The existing investment (#36083), triggered PS 1&2. Discussions related to this repeat investment led to the triggering of PS 1, 2, 3 and 6. Issues related to PS4: Community Health Safety and Security are not expected to occur as there is only minimal processing (and hence industrial activity) of the collected coffee; P5: Land Acquisition and Involuntary Resettlement have not occurred to date and are not expected as a result of this repeat investment; lands used for growing coffee (and replanting) are already in the control of individuals/farmer cluster. Issues related to PS7: Indigenous Peoples and PS8: Cultural Heritage are not expected with this investment for the following reasons: there is no presence of Indigenous Peoples or known cultural artefacts within the land being farmed for coffee. Screening and assessment of these issues against PSs requirements have been, and will continue to be, done through Nespresso’s E&S management system (ESMS), complimented by management at origin by the implementing partners.                                               

This proposed investment is expected to have limited environmental and social impacts which are expected to be site-specific and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to recognized performance standards, GAPs and procedures, guidelines and design criteria as described in the following sections. Thus, this is a Category B project in accordance with IFC’s 2012 Environmental and Social Sustainability Policy. By complying with the criteria in the documents outlining Nespresso’s management of such project (such as the AAA program), the project is designed to avoid, minimize and manage E&S risks and impacts in compliance with expected national legal and regulatory requirements, IFC’s Performance Standards (PSs) and applicable World Bank Group (WBG) General and sector-specific Environmental, Health and Safety (EHS) Guidelines for Food and Beverage Processing and Perennial Crop Production.                                                 

       The scope of previous due diligence for #36083 reviewed the E&S Assessment and Management System (ESMS) in place at Nespresso. In addition, the management capacity and corrective actions of the implementing entities (in the target countries for that investment, namely Kenya and Ethiopia) were reviewed. This document takes a similar approach, updating the discussion of the Nespresso management system and, where necessary (such as when standards have been added or those in existence updated), adding that detail whilst also looking at the operations of the implementing entities to date in the two new target origins, Uganda and Mozambique.

To address the E&S impacts associated with its value chain, Nespresso promotes sustainable agriculture practices to farmers through its AAA Sustainable Quality Program. Originated in Costa Rica in 2003, in partnership with the Rainforest Alliance Network (RAN), this program forms the basis of the management efforts implemented by implementing partners in the coffee revival areas. As was previously determined (in 2016), the overall framework is considered consistent with the requirements of PS1.

Policy. Nespresso policies, principles and guidelines are laid out in several documents, originating from Nestlé (as the parent company to Nespresso) and at Nespresso itself. For example, the Nestlé Corporate Business Principles guide the actions and behaviors of everyone at Nestlé. They provide the ethical framework regarding doing business, ensuring integrity of action and compliance with laws, regulations and Nestle’s own commitments. They relate to consumers (regarding nutrition, health and wellness, quality assurance and product safety and consumer communication), employees (including Human rights, diversity and inclusion and safety and health at work), the value chain (responsible sourcing, customers and business partners, environmental sustainability), business integrity (ethics and integrity, privacy and ethical data management), transparent interaction and communication (internal interaction and communication, engagement and advocacy) and compliance. Specific requirements are further contained within the Nestlé Responsible Sourcing Standard. That Standard replaces the Nestlé Supplier Code, the Nestlé Responsible Sourcing Guideline and the Nestlé Commitment on the Responsible Use of Materials from Agricultural Origin. It forms the basis of the commitment to the OECD Guidelines for Multinational Enterprises, the Core Conventions of the International Labor Organization (ILO), and the United Nations Sustainable Development Goals (SDGs). 

Nespresso’s sustainability strategy is called The Positive Cup (www.sustainability.nespresso.com/discover-the-positive-cup-hub). The strategy integrates people and communities (the value chain), the circular economy (conserving natural resources (including aluminum recycling) and promoting renewable energy), climate change action, partnerships (driving innovation to amplify impacts) and innovation. A cornerstone of the strategy is the Nespresso AAA Sustainable Quality ProgramTM which is described as a unique green coffee sourcing approach that combines a focus on quality, sustainability and productivity. The AAA program aims to secure the supply of the highest-quality coffees required for Nespresso consumers and improve the livelihoods of the farmers that grow them, while protecting the environment. The Tool for the Assessment of Sustainable Quality (TASQ TM) sets the guidelines to evaluate farms and wet mills participating in the Nespresso AAA Sustainable Quality TM Program and identifies the needs for continuous improvement within each Cluster. It also evaluates farmers, owners or managers, as they seen to be the actors and keepers of change. The TASQ TM is divided into three modules; quality, social and environment (together, sustainability) and farm economics. Criteria are categorized as either pre-requisite (PR - there being zero tolerance to non-compliance), core criteria (designed to push AAA farms and wet mills toward a strategic compliance level within a 3 year timeframe) and advanced criteria (used to assess farms and wet mills´ compliance against additional practices and to collect further performance indicators). The social and environmental elements are further described below, as they provide the framework to identify E&S risks and impacts associated with the AAA program, and by association, the coffee to be sourced by the Revival Program (which was added to the AAA program in 2019) to be funded by this investment. 

