sustainability report 5 year plan 2017- 2021 sustainability is, and always has been, a core principle of how we do business at matthew algie. our approach starts with coffee and our commitment to be a dependable partner for the farmers in our supply chains, many of whom operate in environmentally, socially or economically challenging contexts. beyond this, our commitment to sustainability permeates the way we source other products, and ensures that we continually pursue reductions in our environmental impact, create a better place to work and meaningfully invest back into our “coffee community.” 16 lawmoor rd, glasgow g5 0ul 0800 263333 www.matthewalgie.com
co n t e n t s one two three four five six seven eight nine ten eleven o u r s u s t a i n a b i l i t y m a n i f e s t o a b o u t t h i s re p o rt o u r j o u r n e y s o fa r lo o k i n g t o t h e fu t u re s u s t a i n a b l e s o u rc i n g o f co ff e e s u s t a i n a b l e s o u rc i n g o f o t h e r pro d u c t s re d u c i n g o u r e n v i ro n m e n t a l i m p a c t i n v e s t i n g i n o u r pe o p l e e n g a g i n g w i t h o u r co m m u n i t y a w a rd s s t re n g t h e n i n g o u r g o v e r n a n c e 2 4 6 8 12 24 30 40 46 54 56 1 /
1 l e g a w e h i t t a m sustinability manifesto our sustainability manifesto our sustainability journey starts with coffee, a product we have been sourcing and roasting since the 1950s. over the years, we have gained first-hand knowledge of the many challenges faced by coffee farmers. we continue to see how climate change, urban migration and low levels of profitability all threaten the livelihoods of smallholder coffee farmers – and how drastic new ways of working have become a necessity. since the mid 1990s we have pioneered a two-pronged approach to tackle these issues head on. firstly we have transitioned 95% of the coffee we buy to at least one, if not multiple, certifications. secondly we have developed direct, sustained partnerships with key suppliers, working together with them to raise the bar on quality and sustainability. and our commitment to sustainability goes beyond just coffee sourcing - impacting on how we source many other products, operate our roastery and give back to the community. ‘ this report is an opportunity to set meaningful priorities and take genuine and radical steps in the right direction.’ ewan reid, managing director, matthew algie • snr de silva, picking at parcela el higueron, peru • organic washing station on mount elgon, uganda the purpose of this report is to evaluate the work we have done so far - and to shape our direction of travel for the next five years. our intention is to deepen the impact of the work we do – and to formalise the way in which we monitor and report on progress. we recognise that there’s so much more that we could be doing, but see this as an opportunity to set meaningful priorities and take genuine and radical steps in the right direction. thank you for coming on this journey with us.” ewan reid, managing director, matthew algie \ 2 3 / ''
l e g a w e h i t t a m • r i p e n e d c o ff e e c h e r r i e s , a s o c a f e c o o p e r a t i v e i n b o l i v i a 2 about this report 2017 - 2021 where we’ve come from where we’d like to be our vision and the specific goals that we would like to achieve for each thematic pillar between 2017- 2021 are given at the start of each section in the main body of the report. at the end of the report we provide a summary of our governance structure and chosen methodology for monitoring, evaluating and learning as we progress through the five years. we hope that this is the first of many sustainability reports from matthew algie, designed to keep our stakeholders up-to-date with our progress and direction of travel. if you would like to send us any comments or feedback so that we can improve our future communications, please do get in touch via our website: www.matthewalgie.com/contact our starting point in this report is a timeline of the key milestones in our sustainability journey so far. some of these highlights are expanded upon in the case studies included later in the report. we hope this will bring to life our longstanding commitment to sustainability, spanning the five thematic pillars incorporated in our new plan. where we are now our five year plan has been a couple of years in the making and our thoughtful approach to developing these goals has been detailed in the “looking to the future” section and the following chapter on our alignment with the sustainable development goals. our five pillar plan was launched internally at the start of 2017 and we’ve now reached the end of the first year of implementation. this report reviews the progress made in the first year of implementation through the case studies included in each section. \ 4 5 /
l e g a w e h i t t a m del oro cooperative made our first donation to the david williamson rwanda foundation, set up as a memorial to david williamson, our previous owner and managing director. started recycling hessian coffee sacks by partnering with a carpet manufacturer. installation of solar panels on the roof of our roastery. our sustainability journey 1997 2000 2004 2006 launched the uk’s first fairtrade espresso, our “tiki” blend. achieved “investors in people” bronze status 2009 2010 launched the uk’s first triple certified (fairtrade, organic and rainforest alliance) espresso. 2012 transitioned our breakfast tea to fairtrade, followed by our hot chocolate in 2008. 3 first donation to the “friends of coffee foundation,” a charity working with coffee growers in western honduras. started facilitating training days for unemployed young adults taking part in the princes trust’s “get in hospitality” programme. 2016 first annual corporate fundraising challenge, encouraging employees to support our local charity partner, the prince and princess of wales hospice. . 2014 2015 2015 2015 received comic relief funding for a collaborative project focusing on climate change adaptation a nd rainforest alliance certification with farmers in uganda. 2016 started offsetting emissions from journeys made by field staff via a british woodland reforestation scheme with forest carbon. 2016 first annual staff “sustainability week” engagement campaign. scooped top prize in the 2 degrees awards in the “water management” category for ~our project with san juan del oro, a peruvian coffee cooperative. \ 6 7 /
