The Amsterdam-based coffee group is conducting a deforestation assessment with coffee producers in Ethiopia, Papua New Guinea, Tanzania and Uganda to ensure its supply chain complies with EU rules
JDE Peet’s is taking action to ensure its coffee supply chain complies with rigorous new European Union (EU) anti-deforestation rules.
Working with sustainability auditor Enveritas, the Amsterdam-headquartered coffee group will deploy satellite imagery, artificial intelligence (AI) and on-the-ground verification to measure deforestation linked to coffee production in Ethiopia, Papua New Guinea, Tanzania and Uganda.
The move comes after the EU legislated to ban imports linked to deforestation with the Regulation on Deforestation-free Products, which came into effect in July 2023.
The regulation requires companies selling products in the EU considered ‘main drivers for deforestation’ – including coffee, palm oil, soya and wood – to produce a due diligence statement that imported goods have not contributed to forest degradation anywhere in the world after 31 December 2020.
Firms that fail to comply face fines of up to 4% of annual turnover – which for JDE Peet’s would amount to approximately €324m ($347m).
JAB Holding-backed JDE said it will support local authorities, non-governmental organisations and coffee farmers to reforest land where Enveritas requirements are not met.
“We are committed to making sure our supply chain is inclusive, regenerative, and authentic. I am excited that this innovative new programme, which is fully aligned with the EU’s Regulation on Deforestation-free Products, will ensure continued access to the EU market for the millions of smallholder farmers we work with around the world,” said Fabien Simon, CEO, JDE Peet’s.
Europe currently imports more than a third of all coffee produced globally and concerns have been raised that the new rules could lock some coffee producers out of the market.
“The new EU regulation risked significant new complexities and processes in the coffee supply chain which could mean new costs for vulnerable populations least able to afford it, and also risk market access. This innovative collaboration with JDE Peet’s brings together public, private, and philanthropic organisations to address deforestation in a manner which also protects smallholder farmers,” added David Browning, CEO, Enveritas.
Enveritas has verified sustainable practices at more than 250,000 coffee farms around the world and partners with prominent brands including Counter Culture Coffee, Blue Bottle Coffee, Espresso House, Stumptown Coffee Roasters, Origin Coffee and Tim Hortons.
