Sustainability Report 2015 Sustainability Report 2015 Sustainability Report Luigi Lavazza S.p.A. 2015 Lavazza Sustainability Report 2015 Contents Sustainability Report CONTENTS 2015 Luigi Lavazza S.p.A. 1. 2. 3. NOTE ON METHODOLOGY Luigi Lavazza S.p.A. 17 Sustainability projects 47 A passion for excellence 65 Tradition, evolution and revolution in producing countries Fondazione Lavazza Document objectives 10 1.1 2015: the year of sustainability 19 2.1 Fondazione Giuseppe e Pericle Lavazza 49 3.1 Lavazza’s approach to quality 67 control and management Drafting process and references 10 1.2 Growing economic engagement 37 2.2 Project overview 50 of the manufacturing process in sustainability 52 3.1.1 Quality of the raw material 69 Scope of the report 11 2.3 The importance of teamwork 1.3 Business values, value of the business 38 56 3.1.2 Quality of the manufacturing process 78 Stakeholder Engagement and 11 2.4 Performance in 2015 materiality analysis 2.5 Focus on some projects 60 3.1.3 Certifications 80 of Fondazione Lavazza Assurance Process 15 3.2 Responsible supply chain 90 management 3.3 Monitoring and audits on suppliers 93 4 5 Lavazza Sustainability Report 2015 Contents CONTENTS 4. 5. 6. Sustainability and innovation 95 Human resources 119 Continuous improvement 147 development Lavazza objectives 2016-2018 GRI CONTENT INDEX 150 4.1 Innovation as an engine 97 5.1 Lavazza’s approach to people 121 for development 5.1.1 Training and Development: 122 4.2 Our commitment to 102 a structured and shared process GLOSSARY 160 environmental sustainability 5.1.2 Loyalty and transparency 129 4.3 Carbon Footprint 104 5.1.3 Internal communication 130 4.4 Health & safety, energy and 108 Environment Management System 5.1.4 Nuvola: a work in progess 134 5.1.5 Occupational Health and Safety 142 6 7 Lavazza Sustainability Report 2015 Introduction ur business has grown tremendously in the This Report tells the story of what has proven to be ustainability is a topic that we all must take into with farmers, in order to increase their know-how, last years. This is a moment of extraordinary an extraordinary year for Sustainability, a story that consideration. Today, as ever more in the future, is crucial for Lavazza. We do that by providing farmers Odevelopment for us, as witnessed by our most kicks off with a series of special events held over the Sit will be an essential element of business. with appropriate tools and technologies to address recent acquisitions of Carte Noire, market leader in course of 2015 – Lavazza was in fact selected Official climate change and minimise the environmental the French retail sector and Merrild, the main brand Coffee of the Italian Pavilion at the 2015 Universal A challenge that we at Lavazza face every day, making impact of their activities while supporting farming in Denmark and the Baltic countries. Sixth in global Exposition and presented its first Sustainability Report, our best effort to offer our consumers Quality methods improvement. coffee ranking, Lavazza reaffirms itself as a global as well as its compostable capsule. Moreover, Lavazza at all levels. In fact, we are aware that our consumers company, with more than 50% of its revenues deriving pushed innovation further through the launch of are not the same as ten years ago and that they Global markets require us to grow. We aim to build from exports. We are a leading international Group, the first espresso in outer space, while supporting are becoming increasingly conscious of all aspects on what made us one of the most credible brands engaging consistently in offering the same quality and culture thanks to the partnerships with the New concerning product quality and value, including abroad: our values and identity. A vision that combines excellence that distinguished us for 120 years. York Guggenheim Museum and the Venetian Civic Company sustainability, both in terms of product tradition and innovation and, above all, respect for our Museums. Promoting international sport events, and production process. collaborators and consumers worldwide. We want to keep on growing without losing sight through partnership with the 4 Grand Slam tennis of who we are and where we come from, the values tournaments was also an important point on the Thanks to a targeted growth policy on key markets in which our business is rooted and the respect for our Company’s agenda. A special year characterised, and strategic acquisitions, Lavazza confirms itself Antonio Baravalle people, whose hard work and skills allow us to aim for above all, by one of the pillars of our entrepreneurial as a global leader. Our goal is to continue in this Chief Executive Officer of Luigi Lavazza S.p.A. and reach ambitious goals. vision: the attention and care we devote to our people. direction by leveraging our values, tradition, quality and our ability to continuously innovate. In other At the beginning of 2017 we will move to the new A story made of consistency and credibility, of vision words, leveraging on what makes Lavazza unique. Headquarters, which are just a short