illy Sustainable Value Report

ARCHIVE

ILLY REPORT 2012

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ILLY REPORT 2013

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ILLY REPORT 2014

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ILLY REPORT 2015

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ILLY REPORT 2016

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ILLY REPORT 2017

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ILLY REPORT 2018

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ILLY REPORT 2019

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illy Sustainable Value Report

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SALGADO

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ETIOPIA SCUOLA

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Virgolino Adriano Muniz 1

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Virgolino Adriano Muniz 2

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Virgolino Adriano Muniz 3

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Lucia Carmen Lucia Chavez de Brito

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GONZALES

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Adolfo Vieira

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Thanks 4 the coffee (T4TC) 2016 sub eng

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Thanks 4 the coffee (T4TC) 2017 sub eng

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Thanks 4 the coffee (T4TC) 2017 sub ita

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Colombia

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Ernesto Illy International Coffee Award (EIICA) 2017

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illy Sustainable Value Report

DOWNLOAD AREA

EXECUTIVE SUMMARY

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OUR IDENTITY

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FINANCIAL CAPITAL

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PRODUCTIVE CAPITAL

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INTELLECTUAL CAPITAL

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HUMAN CAPITAL

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RELATIONAL CAPITAL

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NATURAL CAPITAL

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ILLY VALUE REPORT 2019

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CODE OF ETHICS

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ILLY SUSTAINABILITY POLICY

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illy Sustainable Value Report

Methodological note

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


GRI charts

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illy Sustainable Value Report

CONTACT US

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

HIGHLIGHTS 01
illy Sustainable Value Report
identity

Key numbers of illycaffè

illy Sustainable Value Report

144

countries in which illycaffè operates

illy Sustainable Value Report

100.000

approximately: points of sale where illy coffee is served

illy Sustainable Value Report

269

points of sale: 192 illy Caffès and 77 illy Shops

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39

new single-brand stores opened in 2019

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1.405

employees worldwide

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520

millions of €: 2019 turnover

HIGHLIGHTS 02
illy Sustainable Value Report

Mission, vision and values

MISSION

To delight all those who appreciate beauty and flavor worldwide with the best coffee nature can offer, enhanced by the best of technology and art.

VISION

illy aims to be the reference standard for coffee excellence and culture worldwide, an innovative company that offers the best products and places to enjoy them, and thanks to this grows and becomes a leader in high-end coffee.

VALUES

Ethics as the creation of long-term value through transparency, sustainability, and personal growth.

Excellence as love for beauty and well-done.

HIGHLIGHTS 03
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illycaffè’s history and sustainability milestones

1932

THE FIRST PATENT

Application for a patent for pressurisation in Italy (issued in 1934). In 1933 the patent is issued in Germany.

1933

LAUNCH OF ILLYCAFFÈ

Francesco Illy founds illycaffè.

1934
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LAUNCH OF ILLETTA

The Illetta coffee machine is launched.

1935

DEVELOPMENT OF PRESSURISATION

Francesco Illy invents pressurisation.

1965
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THE HEADQUARTERS IN TRIESTE

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.

1974
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COFFEE POD

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.

1988

DIRECT TRADE MODEL

illycaffè starts a direct contact with its growers to purchase coffee, stimulating quality improvement through economic surplus.

1991
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PRIZE FOR QUALITY COFFEE

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.

1992
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ILLY ART COLLECTION

The illy Art Collections are created, an artistic reinterpretation of the white espresso cup designed by Matteo Thun.


QUALITÈ FRANCE

illycaffè obtains the Certification “Qualit. France” (issued by Qualit. France SAS) for the high sustainability and quality of the illy products.

1996
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THE LOGO

World-renowned artist James Rosenquist creates the new icon for the illy logo.


ISO 9001

illycaffè is the first coffee company in the world to be certified under the ISO 9001 framework for the quality management system.

1997
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AROMALAB

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.

