Enveritas

What it reported doing in 2024

Enveritas inc. Provides sustainability verification services to coffee and cocoa producing communities around the world. The organization conducts independent field assessments to evaluate the environmental, social, and economic conditions of smallholder coffee farms. Using technology such as satellite imagery and mobile data collection, enveritas measures issues including deforestation, child labor, pesticide use, and sustainable production, without charging farmers for participation.the data gathered are analyzed to identify systemic challenges in the coffee and cocoa sector and to help companies, donors, and partners implement more effective poverty-reduction and sustainability programs. Enveritas collaborates with international coffee roasters, cooperatives, and local organizations to strengthen sustainable sourcing practices and improve farmer livelihoods. In 2024, enveritas operated in more than 30 coffee-producing countries and completed over 90,000 farm verifications. As part of the responsibly sourced commitment, roaster partners are required by enveritas to support farmers directly. This translated to 276,000 farmers supported in 22 countries, across 123 projects. Projects provided support to farming households, school-aged children, and farm workers. These projects worked to increase adoption of good agricultural practices on farms, safer use of chemicals and improved working conditions, higher adherence to minimum wage standards, and prevention of child labor in coffee communities, among others.beyond this, and in keeping with enveritas' mission is to relieve poverty and promote sustainable farming practices, enveritas directly designs, tests, implements and funds interventions that equip farmers with knowledge, services, and solutions to increase productivity, resilience, and environmental sustainability. Throughout the year 2024, enveritas directly supported more than 40,000 farmers across east africa and south east asia. This included technical assistance in pest and disease management in uganda, the development of a rejuvenation and organic fertilization program for farmers in ethiopia, and the development of a soil testing program in vietnam to improve soil health and reduce carbon emissions. To protect the livelihoods of coffee farmers and sustain exports from vulnerable regions, enveritas has also developed a deforestation detection system that enables global coffee supply chains to prepare for and comply with eudr legislation.

Financial Efficiency

• Mission deployment rate: 48.6%; rating input score 49
• Program expense ratio: 82.9%; rating input score 83
• Fundraising efficiency: $101.95 raised per $1 spent on fundraising; rating input score 85; 85th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
• Pay-setting controls: 3 of 6 controls in place; rating input score 50
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: Scored; rating input score 0
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 75%; rating input score 75; 14th percentile among comparable filings
• Governance controls: 7 of 9 controls in place; rating input score 78
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: 43.1%; rating input score 92; 92nd percentile among comparable filings
• Total-asset coverage ratio: 2.31; rating input score 66; 66th percentile among comparable filings
• Liabilities to assets ratio: 0.08; rating input score 78; 78th percentile among comparable filings
• Officer compensation ratio: 7.9%; rating input score 30; 30th percentile among comparable filings

Growth

• Program expense growth: 22.2% per year; rating input score 100; 91st percentile among comparable filings
• Revenue growth: 29.5% per year; rating input score 100; 96th percentile among comparable filings
• Asset growth: 38.6% per year; rating input score 100; 98th percentile among comparable filings