Enhancing Social Audits and Risk Detection in Coffee Supply Chains

Enhancing Issue Detection and Risk Identification through Responsive and Context-Specific Approaches Fostering Social Auditing

Project Background

Enhance social auditing and risk identification during both third-party and internal audits

Project Overview

Project title: Fostering Social Auditing: Enhancing Issue Detection and Risk Identification through Responsive and Context-Specific Approaches

Project objective: Enhance social auditing and risk identification during both third-party and internal audits.

Project Management: 4C Services GmbH

Project financed by: A project made possible thanks to a grant from the ISEAL Innovations Fund, which is supported by:

Implementing partners:

C Services GmbH (lead organization),  Meo Carbon Solutions GmbH (Project Partner) , ISCC GmbH (Project Beneficiary)

About 4C

4C is a leading sustainability certification scheme for the entire coffee sector that includes economic, social and environmental requirements to establish credible sustainable and transparent supply chains. 4C’s credibility is based on independent 3rd party audits, innovative risk assessments and a strong integrity programme. With more than 300,000 farmers and 1.7 million tonnes of certified coffee, 4C delivers real impact on the ground, improving livelihoods and supporting companies in their sustainability goals.

About Meo Carbon solutions

Meo Carbon Solutions (MCS) is an independent consulting company experienced in sustainable and future-oriented solutions. We manage short- and long-term projects for companies, government ministries and institutions across Europe, Asia, Africa and the Americas. Their services cover entire supply chains from farm to market—including feedstocks, processing units and final products.

About ISCC GmbH

Founded in 2010 through a multi-stakeholder initiative, the International Sustainability and Carbon Certification (ISCC) is a globally applicable and leading certification system designed to enhance traceable, sustainable, deforestation-free, and climate-friendly supply chains. ISCC certifications are widely recognised and cover sustainable agricultural biomass, biogenic wastes and residues, non-biological renewable materials and recycled carbon-based materials. The development and implementation of different certification standards is ISCC’s tool to promote its mission to mitigate climate change and bring more traceability into global markets and supply chains.

Project period: 08/2024 – 07/2026

The Challenge

The global coffee supply chain faces significant challenges in addressing human rights issues such as child labour, discrimination, and harassment, which are often difficult to detect through traditional agricultural audits.

Despite the robust framework provided by the 4C Code of Conduct, these complex social issues require more than standard auditing procedures to identify and address their root causes effectively. The intricate relationships within coffee production, particularly within 4C Units that involve multiple stakeholders like farmers, service providers, and workers, add to this complexity.

As a result, there’s an urgent need for enhanced auditing methodologies and tools that can accurately assess, manage, and mitigate social risks, ensuring the well-being and rights of all individuals involved in coffee production.

Target beneficiaries

Farmers and workers who are more vulnerable to human rights violations.

Managing Entity of 4C Unit that ensures compliance with human rights of all group’s members.

Certification Bodies and auditors that conduct 4C audits.

Project Objectives

Enhancing Social Auditing

This project aims to enhance the detection and monitoring of human rights issues and violation risks in third-party and internal audits by introducing responsive, participatory and context-specific approaches to social auditing. Auditors will be equipped with a holistic but socially sensitive audit method, including practical tools and supporting material altogether with enhanced skills to improve the detection of human rights abuses during the on-site audits.  

Enhanced capacities of auditors and MEs on social auditing 

The 4C Units that are audited will increase the ability to identify and report about human rights violations. This will ease the follow-up actions based on findings of the independent third-party auditors. On the other hand, internal audits and monitoring carried out by the Managing Entity as part of the Internal Management System (IMS) will benefit from well-informed improvement plans developed to detect and address human rights infringements, mitigate risks, improve data collection mechanisms and stronger grievance mechanisms. 

Improvement of 4C System 

The results of the project will not only lead to more efficient audits, but also to an improved social verification process that contributes to fulfil and protect human rights in supply chains. In addition, the results will lead to the continuous improvement of the 4C system as well as of other sustainability schemes on human rights due diligence. 

Practical Tools to Create Impact 

By conducting a thorough baseline assessment of current practices, engaging with stakeholders, and providing specialized training, the project seeks to equip auditors, coffee producers, and managing entities with the tools and knowledge needed to identify and address social risks more effectively. Ultimately, this initiative will help create safer and more equitable working conditions, fostering the well-being of coffee communities and ensuring a more sustainable and responsible coffee production process. 

