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  • SUSTAINABILITY REPORT 2014 - Cooperation to promote sustainable farming methods
    and the Inter na tional Coffee Partners ICP initiative we are working at a higher level on improving such framework condi tions Sustainable Coffee Programme Business and politics pull together In 2012 inter na tional coffee roasters joined forces in the SCP to jointly address struc tural challenges The main objective is to increase yields and export volumes of sustainably produced coffees Govern mental organ i sa tions NGOs and other national stake holders collab orate on country specific activ ities in the programme which origi nated as a Dutch government initiative called Initi atief Duurzame Handel Sustainable Trade Initiative IDH The IDH is committed to promoting respon sible trade in raw materials and indus trial products from devel oping countries and coordi nates the inter na tional activ ities required for this Its activ ities focus on goods such as cocoa tea soy tropical woods cotton coffee and palm oil as well as finished clothing and electronics products Tchibo is a founding member of the SCP and is repre sented on its Steering Committee with the other partic i pating roasters the European Coffee Feder ation umbrella organ i sation and the devel opment aid organ i sation HIVOS As an important syndicate of protag o nists from industry and politics in the world coffee market it includes the roasters with the world s largest market volume the SCP has consid erable reach Investment in national devel opment projects For Tchibo the struc turally oriented SCP initia tives are a useful complement to its own Tchibo Joint Forces programme They contribute to the fact that the coffee sector in general is becoming more sustainable The programme phase running from 2010 to 2015 focused on six of the ten largest coffee producing countries Brazil Vietnam Indonesia Colombia Ethiopia and Uganda For each country the SCP identifies measures that contain great potential for a more sustainable green coffee culti vation At the same time it indicates ways of overcoming potential obstacles The SCP s activ ities include Helping to establish an associ ation under private law for the coffee industry Promoting the official recog nition of local standards such as Certifica Minas Café from Brazil within the framework of the 4C standards Promoting programmes for better adapting coffee culti vation better to changing weather condi tions By the end of the programme phase that expires in 2015 the SCP hopes to have reached a total of 500 000 coffee farmers From 2010 to 2015 25 million US dollars will have been invested in more than 80 projects in the producing countries and in the further devel opment of coffee supply chains In addition inter na tional donors are involved in other programme activ ities They often provide crucial seed money for local projects The allocation of funds is reviewed by an independent committee local experts and the coordi nators of the national programmes Memorandum for inten sified cooper ation One important milestone on the road to the sustainable trans for mation

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1104626/-/en/home/coffee-value-chain/the-sustainable-development-of-the-coffee-sector/cooperation-to-promote-sustainable-farming-methods.html (2016-04-24)
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  • SUSTAINABILITY REPORT 2014 - Environment & Climate
    Expert pruning and other mainte nance measures can also increase resilience Soils should also be regularly mulched to prevent them from drying out Tchibo works to establish processes like these with more and more coffee farmers and mainly relies on strategic partner ships to do so Coffee Climate Partnership for climate adapted coffee culti vation The Coffee Climate devel opment partnership launched in 2010 plays a key role in the adaptation of coffee culti vation to changing climatic condi tions We are a founding member of the initiative with other inter na tional coffee companies a green coffee trader and the German Society for Inter na tional Cooper ation GIZ It is active in four strate gi cally important growing regions for Arabica and Robusta beans Brazil Vietnam and Tanzania as well as Trifinio an area in the border region between Guatemala Honduras and El Salvador Coffee Climate provides local protag o nists with the tools and knowledge to identify local risks to coffee culti vation from climate change and commu nicate suitable adaptation methods to producers Experi ences gained from proven farming methods are combined with findings from climate science research During the first phase of the project around 3 000 farmers were integrated into the programme by 2014 One important goal was met more than half of the farmers has already used two or more methods of adaptation In the four pilot regions workshops for coaches were held so that they could pass on their knowledge to as many farmers as possible Since February 2015 the 180 page guide Climate Change Adaptation in Coffee Production has been available for download on coffee and climate org In 2015 Coffee Climate will carry out an internal evalu ation of its work A second project