2019 SUSTAINABILITY REPORT A GOAL IN EVERY CUP 2019 Sustainability Report 2019 SUSTAINABILITY REPORT LAVAZZA CONTENTS Methodological Note 6 Goal Zero: Spreading the Message 16 Goals on the Field: the Lavazza Foundation 30 Goal 8: Decent Work and Economic Growth 44 Goal 5: Gender Equality 72 Goal 12: Responsible Consumption and Production 86 Goal 13: Climate Action 110 Appendix 128 2 3 2019 SUSTAINABILITY REPORT LAVAZZA For Lavazza, 2019 marked the end of a very challenging, important decade: just ten years ago, We are a Company with deep respect for tradition, yet our calling is looking to the future, in it was an Italian company that was looking towards international markets, while earning terms of product, market, people and the planet. For us, 2019 was a bridge to the future: we more than 60% of its revenues in Italy. Today, Lavazza is a global Group that has doubled became a global Group. its turnover and consolidated its presence on international markets, the source of most of its In recent years, while retaining its independence and protecting its identity, Lavazza has also sales. added new brands and new people to its universe: they have different cultures, yet share the To us, growth is important, but maintaining our identity is equally so. During this decade, we same goal of working towards the responsible growth of the Group. have sought out and found companies throughout the world with a history similar to ours and In a market once again in decline, we bucked the trend, growing at the overall level and across that share our values. Once a single-brand company, Lavazza now has four important coffee all segments. In fact, 2019 was a very positive year, in which the Group reported an increase in brands and a workforce of over 4,000. its volumes, turnover and profitability. It is thanks to these very people that the Lavazza Group is continuing down a path towards These goals were achieved in a manner fully consistent with our values and respectful of our becoming one of the most dynamic, highly regarded companies in the Italian and interna- people. This year, Lavazza was recognised as a “Top Employer” in Italy and Carte Noire was tional business community. named a “Best Place to Work” in France. Indeed, becoming a Group means sharing the same values. In view of this, 2019 was the year All this means that our corporate reputation continues to improve. in which the Lavazza Group’s new brand was defined and we reformulated the Group’s values In 2019, we placed 38th in the RepTrak ranking, which measures companies’ global reputa- so that all employees would identify with them. tions, while in the same study focused on corporate responsibility we were ranked among the Thanks to our business vision, which has always combined work, merit, expertise and sus- top ten companies worldwide, the number-one in Italy and the number-one in the world’s tainability, we can look to the future with confidence and prepare ourselves for the challenges food sector. that lie ahead of us, such as climate change, which is threatening coffee plantations and cof- These results spring from a commitment to growth that sees sustainability as a way of doing fee-growers, who we have been working with for over 20 years. business. To rise to meet these challenges, in 2019 the process of aligning ourselves with the Sustainable To consolidate our commitment and meet the new needs of our stakeholders, we aim to work Development Goals led us to identify the four pillars of sustainability that are a priority for our on establishing a process of reducing our impacts and innovating our products and processes, people and business, and towards which we wish to continue to strive in the coming years: focused on constantly increasing integration of sustainability issues. gender equality, decent work and economic growth, responsible consumption and produc- Yet Lavazza, as its style dictates, does not wish to pursue these goals alone, but rather within tion, and climate action. These are the four Goals that we are making our own and that, an internationally recognised framework and guidelines, such as those of the United Nations starting this year, will guide the reader in reading A Goal in Every Cup, the Lavazza Group’s Global Compact, to which it renewed its commitment in 2019, pledging to abide by its fun- Sustainability Report. damental principles, specified through its adoption of the 2030 Agenda and Sustainable Development Goals. Alberto Lavazza, Chairman In 2020, we intend to remain committed and consolidate our progress, while staying true to that set of values that, over the years, has successfully blended the artisanal approach of a small grocery shop with the aspirations of a large global Group. Antonio Baravalle, Chief Executive Officer 4 5 2019 SUSTAINABILITY REPORT LAVAZZA METHODOLOGICAL NOTE Document objectives Reporting scope and period and reference standards The Sustainability Report represents issued by the Global Reporting Moreover, this Report is also the tool Lavazza is present on five conti- The data contained in this Report refer to Luigi Lavazza S.p.A. and some com- the tool that Lavazza uses for disclos- Initiative in 2016. used to illustrate Lavazza’s commit- nents, in more than 140 countries mercial and manufacturing foreign subsidiaries of the Lavazza Group. In greater ing to its stakeholders the Company’s In detail, according to the GRI 101 ment to the United Nations Global worldwide, and operates through detail: annual results about sustainability. Standard: Foundation, paragraph 3, Goals, to which four chapters are both direct subsidiaries and a broad • Luigi Lavazza S.p.A., parent company headquartered in Turin (data reported This year, the reporting scope Lavazza has opted to prepare this devoted, each of which explains network of distributors. Lavazza’s refer to the Headquarters, the Innovation Center, the Italian Commercial has been extended to additional document according to the “GRI the Company’s efforts in achieving industrial system consists of ten Areas and the Italian production plants in Turin, Gattinara and Pozzilli); Lavazza’s foreign companies, with Referenced” approach, using a specific targets. The paragraph in manufacturing plants: three in • Luigi Lavazza Deutschland GmbH, a Frankfurt-based German commercial the goal of preparing, in the coming selected set of standards to illustrate this section “Lavazza and the Global Italy (Turin, Gattinara and Pozzilli); subsidiary, part of the Lavazza Group since 1987; years, a Report including the whole the information presented in this Goals” details the approach that the Carte Noire plant in France • Lavazza Kaffe GmbH, a Vienna-based Austrian commercial subsidiary, part Group. Report. Lavazza has taken to identifying its and that of Kicking Horse Coffee in of the Lavazza Group since 1988; A detailed description of the sub- The GRI indicators were selected priority Goals. Canada; the Lavazza Professional • Lavazza Coffee UK Ltd., a London-based British commercial subsidiary, part sidiaries included in the scope of considering the importance of the plants (two in the United Kingdom of the Lavazza Group since 1990; the Sustainability Report 2019 is various topics that are material to and one in the United States); and • Lavazza Sweden AB, previously Lavazza Nordics AB, a Stockholm-based provided in the section “Reporting Lavazza. two production hubs, one in Brazil Swedish commercial subsidiary, part of the Lavazza Group since 2009; Scope and Period”. References to GRI standards are and one in India, which serve the • Merrild Kafe ApS, a Fredericia-based Danish commercial subsidiary, part of The Lavazza Institutional Relations given in the final tables on indicators. local markets. The Lavazza Group the Lavazza Group since 2015; & Sustainability Department has Having endorsed the United Nations workforce is composed of about • Lavazza Premium Coffees Corp., a New York-based American commercial coordinated the preparation of the Global Compact, Lavazza has also 4,000 people worldwide. In Italy, subsidiary part of the Lavazza Group since 1989; Sustainability Report, gathering opted to include in its Sustainability Lavazza reaches its consumers • Lavazza Australia Pty Ltd., a Melbourne-based Australian commercial sub- contributions from the entire organ- Report the annual Communication directly through operators such sidiary, part of the Lavazza Group since 2015; isational structure of the Group’s on Progress, the contents of which as retail chains and Ho.Re.Ca. • Carte Noire S.a.S., a Boulogne-based French commercial subsidiary, part of companies included in the reporting have been enriched with a view to points of sale. the Lavazza Group since 2016; scope. informing all internal and external Abroad, Lavazza operates across dif- • Carte Noire Operations S.a.S., a French manufacturing subsidiary, part of This document has been drawn stakeholders about the activities ferent markets through its subsidi- the Lavazza Group since 2016; up according to the technical and undertaken and results achieved in aries and a network of distributors • Lavazza France S.a.S., a Boulogne-based French commercial subsidiary, part methodological reference provided implementing the Global Compact specialising in the Home and Away- of the Lavazza Group since 1982; by the Global Reporting Initiative principles. The relevant section From-Home channels. • Fresh and Honest Café Ltd., a Chennai-based Indian manufacturing sub- Sustainability Reporting Standards in the Appendix provides further Lavazza caters to all consumption sidiary, part of the Lavazza Group since 2007; (hereinafter “GRI Standards”), details. needs, offering its customers a wide • Kicking Horse Coffee Co. Ltd., an Invermere-based Canadian manufactur- and diverse range of products. ing subsidiary, part of the Lavazza Group since 2018. 6 7 2019 SUSTAINABILITY REPORT LAVAZZA LAVAZZA AND THE GLOBAL GOALS 1 The subsidiaries that have been With regard to the reporting period, the figures in this Report refer to: The Lavazza Group has always been committed to ensuring the economic, social included for the first time in the scope of • financial years 2017, 2018 and 2019 with regard to Luigi Lavazza S.p.A.