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Espresso House Transparency Act Statement 2023

Introduction

At Espresso House, our people come first.
We are fully committed to upholding all internationally recognised principles and guidelines including the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, and the principles of the United Nations Global Compact.
On 1 July 2022, the Norwegian Transparency Act (the “Act”) came into force. The Act stipulates that companies should:

  • Conduct human rights due diligence in their own business operations and across their value chain.
  • Be publicly accountable for their due diligence, including their procedures and identified risks.
  • Provide information upon request.

Company Background

Espresso House Group (“the Group”) was founded in Sweden in 1996 and is now Northern Europe’s leading coffee chain with more than 500 coffee shops. Headquartered in Stockholm, the Group operates across Sweden, Norway, Denmark, Finland, and Germany.
Espresso House Norway (“EHN”) opened in Norway in 2013 and is headquartered in Oslo.
The Group is owned by JAB Holdings BV, which has its headquarters in Amsterdam. The board of the Group consists of twelve ordinary directors, of whom eleven represent JAB Holdings, and one is from Espresso House. The board consists of ten men and two women.The Group operates coffee shops under the brands Espresso House and Johan & Nyström Kafferöstare and Tehandlare AB (hereafter, J&N).

Policy References

EHN follows guidelines as set by the Group.

Code of Conduct
In 2022, the Group’s Code of Conduct guidelines were assessed to ensure compliance with national and international requirements, including Ethical Trade Norway’s (Etisk Handel Norge) declaration of principles for businesses and human rights. These guidelines cover the Group’s own operations and employees, subsidiaries, suppliers, and business relationships.
The internal Code of Conduct (CoC) covers guidelines for social responsibility, ethical values, prohibition of bribery, guidelines for hospitality and gifts, whistleblowing system, as well as values and visions.The CoC has been signed and adopted by the company’s board of directors and applies to everyone in the entire Group, regardless of location, seniority, or role. Temporary and contract employees, consultants, agents and any other third party acting on behalf of the Group are expected to follow the principles of the CoC. Any subsidiary controlled by the Company must also adopt and comply with these guidelines. In cases where the participates in, but does not control, a franchise or joint venture relationship, it will be ensured through business agreements that the partners also meet the requirements of the guidelines, both in the joint venture and in their own operations.

Human Rights Due Diligence

Supplier Relationships in Norway
For EHN, establishing close relationships with its business partners and suppliers is essential.
These relationships promote transparency and contribute to a healthy work environment.
EHN ensures to maintain contact with its suppliers in Norway on a regular basis.
Both physical and virtual status meetings are held frequently where representatives from the suppliers/collaboration partners, the Group and EHN attend.
EHN reviews the supplier agreements at regular intervals with the support from the Group to ensure continued compliance with the Supplier Code of Conduct.

Assessments – Coffee Supply Chain
As a group, we take responsibility from bean to cup. In 2022, 100 % of our coffee across the Group was verified according to Enveritas Standards and for the first year since the pandemic, we were able to resume farm visits to our coffee producers around the world. Further details can be found in the Group’s 2022 Sustainability Report.

Norwegian Operations
In 2023, an assessment across the entirety of EHN’s operations was conducted by the following stakeholders:

  • The Group’s Chief People and Sustainability Officer
  • EHN CEO
  • EHN HR Manager
  • EHN Performance Analyst
  • EHN Product & Marketing Manager
  • EHN Training and [Health and Safety] Specialist

Due Diligence/Assessment Process:

  • Internal mapping of EHN operations, support and organisation, technical systems, and compliance
  • Interviews with 15 participants from EHN’s head office in Oslo and 2 participants with the Group’s payroll team

Key Focus Areas for Norwegian Operations Assessment included:

  • Working Conditions in Shops
  • Payroll
  • Staffing and sick leave
  • Training
  • Adherence to policies and procedures

Actions Resulting from Norwegian Operations Assessment including:

  • Recruitment of a Health and Safety Specialist and a Training Specialist
  • Recruiting an inhouse payroll specialist (to start in February 2024)
  • Webinars and training sessions for managers on new payroll system
  • All managers are required to complete HSE courses, and as of November 2023, 60 percent of them have completed the HSE course
  • As of May 2023, EHN has stopped the hiring of employees under the age of 18. The measure only applies to new hires and did not affect any existing employees. In December 2023, there were 30 employees under the age of 18, and the number continues to decrease.
  • Reducing a number of contracts with smaller, local cleaning services

Collaboration with Union Representatives:

A closer cooperation with union representatives and the UFTU is being established. The Managing Director (CEO) of EHN is in dialogue with the UFTU and the main union representative’s office is in Oslo. Through this dialogue, employee representatives will have the opportunity to propose further measures. Additionally, the safety representative (verneombud) will report to the working environment committee (arbeidsmiljøutvalget) through the Head Safety Representative and to the HSE Specialist throughout the year.
The Head Office Employees are required to conduct 'out of office' visits, mandating each member to spend a day in a coffee shop four times a year. This practice ensures a comprehensive understanding of the store's operations.
In addition, new office employees at EHN are required to complete a week of barista training at a coffee shop. These activities are an integral part of internal communication and provide a platform for everyone to engage with the feedback received. This approach not only allows office staff to listen to employee feedback, but also facilitates a proactive conversation about salaries, working conditions, and various other issues.

Grievance Mechanisms

System for whistleblowing and Service Pathway
EHN will implement an approved Service Pathway as a tool to guide employees on who and how to contact the management if incidents or concerns related to them or the working environment occur. 
The whistleblowing system is well-known among employees, communicated through posters in the departments, on the Intranet, in the employee handbook and the HSE handbook, and as a part of our onboarding and training.
The Equality and Anti-Discrimination Act
EHN will undertake activities in accordance with the requirements of the duty to report on Equality and Diversity (Equal Opportunities Act addressing equality and diversity, harassment, and discrimination). The union representatives will be involved, along with select members of the leadership team at EHN.

Inquiries
If you have any questions about how EHN addresses and manages human rights and working conditions across its supply chain and operations, please send your enquiry in writing to: medianorge@espressohouse.com