NKG’s Approach to EUDR Operationalization – Keep the coffee flowing to the EU

August 1, 2024

The European Union Deforestation Regulation (EUDR) presents significant challenges to companies dealing with agricultural commodities, such as Neumann Kaffee Gruppe (NKG). Nevertheless, NKG’s goal and ambition are to ensure uninterrupted coffee flows into the EU. Therefore, the green coffee service group has stepped up its efforts to ensure business continuity on time.

Hamburg, Germany, 01.08.2024 NKG is well-prepared to meet the challenges of the EUDR on multiple levels:

  • Through its 17 export companies, NKG has established long-standing relationships with suppliers and possesses in-depth knowledge of the local coffee sectors.
  • The proprietary supply chain programs NKG Verified and NKG Bloom exceed the requirements of EUDR and other regulations, serving as initial blueprints for compliance. All NKG Verified supply chains and some NKG Bloom supply chains will be EUDR aligned by the end of Q3-2024. Furthermore, NKG’s field teams work daily with producers, providing services to address root causes of deforestation.
  • So far, NKG’s efforts have focused on information sharing, fostering a common understanding of the regulation both internally and with business partners. The group has established protocols for the consistent mapping of coffee plots and the creation of high-quality polygons, which are essential for accurate monitoring and compliance.
  • An effective response to EUDR requires substantial efforts and investments in both human and technical resources. The worldwide operating group can leverage the power of over 300 colleagues working in sustainability globally.

NKG’s geodata-based Due Diligence Process

 Everything starts with high-quality geodata. NKG has set up a comprehensive, reproducible methodology to validate geodata quality, its plausibility as coffee growing area and check specific deforestation and legality risk. This method serves as a global NKG benchmark and is based on publicly available resources. The methodology will be made available across NKG, making deforestation analysis ubiquitous and accessible across the group. NKG regularly updates and refines its methodology based on customer and regulatory requirements.

NKG’s Due Diligence System (DDS) powered by osapiens

NKG’s DDS is the cornerstone of the group’s approach to EUDR. Efficient due diligence processes are essential to manage information flows effectively, which will be assured by one unified NKG system for EUDR and Business Partner Due Diligence, among others. Therefore, NKG partners with osapiens.

“By collaborating with osapiens, we aim to strengthen NKG’s position as a leading green coffee service provider. This partnership will increase efficiency and maximize value creation by enhancing our business relationships. Additionally, it will ensure the best possible and streamlined preparation for EUDR compliance across our entire group” explains NKG Group COO, Ruben Scholz.

osapiens is an exceptional partner in NKG’s mission to enhance supply chain management and regulatory compliance. With osapiens, the group will harmonize data, establishing clear protocols for both suppliers and customers. For seamless and efficient data flow, a single endpoint will be provided and complemented by a portal, including applicable EU TRACES information. Additionally, osapiens offers a comprehensive range of capabilities for business partner due diligence. NKG will be able to deliver complete information packages at a shipment level, ensuring thorough and accurate documentation. Through the combination of an integrated Due Diligence System with high quality geodata analysis NKG will keep the coffee flowing into Europe under EUDR.

For more information about NKG’s approach and possibilities to get in touch please visit nkg.coffee/eudr.