STiR coffee and tea magazine

42 STiR coffee and tea | 2025 Quarter 2 Summer (Jun/jul/Aug) As a result, about 80% of companies originally covered by the directive are now exempt from conducting full due diligence on human rights, labor practices, and environmental impacts across their value chains. The initia- tive simplifies sustainability reporting and aligns existing requirements, but it eliminates civil responsibility and fines for non-compliance. Critics view this as prioritizing corporate interests over protecting people and nature. While some stakeholders view this as a necessary step to reduce admin- istrative burdens on businesses, others, including several companies such as Mars, Nestle, and Unilever, as well as nonprofits, caution that it may lead to deregulation and diminished corporate accountability. As the Corporate Justice Coalition, the largest civil society network in Europe, states in a press release, "the EU's Omnibus proposal rewards corporate interests instead of protecting people and the planet." This move is seen more as promoting de- regulation than competitiveness. CSDDD Implementation Challenges and Lessons CSDDD declares that companies "should…be responsible for using their in- fluence to contribute to an adequate standard of living in chains of activities. This is understood to include a living wage for employees and a living income for self-employed workers and smallholders, which they earn in return for their work and production." IDH works with big companies and civil organizations in collaborative Living Wage Income pilot projects in different countries and value chains to find answers, share lessons, and develop strategies based on experiences and data that can help stakeholders in the CSDDD compliance process. The organization thrives on the idea that collaborative work is the best way to find common solutions that have economic, social, and environmental impact. Loaiza shares that projects in Colombia already have an impact on 10,000 producers and that IDH is already working with cooperatives using the Unit- ed Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct—a set of principles that define the responsibilities of businesses and states to protect human rights, to help them become active stakeholders for CSDDD. She also highlights that complying with due diligence means doing everything possible to identify, assess, and mitigate risks. To tackle these challenges, IDH emphasizes collaborative solutions that foster sustainability and transparency. Their Income Driver Calcula- tor provides businesses with a practical tool to assess and ensure fair wages throughout their sup- ply chains, addressing social sustainability require- ments under EUDR and CSDDD. Complement- ing this, "Grounds for Sharing," a study of value distribution in the coffee industry, maps how value is shared across the supply chain—from farmers to exporters, highlighting disparities and promot- ing more equitable economic practices. While not directly tied to deforestation moni- toring, these tools reinforce broader ESG goals by supporting responsible sourcing. By engaging in these initiatives, businesses are better equipped to demonstrate compliance with EU regulations and strengthen the social dimension of their sustain- ability strategies Loaiza stressed, "Without a doubt, at the end of the day, sustainability will assure your supply chain," advising stakeholders to view regulations as opportunities to improve value chains where many issues are interconnected. Ultimately, these regulations present a valuable opportunity for stakeholders to find common so- lutions and deepen their understanding of com- plex value chains. Collaboration, knowledge-shar- ing, and proactive adaptation are key to ensuring both environmental sustainability and economic resilience. ITC offers workshops, like the one pictured above, held in Burundi last October, that guide SMEs through conflicting data sources and help them understand the technicalities of deforestation assessments. Photo courtesy ITC Susana Loaiza (above), Colombia's coffee supply chain manager for IDH, states that projects in Colombia are already positively impacting 10,000 producers. Photo courtesy IDH

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