4 i l e g a w e h t t a m looking to the future defining our sustainability agenda compiling our five year plan for sustainability has been a multi-stage process to ensure we have consulted the relevant stakeholders and prioritised our activities effectively. 1. detailed review of approach and progress to date. define strategic pillars of sustainability at matthew algie. 2. benchmarking against competitors, customers & “best practice” 3. stakeholder mapping & prioritisation based on level of “influence” and “interest” to understand engagement levels 4. mapping of opportunities 5. prioritisation of opportunities based on materiality matrix: “importance to stakeholders vs. importance to matthew algie” 6. drafting of goals and review by stakeholders • th e s o l y c a f é c o o p e r a t i v e i n n o r t h e r n p e r u \ 8 alignment with the united nation’s sustainable development goals (sdgs) compiling our strategy presented an opportunity to shape our activities so that we contribute towards the global priorities and aspirations detailed in the sdgs. the adjacent table details the specific areas that our strategy has been designed to contribute towards, making specific reference to the recommendations given in the sdg industry matrix for food, beverage and consumer goods. 1. no pove(cid:31)y end pove(cid:31)y in all its forms everywhere coﬀee bought from “vulnerable” producer groups increases in line with sales growth targets. 6. clean water & sanitation ensure availability and sustainable management of water and sanitation for all pursue precision agriculture technologies that encourages maximize productivity whilst minimizing the use of water. 13. climate change take urgent action to combat climate change and its impacts suppo(cid:26) farmers to develop more climate resilieht agriculture. take steps to measure, reduce ahd repo(cid:26) climate exposure ahd progress oh actiohs to cohfroht climate chahge, cohtihuihg to ihcrease the level of trahsparehcy ahd cohsistehcy of repo(cid:26)ihg across the ihdustry sector. . . … … … … … … … … … … … … … … … … … … … … … … … … … . . … … … … … … … … … … … … … … … … … … … … … … … … … . . … … … … … … … … … … … … … … … … … … … … … … … … … 2. zero hunger end hunger, achieve food security and improved nutrition and promote sustainable agriculture collaborate with farmers, food processors and traders to increase productivity, storage, logistics and market eﬀiciency, thereby empowering them to enter / remain in the company’s value chain by producing high quality, safe and nutritious foods at competitive prices 8. decent work & economic growth promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. prioritize eradication of modern day slavery and child labour in agricultural and production supply chains. promote agricultural careers as aspirational and requiring people with a wide range of technical skills. provide targeted internships for young people from disadvantaged backgrounds in order to promote social mobility whilst also enhancing company peƒormance through increased workforce diversity. . . … … … … … … … … … … … … … … … … … … … … … … … … … . . … … … … … … … … … … … … … … … … … … … … … … … … … 15. life on land protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat dese(cid:31)ification, and halt and reverse land degradation and halt biodiversity loss. evaluate sourcihg ahd packagihg practices ahd determihe ways to mitigate ecosystem degradatioh ahd biodiversity loss. . . … … … … … … … … … … … … … … … … … … … … … … … … … 9 / 3. gender equality achieve gender equality and empower all women and girls provide female entrepreneurs and small business owners with training, suppo(cid:143) and access to markets and supply chains 12. responsible consumption & production ensure sustainable consumption and production pa(cid:30)erns. increase energy eﬀiciency across the value chain including sourcing, manufacturing, packaging and logistics. reduce food and solid waste along production and supply chains, in collaboration with other stakeholders including suppliers, consumers, retailers and governments. reduce packaging and increase recycling of end products and by-products of the production process. 17. pa(cid:31)nerships for the goals strengthen the means of implementation & revitalize the global pa(cid:31)nership for sustainable development ehgage ih multi-stakeholder ihitiatives advahcihg sustaihable developmeht.
l e g a w e h i t t a m 4.1 our five strategic pillars 1 2 3 4 5 one two three four five 12-23 24-29 30-39 40-45 46-55 sustainable sourcing of coffee sustainable sourcing of other products treatment and delivering end relationships consistency in our approach to environment our people community reducing our environmental impact at our ensuring matthew algie is a great place fulfilling our social responsibility by to work and that we engaging with our with stakeholders along the coffee supply chain. this sustainable sourcing operational across our espresso sites invest in our staff community focuses on ensuring warehouse, environmental, machines and social and economic internal products sustainability \ 10 11 /
l e g a w e h i t t a m sustainable coffee sourcing sustainable sourcing of coffee believing in the impact that certifications like fairtrade can have, both in terms of instilling best practice and in terms of bringing about positive transformation in communities, we have spearheaded the extensive use of certifications in the uk and irish coffee sectors. we launched the uk’s first fairtrade espresso in 1997, closely followed by the first triple (fairtrade, organic and rainforest alliance) certified espresso in 2004. building on this unrivalled, specialist supply chain, we have developed meaningful, long-term relationships with coffee cooperatives and farmers, consistently sourcing from many of our suppliers for between 5 and 20 years and visiting them once every one or two harvest seasons. our partnerships with suppliers provide greater reassurance that we will get the quantity and quality of the coffee we want, and allows farmers to confidently plan and make investments in their operations. this approach has presented opportunities for collaborations to address specific challenges, for example our award winning climate change adaptation programme with the san juan del oro cooperative in peru. • traceability label on coffee sacks at gumutindo cooperative, western 5 • picking coffee cherries at parcela el higueron, northern peru • female farmer member of sol y café cooperative, northern peru our broad objectives • address the needs of stakeholders in the supply chain to mitigate supply risks & promote development through trade for our smallholder producer partners. • continue using both certifications & strong direct relationships to achieve sustainable supply chains. • be a positive influence in the supply chain by encouraging best practice by suppliers and advocating transparency & knowledge sharing. \ 12 13 / progress in 2017 included defining our criteria for supplier categorisation, which will form the basis for our consolidation plans, strategy for collaborative programmes and means for assessing impact. we also celebrated “20 years of fairtrade” with guests, here in glasgow, from coffee producers in east timor and png as well as visiting suppliers in honduras, nicaragua, peru & bolivia. furthermore, we kicked off a new collaborative project with our bolivian supplier, asocafe, in partnership with the fairtrade foundation and jersey overseas aid. our goals consolidate our supply base 1. increase proportion of coffee purchased from “core” and “developing” suppliers by 5% 2. provide “core” suppliers with volume commitments prior to commencement of the next harvest season (up to 50% of forecasted volume). 3. proactively support suppliers to transition from “developing” to “core.” champion certifications 1. more than 90% of coffee purchased consistently has at least one certification. 2. continue progression towards 100% rainforest alliance certified coffee in rfa blends. achieve mutual benefits through collaboration 1. partner on 3 new projects at origin with selected “core” and “developing” cooperatives. improve knowledge sharing and understanding 1. visit 100% of “core” producer partners and 50% of “developing” suppliers. 2. increase our suppliers' understanding of our priorities & requirements, the uk coffee market & end consumer, and, the other suppliers we choose to work with. 3. 100% of coffee containers contracted must meet our new traceability code of practice. 4. embed our approach and information requirements when sourcing microlots for our hand- roasted range.
