Brewing a sustainable future: a firm-level analysis of sustainability initiatives in the coffee sector

Abstract

The coffee industry has long relied on third-party certification as their approach to sustainability, driven by customer demand and changing consumer behavior. Today, multiple forms of sustainability engagement have developed in the industry. This study uses a machine learning approach to analyze the engagement in sustainability initiatives of 100 firms active in the German market. Results reveal that company size and value chain position influence choice and engagement intensity in sustainability initiatives. A complementary literature analysis on policy recommendations to promote sustainability engagement in the coffee industry revealed a fragmented and insufficiently granular picture to address the diverse needs of stakeholders. While company characteristics significantly influence their choice of sustainability initiatives, policymakers often adopt generic approaches that do not reflect these nuances. Future research could extend this approach to deepen understanding or validate findings of policies for sustainable transformation in the coffee sector to other critical crops.