phase is planned which will run until 2017 During this time Coffee Climate will system at i cally work with major standards organ i sa tions In 2014 a working group was set up with the 4C Associ ation the Rainforest Alliance UTZ Certified and Fairtrade to this end It will dissem inate spread proven measures for adapting to climate change and develop new ones The partners also intend to develop new methods for reducing green house gases and expand their commu ni cation with external stake holders New standards and initia tives for climate friendly coffee In the coffee sector another important issue beyond adapting to the conse quences of climate change is the reduction of green house gas emissions in culti vation For instance using nitrogenous fertiliser can increase emissions of climate damaging nitrous oxide gas However documenting such effects is a very complex procedure as there are no uniform standards That is why Tchibo is partic i pating in the Coffee Working Group of the Sustainable Agriculture Initiative SAI which has set itself the goal of devel oping a globally appli cable method for measuring and calcu lating the carbon footprint of green coffee As a basis for reporting a Product Category Rule

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1104628/-/en/home/coffee-value-chain/the-sustainable-development-of-the-coffee-sector/environment-climate.html (2016-04-24)
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  • SUSTAINABILITY REPORT 2014 - Educational projects in the source countries
    cooperated with the world s largest children s rights organ i sation Save the Children since 2013 In six day care centres the coffee pickers children aged 3 to 13 receive educa tional and medical care during harvest time During the 2013 2014 harvest season more than 650 children received care and over 700 appli ca tions were received for the most recent picking season 2014 2015 About 600 boys and girls were additionally tutored in maths and reading during regular school hours The project team gave educa tional and profes sional training to about 100 teachers for this purpose Overall Tchibo has supported the project with approx 2 4 million euros to date During the campaign periods 10 cents were donated to the children s project for every pound of Tchibo Privat Kaffee sold which resulted in about two million euros raised Beyond this 470 000 euros were collected for the project during the RTL Spenden marathon telethon in November 2014 as part of a cooper ation with the RTL Wir helfen Kindern foundation and the German TV sports journalist Ulrike von der Groeben as project sponsor After initial scepticism among the parents day care isn t yet common place in Guatemala accep tance of the facil ities is growing and the parents are happy to have their children cared for during the harvest work Thanks to this positive devel opment and the success of the promotion campaign we were able to expand the project to the Jacal te nango region in October 2014 Here another four day care centres are to be built by September 2018 to provide care for more than 600 children during the harvest season Tanzania Improving the educa tional situation for children and teens Based on the successful cooper ation in Guatemala since June 2015 we have cooperated with our project partner Save the Children to improve the education situation for children and teens in Tanzania as well Working on certified coffee farms is generally possible only from the age of 18 in Tanzania But young people often end their schooling at the age of 13 to 15 years and there are few oppor tu nities for beginning an appren ticeship once they do Such training centres are often too far away or the young sters lack the required school creden tials With this project we hope to encourage more children especially girls to attend school regularly and by improving instruction in schools to help more teens to success fully complete primary school Also to help more students continue their education at a secondary school after completing primary school However the project is aimed not only at students but also at parents and teachers parents are encouraged to get involved in their children s education and push for it Teachers receive training to help them make their classroom instruction more practical and more conducive to the children s devel opment Teens and young adults are also incor po rated into the project Here too

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1104630/-/en/home/coffee-value-chain/educational-projects-in-the-source-countries.html (2016-04-24)
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  • SUSTAINABILITY REPORT 2014 - Strategy & management