Identification of Risks and Impacts, including Supply Chain Risk Assessment and Management. As noted above, the TASQ TM contains the sustainability criteria against which risks and impacts found at farms (by definition, the supply chain) and wet mills are assessed. The criteria are also used to evaluate farms and wet mills against requirements found in international standards, such as the Sustainable Agriculture Network, Fairtrade (FLOCERT and FTUSA) and FLA (Fair Labor Association). All farms and wet mills in the AAA program are assessed every year. Farms and wet mills failing to comply with 100% of the applicable CORE criteria after 3 years of AAA enrolment are not eligible for AAA designation.

Sustainability criteria include the following areas of focus: working conditions, children and youth, OHS, water, biodiversity and erosion. Based upon initial assessments, an action plan to ensure compliance with requirements may be developed that the farm will follow in order to be admitted into the AAA program. Details on specific criteria around labor and working conditions, including OHS, and resource use and pollution prevention and that of biodiversity protection and promotion – such as that envisaged by the IFC PS – can be found in the relevant sections below.

Management Programs. The application of the above criteria is integrated into the overall Reviving Origins Program managed from Nespresso’s HQ utilizing a variety of management elements. In general, these are implemented by a local manager, hired to oversee the cluster and a team of agronomists on the ground, working as part of the implementing partners who provide farm assessments, training and knowledge transfer. The result is the development and implementation of a cluster’s Operational Master Plan (OMP) which is the standardized process to manage field operations and includes objectives, budgeting and activities for fulfilling AAA strategic objectives in each Cluster and allows for systematic data collection, monitoring and impact evaluation. An OMP contains procurement goals, cluster KPIs, operational plans for agronomists and farmers, org. charts, budgets and records of agronomist’s activities. OMPs are one of the key drivers of continual improvement, which is a stated objective of the AAA program. Nespresso shared an example of an OMP from a cluster in Uganda with IFC. It is judged to be a comprehensive document, including detailed KPIs around training, adoption of good practices on production and sales, financing, seed distribution, gender and child education among other elements. The OMP presents results of prior year efforts and progress reports for the current year against these targets.

To ensure compliance with these requirements, Nespresso funds independent third-party evaluation and monitoring of the AAA program; suppliers are required to support these assessments with logistics and organization in-country. Reports – having been undertaken on a global level since 2015 – can be found here: https://sustainability.nespresso.com/progress-against-goals-and-ambitions. Detailed reviews at the cluster level are also carried out; an example of one from clusters in Costa Rica was shared with IFC. Lastly, through the AAA Program, Nespresso has been promoting group certification under the Rainforest Alliance seal. As per the agreed upon requirements between Nespresso and suppliers, every Cluster should have at least one group working towards obtaining or maintaining the Rainforest Alliance certification or Fairtrade Certification, following the objectives set out in the specific Cluster annual meeting. If a group of more than 5 farms in the AAA Program seeks to obtain the Rainforest Alliance certification, Nespresso finances the first year of certification audit fees in common agreement with the Cluster Manager.

Suppliers and implementing partners ensure the fulfilment of the Nestlé Corporate Business. They are required to support Nespresso in securing coffee volumes to fulfil its sourcing targets. They account for the physical and economic traceability of the coffee and ensure transparency of the sustainability prices being paid by Nespresso to farmers and ensure complete transfer of the premiums to farmers. They ensure competitive coffee prices in the different regions where working with Nespresso, and then complement them with the AAA Premium. They also ensure strong surveillance on child labour, forced labour and harassment which contravenes the International Labor Organization (ILO) and/or local legislation on farms within their Clusters.

