
Strengthening Global Coffee Chain Supply Responsibility with LkSG Compliance
We at GRAS—Global Risk Assessment Services and Meo Carbon Solutions are proud to support and enable the coffee industry to fulfil the requirements of the German Supply Chain Due Diligence Act (LkSG) regarding appropriate risk analysis.
Since January 2024, all companies (also those with more than 1,000 employees) have been affected by the law and are required to comply with LkSG due diligence requirements. To comply with these requirements, companies shall conduct a risk analysis to identify the human rights and environmental risks in their own businesses and with their direct suppliers.
For the past three years, GRAS and Meo have conducted a comprehensive country and sector-specific abstract risk analysis for a selection of 18 coffee-producing countries for the German Coffee Association (DKV) and its members. This analysis includes an evaluation per criterion listed in the LkSG and applies a mixed-methods approach. The holistic approach utilises both quantitative and qualitative findings and provides a solid foundation for companies’ LkSG reporting. By combining different research methods, we ensure a detailed and reliable understanding of potential human rights and environmental risks within the coffee sector.
Here’s how we achieve it:
- In-depth Literature Review: Within the literature review, we gather information on the legal framework and alignments with international standards, the enforcement of laws and regulations, and other country-specific information related to the LkSG
- Reliable Index and Statistical Analysis: In this method, we define objective risk scores using internationally recognized publicly available data, such as tabular datasets (including a specific variable), indexes (statistical measures obtained from aggregated data), and annual publications in which certain human rights violations are reported
- 4C Certification with Sector-Specific Insights: To supplement the quantitative analysis, the 4C Services audits provide real insights into the situation on the ground in the coffee sector
- Structured Internet Research: The structured Internet research focuses on the identification of actual cases and specific reporting of human rights violations in 18 coffee-producing countries
Considering the current political uncertainty surrounding the application of the LkSG, companies are strongly encouraged to uphold their obligations and corporate responsibilities to ensure continued compliance. However, GRAS and Meo will monitor the upcoming regulations and changes and adapt their services accordingly, also regarding the transposition of the CSDDD.
Find out how we can assist with your sustainability compliance. Learn more here.