Neumann Gruppe GmbH
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
German based Neumann Kaffee Gruppe (NKG) is a leading green coffee merchandiser with operations spread over 26 countries. The group is active across the entire coffee value chain, from owning and operating coffee farms to exportation of green coffee from origins and importation of green coffee into consuming regions. NKG also has service divisions which offer market research, coffee-related training and education, warehousing, milling, blending and logistics solutions.
What is our funding objective?
FMO participates in NKG’s Smallholder Livelihood Facility (SLF) which is a part of NKG’s Responsible Business Program (NKG Bloom) to source sustainably produced coffee and support the livelihoods of smallholder farmers. The SLF was established in 2019 by NKG backed by IDH, BNP Paribas, Rabobank and DFC for financing individual smallholder farmers and cooperatives.
Why do we fund this investment?
Through its sustainability program NKG Bloom, NKG aims to reach 300,000 smallholder farmers by 2030 (currently +81,000) via its impact-backed initiative SLF. In doing so, NKG fills the financing gap that smallholder farmers face (short term to long term financing opportunities), offers technical support and other production-related services. In the end, the initiative and the partnership brings access to financial services for smallholder coffee farmers. By participating in SLF, FMO helps NKG to further accelerate its Sustainability model and align it with the IFC Performance Standards.
What is the Environmental and Social categorization rationale?
The E&S category is B+, due to largely reversible impacts, which can be mitigated through good management practices and Good International Industry Practice. The Company's fixed assets are mainly coffee mills, buying stations, warehouses and washing stations. Current assets as well as the supply chain show exposure to IFC Performance Standard (PS) 1 to 4 (I.e. ESMS, occupational and community health and safety, promote more sustainable use of resources, including energy and water), as well as 5 and 6 (land acquisition legacy issue and possibly biodiversity loss / deforestation through enlargement small holder plots using SLF). Note that all investments will be managed in accordance with the IFC PSs, and an Environmental & Social Action Plan will be part of the agreement.
- Website customer/investment
- https://www.nkg.net/
- Country
- Global
- Sector
- Agribusiness, Food & Water
- Publication date
- 4/14/2023
- Effective date
- 1/30/2024
- Total FMO financing
- USD 2.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+