Organizational Capacity and Competency. The AAA program is run by a competent and experienced team from the Nespresso HQ in Lausanne. Each origin is overseen by a Sustainability Country Manager who coordinates with those responsible for other activities within Nespresso (such as quality, food safety, marketing, commercial, etc.) while overseeing the E&S aspects of the country-based program and its compliance (and that of the suppliers/implementation partners) with the requirements of the AAA program. Implementing partners, who are chosen based on their technical ability to meet the many criteria contained in the Business Principle and Supplier Codes as well as the criteria of AAA program, provide on-the-ground capacity and experience at the farmer interface. Details on those capabilities found in Uganda are provided in the project description section above. For the program in Mozambique, GP employs a coffee lead (who reports to the program director), and who in turn oversees supervisor and area leads, a Nespresso consultant, and 11 technicians, including one responsible for wet mill processing. Those whom IFC spoke to during the virtual appraisal had many years of in-country experience around agricultural and social enterprises and growing coffee in East Africa.

Monitoring and Review. Monitoring and review/evaluation activities are programmed from Lausanne and implementation is a joint responsibility with all parts of the supply chain being responsible for different actions. For example, Operational Master Plans (OMPs) require input from all parties, from HQ down. All farms that are part of the AAA program are registered using Nespresso’s F.A.R.M.S data management system. This tool is used to compile and analyze farm-based data/information. All information regarding the Cluster (farm information, TASQ TM review results, recordation of all farm visits and trainings provided, etc.) is contained therein. All farms in the AAA program are assessed for compliance with program requirements by suppliers on a yearly basis. In addition, a sample of farms within a cluster are assessed using third-party independent auditors. Note that a farm in the AAA Program will be excluded, if it fails a pre-requisite criteria (mandatory practice that is part of the CORE criteria), if it does not comply with all of core TASQ TM criteria three years are entering the AAA program and/or if a farm is not commercially active with the program for more than three years.

At the corporate level, Nespresso publishes a variety of sustainability reports (see for example https://www.sustainability.nespresso.com/reports).  The Positive Cup report was created in accordance with the Global Reporting Initiative (GRI) G4 standards.                                            

    Human Resources Policies and Procedures. The Nestlé Employee Relations Policy applies to those working for Nespresso. This policy has been mandatory since 2010 and provides a frame of reference for the collective relationships with trade unions and other employee representatives based on the “human rights and labor practices” chapter of the Nestlé Corporate Business Principles and on the Human Resources Policy. Through the Employee Relations Policy, the company states that is complies with the laws applicable in the countries in which it operates and adheres to the eight fundamental Conventions of the International Labor Organization (ILO), the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the United Nations Global Compact and the ILO Declaration on Multinational Enterprises and Social Policy. The implementation of the Policy is stated as being a joint effort on two levels: at the Corporate level to set direction and to give guidance to local operations to live up to this framework; and at local level to take all necessary actions to implement the Policy. Local management must ensure collaboration and consistency between all Nestlé businesses in the country as well as to enforce Nestlé group principles, policies and standards. IFC reviewed the HR manual in place for operations in Uganda; it is aligned with the above Employee Relations Policy and those requirements within PS2. The operations in Mozambique are currently conducting an ETI audit as they continue to develop their HR policies in alignment with the Employee Relations Policy. 

Working Conditions and Terms of Employment. The review of HR management was done during the IFC 2016 appraisal and concluded that the HR practices and outcomes at Nestle, and therefore Nespresso, were in accordance with the requirements and objectives of this Performance Standard. Specifically, the following was reported: that Nestlé respects the right of employees to meaningful and constructive dialogue over issues that relate to working conditions and the workplace environment; that employee representatives are expected to make all necessary efforts to develop fair and constructive negotiations to reach sustainable agreements with employees; that Nestlé respects the right of employees to engage in union activities if they so choose; that Nestlé respects the personal dignity, privacy and rights of every employee and is committed to maintaining a workplace free from discrimination and harassment. Further, that Nestlé does not discriminate on the basis of origin, nationality, religion, race, gender, age or sexual orientation; verbal or physical harassment by any employee based on any of the above or any other reason is prohibited. Lastly, that failure to comply with the Human Resources Policy and the Code of Business Conduct may result in disciplinary action, including the possibility of dismissal and, if warranted, legal proceedings or criminal sanctions. Nestlé has an Integrity Reporting System in place through which employees can file grievances related to labor practices.

