Exporting segment actions highlight Brazilian coffees social and environmental  responsibility

Despite geopolitical and economic challenges, the quest for climate neutrality and preservation of biodiversity were on the spotlight on the global regulatory agenda in 2022, impacting the trade market. At the same time, the regulatory tightening trend indicates a turning point for more transparency and accountability in global supply  chains regarding environmental protection and respect for human rights.

In the external regulatory agenda, the rise in new unilateral rules, aimed at curbing commodities trade related to deforestation, creates uncertainty at a time in which the World Trade Organization (WTO) is weakened. Cecafé participated in discussions and public consultations promoted by the United Kingdom, the United States and the European Union throughout 2022. The council aimed to highlight the social and environmental responsibility of Brazilian coffee growing and the risks of social exclusion  and increased transaction costs along the production chain of Brazilian coffees.

As part of the strategies regarding climate neutrality and the protection of diversity, the European Union has intensified discussions on a new regulation on the Sustainable Use of Pesticides in 2022, proposing binding targets for reducing the application of these Chemical inputs. In practical terms, this plan, which is part of the Green Deal, has already had an effect in reducing Maximum Residue Levels (MRLs) on European territory, based on environmental criteria, for active ingredients that are part of the plant protection strategy for various crops grown in tropical regions, including coffee.

Also related to the Green Deal, the European Union reached an agreement at the end of 2022 to reform its carbon market, which is the largest in the world, tightening the rules for regulated sectors, aiming to reduce its greenhouse gas (GHG) emissions by 62% by 2030, as well as providing for the inclusion of new economic segments. Among the changes is the creation of the Carbon Border Adjustment Mechanism (CBAM), a surcharge for certain imported products related to their carbon footprint.

Although coffee is not listed among the products to be affected by CBAM, the monitoring of these regulatory trends is on Cecafé’s radar in order to prevent future risks in trading and to assess the impact on the pricing of carbon credits. As published on the Reset portal¹ , prices in the European carbon market have shown a strong upward trend in the last two years, and more restrictive rules are expected. In August, the carbon equivalent ton reached €99.

From a social perspective, in February 2022 the European Commission adopted a proposal for a directive on corporate sustainability due diligence to anchor human rights in addition to environmental aspects in companies’ corporate governance. The rules under discussion extend to suppliers outside the EU and seek to ensure that companies address the negative impacts of their actions and activities.

The proposal follows the recent trend of legislation from EU Members, such as France (2017), the Netherlands (2019) and Germany (2022), which have started adopting mandatory human rights due diligence, requiring companies to identify, predict, mitigate and respond for caused or contributed harm.

In the domestic regulatory agenda, 2022 also brought important advances in social and environmental responsibility, which are aligned with emerging international requirements. Regarding the protection of native forests, Decree 11.015/2022 contributes to the implementation of the Forest Code by instituting the National Plan for the Environmental Regularization of Rural Properties – RegularizAgro, which will promote the integration of data and systems, catalyzing the joint efforts and actions of the Federal Government and the federal units for the effective execution of plans for the environmental regularization of rural properties.

To encourage low-carbon agriculture practices, the 2022/23 Crop Plan has allocated BRL 6.19 billion to mitigate climate change, the largest volume of resources in the history of the ABC+ Plan, fostering the sequestration of carbon from the atmosphere through more productive efficiency and soil, water and vegetation conservation. Furthermore, producers who adopt these practices have been authorized to access rural insurance more easily.

From a social perspective, the Ministry of Labor and Social Security launched the Sustainable Labor Program, seeking to promote responsible business conduct and decent work, focusing on some productive chains, among them coffee. The Program has been an important source of information on the application of labor legislation in the field, providing specific guidance for the hiring of workers for coffee harvest.

In line with all these advances, Cecafé, as the representative of the export segment, invested last year in strengthening its socio-environmental responsibility agenda, developing pioneering projects and engaging in collective actions.

One of the initiatives worth mentioning is the “Carbon Project Arabica Stage”, developed under the technical-scientific leadership of Prof. Carlos Cerri (Esalq/Usp) and Imaflora, which evaluated the impact of the transition from traditional practices, on coffee farms in Minas Gerais, to those that contribute more organic matter to the soil and use of vegetative cover. The result highlights the magnitude of the environmental benefits associated with Brazilian coffees. The study observed a negative carbon balance of around 10.5 t CO2eq/ha of cultivated coffee. In 2023 Cecafé will promote the “Conilon Stage” of its Carbon Project in the state of Espírito Santo.

In compliance with emerging international food safety standards, Cecafé developed its most extensive Residue Monitoring Project. Results attest the respect with good agricultural practices in the field and the challenges that emerge from unilateral decisions, without scientific evidence, in important Destination markets for Brazilian coffee. Furthermore, data from the Cecafé Project enabled a partnership with European importers for the promotion of scientific studies aiming at adapting to regulatory ongoing processes in the EU with an impact on Brazilian coffee trade flow.

The collective initiative “Social Well-Being in Brazilian Coffee Farming”, of which Cecafé is one of the coordinators, advanced in 2022 by promoting decent work and continuous improvement of the working environment in the coffee sector. A key component of this action was measuring a decent income for coffee growers, valuing the economic pillar of sustainability.

Cecafé also worked and invested in the development of a virtual environment to promote digital inclusion and farmer and worker training in sustainable practices aligned with food safety standards. In partnership with the Global Coffee Platform (GCP), Cecafé will launch the Distance Learning Platform of its Informed Producer Program in 2023, aiming at the dissemination of good agricultural, environmental and social practices in the field.

The coffee exporting segment starts 2023 with a display of strategic actions, focused on socioenvironmental responsibility, so that Brazil can continue to meet the growing global demand for sustainable coffees with excellence.

¹ https://www.capitalreset.com/europa-aperta-regras-do-mercado-de-carbono-e-o-que-o-resto-do-mundo-tem-a-ver-com-isso/


Marcos Matos
CECAFÉ CEO

Silvia Pizzol
CECAFÉ Sustainability Manager