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Conectas Human Rights and the Articulation of Rural Employees of the State of Minas Gerais (ADERE-MG) & Starbucks
Lead NCPBrazil
Supporting NCP(s)United States
DescriptionSpecific instance alleging a non-observance of the OECD MNE Guidelines.
Theme(s)General policies, Human rights, Employment and industrial relations
Date21 Aug 2018
Host country(ies)Brazil
SourceNGO, Trade Union
Industry sectorAgriculture, forestry and fishing
StatusNot accepted
Summary

Read the Final Statement published by the Brazil NCP on 13 August 2020: English / Portuguese
Read the Follow-up Statement published by the Brazil NCP on 27 January 2022: English / Portuguese


On 21 August 2018, the NGO Conectas Human Rights and the Articulation of Rural Employees of the State of Minas Gerais (ADERE-MG) submitted a specific instance to the Brazilian NCP alleging that six multinational companies, including Jacobs Douwe Egberts (JDE) had not observed the General policies (Chapter II), Human Rights (Chapter IV) and Employment and industrial relations (Chapter V) provisions of the OECD Guidelines. The issues were related to several violations of labour and human rights in coffee plantations located in the South of Minas Gerais, in Brazil. The submitters further alleged that the company failed to observe due diligence standards in their supply chains.

On 12 August 2019, the Brazilian NCP accepted the case for further examination. With agreement of the parties, the initial case was then split into six distinct cases each involving one company: Starbucks, Nestlé, Illy, Dunkin’ Donuts, McDonalds, and Jacobs Douwe Egberts

On 11 March 2020, the Brazilian NCP decided not to accept the case involving Starbucks given a lack of evidence of non-observance of the Guidelines.

Although the specific instance was not accepted, the Brazilian NCP recommendeds that Starbucks continues to enhance its due diligence mechanisms. The NCP further suggested the company to encourage all business partners to observe principles of responsible business conduct, as compatible with the Guidelines, to promote continuous labour improvements in the coffee farms of its supply chain.

On 27 January 2022, the Brazil NCP published a follow-up statement to report on Starbucks’ actions taken in response to the aformentioned recommendations. The company notes the continuation of the Coffee and Farmer Equity Practices (C.A.F.E.) program, developed in collaboration with Conservation International, which broadly consists of a verification program designed to protect farmers, workers, and communities. The company further stated that it had increased verification of procedures through inspection and auditing of farms with whom it conducts business.

Notably, in 2021, the company reported opening the first Farmer Support Center in the country, aiming to educate producers on labor and environmental regulations and the needs of farmers in country.

The NCP has determined that more clarification may be needed in relation to the impact of these initiatives on coffee production in Southern Minas Gerais, the focus of the initial specific instance. As such, a second follow-up phase is scheduled for 18 July 2022.