Workers engaged by third parties. Nespresso’s AAA Shared Commitment (dated February 2016 and thus in force at the time of the disclosure of the ESRS for project #36083) further describes the company’s requirements of AAA supplier (implementing) partners, including the need for them to operate with ethics and integrity as well as in compliance with the Nestlé Corporate Business Principles and the Nestlé Supplier Code. As was the case then, it is now: that Nespresso requires all suppliers to adhere to non-negotiable standards including the company’s commitment to international standards, such as the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, the Core Conventions of the International Labor Organization (ILO) and the 10 Principles of the United Nations Global Compact. Therefore, all suppliers are required to grant their employees the right to Freedom of Association and Collective Bargaining in accordance with all applicable laws and regulations; that they are prohibited from benefitting from forced labor and only employ workers who are legally authorized to work. Further, that they are prohibited from using child labor; and that they provide fair and equal treatment of all employees including non-discrimination during hiring practices. Lastly, that such implementing entities ensure that employees work in compliance with all applicable national labor laws pertaining to regular working hours and rest time (including holidays, and maternity and paternity leaves) and that they are paid wages and benefits that, at a minimum, comply with national laws or industry standards and that the working environment is based on the premise of being both safe and healthy for all employees. As such, Agri Evolve Uganda Ltd, Kyagalanyi Coffee Ltd and Volcafe Ltd (as part of the Uganda program) and those from the management of the Gorongosa Project that are implementing the program in Mozambique are required to comply with the above set of requirement for the employees that are a part of the overall Revival Origins Program (and thus a part of the Nespresso AAA program).

The specific elements of the TASQTM regarding working conditions at the farm level include the following: forced labor; avoidance of harassment and abuse (that no worker shall be subject to any physical, sexual, psychological or verbal harassment or abuse); no discrimination (according to fundamental ILO conventions 100 and 111 and national legislation); right to receive no less than the minimum wage, freedom of association and collective bargaining (in accordance with ILO Conventions 87 and 98). For children and youth, there is the requirement to prevent child labor (in accordance with ILO Conventions 138 and 182 as well as the Minimum Age Recommendation 146).

Occupational Health and Safety. Whereas it was not possible to visit operating sites as part of this appraisal, prior review of operations, and conversations with Nespresso personnel showed that the company is committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain; indeed, such is required as by the Nestlé Corporate Business Principles. Further, as has been previously reported, required by Nestlé’s policy on safety and health at work, an occupational safety and health management system is implemented at all sites, which is required to meet or exceed the requirements of the health and safety laws applicable in the countries in which the company operates. As part of this OHS management system, the identification of hazards is undertaken at all sites and actions are designed to minimize danger to individuals (as noted above in the PS1 section describing scope of risks and impacts assessment). The 2016 appraisal also reported that emergency and contingency plans to deal with residual risks are also established at each site to further minimize threats, which include communicating with local communities and their emergency services and providing them with adequate health and safety information on Nespresso operations; such actions are ongoing. Milling/warehousing sites undergo regular audits against recognized OHS standards and are certified by independent accredited bodies to ensure management systems meeting stated objectives.

The TASQTM elements at the farm level related to OHS include the following: the safe use of agrochemicals (all workers who apply, handle, transport or come into contact with agrochemicals or other chemical substances must be given general training on the safe use and handling of chemical inputs); prohibition of use of certain agrochemicals (those with biological or organic substances not legally registered in the country for commercial use, those not legally registered in the country, products banned by the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides, and the Stockholm Convention on Persistent Organic Pollutants and those with technical grade WHO Hazard Classification class Ia or Ib active ingredients); and, safe storage of both pesticides and fertilizers. An image of typical PPE required to be used by those working with agrochemicals was shared with IFC; the equipment depicted appeared to be well tailored to such duties.

Whereas a review of the implementation of the above requirements on-the-ground was not possible due to this being a virtual appraisal, the adherence to the above was discussed during calls with both Nespresso personnel responsible for country management in both Uganda and Mozambique and with management of the implementing partners. Such conversations provide IFC comfort that the comprehensive provisions of the policy are being implemented; as such, and based on those interactions, IFC believes that labor and working conditions experienced by those working at all levels of the AAA program as it pertains to this investment are in accordance with the objectives of this Performance Standard. Regardless, when travel is permitted, IFC will visit the Revival Origin Program locations in Uganda and Mozambique that are being financed as part of this proposed investment to determine first-hand the efficacy of the performance regarding labor and working conditions at all levels within the coffee supply chain. If such first-hand review determines the need for ESAP items pertaining to labor and working conditions, then such action items will be developed and disclosed publicly, as well as being added to relevant investment documentation.  