1999
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WATER AS PRIMARY GOOD

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.


UNIVERSITÀ DEL CAFFÈ

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.

2002
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PROJECTS IN GUATEMALA

illycaffè launches a new programme in Guatemala to foster Micro- Entrepreneurship and training of coffee growers.


SENSORYLAB, TECHLAB AND BIOLAB

illycaffè creates three new laboratories to carry out research on all the possible issue related to coffee.

2003

ESPRESSAMENTE ILLY

illy inaugurates the opening of a chain of franchised cafès, to let people experience and appreciate the genuine taste of the Italian-Style cafès worldwide.


ISO 14001 ENVIRONMENTAL CERTIFICATION

illycaffè obtains the release of a new certification for high efficiency of environmental management system and for the control of the environmental impact of the industrial process.


LOW EMISSION ROASTING FACILITY

illycaffè introduces a new roasting facility in Trieste, based on a novel system with ultra-low emission of fumes during the coffee toast process.

2004
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EMAS ENVIRONMENTAL CERTIFICATION

illycaffè continues the efforts to improve environmental impact in cooperation with EMAS in order to foster increase of environmental efficiency of industrial activities.


ERNESTO ILLY SCIENCE PRIZE

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.

2005
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EMAS AWARD

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.


INITIATIVES IN ETHIOPIA

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.


BRC - BRITISH RETAIL CONSORTIUM

illycaffè obtains the BRC (British Retail Consortium) certification and implements its commitments in the certification of safe food and products.


FOOD SCIENCE LAB

illycaffè founds the Food Science Lab, a laboratory dedicated to the study of food and of consumable products based on coffee.

2006
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IPERESPRESSO

illycaffè launches in the market the new system of coffee capsules, called “Iperespresso”.

2007
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IFC CERTIFICATION

illycaffè obtains the IFS (International Food Standard) certification, confirming the commitment of the company to ensure high quality of standards for food safety.

2008
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ILLY ISSIMO – READY TO DRINK

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.


FONDAZIONE ERNESTO ILLY

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.


OXFORD UNIVERSITY

In cooperation with the Environmental Change Institute of the Oxford University, illycaffè supports a research project on the sustainability of coffee cultivation and production.


AWARD IN BRAZIL

illycaffè launches in Brazil the “Sustainable Conduct Award” initiative, a prize dedicated to coffee growers reaching high sustainability standards.


ATLANTIC RAINFOREST IN BRAZIL

illycaffè starts a partnership with Istituto Terra (Earth Institute) for a reforestation intervention in a large area of the Atlantic forest region of Brazil.

2010
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ISO 17025

AromaLab and SensoryLab of illycaffè are recognized and accredited by Accredia – Italian Accreditation System.

2011
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ILLYSHOP AND ILLYTECA

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.


RESPONSIBLE SUPPLY CHAIN PROCESS

illycaffè is the first company in the world to be awarded with the certification for the "Responsible Supply Chain Process".

2012
illy Sustainable Value Report

1° SUSTAINABLE VALUE REPORT

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.


GLOBAL COMPACT

illycaffè becomes part of the United Nations Global Compact.


CARBON FOOTPRINT

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.

2013
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WORLD’S MOST ETHICAL COMPANY

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.

2014

ICRT - INTERNATIONAL RESEARCH & TASTING

illycaffè obtains the highest score among all the roasters analysed in the independent survey conducted by the international IRCT consortium for its commitment to social and environmental responsibility towards coffee growers.

2014-2015
illy Sustainable Value Report

WORLD’S MOST ETHICAL COMPANY

illycaffè recognized as the World’s Most Ethical Company

2015
illy Sustainable Value Report

EXPO 2015 OFFICIAL COFFEE PARTNER

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.

PUBLIC-PRIVATE PARTNERSHIP WITH UNDO

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.


PARTNERSHIP WITH SENA IN COLOMBIA

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.