    sourcing capacity and produce goods that make it easier for our customers to make sustainable purchasing decisions In sum our sustain ability strategy contributes to our long term business success Imple menting Respon sible Business Practices Together with Stake holders Since 2006 sustain ability is firmly anchored in the Tchibo business strategy in the Tchibo DNA and in the Code of Conduct for our employees it is a core component of all business processes Our sustain ability goals also shape our relations with suppliers and business partners through the Tchibo Social and Environ mental Code of Conduct SCoC which was also created in 2006 It is the basis for all buying contracts and obligates our suppliers to comply with social and environ mental standards It includes require ments such as fair wages safe working condi tions and the existence of environ mental management systems in our production facil ities Moreover it is important to us that factory workers can help shape their working condi tions With the WE Worldwide Enhancement of Social Quality Programme we offer managers and workers the oppor tunity to engage in a struc tured dialogue process with support from experi enced trainers to develop improve ments in the workplace and implement these together Finally we are involved in efforts to enforce the Rights to Freedom of Associ ation and Collective Bargaining Our efforts and programmes can only achieve limited progress in countries like China or Bangladesh The 2013 collapse of the Rana Plaza factory in Bangladesh with more than 1 100 dead exemplified the extent of the problem Improve ments can only be made and disasters of this kind avoided if all relevant actors in the value chain work together Coali tions like the Accord on Fire and Building Safety in Bangladesh are an ideal platform for doing so In this coalition we are working with other companies and stake holders on struc tural solutions to improve the condi tions of the entire textile industry in Bangladesh Respon sible business practices Gradual Transition to Respon sibly Sourced Resources and Materials The products that we offer have to meet many require ments They must be well made stylish and durable Tchibo and its customers under stand that quality also means that the valuable resources and materials contained in our products are sourced sustainably Tchibo therefore increas ingly sources from socially and environ men tally respon sible sources When it comes to cotton wood and pulp we collab orate with inter na tionally recog nised standards certi fi cation organi za tions and industry experts For materials such as leather or animal fibres for which no recog nised certi fi ca tions or accred i ta tions exist we pursue own approaches to improve the processes In addition we continue to increase the number of products made from recycled materials and improve the recycla bility of our products Trendiness and a sense of respon si bility are closely linked we increased the proportion of cotton textiles made from

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1111204/-/en/home/consumer-goods-value-chain/strategy-management.html (2016-04-24)
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  • SUSTAINABILITY REPORT 2014 - Responsible business practices
    the environ mental principles of the UN Global Compact The SCoC is a part of any business contract that we enter into and is thus mandatory for all our suppliers and business partners By signing the SCoC our suppliers commit to social and environ mental standards in the production These include limits on working hours prohi bition of child labour and discrim i nation prevention of negative environ mental impacts and the respect of trade union rights In order to support compliance with the SCoC and meet the require ments of the Ruggie Principles UN Guiding Principles for Business and Human Rights we engage on three levels Within the company ongoing analysis of internal processes and close inter action with the Product Design Purchasing and Quality Management Depart ments Collab o ration with our business partners define mandatory minimum standards for business collab o ration and carry out in depth dialogue with suppliers to address environ mental and social challenges in the supply chain Collab o ration with stake holders cross company cooper ation to address struc tural challenges Within the Company Analysis and Improvement of Our Purchasing Practices In our ongoing effort to analyse and improve internal processes we have empha sised respon sible purchasing practices We analyse whether and how our buying behaviour affects condi tions at factories What possi bil ities do we have to ensure that purchasing decisions and management processes further social and environ mental condi tions in our supply chains One way is to strengthen strategic partner ships with suppliers and lock in purchasing volumes so that factories are better able to plan ahead We also regularly analyse latest economic political and social devel op ments for example in China Bangladesh and Ethiopia and align our factory portfolio and policies accord ingly for example China Bangladesh and Ethiopia on the basis of the latest economic political and social devel op ments As a matter of principle we want to be a more reliable and respon sible business partner in order to enable the sustainable improvement of factories Cooper ation with Business Partners Together in Dialogue It is not enough to simply set standards in the SCoC and audit their imple men tation Instead we need the sustained commitment from the factories to recognise and address challenges Since 2007 we have been training our suppliers to do exactly that with the long term WE Worldwide Enhancement of Social Quality Programme Sustainable supply chains In this context we support our suppliers to contin u ously improve in the field of social standards environ mental require ments and climate protection The Tchibo Vendor Days are a platform for exchange to share best practices as broadly as possible and maximise impact In addition to know how transfer we hereby intensify the relationship with our key suppliers Peer Learning at the Tchibo Vendor Days In 2014 the Tchibo Vendor Days took place for the third time with the motto Together for Change In November we welcomed our 45 most