l e g a w e h i t t a m ethiopia high quality naturally processed coffee in ethiopia • coffee cherries almost ready for harvesting • dried naturally processed cherries • farming family, addisu & nagale shoroka at the kilenso mokonisa cooperative, ethiopia "natural” processing, where the beans are dried inside the coffee cherry flesh, is a traditional method which is estimated to reduce the water required for processing by 72 litres per kilogram of roasted coffee. we have been sourcing coffee from the oromia region in ethiopia, the celebrated birthplace of coffee, for 16 years and developed close ties with our suppliers in this area. one such supplier is killenso mokonisa, a community- level farming group that sits within the oromia coffee farmers co-operative union umbrella. killenso mokonisa coffee has traditionally been processed for export using a “wet” processing method. this process of removing the coffee cherry flesh before drying the beans uses a vast amount of water and produces waste water that must be treated before it is released back into the environment. however, water is an extremely valuable resource in ethiopia, with climate change increasing the risk of water shortages which would impact farmers’ livelihoods as well as community health and sanitation. therefore, we wanted to support killenso mokonisa farmers in reducing their dependence on “wet” processing by buying more “naturally” processed coffee. “natural” processing, where the beans are dried inside the coffee cherry flesh, is a traditional method which is estimated to reduce the water required for processing by 72 litres per kilogram of roasted coffee. “natural” processing has the added benefit of providing new and interesting flavours – a prospect we found particularly exciting given the heirloom coffee varieties grown in ethiopia! nevertheless, controlling the quality of naturally processed coffee is a more complex process, requiring the right skills and equipment to be carried out effectively. a two-year project marking a deepening of supply chain relationships and involving joint investment from our customer, m&s, the fairtrade foundation and ourselves, commenced in early 2015. to facilitate high quality natural processing, the partners funded the construction of 120 raised drying beds for even drying of the coffee and 1,550 farmers were trained in best practice. our in-house assessments demonstrated the impressive quality improvements achieved in the following crop and, once we had incorporated this coffee into a bespoke blend for our customer, the addition of the naturals contributed to a market-leading independent campden sensory assessment. 5.1 \ 14 15 / ''
l e g a w e h i t t a m 5.2 honduras information & communications centre in honduras in early 2015, we had the opportunity to facilitate a project that brought together a customer, passionate about great tasting coffee, with the community dedicated to growing their beans. ground espresso bars is a family owned business founded in northern ireland. interested in finding out more about the origins of their coffee, and opportunities to invest back into these communities, we travelled to western honduras with ground and visited the capucas community. meeting with the coffee cooperative here, cocafcal, and a local charity, the fundacion amigos del café (or friends of coffee foundation), ground decided to donate towards the construction of a computer learning centre. in march 2016 we travelled to capucas with ground once again for the inauguration ceremony, which was a fantastic celebration of the partnership. the computer centre is equipped with 30 new computers which are used for it classes for local school children, something we take for granted but is still relatively unique in honduras. furthermore, the centre’s partnership with the university of honduras means that young people in this rural community can now undertake distance learning higher education courses for the first time. ground was the deserved winner of the belfast telegraph business award for corporate social responsibility in 2016 for their involvement in the project. ”we chose to donate to this project initially as we’ve been so lucky to see our business grow partially on the back of great coffee created by great producers, and i felt that it was our duty and responsibility as an end user to give back something to the community that helps us and our business thrive.” karen gardiner, co-founder and director of ground. • santa rosa, honduras 17 / \ 16
l e g a w e h i t t a m “people want to be part of cocafcal because the co-op helps the community and their families.” omar rodriguez, general manager cocafcal cooperative during your time at the cooperative, what have been the biggest successes? what are you most proud of? bringing people together is being successful, you know, working together. we have worked as a community to develop this area in terms of education, health and also access to the market for coffee. bringing all these things together is something that’s very important. how do you help the farmers improve the quality of their coffee? you can create a good cup of coffee by working in the plantation. we figured out that none of our members were working to develop the soil, but if you work with the soil in the organic way, you can affect the quality in a good way. and then of course processing in the right way as well. we have a facility that processes all the coffee for our members. also, a facility to dry the coffee in african beds for them and good storage to keep the quality. we are trying to work on each step. it was really good to host you in glasgow and dublin when you came over to visit matthew algie and our customer, ground espresso bars. what did you ﬁnd useful about the visit? in the past, we would send our coffee but we didn’t know who the buyer was, but now we know that the coffee goes to matthew algie and then ground. there’s more transparency in the chain. the valuable thing for me to understand is that it’s also hard to sell the coffee and there is a lot of competition, so we need to work together to develop the market. we’ve seen ground’s cafes and all the marketing that they did promoting honduras and capucas as an origin. for us, we feel very proud and we appreciate this, because you know in the past nobody put honduras as an origin, and now you are helping to do that. here in honduras, coffee is everything and the pillar of the economy. we’ve been very fortunate to facilitate ground’s involvement in the ict centre project in the capucas community. what impact has this project had?” young people here don’t have access to university and so this is a big step for them, an improvement for the community, and this is the first rural university in honduras. also the courses are focused on careers that are involved in coffee, like technical skills to administrate the coffee business. so this is really nice and very effective. our members were very impressed with how the industry was worried about how to educate our people. now we have 30 students that are learning different things and we’re very happy that this project is completed - thank-you for helping us! omar rodriguez, general manager, cocafcal • omar and karen (ground) at ground café in dublin 19 / 5.3 relationships with suppliers interview with omar rodriguez we started sourcing from cocafcal, a cooperative in western honduras in 2001 and have developed a close trading relationship with them ever since. estelle macgilp, our green coffee buyer interviewed omar rodriguez, general manager of cocafcal, during our recent visit to honduras to give an insight into our supply chain and the way we work with cooperatives. could you tell us about your career in coffee and about cocafcal? i’ve been involved in coffee since i was born – my whole life! i grew up here in capucas in the middle of the coffee plantation. here in capucas, people started growing coffee 200 years ago, so we have a long history in coffee. the cooperative started in 1999 with 55 members and now we have 1,000 members. \ 18 ''