walk from the and momentum towards a future of challenges and places where the Company was born in Torino, opportunities. We are convinced that combining innovation and a city of innovation and change. This relocation will sustainability is the key to success. Thus, we have represent an opportunity to give a boost towards Alberto Lavazza more than doubled investments in research and a more sustainable, integrated and innovative President of Luigi Lavazza S.p.A. development in the last four years. management of our Company. The new Headquarters will be in fact characterized by a more efficient We believe in the importance of spreading our coffee management of energy consumption, lower use culture and the excellence of our authentic Italian of paper, more flexibility in the organization of brand worldwide. By the same token, cooperation space. Moreover, digital technologies will favour an increasingly cooperative spirit, as well as an effective communication within the Company and with our stakeholders. Sustainability represents for us a reality and an opportunity, and the new Headquarters is a concrete example of this approach. 8 9 Lavazza Sustainability Report 2015 Methodological note METHODOLOGICAL NOTE Document objectives Drafting process and references Scope of the report1 Stakeholder Engagement and materiality analysis With this new edition, the Lavazza Group wishes to share the results The report was drafted by Lavazza’s “Institutional Relations & Lavazza’s manufacturing system is split across six manufacturing [G4-18] In accordance with the GRI-G4 guidelines, Lavazza has achieved in 2015 as part of its path of sustainability with Sustainability” and saw the active involvement of the Company’s entire plants: four in Italy (Torino, Gattinara, Pozzilli, Verrès2), one in Brazil identified the contents of its Sustainability Report according to its stakeholders. organisational structure, as required by the drafting principles of the and one in India. Lavazza has 3,1003 employees, operates in more than the following principles: Sustainability Report issued as an internal procedure in 2014. 90 countries around the world, covering every continent, through both • Stakeholder inclusiveness; The Report, in fact, is the primary instrument for managing and The contents of the Sustainability Report have been prepared direct subsidiaries and a large network of distributors. • Sustainability context; reporting on economic, environmental and social sustainability according to the latest version (GRI-G4) of the Guidelines Domestically, Lavazza reaches its consumers directly through • Key factors; initiatives. It is also a transparent way to interact with and disclose (https://www.globalreporting.org/reporting/g4/Pages/default.aspx) operators such as large-scale retailers and public establishments. • Completeness. information to stakeholders. drawn up by the “Global Reporting Initiative” and the related Food Internationally, it is present in various markets through a network Processing Sector Supplement (“Food Processing Sector Supplement” of distributors specialised in the ‘at home’ and ‘away from home’ In identifying the structure and content of the Report, Lavazza has Lavazza adopts a strategic approach to corporate social responsibility - https://www.globalreporting.org/reporting/sector-guidance/ channels. Lavazza offers end consumers a vast range of products therefore taken into account its business (analysis of Lavazza’s (CSR), which involves the comprehensive integration of CSR themes sectorguidanceG4/Pages/default.aspx). designed to meet every need both at home and away from home. sustainability context), the interests of stakeholders and their throughout the value chain. Sustainability, for Lavazza, is therefore an To ensure that figures and information are comparable over time, expectations. integral part of its core business. The level of compliance with the GRI-G4 Standard selected by the this Report refers to the years 2013, 2014 and 2015. [G4-17] Lavazza Group is “in accordance - Core.” To identify the most relevant aspects to include and discuss This vision requires the adoption of precise, measurable and Quantitative data provided in the document refer to Luigi Lavazza in the Report, Lavazza has: repeatable key performance indicators (KPI), whose achievement is S.p.A., the parent company based in Torino, Italy, unless otherwise • Identified its stakeholders, using the list already available in the dependent on the involvement of all corporate functions and on the stated. Code of Ethics as reference [G4-25]; definition of guidelines in order to create a systemic process. • Examined their expectations and main areas of interest using Luigi Lavazza S.p.A. includes: Headquarters, Innovation Centre dedicated channels; With this aim in mind, in 2011 Lavazza adapted to this approach - and Sales & Marketing; Manufacturing plants in Settimo Torinese, • Analysed its sustainability context and that of the reference sector, already adopted by the company in terms of developing a company Gattinara, Verrès and Pozzilli.