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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The Sustainable Value Report of illycaffè was published for the first time in 2012: regularly published on an annual basis, the report is intended to be a tool to account for the responsible management of the company, which aims to increase its ability to generate value within the framework of the respect of all existing equilibriums at the basis of the sustainability concept (economic, social and environmental), giving the proper attention to the expectations of all stakeholders who, either directly or indirectly, are interested in the activities of the company. The Value Report, moreover, responds to the commitment, initiated by the company over the years, to communicate a path toward responsible growth, based on responsible behavior and practices, and sustainable products.
The 2016 Sustainable Value Report was created in compliance with the G4 version of the “Sustainability Reporting Guidelines,” issued by the Global Reporting Initiative (GRI), and the sector guidelines (G4 Sector Disclosure – Food Processing Sector) at the “In accordance-Core” level.
In order to finalize the Sustainable Value Report, the company actively involves all the different management departments operating at illycaffè headquarters and the reference branches. The reporting process is based on information systems used by the company (management control, accounting systems, quality, environment, internal audit, safety, human resources management, etc.), which are integrated with specific instruments to gather and analyze data (reporting forms). The ultimate objective of the company is to further strengthen the reporting system, and to extend the approach to all the companies and enhance the accuracy and reliability of the information provided. The reporting process of these issues is a voluntary activity that illycaffè implements taking as its starting point the huge importance of the areas dealt with and in the interest of its stakeholders. In spite of the fact that it does not fall within the boundaries of the Barnier Directive 2014/95/UE on the disclosure of non-financial information and information on diversity, illycaffè is committed to producing its Sustainability Report annually.
The 2016 illycaffè Sustainable Value Report has been verified by the external control and audit company DNV GL Business Assurance Italy, S.r.l. A copy of the assurance statement is available at the following link.
This report has taken into consideration the most relevant industrial and commercial companies included in the Financial Statement of illycaffè S.p.A., through the integrated method in the consolidated balance sheet as of December 31, 2016 (see § 1.2).
• ILLYCAFFÈ SPA (Parent group that comprises the branches in in Austria, Germany, Netherlands, Spain, Hong Kong and Dubai)
• ILLYCAFFÈ FRANCE SAS
• ILLYCAFFÈ NORTH AMERICA INC
• ILLYCAFFÈ SUD AMERICA COM. IMP. EXP. LTD.
• ILLYCAFFÈ SHANGHAI CO. LTD
• MITACA SRL
In some cases, information and data relevant to performance refer to certain companies: in this case, the report makes clear reference to the variation of the perimeter of reference. As the GRI standard requires the inclusion of all activities having a substantial impact in terms of sustainability (materiality), wherever possible the report includes a deeper analysis of related sectors of the value supply chain (for instance, the activities carried out in coffee plantations).
For comments, requests for information, suggestions and ideas for improvement regarding the sustainability activities of illycaffè and issues related to the content of the present Value Report, please e-mail: valuereport@illy.com
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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
retailers serving illy coffee
illy caffè and illy shops worldwide
and more Artisti del Gusto worldwide
new single-brand POS opened in 2016
employees as of 31 December 2016, at the consolidated level, + 8% compared to 2015
million Euros in overall turnover (+5,3% compared to 2015)
certifications: 4 quality certifications and 1 sustainability certification
specialized laboratories
cutting-edge innovations from research activities conducted by illycaffè
university of coffee
The inspiring principle of illycaffè is the continuous striving for perfection. This driving force is expressed through two different founding values: the passion for excellence, intended as a love of beauty and a job well done; and ethics, the creation of long-term value through sustainability, transparency, the betterment of people, creating value, fostering social growth, and respecting the environment. illycaffè is a stakeholder company which pursues the betterment of life through economic, social and environmental sustainability.
illycaffè pursues social sustainability through the concept of growth, in the sense of knowledge and self-realization.
illycaffè pursues environmental sustainability through the concept of respect which translates into the principles of not polluting, not wasting and using renewable resources.
illycaffè pursues environmental sustainability through the concept of creating shared value with all its stakeholders.
In the hierarchy of stakeholders, consumers are placed at the top, followed by customers, who are partners of the company in offering the best products and services to consumers. Then, talents collaborating with the company are placed in the next step, as the excellence of products could not be achieved without their passion, competence and professional commitment to the company. Suppliers also have a crucial role in ensuring the delivery of our products, as well as all the communities sharing relations with illycaffè. Shareholders form the base which sustains the company.
Francesco Illy invents “Illetta”, the prototype modern coffee machines, and the pressurization process: a revolutionary method for preservation of food.
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 launches in the market the new system of coffee capsules, called “Iperespresso”.
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.
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.
Environmental commitment is of crucial importance to illycaffè: on the one hand it governs its direct impact on the ecosystem and on the other it adopts processes that promote and disseminate proper values and actions, from farm to cup.
Thanks to this awareness, the company implemented an environmental management system aiming to foster the maintenance of sites which respect the environment and are certified. illycaffè has invested huge sums in order to minimize the direct impact of its production processes, in terms of energy efficiency and the sustainable management of waste.
illycaffè’s main raw material is raw green coffee. Every year it buys hundreds of thousands of sacks of Arabica coffee from producers in Latin America, countries in Africa and Southeast Asian countries. The company is aware that the production of the raw material plays an important role in the indirect environmental impact of its activities and monitors the phases of the raw materials, from the plantations to the transport.
illycaffè designs and implements innovative solutions to dispose of products in the most environmentally and socially efficient manner possible, using an approach based on the principles of circular economy:
The designing phase, which adopts technology to optimize the quality of the coffee, takes into consideration primary and secondary packaging which weighs as little as possible, has a low consumption and, wherever possible, is made from recyclable materials and/or those with a low environmental impact.