2016
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ERNESTO ILLY INTERNATIONAL COFFEE AWARD

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.

2016-2018
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WORLD’S MOST ETHICAL COMPANY

illycaffè recognized as the World’s Most Ethical Company, for the sixth consecutive year.

NEW GOVERNANCE AND SUSTAINABILITY POLICY

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.

2017

SIGNING OF THE AGREEMENT TO SUPPORT THE REINTEGRATION OF EX-FARC FIGHTERS IN COLOMBIA

An agreement with ETCR (Territorial Spaces for Training and Reincorporation) and Ascafé (Association of small coffee growers) is signed to increase the quality and production capacity of coffee in the Cauca Department where former FARC fighters and small producers live, encouraging local economic development. illycaffè carries out training sessions in areas that were previously affected by civil war, aimed at victims of the conflict, former fighters who are reintegrating into civilian life, associations of women coffee producers and rural school teachers, whose training programme includes a module entirely dedicated to high-quality coffee production.

2019

SOCIETÀ BENEFIT

illycaffè further strengthens its commitment to pursuing a sustainable business model that integrates social and environmental goals by adopting Società Benefit status and including this commitment in its articles of association.

HIGHLIGHTS 04
illy Sustainable Value Report

Sustainability strategy and governance

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).

illy Sustainable Value Report

SOCIAL

illycaffè pursues social sustainability through the growth, in the sense of knowledge and self-realization.

ENVIRONMENT

illycaffè pursues environmental sustainability through the respect which translates into the principles of not polluting, not wasting and using renewable resources.

ECONOMIC

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.

Consumers

Customers

Talents

Suppliers

Communities and institutons

Shareholders

HIGHLIGHTS 05
illy Sustainable Value Report

Specific aims

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.

  • Contribute to the improvement of knowledge and analysis of impacts along the coffee supply chain.
  • Contribute to the development and analysis of the sustainability of the supply chain through research, sharing of knowledge and projects on the ground.
  • Support and publicise the case for integrated agriculture in order to preserve and improve coffee quality and sustainability at a global level.
  • Promote respect for the environment as a fundamental principle of the coffee industry throughout the value chain.
  • Embrace the principles and culture of economic, social and environmental sustainability, as well as their intrinsic link with human well-being and environmental protection.

The aspiration to happiness and quality of life.

  • Participate in the international debate on the subjects of the aspiration to happiness, well-being and improved quality of life, mainly, but not exclusively, in the world’s coffee-growing areas.

The circular economy and innovation to benefit the planet.

  • Foster global partnerships to promote sustainability and international awareness of this issue. Also consider products and systems based on criteria that are consistent with the principles of sustainability and the circular economy, for the benefit of the planet.
  • Improve energy efficiency and resource consumption, taking into account best practices and innovative solutions with a view to progressive emission reduction.
HIGHLIGHTS 06
illy Sustainable Value Report

The challenges facing illycaffè

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.


  • A changing context.
  • Communicating and creating a culture of sustainability.
  • Carbon Neutrality by 2033.
  • Promoting new models.
  • Partnership for goals.
HIGHLIGHTS 07
illy Sustainable Value Report

Dialogue with stakeholders

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.

illy Sustainable Value Report
HIGHLIGHTS 08
illy Sustainable Value Report

The sustainable supply chain

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:

  1. Selecting and working with the best producers.
  2. Sharing knowledge with them.
  3. Recognising, including financially, quality achieved and encouraging continuous improvement.
  4. Building an illy community.

To ensure sustainable coffee quality, the illy supply chain management model is based on three specific principles:


  • Traceability of resources and raw materials throughout the entire production process in order to guarantee quality.
  • A reciprocal relationship with producers.
  • Economic, social and environmental sustainability.

