A series where we talk to retail’s movers and shakers about how they are tackling the challenge of becoming a greener business in an industry that is far from green – assessing organisational change, eco initiatives, and much more.
Finding ways to boost the recycling rates of coffee pods, minimising waste, and reducing the organisation’s carbon footprint are the current key aims for the Nespresso UK team, according to the Nestle coffee brand’s sustainability manager Mary Child.
And to mark the occasion of the annual awareness-raising event Recycle Week, which runs from 14-20 October, Nespresso is introducing a new platform it hopes will make it easier for its customers to recycle their used coffee pods.
The new Nespresso-branded recycling booking system is “a lot quicker and easier to book a collection” than the current options, Child notes. Existing ways to recycle include using a Royal Mail collection-from-home or Post Office in-store drop-off service, as well as the nationwide Podback scheme, or drop-off points in Nespresso boutiques.
How ever the used pods are returned, they are processed at a dedicated facility run by metal specialist Tandom in Congelton, Cheshire.
Child says Nespresso’s recycling rate matches the general UK average of circa 40%, which suggests there is a lot of work to do to encourage consumers to recycle rather than throw away to landfill. She says that thanks to a partnership with Royal Mail and postal operators in Ireland, Guernsey, and Jersey, all consumers have either a place to return old pods or have them collected from home. But this month’s new platform launch is expected to improve matters further.
“A lot more can be done and we want to reduce waste as much as possible – we know that people are most likely to build consistent recycling habits if its easily available and as simple as possible,” Child tells Green Retail World.
“We continue to invest in expanding our recycling options so customers can choose what works for them.”
The new recycling portal aims to make the process “really easy and simple”, explains Child, who says that when pods are processed, the coffee granules are removed for anaerobic digestion before being used in farming as soil improver. Meanwhile, the aluminium undergoes smelting and is made into ingots before being used to create beverage cans, car parts, and other objects.
“In the long term we want to drive more innovative change which would mean capsules are accepted in standard recycling streams – ultimately this will be is the easiest and most accessible option for the future,” says Child.
Supply chain scrutiny
It’s important to highlight ethical practices in the supply chain when talking to any retailer, but with Nespresso coming under the spotlight of a Channel 4 Dispatches investigation in 2020 for alleged cases of child labour in an associated farm in Guatemala, it’s crucial to tackle that issue in this interview.
According to Child, the coffee company has “zero tolerance for child labour” and she calls any incidents “completely unacceptable” She talks of a “long-term plan” at Nespresso to eradicate child labour and ongoing efforts to work with the communities supplying its product to improve their lives and engage in practices that support these local economies.
Nespresso’s response and action plan following the Dispatches programme was to immediately stop purchases of coffee from all farms in the region until it had conducted its own investigations.
Child says there have been “no more reported incidents”. Meanwhile, the company collaborates with the Fair Labor Association to develop and monitor effective policies through the Nespresso AAA Sustainable Quality Program, which the brand said “focuses on addressing the complex socio-economic factors contributing to child labour in coffee farming regions”.
Additionally, last year, Nespresso had 114 field staff enrolled in the child rights capacity-building programme, and the company says its aim is to foster sustainable practices that protect vulnerable communities and ensure ethical sourcing of coffee.
It was two years after these allegations that Nespresso gained its B Corp certification, which generated significant industry criticism and raised questions about the scoring processes for this environmental and ethical business accreditation.
All of this underlines the difficulty businesses face when trying to be more sustainable and then talking about their work in this space.
“Everything leaves a footprint,” says Child, adding: “No business can be fully sustainable – no organisation big or small can say they have zero impact on the world.
“At Nespresso we’re committed to mitigating the negative impact, reducing our carbon footprint, and minimising waste. We’re committed to being a force for good throughout our value chain – businesses big and small have a role to play here.”
Specifically, Child says Nespresso is investing in regenerative agriculture which is all about protecting and maintaining the landscapes from where its coffee is derived, as well as “revitalising and restoring” soils and boosting biodiversity.
“We believe coffee cultivation can stimulate local economies and empower communities, so we’re working with farming communities around the world to build financial and environmental resilience so they not only survive but they thrive and prosper.”
One example is the ‘Reviving Origins’ programme, which involves Nespresso driving coffee cultivation in places affected by conflict, instability, and natural disasters. Much of this work has focused on Columbia and Democratic Republic of Congo, where Child says the brand has been working with farmers since 2014 “to rebuild farms and livelihoods”.
Power play
There is plenty to talk about from a sustainability strategy perspective at Nespresso. In September, the brand started working with delivery company Hived, using its electric vehicle delivery service to fulfil orders in London.
Launching with Hived, which operates a fleet of electric vehicles for home delivery and within the “middle mile” of distribution, ties into Nespresso’s “local carbon reduction plans” which Child says will contribute to the business’s global net zero emissions target. Nespresso has set a goal of net zero by 2035 at the earliest, and will look to use electric rather than diesel power in more parts of its operations.
Hived offers Nespresso customers live tracking capability in the app, and flexibility to change orders to avoid failed deliveries. While debate rages on about the true sustainability gains of electric vehicles, Child says the partnership with Hived ticks both the “quality and sustainability” boxes for a delivery service.
“As a global business, reducing emissions is a priority,” she notes.
“We’re laser focused on moving towards a net zero future and reducing and removing emissions from bean to cup and beyond.”
She adds that Nespresso’s production centres run on “100% renewable energy”, while all the electric power in its UK offices is generated from renewables – as it is in the boutiques where the brand holds the energy contract. “We’re targeting 100% renewable energy by 2025,” Child continues.
Education
As part of Nespresso’s efforts to encourage more recycling of its used pods, it has established several partnerships with other brands to highlight how its aluminium can be repurposed. So-called “second-life” watches, writing instruments, and trainers have been created alongside Hublot, Caran d’Ache, and Zèta, respectively.
These creations are not scalable commercial propositions, as such, yet; they are examples that show the art of the possible and highlight what can be done with a more circular mindset.
Within the business, internally, Child says sustainability and greener thinking is “baked into everyday decision making”.
“It’s cross functional,” she says: “Whether you’re in a boutique or head office, everyone has opportunities to learn about it and get involved in sustainability initiatives.”
Child has established an internal committee. It is a cross-functional team covering operations, where the focus is on renewable energy, recycling, developing a pre-loved machine offering and overall carbon reduction, and communications and HR, where the focus is on how the business is engaging both employees and customers on issues of sustainability.
A Nespresso Sustainability Advisory Board, which is an external governance body offering advice on Nespresso’s sustainability strategy, is also an influential factor.
Leaders from independent bodies such as Fairtrade and the Rainforest Alliance, which certify the farms in Nespresso’s supply chain, are on the board. Organisations such as Enveritas, which provides sustainability assurance for the coffee and cocoa industries, and B Corp accreditation body B Lab are also represented. They sit alongside senior Nespresso management, as well as – perhaps, surprisingly – actor George Clooney, who is a brand ambassador and has been involved in marketing campaigns highlighting the climate crisis’s impact on coffee production.
“We’re always consistently talking about sustainability in internal comms, and in training,” Child explains.
“Although we certified as B Corp in 2022, our sustainability strategy started decades ago. We have a long and deep understanding of sustainability internally.”
And addressing some of those historic allegations and criticisms again, she notes: “It’s about being transparent – I’m always happy to have more conversations on how we operate.”
At Green Retail World, we are giving retail executives and industry leaders, like Mary Child, a chance to explain how they are enacting environmental change within their organisations. Please contact editor, Ben Sillitoe, if you’d like to put yourself forward for an interview on this key subject. Sharing good practice can help the wider sector move in a positive direction.
[Image credit: Nespresso]