For secondary packaging, the company favors purchasing recycled material, which on average makes up 80% of the paper and cardboard purchased and 100% of the pallets used.
Favored designs are those using recyclable packaging made with non-composite materials (metals or plastics).
Innovations in packaging introduced by illycaffè include:
Distributed since 2014, Soft Can is a new illy blend pack for the home, designed to reduce environmental impact. Through pressurization, Soft Can keeps quality intact through the pressurization process. Thanks to the 5-layer polylaminate-aluminum packaging, it is lighter and can be recycled with plastic, thus reducing its environmental impact.
The packaging was created to replace the aluminum can, in order to reduce the environmental impact.
illycaffè incorporates the principles of environmental responsibility in its business operations and in managing raw materials, in particular green coffee.
The company invests in the local area and in support of the communities it interacts with: in the production areas it promotes low environmental impact agronomic techniques, aiming at reducing the most significant impacts of farming and fulling respecting biodiversity and ecosystems. Moreover, the company has developed dedicated programs of incentives and recognitions for producers who work towards sustainable quality, such as the new Ernesto Illy International Coffee Award, the Ernesto Illy de Qualidade do cafè para Espresso Prize, and the Clube illy do Cafè.
Prêmio Ernesto Illy de Qualidade do Café para EspressoSince 1991, 10,000 producers
have participated with a total of funding of approximately 4.5 million reais distributed.
illycaffè manages the entire supply chain within the overall framework of sustainability. This approach is certified by an independent, third party evaluator through the Responsible Supply Process.
illycaffè is the first company in the world to have received, in March 2011, the “Responsible Supply Chain Process” certification, which designates a crucial role to the quality achieved and the ability to create value for all stakeholders along the entire green coffee supply chain. The company decided to commit to this in order to introduce management solutions and evaluation systems that can detect and communicate responsible value creation throughout the entire supply chain. The strategic orientation behind this certification is based on principles of traceability, reciprocity and quality. The “Responsible Supply Chain Process” certification does not involve any direct costs for coffee producers: illycaffè bears the overall expenses for certification activities and inspections, including those carried out at the producers’ farms.
economic value produced and distributed in 2016
coffee producers have received a specific audit, according to the Responsible Supply Chain Process (until end of 2016).
farmers involved in courses, conventions and visits from specialists between 2010 and 2016.
patents, including 283 granted and 114 pending as of 31 December 2016.
million Euros in research and development in 2016.
papers published in international scientific journals, 8 poster communications presented and 7 lectures at important national and international scientific conferences.
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.
social value
Clients and served markets
illycaffè recognizes the centrality of human resources and the importance of basing collaboration on the principles of transparency, loyalty and trust, applying the practices dictated by its Code of Ethics and by the co-responsibility agreement that the people employed by the company have adopted.
Distribution strategies focus on building value over the long term. The client’s professional growth is fostered by applying a strategic model which combines the commercial aspect with the concept of sustainability. In this way, the social value generated by illycaffè is transformed into economically positive results for the client, too, in terms of the volume of coffee sales.
The distribution of illycaffè products occurs primarily through
the following channels for the organization’s sectors:
Business to Business
Business to Consumer
illycaffè people
illycaffè recognizes the central role of people, who are strategic stakeholders, and the importance of maintaining transparent relationships based on mutual loyalty, trust and on the application of the principles of the Ethical Code adopted by the company.
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
illycaffè and communities
Initiatives continue to be developed that have a powerful social impact in coffee producing countries.
- Agreement with the Ernesto Illy Foundation and the United Nations Industrial Development Organization (Unido) where the objective is to increase Ethiopia’s coffee quality and production capability, and to permit small farmers to boost their earnings, fostering local economic growth and obtaining international recognition.
- Agreement with SENA (Servicio Nacional de Aprendizaje), the Colombian public institution, which aims to create international cooperation in order to transfer knowledge and good practices in the production and preparation of coffee, creating benefits both for producers and for consumers. Several sections and rules included in the Code, for example those relevant to the respect of Human Rights, are also applied to the purchases and along the supply chain.
- Donations for 450,000 Euros made by the parent company in Italy to charitable organizations in 2016 and 520,000 Euros made by foreign companies in donations, sponsorships, in-kind contributions and other activities for the community.
Human rights
The concrete engagement of illycaffè in respect of human rights
has been translated over the years in several initiatives, such as:
The creation of social value
The business model developed by illycaffè aims
to create social value through the concept of growth.
Consumers
By choosing illy products, consumers have the chance to live an enriching experience, combining the quality of the product with the opportunity to learn more about coffee and coffee culture, while identifying with the corporate values.
Clients
Clients who decide to serve illy in their businesses have the opportunity - through the Università del Caffè and the services offered by illycaffè - to increase their own knowledge and professionalism.
Employees
Employees are given opportunities for self-realization, skills development and professional growth. illycaffè fosters a philosophy of “lean” work, centered on improving teamwork which valorizes abilities, entrepreneurialism and individual creativity.
Suppliers
Suppliers who work with illycaffè benefit from advantages to their reputation and the acquisition of know-how. In the specific case of green coffee producers, illycaffè helps improve their living conditions by promoting projects in the coffee-growing areas.
Community
The visibility of communities where the company works is enhanced, and they benefit from direct contributions to initiatives fostering culture and solidarity.
Shareholders
Shareholders reap the fruits of the reputation and legitimization deriving from the value created along the whole chain.
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