Covid-19 Situation. Nespresso reported minimal disruption due to the Covid-19 pandemic. HQ operations, which are run on digital platforms, were not impacted. Operations in production facilities were impacted with some facilities being forced to temporarily halt operations due to lockdown measures being in effect. When operations could continue, measures to protect the health of employees (around sanitation, social distancing, etc.) were mandated. Likewise, similar contingency measures were required in the farming supply chain. Communication materials were prepared and disseminated to heighten awareness of the virus. AAA field teams worked remotely and used technology to reach out to farmers virtually. Nespresso also set up a fund to support AAA farming communities during the crisis. This fund was to support food security, implement safety measures, buy protection equipment and secure the coffee supply. Several tools and processes were developed and implemented jointly (between Nespresso and implementing partners in the field) to gather information; such was integrated into a dashboard to allow real time review of the situation within AAA regions                                               

     Resource Efficiency. The main inputs associated with growing rain-fed, shade-grown coffee are associated with improving and/or maintaining soil quality enough to allow for the growth of the coffee plants. The TASQ TM addresses these resource efficiency issues by requiring that farmers use soil coverage and other soil conservation practices to prevent erosion during the rainy season. Natural canopy and mid-story vegetation also help in reducing erosion potential by reducing runoff. In addition, criteria require that weeds are managed through practices, such as selective weeding and the use of live cover crops, other vegetation or mulching so as to minimize use of agro-chemicals. Tillage is not used to control weeds and slash and burn practices are not permitted. Further, given the advantages of a more natural system in which the coffee is grown, the naturally occurring insects and birds contribute to pest control and therefore limit the use of pesticides.

As to processing, the amount of water required in wet milling is subject to limits. The TASQ TM recommends coffee processing practices keep water consumption below 20 liters of water per kilogram of dry parchment coffee. In order to achieve such targets, water should not be used to transport cherry coffee or coffee pulp, or for de-pulping. The preferred practice is to recycle the water used to sort coffee cherries and remove floaters in a classification tank (siphon). Low water-use equipment (Penagos) is utilized in the wet mills. Wet mills are assessed in order to prevent surface water contamination from runoff. As to operations on the farm, farmers are instructed not to discharge polluting substances into water, directly, or indirectly; consumption must be based on responsible use (and suppliers are to take measures to ensure water is not wasted and consumption is regulated by using available technology and resources responsibly).

Irrigation is only used within one AAA cluster in Brazil (and within that cluster, only within 60% of farms). In that particular application, mechanisms are employed to precisely determine and demonstrate that the amount and duration of irrigation water applied are not wasteful or excessive; note therefore that neither project subject to IFC financing in this proposed investment currently uses irrigation, but if that were to change then the water amount and the duration of the application will be based on similar techniques such as reference to climate information, measuring available soil moisture, and soil properties and characteristics, requiring system maintenance, etc. so as to ensure efficient use of water.

The Kyagalanyi dry mill has installed equipment designed to reduce energy usage; for example, they fuel their dryers using coffee husks. Also, practices around improved dust management have been implemented (which also has an OHS benefit) and have provided secondary containment for all fuel storage to be in aboveground and bunded tanks.

Pollution Prevention. Regarding effluent management and possible impacts upon surface water quality due to unmanaged runoff or from high organic loads in processing effluents, as was highlighted in the risk and impacts assessment section above, the TASQ TM requires that farmers do not discharge polluting substances into water, directly or indirectly. This requirement applies to wastewater, pesticides, wastes, and fuels. Specifically, organic or inorganic solids must not be deposited into aquatic ecosystems; this includes solids such as domestic or industrial waste, rejected products, rubble, soil, and stones from excavations, rubbish from cleaning land, or other materials. As noted above, practices such as these are audited every year as part of a cluster maintaining is AAA designation. As noted elsewhere in this document, there are limited numbers of micro wet mills associated with the two origins targeted for support through this investment. Despite the requirements regarding water use and discharge and the use of low water-use equipment, IFC will review the operational performance of both as part of follow up visits to the two locations. Further, Nespresso will be required to report annually on the performance of these mills with respect to compliance with applicable local regulations and those limits contained within WBG/IFC EHS Guidelines in its annual AMR report.

