We do not expect substantial shares of our supply chains to be incompliant. Multiple factors indicate low rates of incompliance risks. Our track record in certified coffee enables not only traceable supply chains but also high standards when it comes to adherence to local laws, safeguarding protected areas and anticipating deforestation through counter measures such as afforestation and agroforestry systems. All certified products in our portfolio are third party audited and verified, showcasing a good indicator for regulatory compliance. However, we are neither relying on certification as a sole proof of compliance nor as proof of no deforestation.
Deforestation-freeness will be assessed with precise satellite imagery and drone footage, which will prove that in almost all cases plantations have been existing prior to the cutoff date in 2020. This is supported by the fact that many crop plants including coffee trees need to mature up to 5 years to bare harvestable fruits. Additionally, the incompliance risk regarding legality of production will be assessed based on various internal and external databases to verify adherence to local laws.
If risks are identified, clear measures will follow to assess whether these can be mitigated or in extreme cases business relations need to be ceased.