l e g a w e h i t t a m '' juan mamani (pictured left), a member of the san juan del oro cooperative, saw his yields drop by more than 75% due to the “roya” outbreak. to help him become more resilient to these challenges, the project assisted him in planting new shade trees so that he can build the right micro-climate for his coffee and stabilise the steep terrain on his farm. furthermore, he has planted new coffee trees which he hopes will thrive with his careful treatment with organic friendly fungicides and pesticides.'' peru adaptation to climate change with san juan del oro cooperative in peru in 2013 we visited our long-standing producer partner, the san juan del oro cooperative in southern peru and met farmers whose yields had fallen by 70% due to “coffee leaf rust”; a disease which had flourished with the onset of milder winters and harder rains. in response, we and other supply chain stakeholders designed a programme to deliver climate adaptation for farmers and therefore, more resilient coffee farming livelihoods. the project brought together one of our customers, marks & spencer, an ethical trading organisation, twin, the fairtrade foundation and ourselves, to put a package of support together for 146 cooperative members. this capacity building included investment in farmers’ knowledge, skills and equipment. 5.4 improved the project farmer’s understanding of adaptation techniques and used rainforest alliance’s climate change module as a basis for 28 practical training sessions on demonstration farms. farmers also received training materials, such as a “climate change and coffee” manual. as a result, 133 farmers validated their compliance with the climate change module best practice standards. to address some of the specific challenges around water, farmers received training on effective water stewardship on their farms as well as tanks and pvc tube kits to assist with effective water management. farmers were supported in mapping their farms to identify water sources, buffer zones and areas at risk of erosion. building on this, they were incentivised to plant native trees in the buffer zones to protect water sources. alongside the benefits to environmental resilience, the water management practices have delivered social benefits for coffee households including better health and sanitation. the successes of this programme led to the project scooping top prize at the 2degrees awards 2015 in the category “water management” as well as a broader, three-year, project, working with more coffee farmers in peru and including activities to empower and engage young people and women in the community. • coffee farmer juan mamami, member of the san juan del oro cooperative • coffee landscape. peru • coffee cherries almost ready for harvesting \ 20 21 /
l e g a w e h i t t a m celebrations & collaborations 2017 triple certification, sustainable agriculture and disease resistance with the asocafé cooperative with our long term projects in uganda and peru coming to a close in 2018, we were excited to launch our new collaborative programme with our primary supplier in bolivia towards the end of 2017. we’ve been buying coffee from the asocafe cooperative since 2006 and have therefore been greatly concerned by the dramatic decline in coffee availability from them in recent seasons. farmers here have faced a decline in yields due to the prevalence of diseases which have thrived in the unfavourable conditions brought about by climate change. our project with the fairtrade foundation, and utilising grant funds from jersey overseas aid, will provide farmers with the skills and equipment to sustainably increase their yields. for example by establishing disease-resistant coffee tree nurseries and producing their own organic fertilisers. furthermore, we’re assisting the cooperative to transition to triple (fairtrade, organic and rainforest alliance) certified coffee. 20 years of fairtrade in 2017 we celebrated 20 years of fairtrade - twenty years having passed since we launched the uk’s first fairtrade espresso. to celebrate this commitment, we hosted fairtrade coffee producers from east timor and png, as well as two fairtrade representatives from east asia. employees from all parts of the business were encouraged to come along and hear our guests bring the fairtrade story to life and talk about the impact fairtrade has had for their organisations. belonging to the fairtrade system for so long brings loyalty and commitment between us and our suppliers, leading to a mutual understanding of each other’s requirements. to see the cooperatives, that we have worked with for so long, grow and develop into successful producer organisations through selling fairtrade coffee is extremely rewarding. estelle macgilp, coffee buyer, matthew algie \ 22 5.5 • washing coffee at the processing facilities at asocafe • coffee drying on patios in the bolivian sunshine at asocafe 23 / ''
i l e g a w e h t t a m other products sustainable sourcing of other products 6 besides coffee, we work with carefully selected third party suppliers to offer customers a range of coffee machines, and through our espresso warehouse catalogue and e-commerce website, we provide a broad selection of coffee bar drinks, snacks, hardware and equipment. reflecting our commitment to sustainability in coffee, we are determined to offer customers products that are more sustainable in our espresso warehouse and machine ranges. for example, using sustainability certifications and considering the downstream environmental or health impacts of a product. we’re keen to integrate this commitment to sustainability into the purchases we make for our operations as a company. we recognise that there’s an opportunity for us to formalise the way that we approach this, and therefore better prioritise sustainable products. our broad objectives • be a positive influence in the supply chain by encouraging suppliers to move towards “best practice” in sustainability. influence customer & consumer choice to promote eating a well- balanced, nutritional diet & reducing our collective environmental impact. • demonstrate strategic alignment of our approach across all products. • influence customer & consumer choice to promote eating a well-balanced, nutritional diet & reducing our collective environmental impact • ensure our procurement of internal products and packaging prioritises sustainable sources and reduces the environmental impact of our operations. demonstrate strategic alignment of our approach across all products. our goals supplier management 1. implement formal method for supplier prioritisation and risk assessment based upon future business requirements and sustainability objectives. giving more sustainable options 1. review where there are opportunities for including healthier alternatives in our range. 2. consider opportunities for offering customers a more environmentally sustainable alternative. packaging 1. seek opportunities to reduce packaging wherever possible and to transition away from non-recyclable packaging. 2. all changes to existing or new product packaging will be assessed from a carbon footprint and recyclability standpoint. human rights 1. share information with key suppliers on best practice in the prevention of human rights abuses in their operations and supply chains sustainable purchases for internal operations 1. all office-based employees use reusable (instead of disposable) cups. 2. define sustainability criteria and guidelines for purchases of products and services that we use internally. e s u o h e r a w o s s e r p s e m o r f r e k a m e e ff o c x e m e h c • \ 24 25 /
l e g a w e h i t t a m tea & hot chocolate “ consistency in our approach to quality and ethics across these categories, means our customers do not have to compromise in these other areas and they can present a clear and uniform stance to consumers.” 6.1 sustainable sourcing of tea & hot chocolate being more removed from the raw material suppliers and having less influence over the specific approach taken means our approach in this area relies upon: • selecting direct suppliers that have similar values and take our preferred approach. • using certifications such as fairtrade, organic and rainforest alliance to give independent validation that the raw materials have been farmed using socially, economically and environmentally sustainable practices. certifications can also offer traceability on these materials so we know the farms it has come from. we intend to further this approach by working more closely and innovatively with our selected suppliers and prioritising certifications where possible. this should have the dual benefit of allowing us to showcase the provenance of our products whilst also better addressing the sustainability challenges faced by our supply chain stakeholders. ensuring sustainable sourcing of tea, cocoa and sugar is of great importance to us as these represent key raw material ingredients in the hot beverages that accompany our coffee offering. consistency in our approach to quality and ethics across these categories, means our customers do not have to compromise in these other areas and they can present a clear and uniform stance to consumers. these raw materials share characteristics with coffee, particularly in the sense that they’re often sourced from farmers in the developing world and there may be common sustainability risks associated with them, such as the impact of climate change on yields or the risk of human rights abuses for impoverished workers on farms. whilst we’d like there to be complete synergy between how we source coffee and how we source these other materials, this is difficult to achieve because we do not manufacture these products ourselves, but rely on trusted third party suppliers. furthermore, the supply chains are more complex, with raw materials being amalgamated and undergoing processing by an intermediary before they’re ready to be utilised for manufacturing, and the finished products combining multiple ingredients. • white & dark hot chocolate by espresso warehouse \ 26 27 /