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1111206/-/en/home/consumer-goods-value-chain/responsible-business-practices.html (2016-04-24)
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  • SUSTAINABILITY REPORT 2014 - Sustainable products and resources
    of the OCS 100 OCS Blended organic cotton standards which promotes sustainable products and processes in the textile industry Since 2008 we have regularly offered textiles made of organic cotton In 2013 and 2014 entire lingerie collec tions were made of certified organic cotton We are now the world s third largest supplier with just under 6 000 tonnes of organic cotton used according to the 2015 Organic Cotton Market Report published by Textile Exchange According to the report Tchibo is also the fourth fastest company worldwide to transition from conven tional to organic cotton the so called Race to the Top We also support the Aid for Trade Foundation s Cotton Made in Africa CmiA Initiative by purchasing CmiA cotton and partnering on education projects in Benin and Zambia Educa tional projects in the source countries In addition we are a member of the Better Cotton Initiative BCI which works on a broad scale for the transition to respon sible cotton farming In 2014 75 of our cotton textiles had been accredited or certified by one of these organ i sa tions up from 40 in 2012 For 2015 we are planning to increase this share even further to over 85 Our concern is not only the sustain ability of the raw cotton material but also the entire cotton manufac turing process This includes for example the dyeing and printing of fabrics and the use of acces sories To address these concerns we were certified in 2014 according to the stringent Global Organic Textile Standard GOTS which includes all processes from extraction of organ i cally grown natural resources through environ men tally and socially respon sible manufac turing up to trans parent labelling Viscose Sourcing the Wood Based Fibre Sustainably The sustain ability of viscose which is used in some of our textiles and consists primarily of wood must be guaranteed The production of viscose requires large amounts of water and chemicals This is why we increas ingly buy our cellulose fibres from the company Lenzing Lenzing not only sources its wood for the fibre from respon sibly managed sources but also upholds high environ mental standards in the production process based on the require ments of the EU Ecolabel In the fiscal year 2014 45 of the cellulose fibres used in our product lines Tencel and Modal came from Lenzing For 2015 we will be able to increase the share to around 60 Wood and Paper from Respon sible Sources To preserve forests for future gener a tions we monitor that the wood and pulp the main component of paper in our goods come from respon sibly managed forests Timber from illegal logging or other unwanted sources are not allowed in our products The Forest Tracing System FTS which we developed together with the World Wildlife Fund for Nature WWF helps to ensure that all the wood we use comes from legal sources We are also working to expand the share of wood and paper products certified

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1111210/-/en/home/consumer-goods-value-chain/sustainable-products-and-resources.html (2016-04-24)
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  • SUSTAINABILITY REPORT 2014 - Sustainable supply chains
    of the WE Programme 2007 2011 was carried out in partnership with the GIZ and funded by the Federal Ministry of Economic Cooper ation and Devel opment BMZ Since the completion of the pilot phase Tchibo has expanded the WE Programme to all its strategic suppliers with 320 partic i pating thus far Sustainable supply chains Play video Dialogue as a Key to Success 40 Local Trainers in Action Managers and worker repre sen ta tives use a dialogue approach to find solutions that improve social and environ mental condi tions at factories Through expert facil i tation cultural organ i sa tional and other obstacles can be identified and overcome This approach ensures that the measures are acceptable to both managers and workers improving the prospect of their imple men tation Local trainers play a key role because they are familiar with the cultural context and speak the language So far more than 40 experi enced trainers are working in the WE Programme Positive results 75 of Purchasing Volume from WE producers Through the WE Programme we support more than a third of the factories supplying our goods to implement social and environ mental standards By the end of 2014 320 factories in nine countries in Asia and Africa will have been engaged in the