The client and the client's request
JDE Peet's is one of the world's largest coffee and tea companies with a brand portfolio consisting of for example Douwe Egberts, L’Or, Senseo and Pickwick. JDE Peet's sources coffee and tea, and operates local manufacturing facilities. Having a global presence, they rely on an extensive value chain, ranging from agriculture, packaging, distribution and consumers.
JDE Peet's request was to perform a double materiality assessment (DMA) in line with latest ESRS (European Sustainability Reporting Standards) and consider applicable sector standards such as GRI 13. Next to this, the DMA should serve as an input for the strategy and be audit-proof.
In July 2023, the Corporate Sustainability Reporting Directive (CSRD) was adopted by the European Commission, which requires all large companies to report on their sustainability strategy and performance. A core concept of the CSRD is double materiality, which requires companies to assess the materiality of sustainability matters from both impact (inside-out) and financial (outside-in) perspective.
The process of performing a DMA requires a clear approach. Together with the core team, comprising of Finance, Risk and Sustainability, we set up a 4-step approach and identified synergies with the Enterprise Risk Management and Business Planning. The 4-step approach, also recommended under ESRS and by GRI, is as follows: 1) define, 2) identify, 3) assess, and 4) prioritize.
First, we defined what materiality means for JDE Peet's, drafted their organizational context and outlined their stakeholder groups. Next, we performed extensive desk research to identify potential material topics. Through a survey and interviews, we assessed the topics for impact and financial materiality and identified main impacts, risks and opportunities. Lastly, we facilitated expert sessions which were used to calibrate the results and determine thresholds. This led to a prioritization of the topics that are material for JDE Peet's, which means they will use these topics as input for their strategy as well as for reporting.
"We were happy with the knowledge and expertise 2Impact brought to the table. They challenged us along the project and ensured the results are meaningful for both strategy and reporting. Internal stakeholders were also satisfied by the robustness of the process.”Hugo Stuurman
Global Sustainability Program Lead - JDE Peet's