Greenhouse Gas Emissions. The practice of shade grown coffee encourages greater carbon sequestration than sun grown coffee both in the tree cover and in soil that is better managed. Whereas specifics on the GHG emissions equivalent for this proposed project were not available at the time of the appraisal, Nespresso reports publicly (https://nestle-nespresso.com/news/every-cup-of-nespresso-coffee-will-be-carbon-neutral-by-2022) that is has already achieved carbon neutrality in its business operations (scopes 1 & 2) since 2017. In addition, Nespresso reports on its progress towards achieving 3 targets with respect to climate change in its Creating Shared Value Report: 2019 Status and 2020 Outlook. Those targets are as follows (with results in parenthesis): Reduce the carbon footprint of a cup of Nespresso by 28.0% vs. 2009 (a 23% reduction had been achieved by 2019);  Inset (i.e. by planting trees in coffee growing areas) 100% of the Nespresso company’s operational carbon footprint - Scope 1 and 2 GHG emissions equivalent to the global volume of capsules sold (100% inset having been achieved by 2018); and, strengthen coffee landscape resilience through extensive tree planting towards 5 million trees (with 4.5M trees having been planted by 2019).

Pesticide Use and Management. As is noted in the section on OHS above, the use and management of pesticides is assessed using the TASQTM criteria. The types and amounts are regulated and/or restricted depending on the type of chemical and its inherent risk classification                                              

   Sustainable Management of Living Natural Resources. The Nespresso AAA Shared Commitment being advanced as part of the project includes requirements for certification of existing coffee farms by credible standards (e.g. Rainforest Alliance) and explicit goals for maintenance and promotion of biodiversity values (e.g. conserving existing natural ecosystems, restoring native vegetation, maintaining wildlife corridors, and contributing to management objectives of nearby protected areas). Further, the commitment requires (i) that no hunting is practiced on and around farms, and farmers, workers or families do not keep endangered wildlife in captivity; and (ii) no logging or clearing of natural vegetation is practiced on and around farms, and natural ecosystems, including water sources, are protected.

Supply Chain. Risk screening was done during appraisal of the project’s known sourcing areas using the Integrated Biodiversity Assessment Tool (IBAT). The project’s sourcing areas present a high contextual risk.

In Uganda, the project activities are focused in the Rwenzori region, Western Uganda. The western edge of the sourcing landscape is immediately adjacent to Rwenzori Mountains National Park (IUCN Cat. II), which is a World Heritage Site, Key Biodiversity Area, and Alliance for Zero Extinction (AZE) site. The eastern edge of the sourcing landscape is immediately adjacent to the Queen Elizabeth National Park and Lake George Key Biodiversity Area, which includes the Lake George Ramsar site, Queen Elizabeth National Park (IUCN Cat. II) and UNESCO Man-and-Biosphere Reserve. The sourcing areas are existing coffee farms outside of the protected areas and treated as modified habitat, albeit adjacent to critical habitats. Project activities in this landscape include promotion of sustainable practices (e.g. reforestation with indigenous trees (10,000 planted in 2020, and a target of 40,000 to be planted in 2021, for example), erosion management, promotion of energy saving stoves to reduce consumption of firewood, ) within and around existing coffee farms that will improve and restore biodiversity value of these areas. Opportunities for collaboration with the Uganda Wildlife Authority (UWA) are being discussed around re-forestation, anti-poaching/alternative income projects among others.

In Mozambique, the project activities are focused within the Gorongosa landscape, which overlap the Gorongosa National Park (IUCN Cat. II) and its buffer zone (IUCN Cat. IV). This is also recognized as the Gorongosa Mountain and National Park Key Biodiversity Area. The park is undergoing active restoration of habitats and reintroduction of extirpated species (e.g. African Wild Dog). The project activities in this landscape are aligned with this effort in the form of an agro-forestry restoration project based on shade-grown coffee using indigenous forest species to promote community support for conservation of the protected areas, developed in partnership with the conservation partners. The broader landscape is critical natural habitat, with areas of degraded natural or modified habitat linked to past and current human activities (e.g. hunting, farming). Net gain is considered feasible given the project has minimal negative impact and is explicitly aligned with restoration and conservation objectives for the landscape (i.e. restoration of forests, improved biodiversity quality of existing coffee landscapes, and support to communities as part of existing conservation management plan).

The certification scheme and projects described are adequate for managing the known risks of the project. Given proximity and/or overlap with critical habitats and protected areas, continuation of engagement with protected area managers and NGOs (e.g. KBA Partnership) is recommended as part of broader stakeholder engagement efforts to maintain and promote alignment with conservation objectives