaries to their employees in coffee-growing regions.”

Addressing economic disparities is often the first step in tackling wider sustainability issues. It provides much-needed funding and resources to invest in environmental practices and local communities.

“Economic stability from premium prices allows farms to reinvest in better agricultural practices and technologies, which enhances coffee quality and reduces its environmental impact,” Rachel says. “Furthermore, these resources help us preserve large forest reserve areas around our coffee-producing zones, protecting local wildlife.

“We offer scholarships to our workers and their children that support students from primary school to university, empowering them to stay in school and pursue higher education,” she adds.

Sustainability is a highly complex issue, encompassing an ever-growing range of environmental, social, and economic factors. Certifications have emerged as an effective way to assess and verify impact and areas for improvement, but adopting a more holistic approach is also necessary.

Addressing social and economic inequities first and foremost can kickstart the long-term path to sustainability in the coffee industry, providing the necessary resources to invest in climate-resilient and environmentally sustainable practices.

Enjoyed this? Then read our article on whether coffee capsules can be sustainable.

Photo credits: Difference Coffee

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