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:

AREA
THEME
ENVIRONMENT
illy Sustainable Value Report
  • Water management and quality
  • Biodiversity
  • Recycling and/or proper diusposal of liquid and solid waste
EMPLOYMENT
illy Sustainable Value Report
  • Working conditions
  • Health and safety
  • Abilities and skills
  • Production Cost
  • Agronomic practices used
PRODUCT
illy Sustainable Value Report
  • Traceability
  • Use of active ingredients
  • Agronomic practices used
  • Equipment used for production
  • Hygiene
HIGHLIGHTS 09
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Human rights

Over the years, illycaffè’s commitment to respecting human rights has been translated into various initiatives:

  • Adherence to the principles of the United Nations’ International Labour Organization (ILO).
  • Application and reference to the Code of Ethics in all contracts with suppliers, which includes clauses on respect for human rights in procurement and along the supply chain.
  • Control of its coffee suppliers, which includes regular monitoring and active management of issues such as child labour, forced and compulsory labour, and access to the farm’s records or personal visits to the company premises.
  • Drafting of the Sustainability Policy to illustrate illycaffè’s values, goals, commitments and governance regarding the issue of sustainability.
  • Membership of the United Nations Global Compact since 2012.

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.

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HIGHLIGHTS 01
illy Sustainable Value Report
FINANCIAL CAPITAL

A sustainable result is possible

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.

SDGs

  • illy Sustainable Value Report
HIGHLIGHTS 02
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+8,8%

of production value in 2019

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491

millions of €: the distributed economic value as at 31 December at a consolidated level

illy Sustainable Value Report

+7,6%

approximate difference in sales volume compared to 2018

HIGHLIGHTS 03
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Financial results

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.

illy Sustainable Value Report

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FINANCIAL CAPITAL

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PRODUCTION CAPITAL
HIGHLIGHTS 01
illy Sustainable Value Report

We work to produce quality and safety

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.

SDGs

  • illy Sustainable Value Report
HIGHLIGHTS 02
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illy Sustainable Value Report

269

points of sale (192 illy Caffès and 77 illy Shops), split into 245 under franchising and 24 under direct management.

illy Sustainable Value Report

39

new single-brand stores opened (37 illy Caffès and 2 illy Shops)

HIGHLIGHTS 03
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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.

illy Sustainable Value Report

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productive capital

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HIGHLIGHTS 01
illy Sustainable Value Report
intelectual capital
HIGHLIGHTS 01
illy Sustainable Value Report

We share knowledge without barriers

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.

SDGs

  • illy Sustainable Value Report
  • illy Sustainable Value Report
  • illy Sustainable Value Report
  • illy Sustainable Value Report
  • illy Sustainable Value Report
  • illy Sustainable Value Report
  • illy Sustainable Value Report
  • illy Sustainable Value Report
HIGHLIGHTS 02
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28

Università del Caffè sites active worldwide

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300.364

people trained by the Università del Caffè worldwide

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5

millions of € invested in Research & Development

illy Sustainable Value Report

290

patents, of which 246 issued and 44 pending

HIGHLIGHTS 02
illy Sustainable Value Report

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.

HIGHLIGHTS 03
illy Sustainable Value Report

Innovations introduced in recent years: products

2006
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IPERESPRESSO CAPSULES

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.

2007
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X2

The first profeSsional Ho.Re.Ca. with boiler, using Iperespresso capsules.

2008
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Idillyum

The first type of mono-variety coffee with a low level of natural caffeine, possessing an unique sensorial and refined scent.


ILLY ISSIMO /READY TO DRINK

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.

2009
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ILLYCREMA

Frozen soft ice-cream produced with espresso illy 100% Arabica coffee and ice micro-crystals, without hydrogenated fats, colorants or preservatives.

2010
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X7.1

X7.1 is the evolution of the X7 model, using boiler technology in compliance with the norms relevant to the emissions of heavy metals.


Y1

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.

2011
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X2.1

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

Y1 touch, an evolution of the Y1 with soft-touch control panel and electronic management.

