Union Direct Trade Fund

Brewing Impactful Change

Introducing the Union Direct Trade Fund: Extending Our Commitment to making a positive Impact

At Union Hand-Roasted Coffee, we believe that coffee should not only be a memorable experience but also a force for positive change. Building on the success of our award-winning sourcing initiative, Union Direct Trade, we're thrilled to introduce the Union Direct Trade Fund—an exciting extension of our commitment to quality, sustainability, and the well-being of everyone involved in our coffee journey.

The scope of the Union Direct Trade Fund is aligned with both the Sustainable Development Goals and our Impact Strategy Key Performance Indicators. This holistic approach to investing in the coffee supply chain embraces social, environmental, and economic sustainability, all while actively advancing our mission and goals.

Our Footprint - Health and Wellbeing for People and Planet

Our fund focuses on the health and well-being of all stakeholders, from coffee origin to your cup. With your support, we're committed to promoting workers' rights, gender equity, and the health and well-being of the communities we serve. Our investments will ensure adherence to ethical sourcing standards, protect the planet through sustainable practices, and empower vulnerable groups in coffee-producing regions and in the UK.

Our Community - Building Stronger Communities

We believe that thriving coffee communities are the heart of our industry. The Union Direct Trade Fund contributes to creating sustainable livelihoods at origin, paying our farmer partners fairly, and fostering community engagement. Our goal is to ensure prosperous living standards for all. As a B-Corp certified business, we are holding ourselves accountable, and actively participating in the wider movement for positive change.

Our Sourcing - Future Proofing Specialty Coffee

Specialty coffee is at the core of our identity, and we are dedicated to securing its future. Our fund promotes sustainability across our value chain and supports science-based agricultural solutions to secure a diverse and sustainable supply of specialty coffee for generations to come.

With Union Direct Trade and the Union Direct Trade Fund, we're not just brewing coffee; we're brewing impactful change.

Together, we are building a more sustainable future, one cup at a time. Thank you for being a part of our Union!

Investment Focus

To align the scope of the UDT Fund with the specific KPIs from Union's Impact Strategy and the Sustainable Development Goals, UDT Fund's objectives and activities are as follows:

Our Footprint - Health and Wellbeing for People and Planet

Promoting Workers' Rights and Gender Equity
  • The fund supports projects that ensure compliance with Union Hand-Roasted Coffee's Code of Conduct for Ethical Sourcing among coffee producer partners
  • Specifically, the fund can invest in initiatives that promote workers' rights, gender equity, and health and well-being within the coffee value chain
Supporting Minority and Vulnerable Groups
  • The fund prioritises investments in coffee sourced from smallholder communities, particularly those from minority and vulnerable groups
Reducing Environmental Impact
  • The fund invests in projects that address climate change mitigation and adaptation within the coffee industry, promoting both environmental sustainability and wellbeing
  • The fund supports initiatives that promote sustainable land use, conservation of biodiversity, and responsible forest management within coffee-producing regions
Roadmap to Net Zero Emissions
  • The fund can support Union Hand Roasted Coffee's commitment to achieving Net Zero emissions by 2035
  • The fund can support the development of a detailed roadmap for carbon neutrality
Employee Wellbeing and Mental Health
  • The fund support initiatives that promote employee well-being and mental health within the coffee industry

Our Community - Building Stronger Communities

Creating Sustainable Livelihoods at Origin
  • The fund's investments actively contribute to the creation of sustainable livelihoods at coffee origins
  • Ensure that farmer partners benefit from fair pricing and cost of living analysis projects, which may lead to increased income
Supporting Women in the Coffee Supply Chain
  • The fund actively supports women in the coffee supply chain by investing in initiatives that increase the number of women-led producer groups
  • Organise capacity-building workshops for female leaders at origin to strengthen their management capabilities

Our Sourcing - Future Proofing Specialty Coffee

Preservation of Wild Forest Coffee
  • The fund invests in the purchase and support of wild forest coffee, particularly in regions like Ethiopia
  • Support cooperatives in achieving organic certification
Enhancing Traceability
  • The fund supports the implementation and testing of blockchain technology in the coffee supply chain to enhance traceability and transparency from bean to cup.
  • The fund supports the implementation and testing of blockchain technology in the coffee supply chain to enhance traceability and transparency from bean to cup.
Partnering with World Coffee Research
  • The fund donates to World Coffee Research or other charitable organisations to secure the future of specialty coffee as indicated in the Impact Strategy KPIs

Fund Scope

Fund Scope

Objective

The Union Direct Trade Fund supports Union Direct Trade, promoting sustainable, ethical, and high-quality coffee production while aligning with Union’s Impact Strategy and the United Nations Sustainable Development Goals (SGDs).