l e g a w e h i t t a m espresso warehouse espresso warehouse product range the range of products showcased in our espresso warehouse catalogue and e-commerce website is designed to offer our customers a convenient one stop shop. we recognise that it’s also our responsibility to promote more sustainable products through the range, giving customers the opportunity to use and sell products that have an environmental or social benefit. healthier alternatives some of our snack products are designed to be better for the end consumer. for example, our peppersmith fresh mints, which use mint grown in the uk and have recyclable fsc accredited packaging, are sugar-free and are accredited by the british dental health foundation for being actively good for your teeth. we’ve also introduced sugar free flavoured syrups which customers can substitute for the classic syrups and help consumers to reduce their sugar intake. prioritising local suppliers sourcing products for our espresso warehouse catalogue from small and medium sized food businesses in the uk supports our local economy and helps reduce the carbon footprint associated with our products. for example, we source some of our own brand organic biscuits from island bakery, an artisanal bakery based in tobermory on the isle of mull. our intention over the next five years is to make these choices a more strategic part of how we improve and develop our offering to customers. 6.2 “ some of our snack products are designed to be better for the end consumer.” promoting reusable cups disposable cups offer consumers convenience, but it’s now well documented that, though most of these cups are technically recyclable, only 1 in 400 are thought to be recycled because of the complexity of recycling the combined paper and plastic film lining. from an environmental perspective, the best action to take is to transition away from disposables, which is why we offer keepcups in a range of colours and sizes to customers. these are a re-usable alternative to paper cups that are also recyclable. the product presents opportunities to further encourage behaviour change, for example by offering consumers a discount or loyalty reward for using their reusable cup in store. in 2017, we took the decision to remove disposable cups from our glasgow offices wherever practical. recognising that glasgow staff would need to adjust to this new way of working, we offered employees free keepcups if they signed up to our “reusable cups pledge”. as a result, 146 employees received a free keepcup to use in and outside of work. • squirrel sisters raw bars from espresso warehouse • keepcups from espresso warehouse \ 28 29 / ''
l e g a w e h i t t a m 7 environmental impact since the mid-2000s, we’ve been investing in infrastructural improvements to reduce our impact here in the uk reducing our environmental impact we know that climate change is having damaging impacts on global coffee production, causing a decline in yields, higher production costs and lower quality berries. this trend is set to continue, because sustained temperature rises and increased climatic variability will reduce the total area suitable for coffee production and increase the instances of pests and diseases. we have seen these worrying impacts first-hand, with drastic consequences for our producer partners. we therefore have every reason to take a proactive and holistic approach to ensuring mitigation and adaptation to climate change in every relevant area of our operations. since the mid-2000s, we’ve been investing in infrastructural improvements to reduce our impact here in the uk, and whilst there are still many opportunities for making further improvements, we’ve already capitalised on much of the low hanging fruit, helping to make our business far more resource efficient. we therefore are increasingly using our robust iso 14001 certified environmental management system to plan more innovative and creative interventions. our broad objectives • continuously improve our use of resources, introducing a circular economy approach wherever possible, so that we operate increasingly efficiently. • many of the “big” and “quick” wins at our glasgow premises have already been implemented and so we need to focus on innovation and new areas of activity where we can optimise our impact. in particular, employee engagement to inspire behaviour change and considering our impact beyond glasgow. our goals reduce waste • reduce percentage of waste to landfill to less than 1% of total waste • reduce total waste per tonne of roasted coffee by 5% reduce energy consumption • reduce our net co2 emissions per tonne of coffee roasted by 10% • no increase in our absolute electricity usage • reduce our gas usage per tonne of roasted coffee by 5% • increase the fuel efficiency of journeys driven by field staff by 10% inspire behaviour change • at least one employee engagement campaign per year which reaches 100% of employees environmental management system • maintain iso 14001 certified environmental management system • train environment committee so that they are equipped and empowered to be ambassadors for change reduce water usage • reduce the amount of non-production water used per £1,000 of company turnover by 5% \ 30 s t n a l p e e ff o c • 31 / ''
measuring environmental impact carbon footprint in 2016 & 2017 by scope • 2016 scope 1 scope 2 scope 3 • 2017 474.37, 22% 1,312.73, 60% 390.31, 18% 504.74, 22% 1,396.22, 62% 349.81, 16% i l e g a w e h t t a m 7.1 2017 carbon footprint in 2016 & 2017 by source inward coffee bound deliveries 3% other 3% plane travel 8% gas 22% outward bound tnt deliveries 16% purchased electricity 16% leased vehicle fuel 30% our carbon emissions five year goal focuses on “net” emissions, meaning we account for the emissions we offset. through a scheme with our fuel card provider and forest carbon, we have financed tree planting in the uk to capture co2 and offset the emissions from the journeys driven by field staff. across the two years, we have contributed 1,314 trees to the scheme, helping to compensate for some of our environmental impact whilst also making a contribution to improving natural biodiversity in the uk. taking account of this offsetting, our net emissions per tonne of coffee roasted decreased from 857 kg co2e/ tonne to 831 kg co2e/ tonne. this constitutes a 2.6% decrease, meaning we’re on track for reaching our 5 year goal of a 10% reduction. ‘‘ forest carbon organise for 100% co2 capture through tree planting schemes in the uk that are assured under the woodland carbon code or a leading international carbon standard.’’ though we have undertaken carbon footprinting exercises in the past, this report marks the beginning of a process of formally measuring and reporting annually on our footprint for our premises in glasgow. we completed the exercise for our baseline year, 2016, by working in partnership with the university of edinburgh and the carbon trust. we replicated this best practice methodology in preparing our report for 2017. our reporting methodology is based on the greenhouse gas protocol and we have categorised the emissions into three areas – scope 1, 2 and 3 – accordingly. scope 1 and 2 relates to direct emissions sources (i.e. gas and electricity usage), whilst indirect scope 3 emissions includes business travel, water consumption, waste, losses during electricity distribution, fuel consumption in vehicles and logistics (product distribution). our carbon footprint for the 2016 calendar year was 2,177 tco2e and in 2017 it was 2,251 tco2e. the findings tell us that, consistently across both years, there are four key areas that contribute over 85% of our carbon footprint – namely, fuel used in leased vehicles for field staff, gas use, electricity usage and product deliveries to customers. these findings reinforce our strategic prioritisation within our five year goals. carbon offsetting comparison of top 4 emissions 191 140 250 200 150 100 50 0 300 250 200 150 100 50 0 ) e n n o t / e 2 o c ( y t i v i t c u d o r p t s n i a g a d e k r a m h c n e b s n o i s s i m e • 2016 2017 leased vehicle fuel gas electricity tnt deliveries 33 / ) e 2 o c g k ( t n e l a v i u q e e d i i x o d n o b r a c • \ 32 ''
l e g a w e h i t t a m machine life cycle measuring and understanding our environmental impact our wide-ranging machine offering is something we’ve worked hard to develop in partnership with our selected suppliers. we’re particularly proud of the service expertise we’ve developed alongside, meaning, wherever possible, our fleet of field service engineers and technicians in our repair centre, fix and refurbish this equipment. this unique way of working represents an environmental benefit because it is a resource efficient approach that minimises waste and keeps the materials in use for as long as possible. recognising these benefits, we want to instil this “circular” way of working more broadly. we’ve used a visual product life cycle approach to understand the environmental aspects and impacts of our machines, including the things we’re doing well, and the areas where we could further improve. taking the elektra barlume 3-group espresso machine as a case study we looked at the inputs and waste at each key stage in the life cycle (as represented in the diagram) and then assessed our successes to date and further opportunities for improvement. ‘‘ this unique way of working represents an environmental benefit because it is a resource efficient approach that minimises waste and keeps the materials in use for as long as possible.’' third party manufacture transport to ma in-house testing transport and install use breakdown repair retirement successes to date opportunities for improvement refurbishment: we re-use all machines and machine parts where possible. this reduces waste because it “closes the loop”, maximising resource efficiency. increasing phone fixes: customers register faults with their machines with our customer services team over the phone. we have trained our customer services team to be able to problem solve with the customer remotely to hopefully find a solution to the problem without needing to send an engineer out. by increasing our phone fix rate we’re providing a great service to customers and reducing the number of miles engineers have to travel. packaging: the same packaging from the machine supplier is re-used when we send these products out to customers. design for convenient refurbishment: we make suggestions to our suppliers to design changes that will help make the machines easier to refurbish. reducing “failed” installs: a proportion of our machine installs cannot go ahead once the engineer reaches the customer site. reducing how often this happens would reduce the miles travelled by our engineers. energy efficient journeys by engineers: we could do more to improve the efficiency of the journeys taken by field engineers, for example by improving driving style or considering other types of vehicles such as electric. machine efficiency: could we more proactively collaborate with our suppliers to make designs more energy and water efficient? this would have the added benefit of making machines more commercially appealing to customers. recycling of machines: as far as possible we recycle machines and individual parts, including used filters and waste electrical and electronic equipment (weee). refurbishment at ma \ 34 7.2 • espresso! • life cycle of elektra barlume 3-group espresso machine 35 / ''
l e g a w e h i t t a m 7.3 coffee waste creating value from coffee waste though we do not produce significant volumes of coffee waste on site in glasgow, we recognise that used coffee grounds are an important downstream environmental impact of our operations. in the uk alone, it’s estimated that we produce 500,000 tonnes of waste coffee grounds each year. though grounds can be composted or sent for anaerobic digestion, if not segregated appropriately this waste stream can be sent to landfill instead. in landfill, the grounds produce methane as they degrade, a greenhouse gas that is known to be far more harmful than carbon dioxide. we intend to be a part of the solution to this problem by: • educating our customers about the importance of good waste segregation, including separate food waste processing • improve understanding of the value that can be derived from coffee waste from coffee waste. biochar is created using pyrolysis, a thermochemical conversion of biomass using very high temperatures and an oxygen depleted atmosphere. it is often produced alongside liquid and gaseous biofuels. the hope is that the resulting biochar is a solid, carbon rich material which can be utilised as a soil conditioner and to sequester carbon. the research was carried out at the university of edinburgh and it demonstrated that our waste coffee could be successfully transformed into carbon-storing biochar which had the potential to be used for horticultural and agricultural applications. additionally, the oils produced in the process were analysed and they included a number of interesting compounds such as liquid biofuels and potential sources for platform chemicals. we hope these findings will help educate the industry more broadly about the value of coffee waste and potentially inspire others to make this process a commercial reality. with this second point in mind, we successfully applied for funds from the biofuel development fund and partnered with the scottish biofuel programme to facilitate research into the potential for creating biochar in the uk alone, it’s estimated that we produce 500,000 tonnes of waste coffee grounds each year. \ 36 • sacks of coffee, peru 37 / ''
l e g a w e h i t t a m resource efficiency resource efficiency: our progress over the last five years (2013 – 2017) since 2013 we've made great progress - we're using the earth's resources more sustainably, minimising the amount of waste that we create and becoming a more efficient business. 30,000kwh renewable electricity generated by the solar panels in our factory since 2014. we are roasting 26% more coffee than we were in 2013 but using = 9% less gas 16% less water 23% less electricity per tonne of coffee roasted • our hand roaster • our coffee weighing scales, roastery 7.4 we’re producing 30% less waste per tonne of coffee roasted and 74% less general waste per tonne of coffee roasted than we were in 2013. \ 38 39 /
the goals bring a renewed focus to our role in protecting our employees’ human rights, improving employee wellbeing and fostering a more inclusive business culture. 8 investing in our people l e g a w e h i t t a m our broad objectives our goals investing in our people at matthew algie we’re committed to making sure matthew algie is a great place to work and enabling our people for success. this approach has driven our attainment of investors in people certification and engrained the processes we use for staff engagement such as our culture survey, company briefings and employee forum. our five year goals in this pillar sit neatly alongside our human resources strategy and re-engineered training process, which were designed and implemented in 2016 to further instil our core “epic” values – ethics, passion, integrity and collaboration. furthermore, the goals bring a renewed focus to our role in protecting our employees’ human rights, improving employee wellbeing and fostering a more inclusive business culture. • invest in skills development and in instilling good management practices in alignment with the investors in people benchmark. this will enable staff to contribute to the success of the business to a greater extent and to ensure that they are enthusiastic brand ambassadors. • uphold and protect the human rights of employees and provide equal opportunities for all. • continue to improve the way that we listen to and act upon employees’ feedback. • care for our employee’s physical and mental wellbeing. skills and employee development employee wellbeing • achieve investors in people silver accreditation. • absenteeism due to sickness less than 3%. • increase in number of roles filled internally to 20%. • 12.5% of workforce take up cycle2work scheme. • promote healthier lifestyles through at least one targeted internal campaign per year. diversity and inclusion • offer work experience scheme for young people where uptake is equivalent to 2% of workforce. • report our gender pay gap on an annual basis • reduce the ratio of agency workers to fulltime staff to 1 in 50 employees. employee engagement • response rate to culture survey consistently over 80%. • meet industry benchmark for “employee engagement” in annual culture survey. • employee forum members have the skills they need to represent the workforce. fair treatment and protection of human rights • percentage of staff logging employee grievances at less than 1% per year. • supervisors and managers receive training on the prevention of modern slavery in the workplace. 41 / • some of our sales and training team hearing about capucas cooperative in honduras from manager, omar rodriguez \ 40 ''
l e g a w e h i t t a m there were an estimated 40.3 million victims of modern slavery in 2016 and the most robust estimate of the number of potential modern slaves in the uk is 10,000 - 13,000 people 2 8.1 prevention of modern slavery prevention of modern slavery in the workplace matthew algie holds human rights in the very highest regard and has a zero tolerance approach to all human rights violations across our business and supply chains. research, ngo advocacy and media coverage has helped to shine a light on the prevalence of slavery today and the risk that businesses such as ourselves could unknowingly be complicit with this human rights abuse. we are committed to being transparent in our approach in this area, consistent with our disclosure obligations under the modern slavery act, and we published our first prevention of modern slavery statement for our 2016 financial year. this, and subsequent statements can be accessed via the matthew algie website. having completed a risk assessment in 2017, we have a fuller understanding of our priorities with regards to modern slavery prevention. broadly, we need to focus our \ 42 broadly, we need to focus our attention on three main areas: with our coffee suppliers, with our third-party non-coffee suppliers and in our own internal employment • 1 international labour organisation and walk free foundation • 2 home office (2014) • percy machaca, chunchus mayo area, putina punco attention on three main areas: with our coffee suppliers, with our third-party non-coffee suppliers and in our own internal employment practices. fortunately, the risk that we are unknowingly directly employing those trapped in forced labour is relatively low due to the checks that we have built into our recruitment process. furthermore, a very small percentage of our roles rely on short-term agency labour, a type of employment which tends to be more vulnerable to exploitation, and we aim to transition any short-term agency positions to a permanent position within 12-weeks of employment if there is continued need after this time period. nevertheless, to make further progress in mitigating the risk of unknowing complicity, we’ve taken a number of practical steps, including: 43 / • assigning board level responsibility for addressing modern slavery and human trafficking. • reviewing and updating the relevant internal policies and procedures, including writing a new prevention of modern slavery policy and a modern slavery incident reporting procedure. • stipulating certain requirements for our labour provider through face-to-face discussions and more formally in a joint service level agreement. • key individuals have undertaken modern slavery prevention training by recognised external organisations including stronger together. we intend to use this hub of technical expertise within the business to build capacity in all parts of our operations and all departments. • providing modern slavery awareness to our cleaning staff (supplied by an on-site third party contractor). training ''
