Nespresso’s recent B-Corp certification garners lively protests from civil society in the face of recent investigations showing serious human rights and environmental abuses.
1) Background. B-Corp Certification
B-Corp is a private scheme for certifying the social and environmental commitments of organizations that decide to put ESG(Environmental, Social, Governance) objectives alongside the companies’ own goal of generating profits. (1)
The certification, entrusted to accredited B-Labs, today attests to the social and environmental impact of 5,366 companies in 84 countries. Regardless of their legal status as benefit corporations, or benefit corporations, currently provided for in U.S. and Italian laws only.
2) Greenwashing risk
The risk of greenwashing-in the B-Corp case, as in the European Code of Conduct (2) and the vast majority of proclamations and certifications on CSR(Corporate Social Responsibility) and sustainability (3)-is all but inevitable. To the extent that:
– statements are not actually proven, perhaps through incorruptible records such as public blockchain systems, (4)
– stated commitments are consistent with the organization’s strategies at every stage of the supply-chain, in a true CSR(Corporate Sustainability Reporting) logic, (5)
– false or misleading communications and certifications are not subjected to deterrent economic penalties as well as Name and Shame. (6)
3) Nespresso, human rights abuses.
Fair World Project has been fiercely critical of the B-Corp certification issued to Nespresso. (7) A Nestlé group company that has a recent history of human rights abuses, including against children. Of particular note are the investigations on:
– Child exploitation of children aged 8 to 13, forced to work 8 hours a day in slavery conditions at the harvesting and loading of coffee in 45 kg bags, in Guatemala, (8)
– wage theft, up to one-third of the wages owed to workers, and inhumane working conditions in the largest cooperative in Mina Gerais (Brazil), whose membership includes 720 companies that supply coffee to Nespresso, (9)
– grueling shifts, up to peaks of 58-80 hours a week, including in the Swiss industries of Avenches, Orbe and Romont. (10)
4) Nespresso, environment and health
The environmental impact of Nespresso capsules is itself disastrous, as seen. (11) Billions of disposable primary and secondary packages, kept in bulky boxes, travel the world to distribute single servings of a few grams of coffee. Without even paying attention to the actual recycling of materials with appropriate collection channels.
The health of consumers would also merit further investigation. If only the authorities in charge of scientific evaluation of food safety risks would consider the presence in capsule coffee of carcinogenic and genotoxic organic compounds (furans, methylfurans) in amounts up to 10 times higher than in ground coffee. (11)
5) Nespresso, B-Corp Certification.
Nespresso-despite documented human rights abuses and considerations of the environmental impact of its capsules-has achieved B-Corp certification. In fact, poor scores in five areas of the impact assessment were offset by favorable scores on various procedures and paperwork.
Greenwashing is thus served in George Clooney’s steaming cup. Who, after the news of child slaves in Guatemala, said he was ‘sorry’. (8) Investors don’t even feel sorry for themselves, in defiance of the talk about so-called ‘responsible investing.’ As long as the business is profitable, which indeed it is(Nestle SA, NSRGY:OTCPK).
6) Open letter to B-Lab
Civil society-thanks to the initiative of Fair World Project, an oversight body of the eponymous fair trade circuit certification-wrote an open letter to the Global B-Lab, calling for a reform of the B-Corp certification standard. (12)
‘A welfare planforoffice workers in developed countries cannot compensate for worker abuse in developing country economies.’
Abuses of basic human rights, children’s and community rights, and land grabbing are not compatible with a certification that boasts reference to ‘social mission.’ Stanford University had already published a lucid analysis in this regard (Joanne Bauer, Elizabeth Humlas, 2017). However, without getting a dutiful response (13,14).
7) Unfair Competition
More than 30 B-Corp certified enterprises have joined the Fair World Project‘s open letter. ‘While we believe that B Corp standards can help transition our economy to one that is good for both people and the planet, certification now runs the risk of ‘washing the ethics’ of large conglomerates. This is an extreme disappointment‘ (Michael Bronner).
The unfair competition caused by B-Lab is blatant against small businesses also certified B-Corp like Peace Coffee, which has always provided fair trade organic coffee and reinvests profits with farmer cooperatives and local communities. On the other hand, the B-Corp brand is also the pride of Whole Foods, whose animal mistreatment and suppression of dissent are remembered. (15)
8) Interim Conclusions.
B-Lab is at a crossroads, exclude from B-Corp certification companies that do not ensure full compliance with the
UN Guiding Principles on Business and Human Rights
, the ILO(International Labor Organization) Conventions and the UN Convention on the Rights of the Child, or permanently lose credibility.
Dario Dongo
Cover image taken from Channel 4’s Dispatches video. Dispatches Starbucks and espresso the truth about your coffee. 3.3.20 Dispatches Starbucks and Nespresso the truth about your coffeeYouTube – Terramaterr WorldMar 3, 2020
Notes
(1) B Corp and Benefit Societies – Table.
(2) Dario Dongo.
EU code of conduct, responsible business and marketing practices or greenwashing?
GIFT(Great Italian Food Trade). 17.7.21,
(3) Marta Strinati. Palm oil, soybean, wood, coffee, cocoa. What is the purpose of sustainability certification? Greenpeace Report. GIFT (Great Italian Food Trade). 16.5.21,
(4) Dario Dongo.
Public blockchain and agribusiness supply chain, sustainability for producers and consumers.
. GIFT (Great Italian Food Trade). 28.2.21,
(5) Dario Dongo.
Sustainability reporting, ESG and due diligence.
. GIFT (Great Italian Food Trade). 18.7.22,
(6) Dario Dongo.
Green claim vs greenwashing and misleading advertising, antitrust guidelines in UK.
. GIFT (Great Italian Food Trade). 25.6.21,
(7) Anna Cunning.
Nespresso: Known for Human Rights Violations, Now B Corp Certified.
. Fair World Project. 5.4.22,
(8) Antony Barnett.
Dispatches: Starbucks and Nespresso: The Truth About Your Coffee
. Channel 4. 1.3.20,
(9) Daniel Camargos.
Labor inspectors fine leader of cooperative that supplies coffee to Nespresso and Starbucks
. Repórter Brasil. 9.9.21,
(10) Rachel Richterich.
Chez Nespresso, des travailleurs “épuisés”
. Le Temps. 11.2.20,
(11) Dario Dongo.
Coffee capsules, environmental costs and health risks.
. GIFT (Great Italian Food Trade). 24.6.19,
(12) Fair World Project.
The B Corp Standard is at Risk
. 15.6.21,
(13) Joanne Bauer, Elizabeth Humlas. Do Benefit Corporations Respect Human Rights? Stanford Social Innovation Review, Fall 2017.
(14) Matthew Mullen.
The B-Lab is wrong about human rights – but there’s a fix
. Open Democracy. 10.3.20,
(15) Dario Dongo. Whole Foods, Amazon. Animal abuse and suppression of dissent, a petition. GIFT (Great Italian Food Trade). 1.1.19,
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