training programme Bangladesh China India Cambodia Laos Thailand Turkey Vietnam In 2014 approx i mately 60 of our orders 67 or our purchasing volume were placed in WE factories In fiscal year 2015 around 75 of our purchasing volume of consumer goods came from factories in high risk countries that had success fully completed the WE Programme The dialogue instead of finger wagging approach is proving effective In the factories involved health and safety have improved wages have increased and workers welfare has been addressed for example dormi tories canteen food and leisure activ ities have been intro duced In some factories elected worker repre sen ta tives stand up for the interests of their colleagues without fear of retri bution In the medium term we want to include all strategic suppliers in the WE Programme Through regular surveys of our suppliers we contin u ously adjust the WE Programme to meet the needs of workers We can thereby tailor our efforts to the needs onsite and use resources efficiently For remote factories in Vietnam for example we success fully intro duced the WE Factory Programme in 2013 With the WE approach the GIZ and Tchibo wanted to achieve the highest impact possible We thus make available the training method and approach Other inter ested companies can upon on request and subject to avail ability enjoy access to experi enced local trainers and training materials Risk Management through Monitoring of Social and Environ mental Standards WE does not yet reach all the factories producing our goods As part of our risk management we thus conduct targeted audits of factories compliance with the SCoC including the zero tolerance require ments in the areas of fire

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1111212/-/en/home/consumer-goods-value-chain/sustainable-supply-chains.html (2016-04-24)
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  • SUSTAINABILITY REPORT 2014 - Human Rights Challenges in production
    a factory in Bangladesh an indus trial engineer analysed the potential for more efficient production and initiated recom men da tions Together with the factory management we agreed that the resulting savings should benefit the workers Together with worker and manager repre sen ta tives the living wage level was calcu lated But we found that wage increases do not neces sarily improve the situation for workers in Bangladesh the workers of the factory reported that the increase in wages even when limited to an individual factory was offset by higher rents This is a well known nationwide phenomenon with no efforts by the government to regulate it What surprised us was that landlords were aware of wage increases in individual factories and thereupon targeted rent increases to the tenants working in those factories In a workshop we considered various non financial measures that could also improve the living condi tions of workers While this experience is not a reason to ignore the need for higher wages we need targeted approaches so that higher wages will actually lead to better living condi tions for workers and their families Global cooper ation for fair wages These experi ences have encouraged us to work with other actors towards system wide change Together with other well known brands and retailers as well as the inter na tional trade union confed er ation Indus triALL Global Union we are involved in the ACT Action Collab o ration Trans for mation on Living Wage ACT aims to improve wages in the industry by estab lishing industry collective bargaining in key garment and textile sourcing countries supported by world class manufac toring standards and respon sible purchasing practices Industry wide agree ments set a benchmark that applies to all manufac turers while still allowing for individual manufac turers to offer higher pay and condi tions In 2015 we signed a Memorandum of Under standing Memorandum of Under standing with Indus triALL and will take joint actions in various production countries having started in Cambodia Jenny Holdcroft of Indus triALL Global Union describes the cooper ation under ACT as We are working in a way that we have never been able to do before with brands that want to make a difference Cambodia Shared Commitment for Higher Wages A good example of our collab o rative approach is an initiative with eight other large textile companies in Cambodia We wrote a joint letter to the government and the national employers associ ation in which we expressed our expec tation of higher wage levels through fair and open collective bargaining At the same time we reaffirmed our intention to continue purchasing products from Cambodia At the beginning of 2015 the minimum wage was increased to the equiv alent of 128 US Dollars per month We are monitoring the situation closely at the end of 2014 an independent auditing company surveyed the wage levels at factories producing our goods in Cambodia According to the survey approx i mately 90

    Original URL path: http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/content/1111216/-/en/home/consumer-goods-value-chain/sustainable-supply-chains/human-rights-challenges-in-production.html (2016-04-24)
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