health promoting healthier lifestyles encouraging healthier, more active, lifestyles within our workforce is a priority for improving employee wellbeing and reducing absenteeism. in recent years we’ve started to make progress in this area by incentivising behaviour change and proactively talking to employees about the benefits of a healthy lifestyle. our cycle2work scheme has been in operation since march 2015, offering employees the chance to purchase a bike tax free, and spread the payments over a year. to further encourage uptake, we’ve made our premises more cycle friendly, installing covered bike shelters and showers for employee use. we have also offered a discounted gym membership to employees for a number of years, in partnership with a local glasgow club. furthermore, we have started implementing an annual fundraising challenge which gets employees involved in an outdoor activity. for example, in 2016, eight employees took part in a cycle or walking challenge along the clyde river and in 2017, ten employees hiked up ben lomond. since 2014, we have run an annual sustainability campaign week to engage staff on how to live happier and healthier lives in a way that preserves and cares for the environment. some of the highlights from 2016 and 2017 were: • 5-a-side football competition • 22 free 15-minute taster massages • 2 visits from our partner gym • 96 fairtrade bananas eaten • 4,825,851 steps collectively walked by teams taking part in a world walking app team competition. • free yoga taster class • 1 winner of our “are you sugar smart?” quiz • 62% of employees who gave feedback said that the campaign had challenged them to change their behaviour 8.2 “ what do you think worked well in sustainability week?” extracts from anonymous feedback from employees 'fruit for staff. usually i have to think to bring fruit in and i don't always have the time or inclination. having it provided made it so much easier to meet my "5 a day" target for once.' ' mindful mondays was my favourite.- helps you de-stress.' ' loved the walking challenge – would definitely get involved again next year!' “having an awareness that we need to be more sustainable in our daily lives is a great start to encouraging people to look at and change their routines and think about their impact on the world.” • amy our sustainability manager's trusty steed \ 44 45 / l e g a w e h i t t a m 46 ''
i l e g a w e h t t a m 9 community engaging with our community our “coffee community” extends beyond glasgow and our own operations, to our varied customer base and our longstanding suppliers. to that end, our community strand reflects our commitment to making a positive difference within our different spheres of impact and influence. we hope to achieve our goals through financial donations to our partner charities, donating our time or resources to share our expertise to the benefit of others, and, researching and promoting best practice. our broad objectives 1. be proactive in tackling issues that are important to us and our stakeholders in the uk and in our supply chains. 2. use our resources wisely and foster long-term partnerships to maximise impact in our chosen areas. our goals giving back to coffee communities 1. donate towards a community development project in coffee growing communities (not necessarily linked to our supply chain) every year. 2. provide consistent support to the david williamson rwanda foundation to achieve a total cumulative donation in excess of £9,000. 3. promote fairer terms of trade for coffee farmers through advocacy and knowledge sharing. positive customer influence 1. engage our customers in opportunities to make their operations more socially and environmentally sustainable. local community 1. support the prince and princess of wales hospice’s “brick by brick” appeal. 2. facilitate at least one fundraising activity or volunteering event per year for employees to take part in. 3. provide coffee school training to those in need of employability skills. 4. encourage young people to consider a career in the food and drink industry. 5. seek out partnerships with research institutions to further public understanding of best practice in sustainability. s a r u d n o h n r e t s e w n i s r e b m e m y t i n u m m o c • \ 46 47 /
the team collectively raised a fantastic £1,982 which was matched, pound for pound by the company through our matched giving scheme, meaning our total donation was almost £4,000! i l e g a w e h t t a m 9.1 fundraising coffee-fuelled fundraising for the prince and princess of wales hospice give up your saturday and take a punt that the weather will be nice enough in glasgow to get outdoors and raise some money for charity? it’s a proposition that we were hopeful, but not confident, would sound appealing to some of the team at our roastery when we planned our first fundraising event in 2016. thankfully with the promise of plenty of coffee and home baking for sustenance, a group of employees volunteered to take part, gaining sponsorships from friends, family and colleagues for their chosen challenge - cycling or walking along the clyde river. we planned the event to raise money for our local charity partner, the prince and princess of wales hospice, to support their brick by brick appeal and fund new purpose-built premises in bellahouston park. though we have supported the charity over a number of years through financial donations and coffee for their café, the event marked the first time that we have encouraged employees to come together to fundraise for the cause. it seemed appropriate to use a thirteen mile stretch of the clyde walkway, beginning at our roastery in the gorbals, as the location for an event which would allow us to give something back to a e g n e l l a h c r e s i a r d n u f 6 1 0 2 g n i t e l p m o c s e e y o l p m e • ‘‘ the total donated over 2016-17 though our fundraisers was over £6,500.’’ \ 48 49 / community that we’ve been a part of for over 150 years. the setting also harked back to our roots in that our founder, matthew algie, started his business importing tea on the famous clyde clippers back in 1864. the team collectively raised a fantastic £1,982 which was matched, pound for pound by the company through our matched giving scheme, meaning our total donation was almost £4,000! building on the successes of our first event, we have continued to plan fundraisers for employees to take part in. for example, to make the most of christmas festivities we held a christmas jumper fundraiser in 2016. additionally, in 2017 a group of 10 employees bravely stepped out into the wet weather and climbed ben lomond, scotland’s most southerly munro, to raise money. the total donated over 2016-17 though our fundraisers was over £6,500. a big thank-you to our brilliant volunteers who have helped to make these fundraisers a great success and raised money for this fantastic cause. ''
l e g a w e h i t t a m young people inspiring young people to get into coffee we are incredibly proud of our three barista training centres in glasgow, london and dublin, all of which have earned the speciality coffee association’s prestigious premier training campus accreditation. these excellent learning facilities have been kitted out with high-end training equipment to better serve our customers. over the last couple of year’s we have started to lend our excellent facilities in glasgow to the princes trust, a charity which provides opportunities for young people to increase their employability. young people enrolled on the princes trust’s “get into hospitality” training programme are invited to matthew algie hq to receive training in making the perfect coffee – from a flawless espresso to a frothy cappuccino. to complete the experience we also take the young people on a tour around our roastery, explain more about our business ethos and the variety of jobs that we have available at matthew algie. over 2016-17, we hosted more than 90 young people through the partnership, sharing our passion for coffee and hopefully inspiring them to get involved in the industry. in 2016 -17, we hosted more than 90 young people through the partnership, sharing our passion for coffee and hopefully inspiring them to get involved in the industry. 9.2 \ 50 51 / • espresso warehouse, keep cups • young people on the 'princes trust's ''get into hospitality'' training programme • our sca training campus london ''