2012

X7.1 e Y1.1 touch

Evoluzione della macchine secondo le normative ErP sui consumi energetici.


Doppio adattatore

Kit per l’utilizzo di capsule IPSO Horeca su macchine professionali a macinato.

2013
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Y5

New Iperespresso home coffee machine with automatic drain, an extension of the “Y” series.


X7.1

Limited edition in fluorescent colors, designed for the Christmas seasonal campaign of 2013.

2014
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REFILLY / SOFT CAN

The refill for the home fits inside the 250-gram can and is designed to reduce its environmental impact.

2015

MOKA PULCINA

Pulcina is a revolutionary moka coffeepot combining the technology developed by illycaffè with the design experience of Alessi. Thanks to the internal shape of its special boiler, Pulcina automatically stops dispensing the coffee with precision timing, thus avoiding the minor eruptions in that final stage of extraction that can leave a burnt, bitter aftertaste, and ensuring that the coffee emerges at its best, with the full rounded aroma intact.


YP1

The new professional YP1 machine developed by illy and Cimbali grinds perfectly, espresso after espresso, thanks to Bluetooth technology: it checks the time it takes to dispense the coffee, and if necessary, sends a reminder to the Conik grinder to correct it. The technology uses 25% less electricity than the previous model.


PERSONAL BLENDER

The prototype was presented in the Coffee Cluster at Expo Milano 2015 and today is used to create the personal blends of Michelin-starred chefs. The machine allows you to create a tailor-made blend from the 9 origins of the only illy blend.

2016

COLD BREW SYSTEM

Ground coffee to be infused in water.


PILLOW PACK

Pods in filter paper for drip-coffee preparation.

2017

Y5 DRS ESPRESSO
& COFFEE SYSTEM

The coffee machine that people controls from the smartphone via Bluetooth and that allows the automatic reordering of capsules through Amazon Dash technology.

2018

SISTEMA COLD BREW AIR/FLAT

Grazie al sistema di spillatura brevettato illy Cold Brew può essere gustato sia nella versione liscia con ghiaccio che in quella illy Cold Brew Aria, con soffice schiuma persistente ottenuta in modo del tutto naturale senza aggiunta di altri ingredienti.


ARABICA SELECTION

Presentata la gamma delle origini più distintive dei caffè Arabica che compongono il blend illy, provenienti da Etiopia, Colombia, Brasile e Guatemala. Proposte in purezza e su una scala di intensità da più delicata a più decisa, ogni origine ha una curva di tostatura dedicata, per esaltarne le note aromatiche peculiari e il gusto distintivo delle terre del caffè.

2019

ALUMINIUM CAPSULES

The new line of compatible aluminium capsules* was presented, the result of a licensing agreement signed with JAB.

* Compatible with many Nespresso® coffee machines.

Innovations introduced in recent years: projects

2005

ESPRESSO COFFEE

illycaffè contributes to the second edition of the scientific book dedicated to espresso.

2014

COFFEA ARABICA SEQUENCING

Concluded the sequencing of the genome of Coffeea arabica, thanks to a partnership led by illycaffè and Lavazza, in collaboration with the Institute of Applied Genomics, IGA Technology Services, DNA Analytica and the Universities of Trieste, Udine, Padua and Verona.

2017

BREEDCAFS

Study on the relationship between coffee and climate change.

2018

WORLD COFFEE RESEARCH

It makes the reconstruction of the genome of Coffea arabica available on its website (worldcoffeeresearch.org/genome).


PROLIFIC

illycaffè joins the PROLIFIC project, for the development of new products taking into account the circular economy principles.

2019

VIRTUOUS AGRICULTURE

The “Virtuous Agriculture – a new research and development strategy for regenerative agriculture” project is presented for the first time by Andrea Illy at the University of São Paulo.

HIGHLIGHTS 02
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The Università del Caffè

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.