Investment Focus

The fund primarily invests in coffee-related businesses, including coffee producers, cooperatives, exporters, and other supply chain stakeholders. Consideration is given to investment in related impact areas, such as environmental sustainability and community development.

Geographic Focus

The fund's geographic scope focuses on countries where Union sources coffee and our local community in the UK.

Impact Expectations

Social Impact

The fund has a positive impact on coffee-producing communities and communities in the UK, by improving livelihoods, fostering fair labour practices, and supporting gender equity in the coffee supply chain.

Environmental Impact

The fund prioritises investments that promote sustainable coffee farming practices, reduce environmental degradation, and mitigate climate change risks.

Economic Impact

The fund enhances the economic resilience of coffee producers by providing them with fair pricing, access to markets, and capacity-building initiatives.

Quality and Innovation

Encourage investments in projects and initiatives that enhance coffee quality, innovation in coffee production, and the overall longevity of specialty coffee.

Governance Structure

Fund Manager

A fund manager with expertise in impact investing, ethical coffee supply chain, and sustainable agriculture.

Advisory Committee

An advisory committee consisting of experts in coffee production, sustainability, and impact assessment. The committee provides guidance and oversight to ensure the fund's activities align with its impact objectives.

Transparency and Reporting

Robust reporting mechanisms tracking the fund's impact. An annual impact report is published that details the fund's investments, outcomes, and progress toward impact goals.

Stakeholder Engagement

Engage with key stakeholders, including coffee producers, local communities, and Union’s customers and consumers, to gather feedback, build partnerships, and ensure the fund's initiatives address the needs of all stakeholders.

Compliance and Monitoring

Clear ethical and environmental guidelines for investments are established. A grievance mechanism for addressing concerns raised by stakeholders is implemented.

Investment Criteria

Specific investment criteria that align with the fund's impact objectives. Criteria include factors such as fair pricing, environmentally friendly farming practices, social welfare programs, and governance standards.

Capital Raising and Investment Strategy

Fundraising may involve investments from Union’s customers and consumers, impact investors, ethical funds, and institutions aligned with the Union’s mission.

Impact Measurement

A comprehensive impact measurement framework assesses the fund's social, environmental, and economic outcomes. Industry-standard metrics and indicators are utilised to quantify the fund's impact.

Risk Management

Risk management strategies mitigate financial, operational, and impact-related risks associated with the fund's investments.

Exit Strategy

Potential exit strategies for the fund, which may include divestment, sale of assets, or other mechanisms.

Union Direct Trade Fund Q&A

What is the objective of the Union Direct Trade Fund?

The Union Direct Trade Fund aims to support Union Direct Trade, fostering sustainable, ethical, and high-quality coffee production while aligning with Union’s Impact Strategy and the United Nations Sustainable Development Goals (SDGs).

Where does the fund primarily invest?

The fund primarily invests in coffee-related businesses, including producers, cooperatives, exporters, and other supply chain stakeholders. It also considers investments in related impact areas such as environmental sustainability and community development.

What geographic areas does the fund focus on?

The fund's geographic scope focuses on countries where Union sources coffee and the local community in the UK.

What impact stakeholders can expect from the fund?

Stakeholders can expect positive social, environmental, and economic impacts. This includes improvements in livelihoods, fair labour practices, gender equity, sustainable farming practices, environmental conservation, economic resilience for coffee producers, and investments in quality and innovation within the specialty coffee sector.

How is the fund governed?

The fund is managed by experts in impact investing, ethical coffee supply chains, and sustainable agriculture. It also has an advisory committee consisting of experts in coffee production, sustainability, and impact assessment. Robust reporting mechanisms ensure transparency, and stakeholder engagement is prioritised to gather feedback and address concerns.

What are the investment criteria for the fund?

The fund follows specific investment criteria aligned with its impact objectives, including factors such as fair pricing, environmentally friendly farming practices, social welfare programs, and governance standards.

How is impact measured?

The fund employs an impact measurement framework to assess its social, environmental, and economic outcomes, utilising industry-standard metrics and indicators.

How does the fund manage risks?

Risk management strategies are in place to mitigate financial, operational, and impact-related risks associated with the fund's investments.

What is the fund's capital raising and investment strategy?

Fundraising may involve contributions from Union Hand-Roasted Coffee, it’s customers and consumers, impact stakeholders, ethical funds, and institutions aligned with Union's mission.