l e g a w e h i t t a m '' these coffee producers have been supported to improve their farming practices so that they will farm using more environmentally sustainable techniques and increase their productivity. giving back in honduras joining forces with the “friends of coffee” foundation 2016 marked the beginning of a new charitable partnership with the fundacion amigos del café, or “friends of coffee foundation.” the foundation works with coffee communities in western honduras, including families from whom we purchase coffee. " our fundraising generated a £12,000 donation for the foundation in 2016. " our annual donation is calculated through sales of our gaia espresso blend (10p donation per kilogram) and the number of customer report cards returned to us (£15 donation per response) each year. in making this link between our customers and coffee growers we hope to demonstrate how our community of coffee lovers here in the uk can support coffee communities halfway across the world. our fundraising generated a £12,000 donation for the foundation in 2016. the donation was used to fund a “healthy families project” in two remote, hard-to-reach coffee farming communities, cruz alta and mataras. the 61 beneficiary families received training on issues relating to health and hygiene in the home and as a result, families have incorporated practices into their daily lives to reduce existing health risks. the households most in need also received new fuel efficient stoves, new water filters and new floors to make homes more comfortable, safe and harmonious places to live. in 2017, increased sales and report card responses allowed us to make an increased donation of £14,525. these funds have been used to support 50 producers in the cocasmil cooperative. these coffee producers have been supported to improve their farming practices so that they will farm using more environmentally sustainable techniques and increase their productivity. they have also been supported in achieving organic certification. 9.3 • training events for project participants • beneficiary family with their new flooring and stove \ 52 53 / ''
l e g a w e h i t t a m 10 awards & recognition “ outstanding demonstration of social impact” award from the university of manchester in november 2017, we were one of eight selected suppliers to be shortlisted for the university of manchester’s inaugural sustainability awards. the university spends £465m every year on goods and services and they are increasingly seeking ways to engage suppliers on their social and environmental performance. for example, they developed an online toolkit with netpositive futures for suppliers to share information on their sustainability plans and progress with their university partners. we were delighted to win the “outstanding demonstration of social impact” award based on the information we had shared with the university through the online platform. they were particularly impressed with our approach to prevention of modern slavery in our supply chains and the way that we’ve been encouraging young people into the business. ewan reid’s recognition for “outstanding contribution to sustainability” from marks and spencer ewan received this award from our customer, marks and spencer, in june 2017. ewan was technical director at the time but he has subsequently assumed the position of managing director of matthew algie. ewan has been with matthew algie for 25 years. during this time, the livelihoods of 25 million smallholder coffee farmers, and their contribution to global coffee production, has been increasingly threatened by challenges as diverse as climate change, urban migration and the lure of alternative cash crops. in response, ewan has pioneered an approach to sustainable sourcing which has kept matthew algie ahead of the curve. he has spearheaded the extensive use of certifications, such as fairtrade, whilst also seeking to strengthen supply chain relationships, investing in long-term, direct partnerships with coffee cooperatives. previous sustainability award successes • 2degrees award for “water management”, 2015, for our collaborative project with the san juan del oro cooperative, twin, the fairtrade foundation and marks and spencer. • shortlisted for “environmental leadership” award by scottish business in the community, 2015, for our approach to climate change adaptation at origin and mitigation at home. • shortlisted for “leadership award for partnership” by marks and spencer, 2015, for our collaborative project with the san juan del oro cooperative, twin, the fairtrade foundation and marks and spencer. • “plan a commitment” award from marks and spencer, 2012, for successful delivery of a bespoke triple certified coffee blend. • third place (2009) and commended (2011) for “most ethical company – europe” at allegra strategies european coffee symposium • glasgow business award for “sustainable development”, 2011, for successful waste segregation strategies. • representatives from matthew algie receive award for outstanding demonstration of social impact from our customer, the university of manchester • ewan reid’s recognition for “outstanding contribution to sustainability” from marks and spencer \ 54 55 /
l e g a w e h i t t a m juan mamani, a member of the san juan del oro cooperative, saw his yields drop by more than 75% due to the “roya” outbreak. to help him become more resilient to these challenges, the project assisted him in planting new shade trees so that he can build the right micro-climate for his coffee and stabilise the steep terrain on his farm. furthermore, he has planted new coffee trees which he hopes will thrive with his careful treatment with organic friendly fungicides and pesticides. 11 strengthening our governance overall responsibility for the sustainability 5 year plan and goals sits within the technical and quality assurance team. however, crucial to successful implementation is the involvement of other internal stakeholders. a project team was formed during the initial strategy design phase, engaging employees whose role directly relates to sustainability. these employees will be involved on an on-going basis in achievement of the plan and effective monitoring and reporting of progress. further engagement with the broader workforce will be managed primarily via two existing forums – the environmental committee and the employee forum. both platforms bring together volunteer representatives from different areas of the business and they are therefore a fantastic medium for progressing attainment of our goals and evaluating our progress collaboratively. we intend to also invite external stakeholders to be part of our governance process. besides utilising our pre- existing communications structures, we will approach representatives from key external stakeholders (for example coffee producers, customers, suppliers, civil society partner organisations, certification bodies etc.) specifically to reflect and comment on our progress. we hope that having an accountability structure in place will help us to drive forward the changes we want to see. an annual review cycle, as demonstrated in the diagram, has been implemented to give us a means for staying on-track and continuing to have an impact, accounting for unforeseen changes in circumstances. the annual evaluation includes quantitative data for reviewing progress against goals, including the annual milestones we are hoping to hit along the way, combined with qualitative evaluation from internal and external stakeholder representatives. functions involved • technical and qa • purchasing • hr • food production & logistics • espresso warehouse • marketing make changes to annual milestones as required stakeholder consultation implementation evaluation of progress data collection \ 56 • coffee training session 57 /
l e g a w e h i t t a m acknowledgements our sincerest thanks to the following organisations for partnering with us on our sustainability initiatives and for helping us to assemble this report. oromia coffee farmer cooperative union, ocfcu cooperativa agraria cafetalera san juan del oro ltda. cooperativa cafetalera capucas limitada, cocafcal asociación de caficultores taipiplaya, asocafe twin & twin trading d r wakefield a. van weely b.v. uelzena group allstar busness solutions fundación amigos del café the fairtrade foundation jersey overseas aid commission university of edinburgh the carbon trust forest carbon scottish biofuel programme prince and princess of wales hospice the princes trust connect three solutions marks and spencer ground espresso bars the university of manchester references page 9: sdg industry matrix for food, beverage and consumer goods (2016) produced by the united nations global compact and kpmg page 15: estimated saving calculated based upon findings of chapagain, a. k., and hoekstra, a. y., (august 2003), “the water needed to have the dutch drink coffee”, unesco-ihe institute for water education. page 42: data related to prevalence of modern slavery sourced from international labour organisation, walk free foundation and the home office. we hope that this is the first of many sustainability reports from matthew algie, designed to keep our stakeholders up-to-date with our progress and direction of travel. if you would like to send us any comments or feedback so that we can improve our future communications, please do get in touch via our website www.matthewalgie.com/contact \ 58 59 /