Building Inclusive Solutions Through Participatory Implementation 

The project will be implemented through a series of carefully planned activities, beginning with a comprehensive baseline assessment to identify the needs and challenges faced by auditors and certified Managing Entities in detecting social issues.

Theory of Change

Project Phases

The project is composed of three key phase

Baseline Assessment

Identifying Need and Good Practices

Capacity Building

Trainings

Implementation

Pilot Audits

The baseline assessment was designed to evaluate existing challenges in social auditing, existing good practices about how to overcome them, and additional needs presented by farmers, the Managing Entities, and auditors.

Capacity-building sessions, combining in-person and online learning, will equip participants with essential skills, while pilot audits will refine the tools and techniques developed, ensuring they are well-suited to the realities of coffee production. 

Phase 1 – Baseline Assessment

The baseline assessment was designed to shed light on the challenges of social issue detection, as well as good practices in social auditing. It was conducted in Vietnam (December 2024) and Colombia (2025). It also served to identify the needs of MEs and CBs to tailor the tools and training program accordingly.

Areas Visited

A key feature of this initiative is its participatory approach, involving extensive consultations with stakeholders, including Managing Entities, community members, and underrepresented groups. This methodology ensures that all voices are heard and integrated, leading to more practical and effective solutions.

The baseline assessment was composed of the following activities:

Online survey: invites 4C MEs and CBs, and ISCC’s CB and those of other sustainability schemes within the ISEAL community to share their challenges and experience. 
Desk research and review: analyze existing challenges, tools and approaches to social auditing .
In-depth expert interviews: delves into first-hand experience of interviewed MEs and CBs across different countries and continents .
In-person consultation: explores practical experiences of 4C MEs, BPs, their workers, and other community members engaging in in-person onsite interviews in the focus countries of this project (Colombia and Vietnam) .
Consultation with ISEAL Community Members: involves the diverse experiences of other sustainability schemes to exponentiate the outreach and benefits.

Phase 2 – Capacity Building

On the basis of the baseline assessment a training program will be developed for CBs, auditors and MEs (including farmers, cooperatives, and relevant stakeholders) in the focus countries of this project (Vietnam and Colombia). The trainings will be conducted in a hybrid format (online and in-person modules) in June-August 2025 in the two focus countries.

The training comprises a holistic capacity building program, including coaching to auditor (if applicable). Topics and modules to be covered are:

Mandatory and Voluntary Human Rights Due Diligence

Labour Rights, Forced Labour

Child Labour

Occupational Health and Safety

Anti-Discrimination and Gender Equality

Phase 3 – Implementation into the 4C System and Pilot Audits

Upon piloting the training package, the project will consolidate the learnings via pilot audits in Colombia and Vietnam. 

The training program developed during the project will be integrated into the 4C Training program to ensure the scale-up of best practices. 

In the light of fostering the Internal Management System (IMS) of 4C Units best practices of external audits will be made available to the Managing Entities to reap benefits and synergies.

Upon piloting the training package, the project will consolidate the learnings via pilot audits in Colombia and Vietnam. 

Project Outputs 

Training Program

The improved audit approaches and methods will encompass the development of a hybrid training program to train auditors and Managing Entity staff, as well as the provision of practical tools supporting the evaluation of social criteria. They may include but are not limited to: 

Guidance materials on social issues and human rights, based on the needs identified in the baseline consultation process. 

Well-formulated questionnaires.

Explanatory and guiding materials.

Information gathering techniques, e.g., field observations, sensemaking with interviewees, and confirmations from related stakeholders.

ISEAL Innovations Fund

About The ISEAL Innovations Fund

The ISEAL Innovations Fund (‘the Fund’) is ISEAL’s grant making-facility, co-developed and funded by the Swiss State Secretariat for Economic Affairs SECO since 2016, which supports the exploration of innovations that help sustainability systems deliver more value to their stakeholders and effectively drive improvement over time, and at scale. The Fund launched a second phase of work in 2023. Grants in phase two (2023 – 2027) are made possible through financial support of SECO and UK International Development from the UK government. This grant empowers sustainability systems to develop innovative partnerships, approaches, and scalable solutions. It offers technical support, guidance, and promotes cross-sector learning within and beyond the ISEAL community. The fund focuses on innovation, relevance, replicability, beneficiary engagement, monitoring, collaboration, and value for investment.