Indonesia stands among the world’s top coffee producers, renowned for its rich Arabica varieties cultivated in the highlands of Sumatra, Java, and Sulawesi. In the northern region of Sumatra lies Takengon, Aceh, home to the famous Gayo Arabica coffee — a product celebrated globally for its unique flavor profile and sustainable production systems. This area is also home to numerous Fairtrade-certified small scale cooperatives, who play a vital role in promoting ethical, traceable, and environmentally responsible coffee production.

Despite the region’s agricultural potential, local farmers face increasing challenges linked to climate change, global market volatility, and evolving international sustainability regulations. Among these, the European Union’s Human Rights and Environmental Due Diligence (HREDD) regulation has become a focal point for cooperatives aiming to maintain compliance while ensuring sustainable livelihoods.

As part of the ongoing project on “Enabling Compliance of Fairtrade Supply Chains with New EU Regulations,” funded by the German Agency for International Cooperation (GIZ) and Fairtrade Germany,Fairtrade NAPP is implementing a series of targeted capacity-building initiatives to help cooperatives comply with evolving European sustainability requirements while protecting farmer livelihoods.

Recognizing the growing importance of the European Union- Human Rights and Environmental Due Diligence (HREDD) regulation, Phase II of the program convened a five-day workshop in Takengon, Aceh, bringing together 24 representatives from 10 leading coffee cooperatives—including GARMINDO, Koperasi Kopi Wanita Gayo, KOPEPI Ketiara, KSU Rahmat Kinara, Permata Gayo, and others. The training strengthened participants’ capacity in Human Rights and Environmental Risk Management through interactive sessions, group discussions, and case-based risk assessments, fostering collaboration and equipping cooperatives with practical tools to advance responsible and sustainable coffee production.

As part of the ongoing project on “Enabling Compliance of Fairtrade Supply Chains with New EU Regulations,” funded by the German Agency for International Cooperation (GIZ) and Fairtrade Germany, Fairtrade NAPP is implementing a series of targeted capacity-building initiatives to help cooperatives comply with evolving European sustainability requirements while protecting farmer livelihoods.

Recognizing the growing importance of the European Union- Human Rights and Environmental Due Diligence (HREDD) regulation, Phase II of the program convened a five-day workshop in Takengon, Aceh, bringing together 24 representatives from 10 leading coffee cooperatives—including GARMINDO, Koperasi Kopi Wanita Gayo, KOPEPI Ketiara, KSU Rahmat Kinara, Permata Gayo, and others. The training strengthened participants’ capacity in Human Rights and Environmental Risk Management through interactive sessions, group discussions, and case-based risk assessments, fostering collaboration and equipping cooperatives with practical tools to advance responsible and sustainable coffee production.

Key Sessions:

1. Understanding the Scope and Process of HREDD

The opening sessions introduced participants to the concept, scope, and step-by-step process of HREDD, aligned with Fairtrade’s standards and the European Union’s due diligence regulation. Trainers from Fairtrade NAPP and Fairtrade Germany presented the key principles of respecting human rights, environmental protection, and ethical business conduct throughout the coffee value chain.

Participants discussed how HREDD applies to small producer organizations (SPOs) and how to identify potential human rights and environmental impacts across production, processing, and trade stages. Using real-life examples from coffee cooperatives, participants mapped typical risk areas such as:

• Workers’ safety and wellbeing;
• Gender equity and fair participation;
• Deforestation and climate-related risks; and
• Market compliance with evolving global trade regulations.

By the end of this module, participants gained a comprehensive understanding of why HREDD is not just a compliance requirement, but a framework for strengthening long-term sustainability and competitiveness.

2. Conducting Organizational Risk Assessments

The second part of the training focused on hands-on risk assessment exercises. Participants learned to identify, evaluate, and prioritize human rights and environmental risks using both primary and secondary data sources.

Working in cooperative-based groups, each SPO conducted a simulated HREDD risk assessment based on their local operational context. Trainers guided them through:

• Mapping internal processes and value chains;
• Identifying potential adverse impacts on people and the environment;
• Assessing severity and likelihood of risks; and
• Documenting mitigation measures and evidence of compliance.

This session emphasized the importance of data-driven decision-making, encouraging participants to strengthen their Internal Control Systems (ICS) to ensure consistent monitoring and documentation.

Participants also practiced developing a risk register — a structured tool for recording identified risks, actions taken, responsible persons, and review timelines.

3. Strengthening Grievance Mechanisms

Recognizing that effective due diligence requires accessible channels for reporting concerns, the third session focused on designing and improving organizational grievance mechanisms.

Facilitators explained how grievance systems can empower workers and farmers to report potential human rights or environmental issues safely and confidentially. Participants examined existing mechanisms within their cooperatives and identified areas for improvement, including:

• Establishing clear reporting and response procedures;
• Ensuring confidentiality and protection from retaliation;
• Promoting inclusivity—especially women, youth, and vulnerable groups; and
• Aligning grievance systems with Fairtrade and international labor standards.

Through role-playing exercises, participants simulated grievance reporting scenarios to understand how effective communication, empathy, and transparency contribute to stronger trust within their organizations.

4. Developing Action Plans for Integrating HREDD Practices

The final session brought together all learning components into a practical action planning exercise. Each cooperative developed a draft HREDD implementation plan tailored to their context, identifying specific steps, responsible team members, and timelines for follow-up.

The action plans focused on:

• Incorporating HREDD risk assessments into existing cooperative policies;
• Building capacity among internal auditors and ICS staff;
• Establishing grievance committees and awareness sessions for members; and
• Periodic review and reporting mechanisms to track progress and share learning with Fairtrade NAPP.

Participants committed to presenting their plans to their management boards upon returning home and to initiate follow-up risk assessments within three months, with Fairtrade NAPP providing continued technical guidance.

Looking Ahead

The workshop’s long-term goal is to ensure that Indonesian producer organizations are fully equipped to align with global human rights and environmental regulations, thereby protecting their market access and strengthening the Fairtrade value chain.

As a next step, participating cooperatives will:

• Share training insights with management teams and farmer members;
• Conduct internal HREDD risk assessments; and
• Collaborate with Fairtrade NAPP’s technical team for ongoing guidance and support.

This workshop is part of the 03 year ongoing project (2023-26):  Enabling compliance of Fairtrade Supply Chain with new EU regulations:

Funded by the German Agency for International Cooperation (GIZ) and Fairtrade Germany, this joint initiative between Forum Fairer Handel (FFH) and Fairtrade Deutschland (FT-DE) is designed to support compliance with the new EU trade regulations. The program focuses on enabling more coffee producers from India and Indonesia to meet the regulatory requirements of Human Rights and Environmental Due Diligence (HREDD) ensuring smooth and sustainable operations within the evolving EU trade framework.