Café Coffee Day’s ESG Scorecard: Sustainability in India’s Café Culture

Café Coffee Day (CCD), once at the center of India’s café revolution, has been undergoing a transformation since its corporate crisis in 2019. With a focus on environmental, social, and governance (ESG) metrics, the company is now attempting to reposition itself as a responsible player in the food and beverage industry. CCD’s sustainability efforts focus on ethical sourcing, waste reduction, and employee welfare. These measures are intended not only to rebuild trust but also to align with growing consumer awareness around sustainable business practices in India.

Ethical Sourcing and Supply Chain Accountability

Post-crisis, CCD has concentrated on reestablishing transparency in its supply chain. A large portion of the company’s coffee is sourced from its own estates in Chikmagalur, Karnataka, giving it control over quality and farming practices. According to company disclosures, CCD claims that it follows responsible agricultural practices on these estates, including water conservation, minimal pesticide use, and soil management. Additionally, the brand works with partner farms under procurement agreements that include guidelines on sustainable farming and fair labor practices.

The company also reports efforts to support local economies by sourcing milk, sugar, and other ingredients from domestic producers. By reducing reliance on imports, CCD is cutting its carbon footprint and supporting Indian agriculture. The company states that its vendor selection process now includes sustainability criteria as a mandatory requirement, a change implemented after 2019 when governance gaps came under scrutiny.

Waste Management and In-Store Sustainability

Waste reduction has become a visible part of CCD’s ESG goals. The brand has adopted policies to reduce single-use plastics in its outlets. Paper straws and compostable takeaway packaging have been introduced in many locations. CCD also claims to be piloting in-store waste segregation units and recycling programs in high-traffic cafés in cities like Bengaluru and Mumbai.

CCD’s central kitchens are reported to be implementing food waste tracking systems to monitor excess and expired stock, allowing for better inventory control and less spoilage. Used coffee grounds are being repurposed as compost, and some cafés are experimenting with offering the grounds to customers for home gardening. While these programs are still in the pilot stage, the company says they form part of a broader plan to reduce landfill waste from operations by 40% over the next three years.

Energy efficiency is also a key area. Selected outlets have switched to LED lighting and energy-efficient cooling systems. Some stores, especially in urban corporate parks, are exploring partial solar power integration through tie-ups with facility managers.

Employee Welfare and Post-Crisis Recovery

Following the death of founder V.G. Siddhartha and the subsequent financial crisis, employee morale and welfare became a priority. CCD has since introduced more structured employee support programs. These include financial literacy workshops, healthcare coverage, and revised HR policies to promote work-life balance, especially for store-level employees.

The company has also restructured its training programs. New modules cover not just customer service but also basic health and safety, recycling practices, and corporate ethics. CCD’s internal data shows reduced employee attrition compared to the crisis period, with more staff returning to long-term employment contracts rather than temporary roles.

An employee feedback system was introduced in 2022 to identify workplace issues and provide real-time solutions. CCD’s management has said that these systems have helped improve operational efficiency and reduced internal conflict, particularly in regions with high staff turnover.

Governance and Stakeholder Confidence

From a governance standpoint, CCD has attempted to clean up its books and improve financial transparency. The company’s board has been restructured with the inclusion of independent directors. External audits are now part of the regular process, with financials made publicly accessible on a quarterly basis. These changes were initiated to reassure stakeholders and investors after the 2019 revelations of financial mismanagement.

CCD has also created a dedicated ESG team that reports directly to the senior leadership. This team is responsible for aligning operations with the company’s sustainability goals and reporting progress through annual ESG disclosures. While some analysts say the company still has ground to cover, especially in achieving scalability of these efforts across its entire network of cafés, early signs indicate a course correction is underway.

Conclusion

Café Coffee Day’s ESG journey is still evolving, but the steps taken so far indicate a strategic shift towards responsible business practices. From sustainable sourcing and waste management to improving employee welfare and governance, CCD is working to redefine its place in India’s café culture. As sustainability becomes a key factor in consumer choice, CCD’s ability to fully implement and scale these initiatives could determine its long-term relevance in a competitive market.