  • 28 locations
  • 300,364 people trained since 1999
  • 469 coffee producers, 8,119 consumers, 20,154 professionals, 1,268 online learners

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INTELLECTUAL CAPITAL

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HIGHLIGHTS 01
illy Sustainable Value Report
Human capital

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

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HIGHLIGHTS 02
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illy Sustainable Value Report

1405

employees as at 31/12/19 at a consolidated level

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92,6%

staff with a permanent contract

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25,1%

recruitment rate

HIGHLIGHTS 03
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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.

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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

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RELATIONAL CAPITAL
HIGHLIGHTS 01
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We share what we are

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.

SDGs

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HIGHLIGHTS 02
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28

the editions of the Prêmio Ernesto Illy de Qualidade Sustentável do Café para Espresso

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4

editions of the Ernesto Illy International Coffee Award

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66,4%

turnover generated abroad

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+14%

online orders compared to 2018. In 2019, at a global level, there were 5,561,683 visits to the e-commerce platform alone

HIGHLIGHTS 03
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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:



  • Producers: Coffee quality starts from the first link in its production chain: cultivation. illy works with and for coffee producers, creating many support projects and recognising and rewarding efforts and investments to harvest sustainable high-quality coffee. The Ernesto Illy International Coffee Award, the Premio Ernesto Illy de Qualidade Sustentavel do cafè para Espresso and the Clube illy do Cafè are part of these initiatives.

  • Local communities: illycaffè, together with the Ernesto Illy Foundation, actively supports the development of educational programmes and activities for coffee communities with the goal of extending access to education in rural areas to as many children and young people as possible, lifting them out of poverty and child labour.

  • Art: For illycaffè, art adds beauty to goodness. illy’s interest in beauty and creativity is mainly expressed through the contemporary art world, in which it contributes to the spread of art and culture, supporting artists, institutions and international exhibitions.

  • Customers: Those who drink illy coffee enjoy a blend composed of 100% Arabica coffee, the result of a selective manufacturing process that preserves and enhances quality and aromatic notes. The company wants to promote a culture of coffee and its various brews, both in points of sale and at home. illycaffè bases its customer relations on satisfaction in order to create a lasting relationship by offering a high-quality service and products.

Distribution mainly takes place through:

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Business to Business (B2B)

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  • HoReCa: Hotels, Restaurants, Cafés
  • Traditional retail
  • Large-scale retail trade
  • Consumer electronics market
  • Vending (offices and workplaces))
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Business to Consumer (B2C)

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  • illy Shops
  • illy Caffè and espressamente illy
  • e-commerce

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relational capital

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GO UP
HIGHLIGHTS 01
illy Sustainable Value Report
natural capital

We trace our path without marking the earth

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.

SDGs

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HIGHLIGHTS 02
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100%

renewable electrical energy

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-25,5%

quantity of water drawn compared to 2018

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99,6%

produced waste recovered

HIGHLIGHTS 03
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We begin again from the future, starting from the present

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.

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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:

  • Raw materials
  • Energy Management
  • Water Management
  • Biodiversity
  • Air emissions
  • Waste management
  • Disposal of recyclable products and packaging

  • Methane
    -0,96%
  • Water
    -25,5%
  • Recovered waste
    99,6%
  • Electrical energy
    -2,8%
    (100% of electrical energy comes from renewable sources)
  • Greenhouse gases
    0,19
    tCO2eq/t roasted coffee (down -66% from 2010)
HIGHLIGHTS 04
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Raw materials

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.

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HIGHLIGHTS 05
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Disposal of recyclable products and packaging

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:

REDUCE

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During the design stage, the lightest, low-consumption and, where possible, recycled or totally eco-friendly primary and secondary packaging is chosen.

REUSE

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For secondary packaging the company prefers to purchase recycled materials.

Recycle

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Packaging that is easy to recycle, made of non-composite materials (metals or plastics), is favoured and designed.

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ABOUT NATURAL CAPITAL

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