The coffee sector is facing several sustainability challenges. We ask whether addressing these is transforming the entire coffee sector or rather leading to market differentiation. Drawing on stakeholder theory and global value chain analysis, we analyse how the coffee sector approaches sustainability by examining the sustainability efforts of a random sample of 513 companies. We also identify the factors shaping the adoption of sustainability strategies. A third of companies report no commitment to sustainability, whereas another third report vague commitment. The final third of companies report tangible commitments to sustainability. Company characteristics and stakeholders affect the scope and type of sustainability strategy chosen. Large, risk-aware companies tend to conduct 'hands-on' governance, adopting internal sustainability practices along their value chain. Small, consumerfacing companies and producers rely on 'hands-off' governance, adopting external voluntary sustainability standards. Several sustainability issues remain underaddressed by most companies, including climate change and deforestation. We found indications of potential greenwashing by some companies. Addressing sustainability is not yet fully mainstreamed in the sector, though ambitious commitments by sustainability leaders and large actors signal increasing importance of sustainability as part of corporate social responsibility efforts. We observe market differentiation through sustainability with progressive companies adopting sustainability strategies that align with their stakeholders, depending on value chain characteristics. Our results indicate a notable reliance on internal sustainability practices. There is a need for common coffee sustainability indicators relevant for all actors along the value chain, which are consistent with the Sustainable Development Goals, and a transparent, mandatory reporting framework.
China's Belt and Road Initiative (BRI), launched in 2013, is rapidly subsuming much of China's political and economic involvement abroad. As a far‐reaching infrastructure development and investment strategy, officially involving more than 130 countries, the expansion of the BRI raises important questions about its environmental impacts and its implications for environmental governance. This article examines how China is actively and rapidly developing an institutional architecture for its envisioned “green BRI,” considering the key actors, policies, and initiatives involved in the environmental governance of the BRI. We find that the current institutional architecture of the “green BRI” relies on voluntary corporate self‐governance and a multitude of international and transnational sustainability initiatives. The effectiveness of the environmental governance of the BRI not only hinges on China's priorities and commitments, but also on the political willingness and capacity of BRI partner countries to maintain, implement, and enforce stringent environmental laws and regulations. We conclude by outlining several environmental governance challenges and an agenda for future research.
Highlights d Stickiness is key for accountability of supply-chain actors d The soy traders with the largest market share are geographically stickier d Stickier traders also show higher soy-deforestation risk d Stickier traders are also signatories of zero-deforestation commitments
Blockchain and distributed ledger technology (BC/DLT) provides distributed databases with decentralized governance, tamper-proof recording, high availability and non-copyable digital assets, which have made it a natural technological basis for supply chain management. In this paper, we introduce REALISTIC, a novel event-based modeling framework for supply chain networks (SCNs) that includes production processes. It extends McCarty’s Resources-Events-Agents (REA) accounting model with secure transformations, which, across the entire SCN, guarantee that certified output resources cannot be digitally produced ex nihilo, but require certified input resources of at least the same amount as what is produced. This generalizes the no-double-spend guarantee of current BC/DLT to (digital twins of) physical resources and their production. Authenticated human or robotic Internet of Things (IoT) actors digitally sign and cryptographically commit to the veracity of real-world events on an immutable database, without having to take responsibility for their aggregate consequences. User-specifiable interpretations, corresponding to queries and analytical functions in database systems, provide auditable aggregate information computed from recorded events across the entire SCN. This includes fine-grained and trustworthy tracing of final products through multiple stages of production processes, semi-finished products, quality certifications and transportation all the way back to their raw materials. We present a case study for an end-to-end coffee supply chain that tracks fine-grained and detailed information from a farmer’s coffee cherries to retail coffee bags, involving all its actors. Our model handles product provenance; auditable sustainability, quality and trade information; production processes from parchment via green to roasted coffee; product quality tests; farmer certifications; and transportation across the entire coffee supply chain. It is based on field work involving farmers, cooperatives, processors, traders, importers, and a major roasting company stretching from Colombia to Scandinavia. Its REALISTIC-based modeling is the foundation for the design of our prototype implementation, which includes Ethereum blockchain code, RDBMS-based server code and a web app client. Their source code is publicly available on GitHub.
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