(English) Best Practices

Löfbergs is a Sweden-based coffee roaster that has been certified by Fair Trade since 2006. The company is actively engaged in various sustainability initiatives. They directly purchase all their coffee from producing countries, ensuring fair and sustainable practices. Löfbergs offers a 100% sustainably certified range and is one of the world's largest buyers of organic and Fair Trade coffee. Through their development projects, they have made significant improvements for over 105,000 small-scale coffee farmers. The company roasts coffee using fossil-free gas and packages it in environmentally friendly materials. Since 2005, Löfbergs has reduced its climate impact by 73%. They are also a proud member of the Hagainitiative, a network of companies working to reduce the business sector's climate impact. Löfbergs' goal, as part of this network, is to decrease their climate impact by at least 85% by 2030 compared to the baseline year of 2005. They participate in an annual joint climate audit. Löfbergs' commitment to Fair Trade certification not only supports sustainability and fair practices in the coffee industry but also satisfies the increasing consumer demand for ethically and sustainably produced products. This certification serves as a recognized and trusted label that communicates Löfbergs' dedication to sustainability and ethical practices to their customers.

Löfbergs' practice is relevant to the ESG-UP project as it addresses the environmental, social, and governance aspects of sustainable business practices. The company's commitment to Fair Trade certification aligns with the social and governance dimensions by ensuring fair prices for farmers and supporting the economic development of coffee-growing communities. It also contributes to environmental sustainability by promoting sustainable farming practices and biodiversity conservation. Löfbergs' practice adds value by providing consumers with a transparent and trustworthy choice for ethically and sustainably produced coffee. By supporting Fair Trade-certified products, consumers can contribute to positive social and environmental impacts in the coffee industry.

In terms of consumption, Löfbergs has made significant strides in increasing the demand and consumption of coffee from certified farms. Since 1995, when they imported the first container of organic coffee to Sweden, Löfbergs has been actively promoting both organic and Fairtrade-certified coffee. Today, their entire range is labeled with certifications, making it easy for consumers to choose Löfbergs as a brand that represents both quality and sustainability.

Löfbergs has always been engaged in supporting local communities, whether it is their immediate surroundings or cooperatives in coffee-producing countries worldwide. Their contributions to positive societal development take various forms, including sponsorships, collaborations with schools and universities, and development projects for coffee farmers. Each year, Löfbergs invests nearly seven million Swedish kronor in various community projects, demonstrating their commitment to social responsibility.

From an environmental perspective, Löfbergs promotes sustainable farming practices, reducing the use of harmful pesticides and preserving biodiversity. On the social dimension, the company supports fair prices for farmers, improving their economic conditions and the well-being of coffee-growing communities. Regarding governance, Löfbergs' Fair Trade certification demonstrates their commitment to transparent and ethical business practices. The practice encompasses aspects of responsible sourcing, supply chain management, and stakeholder engagement.

For E (Environmental):

Biodiversity loss: Löfbergs promotes sustainable farming practices, which can help preserve biodiversity.

Climate change: By supporting sustainable farming practices, Löfbergs contributes to mitigating climate change impacts.

Deforestation: Löfbergs' commitment to sustainable sourcing can help prevent deforestation in coffee-growing regions.

Resource depletion: Löfbergs aims to reduce the use of harmful pesticides, which contributes to the conservation of resources.

For S (Social):

Human rights: Fair Trade certification ensures fair prices for farmers, promoting social justice and respecting human rights.

Child labor: Fair Trade certification prohibits the use of child labor, ensuring ethical production practices.

Labor standards: Löfbergs' engagement with Fair Trade certification supports adherence to labor standards.

Employee relations: Löfbergs' commitment to Fair Trade certification contributes to fair and ethical employee relations.

For G (Governance):

Accounting: While specific details are not provided, fair and transparent accounting practices are generally associated with Fair Trade certification.

Bribery and corruption: Fair Trade certification promotes ethical business practices, including the prevention of bribery and corruption.

In terms of coffee cultivation, Löfbergs actively works to influence working conditions and livelihoods for approximately 40,000 coffee farmers who supply the company. By purchasing all their coffee directly from origin countries and visiting coffee farmers about 150 days per year, Löfbergs witnesses firsthand the positive impact of their interventions. Their initiatives have helped farmers adopt sustainable farming methods, cultivate coffee while considering environmental aspects, cope with climate change, increase productivity and income, as well as improve and develop living conditions and local communities. Additionally, Löfbergs drives their own development projects in coffee-producing countries, further supporting sustainable farming practices. As one of the world's largest importers of organic and Fairtrade-certified coffee, Löfbergs plays a crucial role in increasing the availability and demand for sustainable coffee.

Regarding transportation, while the overall contribution to the coffee's total climate impact is relatively small (approximately 3 percent), Löfbergs minimizes their environmental footprint. They transport coffee by boat and train directly to their roastery, reducing emissions and optimizing the logistics to decrease both the length and number of transports.

Over the past 20 years, they have doubled their production without increasing energy consumption. This accomplishment is the outcome of various measures, including the utilization of green electricity from wind power, geothermal and district heating, as well as energy reuse in the roasting process. Löfbergs also focuses on improving and environmentally adapting their packaging, exemplified by their pioneering initiative in the early 1990s to remove aluminum from coffee packaging.

Löfbergs maintains high standards for their delivery partners and employs a dedicated procurement tool for sustainable transportation. This tool considers aspects such as occupational health and safety, traffic safety, and the environment. Furthermore, the company optimizes their routes and adopts smarter packaging techniques to reduce the length and number of transports.

Indicators of performance and success for Löfbergs' practice may include the volume of coffee sourced from Fair Trade-certified farms, the number of farmers benefiting from fair prices, and the level of consumer awareness and support for Fair Trade products. Additionally

Sustainable farming practices: Tracking the number of farmers adopting environmentally friendly cultivation methods demonstrates Löfbergs' impact on promoting sustainability.

Certified coffee sales: Increasing sales of certified coffee indicates the company's success in raising consumer demand for sustainable products.

Environmental impact reduction: Monitoring reductions in greenhouse gas emissions, energy consumption, and waste generation reflects Löfbergs' efforts to minimize their environmental footprint.

Social and community development: Assessing the scale and impact of community projects supported by Löfbergs shows their contribution to improving the livelihoods of coffee-producing communities.

Organic (EU Organic): This certification indicates that the coffee comes from organic farms without the use of chemical pesticides and fertilizers.

Fairtrade: An independent product labeling with a focus on human rights. Farmers are guaranteed a minimum price, and the cooperative receives an additional premium. This creates better working and living conditions.

Rainforest Alliance: An independent labeling focusing on preserving biodiversity, sustainable farming practices, and improving livelihoods and conditions for farmers.

Challenges that may arise when implementing a similar practice include finding and maintaining a stable supply chain of Fair Trade-certified coffee, ensuring compliance with Fair Trade standards, and effectively communicating the value of Fair Trade certification to consumers. To overcome these challenges, it is important to establish long-term relationships with Fair Trade-certified coffee producers, maintain transparency and accountability throughout the supply chain, and educate consumers about the benefits of choosing Fair Trade products. Collaboration with Fair Trade organizations and industry peers can provide valuable support and guidance in implementing and promoting Fair Trade practices.

Löfbergs. (n.d.).Produktmärkningar. https://www.lofbergs.se/vart-ansvar/produktmarkningar/ Accessed on 15^th of June 2023)

Löfbergs. (n.d.) Ansvar från böna till kopp. https://www.lofbergs.se/vart-ansvar/vart-hallbarhetsarbete/ansvar-fran-bona-till-kopp/ Accessed on 15^th of June 2023)

Löfbergs. (2022). HÅLLBARHETSREDOVISNING 2021/2022. https://www.lofbergs.se/wp-content/uploads/2022/11/lofbergs_hallbarhetsredovisning_2021_2022.pdf Accessed on 15^th of June 2023)