Sustainability is a choice that you can share
Sustainability is a choice that you can share
Sustainability is a choice that you can share
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You can download the Methodological Note of illycaffè’s Sustainable Value Report 2019 at the following link
illycaffè 2019 Sustainable Value Report has been audited by BDO Italia S.p.A. A copy of the assurance statement is available at the following link
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If you have any further questions or comments regarding sustainability, we would be happy to provide information about our vision, as well as about our specific objectives and targets.
illycaffè S.p.A.
Via Flavia 110, 34147 Trieste - Italy
valuereport@illy.com
countries in which illycaffè operates
approximately: points of sale where illy coffee is served
points of sale: 192 illy Caffès and 77 illy Shops
new single-brand stores opened in 2019
employees worldwide
millions of €: 2019 turnover
The Illetta coffee machine is launched.
illycaffè inaugurates the head office in Trieste and the first laboratory site. The Headquarter in Trieste is presently still the only production plant of illy worldwide.
First company in the world to launch in the market coffee pods for the preparation of cafè-like high quality coffee, also for domestic use.
First Edition of the illy Prize for Quality Coffee in Brazil. Since its first edition, the Prize initiative has been always coordinated by Anna Illy.
The illy Art Collections are created, an artistic reinterpretation of the white espresso cup designed by Matteo Thun.
illycaffè obtains the Certification “Qualit. France” (issued by Qualit. France SAS) for the high sustainability and quality of the illy products.
World-renowned artist James Rosenquist creates the new icon for the illy logo.
illycaffè is the first coffee company in the world to be certified under the ISO 9001 framework for the quality management system.
Aromalab is the laboratory created by illy to foster the research on the chemistry of coffee with the intent to identify chemical compounds able to build up the aroma of blends of coffee and to evaluate the quality of green coffee and roasted coffee.
illycaffè improves the techniques of cultivation and coffer process obtaining as result the reduction of water consumption up to 90% per kg of green coffee.
illycaffè creates the Università del Caffè (University of Coffee), a center of excellence to foster the promotion and dissemination of knowledge on the culture of quality coffee, from the bean to the cup.
illycaffè launches a new programme in Guatemala to foster Micro- Entrepreneurship and training of coffee growers.
illycaffè creates three new laboratories to carry out research on all the possible issue related to coffee.
illycaffè continues the efforts to improve environmental impact in cooperation with EMAS in order to foster increase of environmental efficiency of industrial activities.
In occasion of the candidacy of Trieste for the Expo 2008, illy started a cooperation with TWAS - The Academy of Sciences for the Developing World, launching a Science Prize dedicated to researchers from developing countries.
illycaffè committment to the improvement of environmental impact of industrial processes is recognized at international level: the Company is awarded by EMAS for continually improving environmental standards.
Through the support and endorsement of the International Coffee Organization, illycaffè launches a project in Ethiopia in cooperation with the United Nations aiming to demonstrate that, upon treatment after harvesting, the quality of Ethiopian Coffee can be comparable and competitive with the best coffee blends in the world.
illycaffè obtains the BRC (British Retail Consortium) certification and implements its commitments in the certification of safe food and products.
illycaffè founds the Food Science Lab, a laboratory dedicated to the study of food and of consumable products based on coffee.
illycaffè launches in the market the new system of coffee capsules, called “Iperespresso”.
illycaffè obtains the IFS (International Food Standard) certification, confirming the commitment of the company to ensure high quality of standards for food safety.
illy issimo is launched on the market: it is a new ready-to-drink line of espresso-style coffee beverage and it is the result of a joint venture with The Coca Cola Company.
The Foundation is created in honor of Ernesto Illy in order to give continuity to the teachings and knowledge of Ernesto Illy, to whom the Foundation is dedicated.
In cooperation with the Environmental Change Institute of the Oxford University, illycaffè supports a research project on the sustainability of coffee cultivation and production.
illycaffè launches in Brazil the “Sustainable Conduct Award” initiative, a prize dedicated to coffee growers reaching high sustainability standards.
illycaffè starts a partnership with Istituto Terra (Earth Institute) for a reforestation intervention in a large area of the Atlantic forest region of Brazil.
AromaLab and SensoryLab of illycaffè are recognized and accredited by Accredia – Italian Accreditation System.
Creation of illyshop and illyteca: they are single-brand boutique shops offering the entire catalogue of illy products commercially available. Moreover, ILLYTECA is a retail point, in which are available all the products, technologies and accessories with the brands of the five shareholders of illy Group.
illycaffè is the first company in the world to be awarded with the certification for the "Responsible Supply Chain Process".
illycaffè launches a communication initiative addressed to all its stakeholders: the initiatives underlines and fosters the commitment of all the parties involved to the implementation of the sustainability concept.
illycaffè becomes part of the United Nations Global Compact.
In collaboration with the Italian Ministry of the Environment, illycaffè launches a project to estimate its carbon footprint over the entire lifecycle of its industrial process initiative.
illycaffè is the only Italian enterprise selected to be included in the list of the most ethic enterprises in the world for the year 2013, on the basis of the Etisphere Institute, the organization which yearly finalize the list.
illycaffè recognized as the World’s Most Ethical Company
illy has been selected by the Steering Committee Expo as Official Coffee Partner: illy is the exclusively responsible in charge for the Coffee Cluster of the Exhibition, with the responsibility to formulate and manage the content and event of the cluster, hosting and valorizing the participation of the ten countries representing the coffee producers in the world. The selection of illy to cover this prestigious role is a recognition for the company to be driven by excellence, passion, innovation and commitment to sustainable development.
In collaboration with UNIDO, illycaffè works on the project "Improving the Sustainbility and Inclusiveness of the Ethiopian Coffee Value Chain through Private and Public Partnership" to develop the entire Ethiopian coffee industry.
illycaffè has signed a declaration of intents with SENA - Servicio Nacional de Aprendizaje, a national government institution that oversees labor training – to start a cooperation project with the objective to transfer knowledge and good practices on coffee production and preparation, to the benefit of producers and consumers.
An award is created for the best coffee selected from the ones grown in the regions that make up the unique illy blend and it involves all farmers the company works with. It is also a tribute to Ernesto Illy, a visionary leader, always interested in scientific research.
illycaffè recognized as the World’s
Most Ethical Company, for the sixth consecutive year.
illycaffè’s commitment in the area of sustainability takes shape through a new Governance and Sustainability Policy consistent with the SDGs set out by the United Nations.
By becoming a Società Benefit (Benefit Corporation), illycaffè has crystallized and explicitly stated in the company purpose of its articles of association its desire to operate as a stakeholder company by pursuing Shared Value creation (economic sustainability), Personal Growth (social sustainability) and Respect for the Ecosystem (environmental sustainability).By becoming a Società Benefit (Benefit Corporation), illycaffè has crystallized and explicitly stated in the company purpose of its articles of association its desire to operate as a stakeholder company by pursuing Shared Value creation (economic sustainability), Personal Growth (social sustainability) and Respect for the Ecosystem (environmental sustainability).
illycaffè pursues social sustainability through the growth, in the sense of knowledge and self-realization.
illycaffè pursues environmental sustainability through the respect which translates into the principles of not polluting, not wasting and using renewable resources.
illycaffè pursues environmental sustainability through the creating shared value with all its stakeholders.
Consumers come first in the stakeholder hierarchy, followed by customers who are the company’s partners in serving consumers; next are the talents who work with the company, without whose professionalism and passion nothing would be possible; they are followed by the suppliers, without which excellent products could not be created; next are the communities with which illycaffè interacts; and finally, the shareholders, who support the company.
In 2019, illycaffè adopted Società Benefit (benefit corporation) status, confirming its decision to continue to grow by operating in a responsible, transparent and sustainable manner towards the communities with which it interacts, promoting a different approach to business based on a strategy that is geared towards the common good and can result in competitive advantages for the company. There are three particular areas in the articles of association on which the company intends to focus.
The responsible value and sustainable agriculture chain.
The aspiration to happiness and quality of life.
The circular economy and innovation to benefit the planet.
The company wishes to highlight the real challenges that it faces in its innovative path towards sustainability. Only complete and transparent sharing of the scale and complexity of these challenges can create the framework for collective collaboration in order to overcome them.
Maintaining a stable relationship and constructive dialogue with its stakeholders, who represent various entities and interests, is a fundamental part of the company’s work. Through an engagement process, illycaffè constantly updates the materiality matrix with which it monitors the opinions, expectations and needs of its target audience.
The analysis investigated more than 30 themes, the graph represents those indicated as very relevant.
Developing a fully sustainable value chain requires commitment throughout the supply chain. To obtain the best sustainable quality, the company works closely with all key players in the supply chain in the countries where the finest Arabica grows.
To monitor and guarantee the sustainable quality of the raw material, it is crucial to maintain a long-term, direct collaboration with workers in the green coffee supply chain. Over the years, illycaffè has developed a system of direct relations with its producers based on four cornerstones:
To ensure sustainable coffee quality, the illy supply chain management model is based on three specific principles:
illycaffè uses the Sustainable Procurement Process (SPP), the new supply chain sustainability standard for green coffee procurement, which is based on the assessment and sharing of techniques and knowledge to create sustainable and responsible behaviour. The SPP standard applies to every actor in the supply chain and requires the company to monitor its suppliers by ensuring, first and foremost, that they comply with legal requirements, which is a mandatory condition for maintaining a relationship with illycaffè, as well as other elements relating to the following areas:
Over the years, illycaffè’s commitment to respecting human rights has been translated into various initiatives:
Furthermore, in 2019, Ethisphere Institute included illycaffè in the list of the World’s Most Ethical Companies. This is the seventh consecutive award for illycaffè, demonstrating the company’s commitment to promoting and implementing ethical standards and practices.
Financial capital includes the main economic results achieved by the company in 2019, with a particular focus on the economic value that the company’s activities generated and distributed to its stakeholders.
of production value in 2019
millions of €: the distributed economic value as at 31 December at a consolidated level
approximate difference in sales volume compared to 2018
With the aim of highlighting the economic value that its business operations have generated and distributed to certain important stakeholder categories, illycaffè uses the Distributed Economic Value parameter which, as at 31 December 2019 at a consolidated level, amounted to €491.15 million, an increase of 11.9% compared to 2018.
Productive capital includes the physical infrastructure and technologies used for the production and provision of services, as well as product quality and safety guarantees. It describes the main activities and management systems adopted over the years to promote sustainable development in these areas.
points of sale (192 illy Caffès and 77 illy Shops), split into 245 under franchising and 24 under direct management.
new single-brand stores opened (37 illy Caffès and 2 illy Shops)
It is estimated that 8 million cups of illy coffee are enjoyed every day in over 140 countries around the world, in the best bars, restaurants and hotels, in cafés and single-brand shops, and naturally at home. There are 269 illy stores and single-brand shops worldwide in 34 countries. In 2019, 39 new points of sale were opened – 37 illy Caffès and 2 illy Shops.
Intellectual capital constitutes the company’s material assets and the value of its knowledge. It promotes the research and innovation activities carried out with regard to processes and products, as well as the commitment to training and dissemination of coffee culture through the Università del Caffè.
Università del Caffè sites active worldwide
people trained by the Università del Caffè worldwide
millions of € invested in Research & Development
patents, of which 246 issued and 44 pending
illy’s approach to achieving a high-quality coffee combines science and innovation.
Currently, the company’s main research areas focus on environmental sustainability, ranging from the circular economy to optimal use of materials, maximum waste and scrap recovery, and plans to combat climate change.
It is the third-generation espresso system: protected by 5 international patents, with the help of the two infusion and emulsion phases, it allows you to make coffee with a dense, velvety and persistent cream in restaurants or at home.
The first profeSsional Ho.Re.Ca. with boiler, using Iperespresso capsules.
The first type of mono-variety coffee with a low level of natural caffeine, possessing an unique sensorial and refined scent.
A ready-to drink product for the consume out of home. Without additive colorants and preservatives, illy Issimo is the result of the cooperation between illy and The Coca Cola Company and offers the possibility to enjoy the best quality coffee in the form of a chilled beverage ready to drink.
Frozen soft ice-cream produced with espresso illy 100% Arabica coffee and ice micro-crystals, without hydrogenated fats, colorants or preservatives.
X7.1 is the evolution of the X7 model, using boiler technology in compliance with the norms relevant to the emissions of heavy metals.
Home machine coffee maker using Iperespresso capsules, made of aluminum and glass, equipped with an automatic system for the expulsion of capsules. Working upon thermic control and electromechanical commands.
Evolution of the X2 model, equipped with, with thermo-block technology and in compliance with the norms relevant to the emission of heavy metals.
Y1 touch, an evolution of the Y1 with soft-touch control panel and electronic management.
New Iperespresso home coffee machine with automatic drain, an extension of the “Y” series.
Limited edition in fluorescent colors, designed for the Christmas seasonal campaign of 2013.
The refill for the home fits inside the 250-gram can and is designed to reduce its environmental impact.
In 2019, illy’s Università del Caffè (Coffee University) turned 20 and passed the milestone of 300,000 students, spreading high-quality coffee culture all over the world through training, research and innovation.
Relational capital describes the relations between illycaffè and its stakeholders, with a particular focus on the collaboration established with farming communities, suppliers, customers, international bodies and cultural institutions.
the editions of the Prêmio Ernesto Illy de Qualidade Sustentável do Café para Espresso
editions of the Ernesto Illy International Coffee Award
turnover generated abroad
online orders compared to 2018. In 2019, at a global level, there were 5,561,683 visits to the e-commerce platform alone
illy’s virtuous circle of sustainability starts with a cup of coffee and arrives in the countries of origin of the raw material, with a strategy based on four cornerstones:
Distribution mainly takes place through:
Natural capital is the ecosystem within which all human activities take place and without which they would not be possible. It describes how the company manages the use of natural resources to provide goods and services, not only today, but also in the future.
renewable electrical energy
quantity of water drawn compared to 2018
produced waste recovered
illycaffè views environmental value and protection of resources as a key factor to promote in the company’s general approach to its work and considers the preservation and sustainable development of the area in which it operates to be of primary importance, taking into account the rights of the community and future generations. Starting from this premise, the company is inspired by eco-sustainability principles and is committed to minimising the impact of its activities using the best technologies available on the market. 100% of electrical energy comes from renewable sources and illycaffè has therefore reduced CO2 emissions from this energy source to zero.
The company is committed to respecting the principles of eco-sustainability to minimise the negative effects caused by its activities, using the best technologies currently available.
Key areas of environmental commitment:
Every year hundreds of thousands of bags of Arabica coffee are purchased from producers in Latin America, Africa and South East Asia. Production and processing of the raw material accounts for a considerable share of the company’s indirect environmental impact. Consequently, every stage of its supply process is monitored, from cultivation at the plantations to transport to the processing plant. In addition to green coffee, all the packing and wrapping materials used for the various packaging (plastics and metals) and the use of nitrogen in the production process for coffee preservation have an environmental impact.
The circular economy is a crucial issue for illycaffè, including in terms of the targets that it has set itself as a Società Benefit, and it lies at the heart of its third common benefit goal. The company therefore designs and applies innovative solutions to make disposal and disassembly of products as efficient as possible:
During the design stage, the lightest, low-consumption and, where possible, recycled or totally eco-friendly primary and secondary packaging is chosen.
For secondary packaging the company prefers to purchase recycled materials.
Packaging that is easy to recycle, made of non-composite materials (metals or plastics), is favoured and designed.
We always take a very personal approach
Human capital focuses on people’s fundamental role in a company’s performance and prosperity. This capital describes the practices, expertise and staff management policies, which illycaffè combines with quality of life and personal happiness.
SDGs
1405
employees as at 31/12/19 at a consolidated level
92,6%
staff with a permanent contract
25,1%
recruitment rate
illycaffè staff
A healthy and solid company takes care of its employees. They are its engine, the driving force that carries out its work. illycaffè is committed to guaranteeing uniform development between business growth and human growth, conscious that neither is possible without the other.
Growth of 8.6% compared to 2018, with a total of 1405 employees worldwide.
92.6% of employees in Italy and abroad have a permanent contract.
Women account for 44.1%.
Employees aged between 30 and 50 constitute the majority of the workforce: 63.6% of the total.
13% in North America
3% in South America
20% of the personnel is employed in other companies with headquarters in Europe
About 59% of the personnel is employed in the Italian companies of illycaffè (61% in 2015)
5% in Asia
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human capital