Reducing Scope 3 Emissions in Coffee Farming through Value Chain Interventions

Agriculture is a significant contributor to global greenhouse gas emissions. Within this context, coffee production stands out as a vital agricultural sector, with an estimated 12.5 million coffee farms worldwide. The majority of these are smallholder operations that produce around 60% of the world’s coffee. However, this extensive cultivation often leads to emissions from land use changes, deforestation, fertilizer application, and energy-intensive processing methods. 

For companies in the coffee industry, emissions primarily occur within Scope 3, encompassing farm-level activities, transportation, and processing. Addressing these emissions is critical for organizations aiming to achieve net-zero targets and contribute to meaningful decarbonization efforts. By engaging with their value chains, coffee companies can drive sustainable practices that not only mitigate climate impact but also enhance the livelihoods of smallholder farmers. 

Interventions that can reduce emissions in coffee production include shade-grown coffee, agroforestry, water management, and regenerative agriculture. By implementing these strategies, companies can collaborate with their suppliers to transform coffee production into a more sustainable endeavor that supports both the environment and the farmers who cultivate this beloved crop. 

Shade-Grown Coffee  

Shade-grown coffee involves cultivating coffee plants under a canopy of taller, native trees. This practice mimics natural forest ecosystems, where the trees provide shade and help regulate the farm's microclimate. The integration of shade trees supports biodiversity and reduces the need for synthetic inputs like fertilizers and pesticides, while also enhancing carbon sequestration and maintaining soil health.  

The benefits of shade-grown coffee extend beyond environmental impacts. The shaded growing conditions slow bean maturation, leading to a more complex flavor profile with higher acidity and reduced bitterness, often preferred by specialty coffee markets. Additionally, the trees provide habitats for birds, insects, and other organisms, which contribute to natural pest control and the overall ecological balance of the farm. This makes shade-grown coffee an intervention that benefits both ecosystems and product quality, supporting a sustainable value chain. 

Agroforestry 

Agroforestry involves planting trees alongside coffee crops, which provides multiple benefits: carbon sequestration, improved biodiversity, and healthier ecosystems. By incorporating trees into coffee farms, farmers can increase shade, reduce soil erosion, and promote carbon capture. These elements collectively contribute to the decarbonization of the coffee value chain, bringing the sector closer to net-zero targets. 

While similar to shade-grown coffee, which focuses on cultivating coffee under existing tree canopies, agroforestry is broader in scope. It involves the intentional planting of diverse tree species to achieve multiple environmental and economic benefits beyond just shade, such as producing timber or fruits, improving soil health, and enhancing farm resilience. 

Agroforestry also enhances the resilience of coffee farms to climate change by protecting plants from extreme weather, ensuring better crop yields, and reducing reliance on synthetic inputs like fertilizers. Many companies are pioneering this approach, setting an example for sustainable coffee production and mitigating the environmental impact across their supply chains. The trees planted act as a natural carbon sink, directly addressing Scope 3 emissions and supporting long-term sustainability goals. 

Water Management 

Water management plays a critical role in decarbonizing coffee value chains, especially when addressing Scope 3 emissions linked to resource use. Efficient water management is closely tied to reducing Scope 3 emissions, as it lowers energy consumption for water systems, enhances soil carbon sequestration, and minimizes resource use across the coffee value chain. Many coffee brands utilize efficient water management practices, aiming to minimize water consumption and improve water quality across its supply chains. Through precision irrigation techniques, such as drip irrigation, coffee farms reduce unnecessary water use, while protecting vital water sources from contamination. 

This intervention also includes preventing soil runoff and water wastage, ensuring the long-term sustainability of water resources. Proper water management not only protects local ecosystems but also supports climate resilience by improving soil health and promoting sustainable farming practices. These initiatives align with the growing trend of enhancing value chain transparency and accountability, as companies aim to meet climate reporting standards like the Science-Based Targets initiative (SBTi). 

Regenerative Agriculture 

Regenerative agriculture has emerged as another key strategy to decarbonize coffee production and build a more resilient value chain. Many major coffee brands are exploring regenerative practices that prioritize soil health, biodiversity, and carbon sequestration. These practices go beyond organic farming by focusing on restoring ecosystems and reducing Scope 3 emissions tied to inputs and land use. 

Key elements of regenerative agriculture include crop diversification, cover cropping, and the reduction of chemical fertilizers and pesticides. By improving soil structure and boosting natural fertility, regenerative farming reduces the need for carbon-intensive inputs while storing more carbon in the ground, contributing to climate-positive impacts across the value chain. This is crucial for coffee companies striving to create climate-resilient supply chains, enabling them to remain competitive in a carbon-conscious market. 

How to credibly report impacts from value chain interventions in coffee farming 

To effectively report the climate impacts of interventions in your coffee value chain, your organization must demonstrate that the emission reductions are authentic and contribute to your climate objectives. 

Challenges such as limited traceability and diverse cultivation methods can complicate the reporting of emissions from agricultural interventions. SustainCERT verifies Scope 3 emission reductions and removals through its platform, incorporating safeguards against double counting. The independent verification statement generated can be integrated into your company’s annual emissions reporting, in line with GHG Protocol Scope 3 guidelines. 

Co-claim climate outcomes with Impact Units 

Building collaboration with value chain partners can help streamline the resources required to meet your company’s climate targets. By co-claiming climate outcomes with other entities involved in the coffee value chain, companies can stimulate joint investments in decarbonization. Effective engagement with suppliers is essential to coordinate these efforts. 

Through SustainCERT’s impact tracking platform, stakeholders across the coffee value chain can claim the same impacts as long as they operate at different impact layers. These layers include stages such as raw coffee bean production, mid-product manufacturing, and retail. Impact Units, which denote emission reductions and removals, can be transferred within the SustainCERT platform between different layers, enabling companies to co-claim climate mitigation outcomes while avoiding double counting. 

The SustainCERT platform includes features that allow emission factors to be adjusted based on the actual quantity of coffee sourced. For instance, it can help calculate how farm-level emission reductions in coffee production translate to various processed products, ensuring accurate and transparent reporting. 
 
This is part three of our series delving into value chain interventions in food and agriculture. Follow along to learn more about emission reductions in row crops, cacao, and dairy in the other instalments of the series. 

Looking to report and (co-)claim verified Scope 3 emission reductions?

Find out how SustainCERT’s value chain impact verification